Brief Investor Presentation August 2014 | 2Q / 1H 2014
Brief Investor Presentation August 2014 | 2Q / 1H 2014
Disclaimer This presentation has been prepared by the Investor Relations, Corporate Finance and Management of Amer Group Holding Company S.A.E. (the “Company”) solely for information purpose to Research Analysts / Institutional Investors. The presentation is confidential and does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to buy, subscribe or otherwise acquire, any securities of the Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. The presentation has been provided to you solely for your information and background and is subject to amendment. The presentation contains forward looking, confidential and important information, data, figures, pictures about the company; and such information is owned by the Company. The presentation or any part of it may not be reproduced or redistributed, passed on, or the contents otherwise divulged in whole or in part or otherwise disseminated, directly or indirectly, to any other person or published in whole or in part for any purpose without the prior written consent of Amer Group Investor Relations Department, Amer Group Holding. Some of the information contained in this document is still in draft form and has not been legally verified and will only be finalized at the time of Admission and thus may be abridged or incomplete. The information used herein is based on sources that the Company believes to be reliable and accurate. However, no representation or warranty, express, assumed or implied, is made by the Company as to the fairness, accuracy, reasonableness or completeness of the information contained herein and no reliance should be placed on it. Neither the Company, their respective advisers, the existing shareholders of the Company, connected persons of the Company or any other person accepts any liability or responsibility for any loss howsoever arising, directly or indirectly, from the presentation or its contents. The presentation and any materials distributed in connection with the presentation may include forward-looking statements. Forwardlooking statements may be indicated by words such as “may,” “will,” “would,” “should,” “expect,” “intend,” “estimate,” “anticipate, “believe” and similar expressions. These forward-looking statements are statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, including, without limitation, the risks and uncertainties to be set forth in the Prospectus, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in the presentation. In addition, even if the Company's results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in the presentation, those results or developments may not be indicative of results or developments in future periods. The Company does not undertake any obligation to review, update or confirm analysts’ expectations or estimates or to release publicly any revisions to any forwardlooking statements to reflect events that occur or circumstances that arise after the date of the presentation. This document and any materials distributed in connection with this document are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. In Egypt, unauthorized dissemination of the information contained herein to the public in whatever form is prohibited and constitutes a violation under Egyptian law.
Agenda
Key Financial Highlights
LOB Highlights
Company Overview
Outlook & Guidance
Key Financial Highlights
•
Amer Group reported a 1H14 Net Profit of EGP 44 mn on Revenues of EGP 675 mn.
•
Beginning with 1Q14, Group Revenues have been reclassified to bring Malls LOB revenue to the top line of Group Statutory Financials. Historical figures have been restated.
•
Historical sales recognized as revenues in 1H14 reflect the sharp concentration of sales in specific locations and community types prior to the launch of the Group’s diversification drive in 2013. Second home communities accounted for 90.0% of recognized real estate revenues, with commercial real estate sales accounting for the remaining 10%. Within total Recognized Real Estate Revenues, three second-home developments together accounted for 74% of total recognized real estate revenues.
•
By comparison, New Real Estate Sales in 1H14 were distributed as 39.1% second-home communities, 36.9% first-home communities, and 24.0% commercial. While one community accounted for 34.7% of sales, no single other community accounted for more than 11.5% of New Real Estate Sales in 2Q14.
4 Brief Investor Presentation - 2Q / 1H14
Real Estate LOB: Key Figures & Recent Developments All figures in EGP mn unless otherwise indicated
Total Number of Units (Units)
Units Sold (Units) Units Delivered (Units) Total New Sales (Value ) Revenues Operating Profit
Operating Profit Margin (%)
2013
Porto Agadir (Morocco): • Amer Group announced the signing of an agreement with the Moroccan Ministry of Tourism to develop “Porto Agadir.” The project will cover 1,200,000 sqm on the coast of the Atlantic Ocean. Porto Dead Sea (Jordan): • Amer Group signed an agreement with the Jordanian government to implement the “Porto Dead Sea” project in Jordan. The USD 250 mn investment is expected to be comprised of a five-star hotel, villas and apartments, making up more than 3,000 rooms. The project aims to increase the number of local and foreign tourists coming to the Dead Sea by around 500,000 persons yearly. 5 Brief Investor Presentation - 2Q / 1H14
1H13
1H14
Change
16,513
18,392
11%
1,553
1,879
21%
422
1,038
146%
1,507.8
1,914.1
27%
306.4
476.1
55%
69.6
76.5
10%
23%
16%
-29%
1H14 •
The Real Estate LOB has begun delivery of units at the Golf Bay Marina development on the North Coast as well as at the Porto Matrouh development on the Mediterranean.
•
April 2014 saw the sales soft-launch of Porto Dead Sea, an 800,000 sqm development with a projected built-up area of c. 840,000 sqm, which will ultimately include a five-star Porto hotel; 11,000 residential units; and three malls with 550 shops and restaurants.
