TMG Hlding First Six Mnths and Secnd Quarter ending June, Earning Release Cair, August 11, TMG Hlding reprts fr 1H : EGP 3.5 BN cnslidated revenue,11% higher than same perid f last year, EGP 662 MN cnslidated net prfit after minrity, 4% higher than same perid last year and, EGP 2.18 BN f new sales value, a 135% increase ver 1H 2009; started delivering units in Madinaty as per annunced schedule; and inaugurated the peratins f its furth Hspitality Icn: the Kempinski Nile Htel in dwntwn Cair TMG Hlding, the leading Egyptian cmmunity real estate develper is delighted t annunce its cnslidated financial results fr the first six mnths and the secnd quarter ending. Key Operatinal and Financial Highlights fr the cnslidated results f January t June During 1H-10, TMG cntinued t deliver healthy revenue and prfits. Ttal cnslidated revenues fr 1H-10 reached EGP 3,530 mn, 11% higher than EGP 3,187 mn cnslidated revenues fr 1H-09. The increase in recgnized revenue is the cmbined effect f: (i) an 11% increase in the revenue recgnized frm real estate units that have been delivered and recgnized accrdingly; and (ii) a 7% increase in the htels revenue Grss Prfit fr 1H-10 is EGP 964 mn, 13% higher than EGP 854 mn results f 1H-09. Net prfit befre tax is EGP 863 mn fr 1H-10, 14% higher than EGP 758 mn results f 1H-09. Net prfit after tax and minrity f EGP 662 mn fr 1H-10, is 4% higher than EGP 635 mn results f 1H-09. Ttal cnslidated revenues fr 2Q-10 reached EGP 1,923 mn, 17% higher than EGP 1,638 mn cnslidated revenues fr 2Q-09. The increase in recgnized revenue is the cmbined effect f: (i) an 18% increase in the revenue recgnized frm real estate units that have been delivered and recgnized accrdingly; and (ii) a 5% increase in the htels revenue Grss Prfit fr 2Q-10 is EGP 502 mn, 31% higher than EGP 385 mn results f 2Q-09. Net prfit befre tax is EGP 441 mn fr 2Q-10, 31% higher than EGP 335 mn results f 2Q-09. Net prfit after tax and minrity f EGP 338 mn fr 2Q-10, is 5% higher than EGP 321 mn results f 2Q-09. At, the Grup s ttal assets reached EGP 53.8 bn, cash and cash equivalents amunted t EGP 1.84bn, representing apprximately 3.4% f ttal assets; an amunt clse t ttal debt balance f EGP 2.2 bn, representing apprximately 4% f ttal assets. The debt t equity rati has remained at 1:12 times, reflecting the grup s lw gearing and prudent cash management. 1
TMG Hlding Operating Perfrmance City & Cmmunity Cmplexes a Y--Y grwth f 135% in sales value Ttal new sales f real estate units in 1H-10 amunted t EGP 2.18 bn cmpared t EGP 929 mn in 1H -09 reflecting a significant Y--Y grwth f 135% in sales value. t fr 2Q, new sales amunted t EGP 1bn cmpared t EGP 487 mn fr the same perid last year. Fr the secnd quarter cnsecutively, the sales figure came in line with TMG s budgeted figures fr. On the ther hand, the cancellatins figure is visibly reduced cmpared t the same perid last year. Mrever, the cancellatins are still within nrmal rates f 4.5% previusly reprted n the accumulated sales. The cntributin made by the year t date net sales value maintains the backlg f sld but unrecgnized units at the level f EGP 23.3 bn t be recgnized as per the units delivery schedule ver the next fur years, starting secnd half f. Delivery f Residential Units in Madinaty This Quarter has als witnessed the first deliveries in Madinaty that have started in April as per the designated schedule. Sme f the units wners have already mved t reside in the new city while thers are still preparing their villas and apartments. The district center serving the first Grup f apartment buildings is als peratinal with a metr supermarket, a pharmacy, a laundry and a clinic. A security cmpany is als hired t watch ver the city, same as