palm hills developments | january 2015 · 2019. 4. 15. · palm parks 470 418 259 159 52 golf views...

Palm Hills Developments | January 2015

Investor Presentation

April 2019

Market Overview

1

Palm Hills Developments | 2019 | Investor Presentation

Housing Units Supply Evolution (‘000)

3

MARKET OVERVIEW

Egypt’s Unique Dynamics and Urbanization Trends

Source: CAPMAS, FRA, and Jones Lang LaSalle Cairo Real Estate Market Overview 2Q20171 Assumed by PHD

♦ Demand is estimated in

the upper middle to high

end market segments to

be 7% - 9% of annual

marriages or 70 - 90k

units per annum

♦ Supply as reported by

CAPMAS is around 35k

units for the same

segments

♦ Market gap estimated at

35 - 55k units (primary

demand) in addition to

those moving from Cairo

to the suburbs estimated

at another 30 - 40k units

0.0

146

96

2510

Low Economic Middle Upper Middle High End

196 184 177

136 146

352

264277

2010 2011 2012 2013 2014 2015 2016 2017

Upper-mid/Luxury

Housing

Middle

Housing

Low Cost

Housing

Targeting Households with annual

income of

USD65 - 125K


income of

USD10 - 25K


income of

USD1.7 - 2.5K

Middle/Upper

Housing1


income of

USD25 - 65K

19.4%18.3%

9.1%

1.6% 1.2%0.2%

UAE Morocco Tunisia SaudiArabia

Qatar Egypt

2017 Housing Units Supply Breakdown by Class (‘000)

Potential Opportunities 2015 Mortgage Penetration Rate (%)

Palm Hills Developments | 2019 | Investor Presentation 4

MARKET OVERVIEW

…And is Expected to Maintain Its Growth Profile Over the Foreseeable Future

Source: IMF, Euro-monitor and Bloomberg

2018E - 2023E CAGR

2,4803,340

3,9884,674

5,3446,034

6,8107,687

2016 2017 2018 2019 2020 2021 2022 2023

Lending Rates (%) Private Consumption (EGP bn)

15.75%

19.75%

16.75%

13.25%11.25%11.25% 11.25%11.25%

2016 2017 2018 2019 2020 2021 2022 2023

2,267

3,069 3,674

4,313 4,929

5,570 6,291

7,106

2016 2017 2018 2019 2020 2021 2022 2023

A portion of the freed up liquidity resulting from the

20% yield CDs maturing in 2018 will spill over into the

real estate sector

…Underpinned by Rising Prosperity

Disposable Income (EGP bn)

Growing Population (mn) High Urbanization Rates (%)

9092

9496

98100

102104

2016 2017 2018 2019 2020 2021 2022 2023

986

999

1,012 1,021

1,030 1,038

1,048

1,061

2016 2017 2018 2019 2020 2021 2022 2023

44.4%44.7%

44.9%45.2%

45.5%

45.9%

46.2%

46.6%

2016 2017 2018 2019 2020 2021 2022 2023

Egypt Boasts an Attractive Demographic Profile…

Increasing Marriages (‘000)

♦ Egyptians are expecting a

substantial influx of

liquidity due to the

following:

▪ The maturity of the

20% 18-month CDs

which have attracted

more than EGP840 bn

▪ The maturity of the

Suez Canal CDs which

have attracted more

than EGP64 bn

▪ Lowering interest rates

as inflation continues to

ease

▪ In addition to the post

revolution baby boom,

the long term

underlying

demographics of Egypt

will continue to support

the Egyptian real estate

sector and ensure a

sustainable and stable

stream of demand for

housing


19,600

12,400 16,044

29,086

42,074

52,684

64,996

90,707

105,287

119,502

2010 2011 2012 2013 2014 2015 2016 2017 2018F 2019F

MARKET OVERVIEW

Resilient Real Estate Market Expected to Continue in FY2019

Contracted Sales Evolution (EGP mn)1

▪ January 25

Revolution

▪ President

Morsi

assumes

power

▪ Anti-Morsi

protests begin

which led to

Morsi being

ousted

▪ Sisi elected

as president

▪ Sinai

explosion

▪ Egypt Economic

Development

Conference (“EEDC”)

launched

▪ New Suez Canal

launched

▪ Russian plane crash▪ Subsidy cuts

▪ VAT system

announced

▪ EGP flotation

▪ Egypt plane crash

▪ Policy rates hikes

▪ Headline CPI

reached its

highest level since

2011 in Jul 2017

Source: Companies filings, and research reports 1 Market contracted sales are calculated as the sum of contracted sales of PHD, MNHD, Emaar Misr, SODIC, TMG and the

remaining players are assumed to contribute to 50% of the market

♦ The Egyptian real estate

market remained resilient

despite the political turmoil

and economic challenges

♦ During times of high inflation

and currency depreciation,

investors shifted towards real

estate investments as a hedge

to protect the value of their

wealth

♦ The Egyptian real estate sector

is expected to be on a fast-

track growth trajectory,

spurred by:

▪ Robust economic growth

on the back of economic

and political reforms

▪ The government

encouraging expansion

into surrounding areas,

especially to the east

and west of the city

▪ Rising purchasing power

and accelerated

household formation,

especially for the middle

class, as economic

growth has accelerated

2010 – 2017 CAGR2017 – 2019 CAGR

PHD in Brief

2


Raw Land

Project NameLand Area

(000 sqm)

Residential

Land Area (000

sqm)

Developed

Residential Land

(000 sqm)

Area Under

Development

(000 sqm)

Commercial Area

(000 sqm)

Botanica 7,138 - - - -

Riyadh, KSA 5,000 - - - -

Red Sea 92 - - - -

Subtotal 12,230 - - - -

Total Land Bank 40,657 25,889 8,917 5,695 2,524

Recently launched projects.

Raw Land Strategy

▪ Botanica land plot: PHD’s Management learned about the reallocation and rezoning of some state-

owned land on Cairo Alexandria highway to the New Urban Communities Authority (“NUCA”) in

accordance with the recent presidential decrees, which will positively impact Botanica’s allowable

built up area and valuation as part of the New Sphinx City, given Botanica’s proximity to Sphinx

International Airport. The Company awaits official communication from NUCA in that regards.

▪ Saudi Arabia land plot: Held for sale.

▪ The Company sold one of its non-core land plots (Galala plot in the North Coast) spreading 487k

sqm to a non-listed property developer, for a total consideration of EGP375 mn including capital

gain of EGP218 mn during 4Q2017.

Completed Projects

Project NameLand Area (000

sqm)

Residential Land

Area (000 sqm)

Developed

Residential Area

(000 sqm)

Area Under

Development

(000 sqm)

Commercial Area

(000 sqm)

Phase 1-5 &

Cascade, Bamboo,

Goldan Palm

1,659 1,542 1,542 - 98

Bamboo Extension 168 168 168 - -

The Village 105 105 105 - -

Village Avenue 35 35 35 - -

Village Gate 146 131 101 10 16

CASA 294 294 294 - -

Village Garden

Katameya297 285 267 - 13

Palm Hills Katameya

Extension275 275 173 37 -

Hacienda White 1 216 199 199 0 17

Subtotal 3,195 3,034 2,884 47 144

Projects Under Development/Launched Projects

Project NameLand Area

(000 sqm)

Residential Land

Area (000 sqm)

Developed

Residential Area

(000 sqm)

Area Under

Development

(000 sqm)

Commercial Area

(000 sqm)

