Egyptian For Tourism Resorts · EGX:EGTS
Egyptian For Tourism Resorts — Egyptian Resorts Company (ERC) — FY2018 Earnings Presentation
34 slides from Egyptian For Tourism Resorts's earnings presentation, May 2019
Slide 1: Investor Presentation May 2019
INVESTOR PRESENTATION May 2019
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 to or purchase securities of any kind and neither this document nor anything contained herein sha
Slide 3: The Growth Story
The Growth Story
Slide 4: An Integrated Developer With Clear Growth Strategies
An Integrated Developer With Clear Growth Strategies ERC is a fully-integrated real estate developer, covering the entire value chain including real estate, master and infrastructure development, facility and community management • Expansion of land bank to new • Focus on the development of geograph
Slide 5: Key Operational Developments
Key Operational Developments Collections Hospitality Residential and Land Bank Community and Retail • Newly formed credit and collections • Integrating serviced apartments into all • Launched Bay Village with more than 100 • Launched a shuttle bus service committee to oversee implementation of of ER
Slide 6: Strength Through the Years
Strength Through the Years Contracted Unit Sales | EGP mn Unit Collections | EGP mn 14 59 107 276 408 390 877 1,898 1,628 583 575 40 117 199 213 58 73 2016 2017 2018 2019F 2020F 2021F 2017 2018 2019F 2020F 2021F Contracted Sales Contracted Units ERC has exhibited solid growth in contracted sales ….
Slide 7: Delivering on Restructuring Strategy Across Business Lines
Delivering on Restructuring Strategy Across Business Lines Real Estate Development Land Sales and Development Backlog| EGP mn Land Sales | EGP mn 172 3,948 2,227 684 61 201 0 2017 2018 2019F 2020F 2021F 2017 2018 Land sales were halted in 2018 order to restrict supply to enhance Backlog doubled betw
Slide 8: Tawaya – Key Highlights
Tawaya – Key Highlights Contracted Unit Sales | EGP mn Recognized Revenue| EGP mn 6 50 50 26 95 76 76 58 38 - - 23 2018 2019F 2020F 2021F Contracted Sales Delivered Units 2018 2019F 2020F 2021F With 79% of Tawaya now sold, ERC expects contracted unit sales to ramp The rate of revenue recognitions wi
Slide 9: Bay Village – Key Highlights
Bay Village – Key Highlights Contracted Unit Sales | EGP mn Recognized Revenue| EGP mn - - - 62 72 324 99 121 - - - - - 2018 2019F 2020F 2021F 2017 2018 2019F 2020F 2021F Contracted Sales Delivered Units After its successful launch in October 2018, unit sales are expected to Which in turn will trans
Slide 10: Jamaran – Key Highlights
Jamaran – Key Highlights Contracted Unit Sales | EGP mn Recognized Revenue| EGP mn 9 3 - - 36 42 19 16 - - 2018 2019F 2020F 2021F - - Contracted Sales Delivered Units 2018 2019F 2020F 2021F Intensified marketing saw ERC speed up sales at its Jamaran With its recognized revenues expected to be fully
Slide 11: Supported By Strong Macroeconomic Recovery
Supported By Strong Macroeconomic Recovery Accelerating Real GDP Growth Net Foreign Direct Investment on the Rise| USD Billion Weaker growth due to The major economic reform plan which began in Growth in FDI is expected to political instability November 2016 is already bearing fruit exceed pre-revol
Slide 12: Supported by Favorable Tourism Market Trends
Supported by Favorable Tourism Market Trends Continued Recovery in the Tourism Industry Profile of Tourists Europeans represent the majority of tourists Tourist Arrivals | Millions to Egypt, accounting for c. 60% of the total number of arrivals: 9.9 14.59% 9.5 11.5 11.3 12 9.3 9.8 8.3 2.93% 5.4 3.3%
Slide 13: Projects Portfolio: Bay Village
Projects Portfolio: Bay Village October 2018 202 Units 2023 40-140 Sqm 18,518 Sqm Sales window opened # of units Expected full project Unit sizes Sellable BUA completion Investor Presentation May-2019| www.erc-egypt.com | www.sahlhasheesh.com | Call Center 16974 | facebook.com/sahlhasheesh | instagr
Slide 14: Projects Portfolio: Tawaya
Projects Portfolio: Tawaya October 2015 168 Units 2020 60-294 Sqm 18,017 Sqm Sales window opened # of units (including roofs) Expected full project Unit sizes Sellable BUA completion Investor Presentation May-2019| www.erc-egypt.com | www.sahlhasheesh.com | Call Center 16974 | facebook.com/sahlhashe
Slide 15: Projects Portfolio: Jamaran
Projects Portfolio: Jamaran 36 Units 2020 318 - 380 Sqm 10,880 Sqm # of units Expected full project Unit sizes Residential BUA completion Investor Presentation May-2019| www.erc-egypt.com | www.sahlhasheesh.com | Call Center 16974 | facebook.com/sahlhasheesh | instagram.com/sahlhasheesheg | cs@sahlh
Slide 16: Water & Irrigation
Water & Irrigation Management of ERC’s desalination plant and water treatment equipment is subcontracted for a fixed fee, while water is sold at market rates Water & Irrigation Sewage Treatment 14,000 m3 / day desalination plant 7,500 m3 / day waste water treatment facility Water network of 31,283m
Slide 17: Electricity
Electricity ERC is a licensed electricity generator and distributor with an electricity sub-station in the design phase Key Facts Operational Update 20 MVA capacity A contract was signed with Canal Company to supply 20 MVA of electricity 5 electrical networks (128,478 m) were established to serve ph
