Housing & Development Bank

Investor Presentation
Q2- 2015 Results
August 2015
 Disclaimer
In this presentation Housing and Development Bank (HDB) may make forward
looking statements, including, for example, statements about managements
expectations, strategic objectives, growth opportunities and business prospects. Such
forward looking statements by their nature may involve a number of risks, uncertainties
and assumptions that could cause actual results or events to differ materially from
those expressed or implied by these statements. Examples may include financial
market volatility; actions and initiatives taken by current and potential competitors;
general economic conditions; and the effect of current, pending and future legislation,
regulations and regulatory actions. Furthermore, forward looking statements contained
in this document that reference past trends or activities should not be taken as a
representation that such trends or activities will continue.
Housing and Development Bank (HDB) does not undertake any obligation to update
or revise any forward looking statements. Accordingly, readers are cautioned not to
place undue reliance on forward looking statements, which speak only as of the date on
which they are made

This document is provided for informational purposes only. It does not constitute an
offer to sell or a solicitation of an offer to buy any securities or interests described within
it in any jurisdiction. We strongly advise potential investors to seek financial guidance
when determining whether an investment is appropriate to their needs

2
 Agenda
Historical overview

Business review

Financial review Stand Alone

Financial review Consolidated

Stock

CSR

Contact Us

3
 A progressing commercial bank with an
attractive real estate flavor; your window on
two sectors

4
Historical overview

5
Our Start
Egypts Housing & Development Bank was established
35 years ago; in 1979, as an arm of the Ministry of
Housing. At the time of its launch it had a clear mandate
to finance moderate housing units for Egyptians, while
also bridging the gap between supply and demand in the
nations real estate market.
By the late 1980s & 1990s HD Bank had already
successfully concluded many flagship developments,
which brought new housing units to many urban
communities and strategic investments in the countrys
northern coastal resorts.

6
Ownership Structure

Misr Insurance Co.

8%
22% 7% Misr Life Insurance Co.

New Urban Communities Authority

15%
30% Housing Fincance Fund

Egyptian Endowment Authouriy

11% 7%

Regional HNWI

Free Float

7
 Our Transformation
In 2003, Egyptian banking law 88 prohibited the existence of specialized banks
in Egypt, and HDB was restructured to become a conventional bank, with a new
management appointed. The bank nevertheless still owns several plots of land
which will be developed into commercial and residential projects for sale.
Management implemented a five-year plan to turnaround the bank in 2009, by
heavily investing in new IT systems, renovating its branch network and
increasing its marketing efforts. HDB currently has a branch network of 62
branches.
As a result we became:

A growing commercial bank in the Egyptian market.

Upgraded the human capital of quality to support the growth of both the
banking and real estate businesses.
New Bank products and Real Estate Projects continue to be the key at
increasing our growing client base & performance.

8
 Our Journey
1979 1993 2003 2006 2010 2013 2014

Founded in Introduction of Participation in

Continued Paid-in capital
1979 as a 2003: In 2006 stage I of the the CBE
growth of increased to
specialized Introduction provided an new IT system Mortgage
real estate integrated EGP 1.2bn Finance Initiative
entity for of new to streamline
investments banking through a for Medium &
real estate banking performance
1993: raised system to private Low Income
development law cater to the
paid-in placement and Housing
& retail sector
capital Bank portion through Increased
provision of restructured, HDB`s ESOP street visibility Increased street
housing units to EGP
increased Raised: paid- First time non- through visibility through
to different 54mn
focus on in capital Egyptians increased increased
sectors of the increased to
economy growth of core allowed branches, branches, ATMs
EGP 500mn
2000: raised banking through ownership of ATMs and and POS
paid-in business existing HDB shares; POS
Initial capital shareholders
of capital to Further their ownership Started the
EGP expansion in reached 20% restructuring of
EGP 18mn Increased real
122.3mn real estate In 2009 Hyde Park
Vitalized the estate
through development investment in Development
Registered corporate activities,
existing to be carried Hyde Park after using the
on Development identity investment
shareholders out through Equity Associate
EGX in 1983 campaign reached method
subsidiaries
EGP 912 mn

9
 Board of Directors

Chairman &
Managing Director
(Executive)

