Amer Group

September 2014

Securitization Investor Presentation

Contents

Section

Amer Group Overview 3

Amer Group Sales and Collection Process 16

Originator’s Securitized Projects in Detail 20

Servicer’s Financial Highlights 29

Securitized Portfolio Analysis 31

Real Estate Market 38

Appendix 44

Amer Group Overview I.

Amer in Brief Land Bank Breakdown (sqm mn)

Amer Group Overview Amer Group in Perspective

4

Overview

Vision &

Mission

Shareholding

Structure

Amer Group is a leading Egyptian real estate

developer offering mixed-use, family-oriented resort

destinations, grouped under the “Porto” brand

Amer endeavors to continuously improve their

efficiency, quality and service standards while

ensuring that the integrity, safety and respectful

status of our group are never compromised

≡ Amer Group (“Amer” or the

“Group”) is a leading family-

oriented real estate and

hospitality developer based in

Egypt

≡ Amer Group is the creator of

Porto: The region’s leading

creator and operator of mixed-

use, family-oriented first- and

second-home communities.

Each Porto development offers

residential units, retail shops,

hotels, restaurants and

entertainment venues in one

convenient location.

≡ The Group has five lines of

business and multiple revenue

streams: Real Estate, Malls,

Restaurants, Hotels and Others

(including Porto Vacation Club,

facilities management, and

retail, among others)

≡ Real estate activities

contributed 70.6% of Group

revenues in 1H14

Egypt Abroad

1.9

9.3

2.6

1.7

0.3 0.6

0.2 0.8

1.2

North Coast

Ain Sokhna

Cairo Marsa Matrouh

Sharm El Sheikh

Syria Jordan Morocco Total

35.18%

14.54% 6.78%

3.51%

20.79%

11.90%

7.30% Sol Global Holding Limited

Amer Wakf Limited

Mohamed Al Amin

Fineby Estates Limited

Free Float

Lantness International Limited

Egyptian Wakf Limited

5 lines of business; multiple

revenue streams

EGP 6.95 bn Total backlog

EGP 2 bn New 1H14 Real Estate sales

(recognized over 2 years)

Six Countries Spanning North Africa, GCC

9.3 mn sqm land inventory— including 6 upcoming projects

in Egypt with total BUA of 5.6 mn sqm

EGP 42 bn unsold inventory (largest in Egypt)

First-Homes Market Decisive push into the first-homes

market

At a Glance

Diversified Business Lines

Amer Group Overview Business Segments

5

• 17 projects total in Egypt,

Syria, Jordan (launched)

and Morocco (new)

• Total land area of 9.3 mn

sqm in Egypt and MENA

• Backlog of EGP 6.95 bn

(recognized over 2 years)

• 1,879 units sold in 1H14

• 1,038 units delivered 1H14

• 16 total Meeting Point malls,

including:

• 8 completed and open in

Egypt

• 5 under construction in

Egypt and Syria

• 3 licensed and in the

planning stages

• 86,113 sqm GLA (actual for

rent) across all 8 fully open

and operating Meeting Point

malls

• 376 new tenants in 1H14

• 5 new restaurants launched

in Egypt in 1H14 — three

outlets at Porto Cairo Mall

and two at Cairo Festival

City in Egypt in addition to

one in Abu Dhabi, with

plans to open additional

new locations in Egypt and

the Gulf.

• 61 restaurants across the

region

• 9,241 seats

• EGP 114 average spend

per cover

• 6 hotels in operation since

the launch of Porto Matrouh

Beach in June 2014

• 835 keys currently

• 113,088 total room nights in

1H14

• Other Group activities

include the Porto Vacation

Club, 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.

Restaurants Real Estate Malls Hotels Other

70.6% Group

1H14 Revenues

3.4% Group 1H14

Revenues

16.0% Group

1H14 Revenues

6.4% Group 1H14

Revenues

3.6% Group 1H14

Revenues

Continue with the timely execution of the roll-out schedules in

Egypt

Amer Group Overview Group Business Strategy

6

≡ Amer Group aims to be a

leading family-oriented resort /

residential destination,

providing a complete

entertainment, dining and

shopping experience

≡ Amer offers a unique

proposition, providing a service

designed and solely dedicated

to families

Highly Integrated Business Model… …Supporting the Group’s Strategy

Complemented by

Supported by

Maximum operational efficiency, providing operational flexibility

Minimum operational and development costs

Complementary businesses to ensure efficiency and customer

satisfaction

Capacity to manage growth

Ensure different income streams to support the core business

Expanding within the MENA Region: Porto World in Agadir,

Morocco is in the planning stage; on the Dead Sea in Jordan and

in Tartous, Syria are under construction

Develop and expand the brand’s image

Strengthen and develop sales efforts locally and internationally

Capture market share in the primary home market – Porto Cairo,

Porto Pyramids, Porto October & Porto New Cairo

Increase the Group’s recurring revenue streams

Amer Group Overview Business Model

7

Amer Business Model

≡ Amer has a proven track record

of executing and delivering its

projects over 2-3 years from the

time of booking (versus 4-5

years for its peers)

≡ This is carried out through an

efficient business model which

involves, a) securing

inexpensive land plots in

frontier locations that can be

developed immediately; b)

commencing with a pilot

project, which includes the hotel

and mall sections of the

development, where potential

customers can visit and get a

feel of what to expect; c) off-

plan sales, which secures the

cash flows early on

≡ This helps minimize the Group’s

exposure to cyclical downturns

relative to peers holding larger

and more expensive land banks

≡ In case of downturns in

construction, Amer can ensure

its ongoing success by

operating as a lessor for its

malls, offering facilities to

already delivered units

including electricity, water, and

maintenance, and providing

attraction, entertainment and

food services

Amer offers a unique business model whereby it does not only depend on its real estate segment for revenues – The Group

has several sources of income including hospitality, entertainment, mall management and food services.

