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

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

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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

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SLIDE 1

Investor Presentation

March 2014

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

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SLIDE 2

Outline

2

  • 4. SODIC Group Profile
  • B. Organizational Strengths
  • C. Board of Directors and Executive Management
  • D. Shareholder Structure
  • E. Share Performance
  • H. Awards
  • F. Land Bank
  • G. Launched Projects Highlights
  • A. SODIC Group Description
  • B. Mitigating Inflationary Pressures
  • A. Fundamentals Intact
  • 1. Egypt Real Estate Market Update
  • 2. SODIC Updates
  • B. Eastown Update
  • A. 2013 Vs 2012
  • C. Westown Update
  • A. Vision
  • B. 2014 Strategy
  • B. Launched Projects’ Profitability
  • A. Sales Performance & Unrecognized Revenues
  • 3. SODIC Operational & Financial Overview
  • D. Execution & Delivery
  • F. Non-Launched Inventory
  • C. Profitability Trends
  • E. Delivery Evolution
  • 1. SODIC Achievements
  • 2. SODIC Startegy
  • C. Strategic Growth
  • G. Conclusion
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SLIDE 3

SODIC Achievements 2013: Best year since inception

3

1 Number of employees including subsidiaries

Net Contracted Sales

  • 2013: EGP 2.5 bln
  • Since Inception: EGP 8.7 bln

Units Sold

  • 2013: over 1300 units
  • Since Inception: over 3800

units Deliveries

  • 2013: 680 units worth EGP

1528 mln of revenues

  • Since Inception: over 1450

units across 7 different projects Number of Employees

  • Directly1: 1475 employees
  • Indirectly on sites: 8000

workers 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 Amenities

  • Within SODIC West: 3

schools, a medical center, state-of-the-art office park and several retail complexes Development

  • Over 4000 units under

development

  • Investment cost of more than

EGP 5.5 bln

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SLIDE 4

Egypt Real Estate Market Update

4

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SLIDE 5

Fundamentals Intact

  • 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

Genuine demand fueled by Egypt’s young population

Private Vs. Public Contribution3 Unit Supply Shortage2 Strong Demographics1

24% Above 40 Years 44% Below 20 Years 32% Between 20 & 40 Years

100,000 150,000 200,000 250,000 300,000 350,000 400,000 2006 2007 2008 2009 2010 2011

Supply Demand Gap

  • No. of Units Supplied*

Estimated Yearly Demand**

Gap of some 200,000 units annually

  • 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

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

  • n various sources including research reports, recent news articles, and MOH.

3 Source: Jones Lang LaSalle, CAPMAS, American Chamber

5 25% Public Sector Supply 75% Private Sector Supply

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SLIDE 6

Mitigating Inflationary Pressures

Despite inflationary pressures, SODIC’s profitability margins are augmenting

Raising selling prices/Higher down payments How real estate developers mitigate the current & expected inflationary pressures? Forge strategic alliances with industry leaders in volatile raw materials Design efficiencies Pressuring contractors’ margins

  • 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
  • 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
  • Building smarter units with better space utilization and less imported materials
  • Constructing structurally efficient buildings (Example: Eastown Residences apartment buildings – efficiency 93%)
  • Lack of contract awards allowed developers to negotiate lower prices for new construction contracts

6

Shortening development cycle

  • Pressuring the period in-between sales launch and construction commencement
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SLIDE 7

SODIC Updates

7

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SLIDE 8

2013 Vs 2012 Highlights

SODIC’s solid KPIs signal steady growth & improved financial & operational efficiency

KPI (in EGP mln unless otherwise stated) 2013

8

2012 Variance

Gross Contracted Sales Net Contracted Sales Cash Collected Development CAPEX (excluding land) Number of Units Delivered (units) Value of Units Delivered Normalised Gross Profit Actual Gross Profit Normalised Net Profit Actual Net Profit Debt Raised/Secured

2,730 2,478 1,800 1,600 52% 55%

Number of Units Sold (units)

1,409 924 52% 1,292 750 72% 802 752 7% 680 441 54% 1,530 1,402 9% 535 517 3% 355 517

  • 31%

229 257

  • 11%
  • 447

257

  • 274%

900 170 429%

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

453 320 42%

1 Reversal of previously booked revenues related to two large exceptional sale transactions, amounting to EGP 242 million. 2 A one-off, non-cash, impairment charge on SODIC’s Syrian investment has taken place with an amount of EGP 478 million.

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SLIDE 9

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

9

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

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SLIDE 10

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 1st of March

10

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

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SLIDE 11

SODIC Strategy

11

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SLIDE 12

Vision A trusted and widely respected platform with untapped potential

12

  • 1. Continued timely

execution

SODIC Strategy

  • 2. Replenish land

bank

  • 4. Penetrate the

middle income market

  • 5. Reach platform

capacity Maintain balance sheet potency

  • 3. Continue to

develop market relevant products

Maintain and accelerate construction on contracted units to ensure collecting c.EGP 4 billion of outstanding receivables and cement SODIC’s reputation as a delivery oriented developer.

