PRESENTATION FY 2017 - PORTO GROUPir.portogroup.com/Content/Media/Files/Porto Group...INVESTOR PRESENTATION I FY 2017 35.0% 45.2% 10.8% 0.2% 6.8% 0.2% 1.8% SOL Global Holding Free

INVESTOR PRESENTATION FY 2017

INVESTOR PRESENTATION I FY 2017

This Presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation orsolicitation of an offer to subscribe for or purchase securities of any kind and neither this document not anything contained herein shall form the basisof any contract or commitment from any party whatsoever. Information, including but not limited to financial information, in this presentation shouldnot be considered as a recommendation in relation to holding, purchasing or selling shares, securities or any other instruments in or, in entities relatedto, Porto Group Holding or any other company.

This presentation contains important and privileged information on Porto Group Holding which is solely owned by Porto Group Holding and may not berelied on or used by any person whosoever for any purpose, and therefore shall be kept secret and confidential by any receiving party.

This presentation includes forward-looking statements. The words “believe”, “anticipate”, “expect”, “intend”, “aim”, “plan”, “predict”, “continue”,“assume”, “positioned”, “may”, “will”, “would”, “could” or “should” “shall”, “risk” and other similar expressions that are predictions of or indicatefuture events and future trends identify forward-looking statements. These forward-looking statements include all matters that are not historical facts.In particular, the statements regarding strategy and other future events or prospects are forward-looking statements. Recipients of this presentationshould not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors thatare in many cases beyond the control of the company. By their nature, forward-looking statements & projections involve risks and uncertaintiesbecause they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guaranteesof future performance and the company’s actual results of operations, financial condition, performance, liquidity, dividend policy or achievements ofthe company, or industry in which the company operates may differ materially from those made in or suggested by the forward-looking statementscontained in this presentation. The cautionary statements set forth above should be considered in connection with any subsequent written or oralforward looking statements that the company or persons acting on its behalf, may issue. Various factors could cause actual results to differ materiallyfrom those expressed or implied by the forward-looking statements in this document including the worldwide economic trends, the economic andpolitical climate of Egypt and the Middle East, changes in business strategy and various other factors.

These forward looking statements speak only as of the date of this presentation. The company expressly disclaims any obligation or undertaking(except as required by applicable law or regulatory obligation), to release publicly any updates or revisions to any forward-looking statement, whetheras a result of new information, future events or otherwise.

This disclaimer is to be considered an integral part of the presentation and Porto Group Holding’s liability in respect of this presentation and is to begoverned by Egyptian law under the jurisdiction of Egyptian courts.

2

Disclaimer


A. COMPANY OVERVIEW

B. PROJECTS OVERVIEW

C. CONSOLIDATED FINANCIAL PERFORMANCE

D. APPENDIX

3

Agenda


COMPANY OVERVIEW


35.0%

45.2%

10.8%

0.2%

6.8%0.2%

1.8%

SOL Global HoldingFree FloatAmer WakfLantess International LimitedMohamed El-Amin

Share Performance1

5

-

0.1

0.2

0.3

0.4

0.5

0.6

-

50,000

100,000

150,000

200,000

250,000

300,000

Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17Volume ('000s) Share Price (EGP)

July 2017Stock Dividend 1:10

Company Overview

Porto Group is a real estate developer based in Egypt, established in October 2015 post the spin-offfrom Amer Group

The split took place in October 2015 to introduce Porto Group as a pure real estate developer withprojects locally and internationally where it has access to land through favorable revenue sharingarrangements with Amer Group or other land owners in Egypt as well as the acquisition of land plotsoutside of Egypt

Porto Group mainly focuses on real estate development projects in East and West Cairo as well assecond homes and commercial units

Shareholding Structure

Company OverviewPorto Group Overview

EGX 30’s most traded stock in terms of volume in 20172

Sector Real Estate

No. of Listed Shares 5,015. mn

Market Cap3 EGP 1.856 bn

Bloomberg Ticker PORT.EY

Reuters Ticker PORT.CA

1. Source: EGX & Thomson Reuters2. Source: EGX3. As at 31 DECEMBER. 2017

April 2016Cash Dividend EGP 0.02

INVESTOR PRESENTATION I FY 2017 6

Key Milestones

Company OverviewKey Milestones of Porto Brand which predates the spinoff of Porto Group Company

