Egyptian For Tourism Resorts · EGX:EGTS
Egyptian For Tourism Resorts — FY2016 Earnings Presentation
41 slides from Egyptian For Tourism Resorts's earnings presentation, 2017
Slide 1: Investor Presentation Q4/FY 2016
Investor Presentation Q4/FY 2016
Slide 2: Disclaimer
Disclaimer 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 of an offer to subscribe for or purchase securities of any kind and neither this document nor anything contained herein sh
Slide 3: Agenda
AGENDA Investment Highlights 11 ERC – Egypt’s Leading Master Developer 2 ERC - A Leading Master and Real Estate Developer 3 Corporate History and Recent Events Sahl Hasheesh Main Gate 4 Sahl Hasheesh – ERC’s Mega Resort Community 5 Market Opportunity Summary 6 Appendices
Slide 4: Investment Highlights
Investment Highlights Master developer of Leading real estate Premium mega resort mega resorts developer on the Red Sea of world-class communities Unique business model Unique value Strong shareholder base with multiple recurring revenue proposition and experienced management streams for sub-develop
Slide 5: ERC: Q3/9M 2016 Developments & Overview
ERC: Q3/9M 2016 Developments & Overview Slowdown in Revenues Cash Collections Cash Position Sawari Marina In FY2016, the company recorded Inflows from sub-developers and retail The company’s balance sheet ERC continues to push forward with revenues of EGP 208 million, down buyers stood at EGP 84 mil
Slide 6: Agenda
AGENDA 1 Investment Highlights ERC - A Leading Master and Real Estate Developer 12 3 Corporate History and Recent Events Sahl Hasheesh Main Gate 4 Sahl Hasheesh – ERC’s Mega Resort Community 5 Market Opportunity Summary 6 Appendices
Slide 7: ERC – Egypt's Master Developer
ERC – Egypt’s Master Developer ERC is a master and real estate developer and exclusive Manage the community manager of fully integrated, world-class communities community and supply of utilities The ERC Business Model: Implement design 1 Acquire broad acre land holdings suitable for high-quality dev
Slide 8: ERC Business Model
ERC Business Model • By world-class master planners Land Identification/ • Design and construction guidelines and Three Revenue Streams Investment Acquisition conditions + ERC leverages strong brand partnerships, a comprehensive • Water Desalination Plants and Networks development model and manageme
Slide 9: Agenda
AGENDA 1 Investment Highlights 2 ERC - A Leading Master and Real Estate Developer ERC – Egypt’s Leading Master Developer Corporate History and Recent Events 3 Sahl Hasheesh Main Gate 4 Sahl Hasheesh – ERC’s Mega Resort Community 5 Market Opportunity Summary 6 Appendices
Slide 10: Shareholder Information
Shareholder Information A successful public-private partnership with a stable shareholder base Legal Structure Egyptian Public Joint Stock Company KATO Investment Listing 11.96% Egyptian Exchange (EGX) Others First Arabian Company Authorized Capital (EGP) 2,000,000,000 40.48% 10.00% Paid-in Capital
Slide 11: ERC Corporate History
ERC Corporate History 2017 2017 onwards • Begin work on Sawari with plans to open sales window during 2016, while focusing efforts on finalizing work on the Tawaya development with PHD 2015 • Strengthen marketing campaigns to attract domestic visitors and second-home owners • Continue to place empha
Slide 12: Emerging from the Crisis: Another Opportunity
Emerging from the Crisis: Another Opportunity Dislocations after the global financial crisis and the 2011 uprising have left Sahl Hasheesh with the opportunity to emerge as the destination of choice for investors Comfortable Cash Reserves – Prime Land Bank Supporting investment to boost the EGP 131.
