Talaat Mostafa Group Holding Company

Transcription

Talaat Mostafa Group Holding Company
Company Presentation
July 2008
Safe Harbor Statement
Company
Logo
Certain information disclosed in this presentation consists of forward looking statements
reflecting the current view of the company with respect to future events, and are subject to
certain risks, uncertainties and assumptions. Many factors could cause the actual results,
performance or achievements of the company to be materially different from any future
results, performance or achievements that may be expressed or implied by such forward
looking statements, including worldwide account of trends, economic and political climate of
Egypt, the Middle East, and changes in business strategy and various other factors. Should one
or more of these risks or uncertainties materialize or should underlying assumptions prove
incorrect, actual results may vary materially from those described in such forward looking
statements.
2
Company overview
Company snapshot
Our vision is the concept
of community
development
Our business philosophy
is to work towards
resolving the housing and
quality of life problems
facing the Egyptian
community, particularly
in Cairo

Company
Logo
TMG is the leading community real estate developer in Egypt with over 20
years of experience
City and Community complexes (C&C)

The company develops self contained urban communities targeting the middle
to upper classes

As well as planning, marketing and selling the residential properties, TMG
develops and maintains the infrastructure, leisure and business facilities

TMG has developed three C&Cs and is developing a further seven. The largest
of which is Madinaty representing an area of 33.6 million m2
Hotels and Resorts (H&R)

The company has developed three large scale luxury hotels operated by the
Four Seasons, and has four other H&R projects under development

Benefits from synergies in associated residential development and sales

H&Rs usually include the development of high-end residencies and office parks
4
Company snapshot Cont’d
Company
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TMG’s
presales backlog has reached EGP 26.9 bn and EGP 29.4 bn as of
end of June and end of July 2008 respectively. Presold units are to be
delivered over 2008, 2009, 2010, and 2011.
2008
budgeted sales figure was set at EGP 12.5 bn, and YTD presales (up
to July 08) has reached EGP 12.3 bn
Actual
presales of 1H08 (EGP9.8 bn) is up118% compared to the EGP 4.5
bn presales recorded in 1H07
1H08
actual presales exceeded the budgeted figure of EGP 6.7 bn by
around 45%
Revenues,
gross profit, and net income after minority interest for 1H08
recorded EGP 3.2 bn, EGP 1.2 bn, and 875 mn respectively
As
TMG applies a self finance model and gets sizeable down payments to
finance the development activity, it normally enjoys a surplus cash
balance that generates returns, which covered around 75% of its SG&A
and interest expenses in 1H08
Adopting
successful pricing/cost control strategies, reliable project
management techniques and introducing the proper product mix to the
market place
5
Company snapshot Cont’d
Company
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Cost
controls: sizeable advance payments, turn key contracts, and
pricing with a cushion
Despite
inflationary pressures, TMG has preserved a hefty net profit
margin of 28 %
Was
able to sell 8,900 units that worth around EGP 5.5 bn of its newly
designed model in one month
Net
cash position of EGP 1.6 bn
Total
assets and book value of EGP 47 bn and EGP 21.5 bn respectively
Market
capitalisation of EGP 16.5 bn
6
Board of Directors and shareholder structure
Company
Logo
Audit, remuneration and
selection committees
have been appointed
Board of Directors
Shareholder structure
Hisham Talaat Mostafa (Executive Chairman)
Post-IPO
The audit committee will
have responsibility to
review and approve
related party
transactions
Tarek Talaat Mostafa
Directors are bound by
non-compete rules in
Egypt. In addition to
which Hisham Talaat
Mustafa has signed a
“right of first refusal”
undertaking
Yehia Mohamed Awad
Reuters code
Hany Talaat Mostafa
Ali Abdallah Ali
TMG RE & Tourism
Investment *
49.85%
Other major shareholders
25.75%
Omar Mohamed Awad
Shareholder structure by country
Misr Insurance representative
Mahmoud Mohamed Mahmoud
Norwa y 2.02%
Mohamed Hashem Al Sharif
Share data
Market cap **
# of shares
Other shareholders
including free float
24.40%
L.E 16.5 bn
2,030,203,550
TMGH.CA
Par value/share
LE 10
Fair value by: EFG LE 16.2***
CIBC LE 17.41
Prime LE 15.8
HSBC LE 16.43
Others 3.08%
KSA 4.13%
USA 5.08%
Hany Sarie El Din
Hossam Abdallah Helal
Shareholder directors
Kuwait 1.45%
UAE 1.44%
UK 16.20%
Independent
Egypt 66.60%
Lock-up Arrangement
*TMG RE & Tourism has a lock-up period of 2 years from the 1st
day of trading ( 28 Nov 2007)
*Other shareholders owning more than 1% had a lock-up period
of six months that ended on2 7 May 2008
*Including Talaat Mostafa Family, and Saudi group
**Based on the closing price as of 30 July 08
***Maintained their ST/LT buy recommendation post 1HO8 7
results..
Corporate structure
Company
Logo
Talaat Mostafa
Group Holding
Company
Direct & Indirect holding
99.2%
Alexandria Co. for
Urban Dev SAE
Indirect holding
of 81.31%
100%
98.6%
Alexandria Real
Estate SAE
Arab Co. for Urban
Dev & Projects SAE
San Stefano Real
Estate SAE
59.58%
5.81%
99.9%
8.53%
Arab Co. for Hotels &
Tourism Inv. (“ICON”)
100%
Al Rabwa I &
II
May Fair
56%
Four Seasons
Nile Plaza
61%
Four Seasons
Sharm El Sheikh
100%
Nile
Hotel
100%
100%
100%
San Stefano
Complex(2)
84.67%
San
Stefano
Grand Plaza(1)
Al Rehab I
100%
Al Rehab II
100%
Madinaty
50%
Saudi JV
100%
Marsa Alam
1) ICON holds only the assets of the hotel, which do not include the residential units or the commercial property. These components of the complex are held by San Stefano Real Estate
8
Investment highlights
Investment case summary
Company
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Exposure to ME and
Egyptian growth and
key middle class
demographic
Exposure to the
growing tourism
industry
Brand name,
reputation and
experience
Low risk, largely self
financing business
model
Scale and
positioning of
landbank
Financing
techniques
increasing
affordability for the
target market
10
Operating environment
Growing middle and
upper classes, a strong
economy and increasing
access to mortgage style
financing coupled with
significant demand
resulting in growing and
sustainable demand for
quality housing
Company
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Growing and sustainable demand for TMG’s residential housing
Significant
demand
Increasing affordability
Developing mortgage market coupled with TMG arrangement for
mortgage financing
Growing middle to upper class
forming TMG’s target market
Growing Egyptian
population (c.73
million1) focused on
Cairo (c.16 million1)
1. 2006 Census
2. Economist Intelligence Unit, July 2007
Strong Egyptian
economy with
positive outlook
Increasing personal
wealth (Average
income per capita
rose 16% in
2005/2006 –
2006/20072)
11
Experience, reputation and brand name
The strength of the TMG
brand can be seen in the
ability to successfully
pre-sell each phase of a
development and partner
with similarly respected
brand names
Almost
TMG’s
Company
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20 years of experience
reputation is associated with quality and timely delivery