Became thefirst and

onlydeveloper toexplore the

other side ofthe shore

Became thefirst and

onlydeveloperto develop

Red Seamountains

First primaryhomes

development

LaunchedPorto New

Cairo & PortoOctober

LaunchedPorto Lagoons,Porto Sokhna

Island&

Porto Matrouh

AppointedArqaamCapital,Matouk

Bassiouny &Baker

McKinsey tolaunch a GDR

program

Launch ofanotherregional

development

2005 2006 2007 2013 20152011 2014 20162010

Become thefirst Egyptian

player todevelop

outside ofEgypt

PortoMarina waslaunched inthe North

Coast

Porto GroupCompany

established

2017

LaunchedVillagio


The fastest developer among listed peers, with a strong brand name, a management team with a proven track record and a well defined strategy in place

7

1

Acceleratedeliveries and

projectcompletion

2

Geographicalexpansion both

locally andregionally across

various realestate

segments

3

Build up recurringrevenue streams in

Commercial,Healthcare &

Educationsectors

4

Seek new Co-development

projects both InPrimary & Second

Home markets

Company OverviewStrategy


PROJECTS OVERVIEW


Porto Developments EducationHealthcare HotelsCommercial

Golf Porto Sokhna -Island

Golf Porto Marina -Lagoons

Porto Cairo Porto October Porto Matrouh PH2 Porto New Cairo Porto Tartous Porto Dead Sea Porto Agadir Porto Pyramids Porto Saeed Golf Porto Marina -

Villagio 12 projects Total land area: 4.8

mn sqm

Porto Cairo Porto Sokhna Golf Porto Marina Porto October 295 beds 120 clinics

Porto New Cairo Porto October Porto Pyramids Porto Dead Sea Porto Saeed Porto Agadir 721 Keys

Schools Alamain University

Porto Cairo Porto New Cairo Porto October

Egyptian Wakf Amer Charitable

Foundation

CSR

Projects OverviewBusiness Lines


Projects OverviewProjects Snapshot

Project Location Type Launch Date Start of Delivery Land Area(sqm mn)

Total BUA Area(sqm mn)

Porto Cairo Villas New Cairo Primary Home 2007 2010 0.09 0.04

Porto Cairo Mall New Cairo Commercial 2010 2014 0.04 0.04

Porto Cairo Clinics New Cairo Commercial 2012 2017 0.01 0.01

Porto Lagoons North Coast Second Home/Mixed-use 2015 2018 0.08 0.10

Porto Sokhna Island Suez Gulf Coast Second Home 2015 2017 0.18 0.06

Porto Matrouh Marsa Matrouh Second Home 2015 2018 0.13 0.08

Villagio-Golf Marina North Coast Second Home 2017 2020 0.16 0.05

Porto New Cairo New Cairo Primary Home/Mixed-use 2013 2018 0.05 0.21

Porto October 6th of October Primary Home/Mixed-use 2013 2016 1.38 0.64

Porto Pyramids Giza Primary Home/Mixed-use 2016 2019 0.1 0.13

Porto Saeed Port Said /Damietta Primary Home/Mixed-use TBD TBD 0.43 0.33

Porto Tartous Tartous, Syria Second Home 2010 TBD 0.19 -

Porto Dead Sea Dead Sea, Jordon Second Home 2014 2018 0.81 0.78

Porto Agadir Agadir, Morocco Second Home TBD TBD 1.20 0.32

EGYP

TM

ENA


45.3%

6.7%

48.0%

Porto Group

Amer

3rd Parties

11

Porto Group’s Co-development Agreements & Self Developed Projects Projects (by Geography)

Land (Developed vs. Under Development)

Co-developmentAgreement

Self DevelopedProjects

Ongoing Projects

Porto Lagoons Porto New Cairo Porto Pyramids Porto Sokhna Porto October Porto Matrouh PH2 Golf Porto Marina –

Villagio Grand View

Porto Cairo Porto Dead Sea

Phase I

Under Planning

Several new Projects(T.B.A)

Porto Dead Sea( Mountain )

Porto Agadir

82.6%

17.4%Under Development

Developed

Egypt, 70.2%

Jordan, 21.1%

Morocco, 8.7%

Egypt

Jordan

Morocco

Projects OverviewProjects Snapshot

Land (Ownership)


Local Projects International Projects

Red Sea

Porto Matrouh

Porto October

Porto Pyramids

Porto Cairo

Porto New Cairo

Porto Sokhna

Mediterranean Sea

Porto Agadir

Porto Dead Sea

Porto Tartous

Golf Porto Marina

Porto MarinaResidence

Projects OverviewProjects Location


Golf Porto MarinaVillagio I O

Porto Group has concluded a revenue sharing agreement with Amer Group to develop 582 Villas in Villagio project, GolfPorto Marina with BUA of 52,380 sqm.

