TMG - Talaat Moustafa Group

Company
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Talaat Mostafa Group Holding Company
Group Presentation
Mar 2015
Safe Harbour Statement
Company
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Certain information disclosed in this presentation consists of forward looking statements reflecting the current view of the
company with respect to future events, and are subject to certain risks, uncertainties and assumptions. Many factors could
cause the actual results, performance or achievements of the company to be materially different from any future results,
performance or achievements that may be expressed or implied by such forward looking statements, including worldwide
account of trends, economic and political climate of Egypt, the Middle East, and changes in business strategy and various
other factors. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove
incorrect, actual results may vary materially from those described in such forward looking statements. 2
Outline
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TMG Corporate Profile
Company
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TMG at a Glance
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Projects Development, Achievements and Growth Prospects
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Share Data
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Board of Directors and Corporate Governance, Executive Team and Business Partners
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Strategy and Business Model, Quality Control and Operating Systems
Market and Operational Review
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Macroeconomic Indicators, Real Estate Drivers
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Financial and Operational Review, Hotels & Resorts Operational Review
Future Growth
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Real Estate Development Plans And Projects Progress
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Real Estate Future Growth
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Hotels & Resorts Future Growth
Investment and Risk Considerations
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TMG Corporate Profile
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TMG at a Glance
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Projects Development
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Achievements and Growth Prospects
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Share Data
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Board of Directors and Corporate Governance
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Executive Team and Business Partners
Strategy and business model
Quality Control and Operating Systems
Company
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TMG TMG at a Glance
n 
A successful, over 20-year track record in which over 9 MN
sqm of land was developed and over 66 thousand real estate
units with a BUA that exceeded 9.6 MN sqm were sold
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Strong management capabilities with 8 board members, 10 vice
presidents, 3,000 employees and 60,000 on-sites workforce
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43.2 MN sqm of quality land bank in prime locations and high
growth areas .
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Geographic Diversification: Expanding in the region with an eye
on markets of shared similarities with the Egyptian real estate
markets.
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Business line Diversification to increase contribution of stable
income: Five additional Hotel & Resort projects currently under
development
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Self contained urban communities targeting the middle to upper
middle classes
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Different styles and size of units that cater to changes of
income levels, average household size, life style and consumer
preference
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Four operational large scale luxury hotel complexes including
high-end residencies, shopping malls and office parks and soft
launch of a fourth boutique hotel specifically tailored to
business travelers
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A sales backlog of EGP 20.8 BN at the end of March 2015.
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Healthy financial position and minimal gearing: cash EGP 4.5
BN, debt EGP 3.06 BN, debt to equity ratio of 1:9 as at March
2015.
Company
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5
TMG
Projects Development
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6
TMG
Achievements
Growth Prospects
Breakdown of Sold Units
Breakdown of Land Bank
0.37% 0.95% 0.48% 1.36% 0.54% Company
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9%
0.05% 0.18% 14.45% 91%
47.83% 34.13% City & Community
• 
virgenia Four S. Sharm • 
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May fair Nile Plaza Rabwa Rehab ii Rabwa ii Rehab i Sant stefano Madinaty Developed 9 million sqm. of land Sold over 60 thousand residen9al units Developed over 9.6 million sqm. residen9al BUA Sold 38% of Madinaty residen9al BUA (as per revised program area with 19% increase in residen9al BUA*), 92% of Al Rehab II and 92% of Al Rabwa II units Award winning opera9onal hotels * Revised areas of November 2009 • 
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Hoteles & resorts
