q1 2018 investor presentation … · q1 2018 investor presentation land bank & portfolio¹ a...

Q1 2018 Investor Presentation


SODIC: Egypt’s Leading Developer

AGENDA

• Demand drivers for property in Egypt

• SODIC At a Glance• Our Unique Value Proposition

• Forward Strategy• Prime Land Bank & Diverse

Portfolio

• Performance Overview • Project Profitability• Delivery & Execution• 1Q18 – Results Highlights

Our Strategy

• Projects Portfolio• Additional Information

Operational & Financial Highlights

Appendices

2

SODIC: Egypt’s Leading Developer

3


Demand drivers for residential real estate in new urban communities

01Demographics Real demand backed by demographics

At 96mn the population is the largest in the region

Young population 70% under 35

936,000 marriages a year

2% population growth

Housing gap of 3 million units

SODIC estimates that its addressable upper middle income market accounts for 10%-15% of the population

02Consumer preference

Favoring gated communities in new cities Quality of life and a secure gated community is driving tenants from the densely populated city center

East & West Cairo are autonomous satellite cities offering their residents all the amenities needed

With most of the organized office space as well as new school and university campuses located in these new

cities, these suburbs have become the destination of choice for most new home buyers

With most developers offering payment plans and in the absence of the mortgage market, off plan

purchases appeal to most buyers

Investment Demand

Healthy and predominantly non-speculative Demand continues post devaluation and despite high interest rates

Investment in real estate as an inflation hedge is a long term trend and deeply rooted in our culture

A familiar and tangible investment

Cultural norms: Parents often buying property for second generation tenants

With rental yields at 5-7% and historical property appreciation on SODIC developments estimated at 20-30%

annually, real estate has historically delivered attractive returns 03


SODIC is at the Forefront of the Egyptian Real Estate Market

With a proven history of success in Egypt, SODIC is focused on expansion and growth

Brief Overview Key Highlights¹

Building on a history of over two decades of successful operations in Egypt, SODIC is one of the country’s leading real estate development companies, bringing to the market award-winning large scale developments to meet Egypt’s ever-growing need for high quality housing, commercial and retail spaces.

Headquartered in Cairo and listed on the Egyptian stock exchange (EGX), SODIC is one of the few non-family owned companies traded on the EGX, with a strong corporate governance framework.

Having invested in sixteen diverse real estate projects, SODIC boasts a portfolio that has contributed more than 3 million square meters of built-up area to Cairo’s new urban communities¹.

1 Since Inception & including Beverly Hills2 As of 31st of March 2018 and includes owned land as well land to be developed under revenue share agreement s

Over 20 years of

operation

17 projects launched

Over 7 mn sqmof land developed

over EGP 29bn

Contracted Sales c.13,000 units

Over 8,000Delivered Units

5.8 mn sqmNon-launched & Raw Land Bank2

EGP 90-95bn

Expected Sales from Non-Launched and Raw Land Bank

5


• Strong demand for SODIC products • Pricing at a premium to the market• Reputation of timely deliveries• Access to partnership deals through our

strong brand and ability to monetize land

• Full cycle experience: Successful navigation through the downturn

• Strong operational performance & resilient financial results

• 16 successfully launched projects

• Significant in-house capacity with a team of more than 650 professionals

• Ability to acquire and execute sizable plots

• Capacity to raise the required funding to secure timely execution

• Strong relationship with suppliers

Our Unique Value Proposition

SODIC’s established brand, performance record and healthy financial position provide the perfect backdrop for sustainable growth

Solid Growth Strategy

• Sales pipeline: EGP 90-95bn• Expand land bank: acquisitions and/or revenue share deals

• Diversify locations: coastal and secondary cities• Build up recurring income portfolio

Significant Brand Equity Track Record & Management Scalable Operation

6

Our Strategy

7


Forward Strategy

Against this backdrop — and with proven brand equity, performance and financial strength — SODIC is focused on growth and expansion

• Execution of EGP 90-95 bn worth of unlaunched inventory• Deliver some 17,000 units from both sold and unlaunched inventory• Collect EGP 11.3 bn of receivables on existing sales while maintaining a collection ratio above 93%• Increase allowable foot print and monetize Al Yosr plot (300 acres in West Cairo)

Execute existing pipeline

Expandland bank

Build up recurring income

Other long-term upside potential

• Locations of interest include:• New, growing urban communities (East & West of Cairo)• Second homes on coastal cities (significant cross selling opportunity & mitigating our current seasonality of primary

homes sales)• Secondary cities offering untapped opportunities in Egypt

• Explore joint ventures, co-development and other asset-light structures as a means to expand operations with a less capital intensive approach

• Gradual build up of our recurring income portfolio, targeting EGP 450 million of revenues• Leverage our existing property and facility management company EDARA and further develop its expertise

• Monetize Syria land (completely written off the balance sheet)

8


Prime Land Bank & Diverse Portfolio of Live Communities

With 5.8 mnsqm of unutilized land, SODIC is expected to bring to the market EGP 90 to 95bn1 of inventory over the coming 10 years from its existing land bank