Palm Parks 470 418 259 159 52

Golf Views 2,061 2,049 1,798 251 12

Golf Extension 1,012 958 958 - 54

Woodville 289 251 - 251 38

Palm Valley 238 206 - 206 11

Palm Hills Katameya 928 928 904 - 24

Palm Hills Katameya

Extension "Phase 2" 159 159 - 159 -

Palm Hills New Cairo 2,100 1,680 - 2,100 420

Capital Gardens 434 434 - 434 -

The Crown 798 734 - 734 64

Hacienda West 585 585 - 585 -

Badya(2) 12,600 11,088 - - 1,512

Alexandria(3) 567 482 - 85

Hacienda Bay 2,519 2,411 1,911 500 108

Hacienda White 2 472 472 203 269 -

Subtotal 25,232 22,855 6,033 5,648 2,380

1 Land Bank data as at December 31, 2018, which excludes 205 feddan in West Cairo. Management

expects to conclude the co-development agreement during 1H2019.2 PHD signed the co-development agreement with NUCA on September 11, 20173 Palm Hills Alexandria project’s soft launch was held mid December 2018

PHD IN BRIEF

The Largest Land Bank1 in Egypt of 41 mn sqm


♦ PHD offers secondary homes by the

Mediterranean sea in 4 projects in the North

Coast, catering to upper middle to upper class

♦ The net cumulative number of secondary homes

sold reached 3,005 units as at end of 2018

♦ The Company launched Hacienda West in June

2017 and completed Hacienda White 1 and

handed over a cumulative number of 2,394

units in Hacienda White 1, 2 and Hacienda

Bay as at end of 2018

♦ Customers are mostly households

♦ PHD offers first homes in 24 projects in West

and East Cairo since 1997, catering to

various income brackets starting from middle

to upper class

♦ The Company completed 12 projects and

delivered 4,968 units in such projects as at

end of 2018

8

PHD IN BRIEF

Boasting a Well Diversified and Balanced Project Portfolio

…As Well as Strong Recurring Revenue Streams

First Homes

Secondary

Homes

Commercial♦ PHD owns approx. 2.5 mn sqm of land allocated

for commercial projects

♦ The commercial portfolio includes 3 operating

hotels managed by Accor

♦ The Company recently started to unlock and

monetize value from non-core commercial assets

with the launch of Palm Valley Mall and Palm

Central Office Building in West Cairo and VGK

Mall in East Cairo

♦ PHD plans to develop PHNC commercial

component with a recreational club, retail &

administrative complex, and an international

school

10%

PHD mitigates residential real estate earnings volatility through

commercial real estate yielding assets, allocating 2.5 mn sqm of

its undeveloped land bank for commercial projects

% of 2018 Net Profit

A Well Diversified Land Bank…

…With 33% Currently Launched / Under

Development

PHD Commands a Geographically Diversified and Balanced Project Portfolio…

% of 2022 Net Profit

20%Target

West Cairo48%

Red Sea & Other Locations18%

KSA12%

East Cairo11%

North Coast9%

Alexandria1%

Launched Projects/Projects

Under Development

33%

Raw Land30%

Projects to be

Launched29%

Completed Projects

8%

Project Location Status

Mercure Ismailia Operating

Novotel October West Cairo Operating

Novotel Sharm El Sheikh South Sinai Operating

Palm Club West Cairo Operating

Palm Central West Cairo Operating

The Lane West Cairo Under Development

Village Garden

Katameya MallEast Cairo Under Development

Village Gate East Cairo Under Development

Golf View West Cairo Under Development

Palm Hills New Cairo

CommercialEast Cairo Under Development

Badya Commercial West Cairo Under Development


4.8 6.5 7.4

10.4 14.4

19.0

2.3 3.0 3.5 5.4

8.1 9.4

4.2

6.8 8.3 8.5 12.0 13.5

2.0 2.6 2.7 3.2 4.1

4.1

2013 2014 2015 2016 2017 2,018

Apartments Standalone Units Land Construction Cost

9

PHD boasts a stellar track record of project deliveries and owns the largest land bank among

Egyptian real estate players

29 Projects Portfolio

61

Co-Development

Projects

New Sales have been steadily growing at a 2013 -2018 CAGR of 61%.

Moreover, PHD was able to increase its selling prices for apartments,

standalone units, and land at a 2013-2018 CAGR of 32%, 26%, 33%

respectively

13Projects Completed

20051997-2004 2006 2007 2008 2009 2010 2013 2014 2015 2016 2017 2018

1 2205 Feddan

Project

Growing New Sales (EGP bn)

9,643

Cum. Delivered Units as

at end of 2018

15,156

Cum. Net Units Sold as

at end of 2018

PHD mitigates the cyclical nature of residential real estate through its

recurring income portfolio, allocating 2.5 mn sqm of undeveloped land bank

to commercial projects

10%

% of 2018 Net Profit % of 2022 Net Profit

20%Target

A Diversified Commercial Assets Portfolio

Project Mercure Novotel SharmNovotel West

Cairo

Palm Club

October

PHNC

Commercial2

Operational Year 1980 1996 2005 2005 2020F

PHD Ownership 55% 50% 80% 100% Varies by project

Escalating Selling Prices

(000’s EGP/sqm)

PHD launched an expedited construction plan in 2013, aided by equity and debt raising, helping it

increase its construction spending, reflecting positively on unit deliveries

Exceeded the annual

target of 1,500 units

PHD IN BRIEF

Successfully Delivering on our Corporate Strategy

1 Including the awarded 205 feddan land plot

2 PHNC Commercial stands for Palm Hills New Cairo commercial component. PHD expects to own 100% of PHNC club, 60% of

the retail and administrative complex and 50% of PHNC school

3 Excluding Badya’s selling prices

3

40,657

3,195

13,485 11,747

7,230

5,000

CompletedProjects

Projects UnderDevelopment

Projects to beLaunched

Raw Land Total

Egypt’s Largest Land Bank (‘000 sqm)

Saudi Arabia land plot - currently earmarked for sale

Construction Spending (Earned Value EGP mn)

Handover (Units)

1,159 1,868 2,005 2,148

1,550

2014 2015 2016 2017 2018

981 1,573

2,049 1,781 1,541

2014 2015 2016 2017 2018

1.2

3.9

6.3

8.5

10.512.5

2013 2014 2015 2016 2017 2018


PHD IN BRIEF

Spearheaded by a Seasoned Management Team

Board of Directors Executive Management

Board Member Position

Yasseen Mansour Chairman & Group CEO

Mohamed Mansour Vice Chairman

Tarek Abdel Rahman Non-executive Board Member

Mohamed Ahmed Sultan Chief Executive Officer

Ali Thabet Chief Financial Officer

Yasser El Mallawany Non-executive Board Member

Youssef M. Medhat El Far Non-executive Board Member

Hassan Darwish Non-executive Board Member

PHD’s management is characterized by…

✓ Diverse experience in their respective fields

✓ Solid industry knowledge

✓ Strategic approach in decision making

✓ Hands on management and strong involvement in running of

the business

✓ Leadership capabilities and guidance of employees

Yasseen Mansour Chairman & Group CEO

Mohamed SultanChief Executive Officer

Dr. Azza El Bendary

Chief HR&A Officer

Mr. Yasseen Mansour serves as Chairman of the Board of Directors and Group CEO of

PHD, and has guided the Company from a single-project entity into a leading real

estate player in Egypt. Mansour began his career in 1986 at Mansour Motors Group,

and has since lead the companies he owns and presides over to growth

Eng. Mohamed Sultan joined PHD in 2008 as VP Development – North Coast and

Alexandria, and was appointed CEO in 2011. Sultan began his career at OBALCO,

working with the US Army Corp of Engineers. In 1986, Sultan founded the Engineering

