Palm Hills Development Co. · EGX:PHDC
Palm Hills Development — Palm Hills Developments — Investor Presentation (March 2017)
42 slides from Palm Hills Development's investor presentation, March 2017
Slide 1: Investor Presentation March 2017
Palm Hills Developments | January 2015 Investor Presentation March 2017
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: Introduction
Introduction
Slide 4: PHD has been in operations since 1997 and is the highest quality developer in Egypt
INTRODUCTION PHD has been in Operations since 1997 and is the Highest Quality Developer in Egypt History Ownership Structure (1) Management Team Corporate Actions Launched Projects 1997 Name Position Strategic 1% 2% -Al Ethadia established and launched Palm Hills 1997- Yasseen Mansour Chairman 2004
Slide 5: Summary of the main financial indicators
INTRODUCTION Summary of the Main Financial Indicators, Demonstrating Strong Performance1 Sales Performance Average Selling Prices (March 2017) Cumulative New Sales FY2016 New Sales Cum. Units Sold2 BUA Standalone BUA Apartments Land EGP26.1 bn EGP8.2 bn 11,388 EGP7.9k/sqm EGP13.5k/sqm EGP11.5k/sqm C
Slide 6: PHD has the most diversified land bank portfolio in Egypt
INTRODUCTION +13 PHD has the Most Diversified Land Bank Portfolio in Egypt Completed Projects Projects to be Launched Residential Developed Area Under Commercial Residential Developed Area Under Commercial Land Area Land Area Project Name Land Area Residential Development Area (000 Project Name Land
Slide 7: PHD's competitive advantage is based on a focus on quality
INTRODUCTION +13 PHD’s Competitive Advantage is based on a Focus on Quality Quality Focused PHD’s strategy is focused on offering the highest quality livable gated communities in Egypt, catering to the upper middle and high end spectrum, until it recently ventured into the middle income bracket. Qua
Slide 8: Real Estate Market
Real Estate Market
Slide 9: Egypt has the largest and fastest growing population in MENA
REAL ESTATE MARKET Egypt has the Largest & Fastest Growing Population in the MENA region Population Density Egypt’s Population Growth (millions) Cairo’s Population Growth (millions) 91.5 93.4 95.2 18.8 19.5 82.1 74.9 16.9 15.2 62.4 49.4 11.9 38.6 8.3 30.8 6.5 23.6 4.7 3.0 1955 1965 1975 1985 1995 20
Slide 10: PHD is capitalizing on Egypt's unique dynamics, population growth and urbanization
REAL ESTATE MARKET PHD is Capitalizing on Egypt’s Unique Dynamics, Population Growth and Urbanization Trends Housing Units Supply 2011-2015 Housing Units Supply 2015 (thousands) Key Takeaways 352 276 • Corporates , retail/shopping malls, schools and universities moving out Total Housing Units: of Ca
Slide 11: Projects' Portfolio
Projects’ Portfolio
Slide 12: Projects' Portfolio
PROJECTS OVERVIEW Projects’ Portfolio 1 West Cairo 2 East Cairo MALL VGK MALL 5 6 MALL 1 2 4 190 feddan Office 8 Red Sea 4 Riyadh (KSA) Building 3 3 5 North Coast 6 Alexandria Hacienda West Palm Hills Developments | 2017 | Investor Presentation 12
Slide 13: PHD is the only major developer that completed 10 projects
PROJECTS OVERVIEW PHD is the Only Major Developer that Completed 10 Projects in West & East Cairo & North Coast Number of Projects 10 Delivered Homes 1,628 units Av. for Sale Inventory EGP88 mn, 21 units Receivables EGP331 mn Occupancy Rate1 72% Land Liability - Cumulative Sales EGP2.1 bn Recognized
Slide 14: Projects under development, completion expected 2017 and 2018
PROJECTS OVERVIEW Projects Under Development. Completion expected during 2017 & 2018 Number of Projects 13 Delivered Homes 4,723 units Av. for Sale Inventory EGP8.4 bn, 1,743 units Receivables EGP9.4 bn Remaining Construction EGP3.9 bn Land Liability EGP741 mn Cumulative Sales EGP20.6 bn Recognized
Slide 15: Growing land bank in all core markets as well as Alexandria
PROJECTS OVERVIEW Over the past 2 years, PHD has been Growing its Land Bank in all its Core Markets as well as Alexandria1 Number of Projects 5 Delivered Homes - Av. for Sale Inventory EGP61.5 bn, 11,947 units Receivables EGP1.6 bn Remaining Construction EGP13.8 bn Land Liability EGP3.2 bn Cumulativ
