tmg%20presentation%20-june%202010.pdf

8/14/2019 TMG%20Presentation%20-June%202010.pdf

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Company

Logo

Talaat Mostafa Group Holding Company

Group Presentation

une


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Safe Harbour Statement

Company

Logo

Certain information disclosed in this presentation consists of forward looking statements reflecting the current view of the, , .

cause the actual results, performance or achievements of the company to be materially different from any future results,performance or achievements that may be expressed or implied by such forward looking statements, including worldwide

account of trends, economic and political climate of Egypt, the Middle East, and changes in business strategy and variousother factors. Should one or more of these risks or uncertainties materialize or should underlying assumptions provencorrec , ac ua resu s may vary ma er a y rom ose escr e n suc orwar oo ng s a emen s.

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Outline

Company

Logo

TMG Corporate Profile TMG at a Glance

Share Data

Board of Directors and Corporate Governance, Executive Team and Business Partners

Strategy and Business Model, Quality Control and Operating Systems

Market and Operational Review

, ,

Financial and Operational Review, Hotels & Resorts Operational Review

Future Growth

Real Estate Development Plans And Projects Progress

Real Estate Future Growth Hotels & Resorts Future Growth

Investment and Risk Considerations


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Company

Logo TMG Corporate Profile

TMG at a Glance

Achievements and Growth Prospects

Share Data

Board of Directors and Corporate Governance

Executive Team and Business Partners

Quality Control and Operating Systems


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TMG

TMG at a GlanceCompany

Logo

success u , -year rac recor n w c . mn sqm o anwas developed and over 57 thousand real estate units with aBUA that exceeded 9 mn sqm were sold

Strong management capabilities with 10 board members, 13vice presidents, 3,000 employees and 60,000 on-sites workforce

50 mn sqm of quality land bank in prime locations and highgrowth areas

Geographic Diversification: Expanding in the region with an eyeon markets of shared similarities with the Egyptian real estate.

Business line Diversification to increase contribution of stableincome: Five additional Hotel & Resort projects currently underdevelopment

middle classes

Different styles and size of units that cater to changes ofincome levels, average household size, life style and consumerpreference

Three operational large scale luxury hotel complexes includinghigh-end residencies, shopping malls and office parks and softlaunch of a fourth boutique hotel specifically tailored tobusiness travelers

A earl turnover that reached EGP 14 bn in 2008 re resentin17.6 thousand units

A sales backlog of EGP 23.3 bn at the end of June 2010.

Healthy financial position and minimal gearing: cash EGP1.84bn, debt EGP 2.2bn, debt to equity ratio of 1:12 as at June

55

30,2010.


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TMGProjects Development

Company

Logo

66


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TMG

Company

Logo

2.5% 0.2%1.1% 0.5%

c evemen sBr eakdown of Sold Unit s Br eakdown of Land Bank

Growth Prospects

43.4%

2.8%.

48.7%

Developed8.5millionsqm ofland

Developmentrightsof50millionsqm inEgyptandKSA

Masterdevelopmentof8.14millionsqm ofqualityland

Soldover57thousandresidentialunits

Developedover9millionsqm residential

BUA

forstrategicnonresidentialdevelopersforvalue

creationandknowhow

Salesbacklogof23.3bn tobedeliveredandrecognized

overnext

four

years

o o ma na y res en a as

perrevisedprogramareawith19%

increaseinresidentialBUA*),47%ofAl

RehabIIand59%ofAlRabwa IIunits

1,725hotelkeysand2,524attachedresidentialunitsin

variousdesignanddevelopmentstages,upcomingin

next threetofouryears

77

war w nn ngopera ona o e s

*Revised

areas

of

November

2009

toreach35%oftotalrevenue(atargetof5,000hotelrooms)

Maintainminimumof35mn sqm oflandinventorythrough

ongoinglocalandregionalexpansion


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TMGShare Data

Company

Logo

TMG RE & TourismOtherma or

Shar eholder s St r uct ure Shar e Perf ormance

EGXRebased REINDEXRebased TMG

Investment *

50.27%

shareholders

25.75%

200

250

300

Other

shareholders

including free

float 50

100

150

23.98%

*Including Talaat Mostafa Family and Saudi group

0

31.

