Amer Group Holding · EGX:AMER
Amer — Amer Group Holding Company S.A.E. — IPO Roadshow (November 2010)
76 slides from Amer's IPO roadshow presentation, November 2010
Slide 1: Investor Presentation
Investor Presentation November 2010
Slide 2: Table of Contents
Table of Contents Table of Contents Page Section 1 Overview of the Transaction 4 Section 2 Group Overview 7 Section 3 Porto World 9 Section 4 Restaurants 30 Section 5 Meeting Point Malls 34 Section 6 New Ventures 37 S ti 7 Section I Investment t t Highlights Hi hli ht & Strategy St t 42 Section 8 Co
Slide 3: Disclaimer
Disclaimer You must read the following before continuing. The following applies to the confidential information following this page (the “Confidential Information”), and you (each referred to hereafter as a “Recipient”) are therefore advised to read this carefully before reading, accessing or making
Slide 4: Presentation Team
Presentation Team y Mansour Amer y Omar Amer y Mohamed El Sayed Founder, Chairman and CEO Vice Chairman & Chief Vice Chairman – Started in real estate development p Business Development – Previously y responsible p for in 1989 Officer developing Porto World – Created Porto World concept – In charge
Slide 5: 1. Overview of the Transaction
1. Overview of the Transaction Private and Confidential: For personal use only and not for distribution or copying
Slide 6: Transaction Summary
Transaction Summary Issuer • Amer Group Holding Company S.A.E (the “Company”) • Secondary Offering, consisting of an Institutional Offering and a Retail Offering (the “Combined Offering”), followed by a capital increase Type of Offering (the “Capital Increase”) in the form of a closed subscription b
Slide 7: Current and Post-IPO Shareholding Structure
Current and Post-IPO Shareholding Structure Pre-IPO Shareholding Structure SOL Global Mohamed El-Amin Other Amer Wakf Ltd 2 Mansour Amer Holding Ltd. 1 Ragab Shareholders 43.7500% 33.0000% 14.8082% 8.4401% 0.0018% Amer Group Holding Company S.A.E Post-IPO Shareholding Structure3 SOL Global Mohamed E
Slide 8: 2. Group Overview
2. Group Overview Private and Confidential: For personal use only and not for distribution or copying
Slide 9: Amer Group: Master of Local Brands
Amer Group: Master of Local Brands Real Estate Contracting Education New Ventures Malls Restaurants Hotels onal 4 operatio operational Affiliated with ational 4 opera 3o 6 under construction 4 under construction construction CSR esign 4 under c 1 underr design design 451 outlets 4 under d 2 under de
Slide 10: 3. Porto World
3. Porto World Private and Confidential: For personal use only and not for distribution or copying
Slide 11: Porto Marina
Porto Marina January 2005 10 Private and Confidential: For personal use only and not for distribution or copying
Slide 12: Porto Marina: 24/7 Non-Stop Construction
Porto Marina: 24/7 Non-Stop Construction June 2005 11 Private and Confidential: For personal use only and not for distribution or copying
Slide 13: Porto Marina
Porto Marina El Alamein, Egypt June 2006 Project j Highlights g g Land Area Avg. Selling Price2 Number of Units Sellable Area (sqm) Mall Leasable Area (sqm) Number of Hotel Keys (‘000s sqm) (EGP/sqm) 379 68.0 931 (69% sold1) 20,116 116,310 11,450 (+ 1,891 outdoor) 2009: ADR: EGP651; OCC: 23%3 Notes:
Slide 14: Porto Marina Golf & Islands: It was a Quarry
