Investor Presentation

March 2014

All figures as at end of 4Q-2013, unless otherwise stated

Outline
1. SODIC Achievements
1. Egypt Real Estate Market Update
A. Fundamentals Intact
B. Mitigating Inflationary Pressures

2. SODIC Updates
A. 2013 Vs 2012
B. Eastown Update
C. Westown Update

2. SODIC Startegy
A. Vision
B. 2014 Strategy
C. Strategic Growth

3. SODIC Operational & Financial Overview

A. Sales Performance & Unrecognized Revenues
B. Launched Projects Profitability
C. Profitability Trends
D. Execution & Delivery
E. Delivery Evolution
F. Non-Launched Inventory
G. Conclusion

4. SODIC Group Profile

A. SODIC Group Description
B. Organizational Strengths
C. Board of Directors and Executive Management
D. Shareholder Structure
E. Share Performance
F. Land Bank
G. Launched Projects Highlights
H. Awards
2

SODIC Achievements

2013: Best year since inception

Net Contracted Sales
2013: EGP 2.5 bln
Since Inception: EGP 8.7 bln

Amenities
Within SODIC West: 3
schools, a medical center,
state-of-the-art office park
and several retail
complexes

Number of Employees
Directly1: 1475 employees
Indirectly on sites: 8000
workers

Units Sold
2013: over 1300 units
Since Inception: over 3800
units

Backlog
Outstanding Receivables:
some EGP 4.0 bln
Unrecognised revenues: some
EGP 5 bln

CSR
Renovations transforming
100s of lives
Supporting foundations
affecting over 5,000
families

Deliveries
2013: 680 units worth EGP
1528 mln of revenues
Since Inception: over 1450
units across 7 different
projects

Development
Over 4000 units under
development
Investment cost of more than
EGP 5.5 bln

Number of employees including subsidiaries

Egypt Real Estate Market Update

Fundamentals Intact
Genuine demand fueled by Egypts young population
Strong Demographics1
24%
Above 40
Years

32%
Between
20 & 40
Years

Unit Supply Shortage2

400,000

Private Vs. Public Contribution3

Supply Demand Gap

25%
Public
Sector
Supply

350,000
Gap of some
200,000 units
annually

300,000
250,000
200,000

44%
Below 20
Years

150,000
100,000
2006

2007

No. of Units Supplied*

60% of population under the age of 30

years
Non-married males exceed 20 million
individuals
Around 800,000 new marriages per
annum
Population growing at a rate of 2-3%
annually
Inevitable growing demand

1 Source:

2009

2010

2011

Estimated Yearly Demand**

Pent up demand of some 1 million

units
Annual demand of some 350,000 units
Supply & demand gap of some
200,000 units per annum

Over the past 5 years, most of

residential supply from private sector
Public sector known for inefficiencies
and poor quality
Private sector only solution to fill the
residential supply & demand gap

Central Agency for Public Mobilization & Statistics (CAPMAS) and Ministry of Housing (MOH) September 2012 Egypt Statistical Report .
figures source: Central Agency for Public Mobilization & Statistics (CAPMAS) September 2012 Egypt Statistical Report; Demand figures: no official figures exist, figure based
on various sources including research reports, recent news articles, and MOH.
3 Source: Jones Lang LaSalle, CAPMAS, American Chamber
2 Supply

2008

75%
Private
Sector
Supply

Mitigating Inflationary Pressures

Despite inflationary pressures, SODICs profitability margins are augmenting
How real estate developers mitigate the current & expected inflationary pressures?
Raising selling prices/Higher down payments
Most developers raised selling prices by 20% in 2013
Some developers increased their down payment by 10-15%, hence increasing their effective net present value

Shortening development cycle

Pressuring the period in-between sales launch and construction commencement

Forge strategic alliances with industry leaders in volatile raw materials

Steel & cement are the most variable raw materials, representing some 15% of total construction cost
Advance purchases and/or entering into long-term supply agreements

