Palm Hills Development Co. · EGX:PHDC
Palm Hills Development — Palm Hills Developments — Investor Presentation (November 2016)
58 slides from Palm Hills Development's investor presentation, November 2016
Slide 1: Investor Presentation November 2016
Palm Hills Developments | January 2015 Investor Presentation November 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 27 30 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 New Sales Investments, USA, 2.8% Ripplewood, 5.5% EU, 5.2% EGP9.3 bn EGP24 bn 2.5% Receivables Recognized Revenue UK, 12.8% Free Float, EGP9.8 bn EGP14.6 bn 14.4% MMID, 41.3%
Slide 6: Well diversified projects portfolio and land bank
INTRODUCTION Well diversified Projects’ Portfolio, spreading over a land bank of 27 mn sqm, of which 6.6 mn sqm is developed Projects Under Development Raw Land Available for Development Completed Projects („000 sqm) Residential Commercial Developed („000 sqm) Residential Commercial Developed („000
Slide 7: Clear Execution of a Four Pillars Strategy
INTRODUCTION Clear Execution of a Four Pillars 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
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 EGP3.9 bn EGP10.8 bn Receivables Recognized Revenue EGP4.0 bn EGP6.9 bn Av. for Sale Inventory(1) Ongoing Projects EGP6.5 bn, 6 projects in 1,363 units development phase Delivered Projects Del
Slide 11: East Cairo
PROJECTS OVERVIEW East Cairo Projects Location / Photos Projects Key Facts (1) Revenue Backlog Cumulative Sales EGP2.6 bn EGP6.6 bn Receivables Recognized Revenue EGP2.8 bn EGP4 bn Av. for Sale Inventory(2) Ongoing Projects EGP28.3 bn, 6 projects in 6,918 units development phase Delivered Projects D
Slide 12: North Coast
PROJECTS OVERVIEW North Coast Projects Location / Photos Projects Key Facts (1) Revenue Backlog Cumulative Sales EGP2.8 bn EGP6.5 bn Receivables Recognized Revenue EGP2.8 bn EGP3.7 bn Av. for Sale Inventory(2) Ongoing Projects EGP5.9 bn, 2 projects in 1,417 units development phase Delivered Projects
Slide 13: Financial Review
Financial Review
Slide 14: 3Q2016 Financial Results: Income Statement
3Q2016 FINANCIAL RESULTS Income Statement: Record Revenue of EGP3.6 bn, Net Profit of EGP404 mn during 9M2016 despite change in accounting policies Revenue (EGP mn) Gross Profit (EGP mn) EBITDA (EGP mn) CAGR3 = 87% CAGR3 = 89% CAGR3 = 88% 1,106 700 3,492 3,628 35% 654 33% 24% 592 911 1,082 502 2,586
Slide 15: Balance Sheet: Deleveraging underway via securitization of receivables
FINANCIAL REVIEW 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 2,506 3.62 0.42 3.91 0.37 0.38 6,157 5,987 9,80
Slide 16: Unit Deliveries & Construction Spending
3Q2016 FINANCIAL RESULTS Steady focus on Unit Deliveries & Construction Spending, reaching EGP1.5 bn in 9M2016 Construction Progress(3) Inventory Breakdown (Delivery/Backlog) Unit Deliveries (Percentage Completed) Completed Remaining Total CAGR1 =57% 1,573 14,677 1,452 25% 347 269 Launched Non 981 7
Slide 17: Building on Success
Building on Success
Slide 18: Co-Development with NUCA – Palm Hills New Cairo
BUILDING ON SUCCESS Co-Development with NUCA – Palm Hills New Cairo Project Location Master plan1 Phase 1 master plan Cairo – Suez road Madinaty Project Key Facts Recent Developments PHD Returns2 Land Area 2,100,000 sqm ♦ SWA Group has finalized the project‟s master plan in July 2016. Expected Reven
Slide 19: Co-Development Project with MNHD – Capital Gardens
BUILDING ON SUCCESS Co-Development Project with MNHD – Capital Gardens 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 EGP5.5 bn Tota
Slide 20: Co-Development project 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 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 (MoH) ♦ As Master Developer, PHD possesses certain rights for the development of a
Slide 23: 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 24: 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 25: 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 26: Why invest?
Why invest?
