Palm Hills Development Co. · EGX:PHDC
Palm Hills Development — Palm Hills Developments — Investor Presentation (February 2018)
42 slides from Palm Hills Development's investor presentation, February 2018
Slide 1: Investor Presentation February 2018
Palm Hills Developments | January 2015 Investor Presentation February 2018
Slide 2: The Market
1 Village Gate, East Cairo The Market Palm Hills Katameya, East Cairo
Slide 3: Egypt has the Largest & Fastest Growing Population in MENA Region
THE MARKET Egypt has the Largest & Fastest Growing Population in MENA Region Population Density Egypt’s Population Growth (millions) Cairo’s Population Growth (millions) 103.0 18.8 19.5 91.5 93.4 16.9 82.1 15.2 74.9 62.4 11.9 49.4 8.3 38.6 6.5 30.8 23.6 4.7 3.0 1955 1965 1975 1985 1995 2005 2010 201
Slide 4: PHD is Capitalizing on Egypt's Unique Dynamics, Population Growth & Urbanization Trends
THE MARKET PHD is Capitalizing on Egypt’s Unique Dynamics, Population Growth & Urbanization Trends Housing Units Supply 2010-2015 (thousands) Housing Units Supply 2016 (thousands) 352 164 Key Takeaways 264 Total Housing Units: 264K • Demand is estimated in the Upper 196 184 177 Middle to High End ma
Slide 5: PHD in brief
2 Perspective of Palm Hills New Cairo, East Cairo PHD in brief Hacienda Bay, North Coast
Slide 6: Who's PHD?
PHD IN BRIEF Who’s PHD? Management Team Shareholding Structure1 ✓ High quality off-plan developer with good track record and more than 20 years of experience Yasseen Mansour 4% 1% Strategic Chairman 14% ✓ Cumulative sales of more than EGP32.3 bn since Holders 50% Institutions 1997 Mohamed Sultan Tar
Slide 7: High Quality Off-plan Developer with more than 20 years of Experience
PHD IN BRIEF High Quality Off-plan Developer with more than 20 years of Experience PHD inks co- Corporate Milestones PHD concludes EGP1.65 development bn rights issue to finance PHD inks co- agreements with NUCA new growth endeavors development of 3,000 feddan in Al Ethadia PHD inks EGP750 mn agreem
Slide 8: PHD's Competitive Advantage is based on Focus on High Quality
PHD IN BRIEF PHD’s Competitive Advantage is based on Focus on High Quality Quality Focused PHD’s strategy is focused on offering the highest quality livable gated communities in Egypt, catering to the middle, upper middle and high end spectrum. Quality starts with the master plan, architecture, qual
Slide 9: Well Diversified & Balanced Portfolio of Projects
PHD IN BRIEF Well Diversified & Balanced Portfolio of Projects First Homes Secondary Homes Commercial 5 6 1 2 4 3 • Offering first homes in 24 • Offering secondary homes by the • PHD owns almost 2.5 mn sqm of projects in West and East Cairo Mediterranean sea in 4 projects land allocated for commerci
Slide 10: The Largest Land Bank in Egypt of 41 mn sqm
PHD IN BRIEF The Largest Land Bank in Egypt of 41 mn sqm Completed Projects Projects to be Launched Developed Area Under Residential Developed Area Under Land Area (000 Residential Land Commercial Area Land Area Commercial Area Project Name Residential Area Development Project Name Land Area (000 Re
Slide 11: Residential Real Estate - Projects Summary
PHD IN BRIEF Residential Real Estate - Projects Summary Projects Completed Projects Under New Palm Portfolio Projects Development Projects City Number of Projects 29 12 11 5 1 Bamboo Extension, West Cairo Delivered Units 7,691 3,410 4,281 - - Av. For Sale Inventory1 (EGP bn) 520 0.09 7.3 55 458 Av.