Group for Urban Development, of which he is President. Sultan holds a bachelor’s

degree in Architectural Engineering from Al Azhar University

Mona El Helw

Chief Commercial

Officer

Ahmed Atalla

SVP Development

West Cairo

Amr Mahfouz

VP Development

East Cairo

Ali ThabetChief Financial Officer

Mr. Ali Thabet joined PHD in 1997 as VP for Finance, Accounting and Administration,

and was promoted to CFO in 2011. Previously, Thabet ran his own office for

Chartered Accounting and Financial Management Services. Thabet holds a B.Sc. of

Commerce from Ain Shams University and received a Master in International Business

Administration from ESLSCA Business School


PHD IN BRIEF

That Was Able to Replenish the Company’s Land Bank by Entering into Co-Development

Agreements…

11

PHNC Capital Gardens Hacienda West Alexandria Badya 205 feddan

Date March 2015 July 2015 February 2016 February 2017 July 2017 March 2019

Land Area

(Sqm)2,100k 434k 585k 769k 12,600k 861k

Location East Cairo East Cairo North Coast Alexandria West Cairo West Cairo

Seller/ Partner

and Terms

▪ A Co-Development project

with NUCA

▪ PHD will be entitled to 72%

revenue share

▪ NUCA will be entitled to cash

revenue share of 28.4%, in

addition to an in-kind

payment of BUA of 150k sqm

▪ NUCA will be entitled to a

minimum guarantee of EGP10

bn payable over 13 years

▪ PHD is responsible for the

development and

management of the project

▪ A Co-Development

agreement with Madinet Nasr

Housing and Development

(“MNHD”) spanning 100

feddan in East Cairo in its

Sarai project

▪ PHD will be entitled to 64%

revenue share

▪ PHD will be responsible for

all construction and

development related costs

while MNHD will contribute

the land and accompanying

infrastructure


agreement with a private

land owner in the North Coast

▪ PHD will be entitled to a

revenue share of 80%, with

partner holding the remaining

20%, at a minimum revenue

guarantee of EGP200 mn

over 10 years


all construction, development,

internal infrastructure,

marketing and sales activities,

while the owner will be

contributing the land


agreement with a government

agency with the purpose of

co-developing on revenue

sharing basis 135 feddan in

Alexandria

▪ PHD will be entitled to a

revenue share of 65%, with

the partner holding the

remaining 35%


all construction, development,

infrastructure, marketing and

sales activities of the project


agreement between PHD and

NUCA


all construction and

development related costs

▪ NUCA will be contributing the

land bank in addition to all

the external associated

infrastructure

▪ NUCA will be entitled to a

cash revenue share of 25.3%

in addition to an in-kind

payment of up to 371k sqm

of residential BUA and 50k

sqm of commercial BUA


agreement with NUCA

through Palm Alamein, which

is 40% owned by PHD and

60% by Arkan Developers

▪ NUCA will be entitled to an

fixed annual cash portion of

up to EGP10 billion payable

over 12 years (NPV of

EGP2.5 billion at discount

rate of 16%) and will also

receive an annual revenue

share of 12.5% from the

project’s proceeds of EGP13

billion (NPV EGP3.5 billion)

payable over 10.5 years,

starting after 1.5 years from

signing the agreement, plus

an in-kind portion of BUA of

95.5k sqm (33k sqm

residential and 62.5k sqm of

commercial space)

Launch Date 4Q2016 4Q2015 2Q2017 1Q2019 2Q2018 4Q2019E

Project

Highlights

▪ Project includes 4,588 units

with a total BUA of 1.03 mn

sqm

▪ Sales since launch EGP5.9 bn

▪ 2,513 units with a total BUA

of 494,000 sqm

▪ Integrated residential

community over four phases

up until 2024

▪ Sales since launch c.EGP2 bn

▪ 812 units, with a total BUA

of 145,000 sqm

▪ Include community retail

facilities

▪ Sales since launch EGP1.2

bn

▪ 3,225 mixed use residential

units with a total BUA of

575,000 sqm and 102,213

sellable land area

▪ Integrated community with

complete residential complex,

complemented by full

spectrum of commercial

facilities

▪ 34,561 residential units with

a total BUA of 6.4 mn sqm

▪ Sales since launch EGP4.8 bn

▪ 3,300 units with a total BUA

of 1.03 mn sqm

▪ Integrated residential &

commercial community


426

239 353

490

639 806 812

2013 2014 2015 2016 2017 2018

1,163

3,936

6,332

8,467

10,539

12,463

2013 2014 2015 2016 2017 2018

959

2,106

3,642

5,631

6,604

7,422

2013 2014 2015 2016 2017 2018

541

981

1,573

2,049

1,781

1,555

2013 2014 2015 2016 2017 2018

…And Improved Profitability…Which in Turn, Resulted in Increasing Recognized Revenues…

New Sales (EGP mn) Construction Spending (EGP mn)

A Surge in New Sales … …And a Pick-up in Construction Activity…

Revenue (EGP mn) Net Profit (EGP mn)

In 2015, the Company sold two land plots

located in Alexandria and North Coast

2013-2018 CAGR

PHD IN BRIEF

Successfully Concluded a Turnaround and Growth Story

12

♦ The Company’s operational

turnaround translated into

robust growth in new sales,

construction outlay and

revenue, reporting 2013-2018

CAGRs of 50% in Revenue.

♦ New Sales (Residential and

Commercial) amounted to

EGP12.5 bn, a growth of 18%

YoY. Growth was largely

driven by strong uptake of

launched units in Badya

(EGP4.8 bn/1,935 units sold),

demand for residential units in

Palm Hills New Cairo, and the

remarkable 168% YoY growth

in commercial sales to record

EGP1.8 bn.

♦ PHD has spent c.EGP8.5 bn on

construction activity from 2013

to 2018, capitalizing on the

rights issues and bank

borrowings, which accelerated

projects delivery and

translated into superior

profitability where the

Company registered a net

profit 2013-2018 CAGR of

28%.

Key Financials

3


New Sales1 (EGP mn) PHD’s Average Selling Prices & Construction Cost (EGP/sqm)

FY2018 New Sales1 (Percentage by Location) Highlights

KEY FINANCIALS

18% YoY growth in New Sales to EGP12.5 bn driven by Badya, PHNC, and strong uptake of commercial offerings

14(1) New Sales represent Gross New Sales including residential and commercial segments.

6,332

8,467

10,539

12,463

2,140 1,894 2,136 3,102

2015 2016 2017 2018

59%

27%

4%

West Cairo EGP7.4 bn

East Cairo EGP3.4 bn

North Coast EGP1.6 bn

New Sales (Residential and Commercial) amounted to EGP12.5 bn, a growth of 18% YoY with 3,102 units sold, compared to

2,136 units during FY2017. Growth in New Sales was led by the successful launch of Badya, continued uptake of residential

units in Palm Hills New Cairo, complemented by the remarkable 168% YoY growth in commercial sales to EGP1.8 bn. During the

year, the Company sold PK2 Mall, clinics in Hale Town, and retail space in Hacienda Bay’s Lake Yard, Golf Extension, VGK

Mall, and The Lane Mall.

During the year, commercial sales witnessed an unprecedented growth of 168% YoY to record EGP1.8 bn, driven by the sale of

PK2 Mall in East Cairo, retail outlets in Hacienda Bay’s Lake Yard, in addition to units in VGK and The Lane Malls, as well as

sales of retail space in Golf Extension and clinics (Hale Town) in Golf Views.

Total number of units sold (residential and commercial) increased 45% YoY to 3,102 units (2,136 units in FY2017), comprising

2,977 residential and 125 commercial units.

The Company handed over 1,541 units, surpassing its previously announced target of 1,500 units in FY2018. The majority of

handed overs units were in Palm Parks, Golf Views, Golf Extension, Hacienda Bay, and Hacienda White 2. Notably, PHD started

delivering units in Palm Valley and The Lane Mall in West Cairo.