Slide 16: Palm Hills New Cairo, East Cairo
NEW PROJECTS Palm Hills New Cairo, East Cairo Project Master plan1 Pros ♦ PHD signed a co- development agreement Lower initial cash outlays with NUCA in December Replenish PHD’s Land Bank and 2015 presence in East Cairo ♦ SWA Group finalized Develop Large Integrated the master plan in July Com
Slide 17: Palm Hills New Cairo - Commercial Components
NEW PROJECTS Palm Hills New Cairo - Commercial Components Project Master plan Recreational Club - Perspective ♦ Commercial area master-planning started in 4Q2016 ♦ The project will be positioned as a hub for mixed-use commercial properties serving the area of New Cairo over a radius 15 km ♦ Phase 1
Slide 18: Capital Gardens, East Cairo
NEW PROJECTS Capital Gardens, East Cairo Project Master plan Pros ♦ Co-Development project with Madinet Nasr for PHD’s first co-development project Housing & in East Cairo Developments Project allows PHD to cater to (“MNHD”) spanning 100 middle income bracket feddan in East Cairo in Project re
Slide 19: Hacienda West, North Coast
NEW PROJECTS Hacienda West, North Coast Project Master plan Pros ♦ In February 2016, PHD signed a Co- Prime location with a large beachfront Development Access to nearby new highway agreement with private connecting to Cairo in a couple of land owner in the North hours Coast spanning 135 Reple
Slide 20: 190 feddan, West Cairo
NEW PROJECTS 190 feddan, West Cairo Project Master plan1 Pros ♦ In January 2017, PHD acquired 190 feddan Prime location adjacent to the Company’s old projects as well as plot located in 6th of Golf Views and Golf Extension October City from the projects Egyptian Ministry of Project will allow PH
Slide 21: 135 feddan, Alexandria
NEW PROJECTS 135 feddan, Alexandria Project Master plan1 Pros ♦ In February 2017, PHD Access to Alexandria, Egypt’s signed a co- second largest city, which did not development agreement see any major development for at with a government least the past 20 years agency with the First mover into Al
Slide 22: Clear cash flows coming from commercial real estate projects
COMMERCIAL PROJECTS OVERVIEW Clear Cash Flows coming from Commercial Real Estate Projects1… Office 8, West Cairo Palm Valley Mall, West Cairo Palm Club, West Cairo Project Type Mixed Use Project Type Mixed Use Project Type Recreational Club Land Size (sqm) 12,031 Land Size (sqm) 11,293 Land Size (sq
Slide 23: Commercial projects yielding EGP831 mn
COMMERCIAL PROJECTS OVERVIEW Yielding EGP831 mn1 Village Garden Kattameya Mall, East Cairo Village Gate, East Cairo Golf Views, West Cairo Project Type Mall Project Type Mixed Use Project Type Mixed Use Land Size (sqm) 12,831 Land Size (sqm) 15,730 Land Size (sqm) 11,698 Development Process Build to
Slide 24: Hotels portfolio 60% owned through Maccor
COMMERCIAL PROJECTS OVERVIEW Hotels Portfolio 60% owned through Maccor generating EGP40 mn per annum 1&2 Novotel October, West Cairo Mercure Ismailia Novotel Sharm El Sheikh, Sinai Commenced Operations in 2005 Commenced Operations in 1980 Commenced Operations in 1996 Hotel Category 3 Stars Hotel Cat
Slide 25: Financial Review
Financial Review
Slide 26: Steady focus on unit deliveries with construction spending
CONSTRUCTION Steady focus on Unit Deliveries with Construction Spending reaching EGP2.0 bn in FY2016 Construction Progress1 Inventory Breakdown (Delivery/Backlog)2 Unit Deliveries (Percentage Completed) Completed Remaining CAGR =59% Total 20,788 2,049 25% 351 1,573 Launched Non 75% 12,958 7,830 347
Slide 27: PHD realizes record new sales of EGP8.2 bn in FY2016
NEW SALES PHD realize record New Sales of EGP8.2 bn in FY2016 New Sales (EGP mn) Units Sold Average Selling Prices / sqm Apartments Standalone Units Land CAGR = 79% 8,194 2,140 7,900 Mar-17 13,500 1,838 11,500 6,332 1,584 5,384 2016 10,387 8,527 3,936 3,500 2015 7,350 832 8,337 2,950 1,479 426 2014
Slide 28: FY2016 Financial Results: Income Statement
