Talaat Mostafa TMG E : Moustafa Group Holding Presentation. November 2021.

9M2021 UPDATE

NOVEMBER 2021

TMG Holding S.A.E.	ﺔﻋﻮﻤﺠﻣ	ﺖﻌﻠﻃﻰﻔﻄﺼﻣ ﺔﻀﺑﺎﻘﻟا	ش. م. م.
عرﺎﺷ،ق٣٤ﺪﺼ/٣٦ﻣ	([phone]	Publicly held since 2007
34/36 Mossadek St., Dokki	ﻲﻗﺪﻟا	EGX: TMGH.CA / TMGH EY
	[e-mail]
Giza, Egypt	،ةﺰﻴﺠﻟا	ﺮﺼﻣ www.talaatmoustafa.com

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 improvement in quality of life for local communities.

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 905 upscale hotel rooms in total and is currently expanding its portfolio by 443 additional rooms in two new upscale hotel properties in Sharm El Sheikh and Cairo. Another two upscale hotels are to be developed in Marsa Alam and Luxor.

TMG Holding is also the owner of over 113 thousand 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 two 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 EGP63.3bn and to be fully delivered within the coming four years.

Market capitalization (as in November 2021)

EGP15.3bn

Turnover (9M2021)

EGP11.3bn

Backlog (9M2021)

EGP63.3bn

Total assets (9M2021)

EGP131bn

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 November 2021, financial and operational KPIs as of end-9M2021

Investor presentation 2

Investment themes that are important to consider right now when discussing TMG potential, deep inherent value in its stock and the abundance of positive catalysts on the horizon

Solid financial and operational performance of TMG during transformational years 2020/2021 confirms management's ability to accurately identify and capture unique market opportunities and mitigate any systemic challenges with well-tailored business strategy

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2

3

9M2021 was the best sales period in the company's history. Noor sales continue to beat expectations, with EGP18bn in net sales booked until end-September .

Total sales exceeded EGP27.5bn in 9M2021, helped by strong momentum across all projects, FY2021 guidance unchanged at EGP30bn, with significant upside to surprise positively by year-end

Strong recovery in hospitality division continues, with EBITDA until September 2021 at EGP195mn (5x initial budget, compared to loss of EGP51mn in 9M2020). Month of October was the strongest in 2021 and over the past 5 years, generating additional EBITDA of EGP71mn and occupancy of 77%

We delivered 35% y-o-y growth in retail revenues and 17% y-o-y growth in club revenues in 9M2021. Club membership sales increased 108% y-o-y and reached EGP261mn in 9M2021

TMG's investment land bank was valued at EGP112.6bn by independent valuators in October 2021. This represent a multiplication of current market cap of just EGP15.3bn, suggesting a remarkable investment opportunity in TMG's equity. This land bank is free of any significant liabilities and available for development or selective monetization. Continuous appreciation of TMG's paid and almost paid land bank is driven by i) continuous deliveries and population built-up, ii) continuous growth of economic activity in East Cairo, iii) recent large-scale transactions.

SALES

VALUE CREATION RECURRING INCOME

We continue delivering on our strategic objectives with:

• Strong and unmatched growth in sales during 9M2021, driven by new successful city launch and prevailing strong demand for legacy projects
• Sharply recovering income from hospitality division, boding well for the upcoming expansions
• Unlocking the value of our existing land bank through continuous and timely deliveries, benefiting from build-up of affluent populations in our cities
• Extracting liquidity from non-core assets to finance new developments and upcoming dividends

Investor presentation 3

Key financial highlights of 9M2021

Continous strength of TMG's financial results and profitability is a solid testimony to the robustness of management's business strategy and well-executedlong-term vision, yielding strong inprovements in profitability during 9M2021

Recurring

3% 2%

8%

Revenue

	10,000						+2.3% y-o-y
EGPmn	8,000
6,000
						+45.6% y-o-y
	4,000
	2,000
	8,895 1,517	9,104 2,209
	-
						9M2020			9M2021
			Development revenue			Recurring revenue
						Net income
	2,000
			+8% y-o-y
EGPmn	1,500
1,000
	500
		1,569	1,699
	-
			9M2020			9M2021
						Total assets
	140,000
	120,000
EGPmn	100,000
80,000
			+11% y-o-y
	60,000
	40,000
	20,000
	117,895	131,382
	-
						FY2020			9M2021

