9months 2010 Investors' Presentation - Palm Hills Developments
9months 2010 Investors' Presentation - Palm Hills Developments
9months 2010 Investors' Presentation - Palm Hills Developments
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<strong>9months</strong> <strong>2010</strong><br />
Investors’ <strong>Presentation</strong><br />
<strong>Palm</strong> <strong>Hills</strong> <strong>Developments</strong> © | November <strong>2010</strong>
<strong>Palm</strong> <strong>Hills</strong> <strong>Developments</strong> © | November <strong>2010</strong><br />
Disclaimer<br />
This presentation is being provided to you on a confidential basis and may not be distributed or reproduced in any form.<br />
This presentation is intended for information purposes only and does not constitute or form part of an offer for sale or<br />
subscription or an invitation or solicitation of an offer to subscribe for or purchase securities of any kind and neither<br />
this document nor anything contained herein shall form the basis of any contract or commitment from any party<br />
whatsoever<br />
This presentation has been prepared by <strong>Palm</strong> <strong>Hills</strong> Development Company (“PHD”) and reflects the management’s<br />
current expectations or strategy concerning future events and are subject to known and unknown risks and<br />
uncertainties.<br />
Some of the statements in this presentation constitute "forward-looking statements" that do not directly or exclusively<br />
relate to historical facts. These forward-looking statements reflect PHD’s current intentions, plans, expectations,<br />
assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which<br />
are outside PHD’s control. Important factors that could cause actual results to differ materially from the expectations<br />
expressed or implied in the forward-looking statements include known and unknown risks. PHD undertakes no<br />
obligation to revise any such forward-looking statements to reflect any changes to its expectations or any change in<br />
circumstances, events, strategy or plans.<br />
Because actual results could differ materially from PHD’s current intentions, plans, expectations, assumptions and<br />
beliefs about the future, you are urged to view all forward-looking statements contained in this presentation with due<br />
care and caution and seek independent advice when evaluating investment decisions concerning PHD.<br />
No representation or warranty, express or implied, is made or given by or on behalf of PHD or any of its respective<br />
members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the<br />
information or opinions contained in or discussed at this presentation.<br />
These materials are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or<br />
resident or located in any locality, state, country or other jurisdiction where such distribution, publication availability or<br />
use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.<br />
By attending the presentation to which this document relates or by accepting this document you will be taken to have<br />
represented and warranted that you have read and agree to comply with the contents of this disclaimer.
Agenda<br />
At a Glance<br />
Competitive Advantages<br />
Forward Strategy<br />
9M’10 Performance<br />
<strong>Palm</strong> <strong>Hills</strong> <strong>Developments</strong> © | November <strong>2010</strong>
At a Glance<br />
<strong>Palm</strong> <strong>Hills</strong> <strong>Developments</strong> © | November <strong>2010</strong>
AT A GLANCE<br />
<strong>Palm</strong> <strong>Hills</strong> <strong>Developments</strong><br />
Bringing first-class<br />
real estate<br />
developments to<br />
the Egyptian<br />
market since 2005<br />
Publicly traded on<br />
the EGX and LSE<br />
since May 2008<br />
Robust growth as PHD’s<br />
backlog increased by 39% from<br />
end of 2009 and almost tripled<br />
since 2007<br />
<strong>Palm</strong> <strong>Hills</strong> <strong>Developments</strong> has almost tripled its<br />
backlog since 2007<br />
Million EGP<br />
4,642<br />
8,344<br />
9,383<br />
11,522<br />
13,051<br />
2007 2008 2009 H1 '10 9M'10<br />
19 projects<br />
launched, including<br />
15 under<br />
construction across<br />
Egypt<br />
An EGP 37.4 billion<br />
independently<br />
valued land bank<br />
as of October 2009<br />
Net profit growth<br />
of 230% over the<br />
five year period<br />
from 2005 to<br />
2009<br />
<strong>Palm</strong> <strong>Hills</strong> <strong>Developments</strong> has launched 19 projects<br />
across Egypt<br />
4<br />
6<br />
10<br />
A 47.8 million<br />
square meter land<br />
bank, including 6<br />
million in Saudi<br />
Arabia<br />
2005 2006 2007 2008 2009 <strong>2010</strong><br />
13<br />
17<br />
19<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
5
AT A GLANCE<br />
PHD’s Launched Projects<br />
With a land bank of 47.8 million m², <strong>Palm</strong> <strong>Hills</strong> has grown organically from a one-project<br />
company into Egypt’s largest developer with 19 projects launched<br />
North Coast<br />
Hacienda Bay ���<br />
Hacienda White ��<br />
Hacienda White 2 ��<br />
Seashell �<br />
West Cairo<br />
Cascade �<br />
Golden <strong>Palm</strong> �<br />
Bamboo <strong>Palm</strong> �<br />
Golf Views ��<br />
Golf Extension �<br />
<strong>Palm</strong> Parks ��<br />
Village Gardens October �<br />
Down Town �<br />
Botanica� �<br />
East Cairo<br />
<strong>Palm</strong> <strong>Hills</strong> Katameya�<br />
The Village ��<br />
The Village Gate �<br />
Village Gardens Katameya�<br />
Park View �<br />
<strong>Palm</strong> <strong>Hills</strong> Katameya Ext. �<br />
�Residential<br />
