Investor Presentation December 2014 All figures as at end of 30 - - PowerPoint PPT Presentation

Investor Presentation

December 2014

All figures as at end of 30 September 2014, unless otherwise stated

Outline

• 1. Introduction
• A. Why Egypt
• B. Real Estate Sector
• D. 2014 A Year in Review
• 2. SODIC Backdrop
• A. SODIC Quick Overview
• B. Clean and Growing Land Bank
• C. Looking Forward: Our Strategy
• D. Experienced Management Team
• 5. Annex
• A. Projects Overview
• 4. Operational & Financial Performance
• A. Sales Performance & Unrecognized Revenues
• B. Launched Projects’ Profitability
• C. Delivery and Execution
• D. 9M 2014 Vs. 9M 2013
• C. SODIC’s Unique Value Proposition
• B. Awards
• B. Egypt Macroeconomic & Real Estate Sector Overview

Introduction

Why Egypt

³ Source: KPMG report “AFRICA’S CONSUMER STORY”

Population of

90 Mn¹

500,000

Units…

Tangible Improvement in Political & Economic Backdrop

The largest in the region 60% below the age of 30 Growing at a rate of 2% Sizable annual demand for housing In addition to housing shortage of 1.5m units Retail sales of EGP

868 Bn²

Estimated to reach EGP 1,400 Bn in 2018² Currently formal retail accounts for only around 2% of total retail trade³ Government achieving significant strides with reforms FDI picking up targeting US$6bn in 2015, with spill over effect on commercial property market Revival of tourism activity +71% in 3Q14 Banks increased appetite for lending Government reopens land supply, explores different models including profit sharing & in-kind payments

1 Source: CAPMAS, IMF, US Census, Central Banks of respective countries and Industry reports; Data as at 31/12/2013 ²Source: EIU

3.5% GDP

growth in 2015 With a GDP of US$ 280Bn Egypt remains one of the largest markets in the region Re-embarking on the growth trajectory with GDP growth set to reach 4% growth in 2017

4

• Favorable demographics; young &

growing population

• Annual demand for housing estimated at

500,000 units

• Strong performance of gated communities

vis-à-vis haphazard developments

• Significant price increases backed by real

demand as well as inflation and devaluation fears

• Gross sales for key developers well above

pre-revolution levels

Residential

Gross Pre-Sales of Key Developers¹

EGP Mn

¹ Key developers include SODIC, Palm Hills and Talaat Mostafa

Strong performance despite downturn, backed by fundamentals

Source: JLL

• Against this improving economic

backdrop, the country is witnessing increased confidence in the real estate market.

• Demand remains relatively active across

all segments and developers are moving forward with both new and re-launched projects.

• Rental growth is expected to accelerate

across all real estate asset classes giving way for further property appreciation

Strong fundamentals and an

• pportune

entry point

Rents Falling Rents Bottoming Out Rental Growth Accelerating Rental Growth Slowing

Office Retail Residential

Q3 2014

JLL: Cairo Prime Rental Clock

Residential and beyond

Real Estate Sector

5

Commercial Retail

• Increased interest from international

tenants with the influx of FDI

• Improved bank appetite to lend will help

expedite development as well as support property purchases by local companies that prefer to own rather than lease office space

• Currently formal retail accounts for only

around 2% of total retail trade.

• Cairo organized retail space per capita

estimated at 0.06 well below regional averages

• Secondary cities virtually untapped

Fragmented market with huge potential for organized retail space Market to rebound given the improved

• perating

environment

Hospitality

Tourism set to revive on the back of political stability

Residential and beyond

• Attractive investment opportunities in undeveloped areas such as the West

coast of the Mediterranean

• Tourism activity picking up with tourist nights increasing by 71.1% y-o-y

in 3Q14

Foreign Direct Investments

US$ Mn

Source: CBE, analyst estimates

Retail Sales

EGP Bn

Source: EIU

Real Estate Sector

6

7

Significant Brand Equity

• Strong demand for SODIC products (93%
• f launched inventory sold)
• Pricing at a premium to the market
• Reputation of timely deliveries
• One of the first to settle disputes achieving

a clean land bank in 2014

1

Track Record & Management

• Full cycle experience: Successful

navigation through the downturn

• Strong operational performance &

resilient financial results

• 11 successfully launched projects
• Management continuity since 2006

2

• Significant in house capacity with a team
• f 476 professionals
• Ability to acquire and execute sizable plots