12.

08

25.

1.

09

15.

2.

09

8.

3.

09

30.

3.

09

22.

4.

09

13.

5.

09

3.

6.

09

24.

6.

09

15.

07.

09

06.

08.

09

27.

08.

09

17.

09.

09

13.

10.

09

3.

11.

09

24.

11.

09

17.

12.

09

10.

01.

10

1.

02.

10

22.

02.

10

15.

03.

10

07.

04.

10

29.

04.

10

20.

05.

10

10.

06.

10

4.

07.

10

25.

07.

10

15.

08.

10

21.62% YoYappreciationinsharevalue

valueby:

DeutscheBank: EGP7.8targetprice

EFG:

EGP12.9

OutperformingREindex(2.78%)downandEGX30(3.25%)down

asofAugust15,2010

JPMorgan:EGP10.7targetprice

HC AlFuttaim :EGP11.5targetprice,EGP15.1NAV

HSBC:EGP10.8targetprice,EGP13NAV

Citigroup: EGP10.1targetPrice

88

CreditSuisse:EGP10.38targetprice

CICapital

:

EGP10.2

target

price,

EGP

12.8


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Board of Directors and Corporate Governance

TMG

Company

Logo

Executive and non-

executive members with

longstanding experience

in real estate andconstruction in the MENA

Boar d of Dir ect ors

Hani Talaat Moustafa

Tarek Talaat Moustafa (Executive Chairman)

region

Four independent and non

executive members that

are publicly renowned in

Yehia Mohamed Awad

Omar Mohamed Awad

the economic, legal and

commercial circles

Audit, nomination and

remuneration committeesMahmoud Mohamed Mahmoud

Adel Fattouh Hammad

Ali Abdallah Ali (executive)

ave een appointe

The audit committee has

the responsibility to

review and approve

Mohamed Hisham Al Sharif

Hany Sarie El Din (Chairman of the nomination and remuneration committee)

Directors are bound by

non-compete rules in

Egypt.

Hossam Abdallah Helal (Chairman of the audit committee)

Shareholder directors Independent

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Executive Mana ement

TMG

Company

Logo

In addition to the board,

the executive

management of the

company is composed of13 Vice Pr esid ent s.

Execut iv e Chair man and Vice Pr esid ent s

Sherif Ghoneim V.P. Sales and Marketing, Joined: 1993

Tarek Talaat Mostafa (Executive Chairman)

A number of committees

including the Steering

Committee, Higher

Management Committee

Zaki El Guiziri V.P. Hotels & Business Development, Joined: 2004

Ali Abdallah V.P. Banking and Real Estate, Joined: 2000

Jihad M. Sawaftah V.P. Chief Financial Officer, Joined: 2004

and Executive Committee

support the Managementdecision making process.

Over 3000 pr ofessionals

Ahmed Afifi V.P. Madinaty Project Management, Joined: 1995

Gamal El Guindy V.P. Administration of the Chairmans Office, Joined: 1983

are irect y emp oye in

the various sectors and

subsidiary companies of

the Group.

. . ,

Ashraf El Banna V.P. Operations, Joined: 2005

Nagi El Touny V.P. Touristic Projects, Joined: 1994,

of approximately 60,000

t echnica l st a f f is

operational in the various

projects sites.

Sami Mokhtar V.P. San Stefano Project, Joined: 1992

Sabry Kamal V.P. Quality and Systems, Joined: 1995

Ayman Ali V.P. Human Resources, Joined: 2005

Mohamed Al Shazly V.P. Sales, Joined: 2001

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TMG

Company

Logo

e our easons an emp ns : n erna ona y repu a e mana emen c a ns o our o e s

A Joint Venture with Hill International for projects management

A joint venture with Al Mehedeb, Al Fawzan and Al Kahtani through Al Oula for Real EstateS.A.E, Local Saudi Partners for Saudi Developments

Top class worldwide contractors, master planners, designers of projects components andexecution:

Main contractor for our projects as Joannou and paraskavides, Hyundai, Murray and Roberts and Binladen The master planning of madinaty was made by a group of consulting firms from the United States: Sasaki,