Excellent pre-sales record supported by 120 strong sales force located in 11
offices across the Middle East

Strong reputation among business partners, contractors and suppliers
The
TMG brand and the individual brands of its C&C complexes are
associated with an inspirational lifestyle
1987
88
89
90
91
92
93
94
95
96
97
98
99
2000
01
02
03
04
05
06
07
08
Al Rawda Al Khadra
Virgenia Beach
May Fair
Al Rabwa I
Four Seasons Sharm El Sheikh
Four Seasons Nile Plaza
1997-2011: Al Rehab I
2006-2012: Al Rabwa II
2006-2020: Al Rehab II
San Stefano Complex
2006-2020: Madinaty
2009: Opening of Nile Hotel
12
Large scale landbank and top end hotels in key locations
TMG has development rights of approximately 50 million m2 in Egypt and KSA
Business footprint across Egypt
Company
Logo
Developments surrounding Cairo
Madinaty,
San Stefano
Al Rehab,
May Fair
Virgenia
Al Rawda
Al Khadra
Al
Rabwa
Nile Hotel,
Four Seasons
Nile Plaza
Four Seasons
Sharm El Sheikh
Marsa Alam
Luxor
TMG C&Cs
TMG H&Rs
13
Macro Economic Outlook
Egypt witnessed GDP
growth of 7.0% in 2007
versus 6.8% in 2006 of
which construction,
building and real estate
sectors constitute about
8% of total GDP
US$32.2 bn net
international reserves by
the end of Jan. 08
Egypt’s FDI has shot up
by a CAGR of 105%
through out 2004 to 2007
reaching US$11.5 bn
Company
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In the year 2007, Egypt witnessed a real GDP growth of 7.0% vs. 6.8% in 2006

Forecasts predicted a GDP growth rate of 7.3% to 7.5% for the year of 2008

In 2007, the construction sector witnessed a 15.8% growth compared to 14% in
2006

In 07/08, RE sector accounted for 2.8% of GDP. Construction was a main
contributor in fuelling 1Q07/08 GDP growth of 6.9% with the sector growing by
16.2%

At the end of January 2008, net international reserves reached US$32.2 bn

Foreign Direct Investment (FDI) witnessed a significant growth by a CAGR of
105% from US$700 mn in 2003 to US$11.5 bn in 2007
Foreign Direct Investment (US$ bn)
Construction/RE Sector Influence on GDP
FY Ending June
GDP Growth rate
Construction &
building % of GDP
Real Estate % of GDP
Hotels &
Restaurants % of GDP
2004
4.2%
2005
4.6%
2006
6.8%
2007
7.0%
4.3%
4.3%
4.6%
4.2%
3.8%
3.8%
3.7%
3.7%
14
11.5
12
10
8
6.1
6
3.9
4
2.1
2
0.7
0
2.9%
3.4%
3.3%
3.3%
2003
2004
2005
2006
2007
14
Real Estate market drivers in Egypt
Increasing wealth in
Egypt coupled with
growing middle to upper
classes has created a
growing demand for good
quality, affordable
housing
Company
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Growing population
78mn
population with 60% under the age of 30, and 600,000 new
marriages per annum
Cairo:
16 mn population
One
of the highest metropolitan densities in the world at 31,750
inhabitants per square km in Cairo, reaching 100,000 inhabitants in
certain areas
Urban
and general population growing by 3.1% and 1.9%, respectively
Increase
in GDP per capita from US$1,200 in 2002 to US$1,630 in 2007
GDP per capita (US$/p.a.)
Population growth %
3%
1,800
2.6%
3%
2%
2.2%
2.0%
1.8%
1,630
1,600
1.9%
1,400
1,200
1,420
1,000
1,000
2%
1,260
1,200
1,080
800
1%
600
400
1%
200
0%
2003
2004
2005
2006
2007
2002
2003
2004
2005
2006
2007
15
Demand for residential
units in Egypt is driven
by local as well as
international demand
factors
Company
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Growing demand for residential units
Local
driven demand:

International driven demand:
¾
Improving economic condition
¾
Regional liquidity surplus
Total demand of 450k
units per year.
Approximate demand of
225k units per year in
urban areas
¾
Increasing disposable income
¾
Foreign ownership laws
¾
Urban area population growing by 3.1%
p.a.
Supply/demand gap in
urban areas of 5k, 50k
and 70k in the High-end,
Middle and Low-end
residential units,
respectively
Annual Supply and Demand for Residential Units in urban
Urban areas
Areas Broken
Broken Down
Down by
by Type
Type
250,000
225,000
200,000
150,000
115,000
90,000
100,000
50,000
40,000
100,000
45,000
20,000 15,000
High-end
Middle
Demand
Low-end
Total
Supply
16
The financing scheme
broadens the pool of
potential customers and
has proved very
successful in the recent
Madinaty pre-sales
New developments in the
mortgage market
expected to further
increase the pool of
demand for TMG’s C&C
complexes
Company
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Increase affordability
Increasing
wealth in Egypt coupled with growing middle to upper
classes has created a growing demand for good quality,
affordable housing
Developments that support mortgage finance
At
least six entities currently offer mortgage financing in Egypt:
Al Tameer Company, Egyptian Housing Finance Company,
Tamweel, Amlak, Commercial International Bank and the Arab
Investment Bank. We expect the number of dedicated mortgage
finance companies to increase gradually
17
Real Estate market in Egypt – Government initiatives
Supportive developments
in the Egyptian
mortgages market driven
by the government

Company
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Structural Reforms recently undertaken by the Egyptian Government are
expected to further boost the real estate industry in Egypt
The Ministry of Investment in conjunction with the Mortgage Finance Authority
have been taking steps to develop a real estate mortgage market
In June 2007, Mortgage sector represented a low penetration to GDP of 0.2%.
However, mortgage loans are expected to reach LE 5 bn in 2008
Total value of available mortgages in Egypt amounted to LE 1.4 bn at end of June
2007, up significantly from a very low base of LE 202 mn at the end of September
2005
74% of the current mortgage loan portfolio is supplied by banks while the
remaining 26% is supplied by mortgage finance companies
Quarterly Evolution of the stock of mortgages in Egypt (LE mn)
1600
80%
1509
75%
70%
1400
70%
60%
1200
1014
50%
1000
45%
800
753
728
39%
600
400
200
30%
28%
331
300
121 87
125
177
214
240
11%
272
314
355
40%
390
20%
10%
7%
0%
0
Dec. 2005
Mar. 2006
Jun. 2006
Banks
Sep.2006
Dec. 2006
Mortgage finance companies
Mar. 2007
Jun. 2007
Sep.2007
Growth
18
Low risk largely self-financing business model
TMG’s payment for land
is spread over the
construction period and
paid on completion of
each phase
Phased pre-sales fund
the land payments and
development costs,
minimising the need for
external funding
Company
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Secure
large scale areas of land for residential development through
bilateral agreements with the Egyptian government

