#1ERC Egyptian Resorts Company Investor Presentation Q4/FY 2016#2Disclaimer 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 or 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 of 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 ERC or any other company. This document contains important and privileged information on ERC and may not be reproduced in whole or in part, and may not be delivered to any person without the prior written consent of ERC, and therefore shall be kept secret and confidential by any receiving party. This document contains forward-looking statements. By their nature, forward-looking statements involve inherent risk and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. ERC does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. The information contained herein is expressed as of the date hereof and may be subject to change. Neither ERC nor any of its controlling shareholders, directors or executive officers or anyone else has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document. For the avoidance of doubt, 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.#3AGENDA 2 3 4 5 6 Investment Highlights ERC - A Leading Master and Real Estate Developer Corporate History and Recent Events Sahl Hasheesh - ERC's Mega Resort Community Market Opportunity Summary Appendices 1#4Investment Highlights Master developer of mega resorts Leading real estate developer of world-class communities Premium mega resort on the Red Sea Unique business model with multiple recurring revenue streams Unique value proposition for sub-developers and residents Strong shareholder base and experienced management team 4 Investor Presentation FY 2016 ERC Egyptian Resorts Company#5ERC: Q3/9M 2016 Developments & Overview Slowdown in Revenues In FY2016, the company recorded revenues of EGP 208 million, down 48% y-o-y. The decline in top-line is owing to a slowdown in land sales during the year, with the company's realized revenues from the sale of phase one and phase two land plots standing at EGP 155 million in FY 2016 versus EGP 368 million in FY 2015, down 57.9% y-o-y. Cash Collections Inflows from sub-developers and retail buyers stood at EGP 84 million in FY 2016, down 49.1% y-o-y, owing to the overall slowdown in the tourism sector. from Meanwhile, cash receipts community management and services were also affected by the slowdown, recording EGP 28.6 million in FY 2016, a 32.2% y-o-y decline compared to FY 2015 figure of EGP 42.2 million. Cash Position The company's balance sheet remained liquid as at year-end 2016, with a cash balance of EGP 131.2 million Sawari Marina ERC continues to push forward with efforts to obtain all necessary licenses from governmental entities to launch its mega-project, Sawari, in 2017. Last year, the company had cleared the final obstacle on the course to launching the Sawari marina project, after receiving approval from the Tourism Development Authority (TDA) to redefine the boundaries of Sahl Hasheesh's Phase 2 to include the entirety of Sawari's 1.1 million square meter initial phase TAWAYA At Sahl Hasheesh's Old Town development, the company continues to market its exclusive Tawaya apartments developed in cooperation with Palm Hills. As at year-end, almost 30% of the project has been sold and an additional 30% is reserved. Jamaran The company's Jamaran development sold out towards the end of 2014 and has set ERC on course to realize c. EGP 100 mn in revenues over the coming two-three years. EGX 30 ERC is on The Egyptian Exchange's most famous and followed index, the EGX 30, awarding the company greater exposure to local, regional, and international investors, on both the retail and institutional levels. 5 Investor Presentation FY 2016 ERC Egyptian Resorts Company#6AGENDA 3 4 5 6 Investment Highlights ERC - A Leading Master and Real Estate Developer Corporate History and Recent Events Sahl Hasheesh - ERC's Mega Resort Community Market Opportunity Summary Appendices 2#7ERC - Egypt's Master Developer ERC is a master and real estate developer and exclusive community manager of fully integrated, world-class communities The ERC Business Model: 1 Acquire broad acre land holdings suitable for high-quality development at nominal value - Sahl Hasheesh land bank acquired in 1995 for an average of USD 1.32/m² 2 Create a master plan with some of the world's leading architectural and urban planning firms 3 Invest in comprehensive state-of-the-art infrastructure <+ 4 Water | Sewage Treatment | Electricity | Communications | Road Networks Market individual pre-designated plots to sub-developers and investors 5 Develop prime residential and commercial real estate: Old Town, Sawari and Jamaran 6 Implement design guidelines and community management rules and regulations 7 Manage the community and supply of utilities within the developments through our project partners and community management team Manage the community and supply of utilities Implement design guidelines Develop prime residential and commercial real estate Market individual pre- designated plots Invest in comprehensive state-of-the-art infrastructure Create the master plan Acquire broad acre land holdings 7 Investor Presentation FY 2016 ERC Egyptian Resorts Company#8ERC Business Model Investment → Land Identification/ Acquisition Master Planning + Infrastructure Investment By world-class master planners • Design and construction guidelines and conditions + • Water Desalination Plants and Networks Sewage Treatment Plants and Networks Electricity Sub-stations and Networks Communications Networks and Equipment • Three Revenue Streams ERC leverages strong brand partnerships, a comprehensive development model and management structures that are transferable across projects and sectors - our ambition is to build a prolific, regional master developer generating long term, sustainable revenue streams through three channels. 