MNHD Reports Results for 9M 2022

MNHD Reports Results for 9M 2022
MNHD achieves record-breaking nine-month gross contracted sales and revenue with net profit more than doubling during the period, along with rapid growth in unit deliveries.

 Madinet Nasr for Housing & Development (“MNHD” or “the Company”), one of Egypt’s leading urban community developers, announced on 2 November 2022 its standalone financial results for the nine-month period ended 30 September 2022 (9M 2022), reporting a net profit of EGP 545.0 million on total revenues of EGP 3,001.4 million. The Company reported a net profit of EGP 308.1 million for the quarter ended 30 September 2022 (Q3 2022), booking a top line of EGP 1,210.7 million.

Summary Income Statement (EGP mn) Q3 2022 Q3 2021 Change 9M 2022 9M 2021 Change
Revenue 1,210.7 419.5 188.6% 3,001.4 1,310.0 129.1%
Gross Profit 683.5 117.8 480.4% 1,230.8 630.0 95.4%
Gross Profit Margin 56.5% 28.1% +28.4 pts 41.0% 48.1% -7.1 pts
EBITDA 464.7 63.3 633.8% 868.7 429.1 102.5%`
EBITDA Margin 38.4% 15.1% +23.3 pts 28.9% 32.8% -3.8 pts
Net Profit 308.1 23.9 1187.1% 545.0 257.6 111.5%
Net Profit Margin 25.4% 5.7% +19.7 pts 18.2% 19.7% -1.5 pts

Key Operational Indicators Q3 2022 Q3 2021 Change 9M 2022 9M 2021 Change
Gross Contracted Sales (EGP mn) 3,268.6 598.7 445.9% 6,696.2 2,102.9 218.4%
Units Sold 1,101 226 387.2% 2,253 799 182.0%
Deliveries 281 218 28.9% 1,113 570 95.3%
Land Bank (million sqm) 9,588.1 9,588.1 – 9,588.1 9,588.1 –

Key Highlights
⦁ MNHD delivered record-breaking gross contracted sales of EGP 6,696.2 million for 9M 2022, up by 218.4% y-o-y as it launched new projects during the period. Gross contracted sales reached EGP 3,268.6 million in Q3 2022, an increase of 445.9% y-o-y.
⦁ The Company delivered a total of 1,113 units during 9M 2022, an increase of 95.3% y-o-y versus the 570 units delivered for 9M 2021. In Q3 2022, MNHD delivered a total of 281 units, up by 28.9% y-o-y.
⦁ Revenues came in at EGP 3,001.4 million for 9M 2022, up by 129.1% y-o-y, driven by strong growth in gross contracted sales coupled with an increase in deliveries. MNHD booked revenues of EGP 1,210.7 million in Q3 2022, an increase of 188.6% y-o-y.
⦁ Gross profit recorded EGP 1,230.8 million in 9M 2022, climbing 95.4% y-o-y. MNHD’s gross profit margin registered 41.0% in 9M 2022 against 48.1% for 9M 2021, in line with anticipated unit deliveries and MNHD’s total revenue mix for 9M 2022. Gross profit came in at EGP 683.5 million for Q3 2022, up by 480.4% and yielding an improved gross profit margin of 56.5% against the 28.1% booked in Q3 2021 as revenue from unit deliveries accounted for a smaller percentage of total revenue in Q3 2022.
⦁ MNHD booked an EBITDA of EGP 868.7 million for 9M 2022, a rise of 102.5% y-o-y. The EBITDA margin came in at 28.9% for the period, against a margin of 32.8% recorded one year previously, reflecting the increase in unit delivery revenues, which have a lower associated margin. In Q3 2022, EBITDA recorded EGP 464.7 million, up by 633.8%, yielding a margin of 38.4% against the 15.1% booked for Q3 2021.
⦁ The Company posted a net profit of EGP 545.0 million for 9M 2022, up by 111.5% y-o-y and yielding a net profit margin of 18.2% against the 19.7% booked for 9M 2021. Net profit came in at EGP 308.1 million for Q3 2022, up by 1187.1% and yielding a net profit margin of 25.4% up from the 5.7% recorded one year previously as bottom-line results benefitted from a rapid increase in revenue in Q3.
⦁ Net debt stood at EGP 1,649.8 million at the close of 9M 2022, marking a year-to-date (YTD) decrease of 37.3%, in line with MNHD’s strategy to optimize efficient utilization of borrowing to support growth and manage financial risk. The net debt/EBITDA ratio booked 1.4x for the period, down from 4.6x at year-end FY2021.
⦁ Total notes receivable recorded EGP 4,121.3 million as at 30 September 2022, up by 19.6% YTD and yielding a receivables/net debt ratio of 2.5x for 9M 2022, up from 1.3x at the close of FY2021.
⦁ Net cash collections booked EGP 2,623.6 million in 9M 2022, up by 18.5% y-o-y. In Q3 2022, the Company made net cash collections of EGP 989.6 million, up 39.0% y-o-y.
⦁ MNHD deployed EGP 1,340.9 million in construction and infrastructure CAPEX during the nine-month period, compared to the outlay of EGP 1,919.6 million booked for 9M 2021 following the completion and delivery of several construction projects. The Company made CAPEX outlays of EGP 542.0 million in Q3 2022, which is 26.5% less than the EGP 737.6 million deployed in Q3 2021.