� Commercial<br />
� Hotels<br />
3<br />
Red Sea<br />
<strong>Palm</strong> Sokhna��<br />
4<br />
1<br />
2<br />
5<br />
6<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
6
AT A GLANCE<br />
Achieving impressive growth rates. . .<br />
<strong>Palm</strong> <strong>Hills</strong> Development’s rapid growth remains supported by a favorable real estate market,<br />
pent-up demand and a strong management team<br />
PHD has consistently been able to grow its<br />
new sales (reservations)<br />
New reservations p.a.<br />
Million EGP<br />
4,502<br />
4,302<br />
New contracts p.a.<br />
Million EGP<br />
527<br />
1,115<br />
2,999<br />
2,634 2,521<br />
2005 2006 2007 2008 2009 H1 '10 9M'10<br />
Cumulative number of units sold from<br />
2005 to <strong>2010</strong><br />
160<br />
670<br />
2,850<br />
5,515<br />
6,218 7,638<br />
8,511<br />
2005 2006 2007 2008 2009 H1 '10 9M'10<br />
… and to convert them into contracts.<br />
13<br />
210<br />
1,093<br />
3,106 3,262<br />
1,619<br />
2,665<br />
2005 2006 2007 2008 2009 H1 '10 9M'10<br />
… Allowing our backlog to grow by 39% from<br />
end of 2009 and by 181% since 2007<br />
11,522<br />
8,344<br />
9,383<br />
13,051<br />
Total backlog as of 31 December except for <strong>2010</strong><br />
Million EGP<br />
4,642<br />
2007 2008 2009 H1 '10 9M'10<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
7
AT A GLANCE<br />
. . . That reflect on our financials.<br />
Our sales grew by a CAGR of 77% in<br />
the last 6 years<br />
Million EGP<br />
34<br />
78<br />
535<br />
1,235<br />
1,145<br />
05 06 07 08 09<br />
PHD kept debt under control while equity<br />
experienced steep growth<br />
Million EGP<br />
375<br />
75<br />
0 5<br />
1,130<br />
273<br />
2,832<br />
497<br />
3,410<br />
601<br />
4,634<br />
751.2<br />
05 06 07 08 09 9M '10<br />
Equity Bank debt<br />
Supporting prices and raising net profits, which<br />
expanded by 230% over the period<br />
Million EGP<br />
4<br />
38<br />
180<br />
658<br />
476<br />
05 06 07 08 09<br />
And has achieved industry-leading returns<br />
on equity (2009)<br />
PHD SODIC<br />
16.3%<br />
-6.6%<br />
TMG<br />
Holding<br />
4.9% 4.9%<br />
Avrg.<br />
Egypt Avrg. UAE Avrg. KSA<br />
1.9%<br />
Source: DB – Egyptian Real Estate, 17 September <strong>2010</strong><br />
5.6%<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
8
AT A GLANCE<br />
Shareholders value<br />
PHD shares offer value pricing, trading at a significant discount to net asset value<br />
In million EGP<br />
375.6<br />
3,410<br />
19,500<br />
33,140<br />
37,429<br />
1,966<br />
5,318<br />
Equity Net asset value Mkt Capitalization<br />
Equity refers to shareholders equity as of 31 December of each respective year as shown in our IFRS<br />
financial statements<br />
Net asset value refers to the annual Net Asset Valuation performed by an independent firm (CBRE)<br />
Market capitalization as of 31 of December of 2008 and 2009<br />
2006<br />
2007<br />
2008<br />
2009<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
9
AT A GLANCE<br />
Long term growth prospects<br />
The future growth of PHD is based on 5 strong underlying fundamentals.<br />
Most diversified portfolio<br />
of projects<br />
Backlog of EGP 13 billion<br />
Strong unleveraged<br />
balance sheet<br />
Properties deliveries<br />
Regional expansion on<br />
the agenda<br />
19 projects, giving us exposure to upper and upper-middle<br />
income segments.<br />
PHD has used only 9 million m 2 of its 47.8 million m 2 land bank.<br />
Additional backlog of EGP 17. 2 billion can be generated<br />
within launched projects within 4 years<br />
With net debt to equity less than 10%, our B/S can support<br />
major expansion in hotels & shopping malls.<br />
PHD will deliver units worth EGP 2.6 bln and EGP 2.3 bln in<br />
2011 and 2012 respectively<br />
Regional expansion to start with the 6 million m 2 acquired in<br />
Saudi Arabia<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
10
AT A GLANCE<br />
Organizational and Governance Structures<br />
Given the diversity of PHD’s projects, our structure is a balanced approach between central<br />
and area control within a strong corporate governance framework. PHD uses a scalable<br />
outsourcing model in construction, engineering and sales.<br />
Centralized functions<br />
Organizational structure Corporate governance structure<br />
Sales<br />
HR &<br />
Admin.<br />
Operations<br />
& Controls<br />
Finance<br />
Customer<br />
care<br />
Legal<br />
Engineering<br />
CEO<br />
5 Area Development VPs<br />
6th of October area<br />
New Cairo Area<br />
Cairo Alex desert road area<br />
Alex. & North Coast Area<br />
Red Sea Area<br />
Project management<br />
teams<br />
General assembly<br />
Board of Directors<br />
Audit Committee<br />
Chief Executive Officer<br />
Board Committees<br />
Remuneration committee<br />
Nomination committee<br />
Disclosure committee<br />
Other non-board committees<br />
Investment committee<br />
Pricing committee<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
11
AT A GLANCE<br />
Analysts’ Consensus<br />
Broker Rating<br />
Target Price<br />
(EGP per share)<br />
Upside 1<br />
Citigroup Buy/High Risk 7.8 +35%<br />
Credit Suisse Outperform 7.63 +35%<br />
HSBC Overweight 8.00 +38%<br />
HC Securities Hold 7.50 +30%<br />
EFG Hermes Buy 7.50 +30%<br />
Pharos Buy 8.10 40%<br />
Naeem 11.3 95%<br />
1 based on share price of EGP 5.78 as of 30 Sep <strong>2010</strong>.<br />
Upside<br />
� Most geographically diversified land bank<br />
at cheap prices.<br />
� Largest sales and distribution network.<br />
� Backlog still on the rise due to successful<br />
