Investor Presentation August 2014 All figures as at end of Q2-2014, - PowerPoint PPT Presentation

Investor Presentation August 2014 All figures as at end of Q2-2014, unless otherwise stated

Outline 1. Egypt Macroeconomic & Real Estate Sector Overview A. Egypt Macro Economic Update B. Egypt Real Estate Update 2. Introduction & Corporate Updates A. SODIC Overview B. Organizational Strengths C. 2014 Corporate Strategy D. 2014 Achievements & Targets for H2 2014 E. Share Performance Vs. EGX 30 F. Capital Increase Mechanics 3. Land Bank & Launched Projects Profile A. Land Bank Location & Utilization B. Launched Projects’ Highlights C. New Acquisition: 301 Acres D. Westown & Eastown Updates 4. SODIC Operational & Financial Overview A. Sales Performance & Unrecognized Revenues B. Launched Projects’ Profitability C. Execution & Delivery D. 2014 H1 Vs. 2013 H1 5. Annex A. Egypt Macroeconomic Indicators B. Board of Directors and Executive Management C. Shareholder Structure & Share Performance D. Awards 2

Egypt Macroeconomic & Real Estate Sector Overview 3

Egypt Macroeconomic Update 1 Planned government initiatives to address long-standing economic issues Recent Government Initiatives Macroeconomic Indicators The government has embarked on a Subsidy Reforms Real GDP Growth 1 number of schemes  In July 2014, the Egyptian government kicked off a 5.2% that aim to address Annual Saving Item 4.5% much-awaited fiscal consolidation, aiming to bring the (EGP Bn) economic issues fiscal deficit towards a sustainable path and revive Diesel 16.8 3.3% economic growth. The approved measures constitute: Gasoline 8.9 These initiatives are 2.3% 2.2% Fuel Oil 4.0 2.1%  Rationing wide-range of fuel products 1.8% expected to have Natural Gas 3.7  Re-pricing of electricity and outlining a five-year Electricity 8.5 positive effects on Cigarettes & plan for phasing out fuel subsidies 4.5 Alcohol macro economic  Increasing sales taxes on tobacco and alcohol Total 46.4 indicators 09/10A10/11A11/12A12/13A 13/14E 14/15F 15/16F % of GDP 2.0% Mortgage Finance Budget Deficit (%GDP) 2 2 13.7%  The government is stimulating private and household credit through the 12.0% 12.0% launch of an EGP 10bn programme by CBE to promote mortgage finance 10.8% 10.4% 9.8%  The programme would lend banks funds at preferential rates for 8.1% maturities of more than 10 years that would be utilized in the financing mortgage for low and middle income families Suez Canal & New Road Network 3  The government recently announced to build a new Suez Canal alongside the existing 145-year-old historic waterway with an estimated cost of USD 09/10A10/11A11/12A12/13A 13/14E 14/15F 15/16F 8.2 bn (including building underground tunnels) to be completed in five Inflation years. The new canal is set to boost annual revenues to USD13.5 bn by 2023 from USD5.2 bn in FY12/13 12% 11%  3,600 KM of new roads to be constructed at a cost of EGP 36 billion 10% 10% 9% On-going Talks With Bretton Woods Institutions 8% 4 7% “The World Bank Group (WBG) is preparing to form a  President Al-Sisi has decided to new partnership strategy with Egypt to guide the group’s renew talks with the IMF & World engagement in the country for the next five years. The Bank and hired western advisors group stated that the Country Partnership Strategy (CPS) was launched on Wednesday in collaboration with the to advise on policy decisions Egyptian government .” 09/10A 10/11A 11/12A 12/13A 13/14E 14/15F 15/16F DNE, March 8, 2014 1 Source: IMF, Bloomberg, Reuters, EFG Hermes Research 4 2 Expected budget deficit is based on press release by the Ministry of Finance

Egypt Real Estate Market Update 1 Young population to fuel growth A large and growing Market Drivers Remain Intact population is Egypt’s key asset compared to its MENA Population & Growth Vs Arab States Demographics counterparts Female Male Unlike aging economies, Population (mn) Growth (%) 90 6% 87 Egypt is likely to exhibit a 80 strong working age Young 5% >70 70 2% 2% population population growth over the (around 60% 60 60-70 4% 4% coming period below the 50-60 50 7% 7% 3% age of 30) 3% Egypt benefits from an 40-50 40 11% 11% 33 32 2% 28 attractive demographic 25 2% 30-40 30 13% 13% profile due to its large and 1% 1% 2% 20-30 20 20% 19% growing young population World Average: 1.2% 5 10-20 4 22% 23% 10 3 2 <10 21% 21% - The increasing marriage rate and urbanization levels have 25% 15% 5% 5% 15% 25% resulted in an increased Annual Marriages (‘ 000) Mortgage Penetration demand for housing units, With significantly below 17% 933 average leverage levels, the 15% 898 sector is expected to witness enhanced demand especially 848 when considering recent government initiatives 8% relating to mortgage 6% 6% 778 5% financing 2% 2% 2009 2010 2011 2012 5 1 Source: CAPMAS, IMF, US Census, Central Banks of respective countries and Industry reports; Data as at 31/12/2013.

