PRESENTATION FY 2017 - PORTO GROUPir.portogroup.com/Content/Media/Files/Porto Group...INVESTOR...
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INVESTOR PRESENTATION FY 2017
INVESTOR PRESENTATION I FY 2017
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 orsolicitation of an offer to subscribe for or purchase securities of any kind and neither this document not anything contained herein shall form the basisof any contract or commitment from any party whatsoever. Information, including but not limited to financial information, in this presentation shouldnot be considered as a recommendation in relation to holding, purchasing or selling shares, securities or any other instruments in or, in entities relatedto, Porto Group Holding or any other company.
This presentation contains important and privileged information on Porto Group Holding which is solely owned by Porto Group Holding and may not berelied on or used by any person whosoever for any purpose, and therefore shall be kept secret and confidential by any receiving party.
This presentation includes forward-looking statements. The words “believe”, “anticipate”, “expect”, “intend”, “aim”, “plan”, “predict”, “continue”,“assume”, “positioned”, “may”, “will”, “would”, “could” or “should” “shall”, “risk” and other similar expressions that are predictions of or indicatefuture events and future 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 presentationshould not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors thatare in many cases beyond the control of the company. By their nature, forward-looking statements & projections involve risks and uncertaintiesbecause they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guaranteesof future performance and the company’s actual results of operations, financial condition, performance, liquidity, dividend policy or achievements ofthe company, or industry in which the company operates may differ materially from those made in or suggested by the forward-looking statementscontained in this presentation. The cautionary statements set forth above should be considered in connection with any subsequent written or oralforward looking statements that the company or persons acting on its behalf, may issue. Various factors could cause actual results to differ materiallyfrom those expressed or implied by the forward-looking statements in this document including the worldwide economic trends, the economic andpolitical climate of Egypt and the Middle East, changes in business strategy and various other factors.
These forward looking statements speak only as of the date of this presentation. The company expressly disclaims any obligation or undertaking(except as required by applicable law or regulatory obligation), to release publicly any updates or revisions to any forward-looking statement, whetheras a result of new information, future events or otherwise.
This disclaimer is to be considered an integral part of the presentation and Porto Group Holding’s liability in respect of this presentation and is to begoverned by Egyptian law under the jurisdiction of Egyptian courts.
2
Disclaimer
INVESTOR PRESENTATION I FY 2017
A. COMPANY OVERVIEW
B. PROJECTS OVERVIEW
C. CONSOLIDATED FINANCIAL PERFORMANCE
D. APPENDIX
3
Agenda
INVESTOR PRESENTATION I FY 2017
COMPANY OVERVIEW
INVESTOR PRESENTATION I FY 2017
35.0%
45.2%
10.8%
0.2%
6.8%0.2%
1.8%
SOL Global HoldingFree FloatAmer WakfLantess International LimitedMohamed El-Amin
Share Performance1
5
-
0.1
0.2
0.3
0.4
0.5
0.6
-
50,000
100,000
150,000
200,000
250,000
300,000
Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17Volume ('000s) Share Price (EGP)
July 2017Stock Dividend 1:10
Company Overview
Porto Group is a real estate developer based in Egypt, established in October 2015 post the spin-offfrom Amer Group
The split took place in October 2015 to introduce Porto Group as a pure real estate developer withprojects locally and internationally where it has access to land through favorable revenue sharingarrangements with Amer Group or other land owners in Egypt as well as the acquisition of land plotsoutside of Egypt
Porto Group mainly focuses on real estate development projects in East and West Cairo as well assecond homes and commercial units
Shareholding Structure
Company OverviewPorto Group Overview
EGX 30’s most traded stock in terms of volume in 20172
Sector Real Estate
