Private and Confidential: For personal use only and not for distribution or copying
February 2018
February 2018 0 Private and Confidential: For personal use only and - - PowerPoint PPT Presentation
February 2018 0 Private and Confidential: For personal use only and not for distribution or copying Disclaimer This presentation has been prepared by the Investor Relations, Corporate Finance and Management of Amer Group Holding Company S.A.E.
Private and Confidential: For personal use only and not for distribution or copying
February 2018
Private and Confidential: For personal use only and not for distribution or copying
1
This presentation has been prepared by the Investor Relations, Corporate Finance and Management of Amer Group Holding Company S.A.E. (the “Company”) solely for information purpose to Research Analysts / Institutional Investors. The presentation is confidential and does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to buy, subscribe or otherwise acquire, any securities of the Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. The presentation has been provided to you solely for your information and background and is subject to amendment. The presentation contains forward looking, confidential and important information, data, figures, pictures about the company; and such information is owned by the
disseminated, directly or indirectly, to any other person or published in whole or in part for any purpose without the prior written consent of Amer Group Investor Relations Department, Amer Group Holding. Some of the information contained in this document is still in draft form and has not been legally verified and will only be finalized at the time of Admission and thus may be abridged or incomplete. The information used herein is based on sources that the Company believes to be reliable and accurate. However, no representation or warranty, express, assumed or implied, is made by the Company as to the fairness, accuracy, reasonableness or completeness of the information contained herein and no reliance should be placed on it. Neither the Company, their respective advisers, the existing shareholders of the Company, connected persons of the Company or any other person accepts any liability or responsibility for any loss howsoever arising, directly or indirectly, from the presentation or its contents. The presentation and any materials distributed in connection with the presentation may include forward-looking statements. Forward- looking statements may be indicated by words such as “may,” “will,” “would,” “should,” “expect,” “intend,” “estimate,” “anticipate, “believe” and similar expressions. These forward-looking statements are statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, including, without limitation, the risks and uncertainties to be set forth in the Prospectus, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that its 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 the presentation. In addition, even if the Company's results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in the presentation, those results or developments may not be indicative of results or developments in future periods. The Company does not undertake any obligation to review, update
arise after the date of the presentation. This document and any materials distributed in connection with this document are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. In Egypt, unauthorized dissemination of the information contained herein to the public in whatever form is prohibited and constitutes a violation under Egyptian law.
Disclaimer
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Overview: Amer Group Story
At Start of Construction Post Construction
Marina” and delivering the first phase in
6 months and delivering the entire project in a
the momentum, Amer Group initiated “Golf Porto Marina” in 2006, delivering the golf course after only 6 months, leading to the full delivery of the project in
Amer Group has conquered the Red Sea mountains, “Porto Sokhna”, the project was completed in 2 years with an all rounded destination where a family would simply never have to leave.