Forward Looking: • Porto Agadir (Morocco): Designs for the group’s flagship development in Morocco, Porto Agadir, are nearing completion. •
The Real Estate LOB is targeting deliveries in FY14 at South Beach, Porto Sharm, new phases in Porto Cairo Mall, Porto Golf Bay, Porto Marina Residence, Porto Matrouh and the Hanging Gardens communities in Golf Porto Sokhna.
Restaurants LOB: Key Figures & Recent Developments All figures in EGP mn unless otherwise indicated
1H13
1H14
Change
47
61
30%
9,130
9,241
1%
105
114
8%
LOB Revenue
98.1
108.2
10%
Operating Profit
(2.3)
0.4
NM
-2%
0%
NM
Operational Restaurants (Count) Total Available Seats (Number) Average Spend per Cover
Operating Profit Margin (%)
2013
1H14
•
• Management’s turnaround strategy aiming to bring the Restaurants division back into positive operating profit territory bore fruit in 1H14, as the group posted a 0.4 mn Operating Profit in the half, compared to a loss of EGP 2.3 mn in 1H13. • New restaurant openings in 1H14 include three outlets at Porto Cairo Mall (Studio Misr, Johnny Carino’s and Chili’s) and two at Cairo Festival City (Chili’s and Studio Misr) in Egypt as well as a Studio Misr in Abu Dhabi, with plans to open additional new locations in Egypt and the Gulf. • Tropicana for Food Industries (TFI), the Restaurant division’s second subsidiary, supplies all Amer-operated restaurants. The Group has planned new investments in TFI to allow it to improve efficiency and capacity with a view to providing food preparation services for non-Amer brands. Further announcements in this respect are expected in 2H14. Forward Looking: • Tropicana for Projects continues to explore the rights to a potential new upscale dining franchise and is actively exploring opportunities to franchise Group-owned brands in the GCC.
•
Management retained senior Egyptian entrepreneur and banker Alaa Samaha to manage the Group’s Restaurant activities in a turnaround scenario. In 4Q13, TP began negotiations to acquire rights to a new upscale dining franchise and began finalization of two new Amer-owned brands for launch in FY14. The division is also open to new licensing opportunities for Amer-owned brands, where it sees strong potential in the Gulf Cooperation Council (GCC) countries at this time.
6 Brief Investor Presentation - 2Q / 1H14
Malls LOB: Key Figures & Recent Developments All figures in EGP mn unless otherwise indicated
Gross Leasable Area (sqm)
Number of Tenants (Tenants) Revenues Operating Profit
Operating Profit Margin (%)
2013 •
•
Malls segment was captured on the Other Income line. Beginning with 1Q14, the Group has revised accounting policies for 2014 to allow revenue from the Malls segment to be included in Amer Group’s top line following its restructuring. The year-on-year decrease in GLA comes as a result of the Division eliminating a planned but low-margin floor at an under-development property.
7 Brief Investor Presentation - 2Q / 1H14
1H13
1H14
Change
46,502
86,113
85%
223
367
65%
16.1
22.9
43%
6.2
5.4
-14%
39%
23%
-40%
1H14 • The Malls LOB reported a decline in Operating Profit in 1H14, owing to marketing and other expenses related to the grand opening in 2Q14 of Porto Cairo Mall as well as the establishment of a new company to manage the division. • Gross Leasable Area (GLA) expanded sharply Y-on-Y with the grand opening of the flagship Porto Cairo Mall in April. Management announced in June that the Group is ontrack to launch the second phase of the Porto Cairo Mall in 2H14 with anchor tenants to include top brands controlled by global franchise players; as of June, the Group had secured tenants for more than 50% of the gross leasable area at the mall. • Meanwhile, the division continues to focus on lease-out activities at Porto October; has inaugurated its Porto Dead Sea development in Jordan and is preparing to enter the Moroccan market. Forward Looking: • The division is targeting a portfolio of 17 managed properties by the end of 2018.
Hotels LOB: Key Figures & Recent Developments All figures in EGP mn unless otherwise indicated
1H13
1H14
Change
159,145
113,088
-29%
Room Revenues
13.1
22.4
71%
Food Revenues
6.8
16.6
145%
Other Revenues
1.7
4.4
154%
Total Revenues
21.6
43.4
101%
Operating Profit
(9.3)
2.1
NM
-43%
5%
NM
Available Rooms (Room nights)
Operating Profit Margin (%)
2013 •
Amer Group views a vibrant Hotels division as central to its communities. Negative contributions to operating profit from three of our properties in FY13 came on the back of adverse economic conditions in Egypt (which, together with national events, saw domestic tourism decline) as well as the impact of travel advisories and tourism confidence on the foreign tourism market. The Group looks forward to a sharp and steady recovery in Hotel division performance as Egypt makes progress on its roadmap and exits the current transition period.