Porto Marina Golf & Islands: It was a Quarry June 2006 13 Private and Confidential: For personal use only and not for distribution or copying
Slide 15: Porto Marina Golf & Islands: Golf Course Started Months Later
Porto Marina Golf & Islands: Golf Course Started 6 Months Later 14 Private and Confidential: For personal use only and not for distribution or copying
Slide 16: Porto Marina Golf & Islands: The Destination was Ready
Porto Marina Golf & Islands: The Destination was Ready El Alamein, Egypt 18 Months Later Project Highlights Land Area Avg. Selling Price2 Number of Units Sellable Area (sqm) Mall Leasable Area (sqm) Number of Hotel Keys (‘000s sqm) (EGP/sqm) 35,120 (46% of 7,772 (+ 1,126 outdoor) 144 (operational) 3
Slide 17: Porto Sokhna: Time for Red Sea Mountains
Porto Sokhna: Time for Red Sea Mountains 2007 16 Private and Confidential: For personal use only and not for distribution or copying
Slide 18: Porto Sokhna: A Lifestyle Landmark was Born
Porto Sokhna: A Lifestyle Landmark was Born Ain Sokhna, Egypt 2009 Project Highlights Land Area Avg. Selling Price2 Number of Units Sellable Area (sqm) Mall Leasable Area (sqm) Number of Hotel Keys (‘000s sqm) (EGP/sqm) 94 152.0 1,632 (85% sold1) 14,364 197,800 10,313 (+1,558 outdoor) 2009: ADR: EGP
Slide 19: Golf Porto Sokhna
Golf Porto Sokhna Ain Sokhna, Egypt Project Highlights Land Area Avg. Selling Price2 Number of Units Sellable Area (sqm) Mall Leasable Area (sqm) Number of Hotel Keys (‘000s sqm) (EGP/sqm) 2,175.0 4,752 (68% sold1) 5,785 – 13,390 553,855 6,742 550 Notes: (1) As of June 30, 2010. Please refer to p.83
Slide 20: The Porto World Concept
The Porto World Concept In 2005, Amer Group created Porto World: the first branded real estate concept in the region With a Clear Consumer Perception 19 Private and Confidential: For personal use only and not for distribution or copying
Slide 21: Porto World's Core Menu
Porto World’s Core Menu 20 Private and Confidential: For personal use only and not for distribution or copying
Slide 22: Applied in Different Locations
Applied in Different Locations At the Seaside? Yacht Marina In the mountains? Cable Car In the Desert? Golf or Aqua Porto 21 Private and Confidential: For personal use only and not for distribution or copying
Slide 23: What's Next?
Wh t’ Next? What’s N t? Private and Confidential: For personal use only and not for distribution or copying
Slide 24: Porto Marina Golf & Islands
Porto Marina Golf & Islands El Alamein, Egypt Project Highlights Land Area Avg. Selling Price2 Number of Units Sellable Area (sqm) Mall Leasable Area (sqm) Number of Hotel Keys (‘000s sqm) (EGP/sqm) 35,120 (46% of 7,772 (+ 1,126 outdoor) 144 (operational) 3,829.6 5,500 2,948,220 Phase 1 sold1) 23,20
Slide 25: Porto South Beach
Porto South Beach Started construction in May 2010 Ain Sokhna, Sokhna Egypt 90% of the residential units were sold in the first two weeks of June 2010 Project Highlights Land Area Avg. Selling Price3 Number of Units1 Sellable Area (sqm) Mall Leasable Area (sqm) Number of Hotel Keys (‘000s sqm) (EGP/
Slide 26: Porto Residence
Porto Residence El Alamein, Egypt Project Highlights Land Area Avg. Selling Price Number of Units Sellable Area (sqm) Mall Leasable Area (sqm) Number of Hotel Keys (‘000s sqm) (EGP/sqm) 18.0 416 NA 34,048 9,100 NA 25 Private and Confidential: For personal use only and not for distribution or copying