1 Land Sales 2 Strategic Real Estate Development 3 Community and Utilities Management • Land plots to developers for the construction of hotels, residential apartments, villas, golf courses and other leisure real estate properties Land plot use is predetermined according to modern urban development plans Cash Generation Commercial Development (monopoly) • Commercial retail space for rent ⚫ Public concession areas Residential Development • Residential apartments for rent • Residential apartments for sale Other Strategic Assets ⚫ Marinas ⚫ Beaches • Other public areas Utilities • Water • Sewage Electricity Communications Community Services • Maintenance and upkeep for public infrastructure, public areas and public buildings • Security provisioning for residents, visitors and workers • Waste management provisioning and administration • Community brand and reputation development ⚫ Future capital fund maintenance and management 8 Investor Presentation FY 2016 ERC Egyptian Resorts Company#9AGENDA 1 2 4 5 6 Investment Highlights ERC - A Leading Master and Real Estate Developer Corporate History and Recent Events Sahl Hasheesh - ERC's Mega Resort Community Market Opportunity Summary Appendices 3#10Shareholder Information A successful public-private partnership with a stable shareholder base Legal Structure Egyptian Public Joint Stock Company Listing Egyptian Exchange (EGX) Authorized Capital (EGP) 2,000,000,000 Paid-in Capital (EGP) 1,050,000,000 Nominal Share Value (EGP) 1.00 Others 40.48% KATO Investment 11.96% First Arabian Company 10.00% Shareholding Structure Rowad Tourism 9.05% Fiscal Year December 31 ERC Tax Structure 10-year tax exemption ended 2007 Subsidiaries Sahl Hasheesh Co. (SHC) - 78.43% SHC Tax Structure 10-year tax exemption ending 2017 Employees 560 9.00% Al Ahly Capital Holding 4.50% I Orascom Development Holding I 8.05% 6.96% Misr Insurance Misr for Life Insurance 10 Investor Presentation FY 2016 ERC Egyptian Resorts Company#11ERC Corporate History • The Old Town receives its first tenant 2006 • 2005 • • Construction 2004 2017 2017 onwards • 2015 2014 2013 • • Community 2011 • Management • 2010 2009 2008 2007 • Begin work on Sawari with plans to open sales window during 2016, while focusing efforts on finalizing work on the Tawaya development with PHD Strengthen marketing campaigns to attract domestic visitors and second-home owners Continue to place emphasis on value-adding land sales to sub-developers Push forward with cost control schemes and proactive cash flow management 2015 ERC earns unprecedented profits from land sales to sub-developers Work commences preparation of Sawari Marina project after receiving TDA approval to redefine the boundaries of Sahl Hasheesh's Phase 2 in May 2015 Complete internal finishing of Tawaya project, SHC's joint project with PHD, within 12-18 months 2014 • Company ramps up marketing efforts, looking to capture larger market share as tourism recovers ERC contracted 100% of Jamaran for EGP 100 million to be realized over the following three years 2010-2013 • • • New management augments existing internal structure, taking company to next level in its lifecycle - key support functions included in HR plan Detailed development of community services and utilities reticulation model Third regional five-star hotel begins operations Focus on completing key strategic assets - ERC signs with leading global developer ODH to develop the Sawari Marina at Sahl Hasheesh. ODH also takes equity stake in ERC Jamaran villas project launched on sea front land plot First hospital/wellness facility signed on 2007-2009 Marketing • First regional four-star hotel begins operations 2003 • Sahl Hasheesh community management vision takes shape . Phase III master planning process begins 2002 2001 • 2000 • 1999 ERC begins considering additional land holdings to replicate business model 2004-2007 Unprecedented sales success based on relationship marketing and private roundtable negotiations 1999 - 2003 Infrastructure work begins with Bechtel as project manager Aggressive marketing to counter tourism industry crash Appreciation of overall financial climate leads to practical and market-leading sales terms and development schedules 1998 1998 1997 First plot sold for USD 37/m² Design 1996-1997 1996 Incorporation, concept development and master planning for Phases I and II by RTKL 1995 1995 Land acquired for first project - "Sahl Hasheesh" - at an average price of USD 1.32/m² 11 Investor Presentation FY 2016 ERC Egyptian Resorts Company#12Emerging from the Crisis: Another Opportunity Dislocations after the global financial crisis and the 2011 uprising have left Sahl Hasheesh with the opportunity to emerge as the destination of choice for investors Comfortable Cash Reserves - EGP 131.2 million ERC can spend on critical infrastructure projects weathering a prolonged downturn. Prime Land Bank ERC owns over 2.7 million m² of prime locations (1.6 million m² available for sale 1.1 million