#1INVESTOR PRESENTATION Full Year 2017 ERC Egyptian Resorts Company#2Executive Summary#3A Fully Integrated Real Estate Developer Egyptian Resorts Company is a fully-integrated real estate developer, covering the entire value chain including master development, real estate development, infrastructure development, facility and community management Off-plan residential offerings and commercial projects, including retail, hospitality and offices State-of-the-art infrastructure facilities including power generation and distribution, water/sewage treatment and fiber optic communications Investor Presentation FY2017 Real Estate Development Master Development Infrastructure Development Facilities & Community Management %/ Master developer with an array of commercial offerings and a comprehensive product portfolio % Facility and community management services including maintenance, security, housekeeping and landscaping 3#4Key Performance Indicators EGP 116mn Real Estate Contracted Sales (2017) EGP 225 mn Contracted Land Sales (2017) EGP 54 mn Utilities Revenue (2017) EGP 21 mn Facility Management Revenue (2017) EGP 281 mn Total FY17 Recognized Revenues EGP 69.5 mn FY17 Net Profit, 25% margin 3.4 mn sqm Total land bank C.49K BUA Retail, Office, hospitality, services, and residential property under development EGP 18-20k Average BUA Selling Prices 77 Units under Construction EGP 1.4 bn Accounts Receivable as of December 31st, 2017 +20 years of building world-class communities Investor Presentation FY2017 4#5Key Operational Developments ☑ BO: Land Plot Sales ERC realized revenues of EGP 167.4 million from land plot sales during 2017. ERC is expecting sub- developers' appetite for land to grow in the coming period. Tawaya Tawaya's contracted sales reached EGP183 million. Currently, around 59% of the project has been sold, contracted or reserved with expectations to sell out by year 2018. Investor Presentation FY2017 - - Recurring Income Retail revenues: EGP 7.2 mn Utilities revenues: EGP 54 mn Facility management: EGP 21 mn Total Recurring revenues: EGP 82.4 (in 2017) Events On April 2017, byGanz Extraordinaire hosted a three-day event featuring daytime beach activities and evening entertainment in collaboration with Blue Marlin UAE Sahl Hasheesh hosted the bi-annual triathlon with Trifactory during 2017, with 600 athletes from Egypt and across the world competing in a variety of exciting races. On 2018's New Year's Eve Sahl Hasheesh hosted a distinguished celebration. 5#6Overview of ERC#7Real Estate Development ERC's strategic real estate projects span the residential, commercial and touristic offerings Off-plan residential offerings Recurring revenue projects Mixed-use areas Self-financed high and middle income projects ERC's off-plan residential project launches to date include Tawaya and Jamaran ERC develops and manages recurring revenue projects including retail, hospitality, commercial and value adding services ERC is the sole developer of Sahl Hasheesh's Phase I and Phase II downtown area Old Town Retail is the development's premiere shopping and leisure destination EGP 265 mn Real Estate (Tawaya & Jamaran ) Contracted Sales since project inception Investor Presentation FY2017 EGP 2.5mn + Old Town Rental Revenues EGP 4.7 mn F&B Outlets & Other Income EGP 7.2 mn Retail Revenues in 2017 14,689 sqm Land Area of mixed use: Retail, Office, Hospitality, Services, and Residential 7#8Our Projects Portfolio Jamaran SAHL HASHEESH TAWAYA KARE AUSTER SENSATIONALLY YOURS OLD TOWN SAHL HASHEESH Jamaran Tawaya Old Town Type Type Residential Residential Туре Retail, Office, Residential, Hospitality & Services Total Land Area of Jamaran Development (sqm) 265,000 Total Land Area (sqm) 13,290 Total Land Area (sqm) 14,689 Total Land Area of Jamaran Villas (sqm) 30,000 Total Sellable BUA (sqm) Launched 18,600 2015 Total BUA (sqm) 49,355 Launched 2014 Launched 2010 Percent Sold 59% Percent Sold 87% Target Completion Date Target Completion Date 2019 2019 Contracts since inception