SWA and HHCP and their Egyptian counterparts Cairo Group for planning and architecture

Architects as HKS, USA for sharm extension design WZMH, Canada for luxor design, Studio sergi, Italy formarsa alam design

MEP companies as MMM Canada for sharm extension nter or es gn compan es as , or uxor

Signature golf courses designers as Robert Trent Jones II and HHCP Design International

1111


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TMG

CompanyLogo

Integrated IntegratedprocesscapitalizingonbrandIntegratedprocesscapitalizingonbrand

development

concept

name,repu a onan exper encename,repu a onan exper ence

diversification

Inhouse

Stableandrecurring

incomefrom TopClass

DesignersReputable

Scaleand

Landbankpositioning

flexiblephasing

Operations

selffinancing

and

Contractors

Partners

construction

model

realestate

unitssalesFlagshipDevelopmentsFlagshipDevelopments

financingschemes

cateringto

customers'

Lowrisk,

model:

1212

affordability

thenconstruct)ngo nga tersa e ntegrate ac t es

management

operations

ngo nga tersa e ntegrate ac t es

management

operations


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TMG

CompanyLogo

Subsidiaries. The result is a smooth process integration between sales, accounting and treasury, withfacilitated financial and managerial reporting, streamlined accounting bookkeeping and consolidation,

improved administration of internal controls, corporate governance and transparency, and an optimized.

Feb 2008: qualified for the ISO 9001:2000 certification requirements for a quality management system and

1. needs to demonstrate its ability to consistently provide product that meets customer andapplicable regulatory requirements, and

. ,processes for continual improvement of the system and the assurance of conformity to customerand applicable regulatory requirements.

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Company

Logo Market and Operational Review

Macroeconomic Indicators

Tourism Market Drivers

Financial Review Consolidated Operational Review

Hotels & Resorts Operational Review


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Macro Economic Indicators

TMG

Company

Logo

Grow t h in Real GDP

The Government estimates GDP growth tobe 5.3% for FY 2009/2010 compared to 4.7%for FY 2008/2009

Growth in Construction & building was13.2% in FY 09/10 versus 11.4% in FY 08/09

Construction & building and tourismsectors constituted a roximatel 21% of 3.1%

4.1%

4.9%

6.9% 7.1% 7.2%

4.70% 5.30%

4.0%

6.0%

8.0%

FY 08/09 GDP

These sectors are main contributors infuelling GDP growth and have a greatsocioeconomic effects relating to

.

0.0%

2.0%

2002

2003

2004

2005

2006

2007

2008

2009

2010

Grow t h in Const r uct ion and Bui ld i ng Mater ia l

employment and dependent industries

The CBE have kept the overnight depositrate at 8.25 %, and the lending rate at9.75% since the reductions that took place

2001/

2002/

2003/

2004/

2005/

2006/

2007/

2008/

2009/

in 2009

Annual headline inflation reached10.72 % in July 2010, however experts

estimate it in the range of 13% for 2010 due

14.2%15.8%

14.8%

11.40% 13.20%

12.0%

16.0%

20.0%

o e r se o o a pr ces

Egypts net FDI reached US$46.72bn fromJuly 2004 to march 2010

Net international reserves reached

4.9% 4.3% 4.2% 4.0%

0.0%

4.0%

8.0%

002

003

004

005

006

007

008

009

010

1515

US$35.27 bn by the end of July 2010

2

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2

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2

003/2

2

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2

005/2

2

006/2

2

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2

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Real Estate market drivers in Egypt

TMG

Company

Logo

78.8 mn population with 60% under the age of 30, and 600,000 new marriages per annum

Growi ng popula t ion

Urban and general population growing by 3.1% and 1.9%, respectively

Growing middle to upper classes has created a growing demand for good quality, affordable housing

Supp ly / Demand Gap

Total demand of 450k units per year. Approximate demand of 225k units per year in urban areas

Supply/demand gap in urban areas of 5k, 50k and 70k in the High-end, Middle and Low-end residential units,respectively

favorable financing schemes broadens the pool of potential customers and has proved very successful in therecent Madinaty pre-sales

