Investor Presentation - Amazon S3...Investor Presentation December 2014 All figures as at end of 30...

Investor Presentation

December 2014

All figures as at end of 30 September 2014, unless otherwise stated

Outline

1. Introduction

A. Why Egypt

B. Real Estate Sector

D. 2014 A Year in Review

2. SODIC Backdrop

A. SODIC Quick Overview

B. Clean and Growing Land Bank

C. Looking Forward: Our Strategy

D. Experienced Management Team

5. Annex

A. Projects Overview

4. Operational & Financial Performance

A. Sales Performance & Unrecognized Revenues

B. Launched Projects’ Profitability

C. Delivery and Execution

D. 9M 2014 Vs. 9M 2013

C. SODIC’s Unique Value Proposition

B. Awards

B. Egypt Macroeconomic & Real Estate Sector Overview

Introduction

Why Egypt

³ Source: KPMG report “AFRICA’S CONSUMER STORY”

Population of

90 Mn¹

500,000Units…

Tangible Improvement in

Political & Economic Backdrop

The largest in the region60% below the age of 30Growing at a rate of 2%

Sizable annual demand for housingIn addition to housing shortage of 1.5m units

Retail sales of EGP

868 Bn²Estimated to reach EGP 1,400 Bn in 2018²Currently formal retail accounts for only around 2% of total retail trade³

Government achieving significant strides with reformsFDI picking up targeting US$6bn in 2015, with spill over effect on commercial property market Revival of tourism activity +71% in 3Q14Banks increased appetite for lendingGovernment reopens land supply, explores different models including profit sharing & in-kind payments

1 Source: CAPMAS, IMF, US Census, Central Banks of respective countries and Industry reports; Data as at 31/12/2013 ²Source: EIU

3.5% GDP growth in 2015

With a GDP of US$ 280Bn Egypt remains one of the largest markets in the region Re-embarking on the growth trajectory with GDP growth set to reach 4% growth in 2017

4

Favorable demographics; young & growing population

Annual demand for housing estimated at 500,000 units

Strong performance of gated communities vis-à-vis haphazard developments

Significant price increases backed by real demand as well as inflation and devaluation fears

Gross sales for key developers well above pre-revolution levels

ResidentialGross Pre-Sales of Key Developers¹EGP Mn

¹ Key developers include SODIC, Palm Hills and Talaat Mostafa

Strong performance

despite downturn, backed by

fundamentals

Source: JLL

Against this improving economic backdrop, the country is witnessing increased confidence in the real estate market.

Demand remains relatively active across all segments and developers are moving forward with both new and re-launched projects.

Rental growth is expected to accelerate across all real estate asset classes giving way for further property appreciation

Strong fundamentals

and an opportune entry point

Rents Falling

Rents Bottoming Out

Rental GrowthAccelerating

Rental GrowthSlowing

OfficeRetailResidential

Q3 2014JLL: Cairo Prime Rental Clock

Residential and beyond

Real Estate Sector

5

Commercial

Retail

Increased interest from international tenants with the influx of FDI

Improved bank appetite to lend will help expedite development as well as support property purchases by local companies that prefer to own rather than lease office space

Currently formal retail accounts for only around 2% of total retail trade.

Cairo organized retail space per capita estimated at 0.06 well below regional averages

Secondary cities virtually untapped

Fragmented market with

huge potential for organized retail space

Market to rebound given the improved

operating environment

Hospitality

Tourism set to revive on the

back of political stability

Residential and beyond

Attractive investment opportunities in undeveloped areas such as the West coast of the Mediterranean

Tourism activity picking up with tourist nights increasing by 71.1% y-o-y in 3Q14

Foreign Direct InvestmentsUS$ Mn

Source: CBE, analyst estimates

Retail SalesEGP Bn

Source: EIU

Real Estate Sector

6

7

Significant Brand Equity

Strong demand for SODIC products (93% of launched inventory sold)

Pricing at a premium to the market Reputation of timely deliveries One of the first to settle disputes achieving

a clean land bank in 2014

1

Track Record & Management

Full cycle experience: Successful navigation through the downturn

Strong operational performance & resilient financial results

11 successfully launched projects Management continuity since 2006

2

Significant in house capacity with a team of 476 professionals

Ability to acquire and execute sizable plots (301 plot launched 6 months from award)