8 Brief Investor Presentation - 2Q / 1H14
1H14 •
•
The Hotels segment saw Revenue double — and saw an even more dramatic improvement at the Operating Profit level, where the division reported a positive EGP 2.1 mn, as compared to a loss of EGP 9.3 mn in 1H13. The reversal comes as a result of both a strong marketing effort and what management believes is an uptick in consumer sentiment. In June 2014 the Group inaugurated its Porto Matrouh Beach Resort development which enjoyed a 58% occupancy rate during its first month of operations. The Group plans to further market the new resort and gradually raise its average room rate during 2H14.
Retail & Others: Key Figures All figures in EGP mn unless otherwise indicated
1H13
1H14
Change
Revenues
(EGP mn)
7.6
24.0
78.6%
Operating Profit
(EGP mn)
(36.1)
(38.2)
5.8%
•
Other Group activities include Total Facilities Management (Total FM, which provides facilities management and maintenance for all Amer Group developments), Porto Home (home furnishing retail), newly established entities, special purpose vehicles and holding-level functions at Amer Group.
•
Other Income on the Income Statement relates primarily to transfer units (cancellations and rebooking) and revenues from sponsorships and teleferique operations, among other non-core activities. Prior to 1Q14, Malls segment was captured on the Other Income line. Beginning with this quarter, the Group has revised accounting policies for 2014 to allow revenue from the Malls segment to be included in Amer Group’s top line following its restructuring.
9 Brief Investor Presentation - 2Q / 1H14
Company Overview Business Overview •
•
•
• • •
Shareholder Structure (2Q14)
Amer Group (AMER.CA on the EGX), is a leading regional developer of large-scale, mixed-use family-friendly communities that combine upscale residential, retail and office space in addition to world-class restaurants The Group operates in five lines of businesses generating multiple revenue streams, comprising Real Estate, Restaurants, Malls, Hotels, and Retail, and a total backlog of projects worth EGP 6.95 bn in 1H14
20.54% 6.78%
7.30%
Mohamed El-Amin Ragb Amer Wakf Ltd SOL Global Holding Limited Finby Estates Limited Egyptian Wakf Ltd. Free Float
35.18%
Recent Corporate Developments
The Group’s geographic footprint includes Egypt, Morocco, Jordan and Syria
•
Other wholly-owned Amer subsidiaries offer facilities management, sales and vacation club services, among others, to Amer developments
•
10 Brief Investor Presentation - 2Q / 1H14
14.54%
3.51%
Amer Group possesses a total land bank of 9.3 mn sqm and a total built up area of 5.6 mn sqm in 1H14, which does not include six upcoming major developments in Egypt Since 2005, the Group has sold 18,392 units in Porto developments
Lantess Internatinal Limited
11.91%
The Board of Directors voted to adopt the Chairman’s proposal to raise the company’s issued capital from EGP 547,145,357.28 to EGP 1,367,863,393.2 by utilizing the reserves and amending the par value of the share from EGP 0.12 to EGP 0.30. The Group restructured its shareholder structure in June 2014, which affected the ownership stake of Mr. Mansour Amer, the Group’s Founder and Chairman, and an Egyptian endowment which supports funding for charity projects.
4-Year Select Indicators Our Financial Performance (EGP mn, 2010 – 1H14) 1,085
557 961 662
Working Capital
578
637.1
Net Income
247
368
156 32
16
36
37
44
572
801 537 409
Gross Profit
323 151
260
261
EBT
238
1,548 1,048
Net Sales
11 Brief Investor Presentation - 2Q / 1H14
1,153 878
675 438
1H14
2012
1H13
2011
2013
2010
66
Income Statement: 3-Year Comparative All figures in EGP
1H14
1H13
1H12
674,802,225
437,568,311
509,006,649
(414,820,767)
(286,991,872)
(285,827,069)
259,981,458
150,576,439
223,179,580
(114,301,535)
(57,042,245)
(33,456,006)
(97,674,467)
(69,051,270)
(63,273,446)
29,760,868
34,822,762
25,913,849
(31,550,569)
(30,999,531)
17,324,436
Operating Profit
46,215,755
28,306,155
135,039,541
Interest Income
-
-
-
12,686,070
(12,406,655)
(5,769,705)
7,367,535
21,068,249
3,406,927
-
-
594,015
66,269,360
36,967,749
133,270,778
(21,884,089)
(20,499,075)
(6,480,572)
44,385,271
16,468,674
126,790,206
REVENUE Cost of Revenue GROSS PROFIT Selling and marketing expenses General and administrative expenses Other income Other operating expenses
Finance Costs Foreign exchange loss Company's share in the investment sister company PROFIT FOR THE YEAR BEFORE TAX Income Tax PROFIT FOR THE YEAR
Profit attributable to: Owners of the parent
31,128,249
17,112,077
128,118,265
Minority Interests
13,257,022
(643,403)
(328,059)
12 Brief Investor Presentation - 2Q / 1H14
Balance Sheet: Comparative All figures in EGP
30 June 2014
31 December 2013
Non-current assets
(con’t) Accrued expenses and other payables
