Company Logo

Talaat Mostafa Group Holding Company

Group Presentation
J June 2010

Safe Harbour Statement
Company Logo

Certain information disclosed in this presentation consists of forward looking statements reflecting the current view of the company with respect to future events, events and are subject to certain risks, risks uncertainties and assumptions. 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 i incorrect, t actual t l results lt may vary materially t i ll from f th those d described ib d in i such h forward f d looking l ki statements. t t t



TMG GC Corporate P Profile fil

Company Logo

TMG at a Glance Projects Development, Achievements and Growth Prospects Share Data Board of Directors and Corporate Governance, Executive Team and Business Partners Strategy and Business Model, Quality Control and Operating Systems

Market and Operational Review

Macroeconomic Indicators, Indicators Real Estate Drivers, Drivers Tourism Drivers Financial and Operational Review, Hotels & Resorts Operational Review

Future Growth

Real Estate Development Plans And Projects Progress Real Estate Future Growth Hotels & Resorts Future Growth

Investment and Risk Considerations

TMG GC Corporate P Profile fil Company Logo TMG at a Glance Projects Development Achievements and Growth Prospects Share Data Board of Directors and Corporate Governance Executive Team and Business Partners Strategy and business model Quality Control and Operating Systems .

000 on-sites workforce 50 mn sqm of quality land bank in prime locations and high growth areas Geographic Diversification: Expanding in the region with an eye on markets of shared similarities with the Egyptian real estate markets First market: KSA markets. shopping malls and office parks and soft launch of a fourth boutique hotel specifically tailored to business travelers A yearly turnover that reached EGP 14 bn in 2008 representing 17.TMG TMG at a Glance A successful. Business line Diversification to increase contribution of stable income: Five additional Hotel & Resort projects currently under development Self contained urban communities targeting the middle to upper middle classes Different styles and size of units that cater to changes of income levels.84bn. average household size.2bn.6 thousand units A sales backlog of EGP 23. Healthy financial position and minimal gearing: cash EGP 1. 3. Company Logo 5 .2010. debt EGP 2. life style and consumer preference Three operational large scale luxury hotel complexes including high-end residencies.3 bn at the end of June 2010.5 8 5 mn sqm of land was developed and over 57 thousand real estate units with a BUA that exceeded 9 mn sqm were sold Strong management capabilities with 10 board members. s ccessf l 20-year 0 ear track record in which hich 8.000 employees and 60. debt to equity ratio of 1:12 as at June 30. 13 vice presidents.

TMG Projects Development Company Logo 6 .

5% 2. upcoming in  next  three to four years •Increase contribution of stable income from operating assets  to reach 35% of total revenue ( a target of 5.8% Growth Prospects Breakdown of Land Bank Company Logo 43.2% 0.725 hotel keys and 2.1% 2.000 hotel rooms) •Maintain minimum of 35 mn sqm of land inventory through  7 on going local and regional expansion • .524 attached residential units in  various design and development stages.7% •Development rights of 50 million sqm in Egypt and KSA • • • • • Developed p  8.5 million sqm q of land Sold over 57 thousand residential units Developed over 9 million sqm residential  BUA S ld 30% of Sold f madinaty di t residential id ti l BUA (as (   per revised program area with 19%  increase in residential BUA*). 47% of Al  Rehab II and 59% of Al Rabwa II units A Award d winning i i  operational ti l  h hotels t l * Revised  areas of November 2009 Master development p  of 8.3 bn to be delivered and recognized  over next four y years • 1.5% 0.8% 1.4% 48.14 million sqm q of q quality y land  for strategic non‐residential developers for value  creation and knowhow • Sales backlog of 23.TMG A hi Achievements t Breakdown of Sold Units 0 8% 0.