Capacity to raise the required funding to secure timely execution

Strong relationship with suppliers

3

Solid Growth Strategy

Execute existing pipeline: EGP 17bn over 5 years

Expand land bank: acquisitions &/or asset light structures

Diversify locations: coastal cities and secondary cities

Build up recurring income portfolio

Scalable Operation

SODIC’s Unique Value Proposition

2014 A Year in Review

8

Eastown settlement, 301 award & new launches on EastownResidences

2Q14

Eastown settlement of EGP 900 million payable over 7 years

Ripplewood acquires 9.4% stake Eastown Residences (ETR) Phase V launch

worth EGP 246 million selling out 301 Acre award letter received ETR Phase VI launch worth EGP 359 million

selling out EGX approves capital increase subject to EGM

approval

Strong start to the year’s sales, Solidaire settlement & drawdown on syndicated loan

3 mega villas sold in Allegria worth EGP 52 million; 27 offices sold in The Polygon worth EGP 79 million

Amicable Settlement with Solidere International (SI) unlocking 250,000 sqm of land in the heart of Westown

Westown Residences Phase X launch worth EGP 531 million selling out

SODIC West Syndication Drawdown: Tranche A worth EGP 330 million, refinancing 3 existing facilities

1Q14

Shoring up our finances, both debt & equity, ETR Launch fully sold

Signature of EGP 950 million loan with AAIB (301 Acre); EGP 255 million drawdown in less than 2 weeks

EGM approves EGP 1 billion capital increase to existing shareholders

Signature of EGP 300 million loan with CIB (SI Blocks)

ETR Phase VII launch worth EGP 353 million selling out

3Q14Capital increase 99.3% subscribed for, new launches on Westown & SODIC East

Successful closure of circa EGP 1bn capital increase

New launches on Westown Residences Courtyard EGP 250 million

New Launches on SODIC East

4Q14

SODIC Backdrop

Brief Overview

Egypt’s trusted developer, emerging stronger post revolution

1 Since Inception, excluding Beverly Hills including commercial and retail² As of 30th September 2014

SODIC Quick Overview

Key Highlights

Of Contracted Sales 1, over 4,800 units

EGP 11.4 bn, Of unrecognized revenue²

EGP 5.1 bn, Of sellable inventory²

EGP 730 mn, Of receivables backlog²

EGP 4 bn,

Of non launched & raw land bank²

3.6 mn sqmCollection rate for receivables²

Over 96%Delivered units 1

Over 1,800 EGP 17.0 bnExpected Sales from Non Launched and Raw Land Bank

10

Building on a history of almost 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, SODIC is one of the few non-family owned companies traded on the EGX, with a strong corporate governance framework

Having invested over 1.4 billion dollars in developing eleven diverse real estate projects, SODIC boasts a portfolio that has contributed over 3 million square metres of built up area to Cairo’s new urban communities³.

³ Including Beverly hills

Impressive Growth Performance Despite the Downturn

Record gross contracted sales set to exceed 2013

SODIC has grown by every metric since 2011

EGP Mn

Cancellations at an all time lowPct of Gross Sales

Continuing to Deliver on ScheduleUnits Delivered

Receivables doubled while delinquency dropped to a record 4%EGP Mn

Significant addition to land bank in 2014Mn sqm

58%42%

Existing Newly acquired

Market Cap more than doubled in 2014EGP Bn

4.8 Bn

2 Bn

2014 2013

* As of 30 Sept 2014

3.6Mn sqm1,724

2,452

3,604 4,076

2011a 2012a 2013a 2014a*

11

259

424

684

342 316

2011a 2012a 2013a 9M13 9M14

99%

11% 9% 9% 6%

2011a 2012a 2013a 9M13 9M14

741

1,819

2,730

2,160 2,155

2011a 2012a 2013a 9M13 9M14

Clean & Growing Land Bank

12

With 3.6Mn sqm of unutilized land SODIC is developing around 760,000 sqmannually, bringing to the market EGP17Bn of inventory over the coming 5 years