Design efficiencies
Building smarter units with better space utilization and less imported materials
Constructing structurally efficient buildings (Example: Eastown Residences apartment buildings efficiency 93%)

Pressuring contractors margins

Lack of contract awards allowed developers to negotiate lower prices for new construction contracts
6

SODIC Updates

2013 Vs 2012 Highlights

SODICs solid KPIs signal steady growth & improved financial & operational efficiency
KPI (in EGP mln unless otherwise stated)

2013

2012

Variance

Gross Contracted Sales

2,730

1,800

52%

Net Contracted Sales

2,478

1,600

55%

Number of Units Sold (units)

1,409

924

52%

Cash Collected

1,292

750

72%

Development CAPEX (excluding land)

802

752

7%

Number of Units Delivered (units)

680

441

54%

Value of Units Delivered

1,530

1,402

9%

Normalised Gross Profit

535

517

3%

Actual Gross Profit

355

517

- 31%

Normalised Net Profit

229

257

- 11%

Actual Net Profit

- 447

257

- 274%

Debt Raised/Secured

900

170

429%

Cash at banks & on hand

453

320

42%

One-off cancellations1 and impairment2 overshadow solid operational performance resulting in lower profitability (Gross
Profit & Net Profit). Otherwise, 2013 shows bettered results.
8

1
2

Reversal of previously booked revenues related to two large exceptional sale transactions, amounting to EGP 242 million.
A one-off, non-cash, impairment charge on SODICs Syrian investment has taken place with an amount of EGP 478 million.

Eastown Update
A mixed-use development poised to be New Cairos destination of choice
Project Status

Legal Update:
- Settlement negotiations with NUCA are in motion, amount
to be paid and relevant settlement terms are still being
finalised.
Gross Land Area: 857,964 sqm
- Launched residential land area: 230,019
- Commercial/Retail 1: TBD
Residential BUA: 420,673 sqm
Launched Project: Eastown Residences (Phases I-IV: 808 Units)
Number of Residential Units: 1,788
Diversified Residential Product Offering:
- Apartments
- Duplex
- Townhouses
- Signature Standalone Villas
Prime Location:
- East Cairo, adjacent to AUC
- Retail/Commercial area on main road frontage

Retail & commercial plots are currently in master-planning phase. We will update market once finalised.

Master plan

Westown Update
Bustling downtown of SODIC West
Project Status
Legal Update:
- SODIC and Solidere to reach an amicable settlement for all
their legal disputes. As a result, 250,000 sqm of land within
Westown is now free of encumbrance of any nature.
Gross Land Area: 1,223,620 sqm
- Launched 1 : 645,490 sqm
- Non-launched 1 : 578,130 sqm
Launched Projects:
- Forty West
- The Polygon
- Westown Retail Hub
- Westown Residences (Phases I to IX)
Diversified Product Offering:
- Apartments
- Duplex
- City Villas
- Twinhouses & Townhouses
- Signature Lofts
- Offices
- Shops
Prime Location:
- Within Sheikh Zayed district and on Cairo-Alex Desert Rd
- Within a complete community (Retail, offices, schools and
medical centers located in SODIC West)
New Launches: Phase X launched on the 1st of March
10

As at 5th of March, 2014 (i.e: taking into account phase X launch on some 70k sqm of gross land area)

Master plan

SODIC Strategy

11

Vision

A trusted and widely respected platform with untapped potential

1. Continued timely execution
1. Continued timely
execution
Maintain balance
sheet potency

Maintain and accelerate construction on contracted units to ensure

collecting c.EGP 4 billion of outstanding receivables and cement SODICs
reputation as a delivery oriented developer.

2. Replenish land
bank

2. Replenish land bank

Continue to explore various deal structures with land owners/developers,
allowing for minimal initial capital requirements.