Initial payments grace period

Followed by instalment payments on completion of construction, average
period of 4 years to complete a unit

Instalments funded through phased pre-sales
Policy
to sell the units through off plan sales, before construction is
started
Upfront
cash flow requirements usually limited to sales and
marketing, development of the master plan and early infrastructure
construction
H&R
business has slightly greater start up costs taking into account
the commencement of construction of the hotel itself and upfront
land payments. The residential units however are in the most part
sold prior to construction as per the C&C business model
19
Maximized return through continued use of flexible “phasing” business
model
Company
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TMG pre sales reveals
the company’s marked
ability of adopting
aggressive, innovative,
and customer oriented
techniques in designing,
marketing, and selling its
products.
Madinaty special offer
announced by TMG has
received an amazing
market response
achieving the sales of
8,275 units with a total
sales value of EGP 5
Billion within only 10
days.
The
concept of phased sales and construction enables TMG to adapt
construction of each phase to meet changes in demand for different
types, styles and sizes of units that may arise due to changes in
income levels, average household size, lifestyle and consumer
preferences.
It
also helps to ensure that development of large projects is
manageable.
20
Mitigating inflation in construction cost
In order to mitigate
inflation in construction
cost :
TMG signs turn key-job
contracts before sales,
uses cost plus formula,
and maintain 25% NPM
Company
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TMG’s strategy in facing increase in construction cost is as follows:
TMG
signs turn key-job contract with high quality contractors before
sales, which minimizes the effect of inflation
TMG
pays relatively large advance payments to contractors to
encourage them to buy raw materials in advance sufficient for long
period
Cost
plus formula: an inflation rate of around 22% is accounted for and
built in sales price
Cost
review on a monthly/weekly basis and revise sales prices
accordingly
Accounting
for sales and cost of sales are based on phases, accordingly
average of sales/sqm and cost of sales/sqm are calculated and used as
a measure of recognised profitability

Based on the above, 25% net profit margin is maintained. (our last
review, by accounting for cost incurred to-date and cost–to-complete,
for phase 1&2 of Madinaty showed that expected net profit margin is
around 27.8%). TMG has recorded a net profit margin after minority of
28% for the first half ending June 30, 2008.
21
Innovative financing techniques
New developments in the
mortgage market
expected to further
increase the pool of
demand for TMG’s C&C
complexes
Company
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Arrangements
with local and regional banks in Egypt allowing provision
of up to 17 years financing to TMG’s customers. Customers utilising
bank facilities are subject to credit checks by the bank.

Cost of financing typically passed on to the customer

Post delivery, it becomes a bank-customer relationship with no recourse of any
kind on the company
86.9%
of Madinaty pre-sales have been sold through the financing
scheme
Recent
amendments to mortgage laws expected to provide further
opportunities
Al Rehab Cumulative Mix of Payments
Madinaty Cumulative Mix of Payments
cash - 13.1%
6 yrs - 4.2%
8 yrs - 17.7%
10 yrs - 27%
12 yrs - 0.6%
15 yrs - 16.9%
17 yrs - 20.6%
End of July 08
22
Financing scheme
The financing scheme
broadens the pool of
potential customers and
has proved very
successful in the recent
Madinaty pre-sales
Average monthly
instalment of US$207 for
100 sqm apartment in
Madinaty
Company
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Current financing scheme of finished villas and apartments in Madinaty
10 years installments
Madinaty
Villas
Land size (sqm)
BUA (sqm)
Monthly instalments US$
650
350
Apartments
BUA (sqm)
Monthly instalments US$
100
1676
207
23
International expansion : C&C
Building on our critical
mass in Egypt,
opportunity to replicate
the business model
across the Middle East,
leveraging on the
international client base
which currently exists in
TMG’s Egyptian
developments
Company
Logo
To
maintain our current growth profile through the application of the
business model to projects outside of Egypt
Investment strategy
Large and /or growing population
Booming infrastructure
Relatively under developed RE markets ( especially middle + high middle class )
Absence of community concept
In line with the strategy
outlined we have entered
into a JV in Saudi with Al
Oula development
company, amongst others
Joint ventures with well regarded local partners
Robust legal environment which recognises land rights, etc.
Stable political environment
Government policy aligned with increasing housing
Research—led approach
24
International expansion : H & R
Risk management
Company
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Risk management:
Reduce risk & maximize
return on investments
Diversification in lines of business by increasing investments in the H&Rs that have a low risk
profile compared to the real estate business
Geographic diversification (emerging markets)
Increase weighting of stable revenues from hotel and resorts complexes