The investment cost of the project is estimated at c. EGP 875 mn

Projects OverviewNew Launches

Porto Group is actively studying several co-development agreements of mixed-use projects in various geographiclocations encompassing both primary and second home markets.

Porto Group will continue strengthening its recurring revenue activities.Future Projects


Projects OverviewPorto Dead Sea Construction Update Video


Projects OverviewPorto October Master Plan Video


Projects OverviewPorto October Construction Update Video


Projects OverviewPorto New Cairo Project Update Video


Projects OverviewPorto Group


CONSOLIDATED FINANCIAL PERFORMANCE


Unit Sales by Project (From Project Launch to Dec 2017) | Units

Contracted Sales by Project (From Project Launch to Dec. 2017) | EGP mn

329 57182

885 548 227 154

1,953

4,839

617195 62

-

1,000

2,000

3,000

4,000

5,000

6,000

Porto CairoVillas

Porto CairoMall

Porto CairoClinics

PortoLagoons

Porto SokhnaIsland

PortoMatrouh

Golf Bay Porto NewCairo

PortoOctober

PortoPyramids

Golf Marina Grand View

81454

98

1,421

770416 349

1,127

2,940

340 124 96 -

1,000

2,000

3,000

4,000

Porto CairoVillas

Porto CairoMall

Porto CairoClinics

PortoLagoons

Porto SokhnaIsland

PortoMatrouh

Golf Bay Porto NewCairo

PortoOctober

PortoPyramids

Golf Marina Grand View

EGP 10.462 bn

Consolidated Financial PerformancePerformance Overview

8,216 units


621 UnitsDelivered621 UnitsDelivered

Gross ProfitEGP 379 mnGross ProfitEGP 379 mn

Operating ProfitEGP 118 mn

Operating Profit Margin9.8 %



EGP 2,089 bnContracted Sales


EGP 1,207 bnRevenue

Recognized

EGP 1,207 bnRevenue

Recognized

New Sales by Type: First Home 52 % Second Home 33 % Commercial 15 %

New Sales by Type: First Home 52 % Second Home 33 % Commercial 15 %

FY 2016 Highlights








EGP 2,383 bnRevenue

Recognized

EGP 2,383 bnRevenue

Recognized

New Sales by Type: First Home 42 % Second Home 35 % Commercial 14 % Schools 9 %

New Sales by Type: First Home 42 % Second Home 35 % Commercial 14 % Schools 9 %

1,813 UnitsDelivered

1,813 UnitsDelivered

Gross ProfitEGP 633 mnGross ProfitEGP 633 mn

FY 2017 Highlights


Revenues | EGP mn Gross Profit | EGP mn Operating Profit | EGP mn

Net Profit | EGP mn Total Assets | EGP bn Total Equity | EGP mn

1,207

2,383

-

500

1,000

1,500

2,000

2,500

FY 2016 FY 2017

379

633

-

200

400

600

FY 2016 FY 2017

118

377

- 50

100 150 200 250 300 350 400

FY 2016 FY 2017

117

245

-

50

100

150

200

250

300

FY 216 FY 2017

5.18 5.13

-

2

4

6

FY 2016 FY 2017

578

753

-

200

400

600

800

FY2016 FY 2017


97 % 67 % 220%

109%30%


Consolidated Income Statement1 | EGP ‘000s

FY 2016 FY 2017 Change

Revenues 1,207,053,174 2,383,768,370 97%

Cost of Revenues (827,568,241) (1,750,558,989) 112%

Gross Profit 379,484,933 633,209,381 67%

Selling and Marketing Expenses (176,544,403) (154,854,930) (12)%

General and Admin Expenses (66,951,899) (102,753,317) 53%

Treasury Stock (9,954,289) - -

Other Income 28,880,823 36,867,680 28%Other Operating Expenses (37,120,676) (35,639,808) (4)%

Operating Profit 117,794,489 376,829,006 220%Interest Income 58,798,400 13,779,123 (77) %

Finance Cost (8,790,053) (102,842,158) 1070%

Capital Gains - 37,713,980 -

Profit for the Year Before Tax 167,802,836 325,479,951 94%Income Tax (50,294,908) (79,945,301) 59 %

