#1F LAb TMG Holding STRATEGY PRESENTATION SEPTEMBER 2018#2பர்0ே TMG Holding Disclaimer Certain information disclosed in this presentation consists of forward looking statements reflecting the current view of the company with respect to future events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including worldwide account of trends, economic and political climate of Egypt, the Middle East, and changes in business strategy and various other factors. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described in such forward looking statements. Investor presentation 2#3பர்0ே TMG Holding TMG at a glance [TMGH.CA/TMGH EY] as at end-1H2018 #1 Egyptian RE developer by market cap 30+ years track record New sales [EGPbn] MENA's leading developer(5) 84k+ / 3,048 units sold (since inception / 1H2018 only) Backlog [EGPbn] 38.0 12.9 24.6 5.2 1H2017 1H2018 Expected net cash flow from backlog and delivered units [EGPbn] 8.4 11.4 1H2017 1H2018 1H2017 1H2018 c16mn sqm remaining BuA c3.5mn BuA commercial BTS and BTL c70k+ units delivered (since inception) Highest cumulative deliveries by a single MENA developer Remaining collections [EGPbn] 16.5 27.4 1H2017 1H2018 Net cash position [EGPbn] 0.8 3.1 1H2017 1H2018 875 operational hotel rooms 443 rooms under development(1) 121.5k sqm GLA portfolio (2) 35.5k sqm GLA leased 197k club membership capacity(3) c151k memberships yet to be sold Egypt's leading developer of premium master planned communities with sufficient land bank for 17 Years and Sizeable Portfolio of Recurring Income Assets now contributing 25% of GOP for 2017 (4) and planned to increase to 40-45% Note (1): Includes Four Seasons Sharm El Sheikh extension (under construction) and Four Seasons Madinaty (in design phase) Note (2): Includes Open Air mall (plan to open in 2019) Note (3): Substantial high-margin revenue stream with limited CapEx needs overlooked by the market, to deliver exponential growth mimicking accelerated population build-up Note (4): Contributed 27% in 1H2018 Note (5): By number of units delivered Investor presentation 3#4TMG Holding We continue to deliver on our key strategic priorities previously communicated to the market 1 Achieving robust growth in sales New sales [EGPbn] 5.2 Backlog [EGPbn] 38.0 12.9 24.6 2 Continue building our recurring income portfolio - - target 40-45% of Gross Profit by 2020, up from 25% in 2017 179 326 1H2017 1H2018 1H2017 1H2018 Hospitality EBITDA [EGPmn] (1) 36.0% 43.4% 1H2017 1H2018 The Group invested EGP1bn to increase its stake in ICON to 83.3% Signed JLL to manage and operate Open Air Mall in Madinaty Signed Carrefour as anchor tenant in Rehab & Madinaty malls, planned to open in September 2018 3 Executing the Group's strategy of monetizing non-core assets TMG Holding EGP1bn proceeds from the transaction E EFG HERMES EDUCATION المجموعة المالية هيرميس 4 Disciplined approach for land acquisitions while managing financial risk Strategic land CELIA NEW CAPITAL CEGP10.3bn of sales as of mid- August 2018 5 Preserving capital appreciation while providing a dividend stream Note (1): Hospitality EBITA reached EGP344mn until July 2018 Mission: Provide exceptional services to all our clients and ensure great customer experience and capitalize on such client base for new projects Investor presentation 4#5பர்0ே TMG Holding Strategic vision allowed for early foothold in rapidly urbanizing East Cairo 1997 2017 Population: 30k Population: 4.5mn 2007 2027 Population: 1.5mn Expected population: 10mn Investor presentation 5#6TMG Holding Case in point: successful launch of Celia - a testament to the strength of TMG brand Major corporate revamp since July 2017 - unmatched brand equity of TMG in the Egyptian market Celia is a new mixed-use development located on 500 feddans in the New Administrative Capital (NAC) - largest land plot launched in NAC to date Total residential BuA of c1.03mn sqm Launched in June 2018 with net sales reaching CEGP10.3bn by mid-August, less than three months since launch(1) - project to be completed within the next 5 - 7 years Very good market reception as a testimony to brand equity Significant pent-up