Slide 27: Porto Cairo
Porto Cairo New Cairo Cairo, Egypt Project Highlights Land Area Avg. Selling Price2 Number of Units Sellable Area (sqm) Mall Leasable Area (sqm) Number of Hotel Keys (‘000s sqm) (EGP/sqm) Porto Cairo Walk - 8,000 137 8 137.8 ld1) 70 (87% sold 11 863 11,863 27 700 27,700 80 Porto Cairo Piazza – 20,83
Slide 28: Porto Matrouh: Cleopatra's Favorite Beach
Porto Matrouh: Cleopatra’s Favorite Beach Matrouh, Egypt Project Highlights Land Area Number of Units1 Avg. Selling Price Sellable Area (sqm) Mall Leasable Area (sqm) Number of Hotel Keys (‘000s sqm) 339.0 1,404 NA 112,320 15,000 200 Notes: (1) Project includes an additional timeshare component: 602
Slide 29: Porto Pyramids
Porto Pyramids Giza, Egypt View of the Giza Pyramids Project Highlights Land Area Avg. Selling Price Number of Units Sellable Area (sqm) Mall Leasable Area (sqm) Number of Hotel Keys ( 000s sqm) (‘000s (EGP/sqm) 105.0 1,170 NA 117,000 9,000 NA 28 Private and Confidential: For personal use only and n
Slide 30: Porto Tartous: Our First Project in Syria
Porto Tartous: Our First Project in Syria Tartous, Syria Project Highlights Land Area Avg. Selling Price Number of Units Sellable Area (sqm) Mall Leasable Area (sqm) Number of Hotel Keys ( 000s sqm) (‘000s (EGP/sqm) 186.0 3,715 NA 371,500 25,000 250 29 Private and Confidential: For personal use only
Slide 31: 4. Restaurants
4. Restaurants Private and Confidential: For personal use only and not for distribution or copying
Slide 32: Amer Restaurants Brands
Amer Restaurants Brands As of 30th of June 2010, Amer Group has 45 casual dining outlets and six brands. 31 Private and Confidential: For personal use only and not for distribution or copying
Slide 33: Overview of Amer Restaurants
Overview of Amer Restaurants Amer Group Restaurant Brands 2009 Ave 2009 Annual Number of Number of Spend / Average Name Launch Outlets Seats Brand description p Ownership p P Person U it S Unit Sales l (June 2010) (June 2010) (EGP) (EGPmn) • Casual dining Tex-Mex • 100% owned, franchise 1994 16 4,04
Slide 34: Overview of Amer Restaurants (Cont'd)
Overview of Amer Restaurants (Cont’d) • The Group’s restaurant portfolio has grown from Historical Number of Outlets one outlet (Chili (Chili’s s in Thawra, Thawra Egypt) with 270 seats in 1994 to 45 outlets with over 9,960 seats 45 in total CAGR: 17% 10 • The diversification and popularity of the 2
Slide 35: 5. Meeting Point Malls
5. Meeting Point Malls Private and Confidential: For personal use only and not for distribution or copying
Slide 36: The 'Meeting Point' Concept
The ‘Meeting Point’ Concept An entertainment mall development and management business. y Each Meeting Point mall mainly consists of food outlets, cinema screens and other entertainment facilities. The remainder consists of retail outlets y Meeting Points are positioned more as Entertainment entertai
Slide 37: Location of Existing and Proposed Meeting Point Malls
Location of Existing and Proposed Meeting Point Malls 1 2 4 5 Tartous 11.5 indoor 7.8 indoor NLA 9.1 NLA NLA 1 9 outdoor 1.9 1 1 outdoor 1.1 NLA 25.0 3 Syria NLA 23.2 10 6 NLA 15.0 Alamein 11.5 indoor Matrouh NLA 1.9 outdoor 11 7 Cairo Ain Sokhna NLA 8.0 12 NLA 2.1 8 NLA 20.8 Egypt 13 NLA 4.6 NLA 9.