Egypt Real Estate Market Update 1 Key fundamentals Market Characteristics/Trends The real estate market is underpinned by real demand  Market characterized by a small number of densely populated cities, with low urbanization. Cairo is one of the most and limited speculation with dense metropolitan areas in the world a large supply-demand gap  Sales are supported by a large population with an increasing number of marriages to spur demand Most of demand seen in new urban communities / satellite cities (e.g. East-  Strong pent-up demand still not matched by equal supply (estimated at not less than 200k units annually) Cairo, West-Cairo, Shorouk, etc)  Inefficiencies of public sector players led to emergence of a number of mega private sector developers These cities offer high quality  Summer 2014 witnessed an increasing demand for secondary homes newly constructed homes within a fully functional community, offering Gross Pre Sales for Key Developers (EGP million) Vs. FX Rate necessary amenities and facilities (e.g. schools, shopping centers and medical centers) and supported by emergence of new business districts (e.g. Smart Village near 6th of October) 6 1 Source: Jones Lang LaSalle, EFG Hermes research, CAPMAS, American Chamber.

Introduction & Corporate Updates 7

SODIC Overview SODIC, Egypt’s trusted developer, emerging stronger post revolution Brief Overview MCap of some EGP 3.5 billion, with a diversified  A fully integrated real estate developer specialized in building complete communities shareholder base  IPO in 1996, non-family owned, largest shareholder owning 13%  Diversified Launched Project Portfolio: 9 launched projects with over 5,000 residential  6 residential projects comprising 4,400 units units valued at EGP 11  2 retail projects comprising 43,000 sqm of BUA billion  1 commercial project comprising 70,000 sqm of BUA  In-House execution capabilities: Design, Construction Management, and Facility Management SODIC’s Egypt raw land bank expected to generate some EGP 17 billion of - I Company Highlights residential sales YTD stock performance of  EGP 10.2 billion 1 +89% Contracted Sales  4,542 units contracted  1,705 units delivered 1 Delivery  Delivering seven projects in West Cairo, with one project in East Cairo  EGP 4 billion of receivables Backlog  EGP 5.1 billion of unrecognized revenues  3.6 million sqm of undeveloped land Egypt Land Bank  Newly acquired plot of 1.26 million sqm in New Cairo  EGX/EGM approved EGP 1 billion capital increase to existing shareholders Funding  3 debt facilities secured with a value of EGP 2.2 billion 1 Since inception; Excluding Beverly Hills Project. 8

Organizational Strengths A developer building on the positives and tackling the challenges Strength Description Assessments Post-revolution strategy shift of launching market-tailored projects New market needs  Ability to take a project from concept to delivery Extensive interviews/focus groups with  potential customers  Depth of in-house capabilities including: Competition Research/ Sales Analysis  - Market research Review of SODIC’s experience during the  - Product Development/ Design Fully Integrated 2009 recession - Finance Developer - Licensing & permitting - Sales Outcomes - Procurement & Construction Management - Delivery & Operation 4 key elements to target “Upper Middle Income Class” Affordability  Functionality   Proprietary, Honed Process Exclusivity  Efficient management of input from all stakeholders  Safety  Process Driven achieving optimal business cases  Emphasizing on coordination between project Development development and sales team Actions  Efficiencies & capabilities to standardize processes, evolve & optimize products New products with ticket price of EGP 0.8 – 2.8 million Efficient structural design & construction  Higher densities  Smart design with unique features   Successful navigation through different market conditions including: - Boom (2006-2008) Full Cycle Results - Global Recession (2009) Experience - Revolution Year (2011) Unparalleled success of WTR I - X - Post Revolution, Political/Economic Unease  Some EGP 4 billion of sales 1 - Revolution Continues (2013)  Higher margins - Stability (Post presidential elections - 2014)  Quicker process  Market leader 1 Includes all phases in WTR & ETR projects since launch to 30/6/2014, some 2,430 units. 9