m² Sawari Marina Project) on the Red Sea coast. Proprietary Strategic Projects on the Rise Apart from the fully sold-out Jamaran ERC is developing a number of other key projects that add to the attractiveness of Sahl Hasheesh and encourage widespread development: • Sawari: Marina project (apartments, villas, hotels, commercial units, and • a premier marina and yacht club). Tawaya: Sea-front apartments STRATEGY Supporting investment to boost the destination Smart, targeted, destination marketing is positioning Sahl Hasheesh as the destination of choice for visitors as well as developers resuming investment as tourism and second-home purchases regain momentum. Expanding land sales to key developers Attracting investments through tailored products to developers' was the key to the turn around of 2015. Contingency Planning In the unlikely event the TDA does not reverse its withdrawal of the Phase III land area, ERC has been actively building the capacity to shift the business model from a pure master developer to a mega B2C developer with around 2.7 million m² available for development over the next six to eight years as further proven by developing a number of proprietary projects. 12 Investor Presentation FY 2016 ERC Egyptian Resorts Company#13200 180 160 140 120 100 80 60 60 40 40 20 20 0 Delayed recovery relative to peers suggests strong rebound January 2011 -May 2017 (rebased to 100) Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 EGX30 ⚫EGTS MNHD -TMGH ODHN PHDC OCDI Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 13 Investor Presentation FY 2016 ERC Egyptian Resorts Company Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17#14AGENDA 1 2 3 Investment Highlights ERC - A Leading Master and Real Estate Developer Corporate History and Recent Events Sahl Hasheesh - ERC's Mega Resort Community 5 6 Market Opportunity Summary Appendices 4#15A rare and established prime diving and seaside destination Phase 3 Phase 2 Phase 1 Gaza Strip Alexandria Jordan Bovet Egypt Cairo Luxor Hurghada Sahl Hasheesh On program to become the no. 1 destination for seaside hospitality, residential and entertainment developers 15 Investor Presentation FY 2016 ERC Egyptian Resorts Company#16A master-planned project roughly two-thirds the size of Manhattan Sahl Hasheesh is a unique, purpose-built Red Sea destination 18 km south of Hurghada International Airport and approximately 470 km from Cairo. The year-round development - approximately two-thirds the size of the island of Manhattan - is situated on a bay long. renowned as a world-class diving and seaside destination and includes a 12.5-km shoreline. - LOCATION + SIZE DIMENSIONS + SHORELINE UNIQUE CHARACTERISTICS 18 km south of Hurghada Int'l Airport 22 km south of Hurghada city center 470 km from Cairo 32 mn m²/10,000 acres / 4,100 hectares Approx. two-thirds the size of Manhattan Length Range: From 7.0 to 8.0 km Depth Range: From 4.5 to 6.8 km Bay Length: 12.5 km (7.8 miles) Gorgeous sandy beach, 9 km swimmable Overlooks renowned dive site at Hasheesh Island • An all seaview resort Land elevations range from 0 m above sea level at the front of the resort to 120 m at the back-almost 40 stories high Year-round resort with moderate to hot weather and calm waters 16 Investor Presentation FY 2016 ERC Egyptian Resorts Company#17A WATG Master Plan Phase III pending Tourism Development Authority (TDA) approval Phase 3 Phase Phase 2 RED SEA Phase III shapes and brings online phased districts totaling 20 million square meters, and is the key to transforming the development from a pure resort to a thriving resort city. The WATG design introduces the heart of the city: hospitals, schools, office buildings and SMEs are among the developments that will shape a year-round municipal downtown at Sahl Hasheesh. • . • • After the 2011 uprising, the TDA withdrew land plots from many developers, including ERC. The allocation of Phase III of Sahl Hasheesh was cancelled, with the justification that ERC did not submit the master plan of Phase III. There were no prior notices for this withdrawal, which violated the land allocation agreement. ERC immediately submitted the master plan, which had been ready but was undergoing minor fine adjustments, and followed the legal steps by filing an appeal to the TDA to reverse this decision. • ERC also submitted an appeal to the Dispute Resolution Committee under the TDA. • . ERC then filed a case against the TDA and the court forwarded the case to the Panel of Experts to investigate and report their opinion. ERC is optimistic about the outcome because of its strong legal position and because the government not only wants but also needs to resolve all disputes that have crippled the real estate and tourism sectors and the economy in general. 17 Investor Presentation FY 2016 ERC Egyptian Resorts Company#18Sahl Hasheesh: Progress Benchmarks Phase 1 6 million m² • Hotel Rooms Fully finished and operational: 1,188 rooms (four projects) . Residential • • Entertainment Phase 2 • • • • Hotel Rooms • Residential Entertainment Phase 3 • Fully finished and operational waiting for an updated license: 86 rooms (one project) Rooms planned, under construction, or waiting a license: 4,367 Fully finished: 1,772 villas/apartments (eight projects) Villas/apartments under construction : 66 44,000m² retail and entertainment ready Two designer golf courses 6 million m² Fully finished and operational: 1,396 rooms (three projects) Rooms planned, under construction, or waiting a license: 2,057 Fully finished: 520 villas/apartments (1 project) Villas/apartments under construction : 257 First phase of Sawari Marina to host 330+ yachts, three hotels and 1,191 residential units/villas, in addition to a commercial area 20 million m² General Status • Master plan by WATG finalized and delivered to TDA Phases I and II of Sahl Hasheesh are currently home to around 2,700 hotel rooms and suites managed by brands including Premier Le Rêve, Premier Romance, Pyramisa and Old Palace, in addition to 2,300 residential units. Five of our hotels are top 10 picks on Trip Advisor. 