1 Includes estimated sales of over EGP 58 billion from the co-development agreement with Heliopolis Housing

9


A Diversified Portfolio of Live Communities¹

1 As of 31st of March 2018

10

Project

description

Residential

Single Family

Units

Upper Middle

Class Apartment

Buildings

Integrated

mixed-use office

park

High-end

ApartmentsVarious Types of

Residential Units Residential Units

Retail stretch

mall

Gross land area2,428,283 126,000 54,727 52,934 584,331 725,813* 157,872

Gross BUA 575,325 123,733 85,124 72,220 344,664 611,008 35,004

Launched as a

pct of project

gross land area

100% 100% 100% 100% 100% 93% 67%

Value sold as a

pct of launched99% 100% 94% 89% 100% 96% 100%

Delivery 96% 99% 54% 57% 99% 36% 100%

Execution 94% 100% 90% 82% 99% 50% 100%

* Residential component excludes land allocated for commercial development

100%100%100% 100% 100% 93% 67%

99% 100%94%

89% 100% 96% 100%

96% 99%54%

57% 99% 100%

94% 100% 90% 82% 99%50%

100%

36%


A Diversified Portfolio of Live Communities¹

1 As of 31st of March 2018

11

Project

description

Entertainment

retail complex

Residential

Single & Multi

Family Units

Upper Middle

Class Apartment

and duplexes

Secondary Homes

Stand-Alone &

Chalets

Residential Multi

Family Units

Residential Multi

Family Units

Residential

Single Family

Units

Gross land area50,090 1,055,515* 237,594 441,000 130,158 35,293 263,678

Gross BUA 13,254 628,381 164,637 103,241 126,564 22,865 99,638

Launched as a

pct of project

gross land area

100% 83% 1.00 1.00 0.50 1.00 0.10

Value sold as a

pct of launched100% Leasable 69% 100% 86% 59% 89% 88%

DeliveryOperational

since 2Q15

Delivery starting

2018

Delivery starting

2018

Delivery starting

2020

Delivery starting

2020

Delivery starting

2021

Execution 99% 27% 75% 58% 16% 20% 0%

* Residential component excludes land allocated for commercial development

100% 83%

69% 100%

100%

99% 27% 75%

100%

86%

58%

50%

59%

16%

100%

89%

20%

26%

10%

88%

0%


Land Bank & Portfolio¹

A solid land bank providing strong sales visibility

Unlaunched & Raw LandUnlaunched & Raw LandLand Utilization

14.3mn sqm

1 As of 31st of March 2018 2 Includes Designopolis, BISC and Infrastructure assets ³ Excluding Syria Land Bank (Fully Impaired)

5.9 mn

sqm

5.9 mn

sqm

12

59%

32%

9%

Launched Unlaunched Raw

26%

52%

22%

West Cairo East Cairo North Coast

62%16%

22%

Residential Retail & Commercial Secondary Homes

West Cairo Total Land Bank East Cairo Total Land Bank North Coast Total Land Bank

7.6mn sqm 5.0mn sqm 1,715k sqm

1. Launched Projects Land Area 2. Unlaunched Projects Land Area 1. Launched Projects Land Area 2. Unlaunched Projects Land Area 1. Launched Projects Land Area

Allegria 2,428k sqm Westown Residential 48k sqm Eastown Residences 674k sqm Eastown Residences 52k sqm Caesar 441k sqm

Forty West 53k sqm Westown Retail/ Commercial 72k sqm Kattameya Plaza 126k sqm Eastown Retail/ Commercial 127k sqm Total Launched Projects 441k sqm

Westown Residences 584k sqm The Strip Phase II 52k sqm Villette Residential 875k sqm Villette Residential 181k sqm

The Polygon 55k sqm October Plaza 65k sqm SODIC East 264k sqm Villette Retail/ Commercial 211k sqm 2. Raw Land Land Area

The Strip 106k sqm Total Unlaunched Projects 237k sqm Total Launched Projects 1,938k sqm SODIC East Residential 2,044k sqm New 300 acre plot 1,274k sqm

The Courtyards 238k sqm SODIC East Commercial 450k sqm Total Raw Land 1,274k sqm

Westown Hub 50k sqm Total Unlaunched Projects 3,065k sqm

CASA 294k sqm 3. Raw Land Land Area

Beverly Hills 1,900k sqm Al Yosr 1,260k sqm

One16 35k sqm Total Raw Land 1,260k sqm

October Plaza 65k sqm

WMC 4k sqm

Others² 260k sqm

Total Launched Projects 6,072k sqm


Land Bank as at 31st of March 2018

A presidential decree was issued during 1Q17 outlining the areas to be annexed to the city of Sheikh Zayed and Six of October, with Al Yosr plot falling within the extension.

The decree brings the plot closer to monetization commencing the process of rezoning and increasing the allowable footprint for construction

Al Yosr

Co-development agreement signed in March 2018

This plot is strategically located 8 km East of Caesar

Total sales estimated at EGP 15 billion over 7 years

North Coast 300 acres plot

Co-development agreement signed in March 2016 with Heliopolis housing

This plot is strategically located in New Heliopolis off Cairo Suez Road

Masterplan has been finalized by SASAKI and approved by Heliopolis Housing Company

Successfully launched phase 1 selling out EGP 1.7 billion

SODIC EAST 655 acre plot

5.8 mn sqmof unlaunched land

c.EGP 90-95bn of future sales

Continuing to monetize new phases of launched projects in East & West Cairo

Remaining land (SODIC West, Villette,

Eastown & October Plaza)

300 acres West Cairo (El

Yosr)21%

655 Acres New Heliopolis

43%

300 acres North Coast

22%

Other launched projects

14%

300 acres West Cairo (El Yosr) 655 Acres New Heliopolis

300 acres North Coast Other launched projects


Replenishing inventory on the North Coast through 300 acre co-development deal

14

8 Kilometers East of Caesar

300 acre plot

In March 2018 SODIC signed two revenue share agreements for two privately owned adjacent plots with a total land area of 1.3 million square metres on the Mediterranean North Coast of Egypt.

The plots are located on kilometre 94 of Alexandria – MarsaMatrouh road

The 1.3 million square metre plot is expected to generate total sales of over EGP 15 billion over a period of seven years and comes in line with SODIC’s growth strategy and expansion plans in second home markets.