shift to upper-middle segment.<br />
� Low cost of land and in-house<br />
construction maintains higher profitability<br />
levels.<br />
� Recurring revenue set to grow.<br />
� Rights issue boosts liquidity.<br />
� Exposure to upper-middle and high-end<br />
income segments.<br />
Downside (risks)<br />
� High fixed-land liabilities payment.<br />
� Secondary homes dominate the land<br />
bank.<br />
� Volatile second homes sales<br />
� Land disputes in Egypt.<br />
� Resource management problems leading<br />
to project delays.<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
12
Competitive Advantages<br />
<strong>Palm</strong> <strong>Hills</strong> <strong>Developments</strong> © | November <strong>2010</strong>
Competitive Advantages<br />
<strong>Palm</strong> <strong>Hills</strong> Development’s competitive advantages and business structure allow for consistent<br />
outperformance of industry averages<br />
Best in class sales force and<br />
construction operations<br />
Strongest off-plan sales<br />
capabilities<br />
Egyptian real estate<br />
markets remain strong<br />
Secured growth from<br />
launched projects<br />
Large, diversified land bank<br />
at attractive prices<br />
Predominantly selffinancing<br />
business model<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
14
COMPETITIVE ADVANTAGES<br />
Strong market fundamentals<br />
Fundamentals remain strong across all real estate sectors<br />
Residential Market<br />
�Huge pent-up demand: 12-16 million inhabitants in Cairo; Middle range segment is 35-40% of demand<br />
�Favorable demographics: Half of the population is below age 25<br />
�Real demand: 600,000 marriages annually<br />
�Still cash driven: Mortgages represent only 0.4% of GDP<br />
�No significant price decline witnessed in the primary market in 2009<br />
�Increased availability of liquidity to Egypt’s growing consumer population<br />
Office Market<br />
�Business parks are very scarce<br />
�Significant shortage of Grade A office space<br />
�No new projects before 2013<br />
� 80% of office spaces within residential buildings<br />
Robust Egyptian Real Estate Market<br />
Retail Market<br />
� Retail per capita is lower than most peer countries<br />
(0.05 m² per capita)<br />
� World-class shopping malls are non-existent<br />
� Retail expenditure is 15% of family budgets<br />
� Increased urbanization will foster retail spending<br />
� A significant opportunity to develop hypermarkets<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
15
COMPETITIVE ADVANTAGES<br />
Growth drivers<br />
East & West Cairo emerging as high growth<br />
residential markets<br />
Est. area<br />
Est. pop. by 2017<br />
“Hot Spot”<br />
Current offering<br />
Character<br />
18,000<br />
16,000<br />
14,000<br />
12,000<br />
10,000<br />
8,000<br />
6,000<br />
4,000<br />
2,000<br />
0<br />
Moscow<br />
Prague<br />
Kiev<br />
Budapest<br />
Shanghai<br />
Cairo<br />
Riyadh<br />
Makkah<br />
Madinah<br />
West Cairo<br />
6 th of October Area<br />
410 km2 4m<br />
Sheikh Zayed<br />
� 100+ compounds<br />
� 20 schools &<br />
universities<br />
� Commercial centre<br />
around smart<br />
village<br />
Hong Kong<br />
Singapore<br />
Rome<br />
Dubai<br />
Paris<br />
Barcelona<br />
East Cairo<br />
New Cairo Area<br />
225 km2 4m<br />
Katameya<br />
Cairo remains affordable by international<br />
standards<br />
� 80+ compounds<br />
� 50 schools &<br />
universities<br />
� Most exclusive<br />
residential suburbs<br />
Global residential prices USD per m² (y-axis) vs. USD GDP per capita<br />
(x-axis) 2008/2009<br />
London<br />
Tokyo<br />
Amsterdam<br />
Abu Dhabi<br />
New York<br />
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000<br />
Source: Colliers International, Global Property Guide, CB Richard Ellis, PriceWaterhouse<br />
Coopers, Better Homes, HSBC estimates.<br />
Doha<br />
Estimates show demand exceeding supply<br />
Annual Supply and Demand For Residential Units<br />
18%<br />
16%<br />
14%<br />
12%<br />
10%<br />
8%<br />
6%<br />
4%<br />
2%<br />
0%<br />
Even among developing countries,<br />
Egypt has low mortgage penetration at<br />
less than 1% of GDP<br />
Syria<br />
Egypt<br />
Kuwait<br />
Jordan<br />
Russia<br />
Source: HSBC estimates<br />
Demand Supply Gap<br />
Upscale 75,626 73,205 2,421<br />
Middle 415,944 195,213 220,731<br />
Low-end 768,867 219,615 549,252<br />
Total 1,260,437 488,033 772,404<br />
•*Upscale, Middle and Low end Supply is estimated as 6%, 33%,61% of<br />
total supply respectively<br />
•*Upscale, Middle and Low end Demand is estimated as 15%, 40% and<br />
45% of total demand respectively<br />
Source: USAID, Prime estimate. (Upscale properties indicatively over<br />
EGP 1.5m/unit; Middle indicatively over EGP 0.5m/unit)<br />
Mortgage market development will impact<br />
housing demand<br />
Indonesia<br />
Brazil<br />
Oman<br />
Qatar<br />
KSA<br />
Bahrain<br />
India<br />
Lebanon<br />
Tunisia<br />
UAE<br />
China<br />
Mexico<br />
Philippines<br />
Morocco<br />
Thailand<br />
Chile<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
16
COMPETITIVE ADVANTAGES<br />
One of the most diversified land banks in Egypt<br />
Breakdown of land bank across 8<br />
regional destinations<br />
0% 14%<br />
13%<br />
11%<br />
15%<br />
1. 6th of October<br />
2. New Cairo<br />
3. North Coast<br />
12% 4%<br />
31%<br />
4. Cairo Alexandria Desert Road<br />
5. Gamsha<br />
6. Ain Sokhna<br />
7. Alexandria<br />
8. Saudi Arabia<br />
Land acquired at submarket<br />
rates<br />
Land diversification<br />
Attractive second<br />
homes offering<br />
• Avg. price/m 2 = EGP 173 1 ; selling now at<br />
approx. EGP 3,300 2<br />