(301 plot launched 6 months from award)

• Capacity to raise the required funding to

secure timely execution

• Strong relationship with suppliers

3

Solid Growth Strategy

• Execute existing pipeline: EGP

17bn over 5 years

• Expand land bank: acquisitions

&/or asset light structures

• Diversify locations: coastal cities

and secondary cities

• Build up recurring income

portfolio

Scalable Operation

SODIC’s Unique Value Proposition

2014 A Year in Review

8

Eastown settlement, 301 award & new launches on Eastown Residences

2Q14

• Eastown settlement of EGP 900 million payable
• ver 7 years
• Ripplewood acquires 9.4% stake
• Eastown Residences (ETR) Phase V launch

worth EGP 246 million selling out

• 301 Acre award letter received
• ETR Phase VI launch worth EGP 359 million

selling out

• EGX approves capital increase subject to EGM

approval

Strong start to the year’s sales, Solidaire settlement & drawdown

• n syndicated loan
• 3 mega villas sold in Allegria worth EGP 52

million; 27 offices sold in The Polygon worth EGP 79 million

• Amicable Settlement with Solidere International

(SI) unlocking 250,000 sqm of land in the heart of Westown

• Westown Residences Phase X launch worth EGP

531 million selling out

• SODIC West Syndication Drawdown: Tranche A

worth EGP 330 million, refinancing 3 existing facilities

1Q14

Shoring up our finances, both debt & equity, ETR Launch fully sold

• Signature of EGP 950 million loan with AAIB

(301 Acre); EGP 255 million drawdown in less than 2 weeks

• EGM approves EGP 1 billion capital increase to

existing shareholders

• Signature of EGP 300 million loan with CIB (SI

Blocks)

• ETR Phase VII launch worth EGP 353 million

selling out

3Q14

Capital increase 99.3% subscribed for, new launches on Westown & SODIC East

• Successful closure of circa EGP 1bn capital

increase

• New launches on Westown Residences

Courtyard EGP 250 million

• New Launches on SODIC East

4Q14

SODIC Backdrop

Brief Overview

Egypt’s trusted developer, emerging stronger post revolution

1 Since Inception, excluding Beverly Hills including commercial and retail

² As of 30th September 2014

SODIC Quick Overview

Key Highlights

Of Contracted Sales 1,

• ver 4,800 units

EGP 11.4 bn,

Of unrecognized revenue²

EGP 5.1 bn,

Of sellable inventory²

EGP 730 mn,

Of receivables backlog²

EGP 4 bn,

Of non launched & raw land bank²

3.6 mn sqm

Collection rate for receivables²

Over 96%

Delivered units 1

Over 1,800 EGP 17.0 bn

Expected Sales from Non Launched and Raw Land Bank

10

• Building on a history of almost two decades of successful operations in Egypt, SODIC is one of the country’s

leading real estate development companies, bringing to the market award-winning large scale developments to meet Egypt’s ever growing need for high quality housing, commercial and retail spaces.

• Headquartered in Cairo and listed on the Egyptian stock exchange, SODIC is one of the few non-family
• wned companies traded on the EGX, with a strong corporate governance framework
• Having invested over 1.4 billion dollars in developing eleven diverse real estate projects, SODIC boasts a

portfolio that has contributed over 3 million square metres of built up area to Cairo’s new urban communities³.