Summary Key Commercial Highlights

Over EGP 15bn

of potential sales

72% share of revenues

to SODIC

7 yearsSales visibility on the North Coast

No minimum guarantee

Operational & Financial Performance

15


Performance Overview

SODIC has exhibited impressive growth, growing by every metric since 2011

EGP million Pct of Gross Sales Units Delivered

EGP million EGP million

Gross contracted sales

Receivables growing in line with sales growth with delinquencies at a low rate of 4%

Cancellations Continuing to deliver on schedule

Collections continued to increase

16

Unrecognized revenues provide strong earnings visibility

Client deposits EGP million

741

1,819

2,730 3,238

4,641

5,918 5,872

1,212 1,310

2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18

99.0%

11.0% 9.0% 5.0% 5.0% 4.6% 2.6% 4.8% 4.3%

2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18

259

424

684

491

721

1,060 1,151

399

167

2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18

1,742 2,452

3,604

4,859

6,886

9,751

11,223 11,331

2011 2012 2013 2014 2015 2016 2017 1Q18

750

1,292

2,044 2,049 2,390

3,127

3,843

896 1,081

2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18

3,332 3,528 4,294

6,097

8,914

12,619

15,497 16,180

2011 2012 2013 2014 2015 2016 2017 1Q18


Project Profitability

1 All figures in EGP unless otherwise stated 2 Excludes the investment cost of leasable assets 3 Expected gross profit margin, excluding NPV adjustments and estimated based on projects budget and reflects the estimated profitability for the entire launched project (delivered and undelivered units) GPM illustration here excludes capitalized interest expenseSODIC East sales presented net of 30% revenue share of Heliopolis Housing

Sellable Inventory Profitability1 Percentage Sold (Value)

Launched projects estimated to return a blended gross profit margin of 38%

17

Projects’

GPM³Allegria 4,440 2,742 4,380 38%

Kattameya Plaza 655 444 655 32%

Forty West (I-II) 1,009 796 898 21%

WTR (I-X) 2,248 1,175 2,243 48%

Polygon 1,427 931 1,342 35%

The Strip 353 202 353 43%

One16 498 236 441 53%

October Plaza 902 564 528 37%

ETR (I-XI) 5,964 3,685 5,723 38%

The Courtyards (I-VI) 1,707 853 1,704 50%

Villette (I - V) + Sky Condos 8,353 5,398 5,797 35%

Caesar 1,760 1,068 1,505 39%

SODIC East 1,409 861 1,236 39%

Total 30,725 18,957 26,806 38%

100%

69%

86%

88%

94%

100%

89%

59%

96%

99%

100%

89%

100%

Project (EGP Mn)Total Launched

Inventory

Development

Cost2

Sold

InventorySold Unsold


Delivery and Execution1

SODIC delivered 167 units in 1Q18

9,769 launched units under development (52% delivered) with an investment cost of c. EGP 19.6 billion

Delivery

1 All figures as of 31st of March 2018.2 Investment cost represents the expected construction and land costs. Figures are in EGP million. 3 Percentage completion represents CAPEX paid. With the exception of Eastown, Villette and Allegria, all projects land cost has been fully paid.4 CASA is a jointly owned project (80% Palm Hills subsidiary & 20% SODIC). SODIC owns 63 apartments

Execution

18

Number of Delivered Percent Delivery Delivery Investment Percent

Units Units Delivered Start Date End Date Cost² Completion3

Allegria 1,249 1,230 98% 2010 2017 2,742 94%

Kattameya Plaza 488 469 96% 2013 2016 444 100%

Forty West (I-II) 221 120 54% 2012 2018 796 82%

WT Residences (I-X) 1,391 1374 99% 2013 2017 1,175 99%

The Polygon 303 256 84% 2013 2018 931 90%

The Strip 84 56 67% 2012 2017 202 100%

WT Hub 48 45 94% 2014 2015 89 99%

ET Residences (I-XII) 2,575 1234 48% 2016 2020 3,685 50%

The Courtyards (I-VI) 776 199 26% 2017 2019 853 75%

Villette (I-V) + Sky Condos 1,499 - - 2018 2011 5,398 27%

One16 125 - - 2020 2020 236 20%

October Plaza 207 - - 2020 2020 564 16%

CASA⁴ 63 62 98% 2013 2015 NA 100%

Caesar 353 - - 2018 2019 1,068 58%

SODIC East 387 - - 2020 2021 1,465 0%

Total 9,769 5,045 52% 19,650 NA

Project

From 2010 to 2021


SODIC recorded EGP 1.2 billion of net contracted sales up 9% on the same period last year. With limited release of residential inventory, sales for the quarter were mainly driven by our non-residential developments which represented 78% of the net contracted sales for the period. The quarter witnessed the launch of EastownDistrict New Cairo “EDNC” marking the monetization of this prime located commercial development in the heart of New Cairo. With construction commencing this year, the project is slated for completion in 2021 and is expected to be the cornerstone of SODIC’s recurring income portfolio in the future.

Cancellations remained low at 4.3% in line with historical averages and slightly below 4.8% recorded during the same period last year.

Net cash collections increased by 20% to reach EGP 1.1 billion during the first quarter 2018, while delinquencies remained low at 4%.

The company continues its strong commitment to timely deliveries, with 167 units delivered on schedule across our projects during the quarter including debut deliveries in Caesar. This compares to 399 units that were delivered on schedule during the same period last year. Deliveries during 2017 were exceptionally front loaded towards the first quarter in which we delivered circa 35% of the units for the year.

1Q18— Operating Performance Highlights

EGP 1.2bn

contracted sales

Cancellations remained low

4.3%

Delinquency remained low

4%EGP 1.1bn

Collected +20%

Delivered first units in Caesar

161 units

Delivered

Sales driven by non residential products while deliveries remain on schedule

19


• SODIC recorded revenues of EGP 512 million during the quarter, this compares to EGP 703 million recorded for the same period last year. Revenues during 2017 were exceptionally front loaded towards the first quarter in which we delivered circa 35% of the units for the year.