Development rights of 43.2 million sqm in Egypt . Master development of 8.14 million sqm of quality land for strategic non-­‐residen9al developers for value crea9on and knowhow Sales backlog of EGP 20.8 BN to be delivered and recognized over next four years 1,737 hotel keys and 2,464 aXached residen9al units in various design and development stages, upcoming in next three to four years Increase contribu9on of stable income from opera9ng assets to reach 35% of total revenue ( a target of 5,000 hotel rooms) Maintain minimum of 35 MN sqm of land inventory 7
through on going local expansion. TMG
Share Data
50.27% 25.75% Other shareholders including free float 23.98% *Including Talaat Mostafa Family and Saudi group 450
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EGX
RE INDEX
TMG
29.12.11
26.1.12
21.2.12
15.3.12
9.4.12
8.5.12
31.5.12
26.6.12
22.7.12
15.8.12
11.9.12
4.10.12
1.11.12
27.11.12
20.12.12
16.1.13
11.2.13
6.3.13
31.3.13
23.4.13
22.5.13
6.16.13
7.10.13
8.5.13
9.2.13
9.25.13
10.27.13
11.20.13
12.15.13
1.9.14
2.4.14
2.27.14
3.24.14
4.16.14
5.15.14
6.11.14
7.7.14
8.5.14
8.28.14
9.22.14
10.20.14
11.12.14
12.7.14
12.30.14
1.27.15
2.19.15
3.16.15
4.8.15
5.5.15
5.28.15
TMG RE & Tourism Investment * Other major shareholders Company
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Share Performance
Shareholders Structure
As 2 June 2015 8
TMG
Board of Directors and Corporate Governance
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Executive and nonexecutive members with
longstanding experience
in real estate and
construction in the MENA
region
Independent and non
executive members that
are publicly renowned in
the economic, legal and
commercial circles
Audit, nomination and
remuneration committees
have been appointed
The audit committee has
the responsibility to
review and approve
related party transactions
Board of Directors
Tarek Talaat Moustafa (Executive Chairman)
Hani Talaat Moustafa
Yehia Mohamed Awad
Mohamed Ali Akbar
Gamal El Guindy (Executive Director)
Ahmed Ali Abou El Einein - Misr Insurance Company representative
Mohamed Hisham Al Sharif
Hossam Abdallah Helal (Chairman of the audit committee)
Directors are bound by
non-compete rules in
Egypt.
Shareholder directors
Independent
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TMG
Executive Management
In addition to the board,
the executive
management of the
company is composed of
10Vice Presidents.
A number of committees
including the Steering
Committee, Higher
Management Committee
and Executive Committee
support the Management
decision making process.
Over 3000 professionals
are directly employed in
the various sectors and
subsidiary companies of
the Group.
In addition, a workforce
of approximately 60,000
technical staff is
operational in the various
projects’ sites.
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Executive Chairman and Vice Presidents
Tarek Talaat Mostafa (Executive Chairman)
Sherif Ghoneim – V.P. Sales and Marketing, Joined: 1993
Jihad M. Sawaftah – V.P. Chief Financial Officer, Joined: 2004
Gamal El Guindy – V.P. Administration of the Chairman’s Office, Joined: 1983
Ahmed Afifi – V.P. Madinaty Project Management, Joined: 1995
Mohamed Atef – V.P. Technical Affairs, Joined: 2005
Wael EL Dieb– V.P. Projects Management, Joined: 2014
Nagy El Tony– V.P. Touristic Projects, Joined: 1994
Sami Mokhtar – V.P. San Stefano Project, Joined: 1992
Mohamed Al Shazly – V.P. Sales, Joined: 2001
Mohamed M. Noh –V.P Real Estate Affairs , Joined : 1980
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TMG
Business Partners
n  The
Company
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Four Seasons and Kempinski :internationally reputable management chains of our hotels
n  Top
class worldwide contractors, master planners, designers of projects components and
execution:
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Main contractor for our completed projects as Joannou and Paraskavides, Hyundai, Murray and Roberts
and Binladen
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The master planning of madinaty was made by a group of consulting firms from the United States: Sasaki,
SWA and HHCP and their Egyptian counterparts Cairo Group for planning and architecture
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Architects as HKS, USA for sharm extension design WZMH, Canada for Luxor design, Studio Sergi, Italy for
Marsa Alam design
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MEP companies as MMM Canada for Sharm extension
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Interior design companies as GA, UK for Luxor
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Signature golf courses designers as Robert Trent Jones II and HHCP Design International
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TMG
Strategy and Business Model
Geographical diversificaMon Integrated development concept Stable and recurring income from OperaMng assets Scale and Land bank posiMoning flexible phasing construcMon model financing schemes catering to customers' affordability Company
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Integrated process capitalizing on brand name, reputaMon and experience In-­‐house Centralized OperaMons Top Class Designers and Contractors Reputable Business Partners self financing real estate units sales Low risk, model: (sell first then construct) Flagship Developments Ongoing a[er sale integrated faciliMes management operaMons 12
TMG
Quality Control and Advanced Operating Systems
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•  2007: Application of the SAP Enterprise Resources Planning System (ERP) on all functions of the Group
Subsidiaries. The result is a smooth process integration between sales, accounting and treasury, with
facilitated financial and managerial reporting, streamlined accounting bookkeeping and consolidation,
improved administration of internal controls, corporate governance and transparency, and an optimized
cash management process.