Slide 27: 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 5,754 Highly experienced Board Executives, with hands-on members, actively experience, in managing & 11 4 Homes since inception spreading involved in steerin
Slide 28: Appendix
Appendix
Slide 29: Table of Content
Table of Content Egypt History Financial Statements Corporate Structure 30 31 32 35 Board of Directors Management Team Peer Analysis Projects Portfolio 36 37 38 42 Palm Hills Developments | 2016 | Investor Presentation 29
Slide 30: 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 31: 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 32: Income Statement
FINANCIAL STATEMENTS Income Statement1 EGP 000 9M2016R 9M2015R Change 9M2016BR 9M2015BR Change Revenue2 3,628,438 2,586,245 40% 3,833,309 2,626,893 46% Cost of revenue (2,522,769) (1,675,661) 51% (2,479,581) (1,643,427) 51% Gross profit 1,105,670 910,584 21% 1,353,728 983,466 38% Margin % 30% 35% (5
Slide 33: Balance Sheet
FINANCIAL STATEMENTS Balance Sheet1 EGP '000 Sep 30, 2016 Dec 31, 2015 R EGP '000 Sep 30, 2016 Dec 31, 2015 R Long-Term Assets Current Liabilities (Continued) Investments in Associates 76,933 78,506 Due to Related Parties 130,340 226,319 Investment Property 854,665 854,665 Investment Purchase Liabil
Slide 34: Cash Flow Statement
FINANCIAL STATEMENTS Cash Flow Statement1 EGP '000 Sep 30, 2016 Sep 30, 2015 EGP '000 Sep 30, 2016 Sep 30, 2015 Net Profit for the period (before income tax & non-controlling interest) 681,666 798,446 Change In Notes Payable 531,402 (513,403) Change In Suppliers & Contractors (20,841) 80,523 Adminis
Slide 35: 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 36: 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 37: 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 38: Peer Analysis: Revenue, Profit and EBITDA
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 39: Peer Analysis: New Sales and Units 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 40: Peer Analysis: Balance Sheet
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 41: Peer Analysis: Trading 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 42: 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 43: 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 EGP348 mn No. of Units 149 Sales Backlog EGP6.2 mn Type of
Slide 44: 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 225 672 Built Up Area 493k sqm Recognized Revenue EGP2,277 mn 38% No. of Units 685 Sales Backlog EGP1,149mn
Slide 45: 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 188 Built Up Area 427k sqm Recognized Revenue EGP1,752 mn 1,249 43% No. of Units 966 Sales Backlog EGP947
Slide 46: 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 7% Built Up Area 178k sqm Recognized Revenue EGP387 mn 698 No. of Units 475 825 Sales Backlog EGP43
Slide 47: 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 243 Built Up Area 380k sqm 27% Recognized Revenue EGP222 mn No. of Units 1,182 732 909 Sales Backlog EG686 mn
Slide 48: 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 1,084 28 Built Up Area 274k sqm Recognized Revenue EGP944 mn No. of Units 1,154 Sales Backlog EGP65 mn Type of
Slide 49: 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 216 11% 84 Built Up Area 320k sqm Recognized Revenue EGP1,890 mn No. of Units 516 Sales Backlog EGP29
Slide 50: 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 10% 29 Delivered Units 149 Built Up Area 114k sqm Recognized Revenue EGP740 mn No. of Units 305 Sales Backl
Slide 51: 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 859 2% Built Up Area 239k sqm Recognized Revenue EGP767 mn 4 No. of Units 1,120 Sales Backlog EG
Slide 52: 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 53: 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 204 14 23% Built Up Area 110k sqm Recognized Revenue EGP203 mn No. of Units 686 Sales Backlog EGP527 mn Type
Slide 54: 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 80 3% Built Up Area 28k sqm Recognized Revenue EGP130 mn No. of Units 96 Sales Backlog EGP32 mn Type of Uni
Slide 55: 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 956 Built Up Area 549k sqm 33% 1,564 Recognized Revenue EGP2,537 mn No. of Units 2,194 Sales Backlog EGP1
Slide 56: 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 178 12% 25 Built Up Area 58k sqm Recognized Revenue EGP476 mn No. of Units 302 Sales Backlog EGP127 mn
Slide 57: 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 26 Built Up Area 156k sqm 24% 441 Recognized Revenue EGP685 mn No. of Units 824 Sales Backlog EGP
Slide 58: 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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