• Gross profit was up 26% to reach EGP 266 million, delivering a solid gross profit margin of 52%. Our projects recorded exceptionally high profitability during the quarter with almost all of our projects achieving a gross margin of over 40%. In addition gross profit was buoyed by one off sale of land for sub-development in SODIC West. Excluding the effect of this deal gross profit margin from our developments was a solid 43%. Operating profits came in at EGP 193 million reflecting a healthy operating margin of 38%, representing a marked improvement of 712 bps over same period last year.

• Net profit amounted to EGP 212 million during the quarter recording a net profit margin of 41%. Our bottom line continues to be positively impacted by the high interest rate environment. Excluding the impact of net interest income our net profit margin comes in at a solid 28%.

1Q18— Financial Performance Highlights

52%Gross profit margin

EGP 266mn

Gross profit

38%Operating profit margin

EGP 193mn

Operating profit

41% net profit margin

EGP 212mn

net profit

Exceptionally strong profitability with net profit margins reaching 41%

20


Total cash and cash equivalents amounted to EGP 3.9 billion, reflecting the strength of our balance sheet supporting our land bank expansion plans and our projects execution.

Bank leverage remains low with bank debt to equity at 0.3x. As of 31st of March 2018 our bank debts outstanding were EGP 1.5 billion reflecting a 45% utilization rate for our EGP 3.3 billion facilities.

Land liabilities continued to decline to EGP 560 million as we remain committed to the timely repayment of NUCA installment.

Receivables of EGP 11 billion provide strong cash flow visibility, with delinquency rates remaining low at 4%.

Client deposits represents the backlog of unrecognized revenues from contracted sales of units that are to be delivered over the coming three to four years. Our client deposits as of the end of the quarter were EGP 16 billion providing strong revenue visibility for the company.

Net cash flows from operations were up 82% to reach EGP 241 million

1Q18— Financial Performance Highlights

EGP 1bn

Cash earmarked for growth

0.3x debt to equity

leverage remains low

EGP3.9bn

Cash balances

EGP 11bn

receivables

EGP 16bn

Revenue backlog

4%Delinquency rate

Solid balance sheet prudently managed to support growth

21


Summary Financial Results

Summary Consolidated Income Statement Selected Consolidated Balance Sheet Items

22

EGP in mn 1Q18 1Q17

Total Revenue 512 703

Cost of Goods Sold (246) (445)

Gross Profit 266 259

Gross Profit Margin 52% 37%

Operating Profit 193 215

Operating Profit Margin 38% 31%

Net Profit Before Tax 282 281

Taxes (70) (69)

Minority Interest (0) (1)

Net Profit After Tax and Minority Interest 212 211

Net Profit Margin 41% 30%

EGP in mn Mar-18 Dec-17

Assets

Total Assets 25,484 24,671

Work In Process 8,354 8,011

Long Term & Short Term Net Trade and Notes Receivable 11,331 11,223

Cash and cash equivalent 3,897 3,596

Liabilities & Shareholder Equity

Bank Credit Facilities & Long Term Loans 1,535 1,497

Advances from Customers 16,180 15,497

Total Equity 4,655 4,443

Q1 2018 Investor Presentation 23

Appendices


I. Project Portfolio

24


Project Portfolio

Project DescriptionWestown’s first residential neighborhood, offering townhouses, twin-houses, city villas, signature lofts, duplexes and apartments. The development brings together themed gardens, parks, and open green spaces, set in a secure, gated community designed around the Pedestrian Green Spine.

1 Including land cost.All figures as of 31st of March 2018.

25

Launch date 2011 Receivables outstanding (EGP mn) 205

Gross Land Area (sqm) 584,331 Development cost for launched¹ (EGP mn) 1,175

Total BUA (sqm) 344,664 Capex remaining for launched 1%

Launched BUA (sqm) 344,664 Delivery start 2014

Launched inventory value (EGP mn) 2,248 Delivery end 2017

Sold inventory (EGP mn) 2,243 Value of units delivered (EGP mn) 2219

Number of units launched 1,391 Number of units delivered 1374


Project Portfolio

Project DescriptionThe Courtyards is SODIC West’s newest residential neighbourhood. Designed by SODIC’s very own in-house design team, offering a variety of apartments and duplexes

1 Including land cost.All figures as of 31st of March 2018.²for launched phases.

26


Gross Land Area (sqm) 237,594 Development cost for launched¹ (EGP mn) 853



Launched inventory value (EGP mn) 1,707 Delivery end² 2019

Sold inventory (EGP mn) 1,704 Value of units delivered (EGP mn) 381

Number of units launched 776 Number of units delivered 199


Project Portfolio

Project DescriptionSODIC’s flagship project, Allegria, is an award-winning residential development offering high-end single-family units surrounding an 18-hole Greg Norman golf course.


27


Gross Land Area (sqm) 2,428,283 Development cost for launched¹ (EGP mn) 2,742




Sold inventory (EGP mn) 4,380 Value of units delivered (EGP mn) 4,186

Number of units launched 1,249 Number of units delivered 1,230


Project Portfolio

Project DescriptionForty West is an exclusive development with a cutting-edge design by acclaimed Boston-based Machado and Silvetti Architect. It is the coming together of a vibrant community with spectacular fully-finished apartments, offices, boutiques, world-class restaurants, open spaces and a luxurious hotel.