Slide 13: Delayed recovery relative to peers suggests strong rebound
Delayed recovery relative to peers suggests strong rebound January 2011 –May 2017 (rebased to 100) EGX30 EGTS MNHD TMGH ODHN PHDC OCDI 200 180 160 140 120 100 80 60 40 20 0 13 Investor Presentation FY 2016
Slide 14: Agenda
AGENDA 1 Investment Highlights 2 ERC - A Leading Master and Real Estate Developer ERC – Egypt’s Leading Master Developer Sahl Hasheesh Main Gate 3 Corporate History and Recent Events Sahl Hasheesh – ERC’s Mega Resort Community 4 5 Market Opportunity Summary 6 Appendices
Slide 15: A rare and established prime diving and seaside destination
A rare and established prime diving and seaside destination Phase 1 Alexandria Cairo Hurghada Sahl Hasheesh Phase 3 Phase 2 Luxor On program to become the no. 1 destination for seaside hospitality, residential and entertainment developers 15 Investor Presentation FY 2016
Slide 16: A master-planned project roughly two-thirds the size of Manhattan
A master-planned project roughly two-thirds the size of Manhattan Sahl Hasheesh is a unique, purpose-built Red Sea destination 18 km south of Hurghada International Airport and approximately 470 km • 18 km south of Hurghada Int’l Airport from Cairo. The year-round development – approximately two-thi
Slide 17: A WATG Master Plan
A WATG Master Plan Phase III pending Tourism Development Authority (TDA) approval Phase III shapes and brings online phased districts totaling 20 million square meters, and is the key to transforming the development from a pure resort to a thriving resort city. The WATG design introduces the heart o
Slide 18: Sahl Hasheesh: Progress Benchmarks
Sahl Hasheesh: Progress Benchmarks Phases I and II of Sahl Hasheesh are currently home to around 2,700 hotel Phase 1 6 million m² rooms and suites managed by brands including Premier Le Rêve, Premier Romance, Pyramisa and Old Palace, in addition to 2,300 residential units. • Fully finished and opera
Slide 19: A unique value proposition for investors & sub-developers
A unique value proposition for … 1. Investors & Sub-Developers Controlled Supply Large – yet strategically released – land phases deployed based on development and ROI protection. Land supply around Hurghada is eroding quickly, while future sites at Sahl Hasheesh are easily brought online on short t
Slide 20: and for tourists & residents
and for … 2. Tourists & Residents Community Management in an Upscale Resort Architectural integrity and cohesion guaranteed by strict design guidelines coupled with innovative design concepts promise an ideal physical environment. Community management controls and regulations ensure an uncommonly hi
Slide 21: ERC Business Model – The Case at Sahl Hasheesh
ERC Business Model – The Case at Sahl Hasheesh Land Identification/ Three Revenue Streams Investment Acquisition ERC leverages strong brand partnerships, a comprehensive development model and management structures that are transferable across projects and sectors – our ambition is to build a prolifi
Slide 22: Revenue Stream 1: Land Sales
Revenue Stream 1 & Land Sales SAHL HASHEESH RED SEA, EGYPT
Slide 23: Revenue Stream 1: Land Sales
Revenue Stream 1: Land Sales Transfer of Ownership Occurs Upon Project Completion and Operation to Prevent Developer and Investor Speculation Review Offer Acceptance + CapEx Construction • Offer received from • Sales contract signed 1. Plans reviewed against • Infrastructure coordination developers/
Slide 24: Revenue Stream 1: Land Sales Industry-Beating Model
Revenue Stream 1: Land Sales Industry-Beating Model 2.7 million m² (excluding Phase III) remain in the pipeline at Sahl Hasheesh. Average sales price grew at a CAGR of 90% from 2004 till the global financial crisis and 25% till present Weighted Average Sales Price/m² Achieved (USD) Weighted Average
Slide 25: Revenue Stream 2: Real Estate Development
Revenue Stream 2 Real Estate Development: Strategic Projects and Sahl Hasheesh Company
Slide 26: SHC Land Bank and Strategic Developments
1 SHC Land Bank and Strategic Developments | Overview ERC’s subsidiary Sahl Hasheesh Company (SHC) is developing approximately 700,000 m² of commercial and residential property Sole developer for Phases I and II downtown Strategic plots acquired at market prices for mixed-use For Future Development
Slide 27: ERC Strategic Developments | Sawari Marina