• Superior profitability<br />
1 as of June <strong>2010</strong><br />
2 based on contracted values for the period Jan.-Jun. <strong>2010</strong><br />
• Cross-selling through different locations<br />
• Increased customer loyalty<br />
• Ability to launch multiple projects<br />
catering to different market needs<br />
• Shorter cash-to-cash cycles (4 to 5 years<br />
from launch to hand-over)<br />
• Increased EBITDA margins<br />
• Hedge against seasonality in sales<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
17
COMPETITIVE ADVANTAGES<br />
Predominantly self financing business model and<br />
short cash cycle<br />
PHD’s efficient business model, effective sales team and fast, on-time construction<br />
schedule means that the developer requires minimal upfront capital or ongoing working<br />
capital to fund its projects<br />
Land Acquisition Off-plan Sales<br />
(reservation phase)<br />
� 10% down<br />
payment<br />
� Balance paid over<br />
10 years<br />
� Including 3 yr.<br />
grace period<br />
� Interest bearing at<br />
approx. 9%<br />
� Master plan<br />
developed<br />
� 10% DP collected<br />
� Phased out sales<br />
plan<br />
� On average 50-<br />
70% off-plan sales<br />
Contracts Construction Post<br />
Handover<br />
� Licenses & Gov.<br />
approvals<br />
� Signed contracts<br />
� DP increased to 15%<br />
� Post-dated checks<br />
(PDC’s) received<br />
� PDC’s are drawn<br />
� Phased<br />
construction<br />
� 60-70% selffinanced<br />
� Units delivered<br />
� Full payment<br />
received<br />
� Facilities<br />
management<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
18
COMPETITIVE ADVANTAGES<br />
Room for growth<br />
PHD still has 37 mln m² of unutilized land bank<br />
Utilized land bank, 9 mln m 2<br />
Unutilized land bank, 37.5 mln m 2<br />
Additional inventory still available for sale is approx.<br />
EGP 17.2 bln (including phases not launched)<br />
Units available for sale 1 , EGP 17 bln<br />
Reserved units, EGP 3.4 bln<br />
Contracted units, EGP 9.6 bln<br />
1 Covering launched projects including phases not launched yet<br />
Overall sales ratio in our launched<br />
projects/phases is approx. 66%<br />
200<br />
1,715<br />
1,465<br />
Units available for sale, 28%<br />
Units sold, 72%<br />
Deliveries to come online starting 2011<br />
Number of units to be delivered<br />
Based on contracts signed as of 30 Jun. <strong>2010</strong><br />
1,463<br />
772<br />
<strong>2010</strong> 2011 2012 2013 2014<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
19
COMPETITIVE ADVANTAGES<br />
Strongest off-plan sales capabilities<br />
2005/06/07 Launched Projects<br />
100% 100% 100%<br />
2008 Launched Projects<br />
20%<br />
2%<br />
40% 46% 54%<br />
Golf Ext (A, B &C) Village Gate Ain Sokha<br />
2009/<strong>2010</strong> Launched Projects<br />
5%<br />
94%<br />
29%<br />
53%<br />
5%<br />
5%<br />
94%<br />
4%<br />
79% 74%<br />
Cascade Bamboo Golden Golf Views Katameya Bamboo Ext Hacienda Bay Casa The Village <strong>Palm</strong> Park<br />
89%<br />
3%<br />
VGO VGK Botanica (Phase 1) Botanica (Phase 2) Hacienda White Hacienda White 2 Park View<br />
90%<br />
9%<br />
64%<br />
13%<br />
76%<br />
10%<br />
73%<br />
56%<br />
3%<br />
88%<br />
1%<br />
53%<br />
1%<br />
43%<br />
9M'10<br />
9M'10<br />
Up till FY 2009<br />
Up till FY 2009<br />
9M'<strong>2010</strong><br />
Up till FY 2009<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
20
COMPETITIVE ADVANTAGES<br />
Cost control & speed of delivery<br />
Through vertical integration and dual construction arms<br />
PHD’s unparalleled dual construction arms give the company the ability to simultaneously deliver multiple<br />
projects — a strength that lends significant sales and cash cycle advantages.<br />
The dual construction strategy:<br />
1) PHD constructs at cost for superior margins: <strong>Palm</strong> <strong>Hills</strong> <strong>Developments</strong> is the only real estate developer in<br />
Egypt with an in-house construction unit.<br />
2) PHD ensures speed, capacity and quality through a mutually exclusive agreement with Egypt’s second<br />
largest construction firm, Hassan Allan Construction: The companies share a joint venture, UCC, based on<br />
a cost plus contract basis that locks in attractive 9.5% margins, compared to the average 20 – 25% cost<br />
plus paid by competitors.<br />
Significant property deliveries in the<br />
coming 4 years<br />
200<br />
1,715<br />
1,465 1,463<br />
772<br />
<strong>2010</strong> 2011 2012 2013 2014<br />
No. of units to be delivered<br />
Significantly lower construction costs<br />
compared to the industry average<br />
9.50%<br />
22.50%<br />
PHD Industry avg.<br />
PHD Industry avg.<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
21
COMPETITIVE ADVANTAGES<br />
Best in class sales teams<br />
1) Largest direct sales force in Egypt with 86 salesmen, located in sales offices<br />
across Cairo<br />
2) Exclusive agreement with Coldwell Banker to promote and sell PHD’s properties<br />
exclusively<br />
3) Expanding sales offices into Europe (London) and the Gulf Region (Dubai) to<br />
capture a portion of expatriate Egyptian and foreign sales<br />
4) New branches<br />
� Alexandria branch: opened<br />
� London office: opened<br />
� UAE office: in process<br />
� KSA office: in process<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
22
Forward Strategy<br />
<strong>Palm</strong> <strong>Hills</strong> <strong>Developments</strong> © | November <strong>2010</strong>
FORWARD STRATEGY<br />
Delivering on our strategy<br />
Objective Strategy Initiative<br />
Stimulate<br />
demand<br />
Cater to new<br />
market segments<br />
Add recurring<br />