Slide 38: 6. New Ventures
6. New Ventures Private and Confidential: For personal use only and not for distribution or copying
Slide 39: The 'New Ventures' Concept
The ‘New Ventures’ Concept New business models and relationships to enhance the Company’s core business and grow new opportunities. • Establishing joint ventures and strategic relationships with reputable service providers, such as Arabtec for construction and Better Homes for real estate brokerage
Slide 40: Overview of Arabtec Egypt
Overview of Arabtec Egypt • Amer Group signed an agreement with Arabtec Construction (“Arabtec”), one of the leading construction companies in the UAE, to establish a 40% Amer owned JV construction firm • The venture will serve Amer Group projects (not on an exclusive basis) in addition to providing
Slide 41: Overview of Al Alamein for Education
Overview of Al Alamein for Education Affiliated with • Presidential Decree no. 92 for the year 2010 granted, providing license to open the first American University in the North Coast in 2011 • MOU signed with California State University Northridge to provide unique cohort teaching curriculum from e
Slide 42: Overview of Other New Ventures
Overview of Other New Ventures • Serving to reinforce the ”Porto World” brand • Amer Group has entered into an MOU and will soon enter into a • Provides home furnishings, electronics and appliances for sale in Joint Venture with Better Homes Porto World developments and Meeting Point malls through r
Slide 43: 7. Investment Highlights & Strategy
7. Investment Highlights & Strategy Private and Confidential: For personal use only and not for distribution or copying
Slide 44: Amer Group: Business Strengths
Amer Group: Business Strengths The Group’s business model is built on solid operational and financial foundations. 1 St Strong Demand D d in i the th Group's G ' Target T t Markets M k t 2 Strong Brand Image with Clear Consumer Perception 3 Track ac Record eco d of o Effective ect e Execution ecut o
Slide 45: 1. Strong Demand in the Group's Target Markets
1. Strong Demand in the Group's Target Markets Strong Underlying GDP Growth… …Supporting a Rise in GDP per capita… 8% 7% 20% 18% 7% % 17% 6% 14% 14% 6% 15% 5% 5% 5% 5% 5% 5% 4% 4% 10% 4% 10% 8% 9% 3% 6% 2% 5% 0% 0% 2008 2009 2010E 2011E 2008 2009 2010E 2011E Egypt Syria MENA 1 Egypt Syria Source: Ec
Slide 46: 2. Strong Brand Image with Clear Consumer Perception
2. Strong Brand Image with Clear Consumer Perception y Strong brand awareness supports PORTO HOTELS MEETING POINT AMER RESTAURANTS SPA – Early y Off-Plan Sales SPORTS FACILITIES KIDS EVENTS PROMENADE – Premium Pricing – Lower Marketing Expenses RESULTS CABLE CAR PORTO HOME HOTELS M’GMT VACATION CLUB
Slide 47: 3. Track Record of Effective Execution
3. Track Record of Effective Execution At Start of Construction Post Construction Cumulative Sales | Units 2005 188 2006 1,524 2007 4,280 2008 7,714 2009 8,856 1H 2010 9,797 Around 10,000 units sold by Amer Group demonstrating customers acceptance of the Porto concept and proven track record in exec
Slide 48: 4. Highly Efficient Integrated Business Model
4. Highly Efficient Integrated Business Model Controlling the Tools to Create Landmark Lifestyle Destinations Maximize Operational Efficiency Provide Operational Flexibility Reduce Operational and Development Costs and Timeline Capacity to Manage Growth Ensure Different Income Streams th t Support t
Slide 49: 5. Capital Efficient Business Model
5. Capital Efficient Business Model Land Acquisition Process Historical Debt Levels • Securing land capable of being developed immediately to 250 217.2 1.0 avoid longg development p obligations g ((i.e.,, lower exposure p 200 0.8 to cyclical downturns) 150 0.6 • EGP mn No service purchase obligation