No. of Listed Shares 5,015. mn
Market Cap3 EGP 1.856 bn
Bloomberg Ticker PORT.EY
Reuters Ticker PORT.CA
1. Source: EGX & Thomson Reuters2. Source: EGX3. As at 31 DECEMBER. 2017
April 2016Cash Dividend EGP 0.02
INVESTOR PRESENTATION I FY 2017 6
Key Milestones
Company OverviewKey Milestones of Porto Brand which predates the spinoff of Porto Group Company
Became thefirst and
onlydeveloper toexplore the
other side ofthe shore
Became thefirst and
onlydeveloperto develop
Red Seamountains
First primaryhomes
development
LaunchedPorto New
Cairo & PortoOctober
LaunchedPorto Lagoons,Porto Sokhna
Island&
Porto Matrouh
AppointedArqaamCapital,Matouk
Bassiouny &Baker
McKinsey tolaunch a GDR
program
Launch ofanotherregional
development
2005 2006 2007 2013 20152011 2014 20162010
Become thefirst Egyptian
player todevelop
outside ofEgypt
PortoMarina waslaunched inthe North
Coast
Porto GroupCompany
established
2017
LaunchedVillagio
INVESTOR PRESENTATION I FY 2017
The fastest developer among listed peers, with a strong brand name, a management team with a proven track record and a well defined strategy in place
7
1
Acceleratedeliveries and
projectcompletion
2
Geographicalexpansion both
locally andregionally across
various realestate
segments
3
Build up recurringrevenue streams in
Commercial,Healthcare &
Educationsectors
4
Seek new Co-development
projects both InPrimary & Second
Home markets
Company OverviewStrategy
INVESTOR PRESENTATION I FY 2017
PROJECTS OVERVIEW
INVESTOR PRESENTATION I FY 2017 9
Porto Developments EducationHealthcare HotelsCommercial
Golf Porto Sokhna -Island
Golf Porto Marina -Lagoons
Porto Cairo Porto October Porto Matrouh PH2 Porto New Cairo Porto Tartous Porto Dead Sea Porto Agadir Porto Pyramids Porto Saeed Golf Porto Marina -
Villagio 12 projects Total land area: 4.8
mn sqm
Porto Cairo Porto Sokhna Golf Porto Marina Porto October 295 beds 120 clinics
Porto New Cairo Porto October Porto Pyramids Porto Dead Sea Porto Saeed Porto Agadir 721 Keys
Schools Alamain University
Porto Cairo Porto New Cairo Porto October
Egyptian Wakf Amer Charitable
Foundation
CSR
Projects OverviewBusiness Lines
INVESTOR PRESENTATION I FY 2017 10
Projects OverviewProjects Snapshot
Project Location Type Launch Date Start of Delivery Land Area(sqm mn)
Total BUA Area(sqm mn)
Porto Cairo Villas New Cairo Primary Home 2007 2010 0.09 0.04
Porto Cairo Mall New Cairo Commercial 2010 2014 0.04 0.04
Porto Cairo Clinics New Cairo Commercial 2012 2017 0.01 0.01
Porto Lagoons North Coast Second Home/Mixed-use 2015 2018 0.08 0.10
Porto Sokhna Island Suez Gulf Coast Second Home 2015 2017 0.18 0.06
Porto Matrouh Marsa Matrouh Second Home 2015 2018 0.13 0.08
Villagio-Golf Marina North Coast Second Home 2017 2020 0.16 0.05
Porto New Cairo New Cairo Primary Home/Mixed-use 2013 2018 0.05 0.21
Porto October 6th of October Primary Home/Mixed-use 2013 2016 1.38 0.64
Porto Pyramids Giza Primary Home/Mixed-use 2016 2019 0.1 0.13
Porto Saeed Port Said /Damietta Primary Home/Mixed-use TBD TBD 0.43 0.33
Porto Tartous Tartous, Syria Second Home 2010 TBD 0.19 -
Porto Dead Sea Dead Sea, Jordon Second Home 2014 2018 0.81 0.78
Porto Agadir Agadir, Morocco Second Home TBD TBD 1.20 0.32
EGYP
TM
ENA
INVESTOR PRESENTATION I FY 2017
45.3%
6.7%
48.0%
Porto Group
Amer
3rd Parties
11
Porto Group’s Co-development Agreements & Self Developed Projects Projects (by Geography)
Land (Developed vs. Under Development)
Co-developmentAgreement
Self DevelopedProjects
Ongoing Projects
Porto Lagoons Porto New Cairo Porto Pyramids Porto Sokhna Porto October Porto Matrouh PH2 Golf Porto Marina –
Villagio Grand View
Porto Cairo Porto Dead Sea
Phase I
Under Planning
Several new Projects(T.B.A)
Porto Dead Sea( Mountain )
Porto Agadir
82.6%
17.4%Under Development
Developed
Egypt, 70.2%
Jordan, 21.1%
Morocco, 8.7%
Egypt
Jordan
Morocco
Projects OverviewProjects Snapshot
Land (Ownership)
INVESTOR PRESENTATION I FY 2017 12
Local Projects International Projects
Red Sea
Porto Matrouh
Porto October
Porto Pyramids
Porto Cairo
Porto New Cairo
Porto Sokhna
Mediterranean Sea
Porto Agadir
Porto Dead Sea
Porto Tartous
Golf Porto Marina
Porto MarinaResidence
Projects OverviewProjects Location
INVESTOR PRESENTATION I FY 2017 13
Golf Porto MarinaVillagio I O
Porto Group has concluded a revenue sharing agreement with Amer Group to develop 582 Villas in Villagio project, GolfPorto Marina with BUA of 52,380 sqm.