•  Feb 2008: qualified for the ISO 9001:2000 certification requirements for a quality management system and
maintained the certificate upon renewal in 2010 where an organization:
1.  needs to demonstrate its ability to consistently provide product that meets customer and
applicable regulatory requirements, and
2.  aims to enhance customer satisfaction through the effective application of the system, including
processes for continual improvement of the system and the assurance of conformity to customer
and applicable regulatory requirements.
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Market and Operational Review
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Macroeconomic Indicators
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Real Estate Market Drivers
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Financial Review
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Consolidated Operational Review
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Hotels & Resorts Operational Review
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TMG
Macroeconomic Indicators
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25th 2011. Egypt has been undergoing significant changes on its poli5cal front since January Such developments are expected to make fundamental improvements in the transparency and efficiency of the economic policy seCng that will invariably impact the lives of all Egyp5ans. Although the Egyp5an economy was able to economically survive and grow during two consecu5ve global crises over the past five years, the current unfavorable global and domes5c circumstances are causing temporary disrup5on to the macroeconomic scene, keeping growth below poten5al. Real GDP growth was 5.6% during the (July, December) 14/15 compared to the same period last year; a^er changing the base year from 2006/2007 prices to 2011/2012 prices; Net Interna9onal Reserves reached US $ 20.5 BN at the end of April, 2014. Annual headline infla9on rate reached 10.9 % in April 2015. The CBE announced that the overnight deposit rate will remains at 8.75 %, and the lending rate at 9.75% effec9ve April, 2015. Despite the slowdown in economic growth resul5ng from a delay across all sectors including the real estate sector and the harsh impact on the tourism sector, the effect is foreseen to be temporary and will be liIed when the country reaches poli5cal stability. 15
TMG
Real Estate market drivers in Egypt
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Growing population
n  90
MN population with 60% under the age of 30, and 840,000 new marriages per annum on average
n  Urban
and general population growing by 3.1% and 1.9%, respectively
n  Growing
middle to upper classes has created a growing demand for good quality, affordable housing
Supply / Demand Gap
n  Total
demand of 450k units per year. Approximate demand of 225k units per year in urban areas
n  Supply/demand
gap in urban areas of 5k, 50k and 70k in the High-end, Middle and Low-end residential units,
respectively
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TMG
Financial Review
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Revenue Contribution 1Q 2015
FY 2014 Key figures
Hotels 16% Total assets: EGP 60 BN
Cash and cash equivalents: EGP 4.5 BN
Other Revenue 8% Total debt: EGP 3.06 BN
ResidenMal 76% A positive net Cash: 1.44 BN
Debt to Equity Ratio: 1:9
Assets Growth
Quarterly revenue recognition
70,000
2,000
60,000
1,750
50,000
40,000
30,000
20,000
10,000
EGP MN
1Q2008 4Q2008 4Q2009 4Q2011 4Q2012 4Q2013 4Q2014 1Q2015
1,500
1,250
1,139
1,140
1,000
750
500
1Q2014
Consolidated revenue
1Q2015
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TMG
Consolidated Operational Review
Quarterly Review
Quarterly profits
Revenues breakdown 1Q2014 Revenues from Hotels 97 186 Other revenues 71 86 1,139 1,140 (694) (652) Hotels Cost (76) (108) Services Cost (57) (68) COGS breakdown Real Estate & Construction Cost Total cost of goods sold (827) 312 311.9 GP% 27% 27% (107) (36) Net profit before tax 205 276 NPBT% 18% 24% income tax and deferred tax (47) (90) Net Profit 158 186 NP% 14% 16% Minority's share 100
150
200
250
300
350
2 312
1Q2014
205
161
(828) Gross profit SG&A, Other income and expenses 50
868 Total consolidated revenue -
1Q2015 972 Revenues from units sold Company
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312
1Q2015
276
188
2 attributable to shareholders 161 188 14% 16% Gross profit
Net profit before tax
Net profit