09 15.10 10.10 8.07.09 17.10 22.09 13.8 target price.03.09 13.2.08.TMG Share Data Share Performance Company Logo Shareholders Structure Other major shareholders down and EGX 30 (3.6.09 24.1 target Price Credit Suisse: EGP 10.5 target price.10 15.09 1.08.09 06.02.09 *Including Talaat Mostafa Family and Saudi group Fair Value and Target Price value by:  Deutsche Bank :      EGP 7.27% EGX Rebased 300 250 200 150 RE INDEX Rebased TMG Other shareholders including free float 23.09 22.09.62%  Y‐o‐Y appreciation in share value •Outperforming RE index (2. EGP 12.08 15.8 target price EFG :    EGP 8 .09 30. EGP 15.01.2 target price.75% TMG RE & Tourism Investment * 50.10 29.10 4.10 25.09 24. EGP 13 NAV Citigroup:  EGP 10.10 3.6.38 target price CI Capital :   EGP 10.09 10.1 NAV HSBC: EGP •21.10 07.25%) down as of  August 15.02.10 25.06.9 JP Morgan: EGP 10.7 target price HC – Al Futtaim : EGP 11.09 17.98% 100 50 0 31.08.

TMG Board of Directors and Corporate Governance Company Logo Executive and nonexecutive members with longstanding experience in real estate and construction in the MENA region Four independent and non executive members that are publicly renowned in the economic. legal and commercial circles Audit. nomination and remuneration committees h have b been appointed i d The audit committee has the responsibility to review and approve related party transactions Directors are bound by non-compete rules in Egypt. B Board d of f Directors Di t Tarek Talaat Moustafa (Executive Chairman) Hani Talaat Moustafa Yehia Mohamed Awad Omar Mohamed Awad Adel Fattouh Hammad Ali Abdallah Ali (executive) Mahmoud Mohamed Mahmoud Mohamed Hisham Al Sharif Hany Sarie El Din (Chairman of the nomination and remuneration committee) Hossam Abdallah Helal (Chairman of the audit committee) Shareholder directors Independent 9 .

000 technical staff is operational in the various projects’ sites.P. Joined: 2005 Mohamed Al Shazly – V. Over 3000 professionals are directly di l employed l di in the various sectors and subsidiary companies of the Group. Joined: 1983 Ahmed Afifi– V.P. Chief Financial Officer.TMG Executive Management Company Logo In addition to the board.P. Sales. Joined: 1995 Sami Mokhtar – V. Joined: 1992 Ayman Ali – V. Joined: 1994 Sabry Kamal – V. Operations. Joined: 2005 Ashraf El Banna – V. Hotels & Business Development. Administration of the Chairman’s Office. Joined: 1995 Mohamed Atef Atef– V. A number of committees including the Steering Committee. E Executive ti Ch Chairman i and d Vi Vice P Presidents id t Tarek Talaat Mostafa (Executive Chairman) Sherif Ghoneim– V. San Stefano Project. Sawaftah – V.P. Higher Management Committee and Executive Committee support the Management decision making process. Human Resources. In addition. Joined: 2005 Nagi El Touny – V.P. Sales and Marketing. addition a workforce of approximately 60. Joined: 2004 Ali Abdallah – V.P.P. Joined: 2000 Gamal El Guindy – V. Joined: 2004 Jihad M.P. Quality and Systems. Banking and Real Estate. Joined: 2001 10 .P.P. Joined: 1993 Zaki El Guiziri – V.P.P. V P Technical Affairs Affairs. Madinaty Project Management.P. Touristic Projects. the executive management of the company is composed of 13 Vice Presidents.

Canada for luxor design. designers of projects components and execution: Top Main contractor for our projects as Joannou and paraskavides.A. Hyundai. Al Fawzan and Al Kahtani through Al Oula for Real Estate S.TMG Business Partners The Th A A Company Logo Four F Seasons S and d Kempinski K i ki :internationally i t ti ll reputable t bl management g t chains h i of f our h hotels t l Joint Venture with Hill International for projects management joint venture with Al Mehedeb. Studio sergi. master planners. Local Saudi Partners for Saudi Developments class worldwide contractors. USA for sharm extension design WZMH. Murray and Roberts and Binladen 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 Architects as HKS.E. UK f for L Luxor Signature golf courses designers as Robert Trent Jones II and HHCP Design International 11 . Italy for marsa alam design MEP companies as MMM Canada for sharm extension I t i d Interior design i companies i as GA GA.