The investment cost of the project is estimated at c. EGP 875 mn
Projects OverviewNew Launches
Porto Group is actively studying several co-development agreements of mixed-use projects in various geographiclocations encompassing both primary and second home markets.
Porto Group will continue strengthening its recurring revenue activities.Future Projects
INVESTOR PRESENTATION I FY 2017 14
Projects OverviewPorto Dead Sea Construction Update Video
INVESTOR PRESENTATION I FY 2017 15
Projects OverviewPorto October Master Plan Video
INVESTOR PRESENTATION I FY 2017
Projects OverviewPorto October Construction Update Video
INVESTOR PRESENTATION I FY 2017 17
Projects OverviewPorto New Cairo Project Update Video
INVESTOR PRESENTATION I FY 2017 18
Projects OverviewPorto Group
INVESTOR PRESENTATION I FY 2017
CONSOLIDATED FINANCIAL PERFORMANCE
INVESTOR PRESENTATION I FY 2017 20
Unit Sales by Project (From Project Launch to Dec 2017) | Units
Contracted Sales by Project (From Project Launch to Dec. 2017) | EGP mn
329 57182
885 548 227 154
1,953
4,839
617195 62
-
1,000
2,000
3,000
4,000
5,000
6,000
Porto CairoVillas
Porto CairoMall
Porto CairoClinics
PortoLagoons
Porto SokhnaIsland
PortoMatrouh
Golf Bay Porto NewCairo
PortoOctober
PortoPyramids
Golf Marina Grand View
81454
98
1,421
770416 349
1,127
2,940
340 124 96 -
1,000
2,000
3,000
4,000
Porto CairoVillas
Porto CairoMall
Porto CairoClinics
PortoLagoons
Porto SokhnaIsland
PortoMatrouh
Golf Bay Porto NewCairo
PortoOctober
PortoPyramids
Golf Marina Grand View
EGP 10.462 bn
Consolidated Financial PerformancePerformance Overview
8,216 units
INVESTOR PRESENTATION I FY 2017 21
621 UnitsDelivered621 UnitsDelivered
Gross ProfitEGP 379 mnGross ProfitEGP 379 mn
Operating ProfitEGP 118 mn
Operating Profit Margin9.8 %
Operating ProfitEGP 118 mn
Operating Profit Margin9.8 %
EGP 2,089 bnContracted Sales
EGP 2,089 bnContracted Sales
EGP 1,207 bnRevenue
Recognized
EGP 1,207 bnRevenue
Recognized
New Sales by Type: First Home 52 % Second Home 33 % Commercial 15 %
New Sales by Type: First Home 52 % Second Home 33 % Commercial 15 %
FY 2016 Highlights
Consolidated Financial PerformancePerformance Overview
EGP 2,650 bnContracted Sales
EGP 2,650 bnContracted Sales
Operating ProfitEGP 377 mn
Operating Profit Margin15.8 %
Operating ProfitEGP 377 mn
Operating Profit Margin15.8 %
EGP 2,383 bnRevenue
Recognized
EGP 2,383 bnRevenue
Recognized
New Sales by Type: First Home 42 % Second Home 35 % Commercial 14 % Schools 9 %
New Sales by Type: First Home 42 % Second Home 35 % Commercial 14 % Schools 9 %
1,813 UnitsDelivered
1,813 UnitsDelivered
Gross ProfitEGP 633 mnGross ProfitEGP 633 mn
FY 2017 Highlights
INVESTOR PRESENTATION I FY 2017 22
Revenues | EGP mn Gross Profit | EGP mn Operating Profit | EGP mn
Net Profit | EGP mn Total Assets | EGP bn Total Equity | EGP mn
1,207
2,383
-
500
1,000
1,500
2,000
2,500
FY 2016 FY 2017
379
633
-
200
400
600
FY 2016 FY 2017
118
377
- 50
100 150 200 250 300 350 400
FY 2016 FY 2017
117
245
-
