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Investor Presentaiton

ERC: H1 2016 Developments & Overview Slowdown in Revenues The drop in revenues in Q2 2016 came on the back of lower land plot sales in Sahl Hasheesh, coupled with a severe slowdown in the tourist arrivals to the country, as Egypt's tourism industry continued to be impacted by the Sharm El-Sheikh airliner incident from Q4 2015. ERC saw revenues drop from EGP 270.1 million in Q2 2015 to EGP 5.9 million this quarter. Despite the decrease however, occupancy rates remain higher at Sahl Hasheesh compared to other cities along the Red Sea coast. TAWAYA Cash Collections Cash collections from sub-developers and retail buyers were 74% lower y-o-y for the H1 2016, coming in at EGP 27.4 million, mainly due to decreased collections from sub-developers. Meanwhile, receipts from community management and services for the same period declined by 39% y-o-y to EGP 12.5 million, owing largely to the slowdown in the tourism industry. ERC subsidiary SHC's joint venture with Palm Hills Developments was launched in April 2015 and unit reservations have so far seen very good demand from the market. The project shell is fully constructed, and internal finishing is underway and set to be completed within a 12-18 month period. Jamaran Cash Position The company's balance sheet remained liquid at the close of the six- month period, with cash standing at EGP 106.2 million. 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 Sawari Marina ERC is working to obtain all the official licenses necessary to launch Sawari's phase 1 in H2 2016. Last year, the TDA had approved ERC's request to redefine the boundaries of Sahl Hasheesh's Phase 2 to include the entirety of Sawari's 1.1 million sqm phase 1, which will include 1,000+ villas and apartments, and many entertainment venues. The marina is expected to accommodate vessels up 60m in length and will include two five- star hotels and one four-star property around the marina basin. ERC is now back 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 Q2/1H 2016 ERC Egyptian Resorts Company
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