 reputation t ti  and d experience i Stable and recurring income from  Operating assets Scale and  Land bank positioning In‐house Centralized  Operations Top Class  Designers  and  Contractors Reputable  Business  Partners flexible phasing f p g  construction  model self financing real estate units sales Flagship Developments financing schemes  catering to  customers'  affordability Low risk. model:  (sell first  then construct) O Ongoing i  after f  sale l  integrated i d facilities f ili i   management operations 12 .TMG Strategy and Business Model Geographical  diversification Integrated  development concept Company Logo Integrated process capitalizing on brand  name.

with facilitated financial and managerial reporting. 2 2. streamlined accounting bookkeeping and consolidation. corporate governance and transparency. and an optimized cash management process. and aims to enhance customer satisfaction through the effective application of the system system. improved administration of internal controls. The result is a smooth process integration between sales. including processes for continual improvement of the system and the assurance of conformity to customer and applicable regulatory requirements. process • Feb 2008: qualified for the ISO 9001:2000 certification requirements for a quality management system and maintained the certificate upon renewal in 2009 where an organization: 1. needs to demonstrate its ability to consistently provide product that meets customer and applicable regulatory requirements. 13 .TMG Quality Control and Advanced Operating Systems Company Logo • 2007: Application of the SAP Enterprise Resources Planning System (ERP) on all functions of the Group Subsidiaries. accounting and treasury.

Market k and dO Operational i lR Review i Company Logo Macroeconomic Indicators Real Estate Market Drivers Tourism Market Drivers Financial Review Consolidated Operational Review Hotels & Resorts Operational Review .

8% 3.0% 2001/20 002 2002/20 003 2003/20 004 2004/20 005 2005/20 006 2006/20 007 2007/20 008 2008/20 009 2009/20 010 4.0% 12.0% 0.0% 16.72bn from July 2004 to march 2010 • Net international reserves reached US$35.27 bn by the end of July 2010 Growth in Real GDP 8.0% % 2.0% 4.20% 6.2% 4.0% 8.3% 4.0% 4.1% 4.0% 2001/2 2002 2002/2 2003 2003/2 2004 2004/2 2005 2005/2 2006 2006/2 2007 2007/2 2008 2008/2 2009 2009/2 2010 13.3% for FY 2009/2010 compared to 4.8% 11.2% 4.72 % in July 2010.7% for FY 2008/2009 • Growth in Construction & building was 13.2% in FY 09/10 versus 11.9% 4.2% 15.70% 5. and the lending rate at 9.75% since the reductions that took place i 2009 in • Annual headline inflation reached 10.0% 6.9% 4.9% 2 8% 2.30% Growth in Construction and Building Material 20.40% 15 .25 %.0% 0.TMG Macro Economic Indicators Company Logo • The Government estimates GDP growth to be 5.8% 14.1% 7. however experts estimate it in the range of 13% for 2010 due to the rise of global prices • Egypt’s net FDI reached US$46.0% 14.4% in FY 08/09 • Construction & building and tourism sectors constituted approximately pp y 21% of FY 08/09 GDP • These sectors are main contributors in fuelling GDP growth and have a great socioeconomic effects relating to employment and dependent industries • The CBE have kept the overnight deposit rate at 8.1% 7.

respectively Developments that support mortgage finance favorable financing schemes broadens the pool of potential customers and has proved very successful in the recent Madinaty pre-sales Supportive S i government i initiatives ii i h have l led d the h E Egyptian i mortgages market k to reach h EGP 4. 2009 up significantly from a very low base of LE 202 mn at the end of September 2005 A vast room for development with low penetration to GDP of less than 1%. 50k and 70k in the High-end.8 mn population with 60% under the age of 30.9%. respectively Growing middle to upper classes has created a growing demand for good quality. and 600.1% and 1.000 new marriages per annum Urban and general population growing by 3. Middle and Low-end residential units. and 62% of current mortgages supplied pp by y banks Lower interest rates by the CBE and new mortgage companies entering the market are expected to boost up the real estate market 16 .33 4 33 bn b at end d of f 2009.TMG Real Estate market drivers in Egypt Company Logo Growing population 78. affordable housing Supply / Demand Gap Total demand of 450k units per year. Approximate demand of 225k units per year in urban areas Supply/demand gap in urban areas of 5k.