Fixed assets
548,558,382
558,693,947
Total current liabilities
Projects under construction
359,633,681
339,978,049
Working Capital
Investment property assets
220,111,516
222,458,245
1,242,403
2,863,315
Total Invested Funds
Intangible assets
Investment in associate Foreign of joint projects
2,524,720
2,524,720
303,180,606
287,934,421
Restricted deposits due to units owners
485,282,417
454,202,082
38,364,637
16,574,575
1,958,898,362
1,885,229,354
Deferred tax liability Total non-current assets
Development properties
Share capital Translation of foreign entity Legal reserve General Reserve
Retained earnings
2,936,940,547
30,647,500
22,477,300
Accounts and notes receivable
144,239,940
197,657,136
Minority Interest
Prepayments and other receivables
426,013,625
381,090,608
TOTAL EQUITY
Bank balances and cash
1,010,680,998
818,006,966
Non-current liabilities
Total current assets
4,988,565,746
4,356,172,557
Term loans
Total assets
6,947,464,108
6,241,401,911
Land purchase liability
Current liabilities
Provisions Bank overdrafts Land purchase liability
4,294,987 31,100,311
9,058,011 49,120,773 32,365,419
3,653,894,173
2,986,458,074
268,944,512
211,155,341
Term loans
77,187,788
105,661,381
Income tax payable
38,809,734
42,983,464
Advanced from customers Accounts and notes payable
13 Brief Investor Presentation - 2Q / 1H14
48,440,808
341,361,490
4,620,958,050
3,778,163,953
367,607,696
578,008,604
2,326,506,058
2,463,237,958
547,145,357
364,763,571
(1,890,616)
(118,055)
Equity
3,376,983,683
Inventories
498,285,737
Financed as follows:
Other reserve
Current assets
30 June 2014 31 December 2013
Equity attributable to owner of the company
73,523,307
60,823,440
842,330,408
842,330,408
14,298,665
14,298,665
286,579,431
638,371,926
1,761,986,552 10,181,487
1,920,469,955 (2,385,897)
1,772,168,039
1,918,084,058
56,606,621
76,825,825
12,448,981
14,125,993
Deposits due to units owners
485,282,417
454,202,082
Total non-current liabilities
554,338,019
545,153,900
2,326,506,058
2,463,237,958
Total Shareholders' Equity and Long Term liabilities
AMER Group Share Price History: Market & Company Specific Events Share Data
Volume
Amer
EGX30
350
Ticker: AMER.CA Listed on:
Dec. 2010
120000000
300
100000000
250
80000000
200 60000000 150
Total Shares:
Fiscal year ends: 31 December
20000000
50 0
0 2012/08/21 2012/09/02 2012/09/12 2012/09/24 2012/10/04 2012/10/17 2012/10/31 2012/11/12 2012/11/25 2012/12/05 2012/12/17 2012/12/27 2013/01/10 2013/01/22 2013/02/04 2013/02/14 2013/02/26 2013/03/10 2013/03/20 2013/04/01 2013/04/11 2013/04/23 2013/05/09 2013/05/21 2013/06/02 2013/06/12 2013/06/24 2013/07/07 2013/07/17 2013/07/30 2013/08/13 2013/08/26 2013/09/05 2013/09/17 2013/09/29 2013/10/10 2013/10/28 2013/11/10 2013/11/20 2013/12/02 2013/12/12 2013/12/24 2014/01/06 2014/01/20 2014/01/30 2014/02/11 2014/02/23 2014/03/05 2014/03/17 2014/03/27 2014/04/08 2014/04/22 2014/05/06 2014/05/18 2014/05/29 2014/06/11 2014/06/23 2014/07/06 2014/07/16 2014/08/03 2014/08/13
4,559,544,644
40000000
100
Market Capitalization: 6,200,980,715.84 Index Inclusions: EGX30
Events Affecting AMER Group’s Stocks • May 2014: Cash Dividend Distribution EGP 0.09 per share • April 2014: Porto Cairo Mall
52 weeks high/low:
• April 2014: Porto Dead Sea
EGP 2.01/ EGP 0.48
• March 2014: Stock Dividend 1:2 • March 2014: Bonus Shares
• June 2013: Overthrow of Islamist president Mohamed Morsi 14 Brief Investor Presentation - 2Q / 1H14
Contact Us amer-group.com Muhammad El Ebrashi Group Treasury and Investor Relations Director [email protected] Mohamed Zaki Investor Relations Analyst [email protected]
Thank You
Disclaimer This presentation has been prepared by the Investor Relations, Corporate Finance and Management of Amer Group Holding Company S.A.E. (the “Company”) solely for information purpose to Research Analysts / Institutional Investors. The presentation is confidential and does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to buy, subscribe or otherwise acquire, any securities of the Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. The presentation has been provided to you solely for your information and background and is subject to amendment. The presentation contains forward looking, confidential and important information, data, figures, pictures about the company; and such information is owned by the Company. The presentation or any part of it may not be reproduced or redistributed, passed on, or the contents otherwise divulged in whole or in part or otherwise disseminated, directly or indirectly, to any other person or published in whole or in part for any purpose without the prior written consent of Amer Group Investor Relations Department, Amer Group Holding. Some of the information contained in this document is