FY2016 FINANCIAL RESULTS Income Statement: Strong performance despite the changes in accounting policies, higher minorities and expiry of tax exemption Revenue (EGP mn) Gross Profit (EGP mn) EBITDA (EGP mn) CAGR = 95% CAGR = 84% CAGR = 94% 1,679 1,015 5,631 33% 24% 31% 30% 3,642 28% 654 1,150 15% 50
Slide 29: Balance Sheet: Deleveraging underway via securitization of receivables
FY2016 FINANCIAL RESULTS Balance Sheet: Deleveraging underway via securitization 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 2,658 0.37 0.38 11,350 6,632 5.21 6,157
Slide 30: Appendix
Appendix
Slide 31: Projects Under Development
EXISTING PROJECTS Projects Under Developement1 Golf Views, West Cairo Woodville, West Cairo Palm Parks, West Cairo Land Size 2 mn sqm Land Size 0.3 mn sqm Land Size 0.5 mn sqm Type of Units Villas/Twin/Town Type of Units Twin/Town Type of Units Apartments Value of Inventory EGP4.3 bn Value of Invent
Slide 32: Projects Under Development
EXISTING PROJECTS Projects Under Developement1 Golf Extension, West Cairo Palm Valley, West Cairo Palm Hills Katameya, East Cairo Land Size 1 mn sqm Land Size 219k sqm Land Size 928k sqm Type of Units Villas/Twin/Town Type of Units Standalone Units Type of Units Standalone Units Value of Inventory E
Slide 33: Projects Under Development
EXISTING PROJECTS Projects Under Developement1 Village Gate, East Cairo Village Garden Katameya, East Cairo Palm Hills Katameya Extension (Ph2), East Cairo PK2 Phase 2 PK2 VGK PHK Land Size 131k sqm Land Size 228k sqm Land Size 150k sqm Type of Units Standalone Units Type of Units Standalone /Apartm
Slide 34: Projects Under Development
EXISTING PROJECTS Projects Under development1 Hacienda White 2, North Coast Hacienda Bay, North Coast Land Size 472k sqm Land Size 2,411k sqm Type of Units Standalone & Apartments Type of Units Standalone & Apartments Value of Inventory EGP2.1 bn Value of Inventory EGP5.8 bn Number of Units 824 Numb
Slide 35: Projects Under Development
EXISTING PROJECTS Projects Under development1 Palm Hills Katameya Extension, East Cairo Casa, West Cairo Land Size 294k sqm Land Size 275k sqm Type of Units Apartments Type of Units Standalone Value of Inventory EGP937 mn Value of Inventory EGP1.0 bn Number of Units 305 Number of Units 1,154 Deliver
Slide 36: Income Statement
FINANCIAL STATEMENTS Income Statement1 EGP 000 4Q2016 4Q2015 Change FY2016 FY2015 Change Revenue2 2,002,200 1,055,406 90% 5,630,639 3,641,652 55% Cost of revenue (1,428,708) (816,022) 75% (3,951,476) (2,491,683) 59% Gross profit 573,492 239,384 140% 1,679,162 1,149,969 46% Margin % 28.6% 22.7% 5.9pp
Slide 37: Balance Sheet
FINANCIAL STATEMENTS Balance Sheet1 EGP Thousand December 31, 2016 December 31, 2015R EGP Thousand December 31, 2016 December 31, 2015R Long-Term Assets Current Liabilities (continued) Investments in Associates 79,226 78,506 Investment Purchase Liabilities 44,257 44,257 Investment Property 888,506 8
Slide 38: Cash Flow Statement
FINANCIAL STATEMENTS Cash Flow Statement1 EGP '000 Dec 31, 2016 Dec 31, 2015 EGP '000 Dec 31, 2016 Dec 31, 2015 Net Profit for the period (before income tax & non-controlling interest) 913,170 786,249 Change In Notes Payable 846,133 (805,297) Administrative Depreciation 28,961 21,874 Change In Suppl
Slide 39: Corporate Structure: 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 40: Board of Directors Biographies
BOARD OF DIRECTORS Biographies Board Members 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 Chairman player in Egypt. Mansour began his career in 1986 at Mansour Motors Group,
Slide 41: 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 42: Investor Relations Contacts
INVESTOR RELATIONS Contacts Headquarters Mamdouh Abdelwahab Investor.relations@phdint.com Investor Relations & Investments Director Direct: +202 35351200 Smart Village, A4 – B84 Radwa Abu El Naga Kilo 28, Cairo/Alexandria Desert Road Investor Relations Assistant Manager Extension: 1230 / 1504 Abou R
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