revenues<br />
Accelerate cash<br />
receipts<br />
� New launches, new projects<br />
� Use PHD’s brand equity<br />
� Targeted marketing campaigns<br />
� Increased value for money<br />
� Innovative financial “solutions”<br />
� Strategic alliances with value-added<br />
partners<br />
� Hospitality<br />
� Retail<br />
� Speed up construction<br />
� Focus on existing land bank<br />
� Value engineering<br />
� Launched 3 new projects in <strong>2010</strong><br />
� <strong>Palm</strong> Sokhna relaunch planned early 2011<br />
� Launched 5 projects in 2009<br />
� <strong>Palm</strong> <strong>Hills</strong> Katameya extension<br />
� “Power of 7”<br />
� Burooj transaction: Egyptian expats<br />
� New sales offices in UK & GCC<br />
� Village mall due for opening June 2011<br />
� Macor to add 250 rooms<br />
� Design brief in process for West Cairo<br />
project<br />
� Phase I Casa delivered ahead of<br />
schedule<br />
� Hacienda Bay Zone 1 to be delivered<br />
December <strong>2010</strong><br />
� Construction revenues: 9% of reported<br />
revenues in H1<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
24
FORWARD STRATEGY<br />
Adding recurring revenue streams<br />
PHD is moving to secure recurring cash flow sources in addition to the company’s primary<br />
development earnings – our strategy is to partner with the strongest hospitality, retail<br />
operators ,and brands.<br />
Hospitality Projects:<br />
� PHD has signed management agreements with Ritz Carlton,<br />
Jumeirah and Nikki Beach<br />
� Plans include establishing<br />
• A 163-room Ritz Carlton in Golf Views<br />
• 250 rooms under Jumeirah management at Gamsha Bay<br />
• A Nikki Beach Hotel at Hacienda Bay due for opening<br />
• Additional 250 rooms under MACOR in Sharm El Sheikh &<br />
6 th of October Novotel<br />
Retail Projects:<br />
PHD is building its first retail shopping mall in East<br />
Cairo, 25,000 m² of GLA due for opening on the<br />
second half of 2011.<br />
PHD has teamed with Pradera for the management<br />
of all its retail assets.<br />
Studies are underway for the construction of a<br />
second mega mixed-use project in West Cairo<br />
(>100,000 m² of GLA)<br />
Projected Number of rooms under signed<br />
management agreements<br />
763<br />
1,013<br />
1,178<br />
1,341<br />
1,591<br />
<strong>2010</strong> 2011 2012 2013 2014<br />
PHD’s East Cairo Mall “<strong>Palm</strong> Galleria”<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
25
FORWARD STRATEGY<br />
Cater to new market segments. . .<br />
PHD is diversifying its product offerings from high-end offerings, shifting towards higher<br />
density, more affordable units to attract a wider customer base and increase its flexibility in<br />
response to changing market demands<br />
PHD has achieved market flexibility and<br />
broader market penetration – without<br />
sacrificing quality or pressuring per m 2<br />
pricing – by reducing unit size and<br />
introducing maximum-efficiency designs.<br />
…Expanding PHD’s customer base to 6,809<br />
at the end of the 9M’<strong>2010</strong><br />
Lower Price Points = Rapidly Expanding Customer Base<br />
4,242<br />
5,379<br />
5,750<br />
6,809<br />
2008 9M '09 2009 9M '10<br />
Cumulative units sold by value range<br />
>2.0<br />
(2,500) 13%<br />
1.5-2.0<br />
(1,750)<br />
1.0-1.5<br />
(2,100)<br />
13%<br />
19%<br />
16%<br />
39%<br />
0-0.5<br />
(1,750)<br />
0.5-1.0<br />
(4,900)<br />
The average price of a PHD unit has fallen 11%<br />
since 2007, from EGP 1.7 mln to EGP 1.5 mln<br />
961<br />
1,088<br />
1,651<br />
Price range in million EGP<br />
(Number of units)<br />
1,638<br />
1,620<br />
1,489<br />
2005 2006 2007 2008 2009 9M'<strong>2010</strong><br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
26
FORWARD STRATEGY<br />
. . . Without sacrificing selling prices<br />
More affordable real estate options and a wider market have pushed up demand – and<br />
prices – at PHD projects<br />
PHD average selling prices of land (EGP per square<br />
meter of land) has more than tripled from 2005<br />
(CAGR 28% p.a.)<br />
964<br />
1,120<br />
2,045<br />
2,680<br />
3,001<br />
3,812<br />
2005 2006 2007 2008 2009 9M'10<br />
PHD average selling prices of built-up area (EGP<br />
per square meter of BUA) has almost doubled<br />
(CAGR 15% p.a.)<br />
PHD’s average selling price per square meter of land, EGP PHD’s average selling price per square meter of BUA, EGP<br />
1,749<br />
1,965 2,095<br />
2,774<br />
3,434 3,555<br />
2005 2006 2007 2008 2009 9M'10<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
27
9M’<strong>2010</strong> Performance<br />
<strong>Palm</strong> <strong>Hills</strong> <strong>Developments</strong> © | November <strong>2010</strong>
9M’<strong>2010</strong> PERFORMANCE<br />
Activities wrap-up<br />
� Q2 <strong>2010</strong> was our best quarter ever in terms of reservations.<br />
� Closed the acquisition of 52% of Macor for Securities Investments Company (hotels); PHD’s<br />
stake has since grown to 60%<br />
� Successful conclusion of rights issue transaction<br />
• The first phase of PHD’s EGP 698.88 million rights issue was nearly 99% subscribed.<br />
• The second round, to cover the remaining 1%, was more than 500-times oversubscribed.<br />
� Conclusion of bulk sale deal with Burooj<br />
� New projects launched<br />
• <strong>Palm</strong> <strong>Hills</strong> Katameya Extension (New Cairo)<br />
• Hacienda White II (North Coast)<br />
• Botanica Phase II (Cairo-Alex Desert Road)<br />
• Seashell (North Coast)<br />
� Launch of “Power of 7” campaign<br />
• Seven-year payment terms for <strong>Palm</strong> <strong>Hills</strong> Katameya Extension (VGK 2) and <strong>Palm</strong> Parks.<br />