³ Including Beverly hills

Impressive Growth Performance Despite the Downturn

Record gross contracted sales set to exceed 2013

SODIC has grown by every metric since 2011

EGP Mn

Cancellations at an all time low

Pct of Gross Sales

Continuing to Deliver on Schedule

Units Delivered

Receivables doubled while delinquency dropped to a record 4%

EGP Mn

Significant addition to land bank in 2014

Mn sqm

58% 42% Existing Newly acquired

Market Cap more than doubled in 2014

EGP Bn

4.8 Bn 2 Bn

2014 2013

* As of 30 Sept 2014

3.6Mn sqm

1,724 2,452 3,604 4,076 2011a 2012a 2013a 2014a*

11

259 424 684 342 316 2011a2012a2013a 9M13 9M14 99% 11% 9% 9% 6% 2011a 2012a 2013a 9M13 9M14 741 1,819 2,730 2,160 2,155 2011a 2012a 2013a 9M13 9M14

Clean & Growing Land Bank

12

With 3.6Mn sqm of unutilized land SODIC is developing around 760,000 sqm annually, bringing to the market EGP17Bn of inventory over the coming 5 years Significant presence in both East and West Cairo

Unlaunched & Raw Land Unlaunched & Raw Land Land Utilization

Clean & Growing Land Bank

13

9.7m sqm¹ 3.6m sqm 3.6m sqm

Land bank sits free of any legal disputes

Total Land Bank 2.2mn sqm Total Land Bank 7.5mn sqm

• 2. Unlaunched Projects

Land Area Westown Residential 359k sqm Westown Retail/Commercial 91k sqm The Strip (Phase 2) 82k sqm The Polygon 9k sqm Total Non Launched 519k sqm

• 3. Raw Land

Al Yosr 1.26mn sqm Total Raw Land 1.26mn sqm

• 1. Launched Projects

Land Area Allegria 2.4m sqm Forty West 56k sqm Westown Residence 584k sqm The Polygon 44k sqm The Strip 105k sqm Westown Hub 50k sqm CASA 294k sqm Beverly Hills 1.9m sqm Other2 260k sqm Total Launched Projects 5.7mn sqm

• 1. Launched Projects

Land Area Eastown Residential 322k sqm Kattameya Plaza 126k sqm Total Launched Projects 448k sqm

• 2. Unlaunched Projects

Eastown Residential 377k sqm Eastown Retail 159k sqm Villette [301 Acre] Residential 1.0mn sqm Villette [301 Acre] Retail/Comm. 229k sqm Total Non Launched Projects 1.79mn sqm

West Cairo East Cairo

1 Excluding Syria Land Bank (Fully Impaired) 2 Includes Designopolis, BISC and Infrastructure assets

Looking Ahead: Our Strategy

14

• Execution of EGP 17Bn worth of unlaunched inventory
• Delivering some 8,000 residential units over the coming 6 years
• Collect EGP 4 bn of receivables of existing sales while maintaining a collection ratio

above 95%

Execution of existing pipeline Expand land bank Build up recurring income Other long term upside potential

• Locations of interest include:

− New urban communities (East & West of Cairo) − Secondary homes on coastal cities (significant cross selling opportunity & mitigating our current seasonality of primary homes sales) − Secondary cities offer untapped opportunities in Egypt

• Exploring JV’s, co-development and other asset light structures as a means to expand
• perations with a less capital intensive approach
• Gradual build up of our recurring income portfolio, targeting 20% of our revenues
• Adding circa 120,000 sqm of GLA to our currently launched lease portfolio aiming to

reach circa 165,000 sqm of GLA

• Leveraging our existing property and facility management company EDARA and further

developing its expertise

• Monetize Syria land (completely written off the balance sheet)
• Develop El Yosr (1.3M sqm of raw land in West Cairo)

Executive Management Team

15

• Joined SODIC in 2009
• Previous experience includes

senior roles at Nakheel, Hill International Project Management Firm, Turner International and Bechtel Inc.

