Amer Group Holding Company

[Pages:20]Amer

Amer Group Holding

Amer Group Holding

Company

Initial Public Offering October/November 2010

Sales Presentation

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Amer Group Holding

Transaction Summary

Company

: Amer Group Holding

Company Description :

Amer Group is a leading real estate and hospitality developer in Egypt, specialized in mixed-use, family-oriented resort destinations, shopping malls and restaurants

Offering Size

: US$200 million , divided as follows US$160 million is a capital increase and US$40 million is pure sale from the wakf part.

Type Of Offering

: Primary - Secondary offering

?

80% Private Placement Offering

?

20% Retail Offering

Indicative Price Range :

Offer Price

:

?

LE2.6 ? 3.6 Share Private placement offer price is expected to be within the indicative price range Retail Price expected to be same as the offer price subject to EFSA approval

Prime Capital Role : Co-Lead Manager

Tentative Timeline :

? Investor Education ? Determine Price Range ? Red Herring ? Prospectus ? Subscription period ? Trading

October 18 -29 October 28 October 30 October 30-31 November 7- 21 November 29

Investment Case

Amer Group Holding

? Enjoys a strong brand in a country with a wide population base with favorable age demographics given that around 60% of the population is under the age of 30

? Demand / supply Gap on Real Estate units in Egypt is increasing by around 200k unit / year

? Expanding in Countries with untapped growth such as Syria

? Amer Group is the first developer in Egypt to cater second homes for middle income class segment

? The company's land portfolio is in Prime locations around Egypt's most favorite coastal areas ? The Lifestyle that Amer Group develops eases out cross selling activity among the group

business lines thus enabling Amer to Sell at Premium Prices when compared to its peers ? Recurring revenues from the hospitality business differentiates it from other real estate

companies

? Very aggressive contractor and the fastest, since he is the developer of his projects; which enables him to efficiently control cost and avoid extra outsourcing cost.

? Sharia Islamic compliant Company given that net debt is based solely on Islamic financing.

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Investment Case "Cont'd"

Amer Group Holding

Capitalizing on prospects through ventures

Porto Home: selling appliances, furnishings and home accessories to Porto residence

Porto Hotels: manages all Porto development's hotels

Porto vacation club: providing rentals and time share services in Porto developments

Better deals: a real estate brokerage firm competing in an underserved real estate brokerage market

Amer utilities: selling utilities to Porto residents at benefiting from an agreed upon premium on utilities

Al Alamein for education: establishing an American university with conjecture with California state university

Northridge

Arabtec Egypt: a Joint venture with one of the world's leading construction companies, Arabtec, Amer Group will own

45% of the new company and benefits from construction capabilities of Arabtec as well as the speed of Amer Group's developments

Investment Case "Cont'd"

Proof of the high negotiation and sales team power (Excellent Reputation)

?Off plan sales for Porto Marina commenced in June 2005, sold 69% in only 6 months ?Off plan sales for Golf Marina commenced in August 2006, sold 81% of the project by June 2010 ?Off plan sales for Porto Sokhna commenced in 2007, sold 85% by June 2010

Track Record of Effective Execution

Amer Group Holding

AMER Restaurants

First Chili's restaurant opened in 1994 with 270

seats

Today, the Group has 6 brands, 44 outlets with

7,732 seats

Porto marina

Sales launched in June 2005

First phase was delivered in 2005

69% of total units sold

Porto marina golf

Sales launched in August 2006

Mall and Restaurants were delivered in 2007

81% of constructed units have been sold

Porto sokhna

Sales launched in 2007

Completed in 2009

85% of units sold Hotel, mall and restaurants are operational

Meeting point New Cairo

Started in 2009, delivered in 2010

Net leasable area: 8027 sqm

Number of tenants: 51

Amer Group Holding

Our DCF Provides a discount to NAV of 40-50%

We value Amer Group all lines of business at a value range of LE5.5-7.6 billion which translates to a discount to NAV ranging from 40-50 %

Market Multiples sets Amer Group as a strong opponent, highest ROE, highest ROA, decent discount to NAV, one of the highest GPM

TMG Holding Palm Hills Remco SODIC Amer

Discount to NAV 25.8% 24.3% 69.1% 60.5% 42.00%

ROA 2% 5% 3% 5% 13%

ROE 2% 17% 5% 12% 42%

GPM 67% 59% 45% 45% 51%

Amer Group Holding

Digging into The Company...

? Amer Group operates four lines of business, Real estate development, Hotels, Restaurants, and Mall Rentals

? Initiated operations in 1994 with the Restaurants Line of business via Franchising activity as well as developing own concepts to create 5 brands with 45 outlets that eventually became to be the best dinning spots among the Egyptian community

? Capitalizing on cash flow generated from the food business, Amer Group was able to acquire land plots from the government at prime locations around Egypt's best coastal Areas

? Currently, Amer Group exists as a strong brand, well positioned to create a family oriented life style that provides its clients with Residential Second Homes, Hotels, and a place to dine in.

Revenue Breakdown By Line of Business

Hotel Operations 3.1%

Retail 1.7%

Restaurants 12.6%

others 0.3%

Real Estate 82.3%

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Shareholder Structure

Current Shareholding Company

Amer Group Holding Company S.A.E

Amer Group Holding

SOL Global Holding Ltd.

43.75%

Amer Wakf Ltd **

33.00%

Mansour Amer 14.81%

Mohamed ElAmin Ragab

8.44%

Other Shareholders

0.002%

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