Slide 50: 6. Strong Management with Significant Operational Expertise
6. Strong Management with Significant Operational Expertise y Mansour Amer y Omar Amer y Mohamed El Sayed Founder, Chairman and CEO Vice Chairman & Chief Vice Chairman – Started in real estate development Business Development – Previously responsible for in 1989 Officer developing Porto World – Crea
Slide 51: Group Strategy
Group Strategy Amer Group aims to be a leading family-oriented resort / residential destination, entertainment mall and restaurant developer in MENA. Continue to Seeking Expansion Execute ecute Roll-Out o Out Opportunities in Egypt Within MENA Maintaining the Develop and Application of Expand Brands
Slide 52: Corporate Social Responsibility
Corporate Social Responsibility As the existing shareholders have donated 33% of current shares to a charitable trust, the trust will continue supporting the community in the name of Amer Group which reflects its CSR commitment with no more burden on other shareholders The train is bought through th
Slide 53: 8. Corporate Governance
8. Corporate Governance Private and Confidential: For personal use only and not for distribution or copying
Slide 54: Corporate Governance
Corporate Governance Amer Group abides by the highest standards of corporate governance that aim at enacting the principles of fairness, equality and equal opportunities, disclosure and transparency Board of Directors • Mansour Amer – Chairman Executive • Omar Amer – Vice Chairman • Mohamed El Sayed
Slide 55: 9. Financial Highlights
9. Financial Highlights Private and Confidential: For personal use only and not for distribution or copying
Slide 56: Financial Highlights
Financial Highlights Revenues Gross Profit 2000 1000 1,491.9 800 1500 CAGR: 78% CAGR: 83% 653.8 600 EGP mn 937.9 EGP mn 1000 454.0 653.7 400 321.0 445.2 207.1 500 200 0 0 2007 2008 2009 1H 2010 2007 2008 2009 1H 2010 Margin 47% 48% 44% 49% Operating Profit Net Profit After Tax 600 600 522.6 503.6 CA
Slide 57: Financial Highlights
Financial Highlights Amer Group’s Debt Position 1 Return on Average Equity 80% 250 0.40x 70% 67% 65% 217.2 0.35x 62% 200 60% 0.30x 0.2x 50% 150 0.3x 0.25x 40% 106.5 0.20x 100 0.15x 30% 69.0 0.2x 52.8 0.10x 20% 50 0 05x 0.05x 10% 0.1x - 0.00x 0% 2007 2008 2009 1H2010 2007 2008 2009 Net Debt Net Debt-
Slide 58: Amer Group: Significant Intrinsic Value
Amer Group: Significant Intrinsic Value y Hotels and malls are built by the Company and are reflected on its balance sheet at cost - Market value of these assets, according to DTZ’s valuation, is higher than their cost y If the Company had sold these assets, built over the past 5 years, the earnings
Slide 59: 10. Wrap-up and Conclusion
10. Wrap-up and Conclusion Private and Confidential: For personal use only and not for distribution or copying
Slide 60: Amer Group: Master of Local Brands
Amer Group: Master of Local Brands Businesses not included in DTZ valuation Real Estate Contracting Education New Ventures Malls Restaurants Hotels onal 4 operatio operational Affiliated with ational 4 opera 3o 6 under construction 4 under construction construction CSR esign 4 under c 1 underr desig
Slide 61: Amer Group
Amer Group Before After Before IPO ? After IPO 60 Private and Confidential: For personal use only and not for distribution or copying
Slide 62: Amer Group: Fulfilling Visions Q&A
Amer Group: Fulfilling Visions Q&A 61 Private and Confidential: For personal use only and not for distribution or copying
Slide 63: Appendix
Appendix Private and Confidential: For personal use only and not for distribution or copying
Slide 64: A. Amer Group Overview