Investment and financing strategies
Leverage ICON & use cash generated from existing hotels to repay debt
Create New International acquisition Subsidiary
Majority financed debt acquisitions. Debt to equity ratio up to 70%:30%
Re-investment of cash from acquisitions after debt payments
Total IRR till 2017 of 18%.
Acquire an additional 5,000 rooms at an average EV of US$350K per room
H&R to contribute 40% of total consolidated earnings, amounting to a yearly average of LE 2.5
bn by 2015
25
H & R expansion & investment strategy
Acquisition
Company
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Monetizing
Asset Management
Asset Selection Criteria
- Main focus on Emerging
Markets
- Under Performing Assets
- Re-branding
- Seek Separate listing
- Operational Restructuring
- IPO Of minority stake
- Financial Re-Engineering
- Maintained management
control
with Depressed EV/ Room,
in the range of $350k
Value
Value
valuation
- Upside Potential in terms
of location & facilities
- Enjoy asset appreciated
Creation
Realization
26
Hotel Expansion / Financing Plan
Company
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ICON
Equity $363.6
Debt $363.6
Total $727.2
Capital Increase
$36
3. 6
mn
Deb
t to
Equ
1
ity
:
1
$500mn
Current paid-in Capital $223.6mn
$1
n
40 m
Debt
New Co
$1.16bn
Debt
Debt to Equity
70% : 30%
$1.16
Total $1.66
$1.66 bn
Debt
Equity $500
Acquisition of 5,000 Hotel Rooms
Total expected net profit (after interest) $ 1.065 bn in 10 yrs
Net profit to Additional Capital injected
1.065 bn
:
140 mn
or
7.6- 1
27
TMG projects overview
C&C development locations
Company
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Greater Cairo map indicating development locations
29
C&C projects in development
Company
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Madinaty
Al Rehab I
Al Rehab II
Al Rabwa I
Al Rabwa II
Total Land area(1)
(m2)
33,600,000
6,140,400
3,760,000
1,318,800
819,028
3,000,000
To be dev. land
area(2) (m2)
33,600,000
924,225
3,760,000
0
819,028
3,000,000
To be dev. built
up area(3) (m2)
16,068,886
24,225
2,571,395
0
118,320
1,638,100
% owned(6)
99.9%
99.9%
99.9%
98.6%
98.6%
50%
Location
New Cairo
New Cairo
New Cairo
El Sheikh Zayed
El Sheikh Zayed
Riyadh
Exp. population
600,000
120,000
80,000
3,240
1,725
16,800
July 2006
November 1996
July 2006
December 1994
January 2006
September 2009
2026
2011
2020
2006
2012
2011
2020
2011
2017
2006
2012
2011
4 schools
7 mosques
1 church
1 office park
2 shopping malls
4 Mosques
2 schools
1 shopping mall
1 club house
1 shopping mall
Cinema
9 hole golf course
Sports pavilion
Commence(4)
Orig. Completion(5)
Revised compleion
Amenities
Various including:
45 hole golf course
15 schools
1 university
8 hotels commercial
parks (offices & retail)
1 hospital
1. Land area procured
2. Area of land still to be developed as per CBRE report
3. The built up area (“BUA”) still to be developed under phasing plan as per the CBRE report
4. Launch of sales
5. Delivery of final unit assumed in the CBRE report
6. Effective ownership
9 hole golf course
Saudi JV
(7)
Medical centre
Shopping mall
Mosques
Sports club
Government services
7. Riyadh – authorization obtained
30
Madinaty: “An international city in Egypt”
Artist’s impression
Company
Logo
Masterplan
TMG’s largest project to date on 33.6 million m2 with a residential capacity of 600,000 inhabitants
As pioneered at Al Rehab, Madinaty will form a self-reliant city with all infrastructure and amenities on site
31
Key Operating Highlights for 1H08 - Madinaty
Significant growth of
210% in sales and 347% in
terms units sold in 1H08
vs. 1H07
Company
Logo
LE mn - Villas
Units sold - Villas
1,400
450
431
400
1,300
350
20%
1,264
344
300
3%
1,304
1,200
250
Increase in value due to
increase in villas’ unit
size and price
200
1,100
150
100
1,000
50
1H07
1H08
1H07
1H08
LE mn - Apartments
Units sold - Apartments
7,000
12,000
6,224
10,602
6,000
10,000
5,000
8,000
435%
426%
4,000
6,000
3,000
2,000
4,000
1,163
2,017
1,000
2,000
1H07
1H07
1H08
1H08
Total sales in 1H08 amounted to LE 7.5 bn (10,946 units) in comparison to LE 2.4 bn (2448
units) in 1H07 showing a growth of 210% and 347% in sales and sold units, respectively.
Moreover, average blended selling prices (BSP) of villas and average selling prices of
apartments increased by 28% and 46% from LE 7763 psm and LE 3,497 psm in 1H07 to reach LE
9,905 psm and LE 5118 psm in 1H08, respectively.
32
Madinaty: development description
July 2006
Revised completion date
2020
Blended selling prices (EGP psm BUA)
12,000
Villas
Apatments
10,031
10,000
8,000
6,000
4,378
4,385
4,000
2,400
2,000
Jun-08
Apr-08
May-08
Mar-08
Jan-08
Feb-08
Dec-07
Oct-07
Nov-07
Sep-07
Jul-07
0
Aug-07
Since the launch of sales, the finished apartment
blended price psm BUA has risen 83% to EGP
4,385. The same for villas has increased 129% to
EGP 10,031
Commence date
Jun-07

30 June 2008: residential sold 2,522 villas (0.95
million m2 BUA) and 19,104 apartments (2.6
million m2 BUA)
600,000
Apr-07

In-kind payment to pay for the land consisting of
7% of the maximum amount of residential BUA
possible on the site
Expected population
May-07

1.3 million m2 is currently set aside for mega
projects such as a hospital, university, etc
16,068,886
Mar-07

BUA to be dev. (m2)
Jan-07
Intended residential BUA of 15.75 million m2,
split between 6,844 villas and 70,550
apartments. In addition to business district, a
university, 15 schools and 3 shopping malls
33,600,000
Feb-07

Land area to be dev. (m2)
Dec-06
Construction is to take place over 8 overlapping
phases, each 3-4 years long
33,600,000
Oct-06

Total land size (m2)
Nov-06
Mix-use community designed by three prominent
American companies
Sep-06

Key statistics
Jul-06
Project description
Aug-06
Based on the current rate
of sales and the
assumption that the
economy in Egypt
remains strong, it is
TMG’s expectation that
the project could finish 3
years earlier than the
originally planned
completion date of 2026
Company
Logo
33
0
4000
3500
3000
2235
Jun-08
May-08
Apr-08
Mar-08
Feb-08
Jan-08
Dec-07
Nov-07
Oct-07
Sep-07
Aug-07
Jul-07
Jun-07
May-07
Apr-07
Mar-07
Feb-07
Jan-07
Super finished
Jun-08
May-08
Apr-08
Mar-08
Feb-08
Jan-08
Dec-07
Nov-07
Oct-07
Sep-07
Aug-07
Jul-07
Jun-07
May-07
Finished
Apr-07
1000
Finished
Mar-07
Unfinished
Feb-07
4500
Jan-07
1600
Dec-06
Unfinished
Dec-06
1000
Nov-06
2400
Nov-06
2000
Oct-06
2600
Sep-06
3000
Oct-06
2000
Aug-06
5000
Sep-06
2500
Aug-06
Jul-06
0
Jul-06
Madinaty: development description
Company
Logo
Apartments selling prices (EGP psm)
6000
4765
4455
3755
Villas selling prices (EGP psm)
5000
Land
4330
4000
3355
3195
1500
1435
500
1313
34
Company
Logo
Total units sold
Units sold (Villas)
12,000
1,400
10,946
CAGR 28%
10,000
Units sold (Apt.)
1,300
1,166
1,200
12,000
CAGR 35%
CAGR 6%
10,602
10,000
1,024
1,000
8,000
8,000
7,300
6,295
800
6,000
6,000
6,000
4,000
2,000
4,000
344
400
-
2007
1H08
2008e
2006
2007
1H08
2006
2008e
2007
1H08
6,224
6,500
10,000
9,000
5,000
CAGR 41%
8,000
7,528
CAGR 61%
5,500
7,544
6,730
7,000
2008e
Apt. sales LE mn
Villas sales LE mn
Sales LE mn
CAGR 28%
3,881
4,000
4,500
3,328
6,000
3,663
3,402
3,500
3,000
5,000
4,000
3,268
2,000
200
2006
5,271
600
4,434
2,379
3,800
2,500
2,000
3,000
1,500
1,304
2,000
1,000
500
1,000
-
2006
2007
1H08
2008e
1,422
(500)
2006
2007
1H08
2006
2007
1H08
2008e
2008e
35
Al Rehab I & II: “A new vision for life in Egypt”
Artist’s impression and site pictures
Company
Logo
Masterplan
Al Rehab project covers a land area of 10 million m2 and is split into Rehab I and the extension project, Rehab II (phases 7-10)
Al Rehab I and II are each a mixture of educational, health, commercial, recreation, mosque and maintenance facilities with an
expected population of 180,000
36
Key Operating Highlights for 1H08 – Al Rehab
Significant growth of 41%
in sales and -3% in terms
units sold in 1H08 vs.
1H07
Company
Logo
LE mn - Villas
Units sold - Villas
800
200
180
180
625
140
120
700
600
160
500
76%
165%
400
102
100
300
80
60
200
40
100
20
236
1H07
1H07
LE mn - Apartments
Units sold - Apartments
2,100
1H08
1H08
2,027
1,924
2,000
1,800
1,800
1,600
5%
1,500
1,369
1,400
1,200
1,200
1,062
29%
1,000
900
800
600
600
400
300
200
-
1H07
1H08
1H07
1H08
During 1H08, the company sold 2,109 units compared with 2,179 units in 1H07. Total sales in
1H08 amounted to LE 2.02 bn in comparison to LE 1.43 bn in 1H07 showing a growth of 41%.
Said growth resulted from a remarkable increase in sold villas coupled with an increase in
average blended selling prices of villas and average selling prices of apartments by 55% and
50% to LE 10,272 psm and LE 4,670 psm, respectively.
37
Al Rehab I & II: development description