Secure Land and

Design Projects

Construct Pilot

Project

Launch Sales of

Residential Units

Asset Management,

Customer Care &

Leaseback

Delivery of

Residential Units

Start Construction

of Residential Units

Used as a marketing tool to create

awareness about the project Sales are launched off-plan

Amer offers leaseback services to

customers willing to rent their

residential units

Units are delivered usually 2-3

years from time of booking

Construction commences once a

considerable level of booking is

achieved

Amer Group Overview Group Structure – Subsidiaries

8

Legal Structure

Egypt Syria KSA BVI

Tropicana for

Projects

Restaurants

Amer Raya 99.9% 95.0%

Delmar for Real

Estate

Development

Real Estate Development

99.7%

Deals 99.9%

Porto New

Cairo

99.9%

Porto 6 October 99.9%

Delmar for

Tourism

Development

Tourism

99.96%

Services

Amer Syria 99.9% Porto

Mediterranean

Investments

100.0% New Tropicana

for Tourism

Facilities

Tropi (2) for

Tourism

Development

99.9%

99.9%

Porto Pyramids 70.0%

Total FM 97.0%

Al Amer for

Malls

97.0%

Tropicana for

Food Industries

Porto Air

99.7%

98.5%

Porto Home 98.5%

Al Amer for

Construction

70.0%

Al Alamein for

Education &

Development

67.5%

Porto Hotels 97.0%

Food Processing

Air Taxi

Trading

Construction

Education

Marketing

Key: Group Principal Activity

Note: The subsidiaries are grouped by country of incorporation

for illustrative purposes

Transaction Subsidiaries

Porto World

Porto Club for

Investment

Gargat Misr

99.9%

99.0%

99.6%

Hospitality

Others

Amer Group Overview Organizational Structure

9

Administration &

Legal

Hassan Ezzat

CEO

Dalia El-Kordy

Delmar for Tourism

Audit

Salah Amer

CFO

Riad Refaat

Deputy Chairman

for Planning

Omar Amer

CEO

Gamal FathAllah

Deputy Chairman

Mohamed El-

Sayed

CEO

Nouh

Chairman

Mr. Mansour Amer

Porto Sharm

Golf Marina

Porto Marina

Porto October

Delmar Real

Estate

Medical

Porto Matrouh

Amer Syria

Porto Jordan

Porto Morocco

Tropi 2

Porto New

Cairo

Amer Raya

Restaurants

Porto Hotels

Amer Malls

Porto

Commercial

Total FM

Porto Vacation

Club

Porto Holidays Porto Cairo

Group Organizational Structure

CEO

Hisham AbdelKhalek

Porto Matrouh

CEO Tropi 2

Salah Amer

Name: Omar Amer

Title: Vice Chairman & Chief Business Development

Officer

Role: Marketing Strategy

Experience: Responsible for developing the Group’s

strategic plans and overseeing the implementation of the

Group’s risk management policies and procedures

Name: Mansour Amer

Title: Founder, Chairman and CEO

Role: Vision and Leadership

Experience: Started in real estate development in

1989. Creator of the Porto World concept and believed

to be the first to introduce full service dining chains in

the Middle East

Name: Salah Amer

Title: CEO, Auditing – Amer Group

Role: Audit

Experience: Holds a BA in Commerce from Cairo

University. Has over 9 years of experience with Accor

Hotels. Previously CEO of Tropi 2 (Amer subsidiary)

Amer Group Overview Management Team

10

Name: Mohamed El Sayed

Title: Vice Chairman

Role : Execution Experience

Experience: Previously responsible for developing

Porto World, 20 years of experience in Egypt and

abroad

Name: Haitham Mohamed

Title: CEO, Malls

Role: Mall Management

Experience: Holds an MBA, Graduate Diploma in

Human Resource Management and Bsc. in Commerce.

Over 15 years of global operational experience, 11

years as HR Director at Orascom Telecom Holding

Senior Management Biographies

Name: Riad Refaat

Title: CFO

Role: Financial Control

Experience: 31 years of experience in hospitality

financial management. Previously worked in Hilton and

Marriot, before joining Amer as financial controller in

1999. Holds a BA in Commerce and studied in the

School of Hotel Administration – University of Cornell

Name: Dalia El Kordy

Title: CEO, Delmar for Touristic Development

Role : Marketing and Sales

Experience: Holds an MBA from Maastricht

University, over 20 years experience in marketing and

sales. Previously worked as the Marketing Director at

Raya, Marketing Manager at Al Ahram Beverages and

Brand and Marketing Manger at El Khorafi Group

Name: Hassan Ezzat

Title: Group Legal Advisor

Nationality: Egyptian

Experience: Former Undersecretary in the Ministry of

Local Development, Member of the Administrative

Control Authority for over 30 years

1

2 3

4

5

6

7

Amer Group Overview Projects Portfolio – Geographic Presence

11

Geographical Footprint

Completed

Projects

Under

Construction

1 North Coast, Egypt

2 Ain Sokhna, Egypt

3 Greater Cairo, Egypt

4 Sharm El Sheikh, Egypt

5 Syria

Porto Marina

Golf Porto Marina

Porto Marina Residence

Porto Sokhna

Golf Porto Sokhna

Porto Tartous

Porto Matrouh

Porto South Beach(1)

Porto Cairo

Porto New Cairo

Porto October

Porto Pyramids

Porto Sharm

Sales Launch Timeline

2005 2006 2007 2008 2009 2010 2011 2012 2013

Porto Marina

Golf Porto Marina

Porto Sokhna

Porto Sokhna

Golf Porto Sokhna

Porto Cairo

Porto South Beach

Porto Marina

Residence

Porto Cairo Mall

Porto Tartous

≡ Amer Group has actively

worked to transform from an

Egypt-oriented real estate

developer into the MENA

region’s leading creator and

operator of mixed-use, family-

oriented communities. To do

this, the Group has expanded

from its roots as a real estate

company operating only in

Egypt into a company with 5

LoBs and projects throughout

the region.

Porto Matrouh

Porto Sharm

Porto Cairo Medical

Center

Porto October

Porto New Cairo

2014

onwards

Porto Cairo Mall

Porto Dead Sea

Note (1): The first stage of Porto South Beach is ready for delivery

6 Morocco

Porto Agadir

7 Jordan

Porto Dead Sea

Residential Real Estate Portfolio – Projects Overview

Amer Group Overview

12

Second Homes, Egypt

Golf

Project Overview

Location: North Coast

Land Area (Sq M): 68,000

Total BuA (Sq M): 179,779

Licensed Residential Units: 1,076

Built Residential Units: 1,076

Status: Complete

Project Overview

Location: Ain Sokhna

Land Area (Sq M): 2,174,969

Total BuA (Sq M): 643,373

Licensed Residential Units: 5,168

Built Residential Units: 3,831

Status: Incomplete

Project Overview

Location: Ain Sokhna

Land Area (Sq M): 245,980

Total BuA (Sq M): 155,700

Licensed Residential Units: 590

Built Residential Units: -

Status: Under Construction

Project Overview

Location: Sharm ElSheikh

Land Area (Sq M): 648,392

Total BuA (Sq M): 442,424

Licensed Residential Units: 3,087

Built Residential Units: -

Status: Under Construction

Project Overview

Location: North Coast

Land Area (Sq M): 18,000

Total BuA (Sq M): 79,800

Licensed Residential Units: 520

Built Residential Units: 416

Status: Complete

Project Overview

Location: Ain Sokhna

Land Area (Sq M): 151,244

Total BuA (Sq M): 367,306

Licensed Residential Units: 1,674

Built Residential Units: 1,674

Status: Complete

Project Overview

Location: North Coast

Land Area (Sq M): 1,820,609

Total BuA (Sq M): 1,441,300

Licensed Residential Units: 15,000

Built Residential Units: 5,543

Status: Incomplete

Project Overview

Location: Marsa Matrouh

Land Area (Sq M): 338,985

Total BuA (Sq M): 190,800

Licensed Residential Units: 2,269

Built Residential Units: 1,947

Status: Incomplete

Residential Real Estate Portfolio – Projects Overview Cont’d

Amer Group Overview

13

First Homes, Egypt First Homes, Syria

Amer Group expanded into the first-homes market three years ago, marked by the launch of its Porto October development

In the coming three months, Amer Group will start delivering in four projects, namely: Porto Matrouh, South Beach, Porto Sharm and Porto Cairo