Development s t hat suppor t mor t gage f inance

upport ve government n t at ves ave e t e gypt an mortgages mar et to reac . n at en o ,up significantly from a very low base of LE 202 mn at the end of September 2005

A vast room for development with low penetration to GDP of less than 1%, and 62% of current mortgages

su lied b banks

Lower interest rates by the CBE and new mortgage companies entering the market are expected to boost up thereal estate market

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Tourism market drivers in EgyptTMG

Company

Logo

A fast-growing economic sector, with an average annual growth of 25 % in arrivals and 32.5% increase in

Key Figures

receipts over the past four years

12.54 million tourists visited Egypt and revenue from tourism was US$ 10.8 billion in 2009

Over 7 million tourists visited Egypt in the first half of 2010, up 21 percent from same period last year and,. .

Top hard currency earner, key contributor to GDP and employs 13.7% of the Egyptian workforce

The governments target for tourist arrivals in Egypt is to reach 14 million tourists generating US$12 bn by

Government in i t ia t ives t o support t our ism deve lopment

Offer variety in product and open new markets while maintaining prices

Increase hotel capacity to reach 240 thousand rooms by 2011/2012 up from 175 thousand rooms in,

Offer incentives and encourage investors to support the sector growth

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TMGFinancial Review

Company

LogoRevenue Cont r ib ut ion 1H 2010

1H 2010 Key f igures

Residential

90%

OtherRevenue

1%

: .

Cash and cash equi va lent s: EGP 1. 84 BN, 3 .4% of asset s

Tot al debt : EGP 2. 2 BN, 4% of asset s

o e s

9%Debt t o Equi t y Rat io : 1:12

1,9232,000

2,100

2,200Quart er ly revenue recogn i t ionAsset s Gr owt h

1,6381,606

1,5491,600

1,700

1,800

1,900

1,100

1,200

1,300

1,400

,

1,000

2Q2010 2Q2009 1Q2010 1Q2009Consolidatedrevenue1818

EGP MNEGP MN


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TMG

Consolidated Operational ReviewCompany

Logo

Quar t er l y p ro f i t sQuart er ly Review

100 200 300 400 500 600

2Q2010 2Q2009 1Q2010 1Q2009

RevenuesbreakdownRevenues

from

units

sold 1,742

1,478

1,447

1,402

RevenuesfromHotels 153 145 145 132

502

441

338

2Q2010

Otherrevenues 29 15 14 15

Totalconsolidatedrevenue 1,923 1638 1,606 1,549COGSbreakdownRealEstate&ConstructionCost (1,322) (1,158) (1,058) (1,008)

385

463

336

3212Q2009

HotelsCost (80) (88) (80) (67)

ServicesCost (19) (7) (5) (5)

Totalcostofgoodssold (1,421) (1,253) (1,143) (1,080)Grossprofit 502 385 463 469

469

422

422

324

1Q2010

1Q2009

GP% 26% 24% 29% 30%

SG&A,Otherincomeandexpenses (61) (49) (41) (47)

Netprofitbeforetax 441 336 422 422NPBT% 23% 21% 26% 27%

incometaxanddeferredtax 81 8 77 80

Grossprofit Netprofitbeforetax NetprofitEGP MN

NetProfit 360 328 345 342NP% 19% 20% 21% 22%

Minority'sshare (22) (7) (21) (28)

attributabletoshareholders 338 321 324 314

19

18% 20% 20% 20%


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TMGH&R Operational ReviewCompany

Logo

65% 64%

80%

175

200

Nil e Pla zaARR and Rev Par

400

40%

60%

100

125

150

OP%

nue(EGPMn)

371 360200

250

300

155 154

20%

25

50

75

G

TotalReve

213 223

-

50

100

150

40%100

0%0

1H09 1H10

70%Sharm El SheikhSan St ef ano

1H09 1H10

combined ARR combined Rev ParUSD

25%

25%

30%

35%

60

70

80

90

EGP

Mn)

56%58%

50%

60%

100

120

EGP

Mn)