3. Market relevant products

SODIC Strategy

Building on the success of Westown Residences & Eastown Residences,

continue to develop such successful products

3. Continue to
develop market
relevant products

5. Reach platform
capacity
4. Penetrate the
middle income
market

4. Penetrate Middle Income Market

After having achieved a balanced mid-income formula, one of SODICs
prioritys is to find suitable land to start such project

5. Reach Platform Capacity

SODICs current organistaional structure is geared to reach: annual sales
of some EGP 3-3.5 billion & annual execution of some EGP 1-1.5 billion

SODIC will continue to diversify its development portfolio across

multiple segments (residential, commercial & retail) and classes
(high, upper-mid & mid-income) to optimise value in addition to
creating recurring revenue stream from leasable assets
12

6. Maintain balance sheet potency

Maintain SODICs strong balance sheet with clear guidelines on unit
delivery, construction, cash collection, new sales and debt management.

2014 Strategy
Focusing on core strength & recognized sweet spots
Proven launched Products
Key elements: affordable, functional
& community centric
Higher densities
Efficient structural design &
construction
Unique features catering to Egyptian
taste
Diversified product offering capturing
a larger client-segment

Leveraging Existing Platform

Strong sales & after sales team
Prudent finance team
Diverse project development team
Efficient construction management
cycle
Strategically located sales centers
across Cairo & Greater Cairo

In-House Capabilities
Continuing to adopt/create new
product solutions filling market gaps
Enhancing strategy of selling
complete communities
Evolving/optimizing to further
enhance returns
In-house design and construction
management lowers construction
cost

Expected Outcome

Inventory Status

13

1
2

Bringing to market new inventory worth some EGP 2 billion, in addition to existing
inventory of some EGP 1 billion
Location: East & West Cairo

New Contracted Sales

Targeting new gross contracted sales in line with 2013s achievement of EGP 2.7 billion. YTD1
new contracted sales of some EGP 545 million
Phase X Westown Residences , launched on March 1st with total sales value of EGP 525 million

Project
Execution & Delivery

Execution: CAPEX 2 of some EGP 1 billion on projects

Deliver across 8 different projects:
- Allegria, The Polygon, Fort West, Kattameya Plaza, Westown Residences, Casa, The Strip &
Westown Retail Hub

As at 5/3/2014.
Expected spending on launched projects and excludes any land liabilities.

Strategic Growth
Leveraging existing brand name to facilitate growth of land bank
New Investment
Opportunities

Primary approach
Implement existing proven products on new lands in Cairo outskirts
Secondary approach
Opportunistic Funds (Distressed assets)
Secondary coastal (North Coast, Ein Sokhna, Red Sea)
Middle Income (Large amenities, community building)
Secondary city retail (Mansoura, Tanta, Upper Egypt)

Land Acquisition Options

New Government Auctions

Secondary Sale

Land plots up to 150 acres:

- Auctioned in March 2013, got cancelled due to
overheating prices
New Auction In Process:
- Bid scheduled to take place during the course of
November 2013 for some land plots in premium
locations
- Government offering new terms for land
installments: payment on 4 years Vs. historical 10
years, making it less attractive for developers

Large Developers:
- Unable to develop full plots in allowable time
frame
- Brand allows for bargaining power
- Approached by multiple developers
Land Owners:
- Finding it difficult to monetize/exit
- Willing to offer low prices in return for sharing
upside/risk
Legal Issues:
- Rare to find lands clear from legal encumbrances
- Value reduced by restrictive time plans

SODIC is seeking both options in parallel to increase shareholder value

14

SODIC Operational & Financial Overview

15

Sales Performance & Unrecognized Revenues1

FY 2013 net contracted sales shows over 50% growth yoy
2008

2009

2010

2011

2012

2013

Regular Operating
Environment

June 30th
Revolution

Annual Net Sales (EGP Million)

10,000

9,000

Regular Operating
Environment

Global Financial
Recession

Regular Operating
Environment

Launch of:
Allegria phase 3 & 4
The Polygon
Forty West
The Strip
Cumulative Sales: EGP
2.7 Billion