2 ERC Strategic Developments | Sawari Marina • 2.5 mn m2 exclusive community centered around a world-class yacht club and marina Project Highlights • Water across 117,000 m2 to host 330+ boats and yachts from 10-60+ m in length • Total area of Phase 1: 1.1 mn m2 • Two 5-star and one 4-star hotels in
Slide 28: SHC Strategic Developments | Tawaya
3 SHC Strategic Developments | Tawaya Project Highlights • Exclusive waterfront residential project in the Old Town of Sahl Hasheesh. • With this strategic alliance, ERC is targeting the build-up of a local community of residential owners. • Project Brief o 152 exclusive seafront apartments, spread
Slide 29: ERC Strategic Developments | Jamaran
4 ERC Strategic Developments | Jamaran • An exclusive enclave of sea-side villas along the coast of Sahl Hasheesh SOLD OUT • Four designs to choose from, with each possessing a unique architecture style while embodying the elegance, simplicity and charm associated with Sahl Hasheesh seaside living •
Slide 30: Revenue Stream 3: Community and Utilities Management
Revenue Stream 3 Community and Utilities Management
Slide 31: Revenue Stream 3: Community and Utilities Management
Revenue Stream 3: Community and Utilities Management ERC’s extensive infrastructure investments position it as the exclusive utilities and services provider – a model that generates sustainable cash flows 1 cost recovery and 3 profit centers from recurring revenues Supply of Community Water Electric
Slide 32: Agenda
AGENDA 1 Investment Highlights 2 ERC - A Leading Master and Real Estate – Egypt’s Leading Master Developer Developer ERC 3 Corporate History and Recent Events Sahl Hasheesh Main Gate 4 Sahl Hasheesh – ERC’s Mega Resort Community Market Opportunity Summary 5 6 Appendices
Slide 33: High stock liquidity with high growth potential
High stock liquidity with high growth potential … Shares Outstanding 1,050,000,000 52-Week Performance Chart (rebased to 100) Share Price* EGP 1.08 200 EGX30 Rebased EGTS Rebased Market Cap.* 1,134,000,000 180 Average Daily Volume** 7.73 million 160 2016 140 Revenue EGP 208 million 120 EBT EGP 105 m
Slide 34: Backed by a solid balance sheet
… backed by a solid balance sheet Consolidated Liquid Assets and Liabilities (EGP millions) Cash & TB Total Receivables Current L. Long Term L. 509.4 748.8 443.5 1,284.7 273.5 443.5 331.9 260.6 619.5 192.1 208.1 384.2 216.4 226.9 236.3 336.2 674.7 328.9 342.0 463.3 309.2 248.1 273.8 238.6 271.1 271.
Slide 35: Agenda
AGENDA 1 Investment Highlights 2 ERC - A Leading Master and Real Estate – Egypt’s Leading Master Developer Developer ERC 3 Corporate History and Recent Events Sahl Hasheesh Main Gate 4 Sahl Hasheesh – ERC’s Mega Resort Community 5 Market Opportunity Summary Appendices 6
Slide 36: ERC's Vision, Mission & Strategy
ERC’s Vision, Mission & Strategy VISION MISSION STRATEGY To become a regional master developer To make our shareholders proud of the To successfully implement the identified of international-standard mega company’s standards, reputation, initiatives to ensure the success of our communities by design
Slide 37: Management Team (1/2)
Management Team (1/2) Wael El-Hatow, Chief Executive Officer Mr. El Hatow is a veteran of the private equity industry, having served as Chief Investment Officer/Executive Director at Al Ahly Capital for 7 years. Prior to his role with Al Ahly, Mr. El-Hatow was with HC Securities and Investment for 1
Slide 38: Management Team (2/2)
Management Team (2/2) Ahmed Fahmy, Head of Information and Communication Technology Mr. Fahmy has more than ten years of experience in the Information and Communication Technology (ICT) field. He is responsible for preparing ICT related strategic and operational plans, including designing and managi
Slide 39: Select Consolidated Financials
Select Consolidated Financials From the Income Statement (EGP mn) 2009 2010 2011 2012 2013 2014 2015 2016 Revenue 25.8 14.9 28.2 40.5 28.9 51.3 400.4 207.9 Gross Profit 12.1 (5.8) (2) (11.3) (23.1) (42.4) 241.9 84.1 EBT 3.9 (7.8) (3.2) (106.9) (43.1) (40.5) 216.6 105.2 Net Income 4.7 (9.4) (7.4) (11
Slide 40: The Marina of Sahl Hasheesh, under development An exclusive waterfront
The Marina of Sahl Hasheesh, An exclusive waterfront In-house development of sea- The downtown commercial under development residential project in the Old front residential villas with area and public beach of Sahl Town of Sahl Hasheesh exquisite open water views and Hasheesh. Developed by Sahl larg
Slide 41: www.erc-egypt.com www.sahlhasheesh.com
www.erc-egypt.com www.sahlhasheesh.com
Egyptian For Tourism Resorts (ERC) — FY2016 Earnings Presentation on 6ix