EGP 83 Mn Contracted Sales since inception EGP 183 Mn Retail and Office Area Total Retail and Office Leasable BUA (sqm) Percent Retail Leased 8,740 20% Investor Presentation FY2017 8#9Projects Portfolio: Tawaya Exclusive bay view waterfront residential project in the Old Town of Sahl Hasheesh by ERC & Palm Hills Developments Sellable BUA # of units (including roofs) Unit sizes Sales window Expected delivery Expected Project Proceeds Value of Units Contracted Recognized Revenues 18,400 m2 164 60-294 m2 Opened April 2015 2018-19 c.EGP 325 million EGP 183 million EGP 29 million 1 Investor Presentation FY2017 9#10Projects Portfolio: Jamaran Development Investor Presentation FY2017 An exclusive enclave of sea-side villas along the coast of Sahl Hasheesh An exclusive enclave of sea-side villas along the coast of Sahl Hasheesh 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, washrooms, spacious kitchens and living rooms, private backyard pools and rooftop terraces, all with sea view Total Land Area ERC Jamaran Villas Land Area ERC Jamaran Villas 265,000 m² 30,000 m² 30 4 Total Residential BUA 10,000 m² Villa Land Area (average) Villa BUA ATS Villas Total contracted revenues Plots Sold - Private Design Land Area Plots Sold Private Design Total contracted revenues Amaros Twin-Villas Land Area (Sub-Developer) Number of Plots Total contracted revenues Red Coral Apartments Land Area (Sub- Developer) 1,000 m² 369-406 m² EGP75,000,000 130,000 m² 130 EGP117,220,000 14,525 m² 14 EGP11,550,000 8,282 m² Number of Plots 7 Total contracted revenues EGP10,435,320 10#11Projects Portfolio: Old Town • Located at the heart of Sahl Hasheesh and overlooking the seaside promenade, Old Town is the development's bustling downtown area Premiere shopping and leisure destination with retail stores, restaurants, cafes, spas and various water sport activities Component Quantity Retail Shops (incl. F&B) 114 Office Space 3 Halls Tenor BUS STOP SAHL HASHEESH ILGELATO DI LIALINA SAILORS Total BUA (sqm) BESTWAY Supermarket Colliers INTERNATIONAL ERC consulted with Colliers International in 2017 on the retail strategy for Old Town Grace Period 5 years Longer tenors are subject to BoD approval 2 years c. 7,343 c. 1,397 Rental Scheme Annual Escalation Security Deposit A - Fixed monthly rental fee/sqm based on activity and location, and B - Revenue sharing agreement (0% during grace period / 10% yrs 3 & 4 / 15% yr 5) 10% on rental price applicable starting the grace period. On the first year of payment (year 3) tenants will pay the contractual monthly rent + 20% Three-months rent Maintenance Fee EGP 15 / sqm in 2017 with a 10% annual increase starting in 2018 Termination Penalty In cases in which a lessee terminates the contract before the lapse of the lease term, the lessee will pay the value of the rent for the grace period Investor Presentation FY2017 XXXXX Leardone 11#12Real Estate Development Forward-Looking Strategy ERC's forward-looking strategy for its real estate development segment will see it revitalize existing projects to extract higher value as well as roll-out new off-plan residential and recurring income developments Upcoming Projects Low & Middle Income Staff Housing The Boardwalk Retail Develop low and middle-income housing for sale and lease to the local area staff • ⚫ Launch the Boardwalk as one cohesive project that incorporates the 12KM promenade, the jetties, the pier, the public beaches and easements with retail outlets (kiosks, food trucks etc.) Entrepreneurial & Start-up Hub (Business Park) • In partnership with KarmBuild and Rise Up, ERC aims to develop the first startup hub on the Red Sea with 15,000 sqm of GLA Education • Provide incentives for educational developments in- line with ERC's strategy of building fully-integrated communities Healthcare • Provide incentives for developing healthcare facilities to ensure residents have access to state-of-art medical care Investor Presentation FY2017 12#13Master Development ERC master develops mega projects and world-class