  • 1. Continued timely execution

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

  • 2. Replenish land bank

Building on the success of Westown Residences & Eastown Residences, continue to develop such successful products

  • 3. Market 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 Middle Income Market

SODIC’s current organistaional structure is geared to reach: annual sales

  • f some EGP 3-3.5 billion & annual execution of some EGP 1-1.5 billion
  • 5. Reach Platform Capacity

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

  • 6. Maintain balance sheet potency

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

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SLIDE 13

2014 Strategy Focusing on core strength & recognized sweet spots

13

1 As at 5/3/2014. 2 Expected spending on launched projects and excludes any land liabilities.

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

Expected Outcome

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

  • Targeting new gross contracted sales in line with 2013’s 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

New Contracted Sales

  • 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

Project Execution & Delivery

  • Bringing to market new inventory worth some EGP 2 billion, in addition to existing

inventory of some EGP 1 billion

  • Location: East & West Cairo

Inventory Status

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SLIDE 14

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

14

  • 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)

New Investment Opportunities Land Acquisition Options New Government Auctions Secondary Sale

  • 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
  • Land plots up to 150 acres:
  • Auctioned in March 2013, got cancelled due to
  • verheating 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

SODIC is seeking both options in parallel to increase shareholder value

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SLIDE 15

SODIC Operational & Financial Overview

15

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SLIDE 16

Sales Performance & Unrecognized Revenues1

FY 2013 net contracted sales shows over 50% growth yoy

2013

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

Annual Net Sales (EGP Million)

16

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

  • Launch of:
  • WTR phases 7, 8 &

9

  • Eastown

Residences “ETR” phases 1 to 4 account to 50% of total sales

2,478

2008 2009 2010 2011 2012

  • 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 Regular Operating Environment Global Financial Recession

  • KP launch achieving

EGP 250 million of sales

  • Cumulative Sales:

EGP 4.6 Billion Regular Operating Environment

  • 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 Jan 25th Revolution

  • Launch of:
  • Allegria phase 5
  • WTR Phases 2 to

6

  • WTR achieved sales
  • f some EGP 1

billion

  • Cumulative Sales:

EGP 6.2 Billion Regular Operating Environment

1,884 849 1,839 1,619 6

June 30th Revolution

  • 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Monthly Cumulative Sales (EGP Millions)

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SLIDE 17

Launched Projects’ Profitability

GPM of 38% on some EGP 8 billion of unit sales

Expected Lease Revenues

Sellable Inventory Profitability 1 Percentage Sold (Value)

17

1 All figures in EGP unless otherwise stated. 2 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.

Total Inventory Projects’ GPM 2 Sold Inventory Gross Profit 3 Project (EGP millions) Allegria4 Polygon Forty West KP WTR (I-IX) Total 4,374 40% 4,003 1,592 587 34% 337 115 567 27% 342 92 600 31% 600 185 1,696 41% 1,573 648

9,042 38% 3,086

Sold Unsold 91% 9% 57% 60% 40% 100% 93%

7%

88% 12% Sales / Lease Ratio 100% 62% 83% 100% 100%

  • 43%

ETR (I-IV) 1,218 38% 1,207 454 99%

1 %

100%

8,062

1,174

  • 300

600 900 1,200

  • 50

100 150 200 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cumulative Lease Revenues EGP Million Annual Lease Revenues EGP Million Polygon Forty West The Strip Westown Hub Cumulative Lease Revenues 32 78 104 117 123 129 136 144 152 158

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SLIDE 18

1,773 2,224 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 H1 2013 H2 2013

GP per gross land area (EGP/sqm)

Westown Launches

(All figures in EGP millions, unless

  • therwise stated)

Total Revenues Total Development Cost 1 Gross Profit per Gross Land H1 2012 741 425 1,105 H2 2012 440 254 1,545 H1 2013 129 70 1,815 H2 2013 385 189 2,430

Eastown Launches

(All figures in EGP millions, unless otherwise stated)

Total Revenues Total Development Cost 1 Gross Profit per Gross Land 921 597 1,773 294 163 2,224 H1 2013 H2 2013 Gross Land (sqm) 255,462 110,386 31,570 77,620 Gross Land (sqm) 182,384 58,897 Gross Profit Margin 38% 39% 44% 49% Gross Profit Margin 35% 45%

Upward profitability trends in WTR & ETR enhancing land utilization

Profitability Trends

18

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

1,105 2,430 500 1,000 1,500 2,000 2,500 3,000 H1 2012 H2 2012 H1 2013 H2 2013

GP per gross land area (EGP/sqm)

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SLIDE 19

Execution & Delivery

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

Project

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

1 Figures represent Polygon phase I. 2 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. 5 CASA is a jointly owned project (80% Palm Hills & 20% SODIC). SODIC owns 63 apartments only.