still in draft form and has not been legally verified and will only be finalized at the time of Admission and thus may be abridged or incomplete. The information used herein is based on sources that the Company believes to be reliable and accurate. However, no representation or warranty, express, assumed or implied, is made by the Company as to the fairness, accuracy, reasonableness or completeness of the information contained herein and no reliance should be placed on it. Neither the Company, their respective advisers, the existing shareholders of the Company, connected persons of the Company or any other person accepts any liability or responsibility for any loss howsoever arising, directly or indirectly, from the presentation or its contents. The presentation and any materials distributed in connection with the presentation may include forward-looking statements. Forwardlooking statements may be indicated by words such as “may,” “will,” “would,” “should,” “expect,” “intend,” “estimate,” “anticipate, “believe” and similar expressions. These forward-looking statements are statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, including, without limitation, the risks and uncertainties to be set forth in the Prospectus, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in the presentation. In addition, even if the Company's results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in the presentation, those results or developments may not be indicative of results or developments in future periods. The Company does not undertake any obligation to review, update or confirm analysts’ expectations or estimates or to release publicly any revisions to any forwardlooking statements to reflect events that occur or circumstances that arise after the date of the presentation. This document and any materials distributed in connection with this document are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. In Egypt, unauthorized dissemination of the information contained herein to the public in whatever form is prohibited and constitutes a violation under Egyptian law.
Agenda
Key Financial Highlights
LOB Highlights
Company Overview
Outlook & Guidance
Key Financial Highlights
•
Amer Group reported a 1H14 Net Profit of EGP 44 mn on Revenues of EGP 675 mn.
•
Beginning with 1Q14, Group Revenues have been reclassified to bring Malls LOB revenue to the top line of Group Statutory Financials. Historical figures have been restated.
•
Historical sales recognized as revenues in 1H14 reflect the sharp concentration of sales in specific locations and community types prior to the launch of the Group’s diversification drive in 2013. Second home communities accounted for 90.0% of recognized real estate revenues, with commercial real estate sales accounting for the remaining 10%. Within total Recognized Real Estate Revenues, three second-home developments together accounted for 74% of total recognized real estate revenues.
•
By comparison, New Real Estate Sales in 1H14 were distributed as 39.1% second-home communities, 36.9% first-home communities, and 24.0% commercial. While one community accounted for 34.7% of sales, no single other community accounted for more than 11.5% of New Real Estate Sales in 2Q14.
4 Brief Investor Presentation - 2Q / 1H14
Real Estate LOB: Key Figures & Recent Developments All figures in EGP mn unless otherwise indicated
Total Number of Units (Units)
Units Sold (Units) Units Delivered (Units) Total New Sales (Value ) Revenues Operating Profit
Operating Profit Margin (%)
2013
Porto Agadir (Morocco): • Amer Group announced the signing of an agreement with the Moroccan Ministry of Tourism to develop “Porto Agadir.” The project will cover 1,200,000 sqm on the coast of the Atlantic Ocean. Porto Dead Sea (Jordan): • Amer Group signed an agreement with the Jordanian government to implement the “Porto Dead Sea” project in Jordan. The USD 250 mn investment is expected to be comprised of a five-star hotel, villas and apartments, making up more than 3,000 rooms. The project aims to increase the number of local and foreign tourists coming to the Dead Sea by around 500,000 persons yearly. 5 Brief Investor Presentation - 2Q / 1H14
1H13
1H14
Change
16,513
18,392
11%
1,553
1,879
21%
422
1,038
146%
1,507.8
1,914.1
27%
306.4
476.1
55%
69.6
76.5
10%
23%
16%
-29%
1H14 •
The Real Estate LOB has begun delivery of units at the Golf Bay Marina development on the North Coast as well as at the Porto Matrouh development on the Mediterranean.
•
April 2014 saw the sales soft-launch of Porto Dead Sea, an 800,000 sqm development with a projected built-up area of c. 840,000 sqm, which will ultimately include a five-star Porto hotel; 11,000 residential units; and three malls with 550 shops and restaurants.