28






Sold inventory (EGP mn) 898 Value of units delivered (EGP mn) 514



Project Portfolio

Project DescriptionThe Polygon consists of eleven ‘Class A’ office buildings designed by multiple-award-winning UK-based architects Wilkinson-Eyre. The Polygon offers over 90,000 sqm of state-of-the-art office space, designed to accommodate both small and large businesses.


³for launched phases.

29





Launched inventory value (EGP mn) 1,427 Delivery end³ 2016


Number of units launched - Number of units delivered 256

Gross Leasable Area² (sqm) 4,252 Estimated Lease Income² (EGP mn) 14


Project Portfolio

Project DescriptionDesigned by leading Egyptian architectural firm Hassan Abu Seda, the Hub consists of five multi-leveled buildings around one central piazza, creating a truly unique retail space. Westown Hub is home to some of Cairo’s finest restaurants and cafés.

1 Including land cost.All figures as of 31st of March 2018.²Estimated lease income in 2022.

30

Launch date 2012 Development cost for launched¹ (EGP mn) 89

Gross Land Area (sqm) 50,090 Capex remaining for launched 1%

Total BUA (sqm) 13,254 Delivery start 2014

Launched BUA (sqm) 13,254 Delivery end 2015



Project Portfolio

Project DescriptionWith stores arranged side by side and linked by a walkway, The Strip offers mixed retail shops and personal services over seven zones in a relaxed and contemporary environment.

1 Including land cost.All figures as of 31st of March 2018.²Estimated lease income in 2022. ³for launched phases.

31





Launched inventory value (EGP mn) 353 Delivery end³ 2015





Project Portfolio

One16A circlet of 16 contemporary buildings, the project is one of two remaining multifamily developments in SODIC West. This premium offering provides homeowners privacy and comfort within the heart of SODIC West

1 Including land cost.²of launched phasesAll figures as of 31st of March 2018.

32





Launched inventory value (EGP mn) 498 Delivery end² 2020




Project Portfolio

October PlazaOur first apartment offering in West Cairo outside of SODIC West,

1 Including land cost.²of launched phasesAll figures as of 31st of March 2018.

33





Launched inventory value (EGP mn) 902 Delivery end² 2020




Project Portfolio

Project DescriptionKattameya Plaza is comprised of 474 apartments and is strategically located in the heart of New Cairo, five minutes away from Eastown and the American University in Cairo. Kattameya Plaza is designed and master-planned by ArchGroup — the distinguished firm that designed the Grosvenor House in Dubai — and landscaped by Evergreen.


34





Launched inventory value (EGP mn) 655 Delivery end 2015




Project Portfolio

Project DescriptionStrategically located on Road 90, adjacent to the American University in Cairo and just a short drive from Cairo International Airport, Eastown will provide premium residential, retail and office space all set in a secure, gated community.


35

Launch date 2013 Receivables outstanding (EGP mn) 2,435





Sold inventory (EGP mn) 5,723 Value of units delivered (EGP mn) 2,082

Number of units launched 2,575 Number of units delivered 1,234


Project Portfolio

Project DescriptionVillette marks SODIC’s first time to offer single family units in New Cairo. The development offers a range of standalone villas, townhouses and twin-houses with unique architectural designs. The project was master planned by the renowned SWA Group and launched in a record 6 months from acquisition of the 301 acre plot. 2Q17 marked the launch of SKY CONDOS, our multiple family offering in Villette


36

Launch date 2014 Receivables outstanding (EGP mn) 3,150

Gross Land Area (sqm) 1,266,215 Development cost for launched¹ (EGP mn) 5,398




Sold inventory (EGP mn) 5,797 Value of units delivered (EGP mn) -

Number of units launched 1,499 Number of units delivered -


Project Portfolio

Project DescriptionCaesar marks SODIC’s first secondary home development on the Mediterranean North Coast. The project offers a community of homes built on terraced levels with unobstructed sea views and a beachfront of over 1km, Caesar will offer one of the most exclusive residential communities on the North Coast

1 Including land cost.All figures as of 31st of March 2018²for launched phase.

37






Sold inventory (EGP mn) 1,505 Value of units delivered (EGP mn) -

Number of units launched 353 Number of units delivered -


II. Additional Information

38


Board of Directors

Hani Sarie El DinChairman (Non-Executive)Dr. Hani Sarie El Din is a prominent legal practitioner in Egypt and the Middle East with over 25 years of experience in corporate, banking, and capital market. In addition to his private professional career, Dr. Sarie El Din has served in executive and non-executive public positions including, Chairman of Capital Market Authority, Board Member of the Central Bank of Egypt, General Authority for Investment, and the first official US-Egyptian Fund to promote investment in Egypt. Dr. Sarie El Din holds a Ph.D. in International Business Law from Queen Mary and Westfield College, University of London.

Magued SherifBoard Member (Executive)Magued Sherif is SODIC’s Managing Director, appointed September 2015. Sherif enjoys almost 30 years of professional experience, including several leadership positions with prominent companies in the industry. Past positions include Egypt Country Head and Properties Chief Executive Officer at Majid Al Futtaim Properties Egypt as well as General Manager and Senior Vice President at Palm Hills Developments for a 10-year period starting from the company’s inception. More recently Sherif was Chief Executive Officer and Managing Director at Hyde Park Properties for Development from 2012-14. Sherif was most recently the co-founder and managing director of The Venturers LLC in Orlando, Florida, as well as the co-founder of AA Investments LLC, Orlando. Earlier in his career Sherif worked as the Head of Privatization Unit at Arthur Anderson, in addition to spending 7 years at Bechtel Egypt and Bechtel Limited. He began his career as a Site Engineer with Orascom Construction Industries in 1986. Sherif holds a Bachelor’s degree in Architecture from Cairo University, Egypt, in addition to an MBA from the American University in Cairo.