14%

10%

15%

20%

30

40

50

GOP%

TotalRevenue(

90

108

20%

30%

40

60

80

GOP%

TotalRevenue(

3136

0%

5%

10

1H09 1H10

0%

10%

20

1H09 1H10

2020


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Company

Logo

Future Growth Real Estate Development Plans

Real Estate Future Growth

Hotels and Resorts Future Growth


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TMG

Company

Logo

Future Growth

ea s a e eve opmen

Capitalizingon

landbank in

existing

projects

The tar et is to build a stock of 5 000 hotel MasterDevelopmentandsaleofprimeland

plots;valuecreatedthroughprojectdevelopmentandunitsdeliveryover10tenyearperiod

rooms with a minimum IRR of 18%, andincrease the contribution of stable income to35% of total revenue

Development of hotel projects in the pipeline,

Lookingforworthwhileopportunitiestoexpandlandbank inEgypt

Expandingintheregionwithaneyeon

early launch of real estate sales to co-finance

development and enhance returnsContinue to grow through purchase of

minorities when the opportunity arise

Egyptianrealestatemarkets

Thetargetistohaveaminimumlandbank of

35million

sqm at

any

point

of

time

Looking for further local opportunities thatenjoy prime location and have a market gap toincrease weight of stable income from hotels

operations.

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TMG

Real Estate Develo ment PlanCompany

Logo

2010RealEstateMarketconditions: . .

FY09/10)andconstructiongrowthof11.4%

Solidfinancialsector;NoactualproblemintheEgyptianrealestatemarket

Astate

of

pent

up

demand,

buyers

are

adopting

atemporary

wait

and

see

approach

that

will

eventually

end

Astateofstagflationresultingfromovermoneysupplymayfollowin2010

TMGatstartof2010:

Deliverydates

of

large

scale

developments

starting

April

2010

TMGs lanfor2010: Introduceproductsthathavetherightmixofsizeandspaceutilization

Offeraffordablefinancingschemetoattractnewbuyers

Deliveryof

sold

units

in

Madinaty and

Rehab

Extension

with

required

services

making

the

cities

alive

and

rea y ort eres entsmove n

OpeningofNileKempinski HotelinCairo

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TMG

Company

Logo

Madinaty: development progress

Locat ion new Cai r o

Tot al land si ze (m2) 33,600,000

Key st at ist i cs* Madinat y - % of Sold Resident ia l BUA

an ar ea o e ev. m , ,

BUA t o be dev. (m2) 20,856,908**

Land f or mega development s 7,450,380

Ex ect ed o ulat i on 600 000

Sold

BUA

Commence dat e July 2006

Rev i sed complet i on dat e 2020

% of sold r esident ia l BUA: 30%*

Available

forsale

70%

Pro j ect descr ip t ion*

Mix-use community designed by three prominent American companies

Construction is to take place over 6 overlapping phases, each 3-4 years long

Intended residential BUA of 16.82 million m2 (19% increase in BUA)*

In addition to business district, international hospital, a university, 22 schools and 3 shopping malls

* As per revised program area of November 2009 ** including estimated BUA on land for mega developments

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TMGMadinaty Phase I:

Company

Logo

delivery of residential units with complete community services in 2010Phase I Resid ent ia l Unit s t o be Deli ver edKey st a t ist ics

. , ,

Resi dent i a l land ar ea 7,208,040

Faci l i t i es l and ar ea 621,971

Resident ial BUA 3,199, 981

Land Use Area/feddan Area/m2 TotalBUA/m2 No.ofUnitZone1Apartment 267 1,119,300 1,111,754 6,524

Zone6Apartment

245

1,029,000

1,136,896

10,518

Expect ed populat i on 68,620

Commence dat e Jan 2007

Del i ver y dat e Apr i l 2010- Dec 2011

TotalApartment 512 2,148,300 2,248,650 17,042Zone(I)VillaGolf 507 2,128,140 390,662 1,105