A. Amer Group Overview Private and Confidential: For personal use only and not for distribution or copying
Slide 65: Amer Group: Business Units
Amer Group: Business Units Porto World Developments Restaurants New Ventures • Mixed-use holiday resort development targeting middle / y 45(1) casual dining y Joint upper income families primarily in Egypt and MENA region estau a ts in Egypt restaurants gypt e tu es, sta ventures, standalone, da o e
Slide 66: Our Trip / Key Milestones
Our Trip / Key Milestones Real Estate Development 2005 2006 2007 2008 2010 Porto World y Opening of first y Launch of salesy Launch of y Launch of y Sold 95% of units of y 4 operational Porto: Porto at Porto Marina sales at Porto sales at Porto South Beach developments Marina (first Golf & Islands S
Slide 67: B. Financial Statements
B. Financial Statements Private and Confidential: For personal use only and not for distribution or copying
Slide 68: Consolidated Income Statement
Consolidated Income Statement All figures in EGP million 2007 2008 2009 1H2009 1H2010 Revenue* 445.2 937.9 1,491.9 643.8 653.7 COGS (238.0) (483.9) (838.1) (373.7) (332.7) Gross Profit 207.1 454.0 653.8 270.1 321.0 Selling and Marketing Expenses (23.4) (90.4) (65.7) (23.0) (26.1) General & Administr
Slide 69: Consolidated Balance Sheet
Consolidated Balance Sheet All figures in EGP million 2007 2008 2009 1H 2010 All figures in EGP million 2007 2008 2009 1H 2010 Current Assets Current Liabilities Development properties 846.9 1,727.9 1,862.6 2,080.2 Provisions 13 7 13.7 31 0 31.0 53 5.3 48 4.8 Inventory 18.3 20.5 24.1 50.5 Bank overd
Slide 70: C. Porto World Statistics
C. Porto World Statistics Private and Confidential: For personal use only and not for distribution or copying
Slide 71: Location of Existing and Planned Porto World Developments
Location of Existing and Planned Porto World Developments 1 2 3 4 Sellable Area 371,500 S ll bl Area Sellable A 116 310 116,310 S ll bl Area Sellable A 2 948 220 2,948,220 S ll bl Area Sellable A 34 048 34,048 Tartous No. of Units 3,715 No. of Units 931 No. of Units 35,120 No. of Units 416 Syria Mal
Slide 72: Real Estate Portfolio Summary (Operational)
Real Estate Portfolio Summary (Operational) Project Porto Marina Porto Marina Golf & Islands Porto Sokhna Golf Porto Sokhna Location El Alamein, Egypt El Alamein, Egypt Ain Sokhna, Egypt Ain Sokhna, Egypt Primary Use Mixed-use resort Mixed-use resort Mixed-use resort Mixed-use resort T t l Approxima
Slide 73: Real Estate Portfolio Summary (Planned)
Real Estate Portfolio Summary (Planned) Project Porto Cairo Porto Tartous Porto South Beach Porto Residence Porto Pyramids Porto Matrouh Location New Cairo, Egypt Tartous, Syria Ain Sokhna, Egypt El Alamein, Egypt Giza, Egypt Matrouh, Egypt Mixed-use resort Primary Use Mixed-use Mixed use residentia
Slide 74: D. Meeting Point Statistics
D. Meeting Point Statistics Private and Confidential: For personal use only and not for distribution or copying
Slide 75: Shopping Malls Portfolio Summary (Operational)
Shopping Malls Portfolio Summary (Operational) Meeting Point Porto Marina Project Meeting Point Porto Marina Meeting Point Porto Sokhna Meeting Point New Cairo (1) Golf & Islands Location El Alamein, Egypt El Alamein, Egypt Ain Sokhna, Egypt New Cairo, Egypt Net Approximate Leasable Area – indoor (s
Slide 76: Shopping Malls Portfolio Summary (Planned)
Shopping Malls Portfolio Summary (Planned) Meeting Point Golf Meeting Point Golf Meeting Point Porto Meeting Point Porto Meeting Point Porto Meeting Point Porto Project Porto Sokhna - Porto Sokhna - Old Tartous (1) Cairo Piazza (2) South Beach Residence Waterfront Town Location Ain Sokhna, Egypt gyp
Amer Group Holding Company S.A.E. — IPO Roadshow (November 2010) on 6ix