Mall

Project Overview

Location: Syria

Land Area (Sq M): 186,000

Total BuA (Sq M): 511,500

Licensed Residential Units: 3,050

Built Residential Units: -

Status: Incomplete

Project Overview

Location: Cairo

Land Area (Sq M): 101,980

Total BuA (Sq M): 135,433

Licensed Residential Units: 910

Built Residential Units: -

Status: Under Construction

Project Overview

Location: Cairo

Land Area (Sq M): 54,549

Total BuA (Sq M): 209,326

Licensed Residential Units: 545

Built Residential Units: -

Status: Under Construction

Project Overview

Location: Cairo

Land Area (Sq M): 1,381,000

Total BuA (Sq M): 607,145

Licensed Residential Units: 2,195

Built Residential Units: -

Status: Under Construction

Project Overview

Location: Cairo

Land Area (Sq M): 88,175

Total BuA (Sq M): 43,455

Licensed Residential Units: 85

Built Residential Units: 70

Status: Complete

Hotels Portfolio – Overview

Amer Group Overview

14

Porto World Hotels Overview

Porto World

currently has six

operating hotels

Porto hotels are

used as a

marketing tool and

point of attraction,

to bring potential

customers to the

different project

locations

These hotels

mainly target

Egyptian families,

and therefore, the

hotels’

performance is not

dependent upon

tourism flows

Two new hotels are

expected to be

launched in 2015

Ex

isti

ng

Ho

tels

Project Number of

Rooms Operational Date Pictures

Note (1): This hotel is not owned by Amer Group, it is only managed by Porto World (it is included in Porto Vacation Club)

Up

co

min

g H

ote

ls

These hotels are not

operational yet, so there are

no available pictures for the

rooms and resort facilities

Location

330 2005 Porto Marina North Coast, Egypt

72 2009 Porto Golf Marina North Coast, Egypt

139 2007 Porto Sokhna Ain Sokhna, Egypt

88 2011 Porto Tartous Tartous, Syria

115 2009 Cancun(1) Ain Sokhna, Egypt

35 Q1 2015 Porto Sokhna El Gabal Ain Sokhna, Egypt

154 Q1 2015 Porto Sharm El Sheikh Sharm El Sheikh, Egypt

91 2012 Porto Matrouh Marsa Matrouh, Egypt

Amer Group Overview Restaurants Portfolio – Overview

Restaurant Portfolio Summary

Name Launch Number of

Outlets

Number of

Seats

Av. Spent /

Person (EGP)

Revenues

1H14

Brand Description Ownership

1994 20 4,229 95 53,097,068 Casual dining Tex-

Mex restaurants Franchise agreement

1996 10 1,573 135 26,435,499 Film-themed

Mediterranean grill

100% owned, Amer

Group brand

2006 6 1,184 139 9,088,140

Mediterranean-style

as well as some

Asian dishes.

100% owned, Amer

Group brand

2001 3 478 183 6,380,637 Seafood restaurant 100% owned, Amer

Group brand

2001 7 1,437 128 8,741,389 Traditional Italian

grill Franchise agreement

2002 5 340 64 1,115,276 French café and

patisserie Franchise agreement

2012 9 N/A N/A 1,552,089 Ice-pops Franchise agreement

HUM HUM 2014 1 0 0 76,209

Fast food chain

serving sandwiches

and desserts

100% owned, Amer

Group brand

Total 61 9,241 114

*As of 1H14

Amer Group Sales and Collection Process II.

Amer Group Sales and Collection Process Acquisition of Clients

17

Amer Sales Channels

≡ The Group has provided its

credit team with training by

banking specialists, to be able

to run a comprehensive in-

house credit assessment on

potential clients, a critical stage

that assesses the client’s ability

to meet their financial obligation

towards the Group

≡ Discounts on cash purchases

are available, with a rate that

never exceeds 10% to 15% of

the total unit price

Client Filtering Process

≡ Amer Group has one of the

largest sales teams in Egypt

≡ It reaches out to clients

through the following

methods:

Sales Offices

Network

1

Sales Offices

Abroad – Gulf

Region

2

Outdoor Sales

Team

3

Real Estate Brokers

4

Does the client have

previous delayed

installments?

Application

Down Payment

(10% of unit price)

Sign Authorization

for I-score Check

I-score Credit

Check

Deputy Chairman

and Budgeting &

Planning Manager

If applicant has a

negative score, usually

rejected but each case

is judged separately

Does the client have

any legal action?

Positive Score

No

Yes

Rejected

Yes

No Contracting

Department

Sign

Contract

Amer Group Sales and Collection Process Collection & Cancellation

18

Group Collection Reporting Structure

≡ Each one of the subsidiaries

has its own collection team,

which reports directly to the

Group’s CEO about the

collection rate and performance

≡ The team also reports to the

holding Group’s head of

collection department, who

oversees the collection

procedures for the entire group

CEO

Head of Collection

Tropi (2) for Tourism

Development

CEO

Delmar for Real Estate

Development

CEO

Delmar for Tourism

Development

CEO

Head of Collection Head of Collection Head of Collection

≡ The collection department is divided into two sections, collections and contract cancellation, each of which has a different role and objective

Collection Department Process Highlights

Collection Section

≡ The collection section follows up

on and collects installments from

clients:

= Banks provide each company

with daily collection reports

= Clients with delayed

installments are granted an

extension period to pay their

dues, after being approved by

the company’s CEO

= If the client fails to pay in a

one-month period, the case is

automatically forwarded to the

contract cancellation section,

which also reports to the

company’s CEO

Head of

Collections

Bounced

Checks

Manager

7-Member

Team

Contract

Cancellation

Manager

8-Member

Team

(external)

6 Member

Team

(internal)

Transfer cases

after a 1-month

extension period

Cancellation Section

≡ The contract cancellation section’s

main purpose is to recover the

units back from clients

≡ The recovery process starts by the

team contacting clients to inform

them about the intention to start

taking legal action against them

= First step of the process is to issue

an official court warning

= Clients are then banned to enter

any of Amer’s projects until the

dispute is settled

= During the same time, electricity

and water are cut off from clients’

units to pressure clients to pay,

especially since Amer is the main

utilities distributor in all of its

projects

Amer Group Sales and Collection Process Collection & Cancellation Cont’d

19

Contract Cancellation Timeline

≡ Amer Group has not had to

take legal action except in a few

extraordinary cases; when legal

action has become necessary,

the time frame for completing

the case is very hard to

estimate

5 Days 47 Days 54 Days 90 Days

≡ Banks send daily client

payment report to Amer

including completed

payments and bounced

checks

≡ Bounced checks take five

working days to be

reported to Amer

Banks Collection Team Contract Cancellation Legal Action

≡ The collection team starts

following up with clients

with bounced checks

≡ The team follows up with

clients for two weeks

≡ Delay exceptions require

an approval from the

Group's CEO

≡ The Group grants a one-

month period to settle

payments

≡ Delayed cases are

automatically forwarded to

the cancellation

department after the one-

month extension period

≡ Once the cases are

received clients are

banned from entering any

of the projects

≡ The recovery process

starts by the team notifying

the client with impending

court warnings (4-7 days)

≡ Cases are usually settled

before this stage as

clients understandably

prefer to keep their units

and are reluctant to

forfeit amounts already

paid

≡ Legal action has become

necessary with only

approximately 1% of the

Group's current portfolio

Originator’s Securitized Projects in Detail III.