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TMG
Hotels & Resorts Operational Review
400
Total Revenue (EGP Mn)
350
300
250
354
150
220
170
50
78
1Q14
combined ARR
70%
225
150
100
30%
75
20%
50
15%
10%
23
5%
0%
1Q14
1Q15
Total Revenue (EGP Mn)
30%
20%
17
40%
86
46
10%
0%
1Q15
Sharm El Sheikh
35%
14%
34%
125
1Q14
25%
60%
50%
175
40%
27%
51%
200
0
GOP %
Total Revenue (EGP Mn)
100
90
80
70
60
50
40
30
20
10
-
250
25
1Q15
combined Rev Par
San Stefano
80%
190
180
170
160
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
-
57%
29%
31
1Q14
66
80%
75%
70%
65%
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
GOP %
200
275
GOP %
Nile Plaza
ARR and Rev Par
100
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1Q15
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Future Growth
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Real Estate Projects Progress
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Real Estate Future Growth
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Hotels and Resorts Future Growth
Company
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TMG
Future Growth
Company
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Real Estate Development
Hotels and Resorts
•  Capitalizing on land-­‐bank in exis9ng projects
•  Master Development and sale of prime land plots; value created through project development and units delivery over 10 ten year period •  Looking for worthwhile opportuni9es to expand land-­‐bank in Egypt •  Expanding in the region with an eye on markets of shared similari9es with the Egyp9an real estate markets •  The target is to have a minimum land-­‐bank of 35 million sqm at any point of 9me • The target is to build a stock of 5,000 hotel
rooms with a minimum IRR of 18%, and
increase the contribution of stable income to
35% of total revenue
• Development of hotel projects in the pipeline,
early launch of real estate sales to co-finance
development and enhance returns
• Continue to grow through purchase of
minorities when the opportunity arise
• Looking for further local opportunities that
enjoy prime location and have a market gap to
increase weight of stable income from hotels
operations.
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TMG
Madinaty: development progress
Key statistics*
Company
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Madinaty - % of Sold Residential BUA
Location
new Cairo Total land size (m2)
33,600,000 Land area to be dev. (m2)
33,600,000 BUA to be dev. (m2)
20,856,908** Land for mega developments
7,450,380 Expected population
600,000 Commence date
July 2006 % of sold residential BUA:
Sold BUA 38% Available for sale 62% 38%*
Project description*
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Mix-use community designed by three prominent American companies
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Construction is to take place over 6 overlapping phases, each 3-4 years long
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Intended residential BUA of 16.82 million m2 (19% increase in BUA)*
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In addition to business district, international hospital, a university, 22 schools and 3 shopping malls
* As per revised program area of April 7 2013
** including estimated BUA on land for mega developments
22
TMG
Madinaty: progress to date
Infra structure work
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21.2 mn m2 of Land levelling and roads
preparation
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Company
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Residential BUA work
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9.97 mn m3 of digging and filling
8.6 mn m2 of roads levelling work
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1.333 mn tons of cement
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4.6 mn m2of base and sub base layers
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400 800 tons of steel
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343 km of borders works
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4.47 mn m3 of concrete
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3.15 mn m2 of asphalt work
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12.99 mn meters of walls
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693 km length of water, sewage and
irrigation water pipes
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8.68 mn meters of ceramics