key contributor to GDP and employs 13.54 million tourists visited Egypt and revenue from tourism was US$ 10.58 $5 58 billion up 17.6 17 6 percent from same period last year Top hard currency earner.8 billion in 2009 Over 7 million tourists visited Egypt in the first half of 2010.5% increase in receipts i over the h past f four years 12.7% of the Egyptian workforce The government’s target for tourist arrivals in Egypt is to reach 14 million tourists generating US$12 bn by 2011/2012 Government initiatives to support tourism development intensify promotion and advertising campaigns to preserve Egypt’s Egypt s share of international tourists flow Offer variety in product and open new markets while maintaining prices Increase hotel capacity to reach 240 thousand rooms by 2011/2012 up from 175 thousand rooms in 2006/2007 at an average of 15. revenue reached $5. up 21 percent from same period last year and. with an average annual growth of 25 % in arrivals and 32.TMG Tourism market drivers in Egypt •Key Figures Company Logo A fast-growing economic sector.000 15 000 rooms/ annum to mach the increase in tourism flow Offer incentives and encourage investors to support the sector growth 17 .

300  1.549  EGP MN 2Q2010 2Q2009 1Q2010 Consolidated revenue 1Q2009 18 .100  1.100  2.600  1 500  1. 3.84 BN.700  1.900  1.000  EGP MN Quarterly revenue recognition 1.TMG Financial Review Revenue Contribution 1H 2010 1H 2010 Key figures Total assets: EGP 53.4% of assets Total debt: EGP 2.800  1.638  1.400  1.500 1.8 53 8 BN Cash and cash equivalents: EGP 1.200  2.923  1.2 BN.606  1.000  1. 4% of assets Debt to Equity Ratio: 1:12 Company Logo Other Revenue 1% Hotels H t l 9% Residential 90%  Assets Growth 2.200  1.

253) (1.008) (67) (5) 469  30% (47) 422  27% (80) 342  22% (28) 314  20% 1.421) (1.143) (1.058) (80) (5) 463  29% (41) 422  26% (77) ( ) 345  21% (21) 324  20% (1. Other income and expenses Net profit before tax NPBT% co e ta tax a and d de deferred e ed ta tax income Net Profit NP% Minority's share attributable to shareholders (1.478  145 5  15  1638 1.158) (88) (7) 385  24% (49) 336  21% (8) 328  20% (7) 321  20% (1.TMG p Review Consolidated Operational Company Logo Quarterly Review 2Q2010 2Q2009 1Q2010 1Q2009 Revenues breakdown Revenues from units sold e e ues from o  Hotels ote s Revenues Other revenues Total consolidated revenue COGS breakdown Real Estate & Construction Cost Hotels Cost Services Cost Total cost of goods sold Gross profit GP% SG&A.080) 463  1Q2010 324  469  1Q2009 314  EGP MN 422  422  Gross profit Net profit before tax Net profit 19 .923  1.606  1.447  145 5  14  1.742  153 53  29  1.322) (80) (19) 502  26% (61) 441  23% (81) (8 ) 360  19% (22) 338  18% (1.549  Quarterly profits ‐ 100  200  300  400  500  502  600  2Q2010 338  385  2Q2009 336  321  441  (1.402  132 3   15  1.

TMGH&R Operational Review ARR and Rev Par 400 350 Nile Plaza 200 175 Total Reven nue (EGP Mn) Company Logo 80% 65% 64% 60% 300 250 200 150 100 50 - 150 125 100 371  213  360  223  40% 75 50 25 0 155 154 20% 1H09 USD 1H10 combined Rev Par combined ARR 0% 1H09 1H10 San Stefano 100  90  80  Total Revenue (EGP Mn) 40% Sharm El Sheikh 140  56% 58% 70% 60% 50% 40% 30% 108  35% 30% 120  Total Revenue (E EGP Mn) 70  60  50  40  30  14% 25% 25% GOP % 100  80  60  40  20  ‐ 1H09 1H10 90  20% 15% 10% 20% 10% 0% 20  10  ‐ 31  36  5% 0% GOP % GO OP % 20 1H09 1H10 .

Future Growth G h Company Logo Real Estate Development Plans Real Estate Projects Progress Real Estate Future Growth Hotels and Resorts Future Growth .

