Q4 2017 Investor Presentation - Amazon S3...to finance the construction of selective projects,...

Q4 2017 Investor Presentation


SODIC: Egypt’s Leading Developer

AGENDA

• Demand drivers for property in Egypt

• SODIC At a Glance• Our Unique Value Proposition• A Diversified Portfolio• FY17 – Results Highlights

• Prime Land Bank & Diverse Portfolio

• Forward Strategy

• Performance Overview • Project Profitability• Delivery & Execution

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

16 projects launched

Over 7 mn sqmof land developed

over EGP 27bnContracted Sales c.12,000 units

Over 7,700Delivered Units

5.9 mn sqmNon‐launched & Raw Land Bank2

EGP 85‐90bnExpected 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 85‐90bn1• 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

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

6


A Diversified Portfolio of Live Communities¹

1 As of 31st of December 2017

7


A Diversified Portfolio of Live Communities¹

1 As of 31st of December 2017

8


Net contracted sales from our projects was EGP 5.7 billion with our developments in East Cairo showing particular strength growing by 24% and 17% in values and volumes respectively.

2017 witnessed the launch of several new projects including SODIC East and Sky Condos in Villette, both in East Cairo as well as October Plaza and One16 in West Cairo. Combined these four projects have given SODIC circa EGP 70 billion of inventory expected to be sold over the coming 10 years. The strong performance of these launches has enabled us to achieve our stated guidance for sales in 2017.

Cancellations have declined significantly to 2.6%, almost half of that recorded in the previous three years. This reflects the strong trust our client’s have in SODIC honouring its commitment to timely delivery and the significant value appreciation of the sold units realized by our clients in this inflationary backdrop.

Cash Collections were EGP 3.8 billion an increase of 23% over the same period last year, thanks mainly to our efficient management of the collection process.

Delinquencies remained low at 2% during the year. Despite financial pressures faced by Egyptian households as a result of the government reforms undertaken, our clients have continued to pay their instalments in a timely manner recognizing the strong value creation that our developments have delivered safeguarding their investment against the inflation.

Deliveries of some 1,151 units took place in 2017 achieving our target for the year and reinforcing our commitments to timely delivery.

Full Year 2017 —Operating Performance Highlights

EGP5.7bncontracted sales

4 new Projects introduced

1,321 units sold

Cancellations remained low

2.6%

Delinquency remained low

2%EGP 3.8bnCollected +23%

62% delivered units are in Eastown

1,151 unitsDelivered

Sales on target, strong collections and on schedule deliveries

9


Revenues grew 11% to EGP 2.3 billion as we continue on‐schedule deliveries across all our projects. Deliveries in Eastown Residences have contributed to 55% of the delivered value. The year also witnessed the commencement of deliveries in the Courtyards which contributed to 12% of the delivered value.

Gross profit increased c.11% to EGP 883 million reflecting a healthy gross margin of 39% versus 38% recorded in 2016. The resilience of our gross margins during such a remarkably inflationary environment attests again to our disciplined approach to construction and commitment to timely delivery. Moreover margins achieved on Eastown Residences have improved markedly to reach 35% compared to 23% in 2016.

Operating profit increased by 17% to EGP 478 million reflecting a healthy operating margin of 21%. This reflects our prudent control of our operating expenses despite the inflationary backdrop the country suffered post the devaluation in November 2016.

Net profit post minority interest for the year came in at EGP 597 million, with a margin of c.26%, versus 21% in 2016. SODIC delivered an EPS of 1.74 EGP per share in 2017, a 39% growth driven by resilient operating profitability as well as higher interest income generated on our cash balances that have been mainly invested into treasury bills during the year to benefit from the high interest rate environment.