In 6 months In 18 months In 2 years
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Overview: Amer Group Story (Cont’d)
stronger than any of its rivals and Amer Group was the pioneer in bringing the ultimate family destinations bringing the market world class restaurants chains, Hotels and Hotel serviced apartments, malls to accommodate every need of an Egyptian family
success didn’t stop at that, and soon after more projects were stretched on millions of square feet, with “Porto Residence”, “Porto South Beach”, “Porto Matrouh”, “Porto Sharm”, “Porto Cairo” , “Porto New Cairo”, “Porto October”, “Porto Dead Sea” and list keeps going on to reach 15 Porto destinations, till it is fair to say that the name “Porto” will be forever engraved in the minds of Egyptian families and is now a synonym for “Vacation”
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Overview: Amer Group Spin-off
Amer Group has proceeded
with the Spin-Off operation on October 22, 2015 in order to put emphasis on the real estate developing segment that showed strong performance and great success
Porto Group’s strong
performance enabled it to be a standalone public company that is traded on the Egyptian Stock Exchange and that is exposed to a fair comparison with its real estate peers. Amer Group strongly believes that the Spin- Off will pave the way to new business activities in both Amer and Porto groups
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A Leading Landloard & Master Developer…
Amer in Brief Land Bank Profile Key Facts Backlog: EGP 2.0 Bn Restated Total Assets: EGP 5.66 Bn. Debt-to-Equity: 0.19x Land Bank; 5.5 Mn. Sqm Total Debt: EGP 348 Mn. Ownership Structure Average Daily Traded Volume (mn)
57.2 31.0 28.0 20.3 17.4 13.9 9.3 8.7 7.7 6.1 OTMT PORTO AMER CCAP PHDC GTHE EMFD AIND EGTS TMGH
23% 85% 47% 0% 77% 15% 53% 100% Marina Sokhna Matrouh Heliopolis Developed Undeveloped Marina Developed: 6,579 Units Undeveloped: 22,768 Units Sokhna Developed: 7,480 Units Undeveloped: 1,320 Units Matrouh Developed: 1,476 Units Undeveloped: 1,682 Units Heliopolis Developed: 0 Units Undeveloped: 1,322 Units
Total Developed: 39% Total Undeveloped: 61%
Restated Pre-tax ROA: 4.1%
mixed-use, family-oriented first- and second-home communities
retail shops, hotels, restaurants and entertainment venues in one convenient location.
representing 200 ordinary shares of Amer Group) have been admitted to the London Stock Exchange’s admission to trading only (ATT Only) platform. The program accommodates the conversion of up to 33%
GDRs.
Amer’s stock is one of the most liquid stocks on the EGX
SOL GLOBAL HOLDING LIMITED, 33.34 AMER WAKF LTD, 9.98 Lantess Internatinal Limited , 9.83 Egyptian Wakf Limited , 1.85 Mohamed El- Amin Ragb , 6.43 The BNY Mellon (GDRs), 3.30 Fineby Estates Limited, 0.21 free floting , 35.06Private and Confidential: For personal use only and not for distribution or copying
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AMER Group’s operations are divided into three primary business segments: Property Investments, Vacation Ownership Club and the Restaurants division
…With a Diversified Yielding Asset Portfolio…
Property Investments Division Vacation Ownership Club (VOC) Restaurants Division
8 Outlets 2 Outlets
1 outlet
16 Outlets 4 Outlets 8 Outlets 3 Outlets 23,440
Members in VOC
2,067
Number of Units
EGP 987 mn
Total Cost of Units
EGP 1.67 bn
Memberships Sold
Amer Group Revenue Profile
2 1 3 5.5 mn Sqm
Land Bank
52%
Occupancy for Malls
1,408
Keys
60%
Residential
2%
Retail
4%
Hospitality
EGP 1.9 bn
Backlog
463
Tenants
11,682
Rental Apartments Property Investment 60% Restaurants 12% Hotels 4% Retail & Others 2% Porto Vacation 21%
Segment Contribution to FY-2017 Revenues
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…A Unique and Innovative Business Model…
Amer secured the first real estate asset backed securitization bond in Egypt in 2014
A Unique Innovative Business Model that is Easily Replicated
Residential Hospitality Retail
(US$ 28,000,000)Asset Backed Securitization Bond
