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 CompanyView entire presentation