Significant presence in both East and West Cairo

Unlaunched & Raw LandUnlaunched & Raw LandLand Utilization

Clean & Growing Land Bank

13

9.7m sqm¹

3.6m sqm

3.6m sqm

Land bank sits free of any legal disputes

Total Land Bank 2.2mn sqm Total Land Bank 7.5mn sqm

2. Unlaunched Projects Land AreaWestown Residential 359k sqm

Westown Retail/Commercial 91k sqm

The Strip (Phase 2) 82k sqmThe Polygon 9k sqm Total Non Launched 519k sqm3. Raw LandAl Yosr 1.26mn sqmTotal Raw Land 1.26mn sqm

1. Launched Projects Land AreaAllegria 2.4m sqmForty West 56k sqmWestown Residence 584k sqmThe Polygon 44k sqmThe Strip 105k sqmWestown Hub 50k sqmCASA 294k sqmBeverly Hills 1.9m sqmOther2 260k sqmTotal Launched Projects 5.7mn sqm

1. Launched Projects Land AreaEastown Residential 322k sqmKattameya Plaza 126k sqmTotal Launched Projects 448k sqm2. Unlaunched ProjectsEastown Residential 377k sqmEastown Retail 159k sqmVillette [301 Acre] Residential 1.0mn sqmVillette [301 Acre] Retail/Comm. 229k sqmTotal Non Launched Projects 1.79mn sqm

West Cairo East Cairo

1 Excluding Syria Land Bank (Fully Impaired)2 Includes Designopolis, BISC and Infrastructure assets

Looking Ahead: Our Strategy

14

Execution of EGP 17Bn worth of unlaunched inventory Delivering some 8,000 residential units over the coming 6 years Collect EGP 4 bn of receivables of existing sales while maintaining a collection ratio

above 95%

Execution of existing pipeline

Expand land bank

Build up recurring

income

Other long term upside

potential

Locations of interest include:− New urban communities (East & West of Cairo)− Secondary homes on coastal cities (significant cross selling opportunity &

mitigating our current seasonality of primary homes sales)− Secondary cities offer untapped opportunities in Egypt

Exploring JV’s, 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 20% of our revenues Adding circa 120,000 sqm of GLA to our currently launched lease portfolio aiming to

reach circa 165,000 sqm of GLA Leveraging our existing property and facility management company EDARA and further

developing its expertise

Monetize Syria land (completely written off the balance sheet) Develop El Yosr (1.3M sqm of raw land in West Cairo)

Executive Management Team

15

Joined SODIC in 2009 Previous experience includes

senior roles at Nakheel, Hill International Project Management Firm, Turner International and Bechtel Inc.

MBA from Golden Gate University, B.Sc. from UC Berkeley

Managing DirectorMr. Ahmed Badrawi

Appointed MD in 2013 Joined SODIC in 2006 Previously founder of InfoFort

Egypt’s first records management business, launched the Daily Star Egypt

Law degree from University of London

Joined SODIC in 2013 Previously Investment Banking

Division Director at BeltoneFinancial having executed many of the landmark real estate transactions in Egypt

Bsc Business Administration from the AUC and is a CFA Charter holder

Joined SODIC in 2007 Previous experience includes 7

years at the consumer relations department in British American Tobacco as well as in the marketing department of McDonalds

Bsc from the American University in Cairo

Joined SODIC in 2010 Previously Managing Partner at

Delta Enterprises, USA. Co-founder and CEO of SarmadyCommunications

Masters from Georgia Institute of Technology, undergraduate degree from Carnigie Mellon University

Chief Technical OfficerEng. Shehab el Orabi

Chief Financial OfficerMr. Omar El Hamawy

Executive DirectorOf OperationsMr. Ashraf Farid

Joined SODIC in 2007 Previously held managerial

positions at Al-Futtaim Group & Allianz Group

Bsc in Economics and Financial Management from Cairo University, Associate of the Chartered Insurance Institute in London (ACII) - (UK)

Chief CommercialOfficerMr. Ahmed Labib

Chief Projects Development OfficerMr. Basil Ramsy

Leadership continuity since the turnaround in 2006

Operational & Financial Performance

16

FY 2014 is expected to exceed record breaking FY 2013

2013

Some EGP 10.4 billion of net sales since 2008 of which 55% yet to be recognized

Annual Net Sales (EGP Million)

171 Monthly Sales from January 2008 to Sept 2014. Unrecognized revenues accounting for EGP 5.7 billion as at 30th of September 2014.2 Actual Contracted Net Sales as at 30th of September 2014.