Only the shopping centre and phase 6 villas (608
villas) are yet to be completed. Out of which 71
villas have been sold
Rental revenue from two shopping malls (6,274 sqm)
the British school (LE 2.6 mn/year) as well as club
fees (membership fees of LE 30k/unit) and F&B
9,900,400
Land size to be dev.
BUA to be dev. (m
(m2)
4,684,225
2)
2,595,620
Expected population
200,000
Nov 1996 / Jul 20061
Commence date
[2011] / [2011]1
Blended prices (EGP psm BUA)
12000
6000
4,615
4000

Since July 2006 blended prices psm BUA have risen
132% to EGP 4,615 psm BUA for apartments and 114%
to EGP 10,695 psm BUA for villas respectively
1,236
2000
Mar-08
Dec-07
Jun-07
Sep-07
Mar-07
Dec-06
Jun-06
Sep-06
Mar-06
Dec-05
Jun-05
Sep-05
Mar-05
Dec-04
Jun-04
0
Sep-04
Prime location with a
total value of LE 6.3 bn
In-kind payment to pay for the land consisting of 12%
of the total area allocated to residential units, is
made to the government on completion of a phase of
construction
2,566
Mar-04

Apatments
8000
Dec-03
Consists of 1,291 villas (BUA 0.44 million m2), 11,949
apartments (BUA 1.8 million m2)
Jun-03