communities, offering land parcels for hotels, residential apartments, villas, golf courses and other leisure real estate properties Land Identification/ Acquisition Master Planning Land Sales Surveying the market for premium mega land banks Land acquisition through cash payments and/or land swap as well as JVs World-class master planners Design and construction guidelines and compliance 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 6.2 mn sqm Sold land area since inception 3.4mn sqm total land bank Area EGP 167.4mn Recognized land sales of 2017 0.9 mn sqm total land bank's Hospitality BUA 1.4 mn sqm total land bank's Residential BUA 15k-20k Avg. Selling Price/sqm for land bank's Residential BUA Investor Presentation FY2017 13#14Master Development Forward-Looking Strategy Introduce amenities for non-premium parcels ERC is updating its master plan to reflect the changing market dynamics and better target unserved demand % Improve commercial offerings with structured products / pre-designated land plot (schools, hospitals) Offer pre-packaged development solutions to potential investors Create pre-packaged land parcels of different sizes, appealing to a wider range of investors ERC is currently working to improve its commercial offerings in the master development field and expand its product portfolio Adopt a "Push" approach. Incorporate BUA into new land price. Investor Presentation FY2017 14#15Infrastructure Development ERC's extensive infrastructure investments position it as the exclusive utilities and services provider - a model that generates sustainable cash flows Water & Irrigation Power & Electricity Communication ERC invests in desalination plants and delivers water & irrigation needs with plug-in expansion capabilities ERC's power distribution network ensures capacity secured well in advance of requirements ERC invests in IT equipment and fiber optic network throughout the entire site delivering VOIP, Internet and IPTV 14,000 m3 daily desalination capacity 7,500 m3 daily waste water treatment capacity 20 MVA power distribution capacity 63,207 km in electrical networks 13,000 m 13 cellular towers optical fiber network Investor Presentation FY2017 DECHTEL Operating Partners VEOLIA ENVIRONNEMENT HEPCA CARING FOR THE RED SEA FRYST BODY CORPORATE MANAGEMENT LEADE 15#16Water & Irrigation Management of ERC's desalination plant and water treatment equipment is subcontracted for a fixed fee, while water is sold at market rates Water & Irrigation Sewage Treatment ADESA Pricing 14,000m3/day desalination plant Water network of 31,283m Water storage capacity of 12,000 m3 Main irrigation network of 16,994m and surface irrigation network of 113,317m Irrigation water storage capacity of 6,000m3 and pumps facility of 6,000 m3/day 7,500m3/day waste water treatment facility 8 operative lift pump stations The main network of 14,085 m and gravity network of 26,069 m Volume and quality-based pricing Potable: ° Apartments: EGP 18.50 per m³ Hotels: EGP 13.00 per m³ Irrigation: For Real Estate Projects: EGP 7.5 per m³ For Hotels: EGP 5.25 per m³ Investor Presentation FY2017 16#17Electricity 20 MVA capacity ERC is a licensed electricity generator and distributor with an electricity sub-station in the design phase Key Facts Operational Update A contract was signed with Canal Company to supply 20 MVA of electricity 5 electrical networks (128, 478 m) were established to serve phases 1 and 2 An approval was received to establish a 22/66 KV substation with production capacity of 100 MVA to cover phases 1 and 2 future requirements 63,207 m of power cables were installed for internal road lighting Investor Presentation FY2017 Budgeted CAPEX of EGP 180 million for a new substation (Phase 1: 50 MVA) 17#18Communication ERC's IT equipment and fiber optic networks support high-speed internet, video on demand, internet protocol television among other services Key Facts Key Facts (Continued) 13,000 m optical fiber network 4,500 m sub-optical fiber network 13 cellular towers