Originator’s Securitized Projects in Detail Porto Marina

21

Masterplan

Project Factsheet

Built Up Area by Segment Built Up Area by End Use

65% 10%

16%

10%

Residential Commercial

Hotel Public Utilities

% of Project Included in the Portfolio

Total BuA (Sq M): 179,779

Launch Date 2005

Start of Operations Date 2007

Total Development Cost (EGP mn) 470

Land Area (Sq M) 68,000

Project Timeframe 2005-2007

% Complete 100%

Total Sales (EGP mn) 1,231

87%

13%

Sold Leased

A contemporary modern real estate development, featuring residential units, a

hotel, a mall, restaurants with a wide variety of amenities including: water

activities, cinemas, kids activities, spa complex, a private beach and a yacht club

Weight of Project in Portfolio:

39%

% of Project in Securitized Portfolio

9.7%

Originator’s Securitized Projects in Detail Porto Marina Cont’d

22

Average Unit Price (EGP/Sq M) Project Revenue Recognition (EGP mn)

Units Roll–out Schedule Units Sold

450

32 41 57

100 128

Before 2009

2009 2010 2011 2012 2013

142

192

94

47 40

86

56

2007 2008 2009 2010 2011 2012 2013

11,081

13,362

15,843

13,839

16,184 15,071 14,873

Before 2009

2009 2010 2011 2012 2013 H1 2014

622

6 3

79

164

103 95

Before 2009

2009 2010 2011 2012 2013 H1 2014

Originator’s Securitized Projects in Detail Golf Porto Marina

23

Masterplan

Project Factsheet

Built Up Area by Segment Built Up Area by End Use

97%

1% 2% 1%

Residential Commercial

Rental Public Utilities

Total BuA (Sq M): 1,441,300

A residential, shopping and golfing development set on a 1.8 mn sqm plot of land

that includes the following: an 18 hole golf course, 25 swimming pools, more than

180 retail stores, Aqua Porto, water sports, restaurants, hotel serviced

apartments, as well as various other activities and entertainments

Launch Date 2006

Start of Operations Date 2008

Total Development Cost (EGP mn) 1,411

Land Area (Sq M) 1,820,609

Project Timeframe 2006-2008

% Complete 100%

Total Sales (EGP mn) 2,175

99%

1%

Sold Leased

% of Project Included in the Portfolio

Weight of Project in Portfolio:

26%

4.1%

% of Project in Securitized Portfolio

Originator’s Securitized Projects in Detail Golf Porto Marina Cont’d

24

Average Unit Price (EGP/Sq M) Project Revenue Recognition (EGP mn)

Units Roll–out Schedule Units Sold

2,632

261 329 380 357 300

Before 2009

2009 2010 2011 2012 2013

129

1,129

756 738

431

332

2008 2009 2010 2011 2012 2013

4,095

5,596 5,720 5,423

6,789 6,553 6,295

Before 2009

2009 2010 2011 2012 2013 H1 2014

109

470 475

274 250

53

113

Before 2009

2009 2010 2011 2012 2013 H1 2014

Originator’s Securitized Projects in Detail Porto Sokhna & Golf Porto Sokhna

25

Masterplan

Project Factsheet

Built Up Area by Segment Built Up Area by End Use

Total BuA (Sq M): 1,010,679

Egypt’s first-ever mountain-top resort and golf course featuring residential units

and retail outlets with a number of facilities including : swimming pools, private

beach, 3 malls, water sports, as well as a variety of activities

Launch Date 2006

Start of Operations Date 2009

Total Development Cost (EGP mn) 2,489

Land Area (Sq M) 2,326,213

Project Timeframe 2006-2009

% Complete 100%

Total Sales (EGP mn) 3,462

96%

4%

Sold Leased

81%

4%

3% 12%

Residential Commercial

Others Public Utilities

% of Project Included in the Portfolio

2.6%

% of Project in Securitized Portfolio

Weight of Project in Portfolio:

24%

Originator’s Securitized Projects in Detail Porto Sokhna & Golf Porto Sokhna Cont’d

26

Average Unit Price (EGP/Sq M) Project Revenue Recognition (EGP mn)

Units Roll–out Schedule Units Sold

2,626

105 279

529 323 321

Before 2009

2009 2010 2011 2012 2013

3

749

316

899

674

299

2008 2009 2010 2011 2012 2013

5,276 5,893 6,133

6,830 7,404

5,824

8,478

Before 2009

2009 2010 2011 2012 2013 H1 2014

302

779 708

347 309

153 125

Before 2009

2009 2010 2011 2012 2013 H1 2014

Originator’s Securitized Projects in Detail Porto Cairo Mall

27

Masterplan

Project Factsheet

Built Up Area by Segment Built Up Area by End Use

Total BuA (Sq M): 72,719

58% 25%

17%

Residential Commercial

Parking Public Utilities

Located in New Cairo, next to the JW Marriot Hotel, Porto Cairo Mall is a full service

mall with a built-up area of 72,719 m2 and a parking capacity of up to1,000 car

slots. The mall will feature retail shops, a hyper market, restaurants, cafes, a theme

park, showrooms, kids playing area and a cinema

Launch Date 2010

Start of Operations Date 2013

Total Development Cost (EGP mn) 464

Land Area (Sq M) 38,277

Project Timeframe 20010-2014

% Complete 85%

Total Sales (EGP mn) 760

100% 100%

Sold Leased

% of Project Included in the Portfolio

% of Project in Securitized Portfolio

Weight of Project in Portfolio:

11%

4.2%

Originator’s Securitized Projects in Detail Porto Cairo Mall Cont’d

28

Average Unit Price (EGP/Sq M) Project Revenue Recognition (EGP mn)

Units Roll–out Schedule Units Sold

83

384

131

40

2010 2011 2012 2013

64

175

2010 2011 2012 2013

22,173

26,027 27,320 26,504

22,072

2010 2011 2012 2013 H1 2014

85

182

45

2010 2011 2012 2013 H1 2014

Servicer’s Financial Highlights IV.

Transaction Portfolio

Structure

Financial Performance

Servicer’s Financial Highlights Group Subsidiaries – Transaction Portfolio Companies’ Financial Performance

30

Revenue (EGP mn)

Porto

Cairo

Mall

Porto

Cairo

Villas

Porto

Cairo

Medical

Center

Transaction / Portfolio Projects

Gross Profit & Margin EBITDA & Margin Net Income & Margin

Tro

pi (2

) fo

r T

ou

rism

Develo

pm

en

t

Delm

ar

for

Real

Esta

te

Develo

pm

en

t

Delm

ar

for

To

uri

sm

Develo

pm

en

t

Net Income

(EGP mn) Margin (%)

Gross Profit

(EGP mn) Margin (%)

EBITDA

(EGP mn) Margin (%)

Net Debt / Equity (x)

86 83

128 131

2010 2011 2012 2013

37 35 51 51

43%

41%

40%

39%

2010 2011 2012 2013

32 17 34 49

37%

20%

27%

37%

2010 2011 2012 2013

26 14 26 36

31%

17%

21%

27%

2010 2011 2012 2013 -1.09

-0.44

-0.78

-0.47

2010 2011 2012 2013

802

735

383 337

269

2009 2010 2011 2012 2013

430 455 151 180 130

54%

62%

39%

53%

48%

2009 2010 2011 2012 2013

377 404 108 123 81

47%

55%

28%

36%

30%

2009 2010 2011 2012 2013

363 375 86 67 43

45%

51%

22% 20%

16%

2009 2010 2011 2012 2013

-0.01

0.20

0.22 0.22

0.12

2009 2010 2011 2012 2013

540 564

429 471

201

2009 2010 2011 2012 2013

204 305 241 314 140

38%

54% 56%

67% 70%

2009 2010 2011 2012 2013

135 225 170 235 65

25%

40% 40%

50%

32%

2009 2010 2011 2012 2013

157 208 168 141 35

29%

37% 39%

30%

17%

2009 2010 2011 2012 2013

0.5

0.4 0.4

0.1

0.0

2009 2010 2011 2012 2013

Securitized Portfolio Analysis V.