December 2014 (US$ 37,000,000)Asset Backed Securitization Bond
June2016Vacation Clubs
6 Hotels
Amer currently has 6 hotels, with 744 current hotel rooms and 664 apartment Amer entered into a partnership with AccorHotels to manage 2 Amer Hotels in Sokhna Management of remaining Hotels is under negotiation
744 Rooms 664 Apartments
An underpenetrated and Cairo-centric retail market provides headroom for future developments to reap the benefits of Egypt’s demographic profile and presents the opportunity to exploit other major urban centers Two main Division: Malls and Restaurants Amer owns a diversified set of projects that spans Egypt’s key metropolitan areas as well as coastal areas This includes 2 mn sqm of undeveloped commercial land that the Company is looking to utilize in its development of its commercial sector It maintains a healthy backlog of EGP c.2bn and an inventory of EGP 779 mn
Covering All Real Estate Development Segment
1 2 3 4
Amer has a proven track record of executing and delivering its projects over two - three years from the time of booking
Secure Land and Design Projects Revenue Sharing Agreement & Co- Development Construct Pilot Project
This is carried out through an efficient business model which involves: a) Securing small, inexpensive land plots in frontier locations that can be developed immediately; b) Concluding revenue-sharing agreement with Porto Group or any other Real Estate Developer; c) Commencing with a pilot project, which includes the hotel, mall and restaurant sections of the development, where potential customers can visit and get a feel of what to expect; d) Recognize revenues upon Developer’s recognition of revenues Establishing strong brand loyalty through vacation ownership club Strong cash flow generation reclaiming assets ater 30 years Currently operating Porto sokhna, Porto Marina, Porto Sharm and South beach club
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…And Clear Defined Strategy…
A Clear Strategy Going Forward with Measurable Goals
Land Acquisition Strategy
can instantly be monetized and serve as a cash generator
government- owned land by competitive bidding
purchased land
Cash Generation Strategy
the company with upfront cash Delivering the remaining backlog Enlarging Vacation Club program, finding properties in and out of Porto Distributing annual dividends when possible
Creating JV’s with developers to develop land purchased Increasing market share of malls by launching new locations Leveraging on Restaurant division to develop franchise agreements
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…Spearheaded by a Seasoned Management Team…
Top Executive Management Board of Directors Riad Refaat
Chief Financial OfficerNancy Sarwat
CEO Vacation Ownership ClubDalia El Kordy
CEO RestaurantsMansour Amer
Founder / Chairman & CEOOmar Amer
Board MemberSalah Amer
CEO & Board MemberMansour AlTarzi
Board MemberHany Tawfik
Board MemberMohamed El-Amin
Board MemberSherif El-Helw
Board MemberMansour Amer
Founder / Chairman & CEOSalah Amer
CEO Real Estate, Hospitality & MallsPrivate and Confidential: For personal use only and not for distribution or copying
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…Leading to a Robust Financial Performance…
Net Revenues (EGP mn) Gross Profit (EGP mn) Net Profit (EGP mn) Leverage Profile (EGP mn) Land Liabilities (EGP mn) Key Highlights
Million, 12% YoY decrease compared to EGP 2,444 Million in FY-2016.
Gross Profit Margin of 36.5%.
with Operating Profit Margin of 12%.
37.4 Million in December 31, 2016 to EGP 93 Million in December 31, 2017
2017 vs. 0.24x in December 31, 2016 In 2015, Amer Group acquired Heliopolis land which resulted in the spike in land liabilities
1,766.5 1,846.5 2,443.7 2,443.7 1,111.8 1,179.5 1,734.1 1,368.4 2014 2015 2016 2017
Revenues & Cost of revenue
Revenues (MEGP) Cost of Revenue (MEGP) 654.7 667.0 709.6 786.1 37% 36% 29% 37% 0% 10% 20% 30% 40% .0 200.0 400.0 600.0 800.0 1,000.0 2014 2015 2016 2017
Gross Profit & GPM