50
100
150
200
250
300
FY 216 FY 2017
5.18 5.13
-
2
4
6
FY 2016 FY 2017
578
753
-
200
400
600
800
FY2016 FY 2017
Consolidated Financial PerformancePerformance Overview
97 % 67 % 220%
109%30%
INVESTOR PRESENTATION I FY 2017 23
Consolidated Income Statement1 | EGP ‘000s
FY 2016 FY 2017 Change
Revenues 1,207,053,174 2,383,768,370 97%
Cost of Revenues (827,568,241) (1,750,558,989) 112%
Gross Profit 379,484,933 633,209,381 67%
Selling and Marketing Expenses (176,544,403) (154,854,930) (12)%
General and Admin Expenses (66,951,899) (102,753,317) 53%
Treasury Stock (9,954,289) - -
Other Income 28,880,823 36,867,680 28%Other Operating Expenses (37,120,676) (35,639,808) (4)%
Operating Profit 117,794,489 376,829,006 220%Interest Income 58,798,400 13,779,123 (77) %
Finance Cost (8,790,053) (102,842,158) 1070%
Capital Gains - 37,713,980 -
Profit for the Year Before Tax 167,802,836 325,479,951 94%Income Tax (50,294,908) (79,945,301) 59 %
Profit for the Year 117,507,928 245,534,650 109 %
Consolidated Financial PerformanceConsolidated Income Statement
1. Prepared in accordance with Egyptian Accounting Standards
INVESTOR PRESENTATION I FY 2017
APPENDIX
INVESTOR PRESENTATION I FY 2017 25
Total Real Estate Unit FY 2016 FY 2017 Change %
Cumulative Number of Units Sold Units 6,327 8,216 30
Total New Sales Value in the Period EGP mn 2,089 2.650 27
Units Delivered in the Period Units 621 1,813 192
Revenues Recognized in the Period EGP mn 1,207 2,383 97
Operating Profit EGP mn 118 377 219
Operating Profit Margin % 9.8 15.8 6.00
AppendixFinancial Highlights
INVESTOR PRESENTATION I FY 2017 26
Land Area (m2) 1,381,000 Launch Date 2013
Total BUA (m2) 640,869 Public Service & Utilities BUA (m2) 126,536
Residential BUA ( m2) 399,955 Total Licensed Residential Units 4,961
Commercial BUA (m2) 102,836 Total Sales (EGP mn) 4,839
Other (Office ) ( m2) 11,542 Total Revenues (EGP mn) 2,180
AppendixDevelopment Under Construction – Porto October1
1. All figures are as of 31st Dec 2017
INVESTOR PRESENTATION I FY 2017 27
Land Area (m2) 54,549 Launch Date 2013
Total BUA (m2) 179,489 Public Service & Utilities BUA (m2) 39,274
Residential BUA (m2) 86,125 Total Licensed Residential Units 1,340
Commercial BUA (m2) 41,697 Total Sales (EGP mn) 1,953
Other (Hotel) ( m2) 12,393 Total Revenues (EGP mn) 1,652
AppendixDevelopment Under Construction – Porto New Cairo1
1. All figures are as of 31st Dec 2017
INVESTOR PRESENTATION I FY 2017 28
Land Area (m2) 185,000 Launch Date 2015
Total BUA (m2) 57,891 Public Service & Utilities BUA (m2) -
Residential BUA (m2) 57,891 Total Licensed Residential Units 847
Commercial BUA (m2) - Total Sales (EGP mn) 548
Total Revenues (EGP mn) 254
AppendixDevelopment Under Construction – Golf Porto Sokhna Island (1&2)1
1. All figures are as of 31st Dec 2017
INVESTOR PRESENTATION I FY 2017 29
Land Area (m2) 101,980 Launch Date 2016
Total BUA (m2) 131,223 Public Service & Utilities BUA (m2) 43,683
Residential BUA (m2) 117,051 Total Licensed Residential Units 1,007
