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Investor Presentaiton

Revenue 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% before the global financial crisis and profit margins reached 84%. 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 CAGR = 24.3% Weighted Average Cost/m² (USD) 78 151 143 120 109 90 90 22 42 22.95 45 40 40 1.32 1.75 11 2004 2005 LUUD 2007 ZUUO 2012 2013 2014 2015 Uncapitalized Infrastructure Cost Cost of Land from TDA Fixed Fee on Sale of Land to TDA Gross Profit 1,327 261 2,039 476 Land Area Sold (000 m²) 1,317 4 20 101 555 ⚫ ERC maintained long-term land bank residual value by controlling end- consumer supply by not engaging new land plot sales in 2009 and 2010. 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 • Cost of Infrastructure: Blended weighted average cost for all 3 phases. • TDA Land Payments: Phase - Fully paid Phase II Fully paid - Phase III EGP 310.1* mn outstanding (Long Term Liability), three years grace + seven years payment • Infrastructure Delivery Terms: 120 days prior to development operations commencement. *As of 31/3/2016 24 Investor Presentation Q2/1H 2016 ERC Egyptian Resorts Company
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