TEVOTECH/Vodafone & Orange & Noor & Etisalat selected as business partners ¡BAHN, leading IPTV, Video on Demand (VOD) service provider, serving all elected projects TEVOTECH offering triple-play broadband services to sub-developers TEVOTECH, Orange, Noor and Etisalat offering high-speed internet services to sub-developers Investor Presentation FY2017 • * Pricing • ERC's revenue share = 10%-40% of revenues ERC leases 13 mobile towers plots to Vodafone & Orange & Etisalat (revenue generating) 18#19Infrastructure Development Forward-Looking Strategy ERC aims to restructure its infrastructure assets as into independent revenue generating profit centers to unlock value and growth Production / Treatment Power Substation Desalination Biogas Units & Solar Sewage Treatment Restructuring Independent Entities Allowing for Distribution Power Distribution Networks Desalinated Water, Irrigation Water, Sewage Networks and Pumping Stations Unlocking Captive Capital Independent Business Through a Leveraged- Servicing Third Parties Models Increased Utilization & Maximizing Returns Stable, Long-term Cash Flow Streams recapitalization ERC will further develop its infrastructure assets to offer to third party customers in order to widen its consumer base and enhance revenue Investor Presentation FY2017 19#20Facilities Management ERC provides a comprehensive range of maintenance and facility management services Facility Management Capabilities Public Area & Beach Security Waste Management Cleaning Maintenance Fees are based on a cost-recovery model plus a management fee EGP 23.7 mn EGP 53 km Revenues in 2017 (from third parties) Length of road network Community Brand & Reputation Management Quality & Design Control 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 414 Facility & community management personnel Building Smarter ERNST Communities DODY CORPORATE MANAGEMENT 200k m² 3,600 tons/year Green areas Waste management via HEPCA CARING FOR THE RED SEA The community administration, rules and regulations were designed by Ernst Body Corporate Facilities Management Forward-Looking Strategy As part of ERC's growth strategy, the Company has plans to spin off of its Facilities Management division into an independent entity: 1 Independent Business Model 2 Extending Services to ERC & Third Parties 3 More Stable, Long-term Cash Flow Streams Investor Presentation FY2017 20#21Overview of Sahl Hasheesh#22Sahl Hasheesh: ERC's Flagship Master Development SAHL HASHEESH MASTER PLAN SAHL HASHEESH RED FCVP Investor Presentation FY2017 The Pier Arrival Piazza Commercial Hub (Old Town) Jetties Sawari Marina Equestrian Center Hospital Schools 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 is situated on a bay long renowned as a world-class diving and seaside destination and includes a 12.5-km shoreline. Investors & Sub-Developers Tourists & Residents Controlled Supply Superior Infrastructure One-Stop-Shop Community Management in an Upscale Development Strategically- released land phases based on development and ROI protection "Plug-and-Play": full- Investors and fledged infrastructure with developers simply "plugging" in upon project completion developers deal only with ERC, while ERC secures licenses, approvals, building permits and land registration . • Architectural integrity and cohesion Community management controls and regulations Maintenance and upkeep Full services and amenities AECOM AW Planning Partners RTKL CONSULTING ENGINEERS EDSA WAIG MIC mobility in chain www.sahlhasheesh.com 22#23Sahl Hasheesh By Numbers Phases I and II of Sahl Hasheesh are currently home to around 2,760 hotel rooms and suites managed by brands including Premier Le Rêve, Premier Romance, Pyramisa, Tropitel, Old Palace and Baron, and Azzurra Boutique Hotel in addition to 2,300 residential units. Five of our hotels are among the top 10 picks on Trip Advisor. 