Commercial BUA (m2) 9,960 Total Sales (EGP mn) 617
Other (Hotel) (m2) 4,511 Total Revenues (EGP mn) NA
AppendixDevelopment Under Construction – Porto Pyramids1
1. All figures are as of 31st Dec 2017
INVESTOR PRESENTATION I FY 2017 30
Land Area (m2) 85,000 Launch Date 2015
Total BUA (m2) 91,960 Public Service & Utilities BUA (m2) -
Residential BUA (m2) 91,960 Total Licensed Residential Units 1,326
Commercial BUA (m2) - Total Sales (EGP mn) 883
Total Revenues (EGP mn) 233
AppendixDevelopment Under Construction – Porto Lagoons1
1. All figures are as of 31st Dec 2017
INVESTOR PRESENTATION I FY 2017 31
Land Area (m2) 133,000 Launch Date 2015
Total BUA (m2) 84,000 Public Service & Utilities BUA (m2) -
Residential BUA ( m2) 5,442 Total Licensed Residential Units 934
Commercial BUA (m2) 6,165 Total Sales (EGP mn) 227
Time Share (m2) 72,393 Total Revenues (EGP mn) 13
AppendixDevelopment Under Construction – Porto Matrouh1
1. All figures are as of 31st Dec 2017
INVESTOR PRESENTATION I FY 2017 32
Land Area (m2) 137,282 Launch Date 2007-2012
Total BUA (m2) 84,710 Public Service & Utilities BUA (m2) -
Residential BUA (m2) 39,555 Total Licensed Residential Units -
Commercial BUA (m2) 37,688 Total Sales (EGP mn) 982
Other (Medical) (m2) 7,467 Total Revenues (EGP mn) 1,053
Completed Completed In Process
Villas Mall Medical
AppendixDevelopment Under Construction – Porto Cairo1
1. All figures are as of 31st Dec 2017
INVESTOR PRESENTATION I FY 2017 33
Land Area (m2) 805,774 Launch Date 2014
Total BUA (m2) 250,000 Public Service & Utilities BUA (m2) 42,021
Residential BUA (m2) 179,557 Total Licensed Residential Units 11,400
Commercial BUA (m2) 28,422 Total Sales (EGP mn) 288
AppendixDevelopment Under Construction – Porto Dead Sea1
1. All figures are as of 31st Dec 2017
INVESTOR PRESENTATION I FY 2017 34
Land Area (m2) 1,200,000 Launch Date TBD
Total BUA (m2) 329,800 Public Service & Utilities BUA (m2) 41,149
Residential BUA (m2) 229,834 Total Licensed Residential Units 3,236
Commercial BUA (m2) 37,317 Total Sales (EGP mn) NA
Other (Hotel) (m2) 21,500 Total Revenues (EGP mn) NA
AppendixDevelopment Under License – Agadir1
1. All figures are as of 31st Dec 2017
INVESTOR PRESENTATION I FY 2017 35
AppendixCommercial Sector
Porto Cairo
Porto New Cairo Porto October
INVESTOR PRESENTATION I FY 2017 36
PORTO OCTOBER145 BEDS
PORTO CAIRO35 BEDS
120 CLINICSPORTO SOKHNA
50 BEDS
GOLF PORTO MARINA65 BEDS
AppendixHealthcare Sector1
1. All figures are as of 31st Dec 2017
INVESTOR PRESENTATION I FY 2017 37
School in Porto October School in Porto Sokhna School in Porto Saeed
Alamein University
AppendixEducation Sector
INVESTOR PRESENTATION I FY 2017 38
PORTO OCTOBER50 KEYS
PORTO NEW CAIRO45 KEYS
PORTO PYRAMIDS144 KEYS
PORTO SAEED100 KEYS
PORTO AGADIR252 KEYS
PORTO DEAD SEA130 KEYS
AppendixHospitality Sector1
1. All figures are as of 31st Dec 2017
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Chairman & CEO
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