The document was created from a file 'H:Arqaam Capital...

INVESTOR PRESENTATION 2016

INVESTOR PRESENTATION I FY 2016

This Presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation orsolicitation of an offer to subscribe for or purchase securities of any kind and neither this document not anything contained herein shall form the basisof any contract or commitment from any party whatsoever. Information, including but not limited to financial information, in this presentation shouldnot be considered as a recommendation in relation to holding, purchasing or selling shares, securities or any other instruments in or, in entities relatedto, Porto Group Holding or any other company.

This presentation contains important and privileged information on Porto Group Holding which is solely owned by Porto Group Holding and may not berelied on or used by any person whosoever for any purpose, and therefore shall be kept secret and confidential by any receiving party.

This presentation includes forward-looking statements. The words “believe”, “anticipate”, “expect”, “intend”, “aim”, “plan”, “predict”, “continue”,“assume”, “positioned”, “may”, “will”, “would”, “could” or “should” “shall”, “risk” and other similar expressions that are predictions of or indicatefuture events and future trends identify forward-looking statements. These forward-looking statements include all matters that are not historical facts.In particular, the statements regarding strategy and other future events or prospects are forward-looking statements. Recipients of this presentationshould not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors thatare in many cases beyond the control of the company. By their nature, forward-looking statements & projections involve risks and uncertaintiesbecause they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guaranteesof future performance and the company’s actual results of operations, financial condition, performance, liquidity, dividend policy or achievements ofthe company, or industry results in which the company operates may differ materially from those made in or suggested by the forward-lookingstatements contained in this presentation. The cautionary statements set forth above should be considered in connection with any subsequent writtenor oral forward looking statements that the company or persons acting on its behalf, may issue. Various factors could cause actual results to differmaterially from those expressed or implied by the forward-looking statements in this document including the worldwide economic trends, theeconomic and political climate of Egypt, the Middle East and changes in business strategy and various other factors.

These forward looking statements speak only as of the date of this presentation. The company expressly disclaims any obligation or undertaking(except as required by applicable law or regulatory obligation), to release publicly any updates or revisions to any forward-looking statement, whetheras a result of new information, future events or otherwise.

This disclaimer is to be considered an integral part of the presentation and Porto Group Holding’s liability in respect of this presentation and is to begoverned by Egyptian law under the jurisdiction of Egyptian courts.

2

Disclaimer


A. COMPANY OVERVIEW

B. PROJECTS OVERVIEW

C. CONSOLIDATED FINANCIAL PERFORMANCE

D. APPENDIX

3

Agenda


COMPANY OVERVIEW


35.0%

31.0%

12.0%

9.0%

7.0%4.0% 2.0%

SOL Global Holding Free FloatAmer Wakf Lantess International LimitedMohamed El-Amin Fineby Estates LtdEgyptian Wakf Limited

5

Share Performance1

-

0.1

0.2

0.3

0.4

0.5

-

50,000

100,000

150,000

200,000

250,000

300,000

Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17Volume ('000s) Share Price (EGP)

Company Overview

Porto Group is a real estate developer based in Egypt, established in October 2015 post the spin-offfrom Amer Group

The split took place in October 2015 to introduce Porto Group as a pure real estate developer withprojects locally and internationally where it has access to land through favorable revenue sharingarrangements with Amer Group or other land owners in Egypt as well as the acquisition of land plotsoutside of Egypt

Porto Group mainly focuses on real estate development projects in East and West Cairo as well assecond homes and commercial units

Porto Group will be the sole developer for Porto branded developments in the Middle East & globally