Full Year 2017 — Financial Performance Highlights

EGP2.3bnRevenue +11%

39%Gross profit margin

Eastown Residences GPM improved in 2017 to 35% up from 23% in

2016

EGP883mnGross profit +11%

21%Operating profit margin

EGP 478mnOperating profit +17%

26% net profit margin

EGP 597mnnet profit +39%

Profits up 39% driven by timely deliveries and robust operating profitability

10


Total cash and cash equivalents balance stood at EGP 3.6 billion, reflecting the strength of the balance sheet and supporting our construction pipeline as well as our land bank expansion plans.

Of our EGP 3.3 billion of bank facilities circa 45% were utilized reflecting a bank debts outstanding balance of EGP 1.5 billion. Debt to equity ratio remained low at 0.34x.

During the year SODIC and its subsidiaries have signed several Medium Term Facility agreements with two of the country’s leading private sector banks increasing its available bank facilities by EGP 1.1 billion. The facilities are arranged to finance the construction of selective projects, namely SODIC West, Villette and October Plaza.

Land liabilities to NUCA continued to decline, having repaid circa 80% of the land costs of Villette, Eastown and October Plaza. Land liabilities currently stand at EGP 917 million.

Receivables continued to grow reaching c.EGP 11.2 billion at the end of 2017 providing strong visibility into our future cash inflows as delinquency rates continue to hover at a low rate of 2%.

Client Deposits stood at EGP 15.5 billion, reflecting the backlog of revenue to be recognised over the coming three to four years and represents units that have been sold and yet to be delivered.

Full Year 2017— Financial Performance Highlights

EGP1.1bnLoans secured

0.34x debt to equity leverage remains

low

EGP3.6bnCash balances

EGP1bnCash earmarked for

growth

EGP 11.2bnreceivables

2%Delinquency rate

EGP 15.5bn Revenue backlog

EGP 843mn land liabilities down from a total cost of land of EGP

4.8 bn

Solid balance sheet prudently managed to support growth

11


300 acres West Cairo (El Yosr)

17%655 Acres New Heliopolis

35%

300 acres North Coast18%

Other launched projects30%

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

300 acres North Coast Other launched projects

Land Bank as at 31 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

5.9 mn sqmof unlaunched land

c.EGP 85‐90bn of future sales

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

Remaining land (SODIC West, Villette,

Eastown & October Plaza)


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

13

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 15bnof potential sales

72% share of revenues to SODIC

7 yearsSales visibility on the North Coast

No minimum guarantee

Our Strategy

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Prime Land Bank & Diverse Portfolio of Live Communities

With 4.6 mnsqm of unutilized land, SODIC is expected to bring to the market EGP 70 to 75bn1 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

15


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 mnsqm

5.9 mnsqm

16

59%32%

9%

Launched Unlaunched Raw

26%

53%

21%

West Cairo East Cairo North Coast

61%18%

21%

Residential Retail & Commercial Secondary Homes

West Cairo Total Land Bank East Cairo Total Land Bank North Coast Total Land Bank7.6mn 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 AreaAllegria 2,428k sqm Westown Residential 48k sqm Eastown Residences 674k sqm Eastown Residences 52k sqm Caesar 441k sqmForty West 53k sqm Westown Retail/ Commerc 71k sqm Kattameya Plaza 126k sqm Eastown Retail/ Commerci 146k sqm Total Launched Projects 441k sqmWestown Residences 584k sqm The Strip Phase II 67k sqm Villette Residential 861k sqm Villette Residential 194k sqmThe Polygon 55k sqm October Plaza 65k sqm SODIC East 239k sqm Villette Retail/ Commercial 211k sqm 2. Raw Land Land AreaThe Strip 106k sqm Total Unlaunched Projects 251k sqm Total Launched Projects 1,900k sqm SODIC East Residential 1,964k sqm New 300 acre plot 1,274k sqmThe Courtyards 238k sqm SODIC East Commercial 555k sqm Total Raw Land 1,274k sqmWestown Hub 50k sqm Total Unlaunched Projects 3,122k sqmCASA 294k sqm 3. Raw Land Land AreaBeverly Hills 1,900k sqm Al Yosr 1,260k sqmOne16 35k sqm Total Raw Land 1,260k sqmOctober Plaza 65k sqmWMC 4k sqmOthers² 260k sqmTotal Launched Projects 6,072k sqm