6,424 hotel rooms are planned or under construction and 323 residential units are under construction. A phased master plan executed in coordination with leading local and international development partners Planning Partners Operating Partners Developers ORASCOM DEVELOPMENT & MANAGEMENT RTKL WATG AECOM AAW CONATING ENGINEERS VEOLIA ENVIRONNEMENT BECHTEL Projects PALM HILLS DEVELOPMENTS SAWARI TAWAYA SENSATIONALLY YOURS TROPICANA HOTELS & RESORTS Jamaran SAHL HASHEESH e TIME SUITES AZZURRA Group of Companies EDSA MIC-CO mobility in chain ERNST BODY CORPORATE MANAGENENT PTY LTD HEPCA CARING FOR THE RED SEA Premier Traveline Pyramisa aurra RED SEA RED SEA LOTELS TRAVCO GROUP Veranda SARL HASHEESH BARON PALACE Sahl Hasheesh 18 Investor Presentation FY 2016 ERC Egyptian Resorts Company#19A unique value proposition for ... 1. Investors & Sub-Developers Controlled Supply Large - yet strategically released - land phases deployed based on development and ROI protection. Land supply around Hurghada is eroding quickly, while future sites at Sahl Hasheesh are easily brought online on short timelines, allowing profit protection. Superior Infrastructure "Plug-and-Play": Infrastructure up to site limits with developers simply "plugging" in. Potable Water: Desalination plants delivering water needs with plug-in expansion capability. Water Treatment: Tertiary treatment generating drinkable water. Communications: Black fiber network delivering VOIP, Internet and IPTV. Electricity: Substations ensure capacity secured well in advance of requirements. STP Desal. One-Stop-Shop Investors and developers deal only with ERC, while ERC takes on all bureaucratic licenses, approvals, building permits and land registration. 000 Comms. KO 064 19 Investor Presentation FY 2016 ERC Egyptian Resorts Company#20and for ... 2. Tourists & Residents Community Management in an Upscale Resort Architectural integrity and cohesion guaranteed by strict design guidelines coupled with innovative design concepts promise an ideal physical environment. Community management controls and regulations ensure an uncommonly high level of environmental amenity and management services. Maintenance and upkeep ensure a continuously functional and clean-operating and service-focused environment. Full services and amenities blend the convenience and opportunities of a year-round municipality with the climate, lifestyle and attitude of a resort destination. Sahl Hasheesh Old Town Pharaonic Gate 20 Investor Presentation FY 2016 ERC Egyptian Resorts Company#21ERC Business Model - The Case at Sahl Hasheesh Investment Land Identification/ Acquisition Master Planning + Infrastructure Investment Three Revenue Streams ERC leverages strong brand partnerships, a comprehensive development model and management structures that are transferable across projects and sectors - our ambition is to build a prolific regional master developer generating long term, sustainable revenue streams through three channels. 1 Land Sales • Land plots to developers for the construction of hotels, residential apartments and villas, golf courses and other leisure real estate properties • Land plot use is predetermined according to modern urban development plans 2 Strategic Real Estate Development Cash Generation Commercial Development through subsidiary Sahl Hasheesh Co. (78.44%) • Commercial retail space for rent Public concession areas Residential Developments • Residential apartments for rent • Residential apartments & villas for sale Marina Development • Marina basin and docking area • Surrounding residential and commercial real estate Utilities • Water Sewage • Electricity • Communications Community Services • • 3 Community and Utilities Management Maintenance and upkeep for public infrastructure, public areas and public buildings Security provisioning for residents, visitors and workers • Waste management provisioning and management • Community brand and reputation development • Future capital fund maintenance and management 21 Investor Presentation FY 2016 ERC Egyptian Resorts Company#22Revenue Stream 1 Land Sales SAHL HASHEESH RED SEA, EGYPT#23Revenue Stream 1: Land Sales Transfer of Ownership Occurs Upon Project Completion and Operation to Prevent Developer and Investor Speculation Offer Acceptance • Offer received from developers/investors • Reservation payments prove offer validity • Proof of project funding may be requested Sales contract signed (includes exclusive utilities agreement) • Full down payment • Design guidelines delivered to developer The vast majority of land is scheduled for release during Phase III of the project. The completion of key strategic assets will positively impact tourist and residential demand, the operating performance of sub-developers and, ultimately, land plot prices. Review + Construction CapEx 1. Plans reviewed against design guidelines • Infrastructure coordination with developer 2. Construction permit issued • Infrastructure investment 3. Continuous multi- disciplinary inspections • Infrastructure delivery (120 days prior to operation commencement) Years Area (million m²) Sold (million m²) ERC Future Projects (million m²) Available for Sale (million m²) 2017 2018 2019 2020 2021 2022 2023 2024 Plot Sales Phase I 6 5.5 0 0.5 Projects Development Plot Sales Phase II 6 4.9 1.1 (Sawari Marina) 1.1. Projects Development 23 Investor Presentation FY 2016 ERC Egyptian Resorts Company#24Revenue Stream 1: Land Sales Industry-Beating Model 2.7 million m² (excluding Phase III) remain in the pipeline at Sahl Hasheesh. Average sales price grew at a CAGR of 90% from 2004 till the global financial crisis and 25% till present Weighted Average Sales Price/m² Achieved (USD) 2004 WAP was low due to a one-time promotional 1 million m² golf course sold at USD 4.01 per m² to a strategic investor In 2013 and 2014, we sold 67,000 m² to the same strategic investor with favorable prices 11 78 42 45 2007* ՄՈՈՒ ገበበር 2007 151 143 2000 2012 40 CAGR = 25% Weighted Average Cost/m² (USD) 118 109 29 103 1.32 2012 2014 2015 2015 Uncapitalized Infrastructure Cost Cost of Land from TDA 128 1.75 Fixed Fee on Sale of Land to TDA | Gross Profit 1,327 261 2,039 1,317 Land Area Sold (000 m²) 476 4 20 101 457 21 ⚫ ERC maintained long-term land bank residual value by controlling end- consumer supply by not engaging new land plot sales in 2009, 2010, and 2011. Also, ERC engaged in minor sales in 2012 and 2013. Excessive supply will result in price competition among developers hurting their returns and in turn hurting ERC's land plot prices. • Developer Payment Terms: Down Payment: 20% - 30% Installments: 5 - 12 equal semi-annual installments • TDA Land Payments: Phase - Fully paid Phase II - Fully paid Phase III - EGP 666.2 * mn outstanding (Long Term Liability), three years grace + seven years payment • Infrastructure Delivery Terms: 120 days prior to development operations commencement. *As of 31/12/2016 24 Investor Presentation FY 2016 ERC Egyptian Flasorts Company#25Revenue Stream 2 Real Estate Development: Strategic Projects and Sahl Hasheesh Company SAHL HASHEESH RED SEA, EGYPT#26Under Development 1 SHC Land Bank and Strategic Developments | Overview ERC's subsidiary Sahl Hasheesh Company (SHC) is developing approximately 700,000 m of commercial and residential property Sole developer for Phases I and II downtown mixed-use areas Plot # Size (m²) Type of Development 9A 33,994 Mixed Use Currently developed BUA over Plot 9A Lease 10,897 Sell 14,262 Retail/Commercial Residential w/PHD For Future Development Strategic plots acquired at market prices for mixed-use development Plot # Size (m²) Type of Development Festival World 487,660 Mixed Use 5.7 80,983 Mixed Use 60 97,554 Mixed Use Total 666,197 26 Investor Presentation FY 2016 ERC Egyptian Resorts Company#272 ERC Strategic Developments | Sawari Marina PRIMARY SECONDARY MARINA VIAGE ENTRY MARINA VILLAGE ENTRY SAWARI LAGOON PATIM MARINA • • 2.5 mn m² exclusive community centered around a world-class yacht club and marina Water across 117,000 m² to host 330+ boats and yachts from 10-60+ m in length • Two 5-star and one 4-star hotels in Phase 1 around the marina basin • . 1,000+ villas and apartments in Phase 1-around the marina basin and lagoon only An extensive pedestrian promenade, featuring more than 2 km of boutique shopping, fine dining, cafes, nightlife and entertainment venues Project Highlights • Total area of Phase 1: 1.1 mn m² . Number of apartments: Number of villas: 1,020 171 Number of hotel land plots: 3 . Total residential BUA: Construction duration: 130,000 m² 9 years (for phases 1 &2) 27 Investor Presentation FY 2016 ERC Egyptian Resorts Company#283 SHC Strategic Developments | Tawaya TAWAYA SAHL HASHEESH SENSATIONALLY YOURS • Project Highlights Exclusive waterfront residential project in the Old Town of Sahl Hasheesh. • With this strategic alliance, ERC is targeting the build-up of a local community of residential owners. Project Brief o 152 exclusive seafront apartments, spread over seven buildings • Unit sizes range between 60-294 m² o Sellable BUA of 17,157 m² o Delivery in 12 to 18 months o Sales window opened in April 2015 o Expected project duration of 2 years 28 Investor Presentation FY 2016 ERC Egyptian Resorts Company#294 ERC Strategic Developments | Jamaran Jamaran SAHL HASHEESH • An exclusive enclave of sea-side villas along the coast of Sahl Hasheesh SOLD OUT Property News • Four designs to choose from, with each possessing a unique architecture style while embodying the elegance, simplicity and charm associated with Sahl Hasheesh seaside living Designs include several bedrooms and washrooms, spacious kitchens and living rooms and private backyard pools and rooftop terraces, all with sea view Each villa has a large private garden and the option of adding an infinity pool and barbeque area ERC has attracted a real estate developer to acquire and develop an area designated for sea-side apartments while adhering to the simple, elegant design guidelines that characterize Jamaran • Total Land Area • Total No. of Villas • Total Residential BUA Villa Land Area (average) Villa BUA Construction duration Villa selling price (average) Total contracted revenues: 320,000 m² 51 of 181 15,000 m² 1,000 