Zone(II)VillaGolf 698 2,931,600 560,669 1,381

TotalVillas 1,205 5,059,740 951,331 2,486

Serv ices: Nor t hern Dist r ict

% of developed land ar ea: 23% o a es en a n s , , , , , ,

Area/ Area/Serv ices: Sout hern Dist r ict

Area/ Area/ Area/ Area/Ot her Faci l i t ies

LandUse feddan m2languageschool 6.7 28,140

Britishschool 9.0 37,632

mosque 2.6 10,858

an se e an mpublicschool 5.7 24,066

restuarants,foodcourt,

retailandhypermarket 9.0 37,800

oliceand

fire

bri ade 0.7

2 864

Land Use feddan m2

phase1ofsportsclub 90.0 378,000

60retailshops

commercialcenter 1.4 5,903

. ,

centralpark 5.0 21,000

districtpark 3.0 12,600

27.7 116,530busstation 1.0 4,074

districtmanagement 0.8 3,209

carservice 0.4 1,652

telephoneexchange 1.4 5,873

centers:

mosque,adminbuilding,

commercialshops,

nursery 5.0 21,000

26

districtpark, 5.0 21,000

Children playarea,lakes

area

23.9 100,538

Villas GolfCourse

RoadsandCityGates


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28/39

TMG

Company

Logo

Al Rabwa Development Progress

Key st a t ist ics Al Rabwa II - % of Sold Uni t s

Locat i on: Six t h of October City

Tot al land si ze (m2) 2,137,828

. ,

BUA t o be dev. (m2) 118,320

Expect ed populat i on 4,965

Commence dat e Januar y 2006 (Rabwa II)

Pro j ect descr i p t ion

Revi sed complet i on dat e 2012

% of sold r esident ia l uni t s (Rabwa II): 59%

Al Rabwa I

an exclusive compound targeting the high end

Construction is completed and consists of 648 villas, ashopping centre, 9 hole golf course and sports pavilion.

The development is fully sold and covers a land area of1,318,800 m2

Al Rabwa II

Al Rabwa II will follow a similar model consisting of 340 villas

and an interlinking 9 hole golf course28


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TMG

CompanyLogo

Capitalise on Land with unrecognized value

2010:

Delivery of residential units2010 2020

Master develo ment and sale

2010 2020

Estimated land sale of

infra structure in Rehab II andMadinaty

of sqm 8.14 mn land plots inprime locations for strategic

non residential use

500ksqm/annum at anestimated selling price of

EGP 10K/sqm

Master planning and development of high quality land plots all set with the required infrastructure

Land value created as a result of the develo ment ro ress and deliver of a full-fled ed hase of the ro ect

To be sold to strategic partners that would bring a know-how, fill an existing gap in the area; e.g. medicalprojects, banking corporations, large exhibits, key service providers, etc.

e p an s o crea e more va ue o e pro ec , en ance e opera ona cas ow an ac eve more avoura eprojects returns

To be launched over a 10 years period starting 2010 after delivery of phase I units at an estimated selling price

29

, .


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TMG

CompanyLogo

Location of Land with unrecognized value

Al Rehab Madinaty

30


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TMGReal Estate Future Growth:

Company

Logo

Geographical Diversification: Nassamat Al Riyadh, Kingdom of SaudiArabia

Pr oj ect descr i p t i on Development Pr ogr ess

Location Riyadh

Total land size (m2) 3,000,000

Estimated BUA to be developed 1,609,575 Established Areez, a joint stock companyPotential extension land (m2) 1,001,081

Sales launch date 2010

Completion date 2013

n ec e m on cap a

Purchased 4 mn sqm of land

Obtained higher authority of Riyadh Cityapproval of development plan

Key stat ist ics Apar t ment s

Issued construction licence

Signed financing agreement with Riyadh bank

assigned on-site workforce

Units 2112

Apartments average size 214 sqm

a ne approva o se o p an rom auauthorities and the specially formed realestate committee and became listed in Saudidevelopers register in May 2010

Key st at ist ics Vil la s

Units 2,033

Villas average size 425 sqm

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TMGHotels and Resorts Future Growth

Company

Logo

Business line Diversification to increase the contribution of stableincome to total revenue

Ta r et ed Fu tu re Growth

Reach 5,000 hotel rooms with a minimum IRR of 18%, and increase the contribution of stable income to35% of total revenue

Acquisition of Marsa Alsadeed land in Sharm El Sheikh, upon which an extension of the existing FourSeasons resort will be constructed

