IR PRESENTATION FY2022 UPDATE

TMG Holding S.A.E.

.م.م.ش ةضباقلا ىفطصم تعلط ةعومجم

+20 2 3331 2000

Publicly held since 2007

34/36 Mossadek St., Dokki

يقدلا ،قدصم عراش ٣٤/٣٦

IR@tmg.com.eg

EGX: TMGH.CA / TMGH EY

Giza, Egypt

رصم ،ةزيجلا

www.talaatmoustafa.com

Table of contents

Company Overview

About TMG Holding

03

A renowned and trusted brand

04

TMG at a glance

06

The business model

07

Key financial highlights

08

Key stock information

09

Introduction to the business segments

10

Real estate development

The drivers of demand

12

Unmatched sales performance

13

Continuous value creation

14

Substantial and secure backlog

15

Mitigating unforeseen costs increase

16

Massive residual BuA

17

Largest land footprint in the country

18

Noor, a new integrated community

19

Hospitality segment

TMG's hotels

21

Expanding the hospitality portfolio

22

Financial and operational performance

23

Strong performance confirmed in January

26

Commercial leasing segment

Commercial spaces management

29

Financial and operational performance

30

Future expansions, the Spine

31

Clubs segment

A fast-growing and profitable segment

34

Corporate responsibility and sustainability

Focused on corporate responsibility

36

Investor presentation 2

About TMG Holding

Talaat Moustafa Group Holding (TMG Holding) a leading conglomerate with special emphasis on developing integrated communities, including but not limited to mixed-use real estate and hospitality projects across Egypt's key cities. It has an outstanding track-record in creation of large, vibrant and diverse communities, providing high-quality housing accompanied by superb amenities and embodying the company's unmatched experience in planning, execution, management and maintenance of large-scale developments. Constant execution of the company's bold and ambitious vision has been redefining and reshaping Egypt's property landscape over the past two decades, dictating new trends and higher standards and substantially contributing to sustainable economic growth and improvementin quality of life for local communities.

Market capitalization (as of March 2023)

EGP19.7bn

TMG Holding is the developer of Al Rehab city in New Cairo, Al Rabwa in Sheikh Zayed city, Mayfair in Al Shorouk city and Madinaty, its flagship mega-development occupying a whopping 33.6mn sqm in East Cairo, in addition to Celia its recently launched project in the New Administrative Capital, and a new mega-city Noor located on 21mn sqm in the same vicinity. TMG Holding also owns three luxurious Four Seasons hotels in Sharm El Sheikh, Alexandria, and Cairo, where it also owns the Kempinski Nile Hotel. The company owns 1,041 upscale hotel rooms in total and is currently expanding its portfolio by 940 additional rooms in a new upscale hotel properties under construction in Cairo, Marsa Alam, and Luxor.

TMG Holding has developed c400k sqm of prime commercial BuA in its projects, of which it successfully sold some 113k to institutional investors during 2020-2022. The company now owns over 115k sqm of prime retail space located across its integrated communities and is an emerging dominant player on Cairo's sporting club scene, with two operational integrated sporting clubs accommodating about c0.2 million members and additional three clubs under construction.

The company is publicly held since 2007 and is the largest listed developer by market capitalization. TMG Holding is Shariah-compliant. It has a total land of 74mn sqm, the largest accessed by a listed developer in Egypt. It has the largest backlog among local developers, at EGP77bn, to be fully delivered within the coming five years.

Turnover (FY2022)

EGP19.9bn

Backlog (FY2022)

EGP77bn

Total assets (FY2022)

EGP163bn

Disclaimer

Certain information disclosed in this presentation consists of forward looking statements reflecting the current view of the company with respect to future events, and are subject to certain risks, uncertainties and 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 incorrect, actual results may vary materially from those described in such forward looking statements.