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991 k meters of marble
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4.6 mn of electricity cables
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17.50 mn meters of paints
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375 km of telephone cables
o 
675 k pieces of windows and doors
Updated
Mach
31, 2015
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TMG
Madinaty Phase I:
delivery of residential units with complete community services
Company
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Key statistics
Phase I Residential Units to be Delivered
Land area to be dev. (m2)
7,830,011 Residential land area
7,208,040 Facilities land area
621,971 Residential BUA
3,199,981 Expected population
68,620 Commence date
Jan 2007 Delivery date
April 2010- Dec 2014
Services: Northern District
Land Use language school Bri9sh school mosque medical center central park district park Area / feddan 6.7 9.0 2.6 1.5 5.0 3.0 27.7 Land Use Area / feddan Area / m2 Zone 1 Apartment 267 1,119,300 Zone 6 Apartment 245 1,029,000 Total Apartment 512 2,148,300 Zone (I)Villa Golf 507 2,128,140 Zone (II)Villa Golf 698 2,931,600 Total Villas 1,205 5,059,740 Total Residen5al Units 1,716 7,208,040 Services: Southern District
Area / m2 28,140 37,632 10,858 6,300 21,000 12,600 116,530 Area / feddan 5.7 Land Use public school restuarants, foodcourt, retail and hypermarket 9.0 police and fire brigade 0.7 bus sta9on 1.0 district management 0.8 car service 0.4 telephone exchange 1.4 district park, 5.0 Children play area, lakes area 23.9 Total BUA / m2 No. of Unit 1,111,754 6,524 1,136,896 10,518 2,248,650 17,042 390,662 1,105 560,669 1,381 951,331 2,486 3,199,981 19,528 Other Facilities
Area / m2 24,066 37,800 2,864 4,074 3,209 1,652 5,873 21,000 100,538 Land Use
phase 1 of sports club 60 retail shops commercial center zones 1 and 6 community centers: mosque, admin building, commercial shops, nursery Villas Golf Course Roads and City Gates Area / feddan Area / m2 90.0
378,000
1.4
5,903
5.0
21,000
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TMG
Madinaty Phase II:
delivery of residential units with complete community services
Company
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Key statistics
Phase 2 Residential Units to be Delivered
Land area to be dev. (m2)
3,582,895 Residential land area
3,135,300 Facilities land area
447,595 Residential BUA
3,133,423 Expected population
67,192 Commence date
March 2008 Delivery date
Land Use Zone 3 Apartment Zone 7 Apartment Zone 8 Apartment Zone 11 Apartment April 2010- Dec 2014
Total Apartments Services: Northern District
Land Use language school Medical Center Retail Fire Sta9on Mosque district park Area / feddan 6.6 2.7 2.4 .4 2.3 17.2 31.6 Area / feddan Area / m2 Total BUA / m2 No. of Unit 166 695,100 655,464 3,864 147 617,400 628,847 7,272 227 951,300 911,359 4,554 208 871,500 937,753 8,340 24,030 748 3,135,300 3,133,423 Other Facilities
Area / m2 27,668 11,340 9,880 1,527 9,730 72.156 132,301 Land Use
commercial center zones 1 and 6 community centers: mosque, admin building, commercial shops, nursery, Roads and City Gates Area / feddan 2.34
18.2
Area / m2 9,840
76,440
25
TMG
Madinaty Phase III:
delivery of residential units with complete community services
Company
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Key statistics
Phase 3 Residential Units to be Delivered
Land area to be dev. (m2)
7,213,073 Residential land area
4,863,600 Facilities land area
2,349,473 Residential BUA
3,801,999 Expected population
67,192
Land Use Mixed used Zone 10 Apartment Area / feddan Area / m2 Total BUA / m2 No. of Unit 200 840,000 2,268,000 15,120 220 924,000 969,151 7,320 Total apartment 420 1,764,000 3,237,151 22,440 zone (III)villa golf 738 3,099,600 564,848 1,027 Services: District centre
Land Use Commercial Day care Admin Mosque Green areas & parking Area / feddan 0.71 0.40 0.40 1.19 3.30 6.00 Area / m2 3,000 1,667 1,667 5,000 13.860 25,193 26
TMG
Al Rehab Development Progress
Key statistics*
Company
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Al Rehab II - % of Sold Residential BUA
Location: New Cairo, an extension to Al Rehab I
Total land size (m2)
9,900,400
Land size to be dev. (m2)
4,684,225
BUA to be dev. (m2)
2,839,834**
Land for mega developments (m2)
687,971
Expected population
200,000
Commence date
8%
Available
92%
BUA sold
Nov 1996 / Jul 2006
% of sold residential BUA (Rehab II)
92%
Project description*
1.