Forward Strategy

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

• Execution of EGP 85‐90 bn worth of unlaunched inventory• Deliver some 15,800 units from both sold and unlaunched inventory• Collect EGP 11.2 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)

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Operational & Financial Performance

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Performance Overview

SODIC has exhibited impressive growth despite the downturn, 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 3%

Cancellations Continuing to deliver on schedule

Collections continued to increase

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Unrecognized revenues provide strong earnings visibility Client deposits EGP million

741

1,819

2,730 3,238

4,641

5,918 5,872

2011 2012 2013 2014 2015 2016 2017

99.0%

11.0% 9.0% 5.0% 5.0% 4.6% 2.6%

2011 2012 2013 2014 2015 2016 2017

259

424

684

491

721

1,060 1,151

2011 2012 2013 2014 2015 2016 2017

750

1,292

2,044 2,049 2,390

3,127

3,843

2011 2012 2013 2014 2015 2016 2017

1,742 2,452

3,604 4,859

6,886

9,751

11,223

2011 2012 2013 2014 2015 2016 2017

3,332 3,528 4,294 6,097

8,914

12,619

15,497

2011 2012 2013 2014 2015 2016 2017


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 37%

20

Projects’ GPM³

Allegria 4,435 2,742 4,368 38%Kattameya Plaza 655 444 655 32%Forty West (I‐II) 1,003 796 898 21%WTR (I‐X) 2,248 1,175 2,243 48%Polygon 1,018 931 807 9%The Strip 353 202 353 43%One16 497 236 437 52%October Plaza 901 569 457 37%ETR (I‐XI) 5,964 3,685 5,723 38%The Courtyards (I‐VI) 1,707 853 1,700 50%Villette (I ‐ V) + Sky Condos 8,039 5,262 5,664 35%Caesar 1,739 1,068 1,513 39%SODIC East 1,408 861 1,192 39%Total 29,969 18,826 26,009 37%

100%70%87%85%

79%100%88%51%96%

98%100%89%100%

Project (EGP Mn)Total Launched

Inventory Development

Cost2Sold

InventorySold Unsold


Delivery and Execution1

SODIC delivered 1,151 units in 2017

9,651 launched units under development (51% delivered) with an investment cost of c. EGP 19.5 billion

Delivery

1 All figures as of 31st of December 2017.2 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

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Number of Delivered Percent Delivery Delivery Investment PercentUnits Units Delivered Start Date End Date Cost² Completion3

Allegria 1,249 1,229 98% 2010 2017 2,742 95%Kattameya Plaza 488 469 96% 2013 2016 444 100%Forty West (I‐II) 221 118 53% 2012 2018 796 80%WT Residences (I‐X) 1,391 1372 99% 2013 2017 1,175 98%The Polygon 252 254 101% 2013 2018 931 88%The Strip 84 56 67% 2012 2017 202 100%WT Hub 48 34 71% 2014 2015 89 99%ET Residences (I‐XII) 2,575 1141 44% 2016 2020 3,685 46%The Courtyards (I‐VI) 776 140 18% 2017 2019 853 74%Villette (I‐V) + Sky Condos 1,433 ‐ ‐ 2018 2011 5,262 27%One16 125 ‐ ‐ 2020 2020 236 20%October Plaza 207 ‐ ‐ 2020 2020 569 16%CASA⁴ 63 61 97% 2013 2015 NA 100%Caesar 352 ‐ ‐ 2018 2019 1,068 52%SODIC East 387 ‐ ‐ 2020 2021 1,464 0%