Profit for the Year 117,507,928 245,534,650 109 %

Consolidated Financial PerformanceConsolidated Income Statement

1. Prepared in accordance with Egyptian Accounting Standards


APPENDIX


Total Real Estate Unit FY 2016 FY 2017 Change %

Cumulative Number of Units Sold Units 6,327 8,216 30

Total New Sales Value in the Period EGP mn 2,089 2.650 27

Units Delivered in the Period Units 621 1,813 192

Revenues Recognized in the Period EGP mn 1,207 2,383 97

Operating Profit EGP mn 118 377 219

Operating Profit Margin % 9.8 15.8 6.00

AppendixFinancial Highlights


Land Area (m2) 1,381,000 Launch Date 2013

Total BUA (m2) 640,869 Public Service & Utilities BUA (m2) 126,536

Residential BUA ( m2) 399,955 Total Licensed Residential Units 4,961

Commercial BUA (m2) 102,836 Total Sales (EGP mn) 4,839

Other (Office ) ( m2) 11,542 Total Revenues (EGP mn) 2,180

AppendixDevelopment Under Construction – Porto October1

1. All figures are as of 31st Dec 2017


Land Area (m2) 54,549 Launch Date 2013


Residential BUA (m2) 86,125 Total Licensed Residential Units 1,340

Commercial BUA (m2) 41,697 Total Sales (EGP mn) 1,953

Other (Hotel) ( m2) 12,393 Total Revenues (EGP mn) 1,652

AppendixDevelopment Under Construction – Porto New Cairo1




Total BUA (m2) 57,891 Public Service & Utilities BUA (m2) -

Residential BUA (m2) 57,891 Total Licensed Residential Units 847

Commercial BUA (m2) - Total Sales (EGP mn) 548

Total Revenues (EGP mn) 254

AppendixDevelopment Under Construction – Golf Porto Sokhna Island (1&2)1






Commercial BUA (m2) 9,960 Total Sales (EGP mn) 617

Other (Hotel) (m2) 4,511 Total Revenues (EGP mn) NA

AppendixDevelopment Under Construction – Porto Pyramids1






Commercial BUA (m2) - Total Sales (EGP mn) 883

Total Revenues (EGP mn) 233

AppendixDevelopment Under Construction – Porto Lagoons1





Residential BUA ( m2) 5,442 Total Licensed Residential Units 934


Time Share (m2) 72,393 Total Revenues (EGP mn) 13

AppendixDevelopment Under Construction – Porto Matrouh1



Land Area (m2) 137,282 Launch Date 2007-2012


Residential BUA (m2) 39,555 Total Licensed Residential Units -


Other (Medical) (m2) 7,467 Total Revenues (EGP mn) 1,053

Completed Completed In Process

Villas Mall Medical

AppendixDevelopment Under Construction – Porto Cairo1







AppendixDevelopment Under Construction – Porto Dead Sea1



Land Area (m2) 1,200,000 Launch Date TBD



Commercial BUA (m2) 37,317 Total Sales (EGP mn) NA

Other (Hotel) (m2) 21,500 Total Revenues (EGP mn) NA

AppendixDevelopment Under License – Agadir1



AppendixCommercial Sector

Porto Cairo

Porto New Cairo Porto October


PORTO OCTOBER145 BEDS

PORTO CAIRO35 BEDS

120 CLINICSPORTO SOKHNA

50 BEDS

GOLF PORTO MARINA65 BEDS

AppendixHealthcare Sector1



School in Porto October School in Porto Sokhna School in Porto Saeed

Alamein University

AppendixEducation Sector


PORTO OCTOBER50 KEYS

PORTO NEW CAIRO45 KEYS

PORTO PYRAMIDS144 KEYS

PORTO SAEED100 KEYS

PORTO AGADIR252 KEYS

PORTO DEAD SEA130 KEYS

AppendixHospitality Sector1


BOARD MEMBERS

MohamedEl-Mikawi

Chairman & CEO

TOP EXECUTIVES

Contact UsMohamed ZakiInvestor Relations

[email protected]

Documents

PRESENTATION FY 2017 - PORTO GROUPir.portogroup.com/Content/Media/Files/Porto Group...INVESTOR PRESENTATION I FY 2017 35.0% 45.2% 10.8% 0.2% 6.8% 0.2% 1.8% SOL Global Holding Free