Investor Presentation March 2014 All figures as at end of 4Q-2013, - PowerPoint PPT Presentation

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 Amenities  Within SODIC West: 3 Net Contracted Sales schools, a medical center,  2013: EGP 2.5 bln state-of-the-art office park  Since Inception: EGP 8.7 bln and several retail complexes Number of Employees Units Sold  Directly 1 : 1475 employees  2013: over 1300 units  Indirectly on sites: 8000  Since Inception: over 3800 workers units  CSR Backlog  Renovations transforming  Outstanding Receivables: 100s of lives some EGP 4.0 bln  Supporting foundations  Unrecognised revenues: some affecting over 5,000 EGP 5 bln families Deliveries Development  2013: 680 units worth EGP  Over 4000 units under 1528 mln of revenues development  Since Inception: over 1450  Investment cost of more than units across 7 different EGP 5.5 bln projects 1 Number of employees including subsidiaries 3

Egypt Real Estate Market Update 4

Fundamentals Intact Genuine demand fueled by Egypt’s young population Strong Demographics 1 Unit Supply Shortage 2 Private Vs. Public Contribution 3 24% 32% Supply Demand Gap 25% Above 40 Between 400,000 Public Years 20 & 40 Sector Years 350,000 Supply Gap of some 300,000 200,000 units 250,000 annually 200,000 44% 150,000 75% Below 20 Private 100,000 Years Sector 2006 2007 2008 2009 2010 2011 Supply No. of Units Supplied* Estimated Yearly Demand**  60% of population under the age of 30 years  Over the past 5 years, most of  Pent up demand of some 1 million  Non-married males exceed 20 million units residential supply from private sector individuals  Annual demand of some 350,000 units  Public sector known for inefficiencies  Around 800,000 new marriages per  Supply & demand gap of some and poor quality annum  Private sector only solution to fill the 200,000 units per annum  Population growing at a rate of 2-3% residential supply & demand gap annually  Inevitable growing demand 1 Source: Central Agency for Public Mobilization & Statistics (CAPMAS) and Ministry of Housing (MOH) – September 2012 Egypt Statistical Report . 2 Supply 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. 5 3 Source: Jones Lang LaSalle, CAPMAS, American Chamber

Mitigating Inflationary Pressures Despite inflationary pressures, SODIC’s 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 7

2013 Vs 2012 Highlights SODIC’s solid KPIs signal steady growth & improved financial & operational efficiency Variance KPI (in EGP mln unless otherwise stated) 2013 2012 Gross Contracted Sales 2,730 1,800 52% Net Contracted Sales 1,600 55% 2,478 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) 441 54% 680 Value of Units Delivered 1,530 1,402 9% Normalised Gross Profit 517 3% 535 Actual Gross Profit 355 517 - 31% Normalised Net Profit 257 - 11% 229 Actual Net Profit - 447 257 - 274% Debt Raised/Secured 900 170 429% Cash at banks & on hand 453 320 42% One-off cancellations 1 and impairment 2 overshadow solid operational performance resulting in lower profitability (Gross Profit & Net Profit). Otherwise, 2013 shows bettered results. 1 Reversal of previously booked revenues related to two large exceptional sale transactions, amounting to EGP 242 million. 8 2 A one-off, non- cash, impairment charge on SODIC’s Syrian investment has taken place with an amount of EGP 478 million.

Eastown Update A mixed- use development poised to be New Cairo’s destination of choice Project Status Master plan  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 1 Retail & commercial plots are currently in master-planning phase. We will update market once finalised. 9

Westown Update Bustling downtown of SODIC West Project Status Master plan  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 1 st of March 1 As at 5 th of March, 2014 (i.e: taking into account phase X launch on some 70k sqm of gross land area) 10

SODIC Strategy 11

Vision A trusted and widely respected platform with untapped potential 1. Continued timely execution 1. Continued timely Maintain and accelerate construction on contracted units to ensure execution collecting c.EGP 4 billion of outstanding receivables and cement SODIC’s reputation as a delivery oriented developer. Maintain balance 2. Replenish land 2. Replenish land bank sheet potency 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 5. Reach platform 4. Penetrate Middle Income Market develop market capacity relevant products After having achieved a balanced mid- income formula, one of SODIC’s priority’s is to find suitable land to start such project 4. Penetrate the middle income market 5. Reach Platform Capacity SODIC’s 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 6. Maintain balance sheet potency SODIC will continue to diversify its development portfolio across multiple segments (residential, commercial & retail) and classes Maintain SODIC’s strong balance sheet with clear guidelines on unit (high, upper-mid & mid-income) to optimise value in addition to delivery, construction, cash collection, new sales and debt management. creating recurring revenue stream from leasable assets 12