• MBA from Golden Gate University,

B.Sc. from UC Berkeley

Managing Director

• Mr. Ahmed Badrawi
• Appointed MD in 2013
• Joined SODIC in 2006
• Previously founder of InfoFort

Egypt’s first records management business, launched the Daily Star Egypt

• Law degree from University of

London

• Joined SODIC in 2013
• Previously Investment Banking

Division Director at Beltone Financial having executed many of the landmark real estate transactions in Egypt

• Bsc Business Administration from

the AUC and is a CFA Charter holder

• Joined SODIC in 2007
• Previous experience includes 7

years at the consumer relations department in British American Tobacco as well as in the marketing department of McDonalds

• Bsc from the American University

in Cairo

• Joined SODIC in 2010
• Previously Managing Partner at

Delta Enterprises, USA. Co-founder and CEO of Sarmady Communications

• Masters from Georgia Institute of

Technology, undergraduate degree from Carnigie Mellon University

Chief Technical Officer

• Eng. Shehab el Orabi

Chief Financial Officer

• Mr. Omar El Hamawy

Executive Director Of Operations

• Mr. Ashraf Farid
• Joined SODIC in 2007
• Previously held managerial

positions at Al-Futtaim Group & Allianz Group

• Bsc in Economics and Financial

Management from Cairo University, Associate of the Chartered Insurance Institute in London (ACII) - (UK)

Chief Commercial Officer

• Mr. Ahmed Labib

Chief Projects Development Officer

• Mr. Basil Ramsy

Leadership continuity since the turnaround in 2006

Operational & Financial Performance

16

FY 2014 is expected to exceed record breaking FY 2013

2013

Some EGP 10.4 billion of net sales since 2008 of which 55% yet to be recognized

Annual Net Sales (EGP Million)

17

1 Monthly Sales from January 2008 to Sept 2014. Unrecognized revenues accounting for EGP 5.7 billion as at 30th of September 2014. 2 Actual Contracted Net Sales as at 30th of September 2014.

2008 2009 2010 2011 2012

Regular Operating Environment

Global Financial Recession

Regular Operating Environment

Jan 25th Revolution

Regular Operating Environment

June 30th Revolution

9M14

Regular Operating Environment Cumulative Net Sales (EGP mn) Net Sales (EGP mn)

2

1,884 849 1,839 6 1,619 2,478 2,019

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

• Launch of:
• WTR phases 7, 8

& 9

• Eastown

Residences “ETR” phases 1 to 4 account to 50%

• f total sales
• Allegria Phase 1&2

launch

• Some 650 Allegria

units contracted

• 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

• 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:
• Allegria phase 5
• WTR Phases 2 to

6

• WTR achieved

sales of some EGP 1 billion

• Cumulative Sales:

EGP 6.2 Billion

• Launch of:
• WTR phases 10
• ETR phases 5-7
• WT Courtyard

2

Sales Performance & Unrecognized Revenues1

6,019 6,437 6,720 6,826 8,338 8,855 10,000 Phase I Phase II Phase III Phase IV Phase V Phase VI Phase VII

Project Profitability

Launched Projects’ Profitability GPM of 34% on some EGP 10 billion of unit sales

Pricing Ability

Sellable Inventory Profitability 1 Percentage Sold (Value)

18

1 All figures in EGP unless otherwise stated 2 Unsold Allegria inventory amounts to EGP 188 mln (16 units),

Total Inventory Development Cost3 Sold Inventory Projects’ GPM 4 Project (EGP millions) Allegria2 Polygon Forty West KP WTR (I-X) Total 4,392 2,731 4,202 38% 712 659 539 31% 589 512 394 33% 641 426 624 33% 2,233 1,304 2,220 42%

10,747 34%

Sold Unsold 96% 4% 76% 67% 33% 99%

1 %

93% 7% 24% ETR (I-VII) 2,179 1,490 2,043 32% 94%

10,023

6%

7,097

Eastown Prices (EGP/sqm)

May ‘13 May ‘13 June ‘13

• Sept. ‘13

May ‘14 June ‘14 Launch Date

66% increase

Sept ‘14

97%

3%

3 Includes the investment cost of leasable assets 4 Expected gross profit margin, excluding NPV adjustments

Delivery and Execution1

SODIC delivered some 316 units during 9M 2014 across 8 different projects, namely: Allegria, Kattameya Plaza, Forty West, The Polygon, The Strip, Casa ,WT Hub & WTR