demand in location despite earlier launches by smaller companies before the launch of Celia Good outlook on demand dynamics following launch More than 16% of clients are returning clients ■Well-diversified offering portfolio: Four types of multitenant buildings, 8 floors each Five types of stand-alone units ranging from 213 to 373 sqm per unit Master plan accommodates for a sporting club and basic services Land purchased in 2017 for EGP2,100/sqm, payable over 9 years (10% down payment, 2 years grace period + 7 years installments, interest of 10% only) Note (1): Sales until end-1H2018 reached EGP7.2bn Sales status as at 1H2018 100% 80% 500 feddans Celia land area 1.03mn sqm Total residential area 60% 4,799 807 40% 20% 1,697 258 Total net sales since launch until end-1H2018 (in 25 days) 0% Apartments Villas Units sold Units unsold CEGP7.2bn BuA breakdown by type Units breakdown by type 13% 22% 65% 86% 14% 1,955 units (c26%) Units sold until end-1H2018 7,561 units Total residential units for sale CELIA NEW CAPITAL ■ Villas Apartments Services Villas Apartments#7TMG Holding We are on track to achieve all-time high sales We are benefiting from constant population build-up in our projects, allowing us to monetize our recurring income assets which has a positive impact on our gross profit. Strong line-up of non-residential BuA for sale expected in 2H2018 (1) EGPbn Evolution of total presales accross our projects 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 13.9 0.7 3.1 2.0 3.5 5.9 5.9 6.1 6.6 13.1 5.2 12.9 +100% y-o-y +150% y-o-y ا أس....ا 97 2.7 5 5 13.9 1.8 11.1 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H17 1H18 ■Non-residential ■Net residential Note (1): Non-residential sales are usually concentrated in the last 4 months of the year Total presales Investor presentation 7#8TMG Holding Exceptional Performance in 2H2017 and 2018 outperforming all peers - demand/supply gap in market still exists Sales of other market players (1) [EGPbn] Units delivered in 2017(1) 12.0 8.6 9.8 EMAAR 2015 2016 2017 1,386(2) 10.5 8.5 PALM HILLS 6.3 DEVELOPMENTS 1,781(2) 2015 2016 2017 SODIC 5.9 5.9 Human Developments 4.6 1,151(2) 2015 2016 2017 5.1 مدينة نصر للإسكان والتعمير 3.4 MADINET NASR HOUSING & DEVELOPMENT 0.9 2015 2016 2017 Note (1): Source: Companies and sell-side reports; Note (2): Includes second home-deliveries; 536 Total 4,854 units delivered Annual supply by Tier 1 listed developers still well below our estimates of market demand by mid-to-high income household segment of at least 50k units per annum TMG delivered over 5.1k units in 2017 alone Investor presentation 8#9பர்0ே TMG Holding On track with our monetization plan Education alliance between TMG Holding, GEMS Education and EFG Hermes In line with our previously announced strategy, the company has been successful in monetizing some of its non-core assets that were not captured by the market. In May 2018, GEMS Education and EFG Hermes entered into a strategic alliance with TMG to acquire, operate and develop k-12 schools in Al Rehab and Madinaty. ■Under this agreement, GEMS Education and EFG Hermes Private Equity acquired 4 schools for a total consideration of EGP1.0bn. ■More non-core assets have been slated for similar transactions and we will be updating the market once these transactions are concluded. U TMG Holding Grills = EFG HERMES EDUCATION المجموعة المالية هيرميس Investor presentation 9#10TMG Holding Continue investing in hotel portfolio – significant improvement across all KPIs Four Seasons Sharm El Sheikh [200 keys, opened 2001] Four Seasons Nile Plaza, Cairo [366 keys, opened 2004] EGPmn Hospitality segment recovery 0 YTD Jul 17 267 YTD Jul 18 438 זיייווון זן 1,200 53% 10% 0% 30% 20% 60% 50% 50% 40% Four Seasons San Stafano, Alexandria [118 keys, opened 2007] Kempinski Nile Hotel, Cairo [191 keys, opened 2010] KEMPINSKI ■Revenue GOP ⚫ GOP margin (RHS) ⚫ EBITDA margin (RHS) Freed liquidity from monetizing non-core assets and invested EGP1.0bn in ICON in a value accretive transaction, increasing stake in TMG's yielding hospitality segment to 83.3% 443 new keys under development: 346 keys in FS