Madinet Nasr S Regulatory News (MNHD)

Madinet Nasr Housing & Development Releases FY2017 Results, posts a 20.5% year-on-year increase in revenues on the back of strong deliveries and new presales during the year

Contracted sales exceeded year-end targets, reflecting MNHD's success in launching new phases across key developments

Madinet Nasr Housing & Development (EGX: MNHD.CA, "MNHD"), a leading urban developer in Egypt, announced today its results for the year ending 31 December 2017, reporting consolidated revenues of EGP 2.43 billion, representing an increase of 20.5% y-o-y. On the bottom-line, MNHD recorded a net profit of EGP 933.1 million, yielding a net profit margin of 38.4%.

Stellar results for the year were driven by presales, which reached EGP 5.1 billion in FY2017, representing a remarkable 48.9% year-on-year growth and exceeding MNHD's year-end budget of EGP 5 billion. Presales growth during the year was dual-driven by a combination of higher volumes and an uptick in price per sqm. On a different note, units delivered as of 31 December 2017 reached 538 units, up by 149 units from the previous year and surpassing the company's year-end budget of 500 units. MNHD's total construction spending reached EGP 915 million in FY2017, up 51% y-o-y compared to the FY2016 figure of EGP 606 million.

On a standalone basis, revenues recorded an impressive 20.7% y-o-y increase in FY2017 to EGP 2.1 billion, while net profit grew to EGP 943.3 million, up 27.7% year-on-year and posting a 44.5% net profit margin, up 2.4 percentage points from FY2016.

During 4Q2017, the company pushed forward with the launch of the third phase of its Taj City development, Shalya, in November. Taj City's amended master plan, which was approved in January 2018, will see the development boast an integrated urban community that enjoys vast green spaces within the heart of the city, offering both the conveniences of city life and the comforts of suburban living. The development has generated EGP 6.5 billion in sales and the sale of 3,233 units since the launch of its first phase in December 2012, with FY2017 sales at EGP 1.9 billion. The consistent generation of solid sales from Phase 3, following the success of Phases 1 and 2, demonstrates the continued appetite for the development's premium offerings in an ever-changing and highly dynamic industry. Overall, Taj City's amended master plan includes c.EGP 60 billion worth of residential communities, office buildings, a medical center, hotels, restaurants, shopping malls, and other commercial ventures.

Meanwhile, the company's 5.5 million sqm SARAI project, located in New Cairo near the new administrative capital, has booked EGP 4.2 billion in contract sales and sold 1,913 units since its launch in November 2016. During FY2017, its first full year on-sale, the development recorded EGP 3.2 billion in contracted sales and sold 1,346 units. MNHD will continue to monetize this unique land plot with future launches.

Despite strong sales during 4Q 2017 with the launch of its new phase, Shayla, Taj City's FY 2017 contribution to total contracted sales stood at 37.8% with the sale of 612 units while SARAI contributed 62.0% with the sale of 1,346 units by year-end.

"During a year of economic reforms and uncertainty in Egypt, MNHD has continued to record exceptional year-on-year growth in both our top-line and bottom-line, surpassing our budget and underlining our ability to achieve significant gains and execute successful launches regardless of the surrounding climate," said MNHD CEO Ahmed El Hitamy. "Going into 2018, we aim to leverage our extensive land bank, superior quality developments and leading marketing team to continue delivering growth and enhance shareholder value"

In total, MNHD has more than 10,000 units under development / design at five key projects in the Greater Cairo Area, offering exposure to a broad socioeconomic spectrum of consumers.

MNHD's FY2017 audited standalone and consolidated financial statements are now available for download on www.mnhd.com.

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Madinet Nasr Housing & Development (MNHD) is a leading Egyptian urban developer. Since inception, the company has initiated and completed a number of key developments, including the majority of the Nasr City district in the Greater Cairo Area, which covers an area of more than 40 million square meters and is home to 3 million people. MNHD's land bank includes 3.5mn sqm in a prime location inside Cairo across from Cairo International Airport and 5.5mn sqm in a strategic location on the Suez Road. You can learn more about us on our website at mnhd.com.

Ahmed El Hitamy

CEO

MNHD

4, Youssef Abbas St.

Nasr City, Cairo

Tel: +2 (02) 2400-6207

aelhitamy@mnhd.com

Salah Katamish

Director of Investor Relations

MNHD

4, Youssef Abbas St.

Nasr City, Cairo

Tel: +2 (02) 2400-6207

skatamish@mnhd.com