KP launch achieving
EGP 250 million of
sales
Cumulative Sales:
EGP 4.6 Billion

Jan 25th Revolution

Monthly Cumulative Sales (EGP Millions)

8,000
7,000
6,000

Allegria Phase 1&2

launch
Some 650 Allegria
units contracted

5,000
4,000
3,000

2,000
1,000

1,884

1,839
849

Launch of:
Small offices in The
Polygon
Westown Residences
WTR Phase 1
Turmoil causing EGP
735 million in
cancellations
Cumulative Sales: EGP
4.6 Billion

Launch of:
WTR phases 7, 8 &
9

Eastown
Launch of:
Residences ETR
Allegria phase 5
phases 1 to 4
WTR Phases 2 to
account to 50% of
6
total sales
WTR achieved sales
of some EGP 1
billion
Cumulative Sales:
EGP 6.2 Billion

1,619

Some EGP 8.7 billion of net sales since 2008 of which 57% yet to be recognized
1 Monthly Sales

16

from January 2008 to December 2013. Unrecognized revenues accounting for EGP 5 billion as at 31 st of Dec 2013.

2,478

Launched Projects Profitability

GPM of 38% on some EGP 8 billion of unit sales
Percentage Sold (Value)

Sellable Inventory Profitability 1

Project
(EGP millions)

Sales / Lease
Ratio

Total
Inventory

Projects
GPM 2

Sold
Inventory

Gross Profit 3

Allegria4

100%

4,374

40%

4,003

1,592

Polygon

62%

587

34%

337

115

Forty West

83%

567

27%

342

92

KP

100%

600

31%

600

185

WTR (I-IX)

100%

1,696

41%

1,573

648

ETR (I-IV)

100%

1,218

38%

1,207

454

Total

9,042

38%

8,062

3,086

Sold

Unsold

91%

9%
43%

57%
60%

40%
100%

93%

7%
1
%

99%
88%

12%

200
150

104

158

1,200
900
600
300

2014

2015

2016

2017

Forty West

2018
The Strip

2019

2020

Westown Hub

All figures in EGP unless otherwise stated.

Expected total gross profit for sold project portfolio, excluding NPV adjustment.
3 Represents the gross profit achieved, not recognised and based on actual net contracted sales..
4 Unsold 9% of total Allegria inventory amounts to EGP 375 mln (24 units), showing average price per unit of EGP 15 mln.
1

1,174

32

Polygon

17

123

136

152

78

100
50

117

129

144

2021

2022

2023

Cumulative Lease Revenues

Cumulative Lease
Revenues
EGP Million

Annual Lease Revenues

EGP Million

Expected Lease Revenues

Profitability Trends
Upward profitability trends in WTR & ETR enhancing land utilization
Westown Launches
(All figures in EGP millions, unless
otherwise stated)

Gross Land (sqm)

H1 2012

H2 2012

H1 2013

GP per gross land area (EGP/sqm)

H2 2013

3,000

255,462

110,386

31,570

77,620

2,430

2,500
2,000

Total Revenues
Total Development

741
Cost 1

Gross Profit per Gross Land

440

129

385

425

254

70

189

1,105

1,545

1,815

2,430

1,500

1,105

1,000
500
0

Gross Profit Margin

Eastown Launches
(All figures in EGP millions,
unless otherwise stated)

Gross Land (sqm)

Total Revenues

Total Development

Cost 1

38%

39%

H1 2013

44%

49%

H1 2012 H2 2012 H1 2013 H2 2013

H2 2013

GP per gross land area (EGP/sqm)

2,400

182,384

58,897

2,300

921

294

2,100

597

163

2,000
1,900
1,800

18

Gross Profit per Gross Land

1,773

2,224

Gross Profit Margin

35%

45%

1 Development cost

includes CAPEX & land cost and excludes capitalized technical department wages.