Rehab I / Rehab II
Al Rehab I:
n 
Only the shopping centre and phase 6 villas (633 villas) are yet to be completed. Out of which 22 villas are remaining to be sold
n 
Rental revenue from two shopping malls (6,274 sqm) the British school as well as club fees (membership fees) and F&B
Al Rehab II:
n 
Consists of 1248 villas (BUA 0.401 million m2), 9,216 apartments (BUA 1.389 million m2)
* As per revised program area of November 2009
** including estimated BUA on land for mega developments
27
TMG
Al Rabwa Development Progress
Key statistics
Company
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Al Rabwa II - % of Sold Units
Location: Sixth of October City an extension to Rabwa I
Total land size (m2)
2,137,828
Land size to be dev. (m2)
819,028 (Rabwa II)
BUA to be dev. (m2)
129,748 (Rabwa II)
Expected population
4,965
Commence date
January 2006
% of sold residential BUA (Rabwa II):
92%
8% Available 92% BUA sold Project description
Al Rabwa I
n 
an exclusive compound targeting the high end
n 
Construction is completed and consists of 648 villas, a shopping centre, 9 hole golf course and sports pavilion.
n 
The development is fully sold and covers a land area of 1,318,800 m2
Al Rabwa II
n 
Al Rabwa II will follow a similar model consisting of 386 villas and an interlinking 9 hole golf course
n 
Only 10 villas are remaining to be sold
28
TMG
Real Estate Future Growth:
Capitalise on Land with unrecognized value
2010:
Delivery of residential units
completed with facilities and
infra structure in Rehab II and
Madinaty
Company
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2012 – 2022
2012 – 2022
Master development and sale
of sqm 8.14 mn land plots in
prime locations for strategic
non residential use
Estimated land sale of
500ksqm/annum at an
estimated selling price of
EGP 10K/sqm
n 
Master planning and development of high quality land plots all set with the required infrastructure
n 
Land value created as a result of the development progress and delivery of a full-fledged phase of the project
n 
To be sold to strategic partners that would bring a know-how, fill an existing gap in the area; e.g. medical
projects, banking corporations, large exhibits, key service providers, etc.
n 
The plan is to create more value to the project, enhance the operational cash flow and achieve more
favourable project’s returns
n 
To be launched over a 10 years period starting 2012 after delivery of phase I units at an estimated average
selling price of EGP 10,000 per sqm.