Management Comment
As we approach the end of an exciting year, MNHD carried the growth momentum forward and achieved exceptional operational and financial results for the third quarter of the year. Our performance during the quarter is a testament to our teams’ dedication and the robustness of our new growth strategy, which continue to propel us forward.
MNHD delivered exceptional results with gross contracted sales increasing more than three-folds year-on-year in 9M 2022 to EGP 6,696.2 million. The results were strongly supported by the successful launch of Taj Ville in April 2022 followed by the launch of Elect in July 2022, both situated in premium locations within Taj City. MNHD recorded EGP 1.2 billion in reservations in July 2022, marking a record figure for reservations in a single month. Today, our company is in a favourable position with great growth potential to unlock thanks to our strategically located and liability free undeveloped land bank at Taj City and Sarai.
In addition to record sales, unit deliveries nearly doubled in volume year-on-year in 9M 2022 to reach 1,113 units, driven by handovers in Sarai. The operational performance supported financial results with the Company’s top line expanding 129.1% y-o-y to EGP 3,001.4 million and net profit more than doubling year-on-year to EGP 545.0 million with an associated margin of 18.2% in 9M 2022. Furthermore, our portfolio optimization efforts are no doubt yielding positive results as MNHD’s delinquency rate and cancellations as a percentage of sales continue to decrease.
We continue to make great progress in identifying key partnerships that add to our vision of building and delivering sustainable urban communities. To that end, we have announced our partnership agreement with Asten College to establish an international school in Taj City. We are also looking into long-term agreements to support our growing project pipeline. In this regard, we have signed a Memorandum of Understanding with El Hazek Construction and a partnership agreement with DMC to carry out construction projects in the coming period. Our strategy moving forward revolves around our commitment to build integrated communities and financial growth for our shareholders.
Looking ahead, we are aware of the shifting macroeconomic dynamics and the turbulent operating environment that ensues in light of inflationary pressures and the impacts they may have on consumer purchasing power. However, we are encouraged by the fact that historically in challenging times people have turned to the real estate sector to safeguard their financial interests and MNHD has constantly provided a value adding proposition through its diverse range of projects. Our performance thus far in 2022 has instilled a level of confidence and satisfaction from our customers that we are very pleased with. We are optimistic and motivated to unleash further potential and look forward to closing the year on a positive note.