Securitized Portfolio Analysis Securitization Process Mechanism

32

Step I: Evaluation

Step III: Post Issuance

Step II: Bond Issuance

≡ The companies are evaluated from a risk point of view to assess their bankruptcy likelihood, especially since the

three companies that own the portfolios will act as the servicers of the securitized portfolio Originating

Companies

≡ Concentration of job sectors, governorates, income range and outstanding loans of the clients

≡ History of collections and delinquency

≡ Historical default rate

≡ Historical recovery rate

Collections

Performance

Po

rtfo

lio

Legal:

≡ All the agreements between the originator, the servicer, the custodian, the backup servicer and the rating agency

are reviewed by the transaction legal advisor to make sure the rights, terms and conditions are well stated and

defined

≡ Contracts between Amer and its clients are referred to the legal advisor to assess them

Operational:

≡ The portfolio is assessed in terms of expected cash inflows and delinquency rates

Process

≡ The bond issuance model is developed by the

transaction financial advisors, who structure the

model according to several factors such as the

portfolio cash flow, the discount rate, the

expected delinquency rate and the

collateralization required

≡ The auditor and the rating agency review the

transaction model and approve it after

discussions with the financial advisors

Servicing:

≡ The three originators act as the servicers of the portfolio

≡ The collection is executed through the custodian, which has all the collection

checks and will send them for collection through its checks collection

department. The custodian notifies the servicer with any bounced checks for

follow-up and collection, with all collections and settlements transferred to the

custodian

≡ All Amer Group collections are executed through checks and there are no

direct debit collections or collections by any other means

Auditing:

≡ The auditor performs its engagement to audit the portfolio on a quarterly basis

Rating:

≡ The rating agency performs a comprehensive assessment of the portfolio and

bond issuance performance on an annual basis. Also, a monthly assessment

will be performed

Customer’s Bank

1- Checks sent for

Collection

Custodian

2- Cash Collected &

Bounced Checks

Customers

Servicer Contact Securitization

Bondholders

5- Coupon Payments

7- Monthly Collection &

Bond Service Reports

7- Monthly Collection Reports

6- Collection of

Bounced Checks

4- Reimbursement of

Bounced Checks

3- Bounced Checks

Amer Securitization Process

33

Securitization Schematics

≡ The originating companies will

transfer their receivables by means

of true sale to a bankruptcy-remote

special purpose entity, the Issuer

≡ Transferring the receivables to the

Issuer ensures that the underlying

asset pool is held separate from

the other assets of the originator

≡ The Issuer issues notes (the

“Bond”) to interested investors (the

“Bond Holders”) and receives the

Bond proceeds

≡ The Custodian holds the

receivables (checks) for the benefit

of the Bondholders

≡ The custodian will be responsible

for the check collections on its due

date and the servicer will only be

involved in case of a bounced

check

≡ The Issuer pays the Bond Holders

their interest & principal based on

the Bond terms

≡ The proposed scenario to be

adopted for the collection of Amer’s

portfolio after securitization is such

that the three originators (i) Delmar

Tourism Development, (ii) Delmar

Real Estate; and (iii) Tropi 2, will

act as the servicers of the portfolio

Originators

Sarwa Securitization Co.

(Issuer)

Bondholders

1- Asset Pool (Accounts Receivables)

2- Bond Issuance

4- Cash Proceeds

3- Cash Proceeds 7- Bond Servicing

6- Collection

Proceeds

Tropi 2 Delmar

Tourism

Delmar

Real

Estate

Securitized Portfolio Analysis

Clients

5-Collection Proceeds

Servicers

(Delmar RE, Delmar TD, Tropi 2)

Custodian

CIB

Default recovery mechanism

≡ A parallel multilateral default recovery mechanism activated concurrently. The two layers of default recovery are activating credit insurance and trying to

sell the reposed property in parallel.

≡ The servicer will be paid a collection fee of 150,000 calculated and paid monthly from the outstanding portfolio accounts receivable balance

≡ Reserves are built up from the proceeds of the portfolio installments of the first three months, adjusted afterwards to equal 5% of the monthly outstanding

bond balance

Securitized Portfolio and Bond Overview

Securitized Portfolio Overview

34

Securitized Portfolio

Bond Structure

Project Porto Marina & Golf

Porto Marina Proto Cairo Mall

Porto Sokhna & Golf Porto

Sokhna Total

Originator Delmar for Tourism Delmar for Real Estate Tropi 2

Securitized Portfolio (EGP mn) 172.5 30.3 55.8 258.7

Weight 67% 12% 22% 100%

***Expected Coupon rate of the two tranche is subject to change according to prevalent market conditions

Tranche A Tranche B

Expected Size (EGP mn) 121 101

Expected Coupon*** 0.75% over 1 year T-Bills (net of tax) 2.3% over 1 year T-Bills (net of tax)

Tranche Weight 55% 45%

Tenor (months) 13 Up to 54

Frequency of Principal Payment Quarterly Monthly

Frequency of Interest Payment Quarterly Monthly

Bond Structure Pre-determined amortization Pass-through

Target Rating(1) AA A

Liquidity Reserve 5% 5%

Servicer Collection Fee 150K Monthly 150K Monthly

Securitized Portfolio Analysis

Note (1): The rating process is still being finalized; however, this is the bond’s target rating

The beginning of the transaction’s cash flow is September 2014. The originators are obliged to transfer any installments collected after September 2014 to the custodian,

after the financial closure of the transaction.

Securitized Portfolio Analysis Portfolio Analysis

≡ Amer’s portfolio consists of four

portfolios that represent the

receivables of four real estate

projects: Golf Marina, Porto

Cairo Mall, Porto Marina and

Porto Sokhna, with a total value

of EGP258.7mn:

= Average loan amount:

EGP 433,533

= Average tenor: 31

months

Breakdown by Expiry Date of Loan (EGP mn)

Breakdown of Portfolio Age Range

Breakdown of Outstanding Loan Amount

Breakdown by Governorates

35

53.8%

18.2%

13.6%

2.1% 1.9% 1.7% 1.4% 1.3% 0.8% 0.8% 0.6% 0.3% 0.3% 0.2% 2.8%

Cairo

Giz

a

Ale

x

Suez

Dakahliy

a

Port

Said

Ism

aili

a

Shark

eya

Dam

ietta

Monofe

ya

Gharb

eya

Kaly

oubia

Red S

ea

Fayy

oum

Oth

ers

4.5%

8.9%

6.1%

13.2%

33.0%

13.2%

5.8%

11.5%

0.8% 3.0%

< 1

00k

100-2

00K

200-3

00K

300-4

00K

400-6

00K

600-8

00K

800-1

000K

1000-1

500K

1500-2

000K

>2000K

1 11

51

8 3 1 9

77

22 3 8

46

6

3

8 19

5

1

2

2014 2015 2016 2017 2018

Golf Marina Porto Marina Porto Sokhna Porto Cairo Mall

15-25 26-35 36-45 46-55 56-65 66-75 75+

Golf Marina Porto Marina Porto Cairo Mall Porto Sokhna

Collection Process Overview

36

Collection Process

90 Working Days

Description

≡ The collateral checks will be transferred from Amer to the custodian

before the financial closure of the securitization transaction

≡ The custodian will send the checks for collection

≡ The custodian will notify the servicer through regular daily reports

showing the bounced checks, after sending returned checks for

collection a second time

≡ After receiving notification from the custodian about delinquent

customers, the servicer (Amer subsidiaries – the originators) will

start a follow-up with delinquent customers

≡ After receiving an official request from Amer to withdraw bounced

checks for the purpose of proceeding with legal actions, the

custodian will deliver the bounced checks to the servicer

≡ Amer shall send the custodian a copy of the court documents

≡ The servicer will activate credit insurance, and Deals will try to sell

the unit. Whichever pays the delinquent amount first, this ensures a

more reliable cash flow.