Over 4,000 units under development (36% delivered) with an investment cost of some EGP 5.4 billion

Delivery Execution

19

Allegria Kattameya Plaza Forty West

WT Residences (I-IX)

The Polygon1 The Strip WT Hub

Total

1,254 1,040 83% 2010 2,275 96% 466 284 61% 2013 339 97% 133 22 17% 2012 489 72% 1,075 34 3% 2013 930 54%4 250 61 24% 2013 612 76% 73 18 25% 2012 135 81% 45

  • 2014

71 90%

4,138 1,483 36% From 2010 to 2016 5,445 NA

2015 2015 2015 2016 2015 2014 2014 ET Residences (I-IV) 808

  • 2016

594 5% 2016 CASA5 63 24 38% 2013 NA NA 2013

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SLIDE 20

Delivering on approximately 1,500 units since 2010

Delivery Evolution

259 Units 110 Units 444 Units 683 Units Total deliveries per year Number of units

20 110 369 813 1,496

  • 200

400 600 800 1,000 1,200 1,400 1,600 2010 A 2011 A 2012 A 2013 A CASA WTR PH 1 Kattameya Plaza Polygon The Strip Forty West Allegria Total Cumulative Deliveries

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SLIDE 21

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)

Non-launched Inventory - Visibility

21

  • Project: Esplanade West (El Yousr Land)
  • Expected Project Sales Value: EGP 1.8 bln @ 7% FP
  • Sales Launches Timeline: 2015 - 2018
  • 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
  • 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
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SLIDE 22

Conclusion SODIC’s current platform is geared towards growth

22

1 As at 3/3/2014. 2 Excludes land payments or any land to be bought.

Development

  • Market research
  • Assessment
  • Tailor, launch

market-relevant products

Growth-Centered Platform

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

Sales

  • 2013 FY net sales
  • f EGP 2.5 billion
  • Capacity &

platform of EGP 3.5 billion annually

Execution

  • Over EGP 800

million in 2013

  • EGP 1 billion of

annual execution capacity

Delivery

  • Over 680 units

delivered during 2013

  • Over 2,600 units

to be delivered

  • ver the coming 3

years (2014-16)

Liquidity

  • Cash balance of

some EGP 400 million

  • Well geared:

securing EGP 900 million syndicated loan

Management Focus

Deliver on current obligations: protecting outstanding receivables of some EGP 4 billion Replenish land bank: ensuring long-term visibility and sustainability

Maximize Shareholders’ Value

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SLIDE 23

SODIC Group Profile

23

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SLIDE 24

SODIC Group Description

  • 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

About SODIC Group

SODIC a fully integrated developer

Diversified company base with a wide range of core competencies

  • 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

Some EGP 8.7 billion of net contracted sales since 2008 9 launched projects with

  • ver 5,000 residential

units valued over EGP 10 billion Egypt’s raw land bank of some 2.5 million sqm Edara  ISO Certification 9001: 2000 for quality of property & facility management 24

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SLIDE 25

Organisational Strengths

  • 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

A developer building on the positives and tackling the challenges

Fully Integrated Developer

Strength Description

  • 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

Process Driven Development

  • 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)

Full Cycle Experience

25

Post-revolution strategy shift of launching market-tailored projects

New market needs

  • Extensive interviews/focus groups with

potential customers

  • Competition Research/ Sales Analysis
  • Review of SODIC’s experience during the

2009 recession

Assessments

4 key elements to target “Upper Middle Income Class”

  • Affordability
  • Functionality
  • Exclusivity
  • Safety

Outcomes

New products with ticket price of EGP 0.8 – 2.8 million

  • Efficient structural design & construction
  • Higher densities
  • Smart design with unique features

Actions

Unparalleled success of WTR I - IX

  • Some EGP 1.6 billion of sales1
  • Higher margins
  • Quicker process
  • Market leader

Results

1 Sales as at March 2014.

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SLIDE 26

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

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

  • rganization

capable of monetizing land positions at

  • ptimal value

Diverse team assembled since 2006 with untapped capacity Transitioned from entrepreneurial to corporate

Executive Management

  • Mr. Ahmed Badrawi

Chief Technical Officer

  • Mr. Frank

Konings

Chief Financial Officer

  • Mr. Omar El

Hamawy

Chief Projects Officer

  • Mr. Hatem

Halwagy

Chief Commercial Officer

  • Mr. Ahmed

Labib

Chief Projects Development Officer

  • Mr. Basil

Ramzy Managing Director (Executive)

  • Dr. Hani Sarieldin

Managing Director (Executive)

  • Mr. Ahmed Badrawi

Chairman (Non-Executive)