Gross Profit (MEGP) Gross Profit Margin 213.0 167.9 184.5 93.0 12% 9% 8% 4% 0% 2% 4% 6% 8% 10% 12% 14% .0 50.0 100.0 150.0 200.0 250.0 2014 2015 2016 2017
Net Profit & NPM
Net Profit (MEGP) Net Profit Margin 36.2 396.3 37.4 93.0 2014 2015 2016 2017
Land Liabilities (MEGP)
125.0 185.0 439.3 348.2 10% 13% 24% 19% 0% 5% 10% 15% 20% 25% 30% .0 100.0 200.0 300.0 400.0 500.0 2014 2015 2016 2017
Total Debt & Debt-to-Equity
Total Debt (MEGP) Debt-to-Equity Ratio
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2.2% 1.2% Egypt World…Underpinned by Favourable Demographic Environment
Large, Young, and Rapidly- Growing Target Market Diversified GDP driving Positive Growth Outlook
Manufacturing, 17% Wholesale and Retail, 14% Agriculture, 12% General Gov't, 10% Real Estate, 10% Extractive, 8% Other Social Services, 5% Construction, 5% Transporation, 5% Other, 13%Largest population in MENA region
92 40 34 32 11 9 8 6 4 4 2 1 0-14 years, 33% 15-24 years, 19% 25-54 years, 37% 55-64 years, 6% 65 years and over, 4% 2015 Population (mn) Demographic Profile(1)Young and fast-growing population Diverse economy, able to withstand periods of instability… …Supporting favorable growth outlook
Nominal GDP CAGR ‘16-’19 Nominal GDP FY16 Population Growth ‘10-’15 CAGRMore than 50% of Population under 25 years
19.3% 9.2% 9.1% 9.0% 7.3% 7.2% 6.9% 6.8% 6.2% 5.6% 5.4% 4.0% Egypt Algeria Kuwait Qatar United Arab Emirates Oman Tunisia Saudi Arabia Jordan Morocco Bahrain LebanonPrivate and Confidential: For personal use only and not for distribution or copying
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Operational & Financial Metrics
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Hotels
EGP 77.2 mn Malls
EGP 50.1 mn
Land
undeveloped land Inventory
EGP779 mn
Property Investment Metrics
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Land Profile
Land Bank Developed % Undeveloped% Total Sqm Matrouh 47% 53% 339 K sqm Marina 23% 77% 1.9 mn sqm Heliopolis 0% 100% 27 K sqm Sokhna 85% 15% 2.6 mn sqm Sharm EL Sheikh 62% 38% 650 K sqm Total 39% 61% 5.5 mn sqm
1 2 3 4
1 2 3 4
Splits of B.U.A. by Type Land Bank Breakdown
Residential, 90% Commercial, 5% Other, 4%
Split by Geographic Location
5 5
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Key Facts & Figures
Total BUA (sqm) 700,093 Total Land (sqm) 1,906,607 Total Sold Units 7,279 Inventory Units 180 Existing Backlog (EGP mn) 483,474,584 Total Sales (EGP mn) 5,356,578,510
Porto Marina & Golf Marina
Revenue Sharing Agreement
Total Units 22,360 Revenue Sharing Agreement 20% Developing Phasing 3 Years
Selling Price (EGP) / Meter
10,575 10,937 11,144 2015 2016 2017
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Porto Sokhna & Golf Sokhna
Key Facts & Figures
Total BUA (sqm) 750,436 Total Land (sqm) 2,574,291 Total Sold Units 6,724 Inventory Units 118 Existing Backlog (EGP) 580,423,473 Total Sales (EGP) 4,666,214,402
Revenue Sharing Agreement (Porto Gr. & Heaven Hills)
Total Units 3,371 Revenue Sharing Agreement 20% up to 30% Developing Phasing 3 Years
Selling Price (EGP) / Meter
10,100 10,819 14,000 2015 2016 2017
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Porto Matrouh
Key Facts & Figures
Total BUA (sqm) 154,794 Total Land (sqm) 329,875 Total Sold Units 1,284 Inventory Units 18 Existing Backlog (EGP) 56,757,117 Total Sales (EGP) 636,353,273
Revenue Sharing Agreement
Total Units 1,017 Revenue Sharing Agreement 20% Developing Phasing 3 Years
Selling Price (EGP) / Meter
10,750 10,948 11,000 2015 2016 2017
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Porto Heliopolis
Key Facts & Figures
Total BUA (m2) 175,830 Residential BUA(m2) 133K Land Area (m2) 26,957 Commercial BUA (m2) 23K Others BUA (m2) 20K
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Porto Sharm
Key Facts & Figures
Total BUA (sqm) 131,837 Total Land (sqm) 648,392 Total Sold Units 2,136 Inventory Units 195 Existing Backlog (EGP) 84,334,596 Total Sales (EGP) 889,738,402
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Inventory
Inventory Highlights
Breakdown by Location Key Figures EGP 779 mn