In 4Q2018, New Sales grew 9% YoY to EGP2.6 bn. Residential sales increased 3% YoY to EGP2.3 bn, while commercial sales

witnessed a remarkable 95% growth YoY reaching EGP303 mn.

4,820

6,500

7,350

10,387

14,391

19,000

4,175

6,793

8,337 8,527

11,984 13,483

2,339

2,950 3,500

5,384

8,110 9,440

2,024 2,631 2,707 3,188 4,100

4,100

2013 2014 2015 2016 2017 2018

Apartments (BUA) Land Standalone Units (BUA) Construction Cost


425 654

1,015 1,347

1,624

20%18% 18%

20%22%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

-

1,000

2,000

3,000

4,000

5,000

2014 2015 2016 2017 2018

2,106

3,642

5,631

6,604

7,422

2014 2015 2016 2017 2018

705

1,150

1,679

2,103

2,587

33%32%

30%32%

35%

-20%

-10%

0%

10%

20%

30%

40%

-

1,000

2,000

3,000

4,000

5,000

2014 2015 2016 2017 2018

Revenue (EGP mn) Gross Profit (EGP mn) EBITDA (EGP mn)

KEY FINANCIALS

Solid P&L Growth coupled with Improvements in Profitability Margins

152014 – 2018 CAGR

1.4

2.3

3.1

4.6

5.5

2014 2015 2016 2017 2018

Net Income after Tax & Minority Interest (EGP mn) Cash Inflows from Operations (EGP bn)

353

916

640

806 812

17%

25%

11%12% 11%

2014 2015 2016 2017 2018


Net Debt/EBITDA Receivables/Net Debt Total Debt/Equity

Land Liabilities(1) and Total Debt (EGP mn)Highlights

The Company successfully concluded its recent EGP1.54 bn Rights Issue, with 3.3 times oversubscription during the second

subscription round. The newly issued shares commenced trading on the EGX & LSE on December 30, 2018.

PHD concluded securitization and discounting of receivables portfolio of EGP942 mn in relation to 663 handed over units

during FY2018, with proceeds mostly directed towards deleveraging the Balance Sheet.

In 1Q2019, the Company expects to finalize discounting and securitization (non-recourse) transactions of receivables

portfolio of c.EGP1.0 bn, in relation to 861 delivered units in the following projects: Palm Parks, Palm Valley, Golf Views,

Golf Extension, Palm Hills Katameya (1 & 2), Hacienda Bay and Hacienda White 2. The transactions’ proceeds will be

utilized entirely in the partial repayment of existing debt.

Net Debt/EBITDA stood at 1.2x in FY2018, down from 2.6x in FY2017. By end of 2018, Receivables recorded EGP18.4 bn,

compared to EGP15.3 bn in 2017, covering Net Debt by 9.4 times.

(1) Land Liability figures represents the Net Present Value of lands payments.

KEY FINANCIALS

Translating Into a Solid Financial Standing

16

5,394 7,621

11,353 15,252

18,385 3.7x

5.0x 4.3x 4x

9x

(0.2x )

1.8x

3.8x

5.8x

7.8x

9.8x

11.8x

-

5,000

10,000

15,000

20,000

25,000

30,000

2014 2015 2016 2017 2018

41%48%

55%64%

53%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018

1,481 1,464

2,658

3,553

1,950

2.9

2.2

2.6

2.6

1.2

2014 2015 2016 2017 2018

Net Debt Net Debt/EBITDA

1,557 842 875

3,432 3,420

1,676 3,110 3,620

4,583 4,657

2014 2015 2016 2017 2018

Land Liabilities Total Debt


To be Launched, 38125

Total Inventory, 58254

Launched, 20129

Sold, 15047 Unsold, 5082

Handed Over, 9233 Backlog, 5814

427 685

879

1,246

795

294

616 399

342

463

267

567 727

560

296

2014 2015 2016 2017 2018

West Cairo East Cairo North Coast

2,399 2,631 2,707

3,188

4,100 4,100

2013 2014 2015 2016 2017 2018

Handovers by Region

Construction Spending (Earned Value) by Region (EGP mn) Average Construction Cost / sqm

Inventory Breakdown (Delivery/Backlog)2

(1) Average construction progress PoC calculation for existing projects and projects under development;

(2) Inventory excluding Alexandria project and as of December 31, 2018.

Floatation of local currency took place in November 2016, while the partial

removal of fuel subsidy took place in June 2017.

KEY FINANCIALS

Delivering on Schedule

17

561727

488 475

919138

4991210

648

128282

347

351

658494

981

1,573

2,049

1,781

2014 2015 2016 2017 2018

1,541


KEY FINANCIALS

2019 Outlook & Guidance

18

EGP14.0 bn

New Sales

Management is eyeing further improvements in profitability margins, on the back of expectations to deliver higher

margins units alongside foreseen YoY growth in sales of standalone units.

EGP2.2 bn

Construction Spend

1,350 homes

Handovers

Above EGP7.5 bn

Revenue

Above 38%

Gross Profit Margin

Above EGP1 bn

Net Profit

The Company expects to achieve New Sales of EGP14.0 bn, with sales growth to be driven by Badya, Palm Hills

Alexandria, Palm Hills New Cairo and The Crown complemented by further monetization of commercial assets.

Management is targeting to complete a number of projects during 2019 including: Palm Valley, Golf Extension and

Woodville in West Cairo, as well as Palm Hills Katameya extension 2 in East Cairo.

The Company is targeting to deliver 1,350 units in 2019 (lower number compared to 2018), as the sales backlog

of projects under development projects come to an end between 2019-2020.

Management expects a solid top line, driven by the handovers coupled with new sales in Alexandria and Badya in

2019

Bottom line should improve further as the Company deliver higher margin units and reduce G&A further.

Appendix

4

Appendix - Commercial Projects


APPENDIX

Commercial Real Estate1 - Monetization of Non-Core Assets Underway

21

Land Size 12k sqm

Sellable Area 4.5k sqm

Targeted Sales EGP170 mn

Cumulative New Sales EGP161 mn

PHD’s Effective Ownership 100%

PHD’s Share from Sales 100%

Construction Cost EGP7k/sqm

Sales Launch Date 2Q2017

Completion Date 2018

Estimated Profits to PHD EGP70 mn

The Lane, West Cairo

Village Garden Katameya Mall, East Cairo

Land Size 11k sqm

Sellable Area 11k sqm





Construction Cost NA


Expected Completion Date 2019


Land Size 13k sqm










1 Projects data as at September 30, 2018

Village Gate, East Cairo

Hale Town, West Cairo

Land Size 16k sqm

Sellable Area 10.5k sqm


Cumulative New Sales -


PHD’s Share from Sales -

Construction Cost 5,333

Sales Launch Date TBC

Expected Completion Date TBC

Estimated Profits to PHD NA

Land Size 12k sqm


Targeted Sales 420

Cumulative New Sales 62 mn




Sales Launch Date 2H2018



EGP2.4 bn

Palm Central, West Cairo

Cumulative new sales from 3 non-core assets since launch


Operations began 1980

Hotel Category 4 Stars

Number of Keys 169

Average Room Rate EGP860/night

Average Occupancy Rate 73%

GOP 45%

NOP 41%

Stake in Asset 55.12%

APPENDIX

Commercial Real Estate1 - Core Assets without retail outlets currently contributing 10% to Net Profit

22

Palm Club, West Cairo

Land Size 85k sqm

Targeted Sales EGP2.5 bn




Sales Launch Date Ongoing

Expected Completion Date Completed

Estimated Membership Capacity 12.5k

Existing Memberships 3.2k

Time to Full Capacity 7-8 years

Mercure, Ismailia

Novotel October, West Cairo

Novotel Sharm El Sheikh, Sinai



Number of Keys 195

Average Room Rate EGP1,250/night


GOP 57%

NOP 51%




Number of Keys 382

Average Room Rate EGP960/night


GOP 40%

NOP 37%


1 Properties data as at December 31, 2018


♦ PHD is currently negotiating a new

international school brand through

a newly created JV

♦ PHD’s revenues from the

international school project will be

generated from two sources:

♦ The construction of the international

school is set to cost a total of

EGP294 mn, spread over 3 years

starting 2019

International School Certifications

International School Key Facts

▪ 50% of annual

net cash flows

▪ School lease

revenue

calculated as

10% of annual

net revenues

PHD’s Revenue Sources

✓ Internationally accredited school

✓ Strategic location in a high-end residential area

✓ High student capacity compared to other

schools in the surrounding area

International AffiliationSchool AccreditationsTechnical Affiliation

Location Palm Hills New Cairo

Launch date 2020

Students Capacity 1,750

Land Area 60,400 sqm

BUA 29,141 sqm

Key Attractions

APPENDIX

Palm Hills New Cairo - International School


♦ PHD’s plan of building a recurring

income portfolio continues with

developing a hub for mixed-use

commercial properties serving the

area of New Cairo over a radius

of 15 km

♦ The commercial properties will

include a recreational club, an

international school, and a retail &

administrative office complex

♦ PHD is in the process of designing a

flagship recreational club building

on the success of Palm Club West

Cairo

♦ The project is set to cost EGP787

mn in construction costs, spread

over the span of 5 years starting

2019

♦ The recreational club will be fully

owned by PHD, whereby PHD

receives 100% of the annual net

cash flows

Commercial Component

of Palm Hills New Cairo

Retail & Administrative

Office complexRecreational Club International School

1 2 3

Recreational Club Project Key Facts

PHNC Commercial Component Masterplan

✓ Fully owned by PHD

✓ Strategic location in a high-end residential area

in New Cairo, and a walking distance from

PHD’s international school and retail &

administrative complex

✓ Ample membership capacity of 25,000

memberships

International School Recreational Club Other components


Land Area 150,000 Sqm

Maximum Capacity 25,000 Members

Key Attractions

APPENDIX

Palm Hills New Cairo - Recreational Club


♦ The retail & administrative complex

project will be developed on a

total land area of 105k sqm, and

a total BUA of 90k sqm, split

between offices and retail into 60k

sqm and 30k sqm respectively

♦ PHD will have two sources of

revenue from the project:

Retail & Administrative Complex Location

✓ Prime location in a luxurious area of Cairo

✓ Walking distance from PHD’s recreational club

and international school

✓ Boosted footfall by the project’s office space, will

increase the lease prices of the retail space

As a Project Partner

▪ 60% of annual

net cash flows

As a Landowner

▪ Revenue share:

– 35% of units

sale inflows

– 15% of leasing

inflows

PHD’s Revenue Sources

Retail & Administrative Complex Project Key Facts


Launch Date 2019


Value of Units EGP2.1 bn

Offices BUA 60,000 sqm

Retail BUA 30,000 sqm

Total BUA 90,000 sqm

Key Attractions

Cairo International

Airport

Palm Hills Village

Avenue

Palm Hills Village

Katameya

APPENDIX

Palm Hills New Cairo - Retail & Administrative Complex

Appendix - Residential Projects


APPENDIX

Residential Component - Projects Summary

27

Number of

Projects

Delivered Units

Av. For Sale

Inventory1 (EGP bn)

Av. For Sale

Inventory1 (Volume)

Receivables2

(EGP bn)

Remaining Construction

(EGP bn)

Land Liability

(EGP bn)

Cumulative Sales3

(EGP bn)

1- Available for sale inventory as at December 31, 2018 including Alexandria’s project preliminarily figures. Please note that above data

exhibits value of each project including escalations

2- Receivables related to residential projects only

3- Cumulative Net Sales after deducting cancellations

4- Residential component excludes the 205 feddan co-development project

Recognized

Revenue (EGP bn)

Revenue Backlog

(EGP bn)

29

9,643

510

43,114

16.2

181

3.1

41.3

27.6

13.8

Projects

Portfolio

13

4,968

0.07

11

0.4

0.03

0.02

5.7

5.6

0.1

Completed

Projects

10

4,675

5.4

1,027

5.8

2.7

0.2

21.2

18.3

2.3

Projects Under

Development

5

-

60.9

8,008

6.9

31

2.8

10.3

3.1

7.8

New

Projects4

Palm Hills New Cairo, East Cairo

Bamboo Extension, West Cairo

Golf Views, West Cairo

Capital Gardens, East Cairo

1

-

444

34,068

3.1

147

-

4.1

0.6

3.6

Badya


♦ In September 2017, PHD co-bid

with Arkan Developers (through

Palm Alamein) to acquire a 205

feddan land plot in an attempt to

maximize its land bank through co-

development agreements. Palm

Alamein is 40% owned by PHD

and 60% by Arkan Developers

♦ In September 2018, PHD received

the letter of award for the 205

feddan land plot from NUCA and

to sign a definitive agreement

within 3-6 month

♦ The prime land plot is planned to

be developed into an innovative

residential and commercial project

with potential to include a high rise

tower (c.130 -150 meters).

♦ In March 2018, Arkan Palm for

Real Estate Investment Company

(40% owned subsidiary) signed the

co-development agreement with

("NUCA")

Total Land Area 861,000 sqm

Total Built Up Area 1,033,200 sqm

Total Value of Units EGP78.2 bn1

Completion Date 2029

Select Residential Highlights

Total No. of Units 3,300

BUA 495,000 sqm

Type of Units Apartments & Villas

Select Commercial Highlights


BUA 538,200 sqm

Types of units

Tower, Clinics, Medical Stores,

Offices Complex, Retail Stores,

and Entertainment

1 Excluding NUCA’s revenue share2 Project key facts are tentative and subject to change according to the final master plan, which is expected to be concluded

during the current year

205 Feddan Project Key Facts2

✓ A strategic land location overlooking 26 of July axis, the

main high street in Sheikh Zayed City adjacent to Nile

University

✓ Lower initial cash outlays

205 Feddan Project Location

NUCA Revenue Share

CashIn Kind BUA

NUCA Revenue Share

▪ Residential in-kind BUA

of 33k

▪ Commercial in-kind

BUA of 62.5k sqm

▪ Fixed annual cash portion of up

to EGP10 billion payable over

12 years (NPV of EGP2.5 billion

at discount rate of 16%)

▪ Annual revenue share of 12.5%

from the project’s proceeds of

EGP13 billion (NPV EGP3.5

billion) payable over 10.5 years,

starting after 1.5 years from

signing the agreement

Key Attractions

APPENDIX

205 Feddan, West Cairo


♦ On September 11, 2017 PHD

signed the co-development

agreement with NUCA, the project

will encompass 12.6mn sqm (3,000

feddans) with the right of first

refusal on another 3,000 feddans

♦ The project is located in the south-

western edge of 6th of October

City boasting ease of accessibility

on the back of the following

features:

✓ Close to industrial areas

located north of Wahat Road

✓ 15 kilometers away from the

Pyramids, 45 minutes away

from the New Administrative

Capital

✓ Bound by regional road

network including a new ring

road currently under

construction that will directly

connect west Cairo to east

Cairo without any exits, in

addition to other accessible

ring roads and highways

✓ The project expanded PHD’s Land

Bank by 12.6mn sqm, positioning

PHD as the largest property

developer in Egypt


✓ Target new market segments mainly

middle income wallets

✓ Develop large integrated

communities

✓ Act as master developer

✓ Expected to create 300k jobs

✓ Expected to house up to c.150k

inhabitants

Badya Location & Masterplan

Social Assets Recreational Assets Commercial Assets

✓ General Hospital

✓ Local / regional branded

private school

✓ Internationally branded

private school

✓ College

✓ International University

✓ Iconic park

✓ Sports stadium

✓ Desert sports complex

✓ Public library

✓ Heritage / socio-cultural

✓ center

✓ Golf course

✓ Theme park

✓ Water park

✓ Zoo

✓ Concentrated retail (e.g.,

open-air mall)

