Amer Group Holding (EGX: AMER.CA - Bloomberg: AMER:EY)

[Pages:6]Amer Group Holding (EGX: AMER.CA - Bloomberg: AMER:EY)

2010 Full Year Earnings Release

Amer Group is a leading developer of mixed-use, family oriented destinations branded Porto. Each Porto development offers a complete package of residential units, retail shops, hotels, restaurants and other entertainment activities in a single location. Operational, under construction and under design portfolio includes 11 Porto Developments, 46 Restaurants and 14 Meeting Point Malls.

Highlights of FY2010 earnings release: Consolidated net profit reached EGP 557 million in FY-10; representing a solid increase of

approximately 11% over FY-09. Gross Profit grew at an impressive rate of 23% YoY to reach EGP 801 million in FY-10 Operating Profit reached EGP 579 million in FY-10, representing an increase of 11% over FY-09. Total assets reached EGP 4,564 million, total equity EGP 1,929 million, cash and cash equivalents

amounted to EGP 862 million and total debt amounted to EGP 338 million. Consolidated revenues reached EGP 1,548 million in FY -10, representing a 4% increase over the

same period of last year.

LATEST CORPORATE DEVELOPMENTS

In May 2010, the Group launched sales in Porto South Beach. Approximately 93% of the residential units available in the development were sold in less than 5 months, demonstrating the success of the Porto Brand in Egypt and strong market appetite for new Porto developments.

In November 2010, the Group established a joint venture construction company with Arabtec Construction LLC, one of the leading construction companies in the United Arab Emirates. This venture, named Arabtec Egypt, is expected to benefit from the Amer Group's know-how, complemented by the international experience of Arabtec, thus enhancing the Group's construction capabilities. The venture will execute Amer's projects and also target construction projects outside of the Group. It has already secured two projects from Amer Group to construct portions of Proto South Beach and Golf Porto Sokhna. In addition it has signed a contract with Emaar Misr. The three projects combined have a total value of EGP 583 million.

In light of its ongoing expansion strategy to execute the rollout of a number of projects in Egypt and regionally, in December 2010 the Group has secured a land plot in Fayoum from Tourism Development Authority spreading over an area of 2.8 million sqm. The land is located in the oasis of Fayoum North of the natural lake of Karoun. This location is about 60km from the Cairo suburb of the 6th of October. The land was secured via an auction following intense competition from a number of real estate developers. The plan is to develop Porto Fayoum into a family oriented second home resort destination complemented by the Porto Brand key components, similar to its existing Porto Developments.

In Q4 2010, the Group launched sales of Meeting Point Porto Cairo Piazza which is located in New Cairo, 15 minutes away from Cairo International Airport. A new selling scheme is being implemented. This scheme involves selling retail space to clients (investors), while retaining management control and leasing it on behalf of the clients in return for an agreed upon fee. This mall is expected to accommodate approximately 28,157 square meters of sellable retail space. Until the 17th of March 2011, the Group succeeded in selling around 55% of the available area

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with total sale value of EGP 367 million. the mall is currently under construction and is expected to be ready by Q4 2012, and revenues will be recognized accordingly. On the 25th of January 2011, the Group launched sales in Porto Tartous, its first project outside Egypt. The project consists of more than 3,715 serviced apartments, a shopping mall with more than 25,000 square meter shops, 100,000 square meters office space and more than 35 international restaurant and caf?, and for the first time in Syria the biggest yacht Marina to attract European & Middle Eastern yacht lovers to the Mediterranean Sea ? Tartous. Up until the 15th of March 2011, the Group succeeded in selling 79 units, representing around 73% of the units offered for sale in phase 1 for a total value of approximately USD 21 million. The first phase of Porto Tartous hotel comprising 60 rooms began operations in March 2011 with occupancy rate at approximately 60%. It is planned that the hotel will then include 250 rooms before the end of year. On another note, construction of 70% of the leasable area in Porto Tartous meeting point is complete and available for lease, of which the Group has succeeded in leasing 90%. Additionally and in light of its ongoing plan to expand its restaurants portfolio outside Egypt, the Group opened 2 restaurants, Chili's and Studio Misr, in Porto Tartous Development

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CONSOLIDATED GROUP PERFORMANCE | ALL FIGURES IN EGP MILLION

2,000 1,500 1,000

500 -

800 600 400 200

-

Sales Revenue

1,492

4%

1,548

FY - 09

FY - 10

EBIT

11%

580 523

FY - 09

FY - 10

1,000 750 500 250 -

600 450 300 150

-

Gross Profit

23%

801

654

FY - 09

FY - 10

Net Profit

11%

557

504

FY - 09

FY - 10

The Group's profitability margins showed solid improvements over 2010 as compared to the same period of last year due to the lower constructions costs of delivered units as indicated below:

FY -09 FY- 10

Gross Profit Margin

44%

52%

EBIT Margin

35%

37%

Net Profit margin

34%

36%

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FINANCIAL STATEMENTS BALANCE SHEET

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INCOME STATEMENT

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Investor Relations Contact Information:

Hisham Taha, Chief Financial Officer

Email:

Htaha@amer-

Tel:

+20 (0)2 2417 0463

Address: 11 Cleopatra Street, Heliopolis.

Cairo, Egypt.

Riad Refaat, Investor Relations Director

Email:

riad.refaat@amer-

Tel:

+20 (0)2 2690 7941

Address: 93 El Marghani Street, Misr El Gedida.

Cairo, Egypt.

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