Project

Number of Units Delivered Units % Delivered Investment Cost2 % Completion3 Delivery Start Date Delivery End Date

1 All figures as at 30th of Sept 2014. 2 Investment cost represents the expected construction and land costs. Figures are in EGP millions. 3 Percentage completion represents CAPEX paid, with the exception of Eastown and Allegria all projects land cost has been fully paid 4 Westown Residences Phase I shows an 96% development completion on a standalone basis. 5 CASA is a jointly owned project (80% Palm Hills subsidiary & 20% SODIC). SODIC owns 63 apartments

Over 4,900 units under development (36% delivered) with an investment cost of some EGP 7.4 billion

Delivery Execution

19

Allegria Kattameya Plaza Forty West WT Residences (I-X) The Polygon The Strip WT Hub

Total

1,255 1,094 87% 2010 2,731 90% 474 382 81% 2013 426 98% 133 55 41% 2012 512 90% 1,391 87 6% 2013 1,304 33%4 250 110 44% 2013 659 74% 84 24 29% 2012 241 76% 47 2 4% 2014 90 94%

4,983 1,801 36% From 2010 to 2017 EGP 7,453mn NA

2015 2015 2015 2017 2016 2015 2015

ET Residences (I-VII)

1, 286

• 2016

1,490 11% 2017

CASA5

63 46 73% 2013 NA 100% 2015

9M 2014 Vs 9M 2013

Building on strengths

Item

(in EGP mn unless otherwise stated)

9M 2014

20

9M 2013

Variance %

Gross Contracted Sales Net Contracted Sales

Net Contracted Sales From New Launches

Cash Collected CAPEX Number of Units Delivered (units) Value of Units Delivered Gross Profit Net Profit

2,156 2,019 2,159 1,965 0% 3%

Number of Units Sold (units)

901 1,099

• 18

1,348 1,285 5% 60% 546 628

• 13%

316 347

• 8%

903 672 34% 309 252 23% 110 80 38%

Debt Raised/Secured

2,150 343 526%

Cash at banks & on hand

1,034 456 127% 1,478 925

Annex

21

Launched Projects Summary¹

22

NA

1 As at 30 Sept 2014

Gross land area 2,428,283 126,000 53,105 56,012 943,254 699,405 187,801 50,090 Gross BUA 568,774 121,739 91,338 51,997 606,205 573,725 52,296 15,576 Entertainment retail complex Upper Middle Class Apartment Buildings Integrated mixed-use

• ffice park

High-end Apartments Various Types

• f Residential

Units Residential Units Retail stretch mall Residential Single Family Units Project description Launched as a pct of project gross land area Value sold as a pct of launched Delivery Execution

100% 100% 100% 82% 100% 62% 46% 56% 97% 96% 76% 94% 98% 67% 99% 78% 79% 46% 0% 45% 9% 56% 98% 90% 74% 11% 90% 33% 76% 94%

Project Overview

23

Project description SODIC’s flagship project, Allegria is an award winning residential development offering high end single family units surrounding an 18 hole Greg Norman golf course

1 Including land cost

All figures as of Sept 2014 in EGP mn unless otherwise stated

Launch date 2008 Receivables outstanding 840 Gross Land Area (sqm) 2,428,283 Development cost for launched¹ 2,731 Total BUA 568,774 Capex remaining for launched 10% Launched BUA 568,774 Delivery start 2010 Launched inventory value 4,392 Delivery end 2015 Sold inventory 4,204 Value of units delivered 3,314 Units launched 1,255 Number of units delivered 1,094

Project Overview

24

Project description Forty West is an exclusive development with a cutting-edge design by acclaimed Boston-based Machado and Silvetti

• Architect. It is the coming together of a vibrant community with spectacular fully-finished apartments, offices,

boutiques, world-class restaurants, open spaces and a luxurious hotel.