Forward Looking: • Porto Agadir (Morocco): Designs for the group’s flagship development in Morocco, Porto Agadir, are nearing completion. •
The Real Estate LOB is targeting deliveries in FY14 at South Beach, Porto Sharm, new phases in Porto Cairo Mall, Porto Golf Bay, Porto Marina Residence, Porto Matrouh and the Hanging Gardens communities in Golf Porto Sokhna.
Restaurants LOB: Key Figures & Recent Developments All figures in EGP mn unless otherwise indicated
1H13
1H14
Change
47
61
30%
9,130
9,241
1%
105
114
8%
LOB Revenue
98.1
108.2
10%
Operating Profit
(2.3)
0.4
NM
-2%
0%
NM
Operational Restaurants (Count) Total Available Seats (Number) Average Spend per Cover
Operating Profit Margin (%)
2013
1H14
•
• Management’s turnaround strategy aiming to bring the Restaurants division back into positive operating profit territory bore fruit in 1H14, as the group posted a 0.4 mn Operating Profit in the half, compared to a loss of EGP 2.3 mn in 1H13. • New restaurant openings in 1H14 include three outlets at Porto Cairo Mall (Studio Misr, Johnny Carino’s and Chili’s) and two at Cairo Festival City (Chili’s and Studio Misr) in Egypt as well as a Studio Misr in Abu Dhabi, with plans to open additional new locations in Egypt and the Gulf. • Tropicana for Food Industries (TFI), the Restaurant division’s second subsidiary, supplies all Amer-operated restaurants. The Group has planned new investments in TFI to allow it to improve efficiency and capacity with a view to providing food preparation services for non-Amer brands. Further announcements in this respect are expected in 2H14. Forward Looking: • Tropicana for Projects continues to explore the rights to a potential new upscale dining franchise and is actively exploring opportunities to franchise Group-owned brands in the GCC.
•
Management retained senior Egyptian entrepreneur and banker Alaa Samaha to manage the Group’s Restaurant activities in a turnaround scenario. In 4Q13, TP began negotiations to acquire rights to a new upscale dining franchise and began finalization of two new Amer-owned brands for launch in FY14. The division is also open to new licensing opportunities for Amer-owned brands, where it sees strong potential in the Gulf Cooperation Council (GCC) countries at this time.
6 Brief Investor Presentation - 2Q / 1H14
Malls LOB: Key Figures & Recent Developments All figures in EGP mn unless otherwise indicated
Gross Leasable Area (sqm)
Number of Tenants (Tenants) Revenues Operating Profit
Operating Profit Margin (%)
2013 •
•
Malls segment was captured on the Other Income line. Beginning with 1Q14, the Group has revised accounting policies for 2014 to allow revenue from the Malls segment to be included in Amer Group’s top line following its restructuring. The year-on-year decrease in GLA comes as a result of the Division eliminating a planned but low-margin floor at an under-development property.
7 Brief Investor Presentation - 2Q / 1H14
1H13
1H14
Change
46,502
86,113
85%
223
367
65%
16.1
22.9
43%
6.2
5.4
-14%
39%
23%
-40%
1H14 • The Malls LOB reported a decline in Operating Profit in 1H14, owing to marketing and other expenses related to the grand opening in 2Q14 of Porto Cairo Mall as well as the establishment of a new company to manage the division. • Gross Leasable Area (GLA) expanded sharply Y-on-Y with the grand opening of the flagship Porto Cairo Mall in April. Management announced in June that the Group is ontrack to launch the second phase of the Porto Cairo Mall in 2H14 with anchor tenants to include top brands controlled by global franchise players; as of June, the Group had secured tenants for more than 50% of the gross leasable area at the mall. • Meanwhile, the division continues to focus on lease-out activities at Porto October; has inaugurated its Porto Dead Sea development in Jordan and is preparing to enter the Moroccan market. Forward Looking: • The division is targeting a portfolio of 17 managed properties by the end of 2018.
Hotels LOB: Key Figures & Recent Developments All figures in EGP mn unless otherwise indicated
1H13
1H14
Change
159,145
113,088
-29%
Room Revenues
13.1
22.4
71%
Food Revenues
6.8
16.6
145%
Other Revenues
1.7
4.4
154%
Total Revenues
21.6
43.4
101%
Operating Profit
(9.3)
2.1
NM
-43%
5%
NM
Available Rooms (Room nights)
Operating Profit Margin (%)
2013 •
Amer Group views a vibrant Hotels division as central to its communities. Negative contributions to operating profit from three of our properties in FY13 came on the back of adverse economic conditions in Egypt (which, together with national events, saw domestic tourism decline) as well as the impact of travel advisories and tourism confidence on the foreign tourism market. The Group looks forward to a sharp and steady recovery in Hotel division performance as Egypt makes progress on its roadmap and exits the current transition period.