Shareholding Structure

Company OverviewPorto Group Overview

EGX 30’s 2nd most traded stock in terms of volume in 20162

Sector Real Estate

No. of Listed Shares 4,559.5 mn

Market Capitalization3 EGP 1.1 bn

Bloomberg Ticker PORT.EY

Reuters Ticker PORT.CA

1. Source: EGX & Thomson Reuters2. Source: EGX3. As at 28 February 2017

April 2016Cash Dividend - EGP 0.02

INVESTOR PRESENTATION I FY 2016 6

Key Milestones

Became theno.1 and

onlydeveloperto explorethe other

side of theshore

Became theno.1 and

onlydeveloperto develop

Red Seamountains

First primaryhomes

development

LaunchedPorto New

Cairo & PortoOctober

LaunchedPorto Lagoons

andPorto Sokhna

Islandand

Porto Matrouh

AppointedArqaam

Capital andMatouk

Bassiouny tolaunch a GDR

program

Company OverviewKey Milestones

Launch ofanotherregional

development

2005 2006 2007 2013 20152011 2014 20162010

Become thefirst

Egyptianplayer todevelop

outside ofEgypt

In 2005Porto

Marina waslaunched inthe North

Coast


Mansour AmerFounder, Chairman

& CEO

Gamal FathallahChief Investment

Officer

Abdallah LotfyCOO Project

Management

Sherif KhalilChief Commercial

Officer

Hisham A. El KhalikCOO Construction

Management

Roshdy MohamedCFO

Omar AmerVice Chairman &

CEO

Mohamed AlSayedVice Chairman &CEO Real Estate

Mohamed El-AminBoard Member

Alaa SamahaBoard Member

Nour El Din SelimBoard Member

Essam GorabBoard Member

Company OverviewBoard of Directors and Management Team


The fastest developer among listed peers, with a strong brand name, a management team with a proven track record and a well defined strategy inplace

8

1

Acceleratedeliveries and

projectscompletion

2

Geographicalexpansion both

locally andregionally across

various real estatesegments

3

Building upRecurring Revenue

Streams4

Achieving aconsiderable

market share inthe Healthcare

Segment

5

Commencingdevelopment inthe Education

Segment

Company OverviewStrategy


PROJECTS OVERVIEW


Porto Developments EducationHealthcare Hotels Sports Clubs

Golf Porto Sokhna -Island

Golf Porto Marina -Lagoons

Porto Cairo Porto October Porto Matrouh PH2 Porto New Cairo Porto Tartous Porto Dead Sea Porto Agadir Porto Pyramids Porto Heliopolis Porto Saeed 12 projects Total land area: 4.7

mn sqm

Porto Heliopolis Porto Cairo Porto Sokhna Golf Porto Marina Porto October 375 beds 120 clinics

Porto New Cairo Porto October Porto Pyramids Porto Dead Sea Porto Agadir 721 Keys

School Porto October Porto Sokhna Porto Saeed Alamain University

Porto October Porto Agadir Porto Dead Sea Owned

Egyptian Wakf Amer Charitable

Foundation

CSR

Projects OverviewBusiness Lines


Projects OverviewProjects Snapshot

Project Location Type Launch Date Start of Delivery Land Area(sqm mn)

Total BUA Area(sqm mn)

Porto Cairo Villas New Cairo Primary Home 2007 2010 0.09 0.04

Porto Cairo Mall New Cairo Commercial 2010 Q4 2015 0.04 0.04

Porto Cairo Clinics New Cairo Commercial 2012 Q4 2015 0.01 0.01

Porto Lagoons North Coast Second Home/Mixed-use 2015 2017 0.14 0.16

Porto Sokhna Island Suez Gulf Coast Second Home 2015 2017 0.15 0.07

Porto Matrouh Marsa Matrouh Second Home 2015 2017 0.13 0.08

Golf Bay -Golf Marina North Coast Second Home 2017 0.04

Porto New Cairo New Cairo Primary Home/Mixed-use 2013 2016 0.05 0.21

Porto October 6th of October Primary Home/Mixed-use 2013 Q4 2015 1.38 0.69

Porto Pyramids Giza Primary Home/Mixed-use 2016 2018 0.1 0.18

Porto Saeed Port Said /Damietta Primary Home/Mixed-use 2017 2018 0.43 0.33

Porto Heliopolis Cairo Primary Home/Mixed-use 2017 2018 0.03 0.24

Porto Tartous Tartous, Syria Second Home 2010 TBD 0.19

Porto Dead Sea Dead Sea, Jordon Second Home 2014 2017 0.81 0.78

Porto Agadir Agadir, Morocco Second Home TBD TBD 1.20 0.32

EGYP

TM

ENA


45.3%

6.7%

48.0%

Porto Group

Amer

3rd Parties

12

Porto Group’s Co-development Agreements & Land Ownership Land Bank (by Geography)