2,224

2,200

1,773

1,700
1,600
H1 2013

H2 2013

Execution & Delivery

SODIC delivered some 680 units across 7 different projects, namely:
Allegria, Kattameya Plaza, Forty West, The Polygon, The Strip, Casa & WT Residences
Execution

Delivery
Project

Number of
Units

Delivered
Units

%
Delivered

Delivery
Start Date

Delivery
End Date

Investment
Cost2

%
Completion3

Allegria

1,254

1,040

83%

2010

2015

2,275

96%

Kattameya Plaza

466

284

61%

2013

2015

339

97%

Forty West

133

22

17%

2012

2015

489

72%

WT Residences (I-IX)

1,075

34

3%

2013

2016

930

54%4

The Polygon1

250

61

24%

2013

2015

612

76%

The Strip

73

18

25%

2012

2014

135

81%

WT Hub

45

2014

2014

71

90%

ET Residences (I-IV)

808

2016

2016

594

5%

CASA5

63

24

38%

2013

2013

NA

NA

Total

4,138

1,483

36%

From 2010 to 2016

5,445

NA

Over 4,000 units under development (36% delivered) with an investment cost of some EGP 5.4 billion
Figures represent Polygon phase I.
Investment cost represents the expected construction and infrastructure budget, excluding land cost. Figures are in EGP millions.
3 Percentage of completion represents the actual earned value. Calculated on a weighted average basis per project phase.
4 Westown Residneces Phase I shows an 86% development completion on a standalone basis.
19 5 CASA is a jointly owned project (80% Palm Hills & 20% SODIC). SODIC owns 63 apartments only.
1
2

Delivery Evolution
Delivering on approximately 1,500 units since 2010
1,600

1,496

CASA
1,400

WTR PH 1
Kattameya Plaza

1,200

Polygon

Number of units

The Strip
1,000

Forty West
Allegria
813

Total Cumulative Deliveries

800

600
369
400

200

110

Total
deliveries per
year

20

2010 A

2011 A

2012 A

2013 A

110 Units

259 Units

444 Units

683 Units

Non-launched Inventory - Visibility

Project: Esplanade West (El Yousr Land)
Expected Project Sales Value: EGP 1.8 bln @ 7% FP
Sales Launches Timeline: 2015 - 2018

Project: ET Residences
Non-launched Inventory Value: EGP 3.8 bln
New Sales Launches Timeline: 2014-2015
2014 Sales Launches Value: some EGP 1 bln

Project: WT Residences
Non-launched Inventory Value: over EGP 2 bln
New Sales Launches Timeline: 2014-2015
2014 Sales Launches Value: some EGP 1 bln

SODIC is burning land at an average rate of 500-600k sqm per annum, showing visibility of 4-5 years at the
same rate of sales (EGP 2-2.5 mln annually)
21

Conclusion

SODICs current platform is geared towards growth

Growth-Centered Platform
Development
Market research
Assessment
Tailor, launch
market-relevant
products

Sales
2013 FY net sales
of EGP 2.5 billion
Capacity &
platform of EGP
3.5 billion
annually

Execution

Delivery

Liquidity

Over EGP 800

million in 2013
EGP 1 billion of
annual execution
capacity

Over 680 units

delivered during
2013
Over 2,600 units
to be delivered
over the coming 3
years (2014-16)

Cash balance of
some EGP 400
million
Well geared:
securing EGP 900
million syndicated
loan

Management Focus
Continue to: deliver existing projects, create vibrant communities & launch in-demand products

Deliver on current obligations: protecting outstanding receivables of some EGP 4 billion

Replenish land bank: ensuring long-term visibility and sustainability

Maximize Shareholders Value

22

1
2

As at 3/3/2014.
Excludes land payments or any land to be bought.