324,000 H স্ব Hotels Residential Retail & Office Entertainment Leisure 7 6 8,740 sqm 2 Sawari Marina Hotels: 2,760 operational rooms Residential Projects: 2,300 fully-finished villas/apartments Retail and office space Designer 18-hole golf courses azzurra HASSAN ALLAM SAHL HASHEESH PROPERTIES- Developers 330+ yachts with complementing tourists, residential and commercial developments 2017 Tourist Nights 123,000 2017 Hotel Guests 51% 2017 Hotel Occupancy Rate 1,890 Unit Owners INERTIA TRAVCO GROUP Tropitel pyramisa TROPICANA Traveline KOTELS & RESORTE BALILLS Note: The above KPIs include developments by ERC as well as other sub-developers Investor Presentation FY2017 PALM HILLS DEVELOPMENTS www.sahlhasheesh.com 23#24The Number One Red Sea Destination Sahl Hasheesh has become the prominent destination on the Red Sea coast with year-around activities and events for residents and visitors alike Daily Activities ၉၈ Sports A haven for sports enthusiasts, including football fields, tennis courts, beach volleyball and water sports centers. Snorkeling & Diving The perfect diving destination along the world-renowned Red Sea Coast with special trips to the nearby protectorates. Spas & Wellness Some of the best spas and health centers in Egypt with modern, state-of-the-art facilities. Shopping International brands and local specialties featured at the Old Town's charming stores. Dining A range of casual and fine dining opportunities in the Old Town and many of the hotels and resorts operating within Sahl Hasheesh. BARON Hotels & Resorts EGYPT VERANDA BAHL HASHEESH Investor Presentation FY2017 A Old Palace Resort SAHL HASHEESH Pyramisa Hotels & Resorts Developments Premier Hotel & Spa R PREMIER ROMANCE azzurra SAHL HASHEESH AMAROS Sahl Hasheesh RedCoral SAHL HASHEESH Tropitel F&Roest GT HAWAII Sahl Hasheesh www.sahlhasheesh.com 24#25Year-Round Events & Activities ERC's marketing efforts have placed Sahl Hasheesh firmly on the map as one of Egypt's top coastal destinations among foreigners and Egyptians alike. During 2017, ERC organized a number of new events, ranging from sporting events and beach parties to CSR activities, demonstrating the versatility of Sahl Hasheesh's coastline. 2017 Events TRIATHLON BEACH APRIL 14TH 15TH 17TH Boardwalk Music BOARDWALK BEACH PARTY APRIL 16TH FESTIVAL SAIL WASHEESH TOURNAMENT SA HASHEESH TRI HLON NOV 16-18 Caster Weekend BLUEMARLINIBIZA UAE. DISCO 90% Easter Bunny Run APRIL 15TH EASTER APRIL BUNNY FUN ADVENTURE Comp Adventur 14TH APRIL CAMP 15TH 16TH THE TRI FACTORY POWERED BY INERTIA TAWAYA SAE HASHESH 44 Can Collar 18 Tebruary INTERNATIONAL ENGES ASARAS LEAGUE 2016-- Adventure Camp Bashersh ARAB Sahl Hasheesh hosted the bi- annual triathlon with Trifactory during 2017, an event which has been held at Sahl Hasheesh every spring and winter over the last four years, with more than 1000 athletes from Egypt and across the world competing in a variety of exciting races In April 2017, byGanz Extraordinaire, one of the most widely known Egyptian-based event and PR companies, hosted a three-day event featuring daytime beach activities and evening entertainment in collaboration with Blue Marlin UAE. The day time event, "Burning Beach" received wide coverage in major Egyptian news platforms and blogs, helping further solidify Sahl Hasheesh as a premiere destination for upscale entertainment. The summer saw the new season of Boardwalk Beach Parties, which officially kicked off during Eid Al Fitr in July 2017. Through until October, Sahl Hasheesh's scenic beaches hosted its signature beach parties with live DJs every Friday. Summersault colorscope 2-day camp | September 2nd-3rd, 2017 | Ages 6-10 muricata During March we held Sahl Hasheesh annual Fishing tournament for three days, also its also worth mentioning that during official holidays we partnered with "Wild Gunabana" an adventure start up founded by Omar Samra to hold an adventure school for the kids so that their parents can enjoy their time in Sahl Hasheesh hammering on the fact that the destination is for everyone. Investor Presentation FY2017 www.sahlhasheesh.com 25#26Promotional Activities SAHL HASHEESH RED SEA BEACH TOWN SAHL