Total 9,651 4,874 51% 19,518 NA

Project

From 2010 to 2021


Summary Financial Results

Summary Consolidated Income Statement

Selected Consolidated Balance Sheet Items

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EGP in mn 12M17 12M16Total Revenue 2,293 2,067 Cost of Goods Sold (1,410) (1,275)Gross Profit 883 792 Gross Profit Margin 39% 38%Operating Profit 478 409 Operating Profit Margin 21% 20%Net Profit Before Tax 799 602 Taxes (200) (161)Minority Interest (2) (12)Net Profit After Tax and Minority Interest 597 429 Net Profit Margin 26% 21%

EGP in mn Dec‐17 Dec‐16AssetsTotal Assets 24,671 20,776 Work In Process 8,011 7,194 Long Term & Short Term Net Trade and Notes Receivable 11,223 9,751 Cash and cash equivalent 3,596 2,571

Liabilities & Shareholder EquityBank Credit Facilities & Long Term Loans 1,497 1,196 Advances from Customers 15,497 12,619 Total Equity 4,443 3,821

Q4 2017 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 December 2017.

25

Launch date 2011 Receivables outstanding (EGP mn) 249Gross Land Area (sqm) 584,331 Development cost for launched¹ (EGP mn) 1,175Total BUA (sqm) 344,664 Capex remaining for launched 2%Launched BUA (sqm) 344,664 Delivery start 2014Launched inventory value (EGP mn) 2,248 Delivery end 2017Sold inventory (EGP mn) 2,243 Value of units delivered (EGP mn) 2216Number of units launched 1,391 Number of units delivered 1372


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 December 2017.²for launched phases.

26

Launch date 2014 Receivables outstanding (EGP mn) 926Gross Land Area (sqm) 237,594 Development cost for launched¹ (EGP mn) 853Total BUA (sqm) 164,637 Capex remaining for launched 26%Launched BUA (sqm) 164,637 Delivery start 2017Launched inventory value (EGP mn) 1,707 Delivery end² 2019Sold inventory (EGP mn) 1,700 Value of units delivered (EGP mn) 780 Number of units launched 776 Number of units delivered 46


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

Launch date 2008 Receivables outstanding (EGP mn) 296Gross Land Area (sqm) 2,428,283 Development cost for launched¹ (EGP mn) 2,742Total BUA (sqm) 575,325 Capex remaining for launched 5%Launched BUA (sqm) 575,325 Delivery start 2010Launched inventory value (EGP mn) 4,435 Delivery end 2017Sold inventory (EGP mn) 4,368 Value of units delivered (EGP mn) 4,175Number of units launched 1,249 Number of units delivered 1,229


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

Launch date 2009 Receivables outstanding (EGP mn) 331 Gross Land Area (sqm) 52,934 Development cost for launched¹ (EGP mn) 466 Total BUA (sqm) 72,220 Capex remaining for launched 20%Launched BUA (sqm) 72,220 Delivery start 2012Launched inventory value (EGP mn) 1,003 Delivery end 2018Sold inventory (EGP mn) 898 Value of units delivered (EGP mn) 507Number of units launched 221 Number of units delivered 118Gross Leasable Area (sqm) 0 Estimated Lease Income (EGP mn) ‐


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

Launch date 2009 Receivables outstanding (EGP mn) 98Gross Land Area (sqm) 54,727 Development cost for launched¹ (EGP mn) 931 Total BUA (sqm) 63,438 Capex remaining for launched 12%Launched BUA (sqm) 63,438 Delivery start 2013Launched inventory value (EGP mn) 1,018 Delivery end³ 2016Sold inventory (EGP mn) 807 Value of units delivered (EGP mn) 715Number of units launched ‐ Number of units delivered 254Gross Leasable Area² (sqm) 7,443 Estimated Lease Income² (EGP mn) 16


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 December 2017.²Estimated lease income in 2020.

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 2014Launched BUA (sqm) 13,254 Delivery end 2015Gross Leasable Area² (sqm) 13,254 Estimated Lease Income² (EGP mn) 25


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 December 2017.²Estimated lease income in 2020. ³for launched phases.