✓ Super / Hyper market

✓ Retail box park

✓ MICE hotels

✓ Wellness resorts

✓ Nursing homes

✓ Specialty hospitals

✓ Co-working spaces

✓ Office complex / HQs

✓ Art galleries

✓ Marriage halls

Main Components - All Residents’ Needs Will Be Located Within the City Key Attractions

APPENDIX

Badya, West Cairo


♦ The project will be developed

between 2018-2038 with a total

of 32,319 units (27,687

apartments & 4,632 standalone

units) excluding NUCA’s residential

BUA

♦ The commercial component will

spread over 12% of the land

including: education, office, retail,

and hospitality

♦ The government will make in-kind

contribution of land plus all

required infrastructure to the

boundaries of the project site

alongside road network (currently

under construction)

♦ In May 2018, PHD successfully

launched Badya achieving new

sale of 1,935 units worth of

EGP4.8 bn by end of FY2018.

1 Excluding NUCA’s revenue share

Phase 1A Overview

Cash In Kind BUA

NUCA Revenue Share

▪Residential BUA of 372k sqm

(2,242 units delivered

between years 9-12)

▪Commercial BUA of 50k sqm

(delivered in year 12)

▪ In-kind payment translates to

EGP110/sqm on NPV basis

▪26% of cash revenue

payable over the first 12

years capped at

EGP640/sqm on NPV basis

2018 Sales Figures

Apartments Sold

(Units)

Standalone Units

Sold (Units)

Total Value Sold

1,579

356

EGP4.8 bn

Badya Project Key Facts NUCA Revenue Share Agreement

Land Area 12.6mn sqm

Total Built Up Area 7.4mn sqm

Total Value of Units EGP503 bn1



BUA 6.4mn sqm

Type of Units Apartments & Villas

Select Commercial Highlights

BUA 985,000 sqm

Hospitality 3 Hotels

Office Space & RetailOffices complex

1 Convenience retail

Education 8 schools

Healthcare1 Hospital

26 Clinics

APPENDIX

Badya, West Cairo


♦ In January 2017, PHD acquired a

190 feddan plot located in 6th of

October City from the Egyptian

Ministry of Housing

♦ The land plot is strategically

located adjacent to the Company’s

existing developments in West

Cairo including Palm Hills Golf

Views and Golf Extension

♦ The total number of units for The

Crown project stands at 707

standalone units, with sales of

phase one commenced in May

2017

The Crown Project Key Facts Key Attractions

The Crown Project Masterplan

✓ Prime location adjacent to the

Company’s established projects

including Golf Views and Golf

Extension projects

✓ The project will allow PHD to charge

high premiums given the scarcity of

land in that area

Location 6th of October

Sales launch date May 2017

Value of Units EGP9 bn

Land Price 2,440 EGP/sqm

Land Area 798,000 Sqm

BUA 263,120 Sqm

Project Duration 2017 - 2028


Total No. of Units 972

Type of Units Apartments - Standalone

The Crown Project Location

APPENDIX

The Crown, West Cairo


Land Area 769k sqm

Total Built Up Area 575k sqm


Type of Units Villas/Apar.


Project Launch Date 1Q2019

✓ Access to Alexandria, Egypt’s second

largest city, which did not see any

major development for at least the

past 20 years

✓ First mover into Alexandria, granting

PHD access to this underserved

property market

✓ Project is strategically located in

proximity to Al Nozha International

Airport

✓ Alexandria’s maximum real estate

credit terms currently stands at 2/3

years, so PHD offering 5/6 years

will be a major advantage

♦ PHD will be entitled to a revenue share of 65% from the finished units mainly the apartment component,

with the partner holding the remaining 35%. In addition, the partner will receive 10% from the residential

component’s net profit after tax out of the Company’s revenue share. For the unfinished units (standalone

villas), PHD will be entitled to a revenue share of 70%, while the partner will hold the remaining 30%.

♦ Financial indicators are based on G+7, in addition to two underground levels for parking.

♦ The project is expected to offer a number of commercial facilities including a community club and school

♦ In February 2017, PHD

signed a co-development

agreement with a

government agency with

the purpose of co-

developing on revenue

sharing basis 135 feddan

in Alexandria

♦ PHD will be responsible

for all construction,

development,

infrastructure, marketing

and sales activities of the

project

♦ The project’s soft launch

took place on December 7,

2018.

Highlights

Project Master Plan1

1 Master plan is subject to change in the project’s final master plan

32

APPENDIX

Alexandria

Key Attractions

Project Key Facts



✓ Replenish PHD’s Land Bank and

presence in East Cairo

✓ Develop Large Integrated

Communities

✓ Project is located in vicinity of the

New Capital being developed by

the Egyptian government

✓ Prime location with access to a

number of main highways

Project Key Facts

Land Area 2.1 mn sqm

Total Built Up Area 1.03 mn sqm


Type of UnitsApartments &

villas



♦ Government’s Contribution: In-kind contribution of land

♦ Down payment: EGP50 mn were paid upon signing the contractual agreement in March 2015 plus

another EGP50 mn to be paid upon the issuance of relevant ministerial decree

♦ Development: PHD is responsible for the development and management of the project

♦ Revenue sharing: 71.6% of revenue to PHD. NUCA will be entitled to 28.4% in cash, in addition to an in-

kind payment of BUA of 150k sqm

♦ Minimum guarantee: EGP10 bn payable over 13 years to the Government

♦ PHD expects to convert part of the area allocated for villas into apartments, which is expected to

increase revenue by EGP2~3 bn

♦ PHD signed a co-

development agreement

with NUCA in March 2015

♦ SWA Group finalized the

master plan in July 2016

♦ Phase 1 was successfully

launched in November

2016, while Phase 2 was

launched in March 2017

♦ Cumulative New Sales since

launch stood at EGP6 bn as

at end of 2018

Highlights

Key Attractions

APPENDIX

Palm Hills New Cairo, East Cairo

33


Project Key Facts

Land Area 434k sqm



Type of Units Apartments



✓ PHD’s first co-development project

in East Cairo

✓ Project allows PHD to cater to

middle income bracket

✓ Project replenish PHD’s land bank in

East Cairo

✓ No minimum guarantee required by

partner

♦ Phase 1 was launched during December 2015, with New Sales recording EGP1.2 bn by end of 2016,

equivalent to 774 units

♦ Contractors (UECC & MedCom) commenced construction of Phase 1 during September 2016, which will be

developed over 36 month and will encompass 38 buildings (756 apartments)

♦ Realized strong progression in terms of selling prices reaching EGP12.2k/sqm, compared to a launch

price of EGP6.5k/sqm in Q42015

♦ Phase 2 was successfully launched in April 2017 which encompasses 684 apartments, at a launch price of