2008 2009 2010 2011 2012

Regular Operating Environment

Global Financial Recession


Jan 25th Revolution Regular Operating

Environment June 30th

Revolution

9M14


Cumulative Net Sales (EGP mn) Net Sales (EGP mn)

21,884

849

1,839

6

1,619

2,478

2,019

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Launch of:• WTR phases 7, 8

& 9• Eastown

Residences “ETR” phases 1 to 4 account to 50% of total sales

Allegria Phase 1&2 launch

Some 650 Allegria units contracted

Launch of:• Allegria phase 3 &

4• The Polygon• Forty West • The Strip

Cumulative Sales:EGP 2.7 Billion

KP launch achieving EGP 250 million of sales

Cumulative Sales: EGP 4.6 Billion

Launch of:• Small offices in The

Polygon • Westown Residences

“WTR” Phase 1 Turmoil causing EGP

735 million in cancellations


Launch of:• Allegria phase 5• WTR Phases 2 to

6 WTR achieved

sales of some EGP 1 billion


Launch of:• WTR phases 10• ETR phases 5-7 • WT Courtyard

2

Sales Performance & Unrecognized Revenues1

6,019 6,437 6,720 6,826 8,338 8,855

10,000

Phase I Phase II Phase III Phase IV Phase V Phase VI Phase VII

Project Profitability

Launched Projects’ Profitability GPM of 34% on some EGP 10 billion of unit sales

Pricing Ability

Sellable Inventory Profitability 1 Percentage Sold (Value)

181 All figures in EGP unless otherwise stated 2 Unsold Allegria inventory amounts to EGP 188 mln (16 units),

Total Inventory Development Cost3 Sold Inventory

Projects’ GPM 4

Project (EGP millions)

Allegria2

Polygon

Forty West

KP

WTR (I-X)

Total

4,392 2,731 4,202 38%

712 659 539 31%

589 512 394 33%

641 426 624 33%

2,233 1,304 2,220 42%

10,747 34%

Sold Unsold

96% 4%

76%

67% 33%

99%1%

93% 7%

24%

ETR (I-VII) 2,179 1,490 2,043 32% 94%

10,023

6%

7,097

Eastown Prices (EGP/sqm)

May ‘13 May ‘13 June ‘13 Sept. ‘13 May ‘14 June ‘14Launch Date

66% increase

Sept ‘14

97% 3%

3 Includes the investment cost of leasable assets 4 Expected gross profit margin, excluding NPV adjustments

Delivery and Execution1

SODIC delivered some 316 units during 9M 2014 across 8 different projects, namely: Allegria, Kattameya Plaza, Forty West, The Polygon, The Strip, Casa ,WT Hub & WTR

ProjectNumber of

Units Delivered

Units %

DeliveredInvestment

Cost2

%Completion3

Delivery Start Date

Delivery End Date

1 All figures as at 30th of Sept 2014.2 Investment cost represents the expected construction and land costs. Figures are in EGP millions. 3 Percentage completion represents CAPEX paid, with the exception of Eastown and Allegria all projects land cost has been fully paid

4 Westown Residences Phase I shows an 96% development completion on a standalone basis.5 CASA is a jointly owned project (80% Palm Hills subsidiary & 20% SODIC). SODIC owns 63 apartments

Over 4,900 units under development (36% delivered) with an investment cost of some EGP 7.4 billion

Delivery Execution

19

Allegria

Kattameya Plaza

Forty West

WT Residences (I-X)