St eps t aken to ach ieve tar geted growt h

urc ase o an n own own a ro o eve op a g -en o ce an o e comp ex

Purchase of Sednawy Villa adjacent to the Nile Hotel to develop an exclusive business club and parkingthat will also serve the hotel

Obtained a 50 ears renewable concession a reement to develo a resort on Sultana Malak Land in aprime location in the historic city of Luxor

signed up management agreements with the Four Seasons renowned chain to operate the hotels inLuxor, Madinaty, and Sharm Extension and appointed Kempinski to operate the Nile hotel

a se owners p sta e to o t e our easons arm e - e esort y acqu r ng t e .minority stake held by Kingdom Hotel Investments (KHI)

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TMG

Company

Logo

Bu -up o 2,600 ote rooms

2014

FourSeasons

2014

Marsa

2013

TMGBuildingHotel

Operational: 684 rooms / keys

Soft Launch July 2010: 191 rooms / keys

Under development: 1,725 rooms / key

Madinaty

Four

2012Four

SeasonsLuxor

2013 Alam

Nile Hotel

2010

Seasons

SharmExtension

2004

SanStefano

Nile Plaza

FourSeasonsSharm

2001

33

237021721172971875684566200 2600


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TMG

Company

Logo

Upcom ng ote pro ectsNil e Hot el Development Pr ogress

Rooms/ keys :191

Operator: Kempinski

Land area: 2 k s m

Hotel is complete

Sednawy Villa extension is being revamped

BUA: 19.8 k sqm

Soft launch of operations July 2010

Four Seasons Sharm Ext ension Development Pr ogress

Rooms/ keys :96

Residential properties: 114Operator: Four Seasons

Land area 960 k sqm

Purchased land

Finished design

BUA: 490 k sqm

Appointed four seasons management company

Marsa Alam Development Pr ogress

Rooms/ keys :750

Residential properties: 2250

phase one : 1000 units

Land area 3.2 mn s m

Purchased land

Finished design

Obtained TDA a roval

34

BUA: 390 k sqm Issued licenses and permits


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TMG

Company

Logo

Upcom ng ote pro ectsFour Seasons Luxor Development Pr ogress

Rooms/ keys :201

Operator: Four Seasons

Land area 20 k sqm

Signed concession agreement

Finished design

Issued licenses and permits

Four Seasons Madi nat y Development Pr ogress

BUA: 43 k sqm Appointed four seasons management company

Rooms/ keys :240

Residential properties: 100Operator: Four Seasons

Land area 175 k sqm

Finished design Appointed four seasons management company

BUA: 49 k sqm

TMG Buil di ng Hot el Development Pr ogress

Rooms/ keys :200

Operator: TBD

Land area 2 k sqm

Purchased land

Finished design

Issued licenses and permits

35

: sqm


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Company

Logo

Investment Considerations

Risks and Mitigants

TMG


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TMG

CompanyLogo

RealMarketneed

Conceptandsellingfeatures

Invest

ExperienceandTrackRecord

entCon

Integratedlowrisk,selffinanceBusinessModel

iderat

ioGuaranteedrevenueandprofitability(salesbacklog)

s

HealthyfinancialPosition

HighGrowthProspects

37

TMG


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TMGRisks and Miti ants

Company

Logo

Risks Mitigants

Entry barriers to prospective new comers:

Integrated Business Model

First mover advantage

Compet i t ion

f r om new

en t ran t s

A diversified growth plan with no over-dependence on onerevenue segment.; Revenue growth in one segment is likelyto offset sluggish growth in another

Fai lu r e t o

achieve

overa l l ew pro uc s an an eve opmen easgrowt h t a rget

Product features that meet customers needs andDi f f i cul t y t oaffordability

A carefully planned promotion strategy that aims atintroducing the product idea and publicizing its value to

the target market

a t t r a c t

cust omers t o

t he new

product idea

A safety cushion of a sales backlog that exceed EGP 23.3 bnto be recognized over next four years

Stable income from o eratin assets

Economic

Slowdown

Entering new markets with high growth potential

38


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Company

Logo

Thank you

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