TMG Future Growth R l Estate Real E t t D Development l t • Capitalizing on landbank in existing projects • Master Development and sale of prime land  plots.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. value created through project  development and units delivery over 10 ten  year p y period • Looking for worthwhile opportunities to  expand landbank in Egypt • Expanding in the region with an eye on  markets of shared similarities with the  Egyptian real estate markets • The target is to have a minimum landbank of  35 million sqm at any point of time Hotels and Resorts Company Logo • The target is to build a stock of 5. 22 .

4% Solid financial sector.7% 4 7% in FY 08/09 (estimated to be 5. No actual problem in the Egyptian real estate market A state of pent up demand. buyers are adopting a temporary wait and see approach that will eventually end A state of stagflation resulting from over money supply may follow in 2010 TMG at start of 2010: • Sales backlog that exceeds EGP 24 bn • Delivery dates of large scale developments starting April 2010 plan for 2010: TMG’s p • Introduce products that have the right mix of size and space utilization  • Offer affordable financing scheme to attract new buyers • Delivery of sold units in Madinaty and Rehab Extension with required services making the cities alive and  ready d  f for the h  residents id  move i in • Opening of Nile Kempinski Hotel in Cairo 23 .TMG Real Estate Development p Plan 2010 Real Estate Market conditions:  • • • • Company Logo Egypt is one of the least affected economies at a GDP growth of 4.3% 5 3% in  FY 09/10) and construction growth of 11.

TMG Madinaty: development progress Key statistics* Location Total land size (m2) L d area t Land to b be d dev. ( (m2) 2) BUA to be dev. each 3-4 years long Intended residential BUA of 16.856.600. international hospital. July 2006 2020 30%* Available  for sale 70% Sold  BUA  30% Company Logo Madinaty .000 33 600 000 33.82 million m2 (19% increase in BUA)* In addition to business district. 22 schools and 3 shopping malls * As per revised program area of November 2009 ** including estimated BUA on land for mega developments 24 .600.000 .000 20.450.% of Sold Residential BUA Project description* Mix-use community designed by three prominent American companies Construction is to take place over 6 overlapping phases.908** 7. a university.380 600. (m2) Land for mega developments Expected p population p p Commence date Revised completion date % of sold residential BUA: new Cairo 33.

15 mn meters of walls 2.44 mn m3 of concrete 4. sewage and irrigation water pipes 296 km of electricity cables 81 km k of f telephone l h cables bl 4.1 mn meters of ceramics 560 k meters of marble 5.9 mn meters of paints 41 k pieces of windows and doors Updated July 15.TMG Madinaty: progress to date Infra structure work Company Logo Residential BUA work 20 mn m3 of Land levelling and roads preparation 200 kms of roads levelling work 151 k m3 of base and sub base layers 90 km of borders works 71 k m3 of asphalt work 577 km length of water. 2010 25 .8 mn m3 of digging and filling 996 k tons of cement 408 k tons of steel 2.

Children play area.199.059.830.040 621.662  1.TMG Madinaty Phase I: delivery of residential units with complete community services in 2010 Company Logo Key statistics Land area to be dev.530  Services: Southern District Land L d Use U public school restuarants.538  .486  Total Residential Units 1 716  1.9  100.864 .300 21.000  1.7  9.128. of Unit Zone 1 Apartment 267  1. (m2) Residential land area Facilities land area Residential BUA Expected population Commence date Delivery date % of developed land area: 7.528 Other Facilities Area /  m2 2 24. admin building.0  2.208.858  6 300  6.248.000  Area /  feddan 90.600  116.981 68.981 199 981  19 528  19.7  1.600  560.000 5.669  1.620 Jan 2007 April 2010.111.0  3.148.0  Land Use Area / m2 378.   4.0 21.042  Zone (I)Villa Golf 507  2.652  5. foodcourt.740  951.011 7.  nursery Villas Golf Course Roads and City Gates 5.632  10.331  2.Dec 2011 23% Phase I Residential Units to be Delivered Land Use Area / feddan Area / m2 Total BUA / m2 No.800  2. lakes  area Area /  feddan f dd 5.074  3.4  5.7  Area / m2 28.136.066  37.000  12.209  1.931.0  0.300  2.205  5.0  0.524  Zone 6 Apartment  245  1.  retail and hypermarket police and fire brigade p g bus station district management car service telephone exchange district park.716 7 208 040  3 7.4  1.903 phase 1 of sports club 60 retail shops  commercial center zones 1 and 6 community  centers: mosque.7  9.8  0.040 3.5 5.000 26 23.140  390.0  27.300  1.518  Total Apartment 512  2.6  1 5  1.873  21.971 3.199.140  37.105  Zone (II)Villa Golf 698  2.208.650  17.029.4 Services: Northern District Land Use language school British school mosque medical center central park district park Area /  feddan 6.119.0 1.381  Total Villas 1.  commercial shops.754  6.896  10.