HASHEESH RED SEA BEACH TOWN 000000 COCTED LOVE by Gary ITB BERLIN THE WORLD'S LEADING TRAVEL TRADE SHOW® world® travel market A major focus of our marketing activities in 2017 were centered around the Old Town area. With the new opening of Bus Stop and the new management of II Gusto (which will be changed to "Sailors" during 2018), the summer events were centered around directing traffic to these venues and establishing them with the local Red Sea residents. We supported Bus Stop with live bands every Friday night and the beach with DJs and bands during the major holidays. With the growing popularity of Tawaya, efforts have also been made to increase visibility of the project and the branding on-site. We have also continued our efforts to position ourselves as a great sports destination with the second edition of the Sahl Hasheesh fishing Tournament with Red Sea Anglers as well as two editions of the Sahl Hasheesh Triathlon with Trifactory. We held our first rally over two days where 10 professional rally teams participated. And with the first obstacle off road course in the region attracting not only professionals rally teams but normal 4x4 owners. The event attendees exceeded 500 pax. Following the success of New Years Eve '16 with ByGanz and Lemon Tree, two more events have been hosted during our peak holiday weekends (Easter and New Year) with ByGanz & Blue Marlin UAE. Internationally, Sahl Hasheesh is continuing to position itself as a competitive destination in Egypt with strong participation in tourism trade shows (ITB Berlin and WTM London) as well as promoting destination weddings in Sahl Hasheesh with the European market. 68.5 K f O Followers Call Centre: 16974 53 K Followers Investor Presentation FY2017 www.sahlhasheesh.com 26#27Operational & Financial Update#28Financial Performance | Income Statement Highlights Net Revenue (EGP mn) 400 YOY : 61% 281.1 27% Revenue Breakdown ...O 40 29 51 174.1 2012 2013 2014 2015 2016 2017 14% 59% Land Plot Sales Real Estate Revenue Infrastructure * Based on Total Revenue before Returns ERC realized revenues of EGP 167.4 mn from land sales during 2017 (vs. EGP 85.4 mn in land sales during 2016). Jamaran Sales totaled EGP 9.2 mn in 2017 vs EGP 2.7 mn in 2016. Tawaya, ERC's exclusive waterfront apartments in Old Town developed in cooperation with Palm Hills, recorded revenues EGP 22.8 mn in 2017 vs EGP 5.9 mn in 2016. Meanwhile, recurring revenues from retail activities reached EGP 7.2 mn in 2017, including maintenance Revenues from ERC's facility management and infrastructure assets totaled EGP 75.3 million in 2017, up nearly 54% y-o-y, and contributing c.27% to the company's top-line. Utilities and services rendered included power distribution (EGP 35 million), water distribution (EGP 16.9 million) and facilities management services (EGP 20.8 million) among others. Gross Profit (EGP mn) EBITDA (EGP mn) Gross Profit ■GPM% EBITDA EBITDA% -268% -101% 58% -42% -10% 33% -28% -80% -83% 60% 20% 37% 232.3 242 (11) (23) (42) 2012 2013 2014 2015 34 103 -29.2 -21.7 -107.1 2016 2017 2012 2013 2014 2015 -17.9 2016 92.2 2017 Gross Profit recorded EGP 103 million (GP margin of 37%) in FY2017 against a gross profit of EGP 34 million (GP margin of 20%) during FY2016 EBITDA came in at EGP 92.2 million in FY2017 with an EBITDA margin of 33% compared to -10% in FY2016 Investor Presentation FY2017 28#29Financial Performance | Balance Sheet Highlights Consolidated Liquid Assets and Liabilities (EGP mn) Cash & TB Total Receivables Current L. Long Term L. 749 1,385 1,285 274 444 332 620 384 192 208 216 227 236 261 336 675 329 342.0 463.3 309 248 274 239 200.0 260 271 252 272 162.0 108.9 98 136 131 122 2009 2010 2011 2012 2013 2014 2015 2016 2017 Investor Presentation FY2017 The company's balance sheet remained liquid as at year end 2017, with a cash balance of EGP 122 million. MEGP MEGP Current Liabilities 815.6 Long Term Liabilities 691.2 1. Claims Provision 29.2 1. Purchase of land creditors 621.3 2. Down payments 175.7 (Phase 3) 