Madinaty + 121 residential units, construction breaking ground in 2018, to be completed in 2020 97 keys in FS Sharm El Sheikh ext. + 69 residential units; under construction, to be completed in 2019 Ongoing partial renovation of FS Nile Plaza Investor presentation 10#11EGPmn EGPmn TMG Holding Continue building our recurring income portfolio – target 40-45% of consolidated gross profit Revenue and occupancy rate 800 700 52% 600 500 400 300 200 100 496 0 1H2017 Revenue 64% 753 1H2018 Occupancy EBITDA and EBITDA margin 350 300 36% 250 200 150 100 50 0 43% Hotel rooms evolution 1,318 346 97 875 2017 1H2019 FS Sharm El Sheikh Ext. Dec-2020 Four Seasons Madinaty (construction to start in 2018) 2021 target Short-term initiatives - ongoing 179 326 ■ 97 hotel keys 1H2017 1H2018 EBITDA % margin Four Seasons Sharm El Shaikh ■ 69 residential Units Licenses/permits Issued Four Seasons Nile Plaza Renovation plan ongoing Execution to start in 2018 ■ Self-funded from existing cash resources Four Seasons Madinaty ■ 346 Hotel Keys ■ 121 residential units Design ongoing Investor presentation 11#12TMG Holding Continue building our recurring income portfolio – target 40-45% of consolidated gross profit Retail GLA 140 120 k sqm 28882 20 100 35.5 86 121.5 0 Leased GLA Mall of Madinaty opening (start operations in 2019) Total GLA The Group is in process of appointing an international operator to operate and manage its BTL retail portfolio; appointing an experienced VP to manage the portfolio Remaining CAPEX EGP1.1bn Target 2020 revenue EGP423mn Target EBITDA margin 92.5% Target 2020 EBITDA EGP392mn Note (*): Currently at EGP80-90k, below market rates as memberships are not yet availed to external buyers Club memberships 250 k memberships 200 150 100 50 50 46 151 197 0 Sold memberships Memberships to be sold Total memberships Remaining CAPEX EGP1.3bn Avg. membership EGP100-200k* Target aggregate cash inflows from memberships sold EGP20-23bn in the next 10 years Investor presentation 12#13TMG Holding Maintain robust growth in sales in existing projects The Spine(1) Fully integrated residential complex including retail, leisure, hospitality, and offices designed to international standards 2.5mn sqm land area 3.7mn sqm total BuA MADINATY OVERALL MASTER PLAN 13 years of development 2.3mn sqm of residential BuA Strategic location 50KM TO CARO Quality infrastructure Note (1): Areas subject to change as per the final master plan and utilization GOLF RESORT & GOU COMMUNITIES 30KM TO NEW CARO MAJOR ACCESS BUSINESS & CONFERENCE CENTER DAY MOSQUE & SPORTS AREA MEGA MA DOWNTOWN RESIDENTIAL UPTOWN CBD RESIDENTIAL MASER ACCESS ESDENTU 100KM TO SUEZ EDUCATION MORQUE & SPORTS AREA Unique accessibility Downtown Civic Spine Superior quality standards Uptown Investor presentation 13#14TMG Holding Continue building our recurring income portfolio – target 40-45% of consolidated gross profit The Spine(1) 500-700k sqm of retail portfolio 60:40% / BTS:BTL 200k sqm of office GLA 20:80%/ BTS:BTL 600+ hotel keys to be managed by operators We intend to accelerate the development of Our Flagship Project, the Spine, through a potential partnership - to Create Value to the Rest of Madinaty Project and in turn the Group Note (1): Areas subject to change as per the final master plan and utilization Investor presentation 14#15TMG Holding Maintain robust growth in sales in existing projects Historical sales EGP11.4bn of net cash flow from backlog and delivered units EGP38.0bn of backlog Avg. gross profit margin 30%-35% Unlaunched residential BuA 12.5mn sqm Target gross profit margin 30%-35% Non-residential BuA/land 6.3mn sqm of land (of which 237k sqm in Alrehab) translating into BUA of 3.5mn sqm This area will be split between BTS and BTL assets Average gross profit margin for BTS 75% Land bank sufficient for the next 17 years Sell all remaining units in Alrehab and Alrabwa in the short term ■Target 3,500 residential units to be launched each year BTS strategy preferred over land sales to unlock additional value Plan to sell over the next 10 years, assets that are non core to our recurring income hold/BTL strategy Significant