1

2

3

4

5

6

7

T+2

T+5

T+7

T+21

T

21 Working Days

30 Working Days

+2

1

+9

+

15

Checks sent out for collection

Servicer will take all legal actions to cancel the

contract legally

Notification of

insurance

Timeline and Key Milestones

Multiple Targeting

≡ After 30 days from delinquency, the servicer will both notify the insurance company and try to sell the unit. This offers multiple layers of

protection.

≡ If Deals fails in selling the disputed unit in 30 working days:

An independent real estate broker will be hired to sell the unit

Securitized Portfolio Analysis

Custodian will notify the Servicer with uncollected

installments

Bounced Checks sent out for collection a second time

Servicer will attempt to collect due checks

Servicer is notified about the collection process

Deals will try to sell

the unit

Payment by Insurance

Hire and independent

real estate broker

Multiple

Targeting

45 Working Days

+2

1

66 Working Days

60 Working Days

Securitized Portfolio Analysis Default Risk Mitigation

Default Risk Mitigation Process

37

≡ In case the client defaulted in one monthly installment or one quarterly installment or one semi-annual or annual installment,

the servicer will activate the Credit insurance mechanism Trigger for Credit

Insurance

1

≡ After fulfilling the documents required by Misr Insurance, the insurance company will pay Amer 90% of any due installments

within 21 days, after the submission of the required documentation

≡ A legal case will have to filed against the unit’s buyer in order for the credit insurance company to pay the installments

Documentation

2

≡ Credit insurance will be paid by the insurance company after executing the procedures listed in the credit insurance Terms

and Conditions Post Contract

Cancelation

3

≡ In this transaction we assume that after credit insurance is activated, the recoverable amount will not be received in full and

not received instantly, for conservatism. The full amount will be recovered after 1 year of activating the credit insurance Recovery of Due

Installments

4

Other Risks

Land Installments, Property Insurance and Credit Insurance

≡ Amer has the option to cover all future land installments, property insurance

and credit insurance through:

= Issuing a letter of guarantee equal to a percentage of the total bond size,

the LG amount will be determined by the rating agency; or

= Opening an escrow account

Liquidity Risk Mitigation

≡ The custodian is obliged to open an account to act as a liquidity reserve

≡ The balance of the reserve account will be held at a level of 5% of the

outstanding portfolio, to cover 6 months of interest and senior bond

expenses

Current Portfolio Loan to Value (LTV) Ratio

LTV No. of Units Asset Value

(EGP mn)

Portfolio

(EGP mn)

50% 348 372.91 72.54

50%-60% 35 39.55 21.31

60%-70% 122 117.20 77.22

70%-80% 70 92.77 71.33

80%-93% 15 18.82 16.33

≡ All the risk embedded in the transaction has been taken into consideration, and various risk mitigation techniques are included in the transaction structure and

financial model; this will mitigate the inherent risk in the transaction that might be recurring in the future

≡ All risk mitigation mechanisms have been deemed sufficient by the rating agency

Real Estate Market VI.

82

33 33 28

25

8 4 3 2

2% 1% 1%

2%

3%

5%

3%

2%

6%

Population (mn) Growth (%)

2% 6%

17%

25%

50%

High Higher Middle

Lower Mid Upper Low

Lower Low

Real Estate Market Demographics and Sector Fundamentals

Source: Central Bank of Egypt, IMF, World Bank

Note (1): 2012 Figures

Note (2): High Income level group: Monthly Salary > 20,000 EGP, Higher Middle: Monthly Salary 8,000 – 20,000, Lower Middle: Monthly Salary 3,000 – 8,000, Upper Low:: 1,400 – 3,000, Lower Low: Monthly Salary < 1,400

≡ Egypt’s demographics remain

intact helping fuel future growth

despite inflationary pressures

≡ Upside in the real estate industry

is further amplified by the

increasing annual marriages and

the prevailing under-penetration

of consumer credit in Egypt

≡ Its large and young population is

expected to continue contributing

to the long term health of Egypt’s

economy

≡ Moreover, the country’s evolving

rural/urban dynamics and

changing social trends are

constantly creating new market

opportunities for real estate

developers

Coupled With Supportive Demographics

68%

65%

62%

59%

58%

57%

56%

56%

57%

57%

57%

57%

57%

56%

32%

35%

38%

41%

42%

43%

44%

44%

43%

43%

43%

43%

43%

44%

19

50

19

55

19

60

19

65

19

70

19

75

19

80

19

85

19

90

19

95

20

00

20

05

20

10

20

15

% of Rural Population % of Urban Population

Attractive Industry Dynamics with Room For Further Growth

Annual Marriages (‘000) Mortgage Penetration Rate Retail Loans Penetration

1

1

590

450 500

570 580 560 555

630 670

780 850

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

8% 9% 11% 16% 18% 20% 20% 22%

58%

78%

2% 2%

5% 6% 6%

8%

15%

17%

≡ With annual marriages reaching 850k in 2010,

demand on real estate, with strong emphasis

on the urban residential units, is expected to

amplify going forward

≡ The current low mortgage and retail loan penetration rates reflect further growth prospects in the real estate

market going forward; increased availability of liquidity through further mortgage penetration will enable the

pent-up demand to materialize

39

21%

22%

20%

13%

11%

7%

4%

21%

23%

19%

13%

11%

7%

4%

25% 5% 15%

<10

10-20

20-30

30-40

40-50

50-60

60-70

>70

Female Male

Population(1) Population Age Brackets Urbanization Income Level(2)

≡ Egypt’s current young yet growing population of 80mn is coupled with an urban population of 43%; this demand for urban real estate is bound to increase significantly

≡ Population segmentation illustrates unmatched growth opportunities in the middle to low segments of the real estate market

World Average: 1.2%

2% 2%

Real Estate Market An Underserved Market with Significant Growth Potential

Source: Central Bank of Egypt, EFG-Hermes Research, Brokers’ Reports, JLLS, EFSA, Brokers’ Reports