SODIC Group Profile

23

SODIC Group Description

SODIC a fully integrated developer
About SODIC Group
Diversified company base
with a wide range of core
competencies

Some EGP 8.7 billion of

net contracted sales since
2008
9 launched projects with
over 5,000 residential
units valued over EGP 10
billion

Egypts raw land bank of

some 2.5 million sqm
Edara ISO Certification
9001: 2000 for quality of
property & facility
management

24

A fully integrated real estate developer specialized in building complete communities with a proven track record
One of the few mega listed companies in Egypt that is not family owned and largest shareholder owning 19%
Full fledged in-house capabilities
- Design Team ensures flexibility with development while saving considerable costs and time
- Construction Management saves significant costs and time, surpassed by exceptional quality

Edara Property Management Company:

- 100% owned
- Facility/property management with a turnover of some EGP 30 million in 2012
SODIC Golf Company:
- 100% owned
- Golf course management and F&B
Tegara Commercial Centers Company:
- 100% owned
- Retail and commercial operational management

Organisational Strengths
A developer building on the positives and tackling the challenges
Description

Fully Integrated
Developer

Ability to take a project from concept to delivery

Depth of in-house capabilities including:
- Market research
- Product Development/ Design
- Finance
- Licensing & permitting
- Sales
- Procurement & Construction Management
- Delivery & Operation

Process Driven
Development

Full Cycle
Experience

25

1 Sales

as at March 2014.

Proprietary, Honed Process

Efficient management of input from all stakeholders
achieving optimal business cases
Emphasizing on coordination between project
development and sales team
Efficiencies & capabilities to standardize processes,
evolve & optimize products

Successful navigation through different market

conditions including:
- Boom (2006-2008)
- Global Recession (2009)
- Revolution Year (2011)
- Post Revolution, Political/Economic Unease
- Revolution Continues (2013) (Current phase)

Assessments

Post-revolution strategy shift of launching market-tailored projects

Strength

New market needs

Extensive interviews/focus groups with
potential customers
Competition Research/ Sales Analysis
Review of SODICs experience during the
2009 recession

Outcomes
4 key elements to target Upper Middle
Income Class
Affordability
Functionality
Exclusivity
Safety

Actions
New products with ticket price of EGP 0.8
2.8 million
Efficient structural design & construction
Higher densities
Smart design with unique features

Results
Unparalleled success of WTR I - IX
Some EGP 1.6 billion of sales1
Higher margins
Quicker process
Market leader

Board of Directors and Executive Management

SODIC is one of the few companies in Egypt that is not family owned and run
Board of Directors & Ownership Structure

Diverse team
assembled since
2006 with
untapped capacity

Chairman
(Non-Executive)

Transitioned from
entrepreneurial to
corporate

Dr. Hani Sarieldin

Managing Director
(Executive)

Mr. Ahmed Badrawi

A development
organization
capable of
monetizing land
positions at
optimal value

Member

Member

(Independent)

Eng. Safwan
Thabet

Member

Member

Member

(Independent)

(Olayan Group)

(SODIC Inv,
EXEC)

(EDARA, EXEC)

(SOREAL, EXEC)

(October Prop.
Ltd)

(October Prop.
Ltd)

Mr. Shafik El
Baghdady

Dr. Walid
Abanumay

Mr. Sabah
Barakat

Mr. Omar El
Hamawy

Eng. Frank
Konings

Mr. Basil
Ramzy

Mr. Samer
Yassa

Mr. Haytham
Sabry

Management with
full economic cycle
experience,
successfully
navigated global
recession &
revolutions

Member

Executive Management
Managing Director
(Executive)

Mr. Ahmed Badrawi

26

Member

Member

(Independent)

Member

Chief Technical
Officer

Chief Financial
Officer

Chief Projects
Officer

Chief
Commercial
Officer

Chief Projects
Development
Officer

Mr. Frank
Konings

Mr. Omar El
Hamawy

Mr. Hatem
Halwagy

Mr. Ahmed
Labib

Mr. Basil
Ramzy

Shareholders Structure
A fragmented shareholding structure with the largest shareholder owning 19%
Shareholders Structure
19%
EFG Hermes
45%

Abanumay
Olayan Group
Al Rashed & Sons

13%

ESOP
Free Float
12%

4%

7%

Share Evolution Since Dec 2004

Shareholder Structure By Type
Dec 2004

Retail
35%

Regional
Institutions
6%

Local
Institutions
59%

27

Shareholder Structure1 By Type

Dec 2013

1 International institutions include one company with

Increased international
and regional appetite
Less retail appetite
Introduction of ESOP in
2007

International
Institutions,
24%

Retail, 8%

14.7% share stake (out of the 24%) the Company is 94% owned by EFG-Hermes Holding Company.