cash flows expected from the sale of residential and BTS commercial units to fund: Dividends Note: all estimates stated at today's market prices, figures as at end-1Q2018 Building recurring income portfolio Acquisitions of land Investor presentation 15#16பர்0ே TMG Holding Monetize value of certain assets at the right timing Potential monetization plan In that regard we have successfully monetized EGP1bn from the schools that we have built in our projects to GEMS/ EFG as operators, which had very minimal contribution to our profits and used the proceeds to invest in the hospitality business in what we believe is a value accretive transaction We believe that today the market does not ascribe value to most of our recurring income portfolio (namely hotels, retail, clubs, and non-residential land bank) which offers a significant long-term upside for equity investors We will keep monitoring the performance of such businesses and invest to grow them over the coming period provided such new investments meet our target returns criteria Once these assets reach a stage of maturity to run on their own and continue the current growth trend independently we will start exploring our monetization options Such monetization options will include either IPOs or M&As that would create value to the Group For smaller non-core assets, we will aim to fully divest to an Operator that would create further value to our communities Proceeds from such monetization plan will finance dividends and business growth Investor presentation 16#17பர்0ே TMG Holding Disciplined and selective land acquisition approach Strategic acquisition criteria ■Large plots that allow for the development of urban communities targeting the middle to upper middle classes Focus on Greater Cairo primarily, and the North Coast can also be selectively considered Financial acquisition criteria Preference towards cash acquisitions to manage financial risk ■ Opportunistically consider JVs or revenue/profit sharing while maintaining control ■Target minimum gross profit margin of 30%-35% Current land bank sufficient for 17 years In line with development timeframe allowed by land contracts Investor presentation 17#18பர்0ே TMG Holding Preserving capital appreciation while providing a dividend stream Net cash from contracted sales ■CEGP11.4bn net cash flow pre-tax from backlog sales Net cash from future residential launches Cash profits from BTS commercial sales Cash inflows from club memberships sold Value realization from recurring income portfolio 12.5 mn sqm (BUA) of BTS residential assets to be launched and sold in the next 10 - 15 years ■Average GP margin of 30-35% ■2.1 mn sqm (BuA) (1.5 mn sqm of net sellable area) of BTS commercial assets to be launched and sold in the next 10 years ■ Average GP margin of 75% Avg. sales price of at least EGP16k/sqm at current market prices Avg. sales price of at least EGP100k/sqm at current market prices EGP20-23bn of aggregated cash inflows in the next 10 years ■Based on target to sell 154,000 additional memberships in Alrehab Club and Madinaty Club (only EGP1.3 1.4bn CAPEX remaining) ■Target 2020e EBITDA EGP392mn for retail (existing & under-construction) ■■2020e EBITDA of at least EGP720mn for operational hotels Market does not assign value to these assets in management's views. We will plan to realize value from these once they reach a state of maturity Investor presentation 18#19TMG Holding Group structure Talaat Moustafa Group Holding 100% 99.6% Alexandria Co. for Urban Development 100% Alexandria Real Estate Co. 100% 100% San Stefano Real Estate Co. 99.9% 100% May Fair 83.3% Arab Co. for Hotels & Tourism Inv. 9.87% 100% FS Sharm El Sheikh & Ext. 84.47% San Stefano Grand Plaza* 100% 59.04% Kempinski Nile Hotel 100% FS Nile Plaza Rawba Legend: Madinaty 8.99% Direct holding Rehab Celia Direct & indirect holding San Stefano Complex* 100% Arab Co. for Urban Dev. & Projects Notes: (*) ICON holds only the hotel assets while residential units and retail property is held by San Stefano Real Estae Co., fully woned by the holding company Investor presentation 19#20AS= TMG Holding Thank you