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9months 2010 Investors' Presentation - Palm Hills Developments

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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

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