Fathy El Sebai

Vice MD For
Chairman & Engineering New Urban Egyptian Misr Housing Independent
Misr For Life Experienced
MD & Investments Communities Awkaf Insurance Financing Board
Insurance Members
(Executive) Affairs Organization Organization Company Fund Members
(Executive)

Essam Abou Mohamed

4 Members 2 Members 1 Member 1 Member 1 Member 2 Member 1 Members
Hamed El Alfi

10
Corporate Governance

Board composition: 3 Executives and 12 Non-Executives

5 Board Committees meeting on a regular basis, namely:
Audit Committee
Risk Committee
Remuneration Committee
Governance & Nomination Committee
Executive Committee
Investment Committee

Remuneration Committee comprised of the main shareholders and independent Board Members
Independence of Compliance, Internal Audit and Risk Management functions
Functioning Committees ensure that HDB Management fully complies with all regulatory requirements as
well as internal policies ensuring strict adherence to best practices with respect to clients, employees and
third parties dealings

11
 Our Organization Chart
Audit & Risk Committees

Audit Division

Chairman Compliance Division

Risk Division

Vice Chairman & MD Support Functions* MD For Engineering & Investments

Credit Finance

Marketing IT Investment Real Estate & Engineering

Treasury Legal Investment Real Estate Development

Financial Operations Human Resources Consultancy

Branches Strategy & Planning Asset Management

Administration

12
Business review

13
Our Business Model
Housing & Development Bank

Banking Business Investment Business Real Estate Business

Includes some subsidiaries & sister companies

HDB has direct and indirect ownership positions in 14 subsidiaries and sister companies;
total EGP 974 million as at end of Q2-2015 and ownerships range between 16% to 92%
with activities including:
Mortgage finance
Property development
Property management services
Insurance
Real estate development
Management of real estate funds
Leasing Finance

14
 Our HDBK Group Structure
Blue Line elaborate Bank Direct
Investment Housing & Development Bank Group
Red Line elaborate Holding Company
Investment

Housing & Development Co.

For Real Estate Investment Holding Co . For Investment &
38%
60% Ownership by HDBK Development
92% Ownership by HDBK
El-Tameer Co. For Mortgage Finance
24.80% Ownership by HDBK EL-Tameer Co. For Housing & Utilities
2% 35% Ownership by HDBK
Zayed City Edge
38% Ownership by HDBK 51%
El-Tameer Co. For Security & care services
51% 39% Ownership by HDBK
El-Tameer Co. For Asset Management
15.70% Ownership by HDBK 60% Tameer Co. for Real Estate Investment Development
76% 37% Ownership by HDBK

El-Tameer Co. For Real Estate Investment Funds 60%

El-Tameer Co. For Financial & Real Estate Marketing
24% Ownership by HDBK
39% Ownership by HDBK
31%
HD Company For Trading Securities
El-Tameer Co. For Technological services
20% Ownership by HDBK 51%
21% 40% Ownership by HDBK

Obelisk for investment fund management

30% Ownership by HDBK
18.2% Hyde Park Co. for Real Estate Development
36.90% Ownership by HDBK 15
 Our Equity Investments
Holding
Company For
Participation
Serial Company Name Value in EGP Investment & Value in EGP
%
Development
Participation %
1 * Holding Co . For Investment & Development 92.00% 365,000,000
Subsidiries
2 Housing & Development Co. For Real Estate Investment 60.00% 180,000,000 38.00% 114,000,000
3 EL-Tameer Co. For Housing & Utilities 35.00% 5,250,000
4 El-Tameer Co. For Mortgage Finance 24.80% 93,200,000
5 El-Tameer Co. For Asset Management 15.70% 942,000 51.00% 3,060,000
6 El-Tameer Co. For Security & care services 39.00% 1,521,000 51.00% 1,989,000
7 El-Tameer Co. For Real Estate Investment Funds 24.00% 2,400,000 76.00% 7,590,000
Sister
8 El-Tameer Co. For Financial & Real Estate Marketing 39.00% 2,178,158 60.00% 6,000,000
Companies
9 El-Tameer Co. For Technological services 40.00% 4,000,000 51.00% 5,100,000
10 Tameer Co. for Real Estate investment Development 37.00% 18,500,000 60.60% 121,345,300
11 HD Co . For trading securities 20.00% 10,000 31.00% 4,650,000
12 Obelisk for investment fund management 30.00% 10,000 21.00% 525,021
13 Zayed City Edge 38.00% 102,600,000 2% 10,800
Holding
Company For
Participation
Company Name Value in EGP Investment & Value in EGP
%
Development
Participation %