in Rehab. In parallel, the ministry f Husing represented in the New urban cmmunities authrity has als started receiving its payment in kind in the frm f finished apartments in cmpliance with the signed cntract. Htels & Resrts Inauguratin f Kempinski Nile Htel: the first exclusive butique htel catering t the needs f business travelers in dwntwn Cair. Kempinski Nile Htel replaced an ld htel n the river banks in ne f Cair s mst strategic dwntwn spts, the Garden City area. The interir design f the 191-rm butique style htel is dne by the wrld renwned French architect Pierre Yves Rchn. Its amenities and facilities will cater t the needs f business travelers and ffer specialized facilities t the lcal business cmmunity, while as the management cmpany, Kempinski, has lng reflected the finest traditins f Eurpean hspitality fr leisure and business guests alike. The launch f this htel brings the ttal number f peratinal htel rms t 875 rms ut f 2,600 ttal peratinal and cmmitted rms build-up and in line with the 5,000 rms in 5 years plan. 2
TMG Hlding Htels peratins Revenue frm perating htels has reached EGP 298 mn in 1H-10, 7% higher than EGP 277 mn in 1H-09. On an peratinal level, all htels have kept their healthy KPI s and peratinal results as utlined belw: Fur Seasns Nile Plaza reprted GOP f 64% and NP f 54 % in 1H-10 cmpared t 65% and 52% respectively in 1H-09. Average rm rates f USD 336 in 1H-10 are lwer than EGP 375 in 1H-09 but an increase in ccupancy rate frm 57% t 61% helped imprve the htel s revpar and, a 17% increase in the F&B revenue cmpensated the decrease f rm rates and maintained the ttal htel s revenue and net prft. Fur Seasns sharm el sheikh reprted GOP f 58% and NP f 44 % in 1H-10 cmpared t 56% and 43% respectively in 1H-09. Average rm rates f USD 460 in 1H-10 are higher than USD 437 f 1H-09. This is accmpanied by an increase in ccupancy rate frm 62% t 68% that enhanced the htel s revenue and prfitability. Fur Seasns San Stefan reprted GOP f 25% and NP f 14% in 1H-10. Average rm rates at USD 265 are als higher than 1H-09 rates f USD 249 and average ccupancy rates at 52% are higher than 1H-09 rates f 43%. 3
TMG Hlding 1H 1H2009 1H10/09 2Q-10 2Q-09 2Q10/09 EGPmn EGPmn change EGPmn EGPmn change Revenues breakdwn Revenues frm units sld 3,189 90% 2,880 90% 11% 1,741 91% 1,478 90% 18% Revenues frm Htels 298 9% 277 9% 7% 153 8% 145 9% 5% Other revenues 43 1% 30 1% 44% 29 1% 15 1% 94% Ttal cnslidated revenue 3,530 100% 3,187 100% 11% 1,923 1,638 100% 17% COGS breakdwn Real Estate & Cnstructin Cst (2,381) 75% (2,166) 75% 10% (1,322) 76% (1,158) 78% 14% Htels Cst (161) 54% (155) 56% 4% (80) 53% (88) 61% -8% Services Cst (24) 55% (12) 40% 98% (19) 64% (7) 47% 167% Ttal cst f gds sld (2,566) 73% (2,333) 73% 10% (1,421) 74% (1,253) 76% 14% Grss prfit 964 27% 854 27% 13% 502 26% 385 24% 31% Selling, General and Administrative Expenses (161) -5% (183) -6% -12% (83) -4% (84) -5% -1% Prvisin expense/ (0.2) 0% (0) 0% - 0% (0.3) 0% -100% interest incme 37 1% 44 1% -17% 19 1% 14 1% 42% investment incme 3 0% 13 0% -77% 3 0% 11 1% -76% net change in market value f investments 2 0% 12 0% -83% (8) 0% 10 1% -174% Other incme (expense) 15 0% 15 0% -1% 5 0% 0 0% 2042% Freign exchange difference 3 0% 3 0% -16% 3 0% (0.3) 0% -1255% Net prfit befre tax 863 24% 758 24% 14% 441 23% 336 21% 31% incme tax and deferred tax (157) -4% (89) -3% 78% (81) -4% (8) 0% 886% Net Prfit 706 20% 669 21% 5% 360 19% 328 20% 10% Minrity's share (43) -1% (34) -1% 26% (22) -1% (7) 0% 229% attributable t sharehlders 662 19% 635 20% 4% 338 18% 321 20% 5% Figures are runded t the nearest millin 4
TMG Hlding Cnslidated Financial Statements 5
TMG Hlding 6
TMG Hlding 7