31

Launch date 2010 Receivables outstanding (EGP mn) 10 Gross Land Area (sqm) 172,591 Development cost for launched¹ (EGP mn) 202 Total BUA (sqm) 38,687 Capex remaining for launched 0%Launched BUA (sqm) 22,161 Delivery start 2012Launched inventory value (EGP mn) 353 Delivery end³ 2015Sold inventory (EGP mn) 353 Value of units delivered (EGP mn) 353 Number of units launched 56 Number of units delivered 56 Gross Leasable Area² (sqm) 4,187 Estimated Lease Income² (EGP mn) 12


Project PortfolioOne16A 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 December 2017.

32

Launch date 2017 Receivables outstanding (EGP mn) 340Gross Land Area (sqm) 35,293 Development cost for launched¹ (EGP mn) 236Total BUA (sqm) 22,865 Capex remaining for launched 80%Launched BUA (sqm) 22,865 Delivery start 2020Launched inventory value (EGP mn) 497 Delivery end² 2020Sold inventory (EGP mn) 437 Value of units delivered (EGP mn) 0Number of units launched 125 Number of units delivered 0


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 December 2017.

33

Launch date 2017 Receivables outstanding (EGP mn) 369

Gross Land Area (sqm) 130,193 Development cost for launched¹ (EGP mn) 569

Total BUA (sqm) 127,118 Capex remaining for launched 84%Launched BUA (sqm) 62,698 Delivery start 2020Launched inventory value (EGP mn) 901 Delivery end² 2020Sold inventory (EGP mn) 457 Value of units delivered (EGP mn) 0Number of units launched 164 Number of units delivered 0


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

Launch date 2010 Receivables outstanding (EGP mn) 106Gross Land Area (sqm) 126,000 Development cost for launched¹ (EGP mn) 444 Total BUA (sqm) 123,733 Capex remaining for launched 0%Launched BUA (sqm) 123,733 Delivery start 2012Launched inventory value (EGP mn) 655 Delivery end 2015Sold inventory (EGP mn) 655 Value of units delivered (EGP mn) 619Number of units launched 488 Number of units delivered 469


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) 2,642Gross Land Area (sqm) 871,922 Development cost for launched¹ (EGP mn) 3,685Total BUA (sqm) 702,056 Capex remaining for launched 54%Launched BUA (sqm) 570,008 Delivery start 2016Launched inventory value (EGP mn) 5,964 Delivery end² 2017Sold inventory (EGP mn) 5,723 Value of units delivered (EGP mn) 1,882Number of units launched 2,575 Number of units delivered 1,141


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) 3,294Gross Land Area (sqm) 1,266,215 Development cost for launched¹ (EGP mn) 5,262Total BUA (sqm) 619,991 Capex remaining for launched 73%Launched BUA (sqm) 418,725 Delivery start 2018Launched inventory value (EGP mn) 8,039 Delivery end² 2019Sold inventory (EGP mn) 5,664 Value of units delivered (EGP mn) ‐ Number of units launched 1,433 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 December 2017²for launched phase.

37

Launch date 2015 Receivables outstanding (EGP mn) 874Gross Land Area (sqm) 441,000 Development cost for launched¹ (EGP mn) 1,068Total BUA (sqm) 102,762 Capex remaining for launched 48%Launched BUA (sqm) 102,762 Delivery start 2018Launched inventory value (EGP mn) 1,739 Delivery end² 2019Sold inventory (EGP mn) 1,513 Value of units delivered (EGP mn) ‐ Number of units launched 352 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.

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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.

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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.

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Management

Ayman AmerChief Business Development & Procurement OfficerWith 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.

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Ramy RaafatChief Development OfficerWith 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 Chief Technical OfficerWith 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

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Diverse Shareholding Structure

Shareholders Breakdown(as at 31st of December 2017)

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 December 2017)(as at 31st of December 2017)

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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.

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SODIC Investor Relations Contact Information

Heba [email protected]

Tel: +202 3827 0300

IR Websiteir.SODIC.com

Corporate WebsiteSODIC.com

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