≡ The country’s robust real estate

demand drivers, coupled with

its changing social trends, has

created a significant supply

shortage, especially in the

middle income segment of the

market which currently offers an

unmatched growth opportunity

for real estate developers

195 280

331

611

85

Urban Supply

Urban Demand

Rural Demand

Total Annual

Demand

1

1

The urban real estate

market is currently

faced with a supply

shortage of c. 85k units

p.a

≡ Increased demand with respect to urban

residential units will further aggravate the current

shortage, inducing real estate industry players to

boost up new project developments

265

272

280

289 293

2009 2010 2011 2012 2013

Urban Residential Housing Demand With Urban Demand Outstripping Supply

40

≡ Real estate investments’ attractive returns and the growth prospects on the

back of strong demographics have helped drive further investments in the

sector, this has been reflected through the historical increased annual

contribution to Egypt’s GDP

≡ Historically, the construction and real estate sectors of the economy have

outperformed the country’s rate of overall economic growth

≡ Such attractive growth rates are expected to continue going forward

Construction & Real Estate Contribution To GDP Construction & Real Estate Growth vs GDP Growth

Continuous Sector Growth

Urban Demand Outstripping Supply (Units ‘000)

8.0% 8.2%

7.2% 7.4%

7.7% 8.0% 8.1%

7.0%

04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12

5% 7% 7% 7%

5% 5%

2% 2%

5%

14% 16% 17%

11% 13%

4% 3%

04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12

GDP Growth Sector Growth

569

1,237

1,261

1,376

1,400

1,867

1,973

4,066

4,383

7,021

10,300

13,862

15,933

19,500

Cairo

Beirut

Amman

Johanesberg

Kuala …

Istanbul

Marrakech

Dubai

Warsaw

Madrid

Beijing

Paris

New York

London

Apartment Prices / Sq M (US$)

Annual Residential Units Supply & Demand

Upscale Middle Low-end

Supply Demand Shortage

5,000 50,000 70,000

Amer’s target market

Competitive Landscape

≡ Amer successfully

positioned itself in a niche

market, targeting middle

to upper classes while

offering a variety of other

complementary services /

products through its Porto

World brand that set it

apart from the other

developers

≡ Amer has no disputed

land plots unlike a number

of its Egyptian peers

Real Estate Market

Market Players

41

High None

Developer Land Bank

(mn sqm)

Land

Concentration

Disputed Land

Plots

Product

Positioning

11-12 Unit

Cancelations

Second Home

Offerings

Leasable

Space

Hospitality

Segment

Low Significant

Note (1): Calculated on YTD basis

Source: Bloomberg, Brokers’ Reports

MCAP (US$

mn)

49 East

Cairo 1,723

8.6 West

Cairo Not Yet 287

41 Sahl

Hasheesh Anchor

Developers N/A 152

9.8 East

Cairo N/A 446

Heliopolis

Housing

40 East

Cairo N/A 388

12.3 NA 282

Restaurant

Segment

23.2 West

Cairo 503

Industry Trends

≡ Post political unrest, real

estate players have

adjusted to the changing

environment shifting their

focus to cater for client

needs and have

undertaken significant

measures to reinstate

healthy operational

progress

≡ The effects are likely to

reap rewards in 2014-15

Real Estate Market

Positive Sector Outlook & Trends

Source: Bloomberg, Central Bank of Egypt, EFG-Hermes Research, Brokers’ Reports

42

Outward Movement Likely to

Continue New Incentive Schemes Strong Construction & Deliveries Shift in Product Offering

≡ Conditions in central Cairo remain

challenging due to intensifying

traffic, lack of parking spaces and

security disruptions

≡ Businesses and individuals will

continue their steady movement to

the outskirts as more high quality

commercial space is being delivered

in Cairo’s satellite cities

≡ During 2013 deliveries of new retail

and entertainment outlets in these

areas facilitated additional demand

and created further incentives for

buyers in these areas

≡ Given minimal changes in 2013 in

local credit conditions and stringent

bank financing requirements, real

estate companies are poised to

stretched payment terms

≡ Local developers are expected to

continue to play on the affordability

of their products, extending

payments beyond delivery dates,

lowering the size of down payments

and relaxing cancellation policies

≡ Marketing efforts are expected to

stress on track record, with a shift in

payment policies geared towards

delivery dates

≡ Strong deliveries are expected in

2014 as most real estate players

make up for the delay in deliveries

during post 2011

≡ Deliveries will impact the

companies’ 2014 financial

statements and cash generating

abilities allowing for a continued

enhanced construction pace

≡ This should reflect positively

enhancing customer confidence in

the sector

≡ Given numerous project launches

prior to 2011 that were geared

towards the upper income bracket,

supply / demand prospects have

become unfavorable in this

segment

≡ Real estate players have adapted

by shifting the unit offerings to cater

to the under-supplied middle /

lower-middle segments by offering

smaller units of the same quality

Current Previous

Built Up Area

Land Area

Price per Sqm

Recent Outskirt Facilities

International Schools

Global Banks

Commercial / Retail

Low/Smaller High/Larger

Real Estate Becoming a More Attractive Investment Class

Lack of High Return Investments…

Decline in Stock Market Attractiveness 1

Restrictions on Money Markets Funds 2

Foreign Currency Restrictions 3

…Leading to Renewed Interest in Real Estate Investments

7,125 11,373

6,227 6,884 8,260 13,818

7,497 8,211

New Cairo - Apartment

New Cairo - Villa 6th of October - Apartment

6th of October - Villa

Q42012 Q12013

≡ The increase in net sales levels for real

estate developers showcases the

investors shift to real estate as a

significant investment class in anticipation

of the foreseen currency depreciation and

increased inflation, given real estate’s

nature as a hedge against currency

depreciation and domestic inflation

Challenges and Potential Risks

Real Estate Market

Sector Risks

43

Impact of Political

Situation

≡ Post the revolution, many real estate developers suffered from 2 main issues:

= Increased cancellations or delinquencies, due to decreased wealth, low investment appetite in times of socio-economic

uncertainty and more tightened spending in fear of a deteriorating economy

= Execution risk, due to frequent worker strikes and restrictive curfews

≡ Although the political situation has improved recently, any unexpected political event could possibly have negative

implications on the sector’s performance

Cancelations (EGP mn)

Implementation of

New Real Estate

Tax Law

≡ The new real estate tax has been heavily criticized and several previous governments were unable to implement it in fear of

public discontent

≡ There have been rumors that the new law however will be ratified by the new parliament and hence may be implemented

soon

≡ The new law obligates new homeowners to pay a 10% tax on 70% of the total value of any property, with the exception of

units worth less than EGP2mn

≡ Commercial and retail properties will also be included in the new real estate tax law

0%

10%

Old Law New Law

Real Estate Tax Rate

Limited

Availability of

Financing

≡ The mortgage market is still immature, with Egypt having the lowest mortgage penetration rate among most Arab countries

≡ If the mortgage market does not pick up during the coming few years as planned by the government, growth in demand for

new housing will be constrained due to the limited availability of financing

≡ Continuous inflationary pressure is also going to impact the growth of the mortgage market negatively, as a result of

increasing interest rates

2% 2% 5% 6% 6% 8%

15% 17%

Mortgage Penetration

Regulatory Risks

on Land

Agreements

≡ Many real estate developers have faced lawsuits related to their acquisition of land; Amer however, did not face any notable

legal disputes regarding their projects’ land plots

≡ Some of these lawsuits were settled by fining the developer while others were forced to return the plots of lands under

dispute

≡ Further legal disputes and risks of changes in regulations, especially with the election of a new president and appointment of

a new government, may result in the annulment of other land agreements

No disputes Has disputes

Increasing

Construction

Costs

≡ The real estate sector is directly affected by inflation, since commodity prices, such as steel and cement, affect real estate

developer costs

≡ These hikes in costs are either passed on to the consumers, making properties less affordable (especially since the supply

shortage mainly stems from demand from middle to upper middle income groups), or are absorbed by the real estate

developers, decreasing their margins 3,189 3,756 4,738 4,535 5,107

2009 2010 2011 2012 2013

Steel Average Price (EGP/ton)