TMG Hlding Summary f C&C prjects in Operatin and Develpment Madinaty Al Rehab I Al Rehab II Al Rabwa I Al Rabwa II Saudi JV Ttal Land area(1) (m2) 33,600,000 6,140,400 3,760,000 1,318,800 819,028 4,000,000(8) T be dev. land area(2) (m2) 33,600,000 924,225 3,760,000 0 819,028 3,000,000 T be dev. built up area(3) (m2) 20,580,644 24,225 2,815,609 0 118,320 1,214,075 CBRE Value 2008 EGP 17.82 bn EGP 1.92 bn EGP 5.86 bn EGP 238.28 mn SR 800.32 mn (8) % wned(6) 99.9% 99.9% 99.9% 98.6% 98.6% 50% Lcatin New Cair New Cair New Cair El Sheikh Zayed El Sheikh Zayed Riyadh (7) Exp. Ppulatin 600,000 120,000 80,000 3,240 1,725 16,800 Cmmence(4) July 2006 Nvember 1996 July 2006 December 1994 January 2006 Orig. Cmpletin(5) 2026 2011 2020 2006 2012 2013 Revised cmpletin 2020 2011 2017 2006 2012 2013 Amenities Varius including: 4 schls 4 Msques 1 shpping mall 9 hle glf curse Medical centre 45 hle glf curse 7 msques 2 schls Cinema Shpping mall 22 schls 1 church 1 shpping mall 9 hle glf curse Msques 1 university 1 ffice park 1 club huse Sprts pavilin Sprts club 8 htels cmmercial parks (ffices & retail) 1 hspital 2 shpping malls Gvernment services 1. Land area prcured. Area f land still t be develped as per CBRE reprt 3. The built up area ( BUA ) still t be develped under phasing plan as per the CBRE reprt 4. Launch f sales 5. Delivery f final unit assumed in the CBRE reprt 6. Effective wnership 7. Riyadh authrizatin btained 8. Land value nly Includes additinal 1 mn sqm f land prcured fr future develpment 9. all sld except phase 6 8
TMG Hlding Summary f H&R Assets in Operatin Fur Seasns Sharm Fur Seasns Nile San Stefan Grand El Sheikh Plaza Plaza Nile Htel % wned(1) 100% 56.31% 84.47% 100% Lcatin Sharm El Sheikh Cair Alexandria Cair Rms/keys 200 366 118 191 Units 146 128 945 0 Sld 144 121 887 n/a Ave. price EGP 26,435 psm EGP 38,775 psm EGP 14,920 psm n/a CBRE Value ( 30 Jun 08) EGP 1.99 billin (3) EGP 2.44 billin EGP 2.36 billin EGP 523.57 mn Cmmence Nv 98 Sep 97 Feb 99 Aug 03 Cmplete(2) May 02 Aug 04 Jul 07 Jun 10 Star rating 5 Star 5 Star 5 Star 5 Star Facilities 8 restaurants 9 restaurants 9 restaurants 4 restaurants 2 lunge bars Spa Marina 4 meeting rms Spa Ballrm Shpping mall Business centre Ballrm 11 meeting rms Offices Executive club 4 meeting rms Business centre Casin Mini business centre Business centre Shpping mall Ballrm 1. % wned by ICON, which is 81% indirectly wned by TMG 2. Cmmencement f peratins 3. Including EGP 1.03 bn related t Marsa AL Sadeed (extensin) which is 100% wned by TMG 4. Value f land nly 9
TMG Hlding Grup Structure 10
TMG Hlding Abut TMG Hlding TMG Hlding has under its umbrella a grup f cmpanies: Arab Cmpany fr Prjects and Urban Develpment, which wns and manages: AL-Rehab and Madinaty prjects in New Cair District Alexandria Real Estate Investment Cmpany, which wns and manages: AL-Rabwa Cmpund in EL-Sheikh Zayed City San Stefan Real Estate Investment Cmpany, which wns and manages: San Stefan Alexandria Alexandria Cmpany fr Urban Prjects, which wns and manages: May Fair Prject in AL-Shruk City Arab Cmpany fr Htel and Turist Investments, which wns cntrlling stakes in its investments in: Fur Seasns Nile Plaza in Garden City Fur Seasns Resrt Sharm EL-Sheikh Fur Seasns Alexandria at San Stefan Kempinski Nile Htel in Cair Under develpment Htels Areez and Thabat Capital: Issued and paid-in capital: EGP 20.13 bn Number f shares: 2.013 bn at a par value f EGP 10/share Sharehlders' Structure: TMG RE & Turism Investment (including Talaat Mstafa Family & Saudi grup) 50.27% Other majr sharehlders 25.75% Other majr sharehlders including free flat 23.98% Investr Relatins Cntacts: Investr Relatins TMG Hlding Tel: +2 (02) 33355708 Fax: +2 (02) 33016894 E-mail: jsawaftah@tmg.cm.eg Web Site: www.tmghlding.cm 11