• The “Power of 7” contributed 145 units with a value of EGP 378.2 mln<br />
� Closing of approx. EGP 1.1 billion in long-term finance<br />
� New sales offices opened in Alexandria, London and UAE (Dubai)<br />
� Signature of Jumeirah management agreement<br />
� Signature of an MOU with Pradera<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
29
9M’<strong>2010</strong> PERFORMANCE<br />
Performance highlights<br />
Gross new reservations Total cancellations<br />
Gross new contracts<br />
EGP million EGP million EGP million<br />
4,502<br />
1,595<br />
527<br />
1,115<br />
2,999<br />
2,634<br />
2005 2006 2007 2008 2009<br />
888<br />
1,781<br />
2,521<br />
4,302<br />
H1 '09 H2'09 H1 '10 9 M'10<br />
1,166<br />
580<br />
52%<br />
773<br />
1,747 1,781<br />
Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10<br />
0<br />
800<br />
2007 2008 2009<br />
998<br />
597<br />
382<br />
633<br />
H1 '09 H2'09 H1 '10 9M'10<br />
305 292<br />
13<br />
210<br />
1,093<br />
3,106 3,262<br />
2005 2006 2007 2008 2009<br />
1,330<br />
1,933<br />
1,619<br />
2,665<br />
H1 '09 H2'09 H1 '10 9M'10<br />
-18% 13%<br />
186<br />
196<br />
250<br />
Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10<br />
924<br />
1,009<br />
507<br />
1,111 1,047<br />
Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
30
9M’<strong>2010</strong> PERFORMANCE<br />
Financial highlights<br />
All numbers shown in Thousand EGP<br />
9M <strong>2010</strong><br />
EGP 000s<br />
9M 2009<br />
EGP 000s<br />
Net sales 899,967 675,044 33%<br />
Revenue from investment property 69,548 -<br />
Profit Shares from hospitality activities 11,579 -<br />
Total revenues 981,04 675,044 45%<br />
Cost of sales (339,771) (208,041) 63%<br />
Cost of investment property (10,268) -<br />
Gross profit 631,056 467,003 35%<br />
Margin 64% 69%<br />
SG&A (239,257) (96,021) 149%<br />
EBITDA 391,799 370,982 6%<br />
Margin 40% 55%<br />
EBIT 374,418 363,532 3%<br />
Margin 38% 54%<br />
Others, net 56,612 34,766 63%<br />
Minority interest (16,372) (51,114) -68%<br />
Net profit after tax & minority interest 345,144 290,522 19%<br />
Margin 35% 43%<br />
∆%<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
31
9M’ <strong>2010</strong> PERFORMANCE<br />
Growth analysis<br />
9M’ 10 reported revenue increased by 45% versus 9M’09<br />
EGP million<br />
1,000<br />
800<br />
600<br />
400<br />
200<br />
-<br />
675<br />
9M'09 reported sales<br />
First-home projects were the major growth drivers in 9M‘10<br />
Golf Views, 17%<br />
155<br />
Golf Ext, 22%<br />
194<br />
HW2, 28%<br />
255<br />
180<br />
Land sales rev.<br />
-26 -15<br />
NPV disc.<br />
Others<br />
35<br />
Sales returns<br />
VGK,7%<br />
64<br />
PH Kat, 6%<br />
53<br />
Others, 14%<br />
126<br />
51 11 70<br />
Construction rev.<br />
Changes between 9M ‘09 and 9M ‘10<br />
Hospitality rev.<br />
HW1, 6%<br />
49<br />
Club Revenues<br />
981<br />
9M'10 reported sales<br />
Project name, % to total gross revenues<br />
Gross revenues in millions<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
32
H1 <strong>2010</strong> PERFORMANCE<br />
Top line growth 2011<br />
Re-launch of <strong>Palm</strong> Sokhna in 2011<br />
Conversion of Botanica’s and <strong>Palm</strong> <strong>Hills</strong> Katameya<br />
extension’s reservations to contracts<br />
Possible launch of new phases in Botanica<br />
Units’ deliveries in Casa, Bamboo Ext., <strong>Palm</strong> <strong>Hills</strong><br />
Katameya, the Village and Hacienda Bay<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
33
9M <strong>2010</strong> PERFORMANCE<br />
Capital structure<br />
Capitalization as of 30 September <strong>2010</strong><br />
100%<br />
80%<br />
60%<br />
40%<br />
20%<br />
0%<br />
12%<br />
Long Term<br />
Debt<br />
2%<br />
Short Term<br />
Debt<br />
86%<br />
86%<br />
12%<br />
Equity Total<br />
Net Debt to EBITDA (x)<br />
1.2<br />
1<br />
0.8<br />
0.6<br />
0.4<br />
0.2<br />
0<br />
1.01<br />
0.19<br />
0.3<br />
0.25<br />
0.2<br />
0.15<br />
0.1<br />
0.05<br />
0<br />
0.88 0.84<br />
2007 2008 2009 9M'10<br />
Net Debt to Equity (x)<br />
0.25<br />
0.05<br />
0.14<br />
0.09<br />
2007 2008 2009 9M'10<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
34
Appendices<br />
<strong>Palm</strong> <strong>Hills</strong> <strong>Developments</strong> © | November <strong>2010</strong>
APPENDIX<br />
Revenue recognition methodology<br />
Villas, Town, and Twin houses<br />
Revenue<br />
• Client buys a Villa for EGP 2,000,000, the value of the unit is broken down as follows (EGP 1,200,000 Land Price and EGP 800,000 Built Up Area (BuA)<br />
• Client Pays 10% (of the unit value) as a Reservation Fee ; EGP 200,000 , this amount goes in the Balance Sheet under “Advances From Customers”<br />
• Client decides to sign the Contract and pays an additional 5% (of the unit value) : EGP 100,000.<br />
• The Total cash amount paid by the client as of now is EGP 300,000. This amount is transferred from “Advances from Customers” to “Billing in Excess of<br />
Cost” .<br />
• The client writes down checks for the rest of the unit value; which now is EGP 1,700,000 . The written checks are discounted to represent their fair value by<br />
an NPV discount of 10% and are found under “Notes Receivables”<br />
• The land portion of the unit value, which we assumed was EGP 1,200,000, is automatically recognized as revenue at the Income Statement (Net Sales) after<br />
being reduced by 1) Estimated infrastructure expenditure and 2) The NPV discount portion that is related to land revenue.<br />