m² 318-330 m² 3 years USD 335,000 USD 13 mn 29 The Contemporary design Egyptian Resorts Company Investor Presentation FY 2016 ERC#30Revenue Stream 3 Community and Utilities Management SAHL HASHEESH RED SEA, EGYPT#31Revenue Stream 3: Community and Utilities Management ERC's extensive infrastructure investments position it as the exclusive utilities and services provider - a model that generates sustainable cash flows Water 1 cost recovery and 3 profit centers from recurring revenues Electricity • ERC invests in desalination plant and equipment Management and maintenance . subcontracted for a fixed fee • Water sold to developers at market rates • ERC invests in internal electricity grid • ERC is the licensed electricity distributor Electricity sub-station in design phase. Once online will result in substantially higher profit margins Communications ERC invests in IT equipment and fiber optic network throughout the entire site Fiber optic cables completed in Phases I and || TEVOTECH/Vodafone & Orange & Noor & Etisalat selected as business partners Services supplied through project partners: - High Speed Internet - IPTV (Internet Protocol Television) - VOD (Video On Demand) - Other Services Supply of Community Services ⚫ Ernst Body Corporate designed the community administration procedures and community rules and regulations • ERC hired a team of professionals who currently manage and administer the community and its resources • • Volume and quality-based pricing Potable: • • • ° Apartments: EGP 18.50 per m³ Hotels: EGP 13.00 per m³ Irrigation: • Golf and Green: EGP 9 per m³ Capacity: 14,000 m³ current - 75,000 m³ - 2035 (est.) Gross Margins of 50% + Budgeted CAPEX of EGP 180 million for a new 70 MW substation Capacity: 20 MW - current 300 MW - 2035 (est.) • Gross Margins TBA post sub-station Guiding Economics • • ERC's revenue share = 10%-40% of revenues ERC leases 13 mobile towers plots to Vodafone & Orange & Etisalat (revenue generating) • Fees are based on community management model as cost recovery 31 Investor Presentation FY 2016 ERC Egyptian Resorts Company#32AGENDA 1 2 3 4 Investment Highlights ERC - A Leading Master and Real Estate Developer Corporate History and Recent Events Sahl Hasheesh - ERC's Mega Resort Community Market Opportunity Summary 6 Appendices 5#33High stock liquidity with high growth potential ... Shares Outstanding Share Price* Market Cap.* Average Daily Volume** 2016 Revenue 1,050,000,000 52-Week Performance Chart (rebased to 100) EGP 1.08 200 EGX30 Rebased EGTS Rebased 1,134,000,000 180 7.73 million 160 140 EGP 208 million 120 EGP 105 million 100 EBT Net Profit Cash & Receivables *As of March 31st, 2017 **Source: EFG-Hermes. EGP 10 million EGP 1,416million 886 80 60 9th May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 www. Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 27th largest company in terms of average daily volume traded - 2016 (7.73 million shares) largest company in terms of average daily value traded - 2016 (EGP 6.74 million) 33 Investor Presentation FY 2016 ERC Egyptian Resorts Company#34... backed by a solid balance sheet 443.5 192.1 309.2 248.1 2009 I Consolidated Liquid Assets and Liabilities (EGP millions) Cash & TB Total Receivables ■Current L. Long Term L. 748.8 I I 1,284.i 273.5 331.9 619.5 208.1 384.2 216.4 226.9 260.6 236.3 336.2 674.7 328.9 342.0 463.3 I 273.8 238.6 200.0 260 271.1 252.4 271.6 162.0 108.9 98.1 135.6 131.2 2010 2011 2012 2013 2014 2015 2016 MEGP MEGP I I I I Current Liabilities 674.7 Long Term Liabilities 747.8 1. Claims Provision 28.4 1. Purchase of land creditors (Phase 3) 666.2 12. Down payments 98.9 2. Deferred Tax 82.6 13. Sundry creditors and other credit balances 241.1 I 3.1 Jamaran Unearned Revenue (Buildings) 29.6 3.2 Shahin Down payment 108.7 3.3 Dues to government authorities 23.4 3.4 Contractors 45.3 I I 3.5 Others 34.1 I 14. Due to TDA (Share) 129.5 5. Provision (cost for development of sold land) 151.5 I 16. Bank Facilities 13.3 i7. Income Tax 12.1 I 34 Investor Presentation FY 2016 ERC Egyptian Resorts Company#35AGENDA 1 2 3 4 5 Investment Highlights ERC - A Leading Master and Real Estate Developer Corporate History and Recent Events Sahl Hasheesh - ERC's Mega Resort Community Market Opportunity Summary Appendices#36ERC's Vision, Mission & Strategy VISION To become a regional master developer of international-standard mega communities by designing and implementing a world-class, master- designed, developed and controlled community standard, with the aim of redefining Egyptian urban planning, from every aspect of the world's best international communities and developments. MISSION To make our shareholders proud of the company's standards, reputation, operational performance and financial performance by creating memorable destinations and by being a reliable partner to our sub-developers and investors. STRATEGY To successfully implement the identified initiatives to ensure the success of our main product, the Sahl Hasheesh International Resort Community, and to be flexible during uncertainty by continuously searching for organic and inorganic growth opportunities that diversify and enhance our sustainable long-term income-generating ability. The search for opportunities will consider forward integration in the real estate value chain as well as investments across different real estate segments, sectors and geographies. 