Slide 18: Communication
Communication ERC’s IT equipment and fiber optic networks support high-speed internet, video on demand, internet protocol television among other services Key Facts Key Facts (Continued) 13,000 m fiber optic network iBAHN, leading IPTV, Video on Demand (VOD) service provider, serving all projects 4,5
Slide 19: Facilities Management
Facilities Management ERC provides a comprehensive range of maintenance and facility management services Facility Management Capabilities Community Brand & Public Area & Beach Quality & Design Security Waste Management Cleaning Reputation Maintenance Control Management Community management controls
Slide 20: Sahl Hasheesh: ERC’s Flagship Master Development
Sahl Hasheesh: ERC’s Flagship Master Development
Slide 21: Sahl Hasheesh: ERC’s Flagship Master Development
Sahl Hasheesh: ERC’s Flagship Master Development Sahl Hasheesh is a unique, purpose-built Red Sea destination 18 km south of Hurghada Hurghada International Airport and approximately 470 km from Cairo. The year- round development is situated on a bay long renowned as a world-class diving and seaside
Slide 22: Sahl Hasheesh By Numbers
Sahl Hasheesh By Numbers Phases I and II of Sahl Hasheesh are currently home to around 3,600 hotel rooms and suites managed by brands including Premier Le Rêve, Sunrise Romance, Pyramisa, Tropitel, Old Palace and Baron, and Azzurra Boutique Hotel in addition to almost 2,400 residential units. Five o
Slide 23: Events
Events Events in 2018 Sahl Hasheesh hosted the bi-annual triathlon with Trifactory during 2018, an event which has been held at Sahl Hasheesh every spring and winter over the last four years, with more than 1000 athletes from Egypt and across the world competing in a variety of exciting races, and t
Slide 24: Community Development
Community Development Community Development in 2018 Sahl Hasheesh and Uber Egypt launched a collaboration on the Tuk Tuk service where residents and guests can use Uber to hail rides within Sahl Hasheesh Investor Presentation May-2019| www.erc-egypt.com | www.sahlhasheesh.com | Call Center 16974 | f
Slide 25: Community Development
Community Development We are continuing to expand our digital marketing footprint. Our social media following has grown considerably over the past year and we are preparing for the revamp of our community website and are adding to our online media channels. Internationally, Sahl Hasheesh is continui
Slide 26: Financial Performance
Financial Performance
Slide 27: Consolidated Income Statement
Consolidated Income Statement EGP FY-2017 FY-2018 Change • The decrease in total revenue reflects the company’s Sales 1 decision to halt land sales during 2018 as part of its strategy Operating Revenue 206,593,285 60,193,554 -71% to expand its business model beyond master development and increasingl
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet EGP 31/12/2017 31/12/2018 Fixed Assets (net) 103,174,397 106,068,048 In terms of long-term assets as at FY18: Real Estate Investments 148,040,655 134,887,436 1 • A decline in long-term accounts and notes receivable due to Projects in Progress 12,532,922 12,883,727 increasi
Slide 29: Corporate Governance
Corporate Governance ERC believes that a robust, proactive approach to corporate governance is vital to the interests of both the individual company — boosting investor confidence by protecting the value of their shares — and the business community by providing a regulatory framework for healthy com
Slide 30: Investor Information – Shareholders & Analyst Coverage
Investor Information – Shareholders & Analyst Coverage EGTS.CA Analyst Coverage Name: Mohamed Marei Authorized Capital EGP 2,000,000,000 Email: mmarei@egy.primegroup.org Paid in Capital EGP 1,050,000,000 Name: Mai Attia Email: maiattia@efg-hermes.com Issued Shares 1,050,000,000 Shares Name: Omar El-
Slide 31: Investor Information-Stock Information
Investor Information-Stock Information Egyptian Resorts Co SAE (EGTS) 30/04/2019 Egyptian Resorts Co SAE – Stock Performance Chart Share Price EGP 1.985 Market Cap EGP 2,084,250,000 MPC raises Ahly Capital sells Soliman Family CBE cuts YTD Price High/Low EGP 2.13/1.75 rates by 200 4.5% of ERC shares
Slide 32: Appendix
Appendix Investor Presentation May-2019 | www.sahlhasheesh.com | Call Center 16974 | facebook.com/sahlhasheesh | instagram.com/sahlhasheesheg | cs@sahlhasheesh.com 32
Slide 33: ERC’s History & Milestones
ERC’s History & Milestones 1995 1996 – 1997 1998 1999 - 2003 2004 - 2007 2008 - 2009 Land acquired for first Incorporation, concept First plot sold • Completed EGX listing in • Sales driven by • Launch of 2 hotels: Old Palace project – “Sahl Hasheesh” – development and master Feb. 1999 relationship
Slide 34: ERC’s History & Milestones
ERC’s History & Milestones 2010 - 2013 2014 2015 2016-2018 2019 onwards • New management moves • Launch of 2 hotels: Premier Romance and Tropitel • Launch of Baron Hotel • ERC earns substantial forward with internal • Plans to launch multiple • Launch of 3 residential projects: Ocean Breeze, Azzurra
Egyptian Resorts Company (ERC) — FY2018 Earnings Presentation on 6ix