SODIC Announces 2014 Financial Results

Unprecedented Sales, Strong Cash Position, Fully Geared for Growth

Cairo, Egypt, March 5th, 2015, SODIC "Sixth of October Development & Investment Company" released its consolidated financial results for the full year ending 31st of December 2014.

Consolidated Income Statement Figures for the period ending 31-Dec-2014:
• Revenues: EGP 1,366 million
• Gross Profit Margin: 35%
• Net Profit: EGP 154 million

Consolidated Balance Sheet Figures as at 31-Dec-2014:
• Accounts Receivable: EGP 4.8 billion
• Cash Balance: EGP 2.1 billion

Sound Financial Metrics with Healthy Profitability
SODIC announced revenues of EGP 1,366 million in the 2014 financial year. Deliveries came across 8 different projects and ahead of schedule in Westown Residence's second phase.
Gross profit margin came in at 35% reverting back to the company's long term average of 33-35%. SODIC recorded a net profit margin of 11% representing a net profit of EGP 154 million.

A Highly Liquid Position Geared for Growth
From a cash standpoint, the Company's balance stood at EGP 2.1 billion, more than four fold that of 2013, closing the year with a highly liquid position. This is attributed to an extraordinary strong cash collection cycle in addition to the proceeds from the EGP 1 billion capital increase concluded in October. Net cash collections of EGP 2 billion reflected a 58% increase YoY showing a higher appetite for cash payments by clients and a delinquencies ratio at a record 4%.

Of the EGP 2.2 billion of debt raised during the year SODIC's debt balance stood at EGP 1.1 billion at year end, a 1.9x increment over the previous year. The company's debt to equity ratio stands at 0.38x prudently supporting the growth trajectory. The company closed the year cash positive with a net cash balance of EGP 877 million.
Lastly, receivables increased by 35% to reach EGP 4.8 billion with a delinquency ratio at a record low of 4% vs 9% in 2013.

Unprecedented Sales Performance
SODIC achieved record net contracted sales of EGP 3 billion in 2014, a 24% y-o-y increment, with 1,207 units sold in 2014. Over the course of the year SODIC brought over EGP 2.7 billion worth of new inventory to the market that was 86% sold. Cancellations stood at an all-time low of 5% reflecting the strong demand for the company's projects and general positive consumer sentiment in the market.
The last quarter of the year witnessed the highest quarterly net contracted sales in SODIC's history with EGP 1bn achieved (+ 107% QoQ) on the back of new launches in SODIC West as well as sizable new launches in SODIC East.

Growing Land Bank
SODIC almost doubled the size of its undeveloped land through its acquisition of a 301 acre plot in New Cairo. The 301 acre plot was acquired through a government auction at EGP 1,915/sqm and is the first land of its size to be awarded since 2011. Villette, the project planned for the 301 plot has been master-planned by renowned American master-planner SWA in record time and is bringing stand-alone units back to the market for the first time in three years.

The company's current land bank of 3.5 million square metres of undeveloped land provides the Company with at least five year visibility. Management continues to pursue new land opportunities, looking at different partnership models as well as land acquisitions.

Raising Shareholder Value and Attracting Investors
2014 witnessed Ripplewood Holding acquiring a 9.4% stake in SODIC, sending a strong signal of confidence in the Egyptian real estate market and SODIC's future prospects.
SODIC's EGP 1 billion rights issue in October was successfully 99.3% subscribed from the first round, increasing shareholders equity by 68%.

Growth Planned for 2015
SODIC had recently announced the Company's 2015 sales target of EGP 4 billion in net contracted sales and an EGP 2.3 billion investment in existing projects. Other plans communicated included growing recurring revenue streams through developing commercial and retail projects as well as expanding outside of Cairo's suburbs. 2015 promises to be another exciting year for SODIC as the company expands into new business areas and achieves its announced unprecedented targets.

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