Equity 1 Hyde Park Real Estate Co. For Development 36.90% 198,622,250 18.20% 81,900,000

Total 974,233,408

16
HDB Financials

Based on the above HDB has 2 kinds of

financial:
1- Standalone Financials: which compromises of
the bank commercial activity & Real Estate that is
100% owned by bank.

2- Consolidated Financials: which compromises

of the bank standalone & all investment activity in
sister, subsidiaries and equity associates
companies.

17
 Real Estate Business Model
Two Real Estate Models within HDB:
Model One: Projects directly under HDB 100% ownership being sold only
after the total completion of construction and mainly for lands allocated to
the bank before the 2003 banking law.
Model Two: Projects that are owned by subsidiaries that are sold off Plan or
during the construction phase.
In both Models revenue is recognized & recorded upon delivery of units.
Ready to Sell Units across Projects 100% Owned by HDBK 30/6/2015
Total Number of Available Units
Project Name Description Segment Sold Units
Units for Sale
October - El Montazah - Phase 1 Residential Middle 240 232 8
New Cairo - Acacia - Phase 1 Residential Upper Middle 220 218 2
Ganat El Obour Residential & Commercial Economic 1620 1490 130
6 October Project - Phae 2 and 3 Residential Middle 660 99 561
El Arish City Residential Economic 184 4 180
Qena Governerate Residential Economic 162 140 22
New Cairo - Acacia - Phase 2&3 Residential Upper Middle 593 25 568
Administrative Building Plot 28 Office Upper Middle Leasing Leasing
Diffierient Sites Residential & Commercial 63 1 62
3742 2209 1533

* All sales will be done at current market prices 18

Potential Upside of Revenue
& Profit
Land Bank Owned by HDB 30 June 2015 **
Land Area Sq.
Cost in EGP
Item m
Ganat El Obour El Obour 198,362 5,000
6 October Project El Montazah - Phase 2 and 3 1,011,150 4,815
New Cairo - Acacia - Phase 2&3 29,669,123 6,800
New Cairo - Plot 31 31,778,193 108,072
Hurgada - Red Sea Land 5,822,504 6,150
El Koroum Street Land Number 24 - Office Building 17,257,185 750
Helwan Land 120,757,906 105,000
Total 206,494,423 236,587

Work In Progress As of 30 June 2015 **

Project Name Number of Units Type of Units Cost in EGP
Qenna Governorate 90 Apartments 9,361,901
New Cairo -5th Settlement - El Safa 95 Villas 113,166,181
Hurgada Governerate 174 Challet 14,237,424
Mix of products
Different Sites 304 including Shops 11,783,078
Total 663 148,548,584

** All sales will be done at current market prices 19

Years in Review

Item Break Down 2009 2013 2014

Revenue breakdown Banking EGP Million 930 1,251 1,322
Real Estate EGP Million 142 466 381

Deposits EGP Million 6,500+1200*** 8,800+1000*** 15,145+1000***

Loans EGP Million 6,800 6,400 7,100

Real Estate Activity Land meters squared 837,459 3,811,600** 472,000

BUA meters squared 328,447 2,900,000 662,947

Investment Activity EGP Million 399 912 912

Human Capital Spending 2503 employees EGP Million 1.7 4 2.03

Share Holders Equity Standalone EGP Million 1,070 2,100 2,200

Consolidated EGP Million 1,600 3,600 2,800

Total Assets Standalone EGP Million 17,800 24,900 23,030

* Consolidated including minority interest

** Includes 3.3 million sqm in Hyde Park
20
*** Subsidized Loan by CBE
What We Aim For

Our Vision
To be within the five top ranked banks in Egypt, with
direct involvement in the real estate business to both
boost our financial performance and continue
profitably to asset-back our banking business
Our Mission
Through the continuous upgrade of our human capital
we strive to excel in providing our clients, both in
banking and real estate, with an outstanding level of
services and innovative products