Land Bank (Developed vs. Undeveloped)

Co-developmentAgreement Land Ownership

Ongoing Projects

Porto Lagoons Porto New Cairo Porto Pyramids Porto Sokhna

Porto Cairo Porto Dead Sea

Phase I

Under Planning

Porto Heliopolis Porto Santorini Porto Aqua Garden

Porto Dead SeaPhase I

Porto Agadir

82.6%

17.4%Undeveloped

Developed

Egypt, 70.2%

Jordan, 21.1%

Morocco, 8.7%

Egypt

Jordan

Morocco

Projects OverviewProjects Snapshot

Land Bank (Ownership)


Local Projects International Projects

Red Sea

Porto Matrouh

Porto October

Porto Pyramids

Porto Cairo

Porto New Cairo

Porto Sokhna

Mediterranean Sea

Porto Agadir

Porto Dead Sea

Porto Tartous

Golf Porto Marina

Porto MarinaResidence

Projects OverviewProjects Location


Projects OverviewPorto Dead Sea


Projects OverviewPorto Group


CONSOLIDATED FINANCIAL PERFORMANCE


1. Porto Santorini

2. Porto Aqua Garden

Porto Group has concluded a revenue sharing agreement with Amer Group to develop 500 second home residential unitsin Santorini project, Golf Porto Sokhna with BUA of 32,500 sqm

The investment cost of the project is estimated at c. EGP 340 mn

Porto Group has concluded a revenue sharing agreement with Amer Group to develop 6,300 second home residentialunits in Aqua Garden project, Golf Porto Marina with BUA of 410,000 sqm

The investment cost of the project is estimated at c. EGP 4.3 bn

Consolidated Financial PerformanceRecent Developments

Potential partnership with Wanda Group, China’s biggest tourism company

Backlog = EGP 6.0 bn

Dec 2015 Backlog = EGP 5.2 bn

15% YTD


Unit Sales by Project (From Project Launch to Dec 2016) | Units

Contracted Sales by Project (From Project Launch to Dec 2016)| EGP mn

318658

81566 437

104 90

1,943

3,961

320

-

1,000

2,000

3,000

4,000

Porto CairoVillas

Porto CairoMall

Porto CairoClinics

Porto Lagoons Porto SokhnaIsland

Porto Matrouh Golf Bay Porto NewCairo

Porto October Porto Pyramids

85530

95

1,026635

233 232

1,114

2,663

203

-

1,000

2,000

3,000

Porto CairoVillas

Porto CairoMall

Porto CairoClinics

Porto Lagoons Porto SokhnaIsland

Porto Matrouh Golf Bay Porto NewCairo

Porto October Porto Pyramids

EGP 8.5 bn

Consolidated Financial PerformancePerformance Overview

6,816 units


621 UnitsDelivered621 UnitsDelivered

Gross ProfitEGP 379 mn

Gross Profit Margin31.4%



Operating ProfitEGP 118 mn

Operating Profit Margin9.8 %



EGP 2.3 bnContracted Sales


EGP 1.2 bnRevenue

Recognized

EGP 1.2 bnRevenue

Recognized

New Sales by Type: First Home – 53% Second Home – 31% Commercial – 16%


FY 2016 Highlights








EGP 996 mnRevenue

Recognized

EGP 996 mnRevenue

Recognized



564 UnitsDelivered564 UnitsDelivered





FY 2015 Highlights


Revenues | EGP mn Gross Profit | EGP mn Operating Profit | EGP mn

Net Profit | EGP mn Total Assets | EGP mn Total Equity | EGP mn

9961,207

-

500

1,000

1,500

FY2015 FY2016

276

379

-

200

400

FY2015 FY2016

16

118

-

50

100

150

FY2015 FY2016

37

118

-

50

100

150

FY2015 FY2016

3,798

5,179

-

2,000

4,000

6,000

FY2015 FY2016

550 578

-

200

400

600

FY2015 FY2016


21%37%

616%

215%

36% 5%


Unit Sales as of FY 2016 | Units

Mall & Shops

Stanly 1 204

Stanly 3 132

Boulevard 206

Little Rome 115

Villas

Capri 504

Milan 121

Verona 99

Venecia 15

Apartments

Stanly 2 363

Boulevard 631

Little Rome 273

Consolidated Financial PerformancePorto October

Porto Group’s focus on the first homes’ market was marked by the launchof Porto October development, its largest ever community development ata total cost of EGP 8 bn

