2019 a RECORD YEAR! Annual Report SODIC Is a Customer SODIC City TABLE of CONTENTS Focused Mixed Use Developer

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2019 a RECORD YEAR! Annual Report SODIC Is a Customer SODIC City TABLE of CONTENTS Focused Mixed Use Developer BELONG 2019 A RECORD YEAR! Annual Report SODIC is a customer SODIC City TABLE OF CONTENTS focused mixed use developer. 20 years young and driven by a progressive vision, Who4 We Are innovation is at the OVERVIEW 4 CORPORATE GOVERNANCE 98 Who We Are 4 Leadership Team 98 heart of everything SODIC In Numbers 14 Board Of Directors 106 we do. Our purpose STRATEGIC REPORT 18 Corporate Governance Report 114 7 Questions We Asked Our MD, 18 Shareholder Information 128 an interview with our Managing is to deliver dynamic Director CONSOLIDATED FINANCIAL 130 STATEMENTS 2019: The Game Changing Year!, 24 communities that a letter from our CFO Auditor’s Report 132 Our Land Bank And Assets 30 Consolidated statement of financial 134 our residents Portfolio position 34 SODIC East A Story Of Belonging Consolidated statement of profit 135 BELONG to, SODIC City 48 or loss For The Financial Year Ended Next Generation Of Projects 50 honouring their Consolidated statement of 135 Five Reasons To Invest In SODIC: 60 comprehensive income A Compelling Equity Story diversity and choice The SODIC Strategy 68 Consolidated Statement of 136 Changes in Equity SODIC Insider 72 of SODIC for The SODIC Employee Experience 76 Consolidated statement of cash 137 flows Testimonials 83 such a long-term Notes to the consolidated financial 138 Sustainability 84 statements commitment. 30 Our Land Bank Innovation Team And Assets Building Event Portfolio SODIC72 Insider Greg Norman Signature Golf Course - Allegria - SODIC City SODIC48 City 84Sustainability OVERVIEW SODIC City STRATEGIC REPORT STRATEGIC Sixth of October a lot more than Development and just buildings. It’s a Investment Co. platform for innovation (SODIC) is one of and inspiration. Since Egypt’s leading listed our inception in 1996, real estate developers. SODIC operates with We are developers of a deep-rooted belief large-scale, mixed-use that there is infinite communities in West untapped potential Cairo, East Cairo and in the outskirts, away the North Coast. Our from ever-congested developments cater Cairo. There lies the GOVERNANCE CORPORATE to the country’s ever- opportunity for us to growing need for high provide our residents quality residential and with a radically commercial property. improved quality of life, and deliver to our We believe that investors all at once. real estate is about We build communities bringing land to life. WHO FINANCIAL STATEMENTS CONSOLIDATED WE ARE? 4 I SODIC 5 I SODIC 2019: A record year! 2019: A record year! WHO WE ARE OVERVIEW STRATEGIC REPORT STRATEGIC We are well established honouring their diversity with a solid experience, and choice of SODIC yet we are still driven for such a long-term by our progressive commitment. Our vision, and innovation offerings foster cutting- is at the heart of edge communities that everything we do. Our span across generations. purpose is to deliver Delivering unique dynamic communities communities that that our residents generate value for all can truly BELONG to, our stakeholders. CORPORATE GOVERNANCE CORPORATE Eastown 20 FINANCIAL STATEMENTS CONSOLIDATED YEARS YOUNG 6 I SODIC 7 I SODIC 2019: A record year! 2019: A record year! WHO WE ARE OVERVIEW STRATEGIC REPORT STRATEGIC Our well-diversified are prepared to meet the prime near completion landbank, prime assets rising potential demand assets in our flagship portfolio and our strong for quality housing and city SODIC West. In balance sheet provides commercial space with 6.4 addition, over 45,000 us with solid footings million square meters of sqm of leasable areas in DELIVERING to deliver to all our unlaunched land in East East Cairo will be on the stakeholders. and West Cairo, and the market by 2022. And this North Coast. is just the beginning, as The size and diversity we are adding a total of of our land bank plays We are constantly 250,000 sqm by 2023. a massive role in diversifying and helping SODIC mitigate strengthening our We are fully aware of the GOVERNANCE CORPORATE VALUE concentration risks and investment portfolio, importance of preparing stand with confidence in building a portfolio of our developments for We’re driven to outperform, delivering value to the face of adversities. recurring income assets tomorrow, not just all our stakeholders. We do this by leveraging our It also provides us with within our existing mature making them relevant strong culture and values, focusing on our customers, an estimate of 9 years developments. We have today delivering trendsetting projects that we continue to of sales visibility. We retained 74,000 sqm of reinvest in, enabling us to grow our sales and cash flows creating significant and reliable returns to our shareholders. Caesar - Mediterranean North Coast CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Caesar - Mediterranean North Coast 8 I SODIC 9 I SODIC 2019: A record year! 2019: A record year! WHO WE ARE OVERVIEW STRATEGIC REPORT STRATEGIC INVEST. GOVERNANCE CORPORATE REINVEST. REPEAT. FINANCIAL STATEMENTS CONSOLIDATED Ours is a lifetime commitment to our clients, which is why we reinvest in our developments - our flagship development SODIC West is a clear example of delivering on that promise. With mixed use facilities constantly added to our developments, SODIC creates value that is there to last. However, we know there is much more to be done. We want to offer our +20,000+ residents a unique chance to BELONG to something special, something dynamic, upscale, and up-to-date. The Polygon - SODIC City 10 I SODIC 11 I SODIC 2019: A record year! 2019: A record year! WHO WE ARE OVERVIEW SODIC appreciates the human factor as the most REPORT STRATEGIC important factor in the creation of excellence and sustaining it. Our people work in an environment that empowers talent and helps it develop. Our employees view SODIC as a second family that they BELONG to. CORPORATE GOVERNANCE CORPORATE CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED We are all connected. BELONG. We do this by clients, but also in the way There’s infinite potential building communities our business is run. BELONGand empowerment in that that by design encourage fact. Critical situations, diversity, creating social such as the one COVID-19 fabrics that welcome presents us with, prove all and celebrate our that the only way out for differences. Our SODIC us is together; through City embodies this New our sense of community, World that is young and through our sense of progressive. A City that belonging to something celebrates diversity and is bigger than ourselves. buzzing with life. Our communities offer Our shareholders also our residents a common contribute to our story in a truth for a better quality unique way. They BELONG of life with a balance of to a company that prides residential, recreational itself on the diversity of its and business amenities shareholder base. Being and activities. Our purpose nonfamily owned greatly is to create somewhere distinguishes SODIC, not special; somewhere to only in the eyes of our 12 I SODIC 13 I SODIC 2019: A record year! 2019: A record year! OVERVIEW STRATEGIC REPORT STRATEGIC CORPORATE GOVERNANCE CORPORATE SODIC IN NUMBERS 14 I SODIC 15 I SODIC 2019: A record year! 2019: A record year! SODIC IN NUMBERS OVERVIEW Performance in 2019 REPORT STRATEGIC Item in EGP YoY 2018 2019 (unless stated otherwise) growth Gross contracted sales 5.5 bn 7.3 bn 32% +20 16 9 660 Delivered Units, number of 1,079 1,176 9% years mn sqm years employees Revenue 3,726 mn 5,329 mn 43% of operations total land future sales Gross Profit 1,226 mn 1,466 mn 20% GOVERNANCE CORPORATE bank through existing land Operating profit 336 m 702 m 109% Net Profit attributable to equity holders 449 m 719 m 60% Basic earnings per share 1.29 2.06 60% Dividend per share 0.5 0.55 10% Year-end cash and equivalents 4,165 m 3,974 m NA CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED We operate in 3 main markets in Egypt. West Cairo is where our story began over 20 +14,000 +10,000 +20,000 years ago. Our operations expanded to East Cairo, the largest and one of the fastest growing markets in the country. And we have been selling secondary beach homes in units sold across units delivered residents today the North Coast since 2015. our projects across our projects Breakdown of our +6mn sqm of unlaunched land 21% 39% 39% +78,000 INPS 2020 SODIC HQ +10 beneficiaries 95% integrated from education 44.7 projects East Cairo North Coast West Cairo initiatives past 3 powered by Solar Energy across 3 SODIC East, Villette Malaaz Al Yosr, October years geographies & Eastown Plaza & SODIC West, 500 acres 16 I SODIC 17 I SODIC 2019: A record year! 2019: A record year! OVERVIEW STRATEGIC REPORT STRATEGIC CORPORATE GOVERNANCE CORPORATE Magued Sherif Managing Director 7QUESTIONS FINANCIAL STATEMENTS CONSOLIDATED WE ASKED OUR MANAGING DIRECTOR 18 I SODIC 19 I SODIC 2019: A record year! 2019: A record year! OVERVIEW 7 QUESTIONS WE ASKED OUR MANAGING DIRECTOR solar powered homes, and spirit delivering authentic REPORT STRATEGIC 1 2 this is just the beginning. customer experiences to make a real difference Another wave of change in the communities we Q is nearing our shores in deliver. There are lot of Q promises in the business How was 2019 for the future, with plans Change is one to expand our digital we operate in, we have SODIC? way to guarantee transformation to new built our reputation on stability and frontiers. This has been delivering on ours. growth. What put to the test with the COVID-19 health crisis. A types of change did We are privileged to Our prior plans for 2019 was certainly a digitalisation acted as a play an important role GOVERNANCE CORPORATE record year for SODIC.
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