EGP11.9k/sqm, with New Sales recording EGP0.5 bn by of FY2017

♦ Co-Development project

with Madinet Nasr for

Housing & Developments

(“MNHD”) spanning 100

feddan in East Cairo in a

prime location

♦ MNHD is entitled to a

revenue share of 36%

♦ PHD is responsible for all

construction, development,

internal infrastructure,

marketing and sales

activities, while MNHD will

be contributing the land

alongside all associated

external infrastructure Highlights

Key Attractions

34

APPENDIX

Capital Gardens, East Cairo


Hacienda West

Project Key Facts

Land Area 585k sqm


Total No. of Units 868

Type of UnitsVillas/Chalets/

Cabanas



✓ Prime location with a large

beachfront

✓ Access to nearby new highway

connecting to Cairo in a couple of

hours

✓ Replenish PHD’s Land Bank in the

North Coast

✓ No minimum guarantee required by

partner

✓ Branded Hacienda – premium

brand

♦ In February 2016, PHD

signed a Co-Development

agreement with private

land owner in the North

Coast spanning 139.4

feddan with beachfront of

411 sqm

♦ PHD will be responsible

for all construction,

development, internal

infrastructure, marketing

and sales activities, while

the owner will be

contributing the land

Highlights

Project Master Plan Key Attractions

♦ The project is located in Ras El Hekma on the North Coast, 65 km west of Hacienda White 1

♦ PHD will be entitled to a revenue share of 80%, with partner holding the remaining 20%, at a minimum

revenue guarantee of EGP200 mn over 10 years

♦ Phase one was successfully launched in June 2017 and realized New Sales of EGP1.2 bn since launch and

until end of FY2018

35

APPENDIX

Hacienda West, North Coast

Palm Hills Developments | 2019 | Investor PresentationNote: Projects data as at December 31, 2018

Land Size 0.3 mn sqm

Type of Units Twin/Town

Value of Inventory EGP1.7 bn

Number of Units 475

Delivered Units 141

Recognized Revenue EGP1.4 bn

Sales Backlog EGP0.2 bn

Receivables EGP0.7 bn

Starting Delivery Date 2017

Expected Completion of

Construction2019

Living Families -

Woodville, West Cairo

Land Size 0.5 mn sqm

Type of Units Apartments


Number of Units 1,304

Delivered Units 771






Construction2020

Living Families 164

Palm Parks, West Cairo

Land Size 2 mn sqm

Type of Units Villas/Twin/Town


Number of Units 688

Delivered Units 498






Construction2020

Living Families 67

Golf Views, West Cairo

36

APPENDIX

Projects Under Development


Land Size 219k sqm

Type of Units Standalone Units


Number of Units 237

Delivered Units 31






Construction2019

Living Families -

Palm Valley, West Cairo

Land Size 1 mn sqm

Type of Units Villas/Twin/Town


Number of Units 965

Delivered Units 656






Construction2019

Living Families 77

Golf Extension, West Cairo Palm Hills Katameya, East Cairo

Land Size 928k sqm



Number of Units 516

Delivered Units 435






Construction2019

Living Families 30

37

APPENDIX


Note: Projects data as at December 31, 2018


Palm Hills Katameya Extension (Ph2), East Cairo

PHK

VGK

PK2

PK2 Phase 2

Land Size 150k sqm


Value of Inventory EGP1,165 bn

Number of Units 33

Delivered Units 10


Sales Backlog EGP70 mn



Expected Completion of Construction 2020

Living Families -

38

Palm Hills Katameya Extension, East Cairo

Land Size 230k sqm


Value of Inventory EGP807 mn

Number of Units 275

Delivered Units 256

Recognized Revenue EGP784 mn

Sales Backlog EGP19 mn

Receivables EGP70 mn



Living Families 23

APPENDIX




Land Size 472k sqm

Type of Units Standalone & Apartments


Number of Units 824

Delivered Units 442






Living Families 75

Land Size 2,411k sqm

Type of Units Standalone & Apartments


Number of Units 2,191

Delivered Units 1,690






Living Families 665

Hacienda White 2, North Coast Hacienda Bay, North Coast

39

APPENDIX



Appendix - Financial Statements


EGP Millions 4Q2018 4Q2017 % 2018 2017 %

Revenue 1,766,740 1,845,734 (4%) 7,422,756 6,603,539 12%

Cost of Revenue (1,300,562) (1,218,232) 7% (4,835,433) (4,500,248) 7%

Gross Profit 466,179 627,503 (26%) 2,587,323 2,103,291 23%

Gross Profit Margin 26% 34% (8pp) 35% 32% 3pp

General Administrative, Selling and Marketing Expenses (283,288) (218,754) 30% (963,480) (756,284) 27%

EBITDA 182,891 408,749 (55%) 1,623,843 1,347,007 21%

EBITDA Margin 10% 22% (2pp) 22% 20% 2pp

Administrative Depreciation (25,402) (5,402) NA (66,807) (20,476) NA

Operating Profit 157,489 403,347 (61%) 1,557,035 1,326,531 17%

Less:

Finance Cost & Interests 7,671 (50,582) (115%) (200,064)3 (207,738) (4%)

Securitization of Notes Receivables Discounting Charges - - - (114,003) (116,441) (2%)

Interest on Land Purchase Liabilities (59,123) (14,301) NA (249,565) (124,024) NA

Provisions (59) (65,638) NA (12,248) (70,308) (83%)

Add: - - NA

Recoverable Interest on Land Purchase Liabilities - 80,744 NA - 163,568 NA

Interest Income - Amortization of Discount on Notes Receivables 20,131 16,798 20% 80,526 67,191 20%

Gains on investments in fair value through profit or loss 43,137 13,500 220% 88,882 58,571 52%

Interest Income on held-to-maturity investments 2,550 1,422 79% 8,693 6,011 45%

Net Profit Before Income Tax & Minority 171,796 385,289 (55%) 1,159,257 1,103,360 5%

Income Tax Expense 24,338 (45,866) NA (251,517) (162,100) 55%

Deferred Tax (420) (5,587) (92%) (874) (4,790) (82%)

Net Profit After Tax 195,714 333,835 (41%) 906,866 936,471 (3%)

Non-Controlling Interest (24,191) 4,808 NA (95,124) (130,833) (27%)

Net Profit After Tax & Minority Interest 171,523 338,643 (49%) 811,742 805,637 1%

Net Profit After Tax & Minority Interest Margin 10% 18% (8pp) 11% 12% (1pp)

41

APPENDIX

Income Statement Summary

Note : Consolidated financial statements are prepared in accordance with Egyptian Accounting Standards (‘EAS’), can be

downloaded from our Company’s website: www.palmhillsdevelopments.com

1- Finance cost & Interest includes Capital lease interest of EGP115 mn and Finance Cost of EGP84 mn.

http://www.palmhillsdevelopments.com/


APPENDIX

Balance Sheet Summary



EGP Thousand December 31, 2018 December 31, 2017

Long-Term Assets

Investments in Associates 97,447 83,615

Investment Property 769,612 758,690

Notes Receivable - Long Term 13,087,429 11,356,555

Projects Under Construction 106,030 882,473

Advance Payments for Investments Acquisitions 194,598 184,336

Fixed Assets (net) 1,427,791 347,278

Deferred Tax Asset 4,469 5,485

Other Long-Term Assets 1,391 1,391

Employee Stock Options Program (ESOP) - 83,414

Total Long-Term Assets 15,688,768 13,703,236

Current Assets

Works in Process 9,091,530 9,193,761

Held to Maturity Investments 1,750,819 467,935

Cash & Cash Equivalents 955,738 562,030

Notes Receivable - Short Term 4,235,390 3,012,453

Investments at Fair Value 75,867 51,427

Accounts Receivable 1,061,705 883,344

Suppliers - Advance Payments 494,373 486,084

Debtors & Other Debit Balances 984,451 589,211

Due from Related Parties 359,633 251,408

Guaranteed Payments - Joint Arrangements Partners - 50,000

Total Current Assets 19,009,505 15,547,652

Total Assets 34,698,273 29,250,888

Current Liabilities

Banks - Credit Balances 57,736 50,561

Banks – Overdraft 897,807 374,696

Advances from Customers 11,484,809 10,132,168

Completion of Infrastructure Liabilities 95,083 95,083

Provisions 251,706 240,244

EGP Thousand December 31, 2018 December 31, 2017

Current Liabilities (continued)