26

  • Eng. Safwan

Thabet

  • 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

Member

(Independent)

Member

(Independent)

Member

(Independent)

Member

(Olayan Group)

Member

(SODIC Inv, EXEC)

Member

(EDARA, EXEC)

Member

(SOREAL, EXEC)

Member

(October Prop. Ltd)

Member

(October Prop. Ltd)

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SLIDE 27

Shareholders Structure

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

19% 13% 12% 7% 4% 45% EFG Hermes Abanumay Olayan Group Al Rashed & Sons ESOP Free Float

Regional Institutions 6% Local Institutions 59% Retail 35%

Shareholder Structure By Type Dec 2004 Shareholder Structure1 By Type Dec 2013

Share Evolution Since Dec 2004

  • Increased international

and regional appetite

  • Less retail appetite
  • Introduction of ESOP in

2007

27

1 International institutions include one company with 14.7% share stake (out of the 24%) – the Company is 94% owned by EFG-Hermes Holding Company.

Local Institutions, 26% Regional Institutions, 39% Retail, 8% International Institutions, 24% ESOP, 4%

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SLIDE 28

Share Performance

Share Information1

Stock outperforming EGX over the past 2 years

  • No. of Shares Outstanding

90.68 million Market Capitalization EGP 2,200 million Market Capitalization USD 314 million Index Inclusions EGX 30 EGX 100 MSCI IMI Symbol EGX: OCDI.CA Reuters: OCDI CA Bloomberg: OCDI EY Trailing 12m PE4: 9.13x

24 Months Share Performance : SODIC Vs. EGX (Rebased) 2

1 As at 4th of Mar, 2014. 3 From 2 Jan 2012 to 31 Dec 2013, rebased.

Research Analysts’ Consensus

28 Trailing 12m P/Bv:0.97 52 weeks High/Low (EGP): 25.8/13.8 2013 Share Performance 7% 50.00 100.00 150.00 200.00 250.00 300.00 350.00 2-Jan-12 2-Feb-12 2-Mar-12 2-Apr-12 2-May-12 2-Jun-12 2-Jul-12 2-Aug-12 2-Sep-12 2-Oct-12 2-Nov-12 2-Dec-12 2-Jan-13 2-Feb-13 2-Mar-13 2-Apr-13 2-May-13 2-Jun-13 2-Jul-13 2-Aug-13 2-Sep-13 2-Oct-13 2-Nov-13 2-Dec-13 EGX OCDI

  • Naeem Holding, Dec2013, FV: EGP 30.76 per share, Buy: “Eastown Residences a key driver, sales momentum

improving, need to bolster land bank portfolio, …”

  • HC, Oct2013, FV: EGP 25.1 per share, Neutral: “Land still key for re-rating, …”
  • 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 Eastown’s upcoming phase during Sep/Oct2013. …”

  • 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, …”

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SLIDE 29

Land Bank

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

Location

Sheikh Zayed/Sixth of October

Utilized Raw Description

5.05 mln sqm 1.84 mln sqm (1)

  • New Cairo

0.36 mln sqm (2) 0.50 mln sqm Eastown land directly adjacent to AUC Syria

  • 1.56 mln sqm

Proportionate to SODIC’s 50% ownership

Total 5.41 mln sqm 3.9 mln sqm

Land Bank Advantages Null Liabilities Regional Diversification Prime Locations

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

42% utilized of total land bank

1 Consists of 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 2 Kattameya Plaza Project (126,000 sqm) and ET Residences Phases I-IV (230,019 sqm). As at 5th of March 2014

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SLIDE 30

Launched Projects Highlights

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

Project Description

  • Residential single-family units
  • Launched 5 phases
  • 1,254 units

Allegria Westown Residences Kattameya Plaza The Polygon The Strip Forty West WT Hub

  • High-end apartment buildings
  • Includes hotel, retail and commercial buildings
  • 133 units
  • Various types of residential units
  • Launched 9 phases
  • 1,075 units
  • Upper middle class apartment buildings
  • Includes a retail complex
  • 466 units
  • 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

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Eastown Residences

  • Various types of residential units
  • Launched 4 phases
  • 808 units
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SLIDE 31

Awards

  • 2013: Allegria - best residential project – Built
  • 2013: The Polygon - best commercial and mixed use project – Future

A globally recognised developer

Cityscape Euromoney Business Today Ministry of Trade & Authority CNBC Property Euromoney American Society

  • f Landscape

Architects

Award Description

  • 2011: Best developer overall Egypt
  • 2011: Best mixed use developer Mena
  • 2011: Best residential developer Mena
  • 2010: Best developer overall Egypt
  • 2010: Best mixed use developer Mena
  • 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

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SLIDE 32

Disclaimer

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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.

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SLIDE 33

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

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SLIDE 34

Notes

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