• The remaining unit value, which we assumed was EGP 800,000 for the BuA, is recognized in the Balance Sheet under “Billing in excess of cost”<br />
• The EGP 800,000 for the BuA will be amortized and recognized as BuA revenue only when the unit reaches 50% construction completion<br />
Cost<br />
• The land cost constitutes the acquisition cost plus actual infrastructure expenditures incurred for the sold unit and is recognized under<br />
the COGS<br />
• The Actual Expenditures incurred on the construction of the Villa will be recognized as construction cost under the Cost of Goods sold<br />
(COGS) only after it reaches the 50% construction completion threshold.<br />
Apartments<br />
Revenue<br />
• Revenue and cost for the Apartments are recognized upon unit delivery<br />
• The client writes down checks for the total unit value of the contracted apartment. The checks are then discounted to represent their fair value by an NPV fixed<br />
discount rate of 10% and the amount goes in the Balance Sheet under “Notes receivables” and “Billing in excess of cost.” Revenue will be recognized at the Income<br />
Statement (Net Sales) upon delivery.<br />
Cost<br />
• The actual expenditure spent on the land acquisition cost remain in the Balance Sheet under “Development Properties” and the actual expenditure spent on the<br />
construction cost remain in the Balance Sheet under “Billing in excess of cost” , both will be recognized on the Income Statement (COGS) upon delivery.<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
36
APPENDIX<br />
Projects’ key data<br />
Table I Total development cost<br />
Location<br />
Total areas (Sq.Mt) Cost(EGP)/sq.mt<br />
Land BUA 1 BUA 2 Infrast. Land BUA Infrast.<br />
<strong>Palm</strong> Parks West Cairo 474,600 0 332,980 474,600 544 2,122 289<br />
Cascade, Bamboo, Golden West Cairo 520,380 102,663 36,372 520,380 246 1,200 100<br />
Golf Views West Cairo 2,049,432 516,602 0 2,049,432 318 1,882 105<br />
Golf Extension West Cairo 1,300,572 403,467 0 1,300,572 1,190 2,195 172<br />
Down Town (VGO) West Cairo 236,376 46,660 0 236,376 933 2,566 87<br />
Casa West Cairo 294,000 0 389,990 294,000 656 1,236 130<br />
Bamboo Extension West Cairo 168,000 59,121 0 168,000 139 1,540 150<br />
Botanica Cairo-Alex desert road 7,138,320 543,641 0 7,138,320 29<br />
Katameya <strong>Palm</strong> <strong>Hills</strong> East Cairo 928,438 305,047 0 928,438 295 2,065 100<br />
Village Gate East Cairo 131,040 0 138,043 131,040 113 2,037 190<br />
The Village East Cairo 105,000 0 83,438 105,000 525 1,870 129<br />
<strong>Palm</strong> Sokhna Ein Sokhna (Red Sea) 5,450,994 301,013 484,660 5,450,994 8 3,942 496<br />
Park View East Cairo 97,642 0 76,920 97,642 1,849 1,471 202<br />
Village Garden Katameya 1 East Cairo 275,100 31,670 121,410 275,100 886<br />
Village Garden Katameya 2 East Cairo 284,794 47,575 265,457 284,794 817<br />
1,489 149<br />
Hacienda Bay (ZONE 1) North Coast 2,306,333 198,979 200,735 2,306,333 66 2,110 265<br />
Hacienda White 1 North Coast 215,024 16,592 29,086 215,024 63 2,250 723<br />
Hacienda White 2 North Coast 472,262 48,665 52,329 472,262 124 2,250 579<br />
BUA 1: Built up areas for stand alone units (Villas, Twin house, Town house, etc)<br />
BUA 2: Built up areas for shared buildings (Apartments’ buildings, Chalets, condominiums, etc )<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
37
APPENDIX<br />
Projects’ key data (Cont’d)<br />
Table II Land liabilities (000s EGP)<br />
Paid <strong>2010</strong> 2011 2012 2013 2014 2015 2016<br />
<strong>Palm</strong> Parks 139,148 22,781 47,187 26,625 22,631 0 0 0<br />
Cascade, Bamboo, Golden 92,285 0 35,590 0 0 0 0 0<br />
Golf Views 408,081 4,869 128,929 109,858 0 0 0 0<br />
Golf Extension 243,484 42,874 268,006 198,586 198,586 198,586 198,586 198,586<br />
Down Town (VGO) 220,611 0 0 0 0 0 0 0<br />
Casa 140,207 0 52,641 0 0 0 0<br />
Bamboo Extension 23,400 0 0 0 0 0 0<br />
Botanica 210,532 0 20,100 20,100 20,100 20,100 20,100 0<br />
Katameya <strong>Palm</strong> <strong>Hills</strong> 73,381 0 34,816 38,298 41,780 85,376 0 0<br />
Village Gate 14,745 0 0 0 0 0 0<br />
The Village 31,180 0 8,089 15,844 0 0 0<br />
<strong>Palm</strong> Sokhna 13,314 0 4,544 4,374 4,203 4,033 3,863 3,693<br />
Park View 23,533 0 22,255 22,255 22,255 22,255 22,255 22,255<br />
Village Garden Katameya 1 32,192 0 30,135 30,135 30,135 30,135 30,135 30,135<br />
Village Garden Katameya 2 30,806 0 28,793 28,793 28,793 28,793 28,793 28,793<br />
Hacienda Bay (ZONE 1) 89,415 10,866 26,181 26,875 0 0 0 0<br />
Hacienda White 1 12,102 1,532 0 0 0 0 0 0<br />
Hacienda White 2 55,607 1,062 1,775 0 0 0 0 0<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
38
APPENDIX<br />
Projects’ key data (Cont’d)<br />
Table III Construction Schedule<br />
Infrastructure BUA Hand over<br />
Incurred<br />
000 EGP 2011 2012 2013 2014 2015<br />
Incurred<br />
000sEGP 2011 2012 2013 2014 2015<br />
<strong>Palm</strong> Parks 4 49% 21% 16% 14% 0% 36,629 49% 18% 19% 14% 0% 2014<br />
Cascade, Bamboo, Golden 43,780 100% - - - - 154,460 100% - - - - <strong>2010</strong>-11<br />
Golf Views 35,954 12% 35% 34% 14% 5% 86,513 25% 31% 27% 17% 1% 2013-15<br />
Golf Extension 11,603 37% 30% 20% 7% 6% - 25% 29% 26% 13% 7% 2013<br />
Down Town (VGO) 10,801 34% 33% 33% 0% 0% 11,241 35% 39% 26% 0% 0% 2013<br />
Casa - - - - - - 102,937 - - - - - 2011<br />
Bamboo Extension 17,092 100% - - - - 52,321 100% - - - - 2011<br />
Botanica 1,906 12% 30% 25% 25% 8% - 0% 13% 24% 30% 33% 2015<br />
Katameya <strong>Palm</strong> <strong>Hills</strong> 21,833 82% 12% 6% 0% 0% 254,336 70% 20% 10% 0% 0% 2011<br />
Village Gate 1,657 10% 35% 55% 0% 0% 62,609 54% 46% 0% 0% 0% 2012<br />
The Village 3,285 100% - - - - 93,672 100% - - - - 2011<br />