8 Brief Investor Presentation - 2Q / 1H14
1H14 •
•
The Hotels segment saw Revenue double — and saw an even more dramatic improvement at the Operating Profit level, where the division reported a positive EGP 2.1 mn, as compared to a loss of EGP 9.3 mn in 1H13. The reversal comes as a result of both a strong marketing effort and what management believes is an uptick in consumer sentiment. In June 2014 the Group inaugurated its Porto Matrouh Beach Resort development which enjoyed a 58% occupancy rate during its first month of operations. The Group plans to further market the new resort and gradually raise its average room rate during 2H14.
Retail & Others: Key Figures All figures in EGP mn unless otherwise indicated
1H13
1H14
Change
Revenues
(EGP mn)
7.6
24.0
78.6%
Operating Profit
(EGP mn)
(36.1)
(38.2)
5.8%
•
Other Group activities include Total Facilities Management (Total FM, which provides facilities management and maintenance for all Amer Group developments), Porto Home (home furnishing retail), newly established entities, special purpose vehicles and holding-level functions at Amer Group.
•
Other Income on the Income Statement relates primarily to transfer units (cancellations and rebooking) and revenues from sponsorships and teleferique operations, among other non-core activities. Prior to 1Q14, Malls segment was captured on the Other Income line. Beginning with this quarter, the Group has revised accounting policies for 2014 to allow revenue from the Malls segment to be included in Amer Group’s top line following its restructuring.
9 Brief Investor Presentation - 2Q / 1H14
Company Overview Business Overview •
•
•
• • •
Shareholder Structure (2Q14)
Amer Group (AMER.CA on the EGX), is a leading regional developer of large-scale, mixed-use family-friendly communities that combine upscale residential, retail and office space in addition to world-class restaurants The Group operates in five lines of businesses generating multiple revenue streams, comprising Real Estate, Restaurants, Malls, Hotels, and Retail, and a total backlog of projects worth EGP 6.95 bn in 1H14
20.54% 6.78%
7.30%
Mohamed El-Amin Ragb Amer Wakf Ltd SOL Global Holding Limited Finby Estates Limited Egyptian Wakf Ltd. Free Float
35.18%
Recent Corporate Developments
The Group’s geographic footprint includes Egypt, Morocco, Jordan and Syria
•
Other wholly-owned Amer subsidiaries offer facilities management, sales and vacation club services, among others, to Amer developments
•
10 Brief Investor Presentation - 2Q / 1H14
14.54%
3.51%
Amer Group possesses a total land bank of 9.3 mn sqm and a total built up area of 5.6 mn sqm in 1H14, which does not include six upcoming major developments in Egypt Since 2005, the Group has sold 18,392 units in Porto developments
Lantess Internatinal Limited
11.91%
The Board of Directors voted to adopt the Chairman’s proposal to raise the company’s issued capital from EGP 547,145,357.28 to EGP 1,367,863,393.2 by utilizing the reserves and amending the par value of the share from EGP 0.12 to EGP 0.30. The Group restructured its shareholder structure in June 2014, which affected the ownership stake of Mr. Mansour Amer, the Group’s Founder and Chairman, and an Egyptian endowment which supports funding for charity projects.
4-Year Select Indicators Our Financial Performance (EGP mn, 2010 – 1H14) 1,085
557 961 662
Working Capital
578
637.1
Net Income
247
368
156 32
16
36
37
44
572
801 537 409
Gross Profit
323 151
260
261
EBT
238
1,548 1,048
Net Sales
11 Brief Investor Presentation - 2Q / 1H14
1,153 878
675 438
1H14
2012
1H13
2011
2013
2010
66
Income Statement: 3-Year Comparative All figures in EGP
1H14
1H13
1H12
674,802,225
437,568,311
509,006,649
(414,820,767)
(286,991,872)
(285,827,069)
259,981,458
150,576,439
223,179,580
(114,301,535)
(57,042,245)
(33,456,006)
(97,674,467)
(69,051,270)
(63,273,446)
29,760,868
34,822,762
25,913,849
(31,550,569)
(30,999,531)
17,324,436
Operating Profit
46,215,755
28,306,155
135,039,541
Interest Income
-
-
-
12,686,070
(12,406,655)
(5,769,705)
7,367,535
21,068,249
3,406,927
-
-
594,015
66,269,360
36,967,749
133,270,778
(21,884,089)
(20,499,075)
(6,480,572)
44,385,271
16,468,674
126,790,206