The Polygon

The Strip

WT Hub

Total

1,255 1,094 87% 2010 2,731 90%

474 382 81% 2013 426 98%

133 55 41% 2012 512 90%

1,391 87 6% 2013 1,304 33%4

250 110 44% 2013 659 74%

84 24 29% 2012 241 76%

47 2 4% 2014 90 94%

4,983 1,801 36% From 2010 to 2017 EGP 7,453mn NA

2015

2015

2015

2017

2016

2015

2015

ET Residences (I-VII) 1, 286 - - 2016 1,490 11%2017

CASA5 63 46 73% 2013 NA 100%2015

9M 2014 Vs 9M 2013

Building on strengths

Item (in EGP mn unless otherwise stated)

9M 2014

20

9M 2013Variance

%

Gross Contracted Sales

Net Contracted Sales

Net Contracted Sales From New Launches

Cash Collected

CAPEX

Number of Units Delivered (units)

Value of Units Delivered

Gross Profit

Net Profit

2,156

2,019

2,159

1,965

0%

3%

Number of Units Sold (units) 901 1,099 -18

1,348 1,285 5%

60%

546 628 -13%

316 347 -8%

903 672 34%

309 252 23%

110 80 38%

Debt Raised/Secured 2,150 343 526%

Cash at banks & on hand 1,034 456 127%

1,478 925

Annex

21

Launched Projects Summary¹

22

NA

1 As at 30 Sept 2014

Gross land area 2,428,283 126,000 53,105 56,012 943,254 699,405 187,801 50,090

Gross BUA 568,774 121,739 91,338 51,997 606,205 573,725 52,296 15,576

Entertainment

retail complex

Upper Middle

Class

Apartment

Buildings

Integrated

mixed-use

office park

High-end

Apartments

Various Types

of Residential

Units

Residential

Units

Retail stretch

mall

Residential

Single Family

Units

Project

description

Launched as a

pct of project

gross land area

Value sold as a

pct of launched

Delivery

Execution

100% 100%100% 82% 100% 62% 46% 56%

97%96% 76% 94% 98%67% 99%

78%79% 46% 0%45% 9% 56%

98%90% 74% 11%90% 33% 76% 94%

Project Overview

23

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

1 Including land costAll figures as of Sept 2014 in EGP mn unless otherwise stated

Launch date 2008 Receivables outstanding 840

Gross Land Area (sqm) 2,428,283 Development cost for launched¹ 2,731

Total BUA 568,774 Capex remaining for launched 10%

Launched BUA 568,774 Delivery start 2010

Launched inventory value 4,392 Delivery end 2015

Sold inventory 4,204 Value of units delivered 3,314

Units launched 1,255 Number of units delivered 1,094

Project Overview

24

Project descriptionForty West is an exclusive development with a cutting-edge design by acclaimed Boston-based Machado and SilvettiArchitect. 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.



Gross Land Area (sqm) 56,012 Development cost for launched¹ 495



Launched inventory value 589 Delivery end 2015

Sold inventory 394 Value of units delivered 177

Units launched 133 Number of units delivered 55

Gross Leasable Area 9,732 Estimated Lease Income 14

Project Overview

25

Project descriptionWestown’s first residential neighbourhood, 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.


Launch date 2011 Receivables outstanding 1,356

Gross Land Area (sqm) 584,331 Development cost for launched¹ 1,304




Sold inventory 2,220 Value of units delivered 196

Units launched 1,391 Number of units delivered 87

Project Overview

26

Project descriptionThe Polygon consists of nine ‘Class A’ office buildings designed by multiple-award-winning UK-based architectsWilkinson-Eyre. The Polygon offers over 70,000 sqm of state-of-the-art office space, designed to accommodate both smaller and large businesses.

1 Including land cost ²Launched areas onlyAll figures as of Sept 2014 in EGP mn unless otherwise stated






Sold inventory 539 Value of units delivered -

Units launched - Number of units delivered -

Gross Leasable Area² 17,152 Estimated Lease Income² 23

Project Overview

27

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


Launch date 2012 Development cost for launched¹ 66

Gross Land Area (sqm) 50,090 Capex remaining for launched 6%

Total BUA 15,576 Delivery start 2014

Launched BUA 15,576 Delivery end 2015


Project Overview

28

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 ²Launched areas onlyAll figures as of Sept 2014 in EGP mn unless otherwise stated









Project Overview

29

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.