Cancellations
In line with declining delinquency rates, cancellations stood at EGP 1,702.9 million for 9M 2022, an increase from cancellations of EGP 852.8 million in 9M 2021. The increase in cancellations during the period was an artefact of the COVID-19 pandemic and its effects on the purchasing power of certain market segments as well as ongoing portfolio optimization efforts. As a percentage of MNHD’s gross contracted sales, cancellations booked 25.4% during 9M 2022, down from the rate of 40.6% recorded one year previously as the Company continues to optimize its receivables portfolio. MNHD expects cancellations to normalize towards a more typical rate of 10-15% as the Company’s receivables portfolio is cleared of nonperforming contracts during Q1 2023.

In Q3 2022, cancellations booked EGP 530.1 million, at par with EGP 529.9 million booked Q3 2021. Cancellations recorded 16.2% as a percentage of gross contracted sales in Q3 2022, down significantly y-o-y against the 88.5% booked in Q3 2021, when MNHD started measures of portfolio optimization.

Deliveries
The Company delivered 1,113 residential units across its developments during 9M 2022, up by 95.3% y-o-y from the 570 deliveries recorded for 9M 2021. Deliveries for the period were largely on schedule. The rapid increase in handovers during the period reflects MNHD’s ability to deliver efficiently on its construction pipeline. Deliveries for the period were led by Sarai and boosted by sales of ready-to-move inventory. MNHD completed 657 handovers at Sarai for 9M 2022, up from 117 one year previously. The Company recorded 436 handovers at Taj City during 9M 2022, up from 323 in 9M 2021. Meanwhile, the Company booked 20 handovers at Nasr Gardens, a subsidized housing project, down from 130 in 9M 2021. Image

MNHD recorded 281 unit deliveries in Q3 2022, up by 28.9% from the 218 units recorded for Q3 2021. The Company delivered 77 units at Taj City during the quarter (Q3 2021: 120), with 198 units delivered at Sarai (Q3 2021: 77) and six units delivered at Nasr Gardens (Q3 2021: 21).

Ready-to-Move Inventory
Approximately 37% of MNHD’s gross contracted sales for 9M 2022 were sales of ready-to-move inventory, with such sales driven largely by Taval and Croons (Sarai) and Park Residence (Taj City). Meanwhile, off-plan sales accounted for 63% of gross contracted sales in 9M 2022, mainly at Croons and Cavana (Sarai), as well as Shalya, Taj Ville, Taj Gardens (Taj City).

CAPEX
MNHD deployed construction and infrastructure CAPEX of EGP 1,340.9 million during 9M 2022 compared to EGP 1,919.6 million in 9M 2021. The Company’s construction and infrastructure investments at Taj City amounted to EGP 636.5 million in 9M 2022, against EGP 824.2 million for the same period of the previous year. At Sarai, MNHD recorded a construction and infrastructure CAPEX spend of EGP 634.4 million for 9M 2022, against EGP 1,042.7 million for 9M 2021. Construction and infrastructure CAPEX at other projects booked EGP 70.0 million for 9M 2022, an increase from the EGP 52.8 million recorded one year previously.

The overall change in CAPEX for 9M 2022 comes following MNHD’s completion and delivery of several construction projects at the TAVAL and Croons developments in Sarai and at Park Residence in Taj City. Meanwhile, in June 2022, MNHD began construction at Shalya, a 156-thousand-sqm project at Taj City, demonstrating the Company’s commitment to continuous delivery on its project pipeline.

MNHD made construction and infrastructure CAPEX outlays of EGP 542.0 million for Q3 2022, down from EGP 737.6 million one year previously. CAPEX spends recorded EGP 363.2 million at Taj City (Q3 2021: EGP 376.8 million), EGP 158.1 million at Sarai (Q3 2021: EGP 343.8 million), and EGP 20.7 million at other projects (Q3 2021: EGP 17.0 million).

Land Bank
MNHD held a land bank measuring 9.6 million sqm at the close of 9M 2022. The Company’s primary land bank is strategically located in Greater Cairo (Taj City and Sarai) and is owned in freehold, imparting significant competitive advantages as MNHD is not bound by any specific development timelines outlined by state authorities and is legally entitled to parcel and sell plots of undeveloped land. About 39.8% of MNHD’s land bank was held at Taj City as at 30 September 2022, with 60.2% held at Sarai.