REVENUE Cost of Revenue GROSS PROFIT Selling and marketing expenses General and administrative expenses Other income Other operating expenses
Finance Costs Foreign exchange loss Company's share in the investment sister company PROFIT FOR THE YEAR BEFORE TAX Income Tax PROFIT FOR THE YEAR
Profit attributable to: Owners of the parent
31,128,249
17,112,077
128,118,265
Minority Interests
13,257,022
(643,403)
(328,059)
12 Brief Investor Presentation - 2Q / 1H14
Balance Sheet: Comparative All figures in EGP
30 June 2014
31 December 2013
Non-current assets
(con’t) Accrued expenses and other payables
Fixed assets
548,558,382
558,693,947
Total current liabilities
Projects under construction
359,633,681
339,978,049
Working Capital
Investment property assets
220,111,516
222,458,245
1,242,403
2,863,315
Total Invested Funds
Intangible assets
Investment in associate Foreign of joint projects
2,524,720
2,524,720
303,180,606
287,934,421
Restricted deposits due to units owners
485,282,417
454,202,082
38,364,637
16,574,575
1,958,898,362
1,885,229,354
Deferred tax liability Total non-current assets
Development properties
Share capital Translation of foreign entity Legal reserve General Reserve
Retained earnings
2,936,940,547
30,647,500
22,477,300
Accounts and notes receivable
144,239,940
197,657,136
Minority Interest
Prepayments and other receivables
426,013,625
381,090,608
TOTAL EQUITY
Bank balances and cash
1,010,680,998
818,006,966
Non-current liabilities
Total current assets
4,988,565,746
4,356,172,557
Term loans
Total assets
6,947,464,108
6,241,401,911
Land purchase liability
Current liabilities
Provisions Bank overdrafts Land purchase liability
4,294,987 31,100,311
9,058,011 49,120,773 32,365,419
3,653,894,173
2,986,458,074
268,944,512
211,155,341
Term loans
77,187,788
105,661,381
Income tax payable
38,809,734
42,983,464
Advanced from customers Accounts and notes payable
13 Brief Investor Presentation - 2Q / 1H14
48,440,808
341,361,490
4,620,958,050
3,778,163,953
367,607,696
578,008,604
2,326,506,058
2,463,237,958
547,145,357
364,763,571
(1,890,616)
(118,055)
Equity
3,376,983,683
Inventories
498,285,737
Financed as follows:
Other reserve
Current assets
30 June 2014 31 December 2013
Equity attributable to owner of the company
73,523,307
60,823,440
842,330,408
842,330,408
14,298,665
14,298,665
286,579,431
638,371,926
1,761,986,552 10,181,487
1,920,469,955 (2,385,897)
1,772,168,039
1,918,084,058
56,606,621
76,825,825
12,448,981
14,125,993
Deposits due to units owners
485,282,417
454,202,082
Total non-current liabilities
554,338,019
545,153,900
2,326,506,058
2,463,237,958
Total Shareholders' Equity and Long Term liabilities
AMER Group Share Price History: Market & Company Specific Events Share Data
Volume
Amer
EGX30
350
Ticker: AMER.CA Listed on:
Dec. 2010
120000000
300
100000000
250
80000000
200 60000000 150
Total Shares:
Fiscal year ends: 31 December
20000000
50 0
0 2012/08/21 2012/09/02 2012/09/12 2012/09/24 2012/10/04 2012/10/17 2012/10/31 2012/11/12 2012/11/25 2012/12/05 2012/12/17 2012/12/27 2013/01/10 2013/01/22 2013/02/04 2013/02/14 2013/02/26 2013/03/10 2013/03/20 2013/04/01 2013/04/11 2013/04/23 2013/05/09 2013/05/21 2013/06/02 2013/06/12 2013/06/24 2013/07/07 2013/07/17 2013/07/30 2013/08/13 2013/08/26 2013/09/05 2013/09/17 2013/09/29 2013/10/10 2013/10/28 2013/11/10 2013/11/20 2013/12/02 2013/12/12 2013/12/24 2014/01/06 2014/01/20 2014/01/30 2014/02/11 2014/02/23 2014/03/05 2014/03/17 2014/03/27 2014/04/08 2014/04/22 2014/05/06 2014/05/18 2014/05/29 2014/06/11 2014/06/23 2014/07/06 2014/07/16 2014/08/03 2014/08/13
4,559,544,644
40000000
100
Market Capitalization: 6,200,980,715.84 Index Inclusions: EGX30
Events Affecting AMER Group’s Stocks • May 2014: Cash Dividend Distribution EGP 0.09 per share • April 2014: Porto Cairo Mall
52 weeks high/low:
• April 2014: Porto Dead Sea
EGP 2.01/ EGP 0.48
• March 2014: Stock Dividend 1:2 • March 2014: Bonus Shares
• June 2013: Overthrow of Islamist president Mohamed Morsi 14 Brief Investor Presentation - 2Q / 1H14
Contact Us amer-group.com Muhammad El Ebrashi Group Treasury and Investor Relations Director [email protected] Mohamed Zaki Investor Relations Analyst [email protected]
Thank You