Project Overview

30

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

1 Including land cost ²Residential BUA onlyAll figures as of Sept 2014 in EGP mn unless otherwise stated

Launch date 2013 Receivables outstanding 1,356

Gross Land Area (sqm) 857,963 Development cost for launched¹ 1,490

Total BUA² 573,725 Capex remaining for launched 89%



Sold inventory 2,043 Value of units delivered -

Units launched 1,286 Number of units delivered -

Awards

A globally recognised developer

31

EUROMONEY CITYSCAPE

EUROMONEY MINISTRY OF TRADE & INDUSTRY

2013: Allegria - best residential project –Built

2013: The Polygon - best commercial and mixed use project – Future

2014: Best office business developer in Egypt (Polygon)

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 Ministry of Trade and Industry

BUSINESS TODAY EUROMONEY

CNBC PROPERTY AWARDS EUROMONEY

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: Allegria best architecture

CNBC Property 2008: Allegria best development in Egypt with a 5-star award

CNBC Property 2008: Allegria best golf course development with a 4-star award

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

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

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

Egypt Macro Economic and Real Estate Sector Overview

32

8.1%

9.8%10.8%

13.7%

12.0% 12.0%

10.4%

June 10 June 11 June 12 June 13 June 14 June 15 June 16

12%11%

9%

7%

10% 10%

8%


33

The government has

embarked on a

number of schemes

that aim to address

economic issues

These initiatives are

expected to have

positive effects on

macro economic

indicators

Recent Government Initiatives

Subsidy Reforms

In July 2014, the Egyptian government kicked off a much-awaited fiscal consolidation, aiming to bring the fiscal deficit towards a sustainable path and revive economic growth. The approved measures constitute:

Rationing wide-range of fuel productsRe-pricing of electricity and outlining a five-year plan for phasing out fuel subsidiesIncreasing sales taxes on tobacco and alcohol

1

ItemAnnual Saving

(EGP Bn)

Diesel 16.8

Gasoline 8.9

Fuel Oil 4.0

Natural Gas 3.7

Electricity 8.5

Cigarettes &Alcohol

4.5

Total 46.4

% of GDP 2.0%

Mortgage Finance 2

The government is stimulating private and household credit through the launch of an EGP 10bn programme by CBE to promote mortgage finance

The programme would lend banks funds at preferential rates for maturities of more than 10 years that would be utilized in the financing mortgage for low and middle income families

Suez Canal & New Road Network

The government recently announced to build a new Suez Canal alongside the existing 145-year-old historic waterway with an estimated cost of USD 8.2 bn(including building underground tunnels) to be completed in five years. The new canal is set to boost annual revenues to USD13.5 bn by 2023 from USD5.2 bn in FY12/13

3,600 KM of new roads to be constructed at a cost of EGP 36 billion

Macroeconomic Indicators

Real GDP Growth2

5.2%

1.8%2.2% 2.1% 2.3%

3.3%

4.5%


Budget Deficit (%GDP)3

Inflation2

1 Source: Bloomberg, Reuters, EFG Hermes Research2 Source IMF

3

Improving Macro Economic Indicators1

Planned government initiatives to address long-standing economic issue

3 Expected budget deficit is based on press release by the Ministry of Finance

900

270

Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14

35 33 30 28 27 27 26 25 24 22 20 18 16 16 15 15 16 16 14 15 15 16 15 15 14 14 13 14 16 15

19 19 19 19 18 17 17 17 17 18 17 17 17 17 17 17

Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14

Following the 30th of June

protests and the ouster of

ex president Morsi,

several Macro indicators

showed signs of

improvement with CDS

spread dropping from an

alarming 900 bps and a

drop in 1 year T-bill yield

Macro risk receded with

the support package

promised by Saudi Arabia,

UAE and Kuwait. The aid

received pulled the breaks

on further devaluation of

the EGP and revered the

constant decrease in

Egypt’s foreign reserves

Improving Macroeconomic Indicators1

Egypt’s macroeconomic backdrop

34

Recent Government Initiatives

Egypt Spot & 12 Months Non Deliverable Forward

1 Source: Bloomberg, IMF, CBE2 Due to the Monetary Police Committee’s decision to raise overnight lending and deposits rate by 100 bps

CDS Spread (basis points)