(m2) BUA to be dev. Out of which 452 villas are remaining to be sold Rental revenue from two shopping malls (6. 13.405 million m2).274 sqm) the British school as well as club fees (membership fees) and F&B Al Rehab II: Consists of 1.% of Sold Residential BUA Sold  BUA  47% Rehab I / Rehab II Available  for sale 53% Project description* Al Rehab I: Only the shopping centre and phase 6 villas (633 villas) are yet to be completed.260 apartments (BUA 1.839.167 villas (BUA 0. an extension to Al Rehab I Total land size (m2) Land d size i to be b d dev. Company Logo Al Rehab II .000 Nov 1996 / Jul 20061 [2011] / [2017]1 47% 1.834** 687.TMG Al Rehab Development Progress Key statistics* Location: New Cairo. (m2) Land for mega developments (m2) Expected population Commence date Revised completion date % of sold residential BUA 9.88 million m2) ** including estimated BUA on land for mega developments 27 * As per revised program area of November 2009 .400 4.900.684.971 200.225 2.

320 4.965 January 2006 (Rabwa II) 2012 59% Company Logo Al Rabwa II .TMG Al Rabwa Development Progress Key statistics Location: Sixth of October City Total land size (m2) Land size to be dev. (m2) Expected population Commence date Revised completion date % of sold residential units (Rabwa II): 2.800 m2 Al Rabwa II will follow a similar model consisting of 340 villas and an interlinking 9 hole golf course 28 Al Rabwa II .828 819 028 (Rabwa II) 819.318.137. 9 hole golf course and sports pavilion.028 118. The development is fully sold and covers a land area of 1. dev (m2) BUA to be dev.% of Sold Units Project description Al Rabwa I an exclusive compound targeting the high end Construction is completed p and consists of 648 villas. a shopping centre.

fill an existing gap in the area. The plan Th l is i to t create t more value l t to th the project. etc.g. large exhibits. banking corporations.000 10 000 per sqm. e. sqm 29 .TMG Real Estate Future Growth: Capitalise on Land with unrecognized value Company Logo 2010: Delivery of residential units completed with facilities and infra structure in Rehab II and Madinaty 2010 – 2020 2010 – 2020 Master development and sale of sqm 8. j t enhance h th the operational ti l cash h fl flow and d achieve hi more f favourable bl project’s returns To be launched over a 10 years period starting 2010 after delivery of phase I units at an estimated selling price of EGP 10. medical projects. key service providers.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 Master planning and development of high quality land plots all set with the required infrastructure Land value created as a result of the development progress and delivery of a full full-fledged fledged phase of the project To be sold to strategic partners that would bring a know-how.

TMG Real Estate Future Growth: Location of Land with unrecognized value Al Rehab Madinaty Company Logo 30 .

Kingdom of Saudi Arabia Company Logo Project description Location Total land size (m2) Estimated BUA to be developed Potential extension land (m2) Sales launch date Completion date Riyadh 3.575 1.000.000 1.033 425 sqm 2112 214 sqm 31 .609. a joint stock company I j t d SAR 349million Injected 349 illi capital it l Purchased 4 mn sqm of land Obtained higher authority of Riyadh City approval of development plan Issued construction licence Signed financing agreement with Riyadh bank assigned on-site workforce Obtained Obt i d approval l to t sell ll off ff plan l f from S Saudi di authorities and the specially formed real estate committee and became listed in Saudi developers register in May 2010 Key statistics – Apartments Units Apartments average size Key statistics – Villas Units Villas average size 2.001.081 2010 2013 Development Progress Established Areez.TMG Real Estate Future Growth: Geographical Diversification: Nassamat Al Riyadh.