ESOP, 4%

Local
Institutions,
26%

Regional
Institutions,
39%

Share Performance
Stock outperforming EGX over the past 2 years
24 Months Share Performance : SODIC Vs. EGX (Rebased) 2

Share Information1
350.00

No. of Shares Outstanding

90.68 million

300.00

Market Capitalization
EGP 2,200 million

250.00

Market Capitalization
USD 314 million

150.00

Symbol
EGX: OCDI.CA
Reuters: OCDI CA
Bloomberg: OCDI EY

50.00

200.00
EGX
OCDI

2013 Share Performance

7%

2-Dec-13

2-Nov-13

2-Oct-13

2-Sep-13

2-Aug-13

2-Jul-13

2-Jun-13

2-May-13

2-Apr-13

2-Mar-13

2-Feb-13

2-Jan-13

2-Dec-12

2-Nov-12

2-Oct-12

2-Sep-12

2-Aug-12

2-Jul-12

2-Jun-12

2-May-12

2-Apr-12

2-Mar-12

2-Feb-12

2-Jan-12

100.00

Research Analysts Consensus

52 weeks High/Low
(EGP): 25.8/13.8

NBK Capital, Mar2014, FV: EGP 31.01 per share, Buy: We revise the fair value for Sodic with a 4.8% increase,
following the resolution of its dispute with Lebanese developer Solidere,

Trailing 12m PE4: 9.13x

Naeem Holding, Dec2013, FV: EGP 30.76 per share, Buy: Eastown Residences a key driver, sales momentum
improving, need to bolster land bank portfolio,

Trailing 12m P/Bv:0.97

HC, Oct2013, FV: EGP 25.1 per share, Neutral: Land still key for re-rating,
Index Inclusions
EGX 30
EGX 100
MSCI IMI

Beltone, Sep2013, FV: EGP 26.4 per share, Buy: Land: the missing ingredient in a perfect mix,
Pharos, Jul2013, FV: EGP 28.0 per share, Buy: Short-term share price catalyst: Political stability and a
successful launch of Eastowns upcoming phase during Sep/Oct2013.

28

As at 4th of Mar, 2014.

From 2 Jan 2012 to 31 Dec 2013, rebased.

Land Bank
Diversified prime locations, low-cost base, 56% utilized & 93% paid

Location

Utilized

Sheikh Zayed/Sixth of October

5.05 mln sqm

New Cairo

0.36 mln sqm (2)

0.50 mln sqm

Eastown land directly adjacent to AUC

Syria

1.56 mln sqm

Proportionate to SODICs 50% ownership

Total

5.41 mln sqm

3.9 mln sqm

Land Bank
Advantages

29

1 Consists of
2

Raw
1.84 mln sqm

Description
-

(1)

42% utilized of total land bank

Prime Locations

Regional Diversification

Null Liabilities

Located in premium city spots at

East/West Cairo & Syria

Diversified across Syria and Egypt,

with 40% of total raw land bank in
Syria

All plots are fully paid except for EGP

85 million payable over 3 years

578,130 sqm in Sheikh Zayed & 1,260,000 sqm in KM 42 Cairo-Alex Road (El Yousr land). As at 5th of March 2014
Kattameya Plaza Project (126,000 sqm) and ET Residences Phases I-IV (230,019 sqm). As at 5th of March 2014

Launched Projects Highlights

Since 2006 SODIC successfully launched 8 projects; highly diversified project portfolio
Project
Allegria