Nearly 52.7% of Taj City’s land area was under development at the close of 9M 2022, with unlaunched residential projects and unlaunched nonresidential projects accounting for 24.5% and 22.8%, respectively. At Sarai, approximately 29.3% of the total land area was under development in 9M 2022, with unlaunched residential projects and unlaunched nonresidential projects accounting for 55.4% and 15.3%, respectively.

The Company holds a new land bank of more than 437 thousand sqm in the Assiut region of Upper Egypt. As of 9M 2022, MNHD’s land bank in Assiut was under development, marking the Company’s geographical expansion beyond the Greater Cairo area.

Financial Performance
Income Statement
Revenues
+ 129.1%
ImageThe Company booked revenues of EGP 3,001.4 million in 9M 2022, up by 129.1% y-o-y from a top line of EGP 1,310.0 million in 9M 2021. Strong revenue growth for the period was primarily driven by a rapid rise in unit deliveries, with further momentum coming from the growth in gross contracted sales.
Deliveries generated revenues of EGP 1,695.1 million during 9M 2022, an increase of 159.3% y-o-y, while new sales generated revenues of EGP 1,627.6 million for the period, up by 103.2% y-o-y. Meanwhile, revenue from unit deliveries contributed 51.0% of the Company’s gross 9M 2022 sales revenue of EGP 3,322.7 million before cancellations, installment interest and rental revenues. Revenue from new sales accounted for 49.0% of the Company’s gross top line for the period. At the close of 9M 2022, MNHD had an unrecognized revenue backlog of EGP 10,721.7 million, calculated as the nominal price of undelivered sales.
MNHD recorded revenues of EGP 1,210.7 million for Q3 2022, up by 188.6% y-o-y. Delivery revenues represented 34.5% of the Company’s gross top line during Q3 2022, while revenue from unit sales contributed 65.5% for the quarter.
ImageGross Profit
+ 95.4%
Gross profit recorded EGP 1,230.8 million for 9M 2022, an increase of 95.4% y-o-y against EGP 630.0 million one year previously. Healthy growth in gross profit was driven by the Company’s rapid top-line expansion for the period. MNHD booked a gross profit margin of 41.0% in 9M 2022, against 48.1% in 9M 2021. This contraction in the gross profit margin (GPM) during the period is in line with the anticipated contribution of unit delivery revenue to MNHD’s total revenue mix for 9M 2022 (delivery revenues generate lower margins as compared to revenue from new sales).
MNHD booked a gross profit of EGP 683.5 million for Q3 2022, up by 480.4% y-o-y. The Company’s GPM registered 56.5% for the quarter, up from the 28.1% registered one year previously.
Sales, General & Administrative Expense
Sales, general & administrative (SG&A) expense came in at EGP 490.0 million for 9M 2022, rising by 79.7% y-o-y from the outlay of EGP 272.6 million recorded for the same period of 2021. SG&A expenses rose on the back of targeted media campaigns production and activation as well as the period’s increase in contracted sales and deliveries, which drove a concurrent increase in sales commissions. As percentage of revenues, SG&A expense recorded 16.3% for 9M 2022, down from 20.8% one year previously.
SG&A expenses recorded EGP 218.1 million for Q3 2022, up by 158.3% y-o-y. SG&A expense booked 18.0% as a percentage of revenues in Q3 2022, down from the figure of 20.1% booked for Q3 2021.
Net Interest Expense
+ 102.5%
Net interest expense booked EGP 133.4 million in 9M 2022, up from EGP 59.4 million for 9M 2021. The increase in MNHD’s net interest expense during the period reflects new interest payments under a sale and leaseback agreement relating to a land plot at the Cobalt District in Taj City, as well as interest payments on a discounting loan executed during Q3 2021. Net interest expense recorded EGP 39.5 million in Q3 2022, up from EGP 21.1 million.Image