Walid Abanumay Board Member (Non-Executive)Dr. Walid Sulaiman Abanamay has been the Managing Director of Al-Mareefa Al –Saudia Company since 1997. Prior to this, he served in the Treasury and Corporate Banking Departments of SAMBA Financial Group. Dr. Abanamay has been serving the Board of Directors of several listed companies, private equity and equity funds including, Joussour, Beltone Financial, UGIC, Mena Capital Fund and GB Auto. He also served in the Boards of SAFCO, Nasr City, Al-Inmaia, Al Raya Holdings and Al Masafi. Dr. Abanamay holds a B.Sc. degree in Computer Science from Southern Illinois University, a Master’s degree in Management Information Systems from the University of Illinois and a Ph.D. in Business Administration majoring in Finance from Southern Illinois University.

Sabah BarakatBoard Member (Non-Executive)Sabah Taysir Barakat is the Vice President of Olayan Financing Company, based in Riyadh, and is responsible for overseeing a portfolio of wholly owned and joint venture companies in the fields of energy, construction, and real estate development. From 2003-2008, Barakat was Vice President of Bechtel Group. From 1998-2003, Barakat was the Regional Vice President of National Grid Plc. From 1986-1998, Sabah worked for the Costain Group Plc., a leading international contracting firm, specializing in infrastructure, energy, and building construction. Barakat graduated in 1986 with an Engineering degree from London University as a Chartered Engineer, and a member of the UK’s Institute of Civil Engineers. Barakat holds an MBA in Engineering Management and is a member of the UK’s Chartered Institute of Management.

Yezan HaddadinBoard Member (Non-Executive)Yezan Haddadin is currently the Chief Investment Officer of the Capital Bank Group, a financial services group with operations in Jordan, Iraq and UAE. Haddadin has over 15 years of investment and investment banking experience. In 2013, he co-founded HCH Partners, a private equity investment company focused on East Africa, where he currently serves on the Board and is a member of the investment committee. Prior to that, Haddadin acted as Advisor at Ripplewood Holdings LLC., following his post of Managing Director at Perella Weinberg in New York from 2007 to 2012 and his work with JPMorgan's M&A group in New York from 2000 to 2007. Haddadin received a Bachelor of Science degree from Georgetown's School of Foreign Service and a Juris Doctor from Northwestern University School of Law. He was admitted to the New York bar and is a licensed pilot. Throughout his career, Haddadin has developed an extensive experience across a range of industries and advised on approximately $100 billion in M&A transactions in North America, Latin America, Europe, the Middle East and Africa.

39


Board of Directors

Omar ElhamawyBoard Member (Executive)Omar Elhamawy is the Chief Financial Officer of SODIC, as well as, the Managing Director of SODIC’s fully owned company SOREAL for Real Estate Investment. Since joining SODIC in May 2013, Elhamawy has overseen the successful completion of SODIC’s EGP 1 billion capital increase, as well as, the signing of several medium term facilities. Prior to joining SODIC, Elhamawy spent eight years as a Director within Beltone’s Investment Banking Division, where he highly focused on the real estate sector through his close involvement in both M&A and Capital Market transactions. His most notable transactions include advising Mena for Touristic and Real Estate Investments on a capital increase, advising Beltone Private Equity on the tender offer and acquisition of Nasr City Housing and Development, and advising Amer Group on its IPO, among many others. Elhamawy holds a bachelor’s degree of Business Administration from the American University in Cairo and is a CFA Charterholder.

Omar Salah BassiounyBoard Member (Non-Executive)Omar S. Bassiouny is the co-founder and Executive Partner of Matouk Bassiouny and the head of the company’s Corporate and M&A group. Bassiouny has a strong track record in the areas of corporate law and mergers and acquisitions, most recently representing Emirates NBD on the acquisition of BNP Paribas S.A.E. and representing Abraaj in the acquisition of Al Mokhtabar in 2012. Bassiouny is a prominent member of several chambers of commerce and business associations including the American Chamber of Commerce, the Egyptian Malaysian Business Council and the British Egyptian Business Association. Bassiouny’s achievements have been recognized with numerous awards such as Leading Lawyer in Mergers & Acquisitions in Egypt in 2014 by IFLR 1000 and leading lawyer in Egypt in 2013 by Chambers & Partners. Bassiouny received a B.A in Public and International Law from the American University Cairo and a Licence en Droit from the faculty of Law at Cairo University.

Hisham El-KhazindarBoard Member (Non-Executive)Hisham El-Khazindar is the Managing Director and Co-Founder of Qalaa Holdings. El-Khazindar also serves on the board of several leading regional companies including El Sewedy Electric and Magrabi Retail, and on the Advisory Committee of the Emerging Markets Private Equity Association. He also serves as a Trustee of the American University in Cairo, a Trustee of the Cairo Children’s Cancer Hospital, and as a Fellow of the Aspen Institute’s Middle East Leadership Initiative. Prior to co-founding Qalaa Holdings in 2004, El-Khazindar held the position of Executive Director of Investment Banking at EFG Hermes where he advised on landmark M&A and IPO transactions in the region. During the period 1999-2000, El-Khazindar was on secondment to Goldman Sachs in London. El-Khazindar holds a BA in Economics from the American University in Cairo and an MBA from Harvard Business School.