3. Sundry creditors and other 2. Deferred Tax 69.9 credit balances 282.5 4. Due to TDA (Share) 140.3 5. Provision (cost for development of sold land) 164.4 6. Bank Facilities 7. Income Tax 23.7 691 816 29#30Governance & Sustainability#31Corporate Governance ERC believes that a robust, proactive approach to corporate governance is vital to the interests of both the individual company - boosting investor confidence by protecting the value of their shares - and the business community by providing a regulatory framework for healthy competition. The Board Committees • Members: Mr. Karim Aboul Naga (Chairperson) Audit Committee Dr. Khaled Abdelaziz Moh'd Hegazy (Member) Mr. Mohamed Daabis (Member) Mr. Ahmed Abou Hendia Non-Executive Chairman Mr. Mohamed Kamel Vice Chairman Mr. Wael El Hatow Chief Executive Officer Dr. Khaled Abdelaziz Moh'd Hegazy Board Member Representing Misr Life Insurance Mr. Mohamed El Saeed Ibrahim Taaema Board Member Representing Rowad Tourism Mr. Tarek Samir Abdel Fatah Board Member Representing KATO Investment Mr. Mohamed Samir Abdel Fatah Board Member Representing KATO Investment Dr. Hamza Al Kholi Board Member Representing First Arabian Development & Investment Dr. Eskander Tooma Independent Member Dr. Gamal Elsaeed Independent Member Mr. Mohamed Sherif Representing Misr Insurance Nomination & Remuneration Committee Mr. Hussein Abo Seada Representing Rowad Tourism Strategic Committee Mr. Mohamed El Saeed Saad Daabis Representing Misr Insurance Mr. Karim Aboul Naga Representing Al Ahly Capital Investor Presentation FY2017 Members: Mr. Mohamed Kamel (Chairperson) Mr. Ahmed Abu Hendia (Member) Dr. Eskander Tooma (Member) Mr. Mohamed El Saeed Ibrahim Taaema (Member) Members: Mr. Mohamed Samir Abdel Fatah (Chairperson) Mr. Ahmed Abou Hendia (Member) Dr. Hussein Abo Seada (Member) Mr. Mohamed Kamel (Member) Dr. Eskander Tooma (Member) 31#32Sustainability ERC is committed to actively giving back to Egyptian society by engaging in ethical business practices as well as organizing and sponsoring a variety of corporate social responsibility initiatives every year Doing Business to Promote Development Demonstrating a desire to find innovative solutions to today's energy crisis, in 2015 ERC signed a long-term land lease contract with KarmSolar to develop a c. 50,000 m2 solar farm in Sahl Hasheesh with a generation capacity of 2MW. In late 2016, ERC signed an MoU with KarmBuild and Rise Up to create a technology and startup hub in Sahl Hasheesh that will support Egypt's most promising local technology companies and accelerate the pace of innovation. • Giving Back through CSR Initiatives In April 2017, ERC hosted an Orphan Day on Sahl Hasheesh's beach. Thirty-five children participated in a variety of activities, including a submarine tour. In conjunction with the event, ERC donated 641 kg of dry foodstuff for Eid Al Adha to the Egyptian Food Bank. ERC hosted a group wedding for community orphans at Sahl Hashessh Resort KarmSolar كرم للطاقة الشمسية Investor Presentation FY2017 KarmBuild 32#33Investor Information#34Stock Information EGTS.CA Issued Shares 1,050,000,000 Shares 48.3% Listing Venue The Egyptian Stock Exchange Listing Date 10/02/1999 P PRIME HOLDING Name: Mohamed Marei Email: [email protected] E EFGHERMES المجموعة المالية هيرميس CI CAPITAL Investor Presentation FY2017 Name: Mai Attia 21.0% 10.0% ■Red Sea Hotels ■First Arabian Company ■Misr Insurance ■Rowad Tourism Company ■Misr for Life Insurance ■ Others 8.1% 5.8% 7.0% Analyst Coverage فاروس PHAROS Name: Mayar El Ashry Email: [email protected] CAPITAL Name: Mohammad Kamal Email: [email protected] Email: [email protected] arqaam Name: Omar El-Menawy Email: [email protected] NAEEM الإمارات - مصر - السعودية Name: Amir Badran Email: [email protected] 34#353.0 Stock Information Egyptian Resorts Co SAE - Stock Performance Chart 2.5 FY 2.0 MPC raises rates by 150 basis points 1.5 10 1.0 0.5 0.0 Jan-16 Feb-16 Mar-16 Apr-16 2015 Results Q1 2016 results ERC CEO Mohamed Kamel becomes Vice Chairman