1 Including land cost

All figures as of Sept 2014 in EGP mn unless otherwise stated

Launch date 2009 Receivables outstanding 146 Gross Land Area (sqm) 56,012 Development cost for launched¹ 495 Total BUA 51,997 Capex remaining for launched 10% Launched BUA 51,997 Delivery start 2012 Launched inventory value 589 Delivery end 2015 Sold inventory 394 Value of units delivered 177 Units launched 133 Number of units delivered 55 Gross Leasable Area 9,732 Estimated Lease Income 14

Project Overview

25

Project description Westown’s first residential neighbourhood, offering townhouses, twin-houses, city villas, signature lofts, duplexes and

• apartments. The development brings together themed gardens, parks, and open green spaces, set in a secure, gated

community designed around the Pedestrian Green Spine.

1 Including land cost

All figures as of Sept 2014 in EGP mn unless otherwise stated

Launch date 2011 Receivables outstanding 1,356 Gross Land Area (sqm) 584,331 Development cost for launched¹ 1,304 Total BUA 344,663 Capex remaining for launched 67% Launched BUA 344,663 Delivery start 2014 Launched inventory value 2,233 Delivery end 2017 Sold inventory 2,220 Value of units delivered 196 Units launched 1,391 Number of units delivered 87

Project Overview

26

Project description The Polygon consists of nine ‘Class A’ office buildings designed by multiple-award-winning UK-based architects Wilkinson-Eyre. The Polygon offers over 70,000 sqm of state-of-the-art office space, designed to accommodate both smaller and large businesses.

1 Including land cost ²Launched areas only

All figures as of Sept 2014 in EGP mn unless otherwise stated

Launch date 2009 Receivables outstanding 308 Gross Land Area (sqm) 53,105 Development cost for launched¹ 639 Total BUA 91,338 Capex remaining for launched 26% Launched BUA 75,338 Delivery start 2013 Launched inventory value 712 Delivery end 2016 Sold inventory 539 Value of units delivered

• Units launched
• Number of units delivered
• Gross Leasable Area²

17,152 Estimated Lease Income² 23

Project Overview

27

Project description Designed by leading Egyptian architectural firm Hassan Abu Seda, the Hub consists of five multi-leveled buildings around one central piazza creates a truly unique retail space. Westown Hub is home to some of Cairo’s finest restaurants and cafés.

1 Including land cost

All figures as of Sept 2014 in EGP mn unless otherwise stated

Launch date 2012 Development cost for launched¹ 66 Gross Land Area (sqm) 50,090 Capex remaining for launched 6% Total BUA 15,576 Delivery start 2014 Launched BUA 15,576 Delivery end 2015 Gross Leasable Area² 13,240 Estimated Lease Income² 22

Project Overview

28

Project description With stores arranged side by side and linked by a walkway, The Strip offers mixed retail shops and personal services

• ver seven zones in a relaxed and contemporary environment.

1 Including land cost ²Launched areas only

All figures as of Sept 2014 in EGP mn unless otherwise stated

Launch date 2010 Receivables outstanding 143 Gross Land Area (sqm) 187,801 Development cost for launched¹ 241 Total BUA 52,296 Capex remaining for launched 24% Launched BUA 30,044 Delivery start 2012 Launched inventory value 338 Delivery end 2015 Sold inventory 332 Value of units delivered 187 Units launched 53 Number of units delivered 27 Gross Leasable Area² 6,621 Estimated Lease Income² 15

Project Overview

29

Project description Kattameya Plaza is comprised of 474 apartments, and is strategically located in the heart of New Cairo, five minutes away from Eastown and the American University in Cairo. Kattameya Plaza is designed and master-planned by ArchGroup - the distinguished firm that designed the Grosvenor House in Dubai, and landscaped by Evergreen.