As the Group’s flagship first home development, Porto October hasachieved impressive sales figures and is proving to be successful in allsegments


Land Ownership Co-development Agreement Potential Sales Distribution

PotentialSales

(EGP 44 bn)

Co-development Agreement

72.7%

Porto Dead Sea(EGP 22.4 bn)

Porto Agadir(EGP 9.5 bn)

Sub-total I(EGP 31.9 bn)

1

2

Land OwnershipShare of TotalPotential Sales

27.3%

Porto AquaGarden

(EGP 6.8 bn)

Porto Heliopolis(EGP 4.8 bn)

Sub-total II(EGP 12.1 bn)

1

2

Co-DevelopmentAgreements Shareof Total Potential

Sales

Porto Santorini(EGP 0.5 bn)

3

Porto AquaGarden

(EGP 6.8 bn)

Porto Heliopolis(EGP 4.8 bn)

Co-DevelopmentAgreement Sales

(EGP 12.1 bn)

Porto Santorini(EGP 0.5 bn)

EGP 8.8 bn

EGP 3.3 bn

Consolidated Financial PerformancePotential Sales

Porto Group will enter co-development agreements with Land Owners todevelop all its land bank at Porto Matrouh, Porto Lagoons, Porto Sokhna

Island, and Porto Heliopolis based on a revenue sharing of 20%, 20%, 20%and 40% ,respectively, for Land Owners

Land Owners


Consolidated Income Statement1 | EGP ‘000s

FY2015 FY2016 Change

Revenues 996,354 1,207,053 21%

Cost of Revenues (719,870) (827,568) 15%

Gross Profit 276,484 379,484 37%

Selling and Marketing Expenses (182,855) (176,544) (3)%

General and Admin Expenses (73,012) (66,951) (8)%

Treasury Stock - (9,954) NA

Other Income 13,315 28,880 117%

Other Operating Expenses (17,484) (37,120) 112%

Operating Profit 16,447 117,794 616%

Interest Income 59,418 58,798 (1) %

Finance Cost (3,374) (8,790) 161%

Profit for the Year Before Tax 72,491 167,802 131%

Income Tax (35,233) (50,294) 43%

Profit for the Year 37,258 117,507 215%

Consolidated Financial PerformanceConsolidated Income Statement

1. Prepared in accordance with Egyptian Accounting Standards


Consolidated Financial PerformanceConsolidated Balance Sheet

FY2015 FY2016

Fixed Assets 47,379,525 194,997,372

Projects under Construction 5,373,176 13,043,812

Investment Property - 88,765,459

Intangible Assets 1,326,087 663,044

Foreign Joint Projects 286,115,176 296,963,654

Restricted Deposits due to

Units Owners6,924,294 17,712,223

Deferred Tax Liability 17,792,468 28,674,015

Total Non-Current Assets 364,910,726 640,819,579

Development Properties 1,933,918,440 2,628,246,617

Accounts & Notes

Receivable438,896,243 826,585,186

Prepayments & Other

Receivables474,025,295 900,581,601

Bank Balances and Cash 586,252,494 182,594,475

Total Current Assets 3,433,092,472 4,538,007,879

Total Assets 3,798,003,198 5,178,827,458

Land Purchase Liability 153,104,474 264,241,362

Advances from Customers 2,884,979,679 3,854,729,304

FY2015 FY2016

Accounts and Notes Payable 91,315,091 198,700,723

Income Tax Payable 4,922,801 63,367,376

Accrued Expenses & other

Payables106,382,579 169,862,702

Total Current Liabilities 3,240,704,624 4,550,901,467

Working Capital 192,387,579 (12,893,588)