Inventory to be recognized in 24 months
EGP 1.9 Bn
Backlog to be recognized in 18 months 22% 3% 2% 6% 9% 23% 5% 29%
GMARINA PMARINA PNORAMIC Meeting Point PSBS PSOKHNA PMATROUH PSHARM
Total Inventory: EGP 779 mn
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Collecting Royalty Fee of 1% yearly of contracted Porto Development
Royalty Fee
Total Amount collected since spin-off
=EGP38 mn out of expected EGP2.6 bn
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Operational & Financial Metrics
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Hospitality Segment
Partnership Agreement with Accor Key Operational Metrics Overall Capacity Room rate per night (EGP) Hotels segment in Figures
6
Hotels
744
Current Room Key
664
Apartments Keys
11,682
Contracted Rental Apartments 223,569 221,756 266,361 249,874
2014 2015 2016 2017
686 768 877
2015 2016 2017
France
3,700 hotels in 94 countries
from budget and economy lodgings to five-star hotels
was concluded between Amer Group and AccorHotels to manage 2 Amer Group’s Hotels in Sokhna Projects
remaining Hotels is under negotiation
profit-sharing model where AMER group will retain 90%
Accor Hotels will earn the remaining 10% supplemented by 1.9% of total revenues as management fees
performance benchmark for
the 3rd year of management
Amer Group, 90% Accor Hotels, 10%
Net Operating Profit Split
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Hospitality Segment
*Porto Sokhna
Capacity Utilization Established In Location El Ein el Sokhna 147 62% 2007
941
*El Jabal
Capacity Utilization Established In Location El Ein el Sokhna 32 42% 2015
564
Porto South Beach
Capacity Utilization Established In Location El Ein el Sokhna 84 45% 2015
451 Capacity Utilization Established In Location
*Porto Marina
North Coast 320 50% 2005 1,222
Golf Porto Marina
Capacity Utilization Established In Location North Coast 66 46% 2012
1,098
Porto Matrouh
Capacity Utilization Established In Location Marsa Matrouh 95 35% 2014
781 Porto Marina, Porto Sokhna and El Jabal are managed by Accor Hotels
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Operational & Financial Metrics
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27 49.4 55.8 50.1 15.8 21.2 37.7 2015 2016 2017
Revenue Cost of revenue
Commercial Segment
Malls Overview
87 k sqm
Operational GLA of which, 100% is owned Key Operational Metrics Revenues & Cost of Revenues (EGP mn) Porto Marina Golf Marina Meeting Point Sky Mega Water Front Porto Matrouh Indoor
Gross Leasable Area (Sqm) 11,394 7,286 7,872 3,571 9,979 1,870 3107 Rental (Sqm) 9,589 5,437 291 1,444 8,521 1,424 521 Average Occupancy Rate 84% 75% 4% 40% 85% 76% 17%
Outdoor
Gross Leasable Area (Sqm) 6,770 9,034 2,119 684 3,367 4,913 2,195 Rental Sqm) 4,283 4,850 262 477 2,926 980 783 Average Occupancy Rate 63% 54% 12% 70% 87% 20% 36%
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Operational & Financial Metrics
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Increasing Brand Value
Maximum Utilization
Adding new chains Increasing Chilis Value in Egypt
Restaurants Vision
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Operational & Financial Metrics
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Vacation Ownership Club
23,440
Members in Vacation Ownership Club
EGP 1.67 bn
Total membership sold to date
2,067
Total number of units
EGP987 Million
Total cost of units
Strategy and Key Metrics Membership Evolution Existing Clubs
14,951 16,842 19,754 23,440
2014 2015 2016 2017
Acquire units Establish club Sell memberships Revenues from
services Reclaim asset after 30 years (1,652 units)
VOC Target: is to sell 1000 units with 12,000 Memberships within the next 3 years Location
Porto Sharm Porto Sokhna South Beach Porto Marina Muti Destinati
Capacity (Units)
166 387 1,097 234 183
Memberships
1,708 4,488 12,726 2,675 1,843
Cumulative Cashflow (EGP mn)
539 762 945 1,125
2014 2015 2016 2017
in the Middle East & Africa and to create genuine Vacation Opportunities that can be passed on from one Generation to the next.