21
Our Strategy
Capitalize On Our Housing Reputation To Attract
New Clients Into Our Banking Business

Capitalize on our reputation and experience in

Accelerate providing full range of housing and property
Overall development services to attract new retail and
Banking corporate costumers to our banking services;
Growth
marketing efforts
Capitalize On
Our Housing Increasing Customer Base
Provide Reputation
Integrated To Attract Enhance corporate lending, increase retail financing
Real Estate New Clients whether through retail loans, mortgage finance or
Services Into Our
Banking credit card business. Improve client access through
Business increased street visibility, introducing a wider variety of
HDB short, medium and long term saving schemes
Strategy Provide Integrated Real Estate Services

Construction and sale of housing units through

affiliated companies
Continued Increase
Customer Customer
Provide real estate financing
Satisfaction Base Supervision of implementation of housing projects
Real estate business appraisal
Maximize
Continued Customer Satisfaction
Profitability
Introducing new products to capture targeted growth
in both banking and real estate business

22
 Our Products Range

Retail Products Corporate Products Real Estate Products

Current accounts Credit facilities Real estate financing

Trade finance Real estate investment &

Saving products development
Limited investment banking
Loan products
services Construction of housing units*
Debit/Credit /Prepaid Cards e-payments
Supervision of implementation
Life insurance services Financing customs & taxes of the projects owned by HDB &
others
Safe deposit boxes Specialized services to SMEs
Business appraisal and
Payroll services Treasury & cash management feasibility studies*

Vodafone cash Real Estate consulting and

engineering services*
Housing installment and e-
payments

* Through HDBs subsidiaries & affiliates 23

Our Way Forward
New core banking IT
system allows handling
of increased more
complex products and a
greater client base
Increasing planned
branch network set to
capture a greater
portion of retail
business to reach 100
branches by end of 2017
Low loan/deposit ratio
coupled with the recent
capital increase allowing
for increased and varied
lending opportunities

Hidden equity; around

3.25 million sqm of Trading at Price to Book
undeveloped land of around 1 & Price to
carried at an average earnings of around 7
cost of EGP 1,317/sqm

HIGH GROWTH PROSPECTS OVER THE NEXT FIVE YEARS

24
Financial Review Stand Alone

25
Our Bank Financial Snap Shot

Standalone Financial Position***

30 June 2015(EGP million)
Total Loans 7,575

Total Deposits 10,682

Total Revenue
1,189
Net Operating Margin 51%

Net Profit After Tax 322

NPL/Total Loans 5.4%

Cost/ Income Ratio 62%

Tier 1 capital Basel I 22.84%

Tier 1 capital Basel II 17.91%

26
Our Bank Financial Snap Shot
EGP million Paid In Capital
1400
1,265 1,265

1200 1,150 1,150 1,150 1,150

1000

800
670

600

400

200

0
2009 2010 2011 2012 2013 2014 Q1-2015

Total Number of Issued Shares is 126 million with a book Value of EGP 10
HDB is listed & traded on the Egyptian Stock Exchange (EGX)
Last Div. / Ex. Date EGP1.50 on 22 Apr 2015
Est. Free Float 21.4%
Bonus share issue announced April 2014 at a rate of 0.1% of paid up capital
Bonus Share Distributed on 12th January 2015

27
Our Bank Visibility
180

152 156 156

160

140
118 120
120 114

98
100

80
58 59 59 61 62 62
60 55

40
64 64 65 65 68 68 68
20

0
2009 2010 2011 2012 2013 2014 Q1-2015

Branches P.O.S A.T.M

2009 Q2- 2015

Footprint 55 Branches, 98 ATMs, 64 POS 62 Branches, 152 ATMs, 68 POS

28
Our Bank Stand Alone Financial Snap Shot

30% Capital Adequacy Ratio 35% Return on Assets & Equity

25.5% 25.2%
24.2% 24.2% 23.7% 29.1%
25% 22.84% 30%

20% 25%
20.6% 19.8% 20%
13.7% 18.6% Capital increase: 15.8% 16.2%
15% 17.91%
EGP500mn to 13.2%
15% 11.8%
EGP1.2bn
11.2%
10% 9.4%
10%
5% 5% 2.3% 1.6% 1.3% 1.7% 1.7% 1.4% 1.2%
0% 0%
2009 2010 2011 2012 2013 2014 Q2-2015 2009 2010 2011 2012 2013 2014 Q2 -2015