1 Including land cost

All figures as of Sept 2014 in EGP mn unless otherwise stated

Launch date 2010 Receivables outstanding 255 Gross Land Area (sqm) 126,000 Development cost for launched¹ 438 Total BUA 123,733 Capex remaining for launched 2% Launched BUA 123,733 Delivery start 2012 Launched inventory value 641 Delivery end 2015 Sold inventory 624 Value of units delivered 485 Units launched 488 Number of units delivered 382

Project Overview

30

Project description Strategically located on Road 90, adjacent to the American University in Cairo and just a short drive from Cairo International Airport, Eastown will provide premium residential, retail and office space all set in a secure, gated community.

1 Including land cost ²Residential BUA only

All figures as of Sept 2014 in EGP mn unless otherwise stated

Launch date 2013 Receivables outstanding 1,356 Gross Land Area (sqm) 857,963 Development cost for launched¹ 1,490 Total BUA² 573,725 Capex remaining for launched 89% Launched BUA 279,432 Delivery start 2016 Launched inventory value 2,179 Delivery end 2017 Sold inventory 2,043 Value of units delivered

• Units launched

1,286 Number of units delivered

Awards

A globally recognised developer

31

EUROMONEY CITYSCAPE EUROMONEY MINISTRY OF TRADE & INDUSTRY

• 2013: Allegria - best residential project –

Built

• 2013: The Polygon - best commercial and

mixed use project – Future

• 2014: Best office business developer in

Egypt (Polygon)

• 2011: Best developer overall Egypt
• 2011: Best mixed use developer Mena
• 2011: Best residential developer Mena
• 2010: Enterprise Innovation Award for

registering all of its trademarks with the Internal Trade Development Authority, an affiliate of Ministry of Trade and Industry

BUSINESS TODAY EUROMONEY CNBC PROPERTY AWARDS EUROMONEY

• 2010: Best developer overall Egypt
• 2010: Best mixed use developer Mena
• 2011: Best company by BT100 rank

change at the BT100 Crystal Awards

• CNBC Arabian Property 2009: Allegria best

architecture

• 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

Egypt Macro Economic and Real Estate Sector Overview

32

8.1% 9.8% 10.8% 13.7% 12.0% 12.0% 10.4% June 10 June 11 June 12 June 13 June 14 June 15 June 16 12% 11% 9% 7% 10% 10% 8% June 10 June 11 June 12 June 13 June 14 June 15 June 16

33 The government has embarked on a number of schemes that aim to address economic issues These initiatives are expected to have positive effects on macro economic indicators

Recent Government Initiatives

Subsidy Reforms

In July 2014, the Egyptian government kicked off a much-awaited fiscal consolidation, aiming to bring the fiscal deficit towards a sustainable path and revive economic growth. The approved measures constitute: Rationing wide-range of fuel products Re-pricing of electricity and outlining a five- year plan for phasing out fuel subsidies Increasing sales taxes on tobacco and alcohol

1

Item Annual Saving (EGP Bn) Diesel 16.8 Gasoline 8.9 Fuel Oil 4.0 Natural Gas 3.7 Electricity 8.5 Cigarettes & Alcohol 4.5 Total 46.4 % of GDP 2.0%

Mortgage Finance

2

The government is stimulating private and household credit through the launch

• f an EGP 10bn programme by CBE to promote mortgage finance

The programme would lend banks funds at preferential rates for 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

The government recently announced to build a new Suez Canal alongside the existing 145-year-old historic waterway with an estimated cost of USD 8.2 bn (including building underground tunnels) to be completed in five years. The new canal is set to boost annual revenues to USD13.5 bn by 2023 from USD5.2 bn in FY12/13 3,600 KM of new roads to be constructed at a cost of EGP 36 billion

Macroeconomic Indicators

Real GDP Growth2

5.2% 1.8% 2.2% 2.1% 2.3% 3.3% 4.5% June 10 June 11 June 12 June 13 June 14 June 15 June 16

Budget Deficit (%GDP)3 Inflation2

1 Source: Bloomberg, Reuters, EFG Hermes Research 2 Source IMF

3

Improving Macro Economic Indicators1

Planned government initiatives to address long-standing economic issue

3Expected budget deficit is based on press release by the Ministry of Finance

900 270 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14

35 33 30 28 27 27 26 25 24 22 20 18 16 16 15 15 16 16 14 15 15 16 15 15 14 14 13 14 16 15 19 19 19 19 18 17 17 17 17 18 17 17 17 17 17 17 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14