Current Portion of Land Purchase Liabilities 158,982 102,493

Notes Payable - Short Term 1,586,918 -

Current Portion of Term Loans 1,101,130 1,239,625

Suppliers & Contractors 704,440 979,574

Income Tax Payable 251,569 543,392

Creditors & Other Credit Balances 617,219 162,100

Due to Joint Arrangements Partners 749,683 523,428

Due to related Parties 28,188 174,562

Total Current Liabilities 17,985,273 14,714,542

Working Capital 1,024,234 833,110

Total Investment 16,713,001 14,536,345

Financed as Follows:

Shareholders’ Equity

Issued and Paid-In Capital 6,157,199 4,617,899

Legal Reserve 708,524 682,810

Special Reserve 476,064 476,064

ESOP Re-measurement Reserve - 43,010

Retained Earnings 556,922 76,127

Net Profit for the Period/Year 811,742 805,638

Equity Attributable to Equity Holders of Parent Co. 8,710,451 6,701,549

Non-Controlling Interest 505,090 538,436

Total Shareholders' Equity 9,215,541 7,239,985

Long Term Liabilities

Land Purchase Liabilities 298,280 335,844

Notes Payable - Long Term 1,660,457 1,912,929

Other Long-Term Liabilities - Residents’ Association 1,671,536 1,083,208

Loans 2,657,712 3,228,805

Due to Joint Arrangements Partners 1,209,477 735,573

Total Long-Term Liabilities 7,497,460 7,296,360

Total Equity & Long Term Liabilities 16,713,001 14,536,345



EGP Millions 2018 2017

Net Profit for the Period (Before Income Tax & Non-Controlling Interest) 1,159,257 1,103,360

Administrative Depreciation 85,077 36,820

Provision Formed 12,248 70,308

Securitization of Receivables Interest 114,003 116,441

Interest on Land Purchase Liabilities 249,565 124,024

Finance Costs & Interest 200,064 207,738

Gain on Disposal of Property & Equipment (1,039) (1,538)

Share of Profit/Loss of Associates (11,852) (4,390)

Gains on Investments in Fair Value through Profit or Loss (8,693) (6,011)

Interest Income on Held to Maturity Investments (88,882) (58,571)

Recoverable Interest on Land Purchase liabilities - (163,568)

Interest Income-Amortization of Discount on Notes Receivables (80,526) (67,191)

Operating Profit Before Changes in Working Capital Items 1,629,220 1,357,423

Changes in Working Capital Items

Change in Work in Process (204,574) (2,090,446)

Change in Notes Receivables (2,873,286) (3,706,248)

Change in Investments in Fair Value through Profit or Loss (1,282,884) (314,607)

Change in Held to maturity Investments (24,440) 7,044

Change in Accounts Receivable (178,362) (126,287)

Change in Suppliers - Advance Payments (8,289) 2,981

Change in Debtors & Other Debit Balances (395,240) (370,734)

Change in Due from Related Parties (108,225) (7,283)

Change in Guaranteed Payments - Joint Arrangements 50,000 (10,000)

Change in Advances from Customers 1,352,641 2,387,413

Change in Investments purchase liabilities - (44,257)

Provisions (786) 549

Change in Due to Related Parties (68,429) (34,717)

Changes in Notes Payables (154,744) 1,605,095

Change in Suppliers & Contractors 161,047 94,927

Income Tax Paid (162,048) (126,629)

Change in Creditors and Other Credit Balances 93,791 1,172

Change in Other Long Term - Residents’ Association 588,327 346,764

Due to Joint Arrangements Partners 1,049,025 749,710

Net Cash (Used In) Operating Activities (537,252) (278,131)

EGP Millions 2018 2017

Cash Flows from Investing Activities

Payments for Purchase of Fixed Assets (52,297) (38,329)

Proceeds from Sale of Fixed Assets 1,250 1,560

Investments in sister companies (1,979) -

Payment for Investments Acquisition (10,262) -

Proceeds from Payments for Projects Under Construction (9,581) (24,812)

Proceeds from real estate investments (12,673) 128,066

Cash Flows from Investing Activities (12,032) 131,066

Cash Flows from Financing Activities

Proceeds from Capital Increase 1,539,299 -

Banks - Credit Balances 7,175 8,384

Banks - Overdraft 523,111 295,285

Adjustments to Retained Earnings (299,129) (288,521)

Proceeds from ESOP 40,404 9,390

Non-Controlling Interest - Dividends (128,471) (4,548)

Deferred Tax 141 28

Special Reserve - (48,149)

Proceeds from Loans 566,192 559,832

Repayment of Loans (1,015,730) (306,944)

Finance Costs & Interests (314,067) (324,179)

Net Cash Provided by Financing Activities 918,928 (99,422)

Net Increase in Cash & Cash Equivalents during the Period 393,707 (246,486)

Cash & Cash Equivalents at Beginning of the Period 562,030 808,517

Cash & Cash Equivalents as at 31 December 2018 955,738 562,030

43

APPENDIX

Cash Flow Statement Summary




Appendix - Corporate Structure


Rakeen Egypt for

Real Estate

Investments (99.95%)

Nile Palm

Al-Naeem for Real Estate

Development (51%)

Middle East Co.

for Real Estate &

Touristic Investment

(87.50%)

Gawda for Trade

Services (100%)

Al Naeem for Hotels &

Touristic Villages (60%)

Gamsha for Touristic

Development (59%)

Royal Gardens for

Real Estate

Investment (51%)

Hacienda White 1

Bamboo Extension CasaPalm Parks

Palm October for

Hotels (99.75%)

Palm Gamsha

Hotels (98%)

Sixth of October for

Hotels & Touristic

Services Co.(79.95%)

Hotels & Touristic

Floating Restaurants

Co. (99.99%)

Palm North Coast

Hotels (98%)

Ismailia for

Toruism Co. (55.12%)

El Nema for Toursim &

Real Estate Co. (49.99%)

Palm Hills Development

SAECascadeBotanica Golden Palm Golf ViewsBamboo Golf Extension

Palm Hills

KatameyaWoodville

New Cairo for Real Estate

Development (99.99%)

Macor for Securities

Investment Co. (60%)

Palm Hills for

Hospitality (98%)

Palm Hills Middle

East Co. for Real Estate

Investment (99.99%)

Saudi Urban

Development Co. (51%)

New East Cairo for

Real Estate

Development (99.99%)

The Village Village Gardens Katameya Hacienda Bay Palm Valley

Projects Tier 1 Subsidiaries Tier 2 Subsidiaries

Palm Hills Katameya

ExtensionVillage Gate

Village Avenue

Hacienda White 2Palm Hills for Education (71%)Palm Clubs (99%)

Palm Alexandria for Real

Estate (99%)

45

APPENDIX

Corporate Structure - Subsidiaries & Projects


IR Team

Mamdouh Abdelwahab

Investor Relations & Investments A. Vice President

Radwa Abu El Naga

Investor Relations Manager

Contact Details

[email protected]

Direct: +202 35351200

Extension: 1230 / 1504

Fax: +202 3535 1208/9

Headquarters

Smart Village, A4 - B84

Kilo 28, Cairo/Alexandria Desert Road

Abou Rawash, Egypt

Download our IR App

Download the App on your smart phone or

tablet today:

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https://itunes.apple.com/app/

id1075708830

Android:

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/apps/details?id=com.eurolan

d.mobiletools.eg_phdc

46

APPENDIX

Investor Relations Contacts

mailto:[email protected]

https://itunes.apple.com/app/id1075708830

https://play.google.com/store/apps/details?id=com.euroland.mobiletools.eg_phdc

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