Note: Market capitalization as of March 2023, financial and operational KPIs as of end-FY2022

Investor presentation 3

New unique revenue streams originating from the trust granted to our brand

Recent bulk sales of prime non-residential and residential properties are the most vital testimony of the strength of our brand and TRUST in our management's vision, granted to us by the largest local public and private financial institutions:

  • During 2020-2022, we have secured some EGP28bn worth of sales of residential and non-residential BuA to institutions related to the National Bank of Egypt, Banque Misr, Banque du Caire (the largest public banks in Egypt), as well as Commercial International Bank (the largest private bank in Egypt). These institutions trust TMG's vision, strategy, execution, project quality, delivery timeliness, and, most importantly, its ability to manage these properties efficiently to create value and maximize their return on the purchase.
  • This unique blueprint focusing on strategically important transactions with high-profile partners, produces an acceleration in sales and profit recognition, an uptake of existing unsold inventory and it further de-risks our robust business model. Majority of the cash proceeds from these transactions have already been collected or will be collected in the next two years.
  • This strategy was devised as an unprecedented way to mitigate any cash flow risks arising with the global COVID-19 pandemic in 2020 and the subsequent global macroeconomic shocks seen by 2023. No other real estate company in the Egyptian market was able to replicate this model and attract such a vast institutional demand.
  • The partnerships allow for creation of new, massive revenue streams, representing the revenue generated upon delivery, as well as additional commissions earned on resale of these units.
  • Since 2022, we have proved immensely successful in reselling such products for our clients, creating new revenue streams and confirming the investment appeal of these products.
  • It is a solid testimony of management's ability to swiftly and proactively tap into unconventional and sizable sources of funding to the benefit of the Group and its shareholders while maintaining its very prudent approach to capital structure and the ability of mitigating any unforeseen liquidity risks while maximizing the value of its assets.
  • The company can also access highly structured agreements with the financial institutions on the back of the trust granted to our brand. This possibility allow us to accurately price our products and enable further affordability via the safe extension of the sales plans. These agreements are a testimony of i) our management's ability to address the rapidly changing interest rate environment and ii) the trust of these banks in the solid quality of our clientele and our execution.
  • The decade-long land purchase contracts with the Ministry of Housing, securing favourable terms which are unavailable to our competitors, are also a solid testimony of the trust extended to us by the market and the local authorities.
  • TMG has contributed significantly to the appreciation of prices of state-owned lands and other assets located in the vicinity of its projects, by developing whole integrated cities rather than small projects.

Investor presentation 4

We have full control of the real estate supply in our projects

We provide strategic partners with access to the deep demand for our products through our vast sales network, which opens up an additional source of income for the group, at no costs and no risk.

  • TMG offers its expertise to institutional and governmental partners, by providing support in the sale of the units that were acquired by these parties in the context of bulk deals and in-kind payments.
  • The Company has resold some EGP4bn for its partners during FY2022 bringing the total sales achieved through TMG's sales offices to over EGP37bn, of which cEGP1.6bn related to the in-kind payment apartments, delivered to the Ministry of Housing as part of the land purchase agreements. The deep demand recorded for our product continued in the first months of 2023, with about EGP14bn of total sales achieved so far, of which cEGP5.4bn representing sales for third-parties.
  • TMG pursues these type of agreements in order to maintain control over the supply of residential and non-residential units and pricing in our projects, while deepening the product mix with additional and different units.
  • The Company provides this service in exchange for a fee, ranging from 2.5% and up to 8% of the sales value of the units. We expect to receive up to EGP1.3bn in such fees in FY2023. This additional source of income comes at virtually no cost to the Company, as we leverage the vast network of sales offices and personnel already in place while shielding the margins from any inflationary and macroeconomic pressure.

Composition of total sales achieved by TMG in its name and in the name of third parties YTD, as of 5th of March

3%

15%

21%

61%

TMG only

Residential deals

Ministry units

Non-residential deals

Investor presentation 5

Attachments

Disclaimer

TMG - Talaat Mostafa Group Holding Co. SAE published this content on 14 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2023 09:24:07 UTC.