<strong>Palm</strong> Sokhna 628 19% 26% 26% 15% 15% - 0% 22% 31% 23% 24% 2014<br />
Park View 211 3% 11% 24% 38% 24% - 9% 28% 40% 22% 0% 2014<br />
Village Garden Katameya 1 - 16% 22% 43% 19% 0% - 10% 33% 40% 17% 0% 2012<br />
Village Garden Katameya 2 - 5% 32% 30% 25% 8% - 3% 24% 44% 24% 4% 2012<br />
Hacienda Bay (ZONE 1) 210,235 5% 51% 27% 17% 0% 168,850 66% 23% 11% 0% 0% 2011-12<br />
Hacienda White 1 4,324 6% 36% 58% 0% 0% 7,215 32% 68% 0% 0% 0% 2012<br />
Hacienda White 2 11% 51% 38% 0% 0% - 27% 50% 22% 0% 0% 2012<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
39
APPENDIX<br />
Projects’ key data (Cont’d)<br />
Table IV Total estimated revenues % sold Contracted areas<br />
Total sellable areas (Sq.Mt) Sales price per sq.mt 1 No. of Units Land area BUA 1 BUA 2<br />
Land BUA 1 BUA 2 Land BUA Sq.Mt Sq.Mt. Sq.Mt.<br />
<strong>Palm</strong> Parks - 0 325,293 6,745 54% 112,174<br />
Cascade, Bamboo, Golden 137,031 93,955 34,852 3,750 2,800 100% 230,160 150,912 31,567<br />
Golf Views 433,037 453,928 0 4,875 2,800 84% 432,823 300,274 -<br />
Golf Extension 551,675 417,680 0 3,750 2,800 60% 180,998 138,368 -<br />
Down Town (VGO) 48,816 52,868 0 3,427 4,090 99% 16,201 17,020 28,139<br />
Casa - 0 269,984 4,800 83% 168,554<br />
Bamboo Extension 76,716 60,792 0 3,750 2,800 93% 69,405 57,695 -<br />
Botanica 2,159,472 543,641 0 1,080 2,800 89% - - -<br />
Katameya <strong>Palm</strong> <strong>Hills</strong> 425,734 287,413 0 4,000 2,800 78% 305,836 207,435 -<br />
Village Gate - 0 100,071 - 6,500 48% - - 34,125<br />
The Village - 0 61,082 7,000 91% - - 59,047<br />
<strong>Palm</strong> Sokhna 574,005 301,013 484,660 2,950 4,026 54% 69,894 31,296 27,443<br />
Park View - 0 68,978 4,650 44% - - 366<br />
Village Garden Katameya 1 35,400 28,218 117,420 5,177 4,013<br />
82% 24,065 21,870 151,138<br />
Village Garden Katameya 2 35,880 40,604 208,902 4,951 2,800<br />
Hacienda Bay (ZONE 1) 643,325 172,936 171,967 3,367 4,720 73% 259,105 104,829 120,002<br />
Hacienda White 1 81,950 16,552 28,470 7,000 7,846 89% 38,407 14,472 17,956<br />
Hacienda White 2 121,457 50,645 61,655 6,132 4,883 56% 49,863 20,937 16,082<br />
BUA 1: Built up areas for stand alone units (Villas, Twin house, Town house, etc)<br />
BUA 2: Built up areas for shared buildings (Apartments’ buildings, Chalets, condominiums, etc )<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
40
APPENDIX<br />
Projects’ key data (Cont’d)<br />
Table V Projects' receivables 1<br />
000sEGP 000sEGP 000sEGP 000sEGP 000sEGP 000sEGP 000sEGP 000sEGP<br />
<strong>2010</strong> 2011 2012 2013 2014 2015 2016 2017<br />
<strong>Palm</strong> Parks 20,084 60,013 60,493 78,546 27,847 7,956 1,603 876<br />
Cascade, Bamboo, Golden 14,987 22,457 11,559 5,833 1,533 471 - -<br />
Golf Views 81,529 232,452 219,684 159,379 95,741 31,953 3,789 283<br />
Golf Extension 52,071 143,693 143,966 156,333 116,788 64,466 22,780 3,745<br />
Down Town (VGO) 9,048 28,929 29,516 29,158 37,380 10,501 1,973 169<br />
Casa 44,867 121,859 135,148 34,873 8,944 442 129 -<br />
Bamboo Extension 12,528 47,111 35,337 14,822 9,358 3,722 1,545 505<br />
Katameya <strong>Palm</strong> <strong>Hills</strong> 54,953 175,168 129,240 73,682 40,143 10,067 391 -<br />
Village Gate 8,849 28,652 29,146 33,491 11,658 2,658 369 -<br />
The Village 13,602 43,417 6,187 2,975 803 33 - -<br />
<strong>Palm</strong> Sokhna 22,140 72,656 70,497 68,338 54,992 6,521 184 -<br />
Park View 411 357 357 357 356 - - -<br />
Village Garden Katameya 49,236 108,441 108,298 108,619 127,829 72,023 16,528 1,024<br />
Hacienda Bay (ZONE 1) 99,988 285,936 243,556 164,214 90,375 33,725 3,970 307<br />
Hacienda White 1 28,835 71,531 70,953 69,547 26,715 10,039 2,577 55<br />
Hacienda White 2 37,528 88,788 88,938 98,126 73,055 41,469 11,974 2,989<br />
1 Based on contracted units only, does not include expected cash flows from reserved units<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
41
APPENDIX<br />
Analyst coverage<br />
Credit Suisse<br />
Ahmed Badr<br />
Dir: + (971) 4362-0223<br />
Email: ahmed.badr@credit-suisse.com<br />
Deutsche Bank<br />
Athmane Benzerroug<br />
Dir: (+971) 4 4283938<br />
Email: athmane.benzerroug@db.com<br />
Prime Holding<br />
Rehab Taha<br />
Dir: +(202) 33005724<br />
Email: rtaha@egy.primegroup.org<br />
Pharos Research<br />
Karim Yehia<br />
Dir: + (202) 27393670<br />
Email: Karim.yehia@pharosholding.com<br />
Citigroup<br />
David Spiez, CFA<br />
Dir: +971 4 509 9747<br />
Email: david.spiez@citi.com<br />
EFG-Hermes<br />
Jan Pawel Hasman<br />
Dir: + (202) 3332-1139<br />
Email: jpawel@efg-hermes.com<br />
Naeem Holding<br />
Hisham Halaldeen<br />
Tel: + (202) 33023799 Ext. 2221<br />
Email:hisham.halaldeen@naeemholding.com<br />
HSBC<br />
Patrick Gaffney<br />
Dir: +(202) 2529 8437<br />
Email: patrickgaffney@hsbc.com<br />
HC Securities<br />
Ankur Khetawat<br />
Dir: +971 4 293 5387<br />
Email: ankur.khetawat@af-hc.com<br />
CI Capital Holding<br />
Hany Mohamed Samy<br />
Tel: + (202) 3338-6274<br />
Email: hsamy@cicapitalegypt.com<br />
Names and contact information showing above are of sell-side analysts who issue investment analysis reports on <strong>Palm</strong> <strong>Hills</strong> S.A.E. The management of PHD neither, seeks to solicit<br />
investment action based on any of the research reports issued by the said analysts, nor endorses its forecasts and recommendations. Analyst estimates, forecasts, and<br />
recommendations showing in research reports on PHD strictly represent their own view; independent of Company’s management. PHD’s management’s liability is limited to factual<br />
information stated in these reports.<br />
Investors’ <strong>Presentation</strong> | November <strong>2010</strong><br />
42