Service Experiences, Vacation Ownership club will have a portfolio of products to meet all client needs and demands in today’s marketplace.
Target 50,000 Members with expanding Sales Channels to 15, plus to include Governmental Bodies, International Market, GCC + EU + Corporate Market
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Valuation Buildup vs. Current Market Cap
1,33 2 Market Cap
Current Market cap is currently at a discount of 83% to its implied market value
EGP 485 6,234 2,600 1,128 740 737 318 226 Net Cash Land Malls Inventory Hotels Vacation Ownership Club Restaurants Total Millions
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Amer Group Balance Sheet
Item (EGP) 31-DEC-17 31-DEC-16 Non-current Assets Fixed Assets703,909,029 854,706,543
Projects Under Construction57,530,071 104,838,887
Investment Property Assets219,245,929 293,087,888
Intangible Assets141,313 141,313
Investments in Associates5,001,000 34,550,752
Restricted Deposits due to Units Owners671,204,374 653,495,849
Total Non-current Assets1,657,031,716 1,945,822,232
Current Assets Development Properties2,306,887,273 2,446,179,568
Inventories26,557,726 21,879,139
Accounts & Notes Receivables536,118,172 269,459,045
Prepayments & Other Receivables379,289,998 314,694,650
Bank Balances & Cash755,384,589 893,057,958
Total Current Assets4,004,237,758 3,945,270,360
Total Assets5,661,269,474 5,891,092,592
Current Liabilities Provisions6,002,379 3,045,926
Bank Overdrafts42,323,457 38,410,342
Land Purchase Liability42,299,022 37,410,342
Advances from Customers1,373,857,173 1,620,510,942
Accounts & Notes Payable441,002,787 478,758,431
Term Loans46,945,417 68,328,884
Income Tax Payable23,648,410 23,801,418
Accrued Expenses & Other Payables858,139,533 791,393,469
Total Current Liabilities2,834,218,178 3,061,615,432
Working Capital1,170,019,580 883,654,928
Total Invested Funds2,827,051,296 2,829,477,160
Financed as Follows: Equity Share Capital1,003,099,822 911,908,929
Translation of Foreign Entity238,983,361 246,542,676
Legal Reserve50,733,848 50,733,848
General Reserve12,055,859 12,055,859
Other Reserves7,976,113 7,976,113
Retained Earnings483,561,791 551,676,535
Minority Interest7,122,856 20,077,961
Total Equity1,803,533,650 1,800,971,921
Non-current Liabilities Term Loans258,950,260 332,519,795
Land Purchase Liability50,655,446
671,204,374 653,495,849
Notes Payable42,707,566 40,846,595
Total Non-current Liabilities1,023,517,646 1,028,505,239
Total Equity & Long Term Liabilities2,827,051,296 2,829,477,160
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Amer Group Income Statement
Amer Group Income Statement for FY-2017
Item (EGP) FY-2017 FY-2016 Change Revenue
2,154,773,832 2,443,731,220
Cost of Revenue
(1,368,415,694) (1,734,098,263)
Gross Profit
786,358,138 709,632,957 11%
Selling and Marketing Exp
(225,438,453) (126,672,398) 78%
General and Admin Exp
(268,127,839) (265,122,112) 1%
Other Income
161,387,987 108,109,659 49%
Other Operating Exp
(196,248,272) (124,037,065) 58.2%
Operating Profit
257,931,561 301,911,041
Finance Cost
(203,816,579) (115,084,633) 77%
FX Gain (Loss)
64,305,553 47,125,140 36%
Profit for the Year Before Tax
118,420,535 233,951,548
Income Tax
(25,443,042) (49,498,295)
Profit for the Year
92,977,493 184,453,253