10,695
Villas
10000
Sep-03
Al Rehab II:
Jun-08
Al Rehab I:
Key statistics
Mar-03
Al Rehab II is expected to
be completed in [2011],
[9] years earlier than the
original 2020 completion
date. This reflects the
current rate of sales and
is based on the
assumption that that the
economy in Egypt
remains strong
Project description
Dec-02
Al Rehab I is fully sold
except for the sale of
phase 6 villas and the
construction of a city
walk
Company
Logo
Al
5.0 Rehab land prices (EGP 000’s psm)
4.49
4.5
4.0
3.50
3.5
3.0
3.70
3.89
2.58
2.5
2.0
1.5
1.0
0.5
0.0
2006
2007
Jan-08
Mid Jan-08
Jun-08
38
1. Rehab I / Rehab II
0
M
ay-08
Nov-07
M
ay-07
Nov-06
M
ay-06
Nov-05
M
ay-05
Nov-04
M
ay-04
Nov-03
M
ay-03
Nov-02
M
ay-02
Nov-01
M
ay-01
Nov-00
M
ay-00
Nov-99
M
ay-99
Nov-98
M
ay-98
Nov-97
4500
Apr-08
Jan-08
Oct-07
Jul-07
Apr-07
Jan-07
Oct-06
Jul-06
Apr-06
Jan-06
Oct-05
Jul-05
Apr-05
Jan-05
2 Attached
Oct-04
Jul-04
Apr-04
4 Attached
Jan-04
Oct-03
Jul-03
Apr-03
Land
Jan-03
1500
Oct-02
4500
Jul-02
M
ay-97
1000
Apr-02
1000
Nov-96
0
Jan-02
Al Rehab I & II: development description
Company
Logo
Apartments selling prices (EGP psm)
5000
4000
4475
3500
3000
2500
2000
1500
500
730
Villas selling prices (EGP psm)
5000
Single
4550
4000
4550
3500
3000
2500
2000
1320
1400
500
39
Al Rehab I & II: Prime locations
Prime location with
estimated total sales
value of LE 6.3 bn based
on today’s prices
Project description
Company
Logo
Masterplan shows the prime locations
Al Rehab I & II:
Prime Locations with a hidden value
Total area of 418K sqm
To be sold for commercial use (Banks,
administrative centres, commercial stores
doctors clinics).
Expected selling prices as of today is LE 15,000
sqm.
Estimated total sales value of LE 6.3 bn
40
Company
Logo
Total units sold
Units sold (Villas)
Units sold (Apt.)
700
6,000
600
CAGR 27%
4,575
500
4,008
4,000
CAGR 61%
4,000
400
3,000
5,000
600
CAGR 29%
5,000
3,975
3732
3,000
2465
2,730
300
2,109
231
2,000
180
200
1,000
1,000
100
-
2006
2007
1H08
2006
2008e
Sales LE mn
1H08
2006
2008e
1,981
1,800
CAGR 64 %
2,574
2,500
2121
CAGR 137%
1,200
2,835
3,000
2,000
1,000
2,500
2,015
543
600
1,353
1,000
400
500
200
625
1,000
351
2006
2007
1H08
2008e
961
500
-
-
-
1369
1,500
800
2,000
2008e
3,500
1,400
3,500
1H08
3,000
1,600
CAGR 83%
2007
Apt. sales LE mn
2,000
4,555
4,500
1,500
2007
Villas sales LE mn
5,000
4,000
1,924
2,000
217
2006
2007
1H08
2008e
2006
2007
1H08
2008e
41
Al Rabwa I & II: “Life as it should be”
Artist’s impression
Company
Logo
Masterplan
Al Rabwa covers an area of 2 million m2 and will accommodate a population of almost 5,000
42
Al Rabwa I & II: development description
Project description
Key statistics
Al Rabwa I
Construction is completed and consists of
Land size to be dev. (m2)
649 villas, a shopping centre, 9 hole golf
course and sports pavilion.
The development is fully sold and covers a
land area of 1,318,800 m
2
Al Rabwa II
2,137,828
819,028 (Rabwa II)
BUA to be dev. (m2)
118,320
Expected population
4,965
Commence date
January 2006 (Rabwa II)
2012
Villas blended price (EGP psm BUA)
2
159 villas (47,369 m BUA) have been sold
since sales commenced until 30 June 2008.
Current blended selling price is EGP 13,135
psm BUA
Construction commenced in January 2007,
with costs estimated at EGP 159.8 million
13,135
14,000
Villas
12,000
10,000
8,000
5,876
6,000
4,000
2,000
0
Villas price (EGP psm)
4500
4000
Land payments total EGP 154.0 million and
are phased over 6 years starting in 2005,
with EGP 107 million outstanding
Se
p
-0
7
N
ov
-0
7
Ja
n
-0
8
M
ar
-0
8
M
ay
-0
8
Ju
l08
consisting of 340 villas and an interlinking
9 hole golf course
S
ep
-0
6
N
ov
-0
6
Ja
n
-0
7
M
ar
-0
7
M
ay
-0
7
Ju
l07
Al Rabwa II will follow a similar model
Ja
n
-0
6
M
ar
-0
6
M
ay
-0
6
Ju
l06
Rabwa II is expected to
be completed in – line
with the originally
planned time scale
Company
Logo
Land
3000
3000
3420
3540
2008
2008
2445
2500
2210
1790
2000
1460
1460
650 685
685
1390
1955
1790
2040
2640
2040
2000
1335
1000
500
4280
3395
3500
1500
4130
Villas
845
845
1999
2000
990
915
955
1055
2001
2002
2003
2004
0
1996
1997
1998
2005
2006
2007
43
Company
Logo
Sales LE mn (Villas)
Total units sold (Villas)
70
60
59
140
50
129
120
40
100
56%
30
25%
97
80
26
20
60
10
40
20
-
1H07
1H08
1H07
1H08
44
Saudi joint venture
Looking to capitalise on
the growing demand in
Saudi
JV with local partner Al
Oula for Real Estate
S.A.E, Al Fawzan Holding
and Smow Real Estate
Development
The developments are to
be modelled on El Rehab
with schools, mosques
and medical facilities
developed at the sites
Attractive tenure to
customers with low
financing cost whereby
the monthly instalments
will amount to less than
an average monthly
rental rate.
Company
Logo
Project description
A limited liability company, Areez Arabia
Limited, has been established and a joint
stock company, Thabat, is in the process of
being set up. TMG and their JV partner will
own equal shares of the company
TMG injected SAR 349 million as part of its
share and paid in capital
The JV partner has purchased 3.0 million m2
in Riyadh and is the process of finalizing a
land purchase of 3.8 million m2 area in
Jeddah
Riyadh
Key statistics – Riyadh
Location
Riyadh
2
Total land size (m )
3,000,000
BUA residential
1,391,280
Potential extension land (m2)
1,000,000
Sales launch date
Sep.1, 2008
Completion date
TBC
Land cost
SAR 105/sqm
Key statistics – Apartments
Land size
Apartments average size
Expected starting selling price
600k sqm
170 sqm
SAR 2,200
The development plan for Riyadh is approved
by the higher authority of Riyadh city
development and includes approx. 3,000
apartments and 2,044 villas (1,669 small, 375
big), totalling 1.4 million m2 residential BUA.
An agreement signed with Riyadh Bank ( one
of the biggest banks in Saudi Arabia) to
provide financing to the project's customers
for extended periods up to 25 years.
Key statistics – Villas
small
Big
Land size
600k
Villas average size (Land/BUA)
450/405
Expected starting selling price
Land
Small (SAR)
1,200 -1,500
300k sqm
800/540
BUA
2,600- 3,000
Big
2,600- 3,000
(SAR)
1,200- 1,500
45
H&R development locations
Company
Logo
Egypt map indicating H&R development locations
Four Season San
Stefano and San
Stefano Complex
Four Seasons
Sharm El Sheikh
Four Seasons Nile
Plaza
Nile Hotel
Marsa Alam
Sultana Malak
TMG H&R developments
46
H&R projects in operation and development
Four Seasons
Sharm El Sheikh
Four Seasons Nile
Plaza
San Stefano
Grand Plaza
Company
Logo
Nile Hotel
Marsa Alam
% owned(1)
61%
56.31%
84.67%
100%
100%
Location
Sharm El Sheikh
Cairo
Alexandria
Cairo
Marsa Alam
Rooms/keys
Units
Sold
Ave. price
200
146
144
EGP 26,435 psm
365
131
119
EGP 31,635 psm
127
945
827
EGP 14,202 psm
221
0
n/a
n/a
750
2,250 resi. rooms
n/a
n/a
Commence
Complete(2)
November 1998
May 2002
September 1997
August 2004
February 1999
July 2007
August 2003
Early 2009
TBC
TBC
Star rating
5 Star
5 Star
5 Star
Planned 5 Star
Planned 4/5 Star
8 restaurants
2 lounge bars
Spa
Ballroom
4 meeting rooms
Business centre
9 restaurants
Spa
Ballroom
11 meeting rooms
Business centre
Shopping mall
9 restaurants
Marina
Shopping mall
Offices
Casino
Ballroom
4 restaurants
4 meeting rooms
Business centre
Executive club
Mini business
centre
4 hotels
Central lagoon
Facilities
1. % owned by ICON, which is 81% indirectly owned by TMG
2. Commencement of operations
47
H&R projects: Latest Developments
Company
Logo
Concession Agreement for Sultana Malak Land in Luxor
The Arab Company for Hotels & Tourism Investment (ICON), a subsidiary of TMG Holding, has signed a concession
rights agreement for Sultana Malak land in Luxor for a period of 50 years, to be renewed.
TMG is planning to construct a luxury hotel on this land and a five-star Nile cruiser, both to be managed by the
internationally reputable Four Seasons hotel management chain.
Extension of Four Seasons Sharm El Sheikh
TMG is currently developing an 18 holes Golf Course with 60 luxurious villas surrounding it over an area of
approximately 700,000 sqm behind the Four Seasons Sharm El Sheikh resort.
TMG has also acquired a 187, 643 sqm of land adjacent to the resort to develop a second extension that is planned