EBITDA
MNHD reported an EBITDA of EGP 868.7 million for the nine-month period, marking a climb of 102.5% y-o-y from the EGP 429.1 million recorded for 9M 2021. The associated EBITDA margin was 28.9% in 9M 2022 compared to 32.8% one year previously due to the increase in the share of deliveries with their typically lower profit margins in the Company’s revenue mix for 9M 2022.
In Q3 2022, MNHD booked an EBITDA of EGP 464.7 million, up by 633.8% y-o-y. The EBITDA margin came in at 38.4% for the quarter, up from the 15.1% recorded in Q3 2021.

Net Profit
+ 111.5%
ImageNet profit registered EGP 545.0 million for 9M 2022, a climb of 111.5% y-o-y compared to the EGP 257.6 million booked one year previously. Bottom-line growth for the period reflects a rapid increase in revenue. The net profit margin (NPM) settled at 18.2% for 9M 2022, against 19.7% in 9M 2021. This decline in the Company’s NPM in line with the anticipated contribution of unit delivery revenue to MNHD’s total revenue mix for 9M 2022 and an increase in net interest expense during the period.
MNHD recorded a net profit of EGP 308.1 million for Q3 2022, up by 1187.1% y-o-y. The Company’s NPM booked 25.4% for Q3 2022, up from the 5.7% recorded one year previously.

Balance Sheet
Cash & Cash Equivalents
On the balance sheet front, MNHD held cash and cash equivalents of EGP 1,887.8 million excluding customer maintenance deposits as at 30 September 2022, up 69.9% from EGP 1,111.2 million at the close of 2021, primarily due to the decrease in CAPEX spending and increase in new sales.

Debt
As at 30 September 2022, MNHD had outstanding debt of EGP 3,537.6 million, down 5.5% from the of EGP 3,742.4 million booked at year-end 2021, due to the partial repayment of sale-and-lease back liabilities. The Company’s debt/equity ratio stood at 75.8% by the close of 9M 2022, a decrease from the level of 98.8% posted for December 2021. Net debt came in at EGP 1,649.8 million as at 30 September 2022, down from EGP 2,631.2 million at the close of 2021. MNHD recorded a net debt/EBITDA ratio of 1.4x for 9M 2022, down from 4.6x as at 31 December 2021. MNHD’s strategy is to optimize efficient utilization of borrowing to support growth and manage financial risk.

Notes Receivable
MNHD held EGP 4,121.3 million in notes receivable at the close of 9M 2022, of which EGP 2,253.4 million were short-term receivables, EGP 1,454.9 million long term receivables and EGP 413.0 million were due from customers. The Company closed an EGP 300 million securitization transaction during the period, bringing its cumulative gross securitized receivables to EGP 744.4 million as of 30 September 2022. Receivables to net debt stood at 2.5x by the end of 9M 2022, up from the 1.3x recorded at year-end 2021.

PP&E
PP&E, fixed assets under construction, and property investments booked EGP 44.2 million at the close of 9M 2022, down from EGP 50.6 million at the close of 2021.

Recent Corporate Developments

⦁ On 5 July 2022, the Company’s Board of Directors received a non-binding offer from Sixth of October for Development and Investment Company (SODIC) for a potential cash acquisition of up to 100% of MNHD’s share capital through a mandatory tender offer. SODIC’s offer indicated a price in the range of EGP 3.20-3.40. MNHD’s Board of Directors has invited the Company’s Ordinary General Assembly to convene on 16 August 2022 to discuss the request submitted by SODIC for approval of due diligence studies on MNHD. The OGM of shareholders rejected the due diligence request.