Total Invested Funds 557,298,574 627,925,991

Share capital 455,954,464 455,954,464

Foreign Currency Reserve (5,365,460) 4,157,088

Legal Reserve 11,542,244 16,387,396

General Reserve 2,887,719 2,887,719

Other Reserve 1,910,504 1,910,504

Retained Earnings 78,665,710 84,200,143

Minority Interest 4,779,067 12,145,438

Total Equity 550,374,278 577,642,752

Term Loans - 32,571,013

Deposits due to Units

Owners6,924,295 17,712,225

Total Non-Current Liabilities 6,924,295 50,283,238

Total SHE & LT Liabilities 557,298,573 627,925,990

Consolidated Balance Sheet1 | EGP Consolidated Balance Sheet1 | EGP

1. Prepared in accordance with Egyptian Accounting Standards


APPENDIX


Total Real Estate Unit FY 2015 FY 2016 Change %

Total Number of Units Units 4,558 6,816 50

Units Sold Units 1,822 2,258 24

Total New Sales Value in the Period EGP mn 1,997 2,290 15

Units Delivered in the Period Units 564 621 10

Revenues Recognized in the Period EGP mn 996 1,207 21

Operating Profit EGP mn 16.4 118 620

Operating Profit Margin % 2 10 5

AppendixFinancial Highlights


Land Area (m2) 1,381,000 Launch Date 2013

Total BUA (m2) 692,039 Public Service & Utilities BUA (m2) 146,471

Residential BUA ( m2) 395,435 Total Licensed Residential Units 3,996

Commercial BUA (m2) 129,717 Total Sales (EGP mn) 3,961

Other (Hotel) ( m2) 20,416 Total Revenues (EGP mn) 1,554

AppendixDevelopment Under Construction – Porto October1

1. All figures are as at 31st December 2016


Land Area (m2) 54,549 Launch Date 2013


Residential BUA (m2) 88,513 Total Licensed Residential Units 1,197


Other (Hotel) ( m2) 5,040 Total Revenues (EGP mn) 194

AppendixDevelopment Under Construction – Porto New Cairo1




Total BUA (m2) 65,830 Public Service & Utilities BUA (m2) -


Commercial BUA (m2) - Total Sales (EGP mn) 437

AppendixDevelopment Under Construction – Golf Porto Sokhna Island (1&2)1






Commercial BUA (m2) 1,628 Total Sales (EGP mn) 566

Total Revenues (EGP mn) 94

AppendixDevelopment Under Construction – Porto Lagoons1





Residential BUA ( m2) 5,442 Total Licensed Residential Units 934


Time Share (m2) 72,393 Total Revenues (EGP mn) 8

AppendixDevelopment Under Construction – Matrouh1



Land Area (m2) 137,282 Launch Date 2007-2012


Residential BUA (m2) 39,555 Total Licensed Residential Units -


Other (Medical) (m2) 7,467 Total Revenues (EGP mn) 1,074

Completed Completed In the Process

Villas Mall Medical

AppendixDevelopment Under Construction – Porto Cairo1







AppendixDevelopment Under Construction – Dead Sea1







Other (Hotel) (m2) 4,511 Total Revenues (EGP mn) NA

AppendixDevelopment Under Construction – Porto Pyramids1



Land Area (m2) 1,200,000 Launch Date 2016



Commercial BUA (m2) 12,940 Total Sales (EGP mn) NA

Other (Hotel) (m2) 21,500 Total Revenues (EGP mn) NA

AppendixDevelopment Under License – Agadir1






Commercial BUA (m2) 23,187 Total Sales (EGP mn) NA

Other (Time Share) (m2) - Total Revenues (EGP mn) NA

AppendixDevelopment Under License – Porto Street Heliopolis1



PORTO OCTOBER145 BEDS

PORTO CAIRO35 BEDS

120 CLINICS

PORTO SOKHNA50 BEDS

GOLF PORTO MARINA65 BEDS

PORTO HELIOPOLIS80 BEDS

AppendixHealthcare Sector1



PORTO OCTOBER50 KEYS

PORTO NEW CAIRO45 KEYS

PORTO PYRAMIDS144 KEYS

PORTO SAEED100 KEYS

PORTO AGADIR252 KEYS

PORTO DEAD SEA130 KEYS

AppendixHospitality Sector1



Porto October Porto Sokhna Porto Saeed

Alamein University

AppendixEducation Sector


Porto October Porto Dead Sea Porto Agadir

AppendixSports Clubs

Contact UsMohamed ZakiInvestor Relations

[email protected]

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