to encompass the following:
96 hotel rooms, a royal suite, 32 villas, 56 chalets, an office building, a conference centre, a children park and a
staff residence.
48
Operating H&R projects
Company
Logo
49
Company
Logo
Four Seasons San Stefano and complex
Key statistics
Key statistics
Key statistics
Rooms/keys
200
Rooms
365
Rooms
127
Residential units sold
144
Units total
131
Residential units total
945
Units sold
119
Residential units sold
827
Average price EGP psm BUA
26,435
Operating statistics (30/06/08)
Occupancy
31,635
14,202
72.8%
Occupancy
71.7%
Average room rate (USD)
414
ARR (USD)
419
Average room rate (USD)
303
RevPAR (USD)
301
RevPAR (USD)
300
RevPAR (USD)
149
Description
Consists of the hotel, villas and chalets. A
golf course with surrounding villas are
planned in 2009
Description
Occupancy
49.2%
Description
Residential units include 72 Plaza Suites
Mall area of 43,000 m2 over 4 floors and
Office and commercial spaces are fully
accommodates 180 retail units, out of
which 130 have been sold
sold and the 5,000 m2 (approx) shopping
mall leased on a 10yr contract
Currently 10 of the residential units are
Offices comprise 10,000m2 and a private
marina
managed as part of an owner rental
scheme
50
H&R projects in development
Nile Hotel: artist's
impression
Company
Logo
Nile Hotel
Marsa Alam
Key statistics
Key statistics
Rooms
221
Residential properties
Operator
Status
0
TBC
Expected to open early 2009
Description
Marsa Alam: artist’s
impression
Refurbishment project to create a
business hotel in Cairo
To provide both a business centre and
business facilities including state of the
art conference and meeting centres, and
fewer entertainment-related facilities
such as food outlets
Rooms
Residential rooms
750
2,250
Operator
TBC
Status
TBD
Description
Developing tourism area following
international airport that opened in 2001
Current plan for four luxury hotels
surrounded by a lagoon on a 3.3 million
m2 site benefiting from 2.2km of seafront
To include a downtown / entertainment
area
TMG is in advanced discussions with an
international hotel operator
51
Company
Logo
RevPAR US$
Four Seasons San Stefano and complex*
RevPAR US$
RevPAR US$
350
350
CAGR 24%
300
200
179
180
250
250
CAGR 16%
300
301
250
140
231
200
163
100
300
150
274
255
204
100
100
50
50
0
0
134
120
200
150
CAGR 34%
149
160
80
60
40
20
2006
2007
1H08
2008e
0
2006
ARR US$
2007
1H08
2007*
2008e
1H08
2008e
ARR US$
ARR US$
315
450
450
CAGR 15%
CAGR 13%
350
300
350
300
300
295
200
362
346
150
368
386
285
281
280
293
283
275
100
100
308
303
290
419
200
414
CAGR 10%
305
250
250
150
310
400
400
270
50
50
265
0
0
2006
2007
1H08
2008e
2007*
2006
2007
1H08
1H08
2008e
2008e
* commencement of operation in July 15, 2007
52
Company
Logo
Combined RevPAR US$
Combined ARR US$
300
450
CAGR 15%
250
400
CAGR 13%
350
200
300
250
150
273
239
100
251
200
356
190
150
396
368
290
100
50
50
0
2006
2007
1H08
2008e
0
2006
2007
1H08
2008e
53
Company
Logo
Revenue LE mn
Revenue LE mn
Revenue LE mn
100
400
200
17%
165
180
160
140
120
100
80
170
21
1
21
1
124
102
49
48
16
0
10
1
30
39
99
95
68
350
300
339
34
4
269
250
23
3
200
78
100
100
20
165
60
2007
1H08
Rooms/villas
F&B
Tel.
30
13%
1%
10%
1%
12%
1%
32%
29%
29%
29%
80%
10
100%
90%
80%
60%
60%
50%
50%
40%
40%
60%
58%
20%
1H08
10%
F&B
Tel.
Tel.
17
1H08
Rooms/villas
F&B
2008e
Tel.
Others
Revenue mix (%)
100%
9%
1%
10%
1%
9%
1%
10%
1%
29%
29%
32%
31%
30%
2008e
Others
90%
6%
1%
7%
1%
39%
38%
54%
54%
10%
1%
80%
70%
40%
60%
50%
40%
61%
30%
59%
58%
58%
50%
20%
10%
0%
0%
1H08
F&B
42
9
12
Others
10%
0%
Rooms/villas
12
2007
2008e
20%
2007
2
22
1
2007
70%
57%
32
Others
13%
0%
2006
20
Revenue mix (%)
100%
33
285%
2008e
Revenue mix (%)
55%
70
40
206
112
Rooms/villas
30%
110
84
8
50
201
2006
2006
70%
80
-
-
90%
90
36
4
18
2
62
50
61
356
194
150
60
40
15%
2006
2007
Rooms/villas
1H08
F&B
Tel.
2008e
Others
2007
1H08
Rooms/villas
F&B
2008e
Tel.
Others
* commencement of operation in July 15, 2007
54
Company
Logo
GOP LE mn
GOP LE mn
GOP LE mn
50%
47%
56
63%
30%
40
20%
20
10%
65%
223
213
40%
55%
200
GOP LE mn
GOP LE mn
60
6
65%
63%
60%
250
87
85
80
58
75%
300
51%
GOP margin %
100
60%
55%
51%
45%
161
150
35%
126
25%
100
4
GOP margin %
120
4
2
15%
-
50
0%
2006
2007
1H08
5%
-
-5%
2008e
2006
2007
1H08
-
2008e
2008e
NP LE mn
NP LE mn
100
6
60%
300
50%
250
75%
65%
42%
33%
50%
40%
66
61
30%
60
43
41
40
20%
20
10%
NP margin %
NP LE mn
37%
80
NP LE mn
39%
200
53%
45%
169
50%
55%
177
45%
35%
150
120
102
25%
100
4
NP margin %
120
NP LE mn
3
2
15%
-
0%
2006
2007
1H08
2008e
50
5%
-5%
2006
2007
1H08
2008e
2008e
* soft opening July 15, 2007
55
Financial highlights
Key Operating Highlights for 1H08
Significant growth of
134% in sales and 176% in
terms units sold in 1H08
vs. 1H07
Company
Logo
Real estate sales – LE mn
Real estate sales – units sold
12,000
14,000
13,135
9,983
10,000
12,000
176%
10,000
8,000
134%
8,000
6,000
6,000
4,265
4,758
4,000
4,000
2,000
2,000
-
1H07
1H07
1H08
Real estate sales – LE mn
Real estate sales – units sold
4,500
4,200
3,900
3,600
3,300
3,000
2,700
2,400
2,100
1,800
1,500
1,200
900
600
300
-
1H08
8,000
7,528
7,000
6,000
2,448
5,000
2,179 2,109
4,000
3,000
2,428
2,000
2,015
1,429
1,000
59
26
55
28
8
10
9
16
129 97
148 126
Al Rabwa
San Stefano
36
44
95 173
Madinaty
Al Rehab
Al Rabwa
1H07
San Stefano
1H08
Sharm El
Sheikh
Nile Plaza
Madinaty
Al Rehab
1H07
Sharm El
Sheikh
Nile Plaza
1H08
During
1H08, total sales amounted to LE 9,983 mn in comparison to LE
4,265 mn in 1H07 showing a significant growth of 134% in sales
Total
units sold amounted to 13,135 units in 1H08 in comparison to
4,758 units in 1H07 showing a significant growth of 176%
57
1H08 Consolidated Financials
Balance Sheet (June 3o, 2008)
Income statement (Jan 1st, 2008 to Jun 31st , 2008)
EGP mn
Assets
Revenue
3,162
Non-current assets
16,550 Cost of revenue
Current assets
30,357 Gross profit
Total Assets
Issuance premium
Other reserves
Treasury shares
Retained earning
Total Equity
Minority interest
Current liabilities
Total Liabilities
EGP bn
TMG Holding
(110)
Provisions
(36)
Interest expenses
(99)
20,302 Interest income
62
158 Other income
42
26 Gain on sale of investments
(36) Net change in market value of investments
1,070 Foreign exchange difference
21,520 Interest on bonds and treasury bills
2,807 Investment Income
Liabilities
Non-current liabilities
1208
46,907 SG&A expenses
Equity
Paid-in capital
(1,954)
5
(9)
4
17
32
1,088
Profit before tax
19,517 Income tax expense
(54)
063 Minority interest
(186)
22,580 Net Profit of the year
Cash
Debt
3,677
2.1
876
Net (debt)/ cash
1,577
58
2007 Pro-Forma Financials
Balance Sheet
Income statement
EGP mn
Assets
Revenue
Non-current assets
32,055 Cost of revenue
Current assets
10,926 Gross profit
Total Assets
Equity
Paid-in capital
Issuance premium
Other reserves
Treasury shares
Retained earning
Total Equity
Minority interest
Liabilities
Non-current liabilities
Current liabilities
EGPLiabilities
bn
Total
42,981 SG&A expenses
Interest expenses
1,876
(1,025)
851
(267)
(14)
20,302 Interest income
78
159 Other income
41
26 Gain on sale of investments
3 Increase in company’s share of the net fair value
determined in the aaets and liabilities acquired by
purchasing cost
1,341 Foreign exchange difference
21,824 Other income
2,267 Investment Income
Profit before tax
15,066 Income tax expense
3,825 Minority interest
Cash Net Profit
Debtof the
Netyear
(debt)/ cash
18,891
573
502
(4)
12
12
1,783
(46)
(396)
1,341
59
Key operating highlights
Company
Logo
2008e
Real Estate growth rate (units sales)
15%
Real Estate growth rate (sales value)
20%
Net profit growth rate
25%
Net profit margin
25%
Real Estate sales - units sold
14,000
Real Estate sales – LE mn
13,135
14,000
12,129
CAGR 28%
10,520
12,000
8,000
12,500
CAGR 47%
12,000
10,368
10,000
9,982
10,000
7,410
8,000
6,000
6,000
5,801
4,000
4,000
2,000
2,000
2006
2007
1H08
2008e
2006
2007
1H08
2008e
60
Revenue recognition
Accounts are prepared in
accordance with Egyptian
Accounting Standards
(“EAS”), which is broadly
in line with IFRS
Company
Logo
TMG adopts an on delivery revenue recognition policy