⦁ In July 2022, MNHD launched the first phase of Elect, a new development at Taj City. MNHD sold 50 percent of the development’s first phase within two days of launch, recording approximately EGP 400 million in sales during that phase. As at 30 September 2022, sales had reached a total of EGP 710 million. Encompassing three distinct zones, Elect presents homebuyers with a unique selection of one-story, two-story, and Z-villas. The 167.2-thousand-sqm development sits at an elevation of nine meters above the rest of Taj City and will offer residents a full and exceptional view of the project and its neighborhoods.

⦁ MNHD recorded EGP 1.2 billion in reservations for the month of July 2022. This marks the Company’s record figure for reservations in a single month. Activity was driven by the launches of Elect and Taj Ville, as well as sales of ready-to-move inventory and activity at Croons and Taval at Sarai. Historically strong sales activity indicates the Company’s ability to leverage healthy consumer demand despite macroeconomic uncertainty and testifies to the great potential of MNHD’s undeveloped land banks at Taj City and Sarai for profitable residential and commercial development.

⦁ In September 2022, MNHD announced a Memorandum of Understanding (MoU) with El Hazek Construction, a leading construction company of El Hazek Group, to carry out construction work worth EGP 1.5 billion for its projects starting with “Shalya” in Taj City. Under this agreement, Al Hazek Construction will carry out the construction work of 34 residential buildings with a total of 941 units with various spaces ranging from 69 to 300 sqm, spanning 34 feddans. The scope of work will cover a number of phases within the project over the two-year term of agreement. The first phase of the project is expected to be delivered within 18 months.

⦁ In September 2022, MNHD signed a partnership agreement with Asten College to establish its first international school in Taj City. Asten College is a project of the Balanced Education Company (BalancED) that follows the British Education System (IGCSE) and is one of the first schools to implement the digital transformation concept in education through a partnership with Microsoft Egypt. The school spans a total area of 20,000 sqm in Taj City with a capacity of more than 1,800 students.

⦁ In October 2022, MNHD signed a partnership agreement with DMC – one of the leading Egyptian contracting companies in general contracting and projects construction – to execute the construction of 13 buildings in the Lake Park project in Taj City. The total investment of the project is valued at EGP 350 million and is expected to be delivered in 18 months.

— Ends —

Income Statement

(EGP 000) Q3 2022 Q3 2021 Change 9M 2022 9M 2021 Change
Net Revenues 1,210,663.9 419,510.6 188.6% 3,001,371.6 1,310,046.1 129.1%
Cost of Revenues (527,163.5) (301,743.7) 74.7% (1,770,540.5) (680,018.7) 160.4%
Gross Profit 683,500.4 117,766.9 480.4% 1,230,831.1 630,027.4 95.4%
Less:
Sales & Marketing Expense (181,790.3) (58,529.5) 210.6% (395,477.8) (175,802.2) 125.0%
General & Administrative Expenses (36,301.6) (25,891.8) 40.2% (94,547.1) (96,822.3) -2.3%
Other Operating Expenses (11,020.0) (11,676.5) -5.6% (30,247.2) (29,733.0) 1.7%
Interest Expense (76,694.1) (42,697.7) 79.6% (223,990.8) (126,441.9) 77.1%
Provisions (10,000.0) – – (10,000.0) – –
Add:
Provisions No Longer Required – – – – 8,000.0 -100.0%
Reversal of Expected Credit Loss (Net) (15,000.0) – – 55,000.0   –
Interest Income 37,172.4 21,596.3 72.1% 90,611.2 67,058.9 35.1%
Other Operating Income 24,086.9 26,485.5 -9.1% 77,978.4 52,634.5 48.2%
Operating Profit 413,953.7 27,053.3 1430.1% 700,157.8 328,921.5 112.9%
Income from Financial Assets Held at Fair Value (Other Comprehensive Income) – 1,608.9 -100.0% 222.2 1,830.9 -87.9%
Income from Financial Assets – Amortized Cost – 41.7 -100.0% 40.3 41.7 -3.4%
Other Expenses (3,232.3) (1,253.2) 157.9% (7,978.1) (4,747.9) 68.0%
Net Profit Before Tax 410,721.4 27,450.7 1396.2% 692,442.2 326,046.1 112.4%
Income Tax (121,526.4) (4,458.6) 2625.7% (167,151.9) (55,563.3) 200.8%
Deferred Tax 18,856.4 941.7 1902.4% 19,682.4 (12,841.1) -253.3%
Net Profit for the Period 308,051.3 23,933.8 1187.1% 544,972.7 257,641.8 111.5%