36 Investor Presentation FY 2016 ERC Egyptian Resorts Company#37Management Team (1/2) Wael El-Hatow, Chief Executive Officer Mr. El Hatow is a veteran of the private equity industry, having served as Chief Investment Officer/Executive Director at Al Ahly Capital for 7 years. Prior to his role with Al Ahly, Mr. El-Hatow was with HC Securities and Investment for 10 years and served as Head of Investment Banking from 2004 to 2009. Mr. El-Hatow has also been a member of ERC's board since 2010. Mr. El-Hatow, earned his BA in political science from the American University in Cairo and his MBA from Pennsylvania State University. Mohamed Saad, General Manager Site Operations Mr. Saad joined ERC from Misr American Carpet Company (MAC), where he was the Regional Business Manager (Middle East and Africa). Previously, as a General Manager with El Sewedy Electrical Group, he was responsible for business development and sales of major electrical infrastructure projects, including power stations, substations and transmission and distribution networks. Mr. Saad holds a Bachelor's degree in Electrical Power and Machines Engineering from Cairo University. Wael Abou Alam, Chief Financial Officer Prior to joining ERC, Mr. Abou Alam was the Group Financial Controller for Gozour, Citadel Capital's food holding company, which comprises a number of leading brands such as Rashidi Al Mizan, El Masreyeen, Enjoy and Dina Farms. Prior to this position, he was the Financial Planning, Analysis & Reporting Manager for Misr American Carpet Company (MAC). Mr. Abou Alam was also employed by ExxonMobil for over 14 years, rising to become the North Africa Cluster Fuel Marketing Business Analysis & Reporting Manager. Mr. Abou Alam holds a Bachelor's degree in Accounting from Cairo University and an MBA in Banking & Finance from the Maastricht School of Management. Hazem Kassem, Director - Approvals & Compliance Prior to joining ERC in 2008, Mr. Kassem launched an architecture and interior design firm in Cairo that has, over a seven year span, successfully delivered more than 45 commercial and residential projects in Egypt and London. Mr. Kassem holds a Bachelor's degree in Architectural Engineering and Environmental Design from the Arab Academy for Science and Technology. Osama Shendy, Director ― Human Resources Mr. Shendy joined ERC with 19 years' experience, bringing his extensive expertise in strategic planning, restructuring, organizational development, human resources management and quality management systems. Prior to joining ERC, Mr. Shendy acted as lead consultant for numerous organizations such as Arabian Cement Company, Kobusch Packaging Egypt, Al Rajhi Investments and Contact Group, to name a few, in addition to being Director of HR and Organizational Development at El Sewedy, Mobica and MAC Carpets. Mr. Shendy was also a National Business Planning Consultant for FAO (UN) in addition to having been a member of the Board of Advisors for the National Award for Excellence for both Government & Business Sectors. Mr. Shendy holds an MBA in Corporate Strategy and Economic Policy from the Maastricht School of Management, and is a certified assessor for business excellence as well as a Certified Management Consultant from the Institute of Management Consultancy, the UK. Sameh Hashad - Director of Community Engineering Mr. Hashad has over 20 years of experience in the field of construction engineering and large-scale project development. He joined ERC in 1998 as an Assistant Construction Manager and has since worked on various projects, most notably Arrival Piazza as well as eight commercial shopping centers around Sahl Hasheesh on Egypt's Red Sea coast. Prior to joining ERC, Mr. Hashad worked for a number of reputable Egyptian and Saudi developers and was involved in the planning and execution of major projects, including renovation and construction work on King Abdulaziz University. Mr. Hashad holds a Bachelor's degree in Civil Engineering as well as a diploma in Soil Mechanics and Foundations from Cairo University. Sherif Omar, Director - Planning and Design Mr. Omar joined ERC in 2003 as Chief Mechanical Engineer, supervising a number of projects including the construction of a sewage treatment plant and a water pump station. He became Head of Infrastructure, Planning and Design in 2010. Prior to joining ERC, Mr. Omar was a Technical Office Project Engineer, and later a Project Manager at the Arab Engineering Company. He holds a BSc in Mechanical Engineering from Cairo University. 37 Investor Presentation FY 2016 ERC Egyptian Resorts Company#38Management Team (2/2) Ahmed Fahmy, Head of Information and Communication Technology Mr. Fahmy has more than ten years of experience in the Information and Communication Technology (ICT) field. He is responsible for preparing ICT related strategic and operational plans, including designing and managing the ICT infrastructure, networks and several ICT solutions, as well as supervising the implementation of the ICT security strategy. Prior to Joining ERC, Mr. Fahmy held several IT positions in real estate and IT-solution companies. Mr. Fahmy holds a Bachelor's degree in Telecommunication and Electronic Engineering. Karim Samy, Head of Community Development Mr. Samy has over a decade of experience in the fields of hospitality sales and operations, having launched his career in year 2001 at the Marriott's global sales office in Cairo, where he grew quickly from his role as a sales executive to