Post 30th June Protests

Post 25th Jan Revolution Post Presidential Elections

1 Year T-Bill Yield (%) Dollarization (% of Total Deposits)

Due to MPC’s decision to raise lending and deposits

rate by 100 bps

2

23%

19%


Stable FX Reserves (USD Billion)

Country Received Total Pledged

USD 4.0 bn USD 6.9 bn




Incoming International Support Packages

7.1

7.9


Spot Forward

14.9%

12.2%


5.8

7.14

967 1,048

1,466 1,510

2,083 1,788 1,771

1,452

2,814

3,202

1,784

3,106

3,747

1Q 11

2Q 11

3Q 11

4Q 11

1Q 12

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

3Q 13

4Q 13

1Q 14

21%

22%

20%

13%

11%

7%

4%

2%

21%

23%

19%

13%

11%

7%

4%

2%

25% 15% 5% 5% 15% 25%

<10

10-20

20-30

30-40

40-50

50-60

60-70

>70

Female Male

Young population to fuel growth

35

Egypt's large and

growing population is

a key asset compared

to its MENA

counterparts

The country is set to

exhibit a strong

working age

population growth

over the coming period

The growing marriage

rate (standing at 933

thousands marriages

per annum), coupled

with increasing

urbanization levels

have resulted in an

increased demand for

housing units

Recent government

initiatives relating to

mortgage financing

are expected to further

enhance demand

Market Drivers Remain Intact

Population & Growth Vs Arab States

1 Source: CAPMAS, IMF, US Census, Central Banks of respective countries and Industry reports; Data as at 31/12/20132 Source: Jones Lang LaSalle, Bloomberg, Company Financial Statements

Demographics

Gross Pre Sales for Key Developers3 (EGP mn. FX Rate) Market Characteristics / Trends

87

33 3228 25

5 4 3 2

2%1% 1% 2%

3%

5%

3%

2%

6%

-

10

20

30

40

50

60

70

80

90 Population (mn) Growth (%)

World Average: 1.2%

Young population

(around 60% below the age of 30)

Encouraging Real Estate Market Dynamics1

Encouraging Real Estate Market Dynamics2

Market characterized by a small number of densely populated cities, with low urbanization. Cairo is one of the most dense metropolitan areas in the world

Sales are supported by a large population with an increasing number of marriages to spur demand

Strong pent-up demand still not matched by equal supply (housing gap estimated at not less than 200k units annually)

Inefficiencies of public sector players led to emergence of a number of mega private sector developers

Summer 2014 witnessed an increasing demand for secondary homes

3 Key developers include SODIC, Palm Hills and Talaat Mostafa

Disclaimer

36

This Presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitationor solicitation of an offer to subscribe for or purchase securities of any kind and neither this document nor anything contained herein shall form thebasis of any contract or commitment from any party whatsoever. Information, including but not limited to financial information, in this presentationshould not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or any other instruments in or, inentities 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 anyperson whosoever for any purpose, 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 andfuture trends identify forward-looking statements. These forward-looking statements include all matters that are not historical facts. In particular,the statements regarding strategy and other future events or prospects are forward-looking statements. Recipients of this document should notplace undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are inmany cases beyond the control of the Company. By their nature, forward-looking statements & projections involve risks and uncertainties becausethey 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 whichthe Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this document. Thecautionary statements set forth above should be considered in connection with any subsequent written or oral forward-looking statements that theCompany, or persons acting on its behalf, may issue. Various factors could cause actual results to differ materially from those expressed or impliedby the forward-looking statements in this document including worldwide economic trends, the economic and political climate of Egypt, the MiddleEast 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 sources known to be reliable and/or publicly available data reasonably assumed to be accurate (the “Source Data”). The SourceData may contain errors and/or inaccuracies; SODIC provides no warranties or guarantees of any kind, expressed or implied, and accepts noresponsibility whatsoever, with regard to the accuracy, completeness or correctness of the 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 byEgyptian law under the jurisdiction of Egyptian courts.

Thank You

For SODIC investor relations enquiries contact:

Heba [email protected]

Tel: +202 3854 0121

SODIC IR website: ir.SODIC.comSODIC corporate website: www.SODIC.com

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