Slide 12: Commercial Real Estate - Monetization of Non-Core Assets Underway
PHD IN BRIEF Commercial Real Estate1… Monetization of Non-Core Assets Underway Palm Central, West Cairo Village Gate, East Cairo Land Size 12k sqm Land Size 16k sqm Sellable Area 4.5k sqm Sellable Area 10.5k sqm Targeted Sales EGP170 mn Targeted Sales EGP220 mn Cumulative New Sales EGP162 mn Cumulat
Slide 13: Commercial Real Estate - Core Assets currently contributing 17% to Net Profit
PHD IN BRIEF Commercial Real Estate1… Core Assets currently contributing 17% to Net Profit Palm Club, West Cairo Novotel October, West Cairo Land Size 85k sqm Operations began 2005 Targeted Sales EGP2.5 bn Hotel Category 3 Stars Cumulative New Sales EGP289 mn Number of Keys 195 PHD’s Effective Owner
Slide 14: Clear Construction Program until 2024
PHD IN BRIEF Clear Construction Program until 2024 Construction Spend (EGP bn) Land Liabilities Repayment (EGP mn) 4.8 624 4.4 4.4 4.2 EGP27.9 bn 521 521 EGP4.1 bn Planned spend1 Planned land payments2 418 418 418 3.0 2.7 1.7 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 Units Han
Slide 15: Ambitious Plans to Create Value for Shareholders
PHD IN BRIEF Ambitious Plans to Create Value for Shareholders Sales Rollout of Existing Inventory1 (Units) Cash Flow from Operations (EGP bn) 10.8k Units 2,859 excluding October Palm City project’s 4.5 EGP24.2 bn which has Projected CF from Operations2 1,994 c.34.5k Units 3.3 1,840 1,762 To be launc
Slide 16: Net Asset Valuation Per Share
PHD IN BRIEF Net Asset Valuation Per Share1 Old Projects/Projects Under Development New Projects EGP Millions EGP Millions EGP Present Value of Receivables 4,146 Palm Hills New Cairo - Residential 1,902 16 Pre-Tax NAV Present Value of Available for Sale Units 5,029 Palm Hills New Cairo - Commercial
Slide 17: Risks & Market Concerns are Well Taken Care Of
PHD IN BRIEF Risks & Market Concerns are Well Taken Care Of Flexible terms and conditions embedded with the co- Given the current development agreements, reducing potential supply/demand mismatch, financial burdens in case of slowdown in demand for demand for primary housing primary housing. Co-deve
Slide 18: Key Financials
3 Golf Views, West Cairo Key Financials CASA, West Cairo
Slide 19: Record New Sales of EGP8.1 bn in 9M2017, 44% Growth YoY
KEY FINANCIALS Record New Sales of EGP8.1 bn in 9M2017, 44% Growth YoY New Sales1 (EGP mn) PHD’s Average Selling Prices & Construction Cost (EGP/sqm) New Sales Units Sold Apartments Land Standalone Units Construction Cost 8,467 8,154 14,947 10,387 6,332 7,350 5,677 8,527 11,500 6,500 8,337 4,820 3,9
Slide 20: 11% YoY Growth in Construction Spend to EGP1.7 bn
KEY FINANCIALS 11% YoY Growth in Construction Spend to EGP1.7 bn Construction Progress1 Inventory Breakdown (Delivery/Backlog)2 Handovers by Region (Percentage Completed) Completed Remaining Total Inventory 20,788 2,049 14% 351 1,573 Launched To be launched 1,452 347 1,340 15,562 5,226 310 86% 981 1
Slide 21: 30% YoY Growth in Revenue, 65% YoY Growth in Cash Inflows from Operations
KEY FINANCIALS 30% YoY Growth in Revenue, 65% YoY Growth in Cash Inflows from Operations Revenue (EGP mn) Gross Profit (EGP mn) EBITDA (EGP mn) 5,631 1,679 4,758 1,476 24% 33% 938 3,642 3,656 1,118 19% 1,015 1,150 700 32% 31% 31% 20% 654 18% 19% 2,106 705 30% 15% 502 28% 959 270 140 2013 2014 2015 2
Slide 22: Concluded Securitization & Discounting of EGP630 mn in Receivables
KEY FINANCIALS Concluded Securitization & Discounting of EGP630 mn in Receivables Net Debt/EBITDA Receivables/Net Debt Net Debt/Equity Net Debt Net Debt/EBITDA Receivables Net Debt Net Debt Net Debt/Equity 3,312 3,312 5.2 8.5 2,658 2,658 4.3 14,400 3.6 0.4 0.5 3.5 11,350 4.2 0.4 1,481 1,464 1,481 1,
Slide 23: 2017 Outlook & Guidance
KEY FINANCIALS 2017 Outlook & Guidance New Sales Given the strong market conditions and ongoing housing supply-demand mismatch, management is comfortable EGP9.5 bn about meeting or even exceed the New Sales target of EGP9.5 bn. Construction Spend With the aim of accelerating construction activities