Residential single-family units

Launched 5 phases
1,254 units

Forty West

High-end apartment buildings

Includes hotel, retail and commercial buildings
133 units

Westown
Residences

Various types of residential units

Launched 9 phases
1,075 units

Eastown
Residences

Various types of residential units

Launched 4 phases
808 units

Kattameya
Plaza

Upper middle class apartment buildings

Includes a retail complex
466 units

The Polygon
The Strip

WT Hub
30

Description

Integrated mixed-use office park

Sales to lease ratio of 62%
250 offices (office space ranging from 70 sqm to 200 sqm )
Retail stretch mall offering multiple shop categories and eateries over seven zones
Sales to lease ratio of 75%
Launched 2 phases comprising 93 units

Entertainment retail complex

100% lease
45 units

Awards
A globally recognised developer
Award
Cityscape

2013: Allegria - best residential project Built

2013: The Polygon - best commercial and mixed use project Future

Euromoney

2011: Best developer overall Egypt

2011: Best mixed use developer Mena
2011: Best residential developer Mena

Euromoney

2010: Best developer overall Egypt

2010: Best mixed use developer Mena

Business Today

Ministry of Trade
& Authority

CNBC Property

American Society
of Landscape
Architects
31

Description

2011: Best company by BT100 rank change at the BT100 Crystal Awards

2010: Enterprise Innovation Award for registering all of its trademarks with the Internal
Trade Development Authority, an affiliate of Ministry of Trade and Industry
CNBC Arabian Property 2009: Allegria best architecture among other developments
CNBC Property 2008: Allegria best development in Egypt with a 5-star award
CNBC Property 2008: Allegria best golf course development with a 4-star award
2007: Allegria award of merit from the American Society of Landscape Architects (ASLA)
for its master plan, developed by world-renowned master planners EDAW

Disclaimer
This Presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation
or solicitation of an offer to subscribe for or purchase securities of any kind and neither this document nor anything contained herein shall form the
basis of any contract or commitment from any party whatsoever. Information, including but not limited to financial information, in this presentation
should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or any other instruments in or, in
entities related to, SODIC or any other company.
This Presentation contains important and privileged information on SODIC which is solely owned by SODIC and may not be relied on or used by any
person whosoever for any purpose, and therefore shall be kept secret and confidential by any receiving party.
This document includes forward-looking statements. The words "believe", "anticipate", "expect", "intend", "aim", "plan", "predict", "continue",
"assume", "positioned", "may", "will", "should", "shall", "risk" and other similar expressions that are predictions of or indicate future events and
future trends identify forward-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 document should not
place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are in
many cases beyond the control of the Company. By their nature, forward-looking statements & projections involve risks and uncertainties because
they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of
future performance and the Company's actual results of operations, financial condition and liquidity, and the development of the industry in which
the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this document. The
cautionary statements set forth above should be considered in connection with any subsequent written or oral forward-looking statements that the
Company, or persons acting on its behalf, may issue. Various factors could cause actual results to differ materially from those expressed or implied
by the forward-looking statements in this document including worldwide economic trends, the economic and political climate of Egypt, the Middle
East and changes in business strategy and various other factors.
All information contained in this presentation, including but not limited to information relating to the Egyptian real estate and financial markets,
are compiled from sources known to be reliable and/or publicly available data reasonably assumed to be accurate (the Source Data). The Source
Data may contain errors and/or inaccuracies; SODIC provides no warranties or guarantees of any kind, expressed or implied, and accepts no
responsibility whatsoever, with regard to the accuracy, completeness or correctness of the Source Data used in the Presentation.
This disclaimer is to be considered an integral part of the Presentation and SODICs liability in respect of this Presentation and is to be governed by
Egyptian law under the jurisdiction of Egyptian courts.

32

Thank You

For SODIC investor relations enquiries contact:

Tamer Darwish
tdarwish@sodic.com
Tel: +202 3854 0121
SODIC IR website: ir.sodic.com
SODIC corporate website: www.sodic.com

Notes

34