Balance Sheet
(EGP 000) 30-Sep-22 31-Dec-21 Change
Assets
Noncurrent Assets
Fixed Assets (Net) 35,166.7 43,166.8 -18.5%
Right-of-Use Assets 18,922.4 43,907.0 -56.9%
Fixed Assets Under Construction 6,588.6 3,537.8 86.2%
Intangible Assets 4,766.5 3,030.2 57.3%
Investments in Subsidiaries 78,957.3 78,957.3 0.0
Investments in Subsidiaries – Down payment 175,000.0 0.0 –
Financial Assets at Amortized Cost 122.0 122.0 0.0%
Financial Assets at Fair Value – Other Comprehensive Income 24,623.5 24,623.5 0.0%
Real Estate Investments 2,420.6 3,930.6 -38.4%
Long-Term Notes Receivable (Net) 1,454,944.0 779,882.2 86.6%
Deferred Tax 24,595.4 4,913.0 400.6%
Total Noncurrent Assets 1,826,107.0 986,070.3 85.2%
Current Assets
Inventory – Materials 0.0 2,095.7 -100.0%
Lands and Real Estate Units Under Construction 6,275,428.1 6,128,349.3 2.4%
Completed Real Estate Units 205,586.8 208,136.4 -1.2%
Short-Term Accounts Receivable (Net) 2,253,374.8 2,087,540.4 7.9%
Due from Customers (Net) 413,016.4 578,612.1 -28.6%
Due from Suppliers (Net) 258,767.4 282,860.1 -8.5%
Debtors and Other Debit Balances 524,849.2 698,959.3 -24.9%
Financial Assets at Fair Value Through Profit or Loss 2,253.0 2,486.0 -9.4%
Financial Assets at Amortized Cost – Treasury Bills 857,126.6 589,648.8 45.4%
Due from Related Parties 68,655.5 56,763.6 20.9%
Due from Management, Operations, and Maintenance at Residential Developments 0.0 10,950.9 -100.0%
Cash & Cash Equivalents 1,028,420.6 519,104.4 98.1%
Total Current Assets 11,887,478.3 11,165,507.0 6.5%
Total Assets 13,713,585.3 12,151,577.3 12.9%
Liabilities & Shareholders’ Equity
Shareholders’ Equity
Issued and Paid-In Capital 2,100,000.0 1,497,600.0 40.2%
Legal Reserve 335,772.3 321,640.7 4.4%
Retained Earnings 1,664,460.0 1,664,173.6 0.0%
Net Profit for the Period 544,972.7 282,633.2 92.8%
Other Comprehensive Income 20,109.4 20,109.4 0.0%
Total Shareholders’ Equity 4,665,314.4 3,786,156.9 23.2%
Noncurrent Liabilities
Long-Term Notes Payable (Net) 188,643.4 205,585.8 -8.2%
Long-Term Loans 1,910,504.4 2,053,374.3 -7.0%
Long-Term Liabilities – Land Development 288,825.2 –
Long-Term Lease Liabilities 12,793.8 14,818.0 -13.7%
Total Noncurrent Liabilities 2,400,766.7 2,273,778.0 5.6%
Current Liabilities
Advances from Customers 3,045,320.5 2,965,379.3 2.7%
Provisions 48,114.9 43,979.3 9.4%
Due to Related Parties 5,028.0 5,469.3 -8.1%
Due to Suppliers 488,881.9 388,942.5 25.7%
Completion of Infrastructure Liabilities 163,331.2 86,803.9 88.2%
Dividend Payable 911.8 20,116.2 -95.5%
Creditors and Other Credit Balances 884,036.6 845,695.7 4.5%
Due to Management, Operations and Maintenance at Residential Developments 14,126.5 0.0 –
Current Portion of Long-Term Debt 403,936.2 170,497.7 136.9%
Short-Term Loans 711,500.0 700,000.0 1.6%
Banks – Credit Facilities 137,312.7 39,426.7 248.3%
Short-Term Lease Liabilities 361,508.4 764,292.9 -52.7%
Short-Term Liabilities – Land Development 208,806.6 0.0 –
Tax Authority 174,688.9 61,038.9 186.2%
Total Current Liabilities 6,647,504.1 6,091,642.4 9.1%
Total Liabilities 9,048,270.9 8,365,420.4 8.2%
Total Liabilities and Shareholders’ Equity 13,713,585.3 12,151,577.3 12.9%