Hussein ChoucriBoard Member (Non-Executive)Hussein Choucri is the Chairman and Managing Director of HC Securities & Investment. Choucri is also a Board Member of the Holding Company for Tourism and Cinema (HOTAC), Edita Food Industries, Integrated Diagnostics Holdings (IDH), and the Egyptian British Business Council (EBBC). In addition, Choucri is the Chairman of the Board of Trustees of Shefaa Charity Foundation. Choucri held the position of Managing Director at Morgan Stanley, New York from 1987 to 1993, before serving as an Advisory Director until December 2007 where he was responsible for business activities in the emerging markets of the Middle East and the Indian Subcontinent as well as taking part in a number of privatization projects in Turkey, India and Argentina. Prior to joining Morgan Stanley, Choucri worked with Abu Dhabi Investment Company and participated in arranging several Euroloan and Eurobond financings for sovereigns and private sector companies. Choucri received a Management Diploma from the American University in Cairo and a B.A. from the Faculty of Commerce, Ain Shams University.

40


Management

Magued SherifManaging Director Magued Sherif is SODIC’s Managing Director, appointed September 2015. Sherif enjoys almost 30 years of professional experience, including several leadership positions with prominent companies in the industry. Past positions include Egypt Country Head and Properties Chief Executive Officer at Majid Al Futtaim Properties Egypt as well as General Manager and Senior Vice President at Palm Hills Developments for a 10-year period starting from the company’s inception. More recently Sherif was Chief Executive Officer and Managing Director at Hyde Park Properties for Development from 2012-14. Sherif was most recently the co-founder and managing director of The Venturers LLC in Orlando, Florida, as well as the co-founder of AA Investments LLC, Orlando. Earlier in his career Sherif worked as the Head of Privatization Unit at Arthur Anderson, in addition to spending 7 years at Bechtel Egypt and Bechtel Limited. He began his career as a Site Engineer with Orascom Construction Industries in 1986. Sherif holds a Bachelor’s degree in Architecture from Cairo University, Egypt, in addition to an MBA from the American University in Cairo.

Omar ElhamawyChief Financial OfficerOmar Elhamawy is the Chief Financial Officer of SODIC, as well as, the Managing Director of SODIC’s fully owned company SOREAL for Real Estate Investment. Since joining SODIC in May 2013, Elhamawy has overseen the successful completion of SODIC’s EGP 1 billion capital increase, as well as, the signing of several medium term facilities. Prior to joining SODIC, Elhamawy spent eight years as a Director within Beltone’s Investment Banking Division, where he highly focused on the real estate sector through his close involvement in both M&A and Capital Market transactions. His most notable transactions include advising Mena for Touristic and Real Estate Investments on a capital increase, advising Beltone Private Equity on the tender offer and acquisition of Nasr City Housing and Development, and advising Amer Group on its IPO, among many others. Elhamawy holds a bachelor’s degree of Business Administration from the American University in Cairo and is a CFA Charterholder.

Ahmed LabibChief Commercial OfficerAhmed Labib is the Chief Commercial Officer of SODIC. Labib is responsible for setting and achieving company-wide commercial objectives, as well as, setting and overseeing the execution of SODIC’s marketing strategy. In his capacity, Labib collaborates with the development team, heavily contributing to the creation, positioning and pricing of SODIC’s products. Labib joined SODIC in 2007 as a Sales Manager whose success quickly earned him the title of Sales Director and later Executive Sales Director. His previous experience includes working in the Marketing Department at McDonalds and spending seven years in the Marketing and Consumer Relations Platform at British American Tobacco (BAT) where he held various positions, the last of which was Multiple Category Brand Manager. Alongside his professional experience Labib co-founded several successful ventures in the entertainment industry. Labib holds a bachelor degree in Psychology with a minor in Mass Communication from the American University in Cairo.

41


Management

Ayman AmerExecutive Director Supply Chain With more than 16 years of experience in the real estate, project management & construction in Egypt & North Africa, Amer is responsible for setting & monitoring SODIC’s procurement strategy among all functions as well as expanding the land bank & find new opportunities for company’s growth & development. Amer Joined SODIC in 2010 as Procurement Manager; prior to this he spent 4 years as Procurement & Cost Control Manager at Turner International Middle East (TIME) following his post as Senior Procurement Engineer at Orascom Construction Industries (OCI). Amer holds a diploma in the project management from the American University in Cairo, Certified International Procurement Professional & a Bachelor degree of Architectural Engineering from Cairo University.

42

Ramy RaafatExecutive Director of DevelopmentWith over 18 years of experience in the entire real estate development and investment lifecycle. In his capacity, he is responsible for SODIC’s real estate portfolio with the vision and mission to revitalize existing communities and revolutionize new profitable destinations. Since Raafat joined SODIC in 2015, he successfully introduced new innovative offerings and added 2.7 million sq.m to the company’s land bank.Prior to joining SODIC, Raafat worked with Palm Hills Developments, where he managed the company’s entire real estate portfolio with full P&L accountability as Portfolio Management Director. He also worked for GSSG Holding, YMM Investments-Dubai & MEINHARDT Consulting Engineers and Project Managers –Dubai and successfully managed international flagship developments such as Burj Dubai Development, the Dubai Mall and the Address Hotel, JAL twin Towers and Agha Khan Center in Dubai. Ramy holds BSc in Civil Engineering, Master's degree in Real Estate Development and Management from Heriot Watt University in the UK and acquired the Project Management Professional “PMP” certification from PMI in USA.

Hisham SalahChief Information OfficerHisham Salah is the Chief Information Officer of SODIC. Salah has 25 years of professional experience in the areas of information technology and corporate systems including founding the first in-house residential fiber-to-the-home project in Egypt in 2009. Salah’s previous experience includes serving for eight years as Vice President of Technology at Palm Hills Developments, in addition to spending seven years with Microsoft as the Head of Communications sector and later, the Head of Government sector in Egypt, where he was responsible for sales and key strategic initiatives supporting the company’s growth. Before joining Microsoft, he contributed in establishing the Commercial International Life Insurance Company (CIL) as Head of Information Technology. Salah began his career in Commercial International Bank (CIB), where he held various positions in Information Technology and Operations. Salah holds a Master of Science degree in Information Technology from Middlesex University in London.