become an assistant sales manager handling strategic accounts. He joined Sahl Hasheesh in 2014 as the senior manager of community development and was named head of department in 2016. Prior to his time at ERC, Mr. Samy had served in senior sales positions with a number of reputable players in the hospitality field that included the likes of the Hilton, Intercontinental, Sheraton, Dusit Thani, Azzurra (Sahl Hasheesh), and Xperience Hospitality. He holds a Bachelor's degree in hotel management. Laila Karim, Head of Marketing Ms. Karim joined ERC as Marketing Manager with her core job responsibilities including analyzing market trends, leading all areas of content generation and production across all media platforms, and creating and leading a marketing team that will develop and execute new marketing concepts, business models, communication channels, and establish new partnerships to help position business as an innovator and market leader. Prior to joining ERC, Ms. Karim held a number of key positions in companies such as AAPIC and BioGeometry Canada. Ms. Karim holds a Bachelor's degree in Communications Studies with a specialization in Public Relations from California State University, as well as an Interior Design Diploma from American River College in Sacramento, and a M.A. degree in Interior Design from Florence Design Academy. . May El Batouti, Head Of Legal May El Batouti joined ERC as Head of the Legal Department, advising the Company's management, Executive Board and membership on all legal aspects of the Company's operations, including its regulatory, advisory and litigation functions. Prior to joining ERC, Ms. El Batouti was a senior associate in Hafez Law Firm, a litigation house specializing in International Arbitration. In 2007, she was a Senior Legal Advisor at Orascom Construction. Ms. El Batouti graduated from Université Paris 1 Panthéon-Sorbonne as well as Cairo University through the "Institute for International Business Law" in 2003. She holds a Masters' degree in comparative law from the American University in Cairo in 2009 and is a member of the Egyptian Lawyer Syndicate. Nazih Seoudy, Head of Developer Services Mr. Seoudy joined ERC with over 20 years of experience at Xerox Egypt, where he held a number of positions including Director of Customer Services and National Service Manager. Prior to joining ERC, Mr. Seoudy was Director of the Customer Care Department at EMAAR Misr, before joining MAC Carpets as Director of Customer Relations Management. Mr. Seoudy holds a BSc in Electrical Engineering and Communications from Ain Shams University and is also a certified Lean Six Sigma Green Belt. Sadek Soliman, Head of Technical Office Eng. Sadek has over 20 years of practical experience in the field of management and construction of residential, tourism-centered, and infrastructure-related projects, in addition to his extensive expertise in contract drafting and tender processes. He joined ERC in 1998 as a quality control and inspection engineer and has since been promoted to a number of technical and managerial positions, including chief contract administrator and resource manager in 2008 and senior manager of the technical office in 2013. Prior to joining ERC, Eng. Sadek spent several years at the Mediterranean Contracting Company, where he oversaw the the construction of a number of reputable tourism projects in Hurghada, such as the Marriott Hotel, Palm Beach Hotel, and the Giftun Resort. Eng. Sadek holds a Bachelor's degree in Civil Engineering from Zagazig University. Sayed Amer, Head of Accounting Mr. Amer has more than 18 years of experience in the field of accounting and auditing. Prior to joining ERC, Mr. Amer spent 14 years of his career as a senior audit manager at KPMG Hazem Hassan, Egypt. He was responsible for the diligent review of audit documents and ensuring compliance with the firm's methodology and applicable auditing standards. Mr. Amer is a member of the Egyptian Society for Accountants and Auditors (ESAA). He holds a Bachelor's degree in Commerce from Cairo University with a major in Accounting. 38 Investor Presentation FY 2016 ERC Egyptian Resorts Company#39Select Consolidated Financials From the Income Statement (EGP mn) 2009 2010 2011 2012 2013 2014 2015 2016 Revenue 25.8 14.9 28.2 40.5 28.9 51.3 400.4 207.9 Gross Profit 12.1 (5.8) (2) (11.3) (23.1) (42.4) 241.9 84.1 EBT 3.9 (7.8) (3.2) (106.9) (43.1) (40.5) 216.6 105.2 Net Income 4.7 (9.4) (7.4) (110.0) (47.7) (41.4) 217.5 10.2 From the Balance Sheet (EGP mn) 2009 2010 2011 2012 2013 2014 2015 2016 Cash & Treasury Bills 309.2 273.8 200.0 162.0 109 98.1 135.6 131.2 Receivables 443.5 331.9 384.2 336.2 328.9 342.0 619.5 1,284.7 Short-term liabilities 248.1 238.6 260.0 271.1 236.3 271.6 463.3 674.7 Long-term liabilities 192.1 208.1 216.4 226.9 252.4 260.6 273.5 748.8 39 Investor Presentation FY 2016 ERC Egyptian Resorts Company#40SAWARI SAHL HASHEESH RED SEA, EGYPT TAWAYA SAHL HASHEESH SENSATIONALLY YOURS Jamaran SAHL HASHEESH لقدـ OLD TOWN SAHL HASHEESH The Marina of Sahl Hasheesh, under development An exclusive waterfront residential project in the Old Town of Sahl Hasheesh In-house development of sea- front residential villas with exquisite open water views and large garden areas The downtown commercial area and public beach of Sahl Hasheesh. Developed by Sahl Hasheesh Co., the subsidiary of ERC#41ERC Egyptian Resorts Company www.erc-egypt.com www.sahlhasheesh.com