as Wael El-Hatow MPC raises assumes role of CEO rates by 100 basis points May-16 Jun-16 Jul-16 Aug-16 Investor Presentation FY2017 Q2 2016 results Sep-16 Oct-16 Nov-16 CBE floats the Egyptian Pound Q3 2016 results Dec-16 Jan-17 FY 2016 results wwww Feb-17 Mar-17 Apr-17 May-17 MPC raises rates by 200 basis points MPC raises rates by 200 basis points Kato sells 11.6% of ERC shares to Red Sea Hotels Ahly Capital sells 4.5% of ERC shares to Red Sea Hotels resulting in Ahly Capital ownership of 4.5% & Red Sea ownership of 16.5% Q3 2017 results Ahly Capital sells 4.5% of ERC shares to Red Sea Hotels resulting in Ahly Capital ownership of 0% & Red Sea ownership of 21% Q1 2017 Q2 2017 results results Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 35#36Financial Statements#37Consolidated Income Statement EGP Sales Operating Revenue Sales Return Revenue from rendered services Total Revenues FY2015 FY2016 Change FY2017 Change 372,696,703 (18,805,236) 168,889,169 -55% 206,593,285 22% (9,768,139) -48% (780,847) -92% 46,506,372 48,833,922 5% 75,255,074 54% 400,397,839 207,954,952 -48% 281,067,512 35% COGS Cost of Sales (76,755,441) (32,223,284) -58% (63,060,082) 96% Cost of returned sold land 3,216,265 Operating cost of rendered services (85,004,316) 1,800,294 (93,385,533) -44% 236,077 -87% 10% (115,401,193) 24% Gross Operating profit (loss) 241,854,347 84,146,429 -65% 102,842,314 22% Other Income 5,682,438 8,803,725 55% 6,113,823 -31% Selling and Marketing Expenses (19,679,764) (39,352,427) 100% (30,672,320) -22% General and Administrative Expenses (30,084,105) (44,878,566) 49% (42,676,395) -5% Other Expenses (15,420,791) (20,955,163) 36% (5,135,933) -75% Net Change in AR & Other Debit Balances 14,539,720 3,066,579 -79% -100% Operating profit (loss) 196,891,845 (9,169,423) -105% 30,471,489 -432% Revaluation of investment fund securities 1,756,689 477,612 -73% 0 -100% Deferred Interest 9,295,776 16,163,395 74% Net Finance Income (Cost) 8,695,509 97,704,343 1024% 39,951,851 9,996,346 147% -90% EBT 216,639,819 105,175,927 -51% 80,419,686 -24% Income tax 823,096 (95,012,057) -11643% (10,956,904) -88% Net Income 217,462,915 10,163,870 -95% 69,462,782 583% Attributed to the Holding Company 217,857,117 78,358,936 -64% 62,585,787 -20% Minority Interest Share (394,202) (68,195,066) -17400% 6,876,995 -110% Investor Presentation FY2017 37#38Consolidated Balance Sheet EGP Fixed Assets (net) Real Estate Investments Projects in Progress Accounts and Notes Receivable (Net) Long Term Time Deposits Total Long term Assets Work in progress Assets Held for Sale Inventory Accounts and Notes Receivable (Net) Various debtors and other debit balances Cash on hand & at bank Total Current Assets Total Assets Claims Provision Receivables Advance payments 31/12/2016 121,861,072 145,977,861 1,624,746 509,342,426 46,733,750 825,539,855 31/12/2017 103,174,397 148,040,655 12,532,922 470,856,774 43,585,500 778,190,248 569,827,398 590,732,316 0 2,947,379 775,426,269 528,134 2,712,995 913,674,806 16,117,071 30,955,967 131,193,723 1,495,511,840 122,116,103 2,321,051,695 1,660,720,321 2,438,910,569 28,374,351 29,208,214 98,878,283 175,671,520 Sundry creditors and other credit balances 241,087,852 282,467,453 Due to authority of touristic development 129,487,337 140,316,098 Estimated cost for development of sold land 151,530,217 164,405,149 Banks - Credit facilities 13,318,509 0 Income tax Total Current Liabilities Issued and Paid in Capital Legal Reserve 12,070,490 23,681,961 674,747,039 815,750,395 1,050,000,000 1,050,000,000 131,664,379 146,057,902 Retained Earnings (Losses) (260,705,521) (247,516,959) Holding Company's Shareholders' Equity 920,958,858 948,540,943 Minority Interest Total Shareholders' Equity Deferred tax liability (Net) Purchase of Land Creditors Total long term Liabilities Total Liabilities & Equity Investor Presentation FY2017 (23,432,721) (16,555,726) 897,526,137 931,985,217 82,585,876 69,860,819 666,192,643 621,314,138 748,778,519 691,174,957 2,321,051,695 2,438,910,569 38