Yasser Elsaid Executive Director of Technical Department With 26 years of experience in the real estate, project management & construction in Egypt and Gulf area, Eng Yasser is managing and overlooking the portfolio’s Management team , control team and design team. Yasser joined SODIC in 2010 as Senior Projects Manager. He previously spent four years as a Project Manager in Gulf area ( Dubai ) based Nakheel Co. as well as having held the post of Construction Manager at Hill International Project Management Firm. In addition Yasser has spent nine years with ABB SUSA working in USAID projects all over Egypt and started his career working with Arab Contractors. Yasser holds a Bachelor degree of Civil Engineering from Mansoura University on 1991.


Awards

With a history of almost two decades of successful operations in Egypt , SODIC is a globally recognized developer

• 2013: Best Residential Project – Built (Allegria)• 2013: Best Commercial and Mixed Use Project – Future (The

Polygon)• 2015: Best Mixed Use Project (SODIC West)• 2017: Best Commercial Project (The Polygon)• 2017: Best Community, Culture & Tourism Project Westown

Medical Clinics

• 2016: Best Office Business Developer in Egypt (The Polygon)• 2014: Best Office Business Developer in Egypt (The Polygon)• 2013: Best Office Business Developer in Egypt (The Polygon)

• 2016: Best Residential Developer – Egypt• 2011: Best Developer Overall – Egypt• 2011: Best Mixed Use Developer – MENA• 2011: Best Residential Developer – MENA

• 2010: Enterprise Innovation Award for registering all of its trademarks with the Internal Trade Development Authority, an affiliate of the Ministry of Trade and Industry

• 2010: Best Developer Overall – Egypt• 2010: Best Mixed Use Developer – MENA

• 2011: “Best Company by BT100 Rank Change” at the BT100 Crystal Awards

• CNBC Arabian Property 2009: Best Architecture (Allegria)• CNBC Property 2008: Best Development in Egypt with a 5-Star

Award (Allegria)• CNBC Property 2008: Best Golf Course Development with a 4-

Star Award (Allegria)

• 2007: Award of Merit (Allegria) from the American Society of Landscape Architects (ASLA) for its master plan, developed by world-renowned master planners EDAW

EUROMONEY CITYSCAPE

EUROMONEY MINISTRY OF TRADE & INDUSTRY

BUSINESS TODAY EUROMONEY

CNBC PROPERTY AWARDS EUROMONEY

43

http://www.asla.org/index.aspx

http://www.asla.org/index.aspx


Diverse Shareholding Structure

Shareholders Breakdown(as at 31st of March 2018)

Number of outstanding shares: 342.3 million

Symbol: Index Inclusion:EGX: OCDI.CA EGX 30Reuters: OCDI>CA EGX 100

Share Information

Shareholders by TypeShareholders by Region

(as at 31st of March 2018)(as at 31st of March 2018)

44

13%

11%

9%

8%

4%4%3%

48%

Olayan Saudi Investment Company

Abanumay Family

Ripplewood Advisors L.L.C.

RIMCO

EFG Hermes Holding

Norges Bank

Juma Al Majid Group

Others

20%

80%

Individuals Institutional

27%

21%

41%

1%8%

2%

Egypt EuropeMiddle East AfricaNorth America Others


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 tosubscribe for or purchase securities of any kind and neither this document nor anything contained herein shall form the basis of any contract or commitment from any partywhatsoever. Information, including but not limited to financial information, in this presentation should not be considered as a recommendation in relation to holding, purchasingor selling shares, securities or any other instruments in or, in entities related to, SODIC or any other company.

This Presentation contains important and privileged information on SODIC which is solely owned by SODIC and may not be relied on or used by any person whosoever for anypurpose, and therefore shall be kept secret and confidential by any receiving party.

This document includes forward-looking statements. The words "believe", "anticipate", "expect", "intend", "aim", "plan", "predict", "continue", "assume", "positioned","may", "will", "should", "shall", "risk" and other similar expressions that are predictions of or indicate future events and future trends identify forward-lookingstatements. These forward-looking statements include all matters that are not historical facts. In particular, the statements regarding strategy and other future events orprospects are forward-looking statements. Recipients of this document should not place undue reliance on forward-looking statements because they involve known andunknown risks, uncertainties and other factors that are in many cases beyond the control of the Company. By their nature, forward-looking statements & projections involverisks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees offuture performance and the Company's actual results of operations, financial condition and liquidity, and the development of the industry in which the Company operates maydiffer materially from those made in or suggested by the forward-looking statements contained in this document. The cautionary statements set forth above should beconsidered in connection with any subsequent written or oral forward-looking statements that the Company, or persons acting on its behalf, may issue. Various factors couldcause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trends, theeconomic and political climate of Egypt, the Middle East and changes in business strategy and various other factors.

All information contained in this presentation, including but not limited to information relating to the Egyptian real estate and financial markets, are compiled from sourcesknown to be reliable and/or publicly available data reasonably assumed to be accurate (the “Source Data”). The Source Data may contain errors and/or inaccuracies; SODICprovides no warranties or guarantees of any kind, expressed or implied, and accepts no responsibility whatsoever, with regard to the accuracy, completeness or correctness ofthe Source Data used in the Presentation.

This disclaimer is to be considered an integral part of the Presentation and SODIC’s liability in respect of this Presentation and is to be governed by Egyptian law under thejurisdiction of Egyptian courts.

45

SODIC Investor Relations Contact Information

Heba [email protected]

Tel: +202 3827 0300

IR Websiteir.SODIC.com

Corporate WebsiteSODIC.com

46

q1 2018 investor presentation … · q1 2018 investor presentation land bank & portfolio¹ a...

Documents