Following the 30th of June protests and the ouster of ex president Morsi, several Macro indicators showed signs of improvement with CDS spread dropping from an alarming 900 bps and a drop in 1 year T-bill yield Macro risk receded with the support package promised by Saudi Arabia, UAE and Kuwait. The aid received pulled the breaks

• n further devaluation of

the EGP and revered the constant decrease in Egypt’s foreign reserves

Improving Macroeconomic Indicators1

Egypt’s macroeconomic backdrop

34

Recent Government Initiatives

Egypt Spot & 12 Months Non Deliverable Forward

1 Source: Bloomberg, IMF, CBE 2 Due to the Monetary Police Committee’s decision to raise overnight lending and deposits rate by 100 bps

CDS Spread (basis points)

Post 30th June Protests Post 25th Jan Revolution Post Presidential Elections

1 Year T-Bill Yield (%) Dollarization (% of Total Deposits)

Due to MPC’s decision to raise lending and deposits rate by 100 bps

2

23% 19% Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14

Stable FX Reserves (USD Billion)

Country Received Total Pledged

USD 4.0 bn USD 6.9 bn USD 8.6 bn USD 12.2 bn USD 3.0 bn USD 4.0 bn USD 15.6 bn USD 23.1 bn Incoming International Support Packages

7.1 7.9 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Spot Forward 14.9% 12.2% Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14

5.8 7.14 967 1,048 1,466 1,510 2,083 1,788 1,771 1,452 2,814 3,202 1,784 3,106 3,747

1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14

21% 22% 20% 13% 11% 7% 4% 2% 21% 23% 19% 13% 11% 7% 4% 2%

25% 15% 5% 5% 15% 25% <10 10-20 20-30 30-40 40-50 50-60 60-70 >70

Female Male

Young population to fuel growth

35 Egypt's large and growing population is a key asset compared to its MENA counterparts The country is set to exhibit a strong working age population growth

• ver the coming period

The growing marriage rate (standing at 933 thousands marriages per annum), coupled with increasing urbanization levels have resulted in an increased demand for housing units Recent government initiatives relating to mortgage financing are expected to further enhance demand

Market Drivers Remain Intact

Population & Growth Vs Arab States

1 Source: CAPMAS, IMF, US Census, Central Banks of respective countries and Industry reports; Data as at 31/12/2013 2 Source: Jones Lang LaSalle, Bloomberg, Company Financial Statements

Demographics Gross Pre Sales for Key Developers3 (EGP mn. FX Rate) Market Characteristics / Trends

87 33 32 28 25 5 4 3 2 2% 1% 1% 2% 3% 5% 3% 2% 6%

• 10

20 30 40 50 60 70 80 90

Population (mn) Growth (%)

World Average: 1.2% Young population (around 60% below the age of 30)

Encouraging Real Estate Market Dynamics1

Encouraging Real Estate Market Dynamics2

Market characterized by a small number of densely populated cities, with low urbanization. Cairo is one of the most dense metropolitan areas in the world Sales are supported by a large population with an increasing number of marriages to spur demand Strong pent-up demand still not matched by equal supply (housing gap estimated at not less than 200k units annually) Inefficiencies of public sector players led to emergence of a number

• f mega private sector developers

Summer 2014 witnessed an increasing demand for secondary homes

3 Key developers include SODIC, Palm Hills and Talaat Mostafa

Disclaimer

36

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

• r 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 SODIC’s liability in respect of this Presentation and is to be governed by Egyptian law under the jurisdiction of Egyptian courts.

Thank You

For SODIC investor relations enquiries contact: Heba Makhlouf hmakhlouf@SODIC.com Tel: +202 3854 0121 SODIC IR website: ir.SODIC.com SODIC corporate website: www.SODIC.com