29
TMG
Real Estate Future Growth:
Location of Land with unrecognized value
Al Rehab
Company
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Madinaty
30
TMG
Hotels and Resorts Future Growth
Business line Diversification to increase the contribution of stable
income to total revenue
Company
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Targeted Future Growth
Reach 5,000 hotel rooms with a minimum IRR of 18%, and increase the contribution of stable income to
35% of total revenue
Steps taken to achieve targeted growth
• 
• 
Acquisition of Marsa Alsadeed land in Sharm El Sheikh, upon which an extension of the existing Four
Seasons resort will be constructed
Purchase of land in downtown Cairo to develop a high-end office and hotel complex
• 
Purchase of Sednawy Villa adjacent to the Nile Hotel to develop an exclusive business club and
parking that will also serve the hotel
• 
Obtained a 50 years renewable concession agreement to develop a resort on Sultana Malak Land in a
prime location in the historic city of Luxor
• 
signed up Letters of Intent with the Four Seasons renowned chain to operate the hotels in Luxor,
Madinaty, and Sharm Extension and appointed Kempinski to operate the Nile hotel
• 
Raised ownership stake to 100% of the Four Seasons Sharm el-Sheikh Resort and Four Seasons Nile Plaza
complex in Cairo by acquiring the minority stake held by Kingdom Hotel Investments (KHI) in both
hotels
31
TMG
Build-up of 2,612 hotel rooms
Company
Logo
Operational: 875 rooms / keys
2019
Under development: 1,737 rooms / key
2018
2017
2010
Marsa
Alam
Four
Seasons
Luxor
Kepminski
Nile Hotel
2007
San
Stefano
2004
2001
Four
Seasons
Sharm
Four
Seasons
Sharm
Extension
2020
TMG
Building
Hotel
2021
Four
Seasons
Madinaty
Nile Plaza
32
200
566
684
875
971
1172
2172
2372
2612
TMG
Upcoming projects
Company
Logo
Open Air Mall
Consists of 11 Buildings
Design was made by
Development Progress
n 
To be developed over 3 phases
n 
Opening target date 2015 -2017
F+A architects
Land area: 404 k sqm
BUA: 116k sqm
Four Seasons Sharm Extension
Development Progress
Rooms/ keys :96
n 
Purchased land
Residential properties: 114
n 
Finished design
Operator: Four Seasons
Land area 960 k sqm
n 
Issued licenses and permits
n 
Appointed four seasons management company
n 
Under Construction
BUA: 490 k sqm
33
TMG
Upcoming projects
Company
Logo
Four Seasons Luxor
Development Progress
n 
Signed concession agreement
Operator: Four Seasons
n 
Finished design
Land area 20 k sqm
BUA: 43 k sqm
n 
Issued licenses and permits
n 
Appointed four seasons management company
n 
Floated tender documents
Rooms/ keys :201
Four Seasons Madinaty
Development Progress
Rooms/ keys :240
Residential properties: 100
n 
Finished design
Operator: Four Seasons
Land area 175 k sqm
n 
Appointed four seasons management company
BUA: 49 k sqm
34
TMG
Upcoming projects
Company
Logo
Marsa Alam
Development Progress
Rooms/ keys :750
Residential properties: 2250
n 
Purchased land
phase one : 474 units
Land area 3.2 mn sqm
n 
Finished design
n 
Obtained TDA approval
BUA: 390 k sqm
n 
Issued licenses and permits
Development Progress
Madinaty Medical City
Rooms/ beds:450
Contains Hospital, Children and
n 
To be developed over 3 phases
Women Hospital, Cancer Research
centre, Transplantation centre, and
n 
Phase 1 includes Main Hospital with 220 beds
n 
Opening target date 2017
Outpatient Clinics. In addition to
Academy and a Hotel.
Development Progress
TMG Building Hotel
Rooms/ keys :200
n 
Purchased land
Operator: TBD
n 
Finished design
n 
Issued licenses and permits
Land area 2 k sqm
BUA: 16 k sqm
35
Company
Logo
Ø 
Investment Considerations
Ø 
Risks and Mitigants
TMG
Investment Considerations
Company
Logo
Real Market need Concept and selling features Investment Considerations
Experience and Track Record Integrated low risk, self finance Business Model Diversified products and markets Guaranteed revenue and profitability (sales backlog) Healthy financial Posi9on High Growth Prospects 37
TMG
Risks and Mitigant
Company
Logo
Risks
Mitigant
Entry barriers to prospective new comers:
•  Integrated Business Model
•  First mover advantage
Competition
from new
entrants
• 
Failure to
achieve
overall growth
target
Difficulty to
attract
customers to
the new
product idea
• 
• 
• 
• 
Economic
Slowdown
• 
• 
A diversified growth plan with no over-dependence on one
revenue segment.; Revenue growth in one segment is likely
to offset sluggish growth in another
New products and land development ideas
Product features that meet customers needs and
affordability
A carefully planned promotion strategy that aims at
introducing the product idea and publicizing its value to
the target market
A safety cushion of a sales backlog that exceed EGP 18.8 bn
to be recognized over next four years
Stable income from operating assets
Entering new markets with high growth potential
38
Company
Logo
Thank you