300

500

700

Jan-10 Jan-11 Jan-12 Jan-13

Cement Price (EGP/ton)

Amer TMG SODIC

2010 2011 2012 2013

Appendix

Hospitality Sector Brief

≡ Following the revolution, Egypt’s

hospitality sector was severely

affected due to political instability

and security concerns

≡ As the political scene stabilizes,

the number of tourists coming to

Egypt are expected to increase

and the sector’s performance is

projected to improve, as is evident

from the increasing hotel

occupancy rates during the first

half of 2013 in Cairo and other

major touristic cities such as

Hurghada and Sharm El Sheikh

Source: BMI, Ministry of Tourism

Appendix

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jun

-12

Jul-

12

Au

g-12

Sep

-12

Oct

-12

No

v-12

Dec

-12

Jan

-13

Feb

-13

Mar

-13

Ap

r-13

May

-13

Jun

-13

Cairo Hurghada Sharm El Shaikh

Total Number of Tourists (‘000s) Hotel Occupancy Rate

12,293

13,758

11,931

10,953

2008/2009 2009/2010 2010/2011 2011/2012

123

136

125

132 10.0 9.9

10.4 12.0

2008/2009 2009/2010 2010/2011 2011/2012

Total Number of Nights (Millions)

Average Stay (Nights)

74.0%

15.9%

4.0%

2.6%

3.4%

0.2%

European Countries Middle Eastern Countries

African Countries Americas

Asia and the Pacific Other Countries

45

Tourist Length of Stay

Tourist Arrivals by Region (2011/2012)

31

34

38 35

38 40

42

46

50

2008 2009 2010 2011 2012 2013 2014f 2015f 2016f

8

10

11 12

13 13

14

15

16

2008 2009 2010 2011 2012 2013 2014f 2015f 2016f

Domestic Travel & Tourism Spending

(USD bn)

Travel & Tourism Total Contribution to

GDP (USD bn)

Appendix Consumer Food Service Sector Brief

Breakdown of Consumer Foodservices (Number of Outlets) 2011

Leading Chained Consumer Food Service Companies

Breakdown of Foodservices Outlets 2011

≡ The consumer foodservice market

includes all food sales services such

as: restaurants, cafés, fast food

chains, etc…

≡ In the late 1980s, the concept of

western chained fast food outlets was

introduced in Egypt as a result of

liberalization; KFC and Pizza Hut

franchised via Americana group, were

amongst the first brands to be

introduced to the Egyptian market

≡ Since then, franchising in the

consumer foodservice industry has

been driving the growth of the total

market size

≡ Amer introduced homegrown

concepts, in addition to the franchises

it operates

≡ The consumer foodservice sector remains underpenetrated with branded chains comprising 3% of the total market size

≡ The society’s continued exposure to the western habits and the profound demand for premium and value added services will

act as key catalysts for the growth in the number of organized/branded foodservices outlets in the medium term

Source: Euromonitor Foodservice Egypt

15%

42% 3%

36%

0 5%

Home Delivery Cafes Restaurants Fast Food Street Stalls

97%

3% Independent Chained

Company Brands Number of Outlets Market Share (2012)

Mo’men Group

230 17.0%

63

86

71 3.6%

4.2%

4.8%

35 3.3%

Food Consumption per Capita

(USD)

490 521 566 590

719

2010 2011 2012 2013f 2014f

46

2,797 3,062

3,470

3,939

4,464

5,029

5,560

2011 2012 2013f 2014f 2015f 2016f 2017f

174

202 219

265

309

358

406

2011 2012 2013f 2014f 2015f 2016f 2017f

43 49 55 60 66

78 92

107 121

138

2012 2013 2014 2015 2016

Non-food Retail Food Retail

37 41

53 60

78 85

93 99

112 116

2003/2

004

2004/2

005

2005/2

006

2006/2

007

2007/2

008

2008/2

009

2009/2

010

2010/2

011

2011/2

012

Q3 2

012

≡ The retail market has proven its

resilience throughout the recent

political and economic turmoil in

Egypt during the past 3 years

≡ Private consumption has grown

by a 2011-2013 CAGR of 12%

but is expected to recover to its

high growth levels to record a

CAGR of 17% between 2013 and

2017

Appendix Retail Sector Brief

Source: IMF, CBE, Jones Lang LaSalle

Egypt Retail Loans (EGP bn) Retail GLA / Capita

Retail Sales (USD bn) GDP Per Capita USD Private consumption (USD bn)

CAGR 12.5% CAGR 16.7%

CAGR 13.1%

CAGR 15.0%

47

Retail Space (GLA in ‘000sqm)

578

761 773 773

1,044

271

291

2010 2011 2012 2013F 2014F

Completed Stock Future Supply 1.1

0.6 0.6

0.4 0.4

0.2

0.1 0.1

Dubai

Bahra

in

Qata

r

Om

an

Abu D

habi

Kuw

ait

KS

A

Cairo

Disclaimer

The information contained in this document is proprietary and confidential to Amer Group S.A.E, EFG Hermes Promoting and Underwriting and/or its affiliates

(together and separately, "EFG Hermes") and Sarwa Capital (“Sarwa”) (together the “Financial Advisor”). You must only use such information for the purposes of

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supply of this document does not imply that the information within it is correct at any time subsequent to the date of this document.

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results or events to differ materially from those expressed or implied by these statements. These risks, uncertainties and assumptions could adversely affect the

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developments affecting inflation, interest rates, taxation, social instability or other economic, political or diplomatic or other matters. Forward-looking statements

contained in this document that reference past trends or activities should not be taken as a representation that such trends or activities will continue. Neither the

Financial Advisor nor the issuer of the relevant Investments undertakes any obligation to update or revise any forward-looking statements.

The distribution of this document and the offer of Investments may be restricted in certain jurisdictions. Accordingly, recipients of this document are required to

inform themselves about and observe any such restrictions.

EFG Hermes Holding SAE has its address at Building No. B129, Phase 3, Smart Village – KM 28 Cairo Alexandria desert road and has an issued capital of EGP

2,391,473,750.

EFG Hermes KSA (Closed Joint Stock Company) is commercially registered in Riyadh and its Commercial Registration number is 1010226534.

EFG Hermes Qatar LLC (00069) is authorised by the QFC Regulatory Authority and has its address at Office 1103/11th Floor, MEC Building, Doha, Qatar. The

information in this presentation is directed solely at person who are not retail customers. No service or product mentioned will be made available to any person

who does not satisfy the requirements of the law regarding who may be a client of EFG Hermes Qatar LLC.

EFG Hermes UAE Limited is regulated by the DFSA and has its address at Level 6, The Gate, DIFC, Dubai, UAE .The information in this presentation is directed

only at wholesale and not retail customers. No service or product mentioned will be made available to any person who does not satisfy the requirements of the

law regarding who may be a client of EFG Hermes UAE Limited.

SARWA Capital, a company incorporated under the laws of Egypt law #159 for 1981, commercial register # 37933, has its address at Km.28 Cairo-Alexandria

Desert Road 6th October, Egypt

48