Slide 24: Appendix
4 Hacienda White, North Coast Appendix Golf Views, West Cairo
Slide 25: Palm Hills New Cairo, East Cairo
NEW PROJECTS Palm Hills New Cairo, East Cairo Project Master Plan Pros ♦ PHD signed a co- development agreement ✓ Lower initial cash outlays with NUCA in March ✓ Replenish PHD’s Land Bank and 2015 presence in East Cairo ♦ SWA Group finalized ✓ Develop Large Integrated the master plan in July Communi
Slide 26: Palm Hills New Cairo – Commercial
NEW PROJECTS Palm Hills New Cairo – Commercial ♦ Commercial area Project Master Plan Recreational Club - Perspective 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 is planned
Slide 27: 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 28: 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 139.4 ✓ Rep
Slide 29: The Crown, West Cairo
NEW PROJECTS The Crown, 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 PHD
Slide 30: Alexandria
NEW PROJECTS 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 Alexandria, pu
Slide 31: Palm City, West Cairo
NEW PROJECTS Palm City, West Cairo The Location Masterplan of the first 3,000 feddan The Theme Phase One Palm Hills Developments | 2018 | Investor Presentation 31
Slide 32: Palm City, West Cairo
NEW PROJECTS Palm City, West Cairo Agreement Highlights Pros ♦ PHD signed the co-development agreement with the Egyptian Ministry of Housing/NUCA on September 11, 2017 ✓ Palm City expanded PHD’s Land Bank by 12.6 mn sqm, positioning ♦ The first phase will encompass 12.6 mn sqm (3,000 feddan) with an
Slide 33: Projects Under Development
EXISTING PROJECTS Projects Under Development(1) 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 Inven
Slide 34: Projects Under Development
EXISTING PROJECTS Projects Under Development(1) 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
Slide 35: Projects Under Development
EXISTING PROJECTS Projects Under Development(1) Palm Hills Katameya Extension, East Cairo Hacienda White 2, North Coast Hacienda Bay, North Coast Land Size 230k sqm Land Size 472k sqm Land Size 2,411k sqm Type of Units Standalone Type of Units Standalone & Apartments Type of Units Standalone & Apart
Slide 36: Projects Under Development
EXISTING PROJECTS Projects Under Development(1) Village Garden Katameya, East Cairo Palm Hills Katameya Extension (Ph2), East Cairo PK2 Phase 2 PK2 VGK PHK Land Size 228k sqm Land Size 150k sqm Type of Units Standalone /Apartments Type of Units Standalone Units Value of Inventory EGP1 bn Value of In
Slide 37: Income Statement
FINANCIAL STATEMENTS Income Statement(1) In EGP 000’s 3Q2017 3Q2016 % 9M2017 9M2016 % Revenue 1,529,553 1,485,231 3% 4,757,805 3,656,251 30% Cost of Revenue (999,020) (968,529) 3% (3,282,016) (2,538,654) 29% Gross Profit 530,532 516,702 3% 1,475,788 1,117,596 32% Gross Profit Margin 35% 35% - 31% 31
Slide 38: Balance Sheet
FINANCIAL STATEMENTS Balance Sheet(1) EGP Thousand September 30, 2017 December 31, 2016 EGP Thousands September 30, 2017 December 31, 2016 Long-Term Assets Investment Purchase Liabilities 44,257 44,257 Investments in Associates 83,837 79,226 Notes Payable - Short Term 1,056,505 974,302 Investment Pr
Slide 39: Cash Flow Statement
FINANCIAL STATEMENTS Cash Flow Statement EGP Thousands September 30, 2017 September 30, 2016 EGP Thousands September 30, 2017 September 30, 2016 Net Profit for the period (Before Income Tax & Non- Cash Flows from Investing Activities 718,072 681,666 Controlling Interest) Payments for Purchase of Fix
Slide 40: 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 41: Contacts
INVESTOR RELATIONS Contacts IR Team Download our IR App Mamdouh Abdelwahab Investor Relations & Investments Director Download the App on your smart phone or tablet today: Radwa Abu El Naga Investor Relations Manager IOS: https://itunes.apple.com/app/ Contact Details id1075708830 Investor.relations@p
Slide 42: 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
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