Madinaty. 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. and Sharm Extension and appointed Kempinski to operate the Nile hotel Raised R i d ownership hi stake t k t to 100% of f the th Four F Seasons S Sh Sharm el-Sheikh l Sh ikh R Resort tb by acquiring i i th the 39. upon which an extension of the existing Four Seasons resort will be constructed P h Purchase of fl land di in d downtown t C Cairo i t to d develop l a hi high-end h d office ffi and d hotel h t l complex l 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 management agreements with the Four Seasons renowned chain to operate the hotels in Luxor.3% 39 3% minority stake held by Kingdom Hotel Investments (KHI) 32 .TMG Hotels and Resorts Future Growth Business line l Diversification f to increase the h contribution b of f stable bl income to total revenue Company Logo Targeted g Future Growth Reach 5.000 hotel rooms with a minimum IRR of 18%.

TMG B ild Build-up of f 2.600 2 600 hotel h l rooms Operational: 684 rooms / keys Soft Launch July 2010: 191 rooms / keys Under development: 1.725 rooms / key 2013 2012 Four Seasons Sharm Extension Four Seasons Luxor 2013 Marsa Alam 2014 TMG Building Hotel Company Logo 2014 Four Seasons Madinaty 2010 Nile Hotel 2007 San Stefano 2004 Nile Plaza 2001 Four Seasons Sharm 33 200 566 684 875 971 1172 2172 2370 2600 .

8 k sqm Four Seasons Sharm Extension Rooms/ keys :96 Residential properties: 114 Operator: Four Seasons Land area 960 k sqm q BUA: 490 k sqm Marsa Alam Rooms/ keys :750 Residential properties: 2250 phase one : 1000 units Land area 3.TMG U Upcoming i hotel h l projects j Nile Hotel Rooms/ keys :191 Operator: Kempinski Land area: 2 k sqm BUA: 19.2 mn sqm BUA: 390 k sqm Company Logo Development Progress Hotel is complete Sednawy Villa extension is being revamped Appointed kempinski management company Soft launch of operations July 2010 Development Progress Purchased land Finished design Issued licenses and permits Appointed four seasons management company Development Progress Purchased land Finished design Obtained TDA approval pp Issued licenses and permits 34 .

TMG U Upcoming i hotel h l projects j Four Seasons Luxor Rooms/ keys :201 Operator: Four Seasons Land area 20 k sqm BUA: 43 k sqm Company Logo Development Progress Signed concession agreement Finished design Issued licenses and permits Appointed four seasons management company Development Progress Four Seasons Madinaty Rooms/ keys :240 Residential properties: 100 Operator: Four Seasons Land area 175 k sqm q BUA: 49 k sqm TMG Building Hotel Rooms/ keys :200 Operator: TBD Land area 2 k sqm BUA 16 k sqm BUA: Finished design Appointed four seasons management company Development Progress Purchased land Finished design Issued licenses and permits 35 .

Company Logo Investment Considerations Risks and Mitigants .

 self finance Business Model Diversified products and markets Guaranteed revenue and profitability (sales backlog) Healthy financial Position High Growth Prospects 37 .TMG Investment Considerations Real Market need Concept and selling features Company Logo Investm ment Cons sideration ns Experience and Track Record Integrated low risk.

TMG Risks and Mitigants g Risks Competition from new entrants Company Logo Mitigants Entry barriers to prospective new comers: • Integrated Business Model • First mover advantage A diversified growth plan with no over-dependence on one revenue segment.3 bn to be recognized over next four years • Stable income from operating p g assets • Entering new markets with high growth potential • 38 . Revenue growth in one segment is likely to offset sluggish growth in another • New N products d t and dl land dd development l t id ideas • Failure to achieve overall growth target Difficulty to attract customers to the new product idea Product features that meet customers needs and affordability ff d b l • A carefully planned promotion strategy that aims at introducing the product idea and publicizing its value to the target market • Economic Slowdown A safety cushion of a sales backlog that exceed EGP 23..

Company Logo Thank you .