			Gross profit
		4,000
					+2.4% y-o-y
		3,000
EGPmn
2,000					+140% y-o-y
		1,000
		3,076	243	3,150	583
		-
			9M2020		9M2021
		Development gross profit		Recurring gross profit

Recurring GP as % of total

20%

+8.3pp y-o-y

15%

10%

5%

7.3%15.6%

0%

9M20209M2021

Debt to equity

25.0%
20.0%
15.0%
	+3.2pp y-o-y
10.0%
5.0%
19.9%	23.2%
0.0%
	FY2020	9M2021

7%	6% 3%1%			Further improvement
	4%			in revenue mix with
				strong growth in
	Revenue	9M20	9M21	recurring income
	contribution	achieved in 9M2021
		86%				Development		Hotels
					Services		Clubs
		80%				Retail

• Revenues of EGP11.3bn, up 8.7% y-o-y, of which 19.5% or EGP2.21bn was generated from hospitality and other recurring income lines, recovering steadily after negative impacts from COVID-19 pandemic lasting since 2020
• Gross profit of EGP3.73bn, up 12.5% y-o-y, of which 15.6% generated by recurring income lines
• Profit before minority interest and tax of EGP1.70bn, up 10.0% y-o-y
• Net profit after tax and minority interest of EGP1.69bn, up 8.2% y-o-y. Minority interests driven primarily by the hospitality segment turn to a positive figure (EGP4.7mn) in 9M2021 as the segment returns to bottom-line profitability
• Net cash position of EGP3.9bn as at end-9M2021, providing strong cushion for planned investment
• Debt-to-equityratio of 23.2% only
• Total backlog of EGP63.3bn, representing 14.5k units to be delivered during the next 5 years

Investor presentation 4

Noor launch - unprecedented success in the history of the Group and Egyptian real estate market

Total net sales achieved in Noor in 9M2021

EGP18bn

Total net sales in 9M2021 reach a whopping EGP27.5bn, the highest in Egypt in recent history, providing a strong testimony to management's ability to address existing deep demand with appropriate product and sales strategy. Backlog now stands at EGP63.3bn, the highest in Egypt, representing some 14.5k units to be delivered during the next 5 years.

Noor sales reached a record EGP15bn in just three weeks during June launch, achieving the highest launch sales for a real estate developer in Egypt, increasing to EGP18bn until end-September

Total net sales in 9M2021

27.5bn* / 6k+ units

Online sales until end-September

EGP1.8bn

FY2021 sales guidance

30bn

We launched our new integrated city in front of the New Administrative Capital on massive 21mn sqm at the beginning of June, following an intensive marketing campaign.

• Following detailed market study and good understanding of the needs of our target segment of end-users and long-term investors in the current macroeconomic environment, multi-tenant and stand-alone units have been launched on very attractive and competitive payment plans of 5, 10 and 15 years in length.
• Noor sales reached a record EGP15bn in just three weeks, achieving the highest launch sales for a real estate developer in Egypt. Sales until end-September reached a whopping EGP18bn,
• Thanks to a unique partnership with local banks, TMG Holding will be able to discount up to EGP15bn worth of uncollected receivables from Noor project post unit delivery at a net discounted value of EGP9bn (covering EGP33bn worth of sales) at a fixed and known cost, which the Group was able to already price into its payment plans upon launch. Given that TMG has already sold cEGP18bn worth of units in Noor, it still has significant room of cEGP15bn of new sales to be covered by this facility.
• • This unique mechanism thus i) allows the Group to address untapped demand through longer payment plans improving product affordability, resulting in significant additional sales, ii) eliminates downside risks related to changing interest rate environment in the long-term and iii) allows the Group to recognize additional profits upon discounting of cheques post-delivery.
• Simultaneously, given the massive scale of the upcoming development effort in Noor, management has devised similarly unique arrangements with the Group's key contractors, effectively fixing annual escalation of construction costs and eliminating its liability for any sharp changes in building material costs going forward. Construction of Noor is planned to commence in September 2021.

Notes (*): Includes EGP2.2bn of sales related to bulk transaction of EGP9bn with Rawasy company, recognized during 3Q2021. Remaining amounts are to be recognized over the coming quarters.

Investor presentation 5