Current sales are not therefore reflected in current revenue

Accordingly, a significant driver of future revenues is the delivery schedule of
the units sold so far

The chart shows TMG’s delivery schedule of pre-sold units through to 2008 to
2011, which amounts to EGP 29.9 bn of sales not yet delivered.
TMG units delivery (as at June 30, 2008)
9,000
7,920
8,000
6,000
9.888
6,600
7,000
5,500
5,000
4,000
3,000
2,000
1,000
2008*
2009
2010
2011
* Including units’ delivered in 1H08
Total Recognized Sales Value
61
Revenue recognition Cont’d
Company
Logo
TMG units delivery (as at June 30, 2008)
Revenue Recognition Schedule-Hotels (only for existing hotels):
Year
2008
2009
2010
2011
Cumulative
Revenue-EGP mn
657
692
739
791
2879
Net Income-EGP mn
311
338
363
399
1411
Revenue Recognition Schedule-Real Estate (30 June presales backlog):
Year
2008
2009
2010
2011
Cumulative
Revenue-EGP bn
5.5
6.6
7.9
9.9
29.9
Net Income-EGP bn
1.4
1.7
2.0
2.0
7.0
62
Income statement consolidation factors
Accounts are prepared in
accordance with Egyptian
Accounting Standards
(“EAS”), which is broadly
in line with IFRS
Company
Logo
Key financials
(EGP m)
1H07
1H08
Arab Co. Alex Re San Stefano Arab Co. Alex Re San Stefano
1,432
1,260
857
440
311
92
21
559
587
137
153
92
29.58%
22.83%
39.04%
46.59%
15.99%
34.77%
199
426
18
553
468
131
199
410
14
553
440
105
Revenues
Gross Profit
Gross Profit margin
PBT
Net profit
In order to consolidate the income statement of Alexandria Real Estate,
Arab Company and San Stefano certain factors need to be considered
Inter-company
movements, which will be eliminated in the consolidated
financials of the company:

Management fees flowing from Arab Company and San Stefano Real Estate to
Alexandria Real Estate at 6.0% and 7.5% of sales price respectively

Cross shareholdings – TMG’s percentage holding in the operating subsidiaries
includes cross holdings amongst the subsidiaries
63
Company
Logo
Upcoming Projects
‫ﺷﺮﻛﺔ ﺍﻹﺳﻜﻨﺪﺭﻳﺔ ﻭﺍﻟﺴﻌﻮﺩﻳﺔ ﻟﻠﻤﺸﺮﻭﻋﺎﺕ ﺍﻟﺴﻴﺎﺣﻴﺔ‬
Company
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Nassamat ALRehab, Riyadh, Saudi
project
Nassamat ALRehab, Master Plan
Company
Logo
Total Land Area : 3,000,000 m2
Total Built up Area:1,863,000 m2
Total no. of Villas: 2,044
Total no. of Apartments:3,000
Total Area of Services: 300,000 m2
Nassamat ALRehab, Residential
Company
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Nassamat ALRehab, Villas
Company
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Nassamat ALRehab, Riyadh, Saudi project
Company
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‫‪Company‬‬
‫‪Logo‬‬
‫‪Nile Hotel‬‬
Nile Hotel
Builtup
uparea:20,000
area:20,000sqm,
sqm,
Built
Numberofofrooms:
rooms:221
221
Number
Company
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‫‪Company‬‬
‫‪Logo‬‬
‫‪Marsa Alam, Egypt‬‬
Marsa Alam, Master Plan
Total Land Area : 3,158,200 m2
Total Built up Area: 315,820 m2
Total no. of Key: 5 Hotels * 150 key = 750 key
Total no. of chalets and villas : 1700 units
Company
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Marsa Alam, Egypt
Company
Logo
‫‪Company‬‬
‫‪Logo‬‬
‫‪Luxor, Egypt‬‬
Four Seasons Luxor , Master Plan
Total Land Area: 20,000 m
Total Built up Area: 34,000m2
Total no. of keys: 214 keys
Suites :
32
Rooms :
182
Company
Logo
Four Seasons Luxor , Sultana Malak Land
Company
Logo
‫‪Company‬‬
‫‪Logo‬‬
‫‪Sharm ELShiekh , Egypt‬‬
Four Seasons Sharm Extension , Golf Course
Total Land Area :962,168 m2
Total no. of keys:
96 keys
Total no. of villas :
21 villas
Total no. of chalets: 72 chalets
Total no. of golf villas : 60 villas
Company
Logo
Four Seasons Sharm Extension , Master Plan
Company
Logo
‫‪Company‬‬
‫‪Logo‬‬
‫‪Madinaty, Egypt‬‬
Four Seasons Madinaty Hotel
Total Land Area : 175,000 m2
Total no. of Keys : 243 key
100 Branded for seasons villas
Company
Logo
Four Seasons Madinaty Golf Villas
Company
Logo
Four Seasons Madinaty
Company
Logo
‫‪Company‬‬
‫‪Logo‬‬
‫‪TMG Offices / Hotel , Cairo , Egypt‬‬
TMG Offices / Hotel, Cairo
Total Land Area : 2,160 m2
Total Built up Area
for hotel: 16,547 m2
Total no. of Keys: 198 keys
Total Built up Area
for offices:29,914
Company
Logo
TMG Offices / Hotel, Cairo
Company
Logo
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