About MNHD
Since 1959, Madinet Nasr Housing and Development (MNHD) has served the housing needs of millions of Egyptians. Initially founded to develop master projects for the Cairo district of Nasr City, home to three million residents, MNHD has grown into a premier real estate developer and has become one of the country’s most recognizable real estate brands. MNHD was listed on the Egyptian Exchange in 1996, capitalizing on a long and successful track record of delivering world-class housing and infrastructure projects to broaden its exposure to various target segments of the Egyptian real estate market. Anchored in the Greater Cairo Area and with a growing presence in other regions of Egypt, the Company holds a land bank of over nine million square meters (sqm). MNHD had fourteen active projects across two main developments at the close of Q3 2022: Taj City, a 3.6 million sqm mixed use development positioned as a premier cultural destination, and Sarai a 5.5 million sqm mixed use development strategically located near Egypt’s New Administrative Capital between Cairo and Suez.
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Investor Relations Contact
Salah Katamish
Tel +2 (02) 2400 6207
skatamish@mnhd.com
Investor Relations Department
Tel +2 (02) 2400 6210
investor.relations@mnhd.com
Madinet Nasr for Housing and Development
4 Youssif Abbas Street, District 2
Nasr City, Cairo, Egypt
www.mnhd.com

BIG Investment Group Ltd
B Investment Holding SAE
Holding Company for Construction & Development SAE
Sallam Family
Local Institutions
Foreign Institutions
Other and Free Float

Shareholder Structure

Forward Looking Statements
The information, statements and opinions contained in this Presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. Information in this Presentation relating to the price at which investments have been bought or sold in the past, or the yield on such investments, cannot be relied upon as a guide to the future performance of such investments.

This Presentation contains forward-looking statements. Such forward-looking statements contain known and unknown risks, uncertainties and other important factors, which may cause actual results, performance or achievements of Madinet Nasr for Housing & Development (the “Company”) to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future.

None of the future projections, expectations, estimates or prospects in this Presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects are based are accurate or exhaustive or, in the case of the assumptions, entirely covered in the Presentation. These forward-looking statements speak only as of the date they are made and, subject to compliance with applicable law and regulation, the Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in the Presentation to reflect actual results, changes in assumptions or changes in factors affecting those statements.

The information and opinions contained in this Presentation are provided as of the date of the Presentation, are based on general information gathered at such date and are subject to changes without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. Subject to compliance with applicable law and regulation, neither the Company, nor any of its respective agents, employees or advisers intends or has any duty or obligation to provide the recipient with access to any additional information, to amend, update or revise this Presentation or any information contained in the Presentation.

Certain financial information contained in this presentation has been extracted from the Company’s unaudited management accounts and financial statements. The areas in which management accounts might differ from International Financial Reporting Standards and/or U.S. generally accepted accounting principles could be significant and you should consult your own professional advisors and/or conduct your own due diligence for complete and detailed understanding of such differences and any implications they might have on the relevant financial information contained in this presentation. Some numerical figures included in this Presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in certain tables might not be an arithmetic aggregation of the figures that preceded them.

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