Tier 1 Capital to Basel I Tier 1 Capital to Basel II Return on equity Return on assts
EGP million
Net Operating Margins & Cost to Income Ratios 2,000 Net Profit 1,770
1,800
80% Unusually high TB 75.3% 1,546 1,537
rates & auction 1,600
75%
land sales distort 1,400 1,332
70% ratios 1,242 1,265 1,244
65.1% 1,146 1,202 1,195
65% 62.9% 61.3% 62.0% 1,200 1,062
60.0% 1,012
60% 1,000 882
55% 52.9% 743
51.0% 800
50% 47.1%
600 264 230 438
302 335 451
45% 42.0% 203
40.0% 400 306 322
38.7% 244 247
40% 34.9% 37.1% 203 176 206
200
35%
30% 0
2009 2010 2011 2012 2013 2014 Q2 -2015 2009 2010 2011 2012 2013 2014 Q2 -2015
Total Revenue Total expenses
Net operating margins Cost / Income ratio
Net profit before tax Net profit After tax

29
Our Bank Stand Alone Financial Snap Shot
EGP million
Development of Assets
30,000

26,327

414
25,000 1,058

21,250
5,035
360
20,000 1,056

14,592 4,322
14,037
6,949
15,000 12,657 13,004 235
278 1,004
904 366
10,619 447
630 2,095 944 2,570 6,514

10,000 374 2,282 2,195

390
1,822
6,646 6,023
5,760 12,710
6,563
5,000 5,792
8,835

3,981 4,607
3,584
2,149 2,622
0
2009 2010 2011 2012 2013 2014 Q2 - 2015

Cash,Mkt.Securities&T-Bills Net Loans Investments Real Estate Activity Fixed Assets Other
30
Our Bank Stand Alone Financial Snap Shot
Total Liabilities & Shareholders Equity
EGP million

30,000

26,327

25,000
21,250

9674
20,000

6903
14,037 14,592 1039
13,004
15,000 12,657 1265
1,400 982 1969
1,891 442 963 1265
10617 503 938
870 904 1,150 1192 1518
1,150 1,150 1,150 896
10,000 426
414 886 1282
670 957 980 1,310
745 1,671 1,553 1,455
1,796

5,000 10862
8,869 9626
7,505 7,558 8,134
6,568

0
2009 2010 2011 2012 2013 2014 Q2-2015
Customer Deposits Long Term Loans (incl.subsidised) Other

Paid In Capital Reserves & Retained earnings Down Payments - Real Estate

31
Our Bank Stand Alone Financial Snap Shot
Loans To Deposits Raito
68% 12000 EGP Million
66.9% 10,682
66%
9,626 10000
8,869
64%
8,134
7,505 7,558 8000
62% 61.3% 62.1% 61.7%
6,568 Total Loans excluding
59.5%
subsidized loans
60% 60.2% 6000
58.2%
6,587 Total Deposits
5,978
58%
4000
Loans to Deposits Ratio
56%
4,939 4,734 5,278
4,518 4,636
2000
54%

52% 0
2009 2010 2011 2012 2013 2014 Q2-2015
EGP million
8,000 Development of Loans
6,988 7,100 7,100 7,575
17
16 6,362 6,588 16
7,000 6,189 16
17 1,965
26 1,523 1,534 17 1,691
6,000
1,525 1,617
1,318
5,000
Credit cards Mortgage
2,202 2,290
4,000 2,613 2,842
1,746 2,123
2,118
3,000
Retail Corporate
2,000
3,099 3,248 3,260
2,702 2,831 2,780 2,750
1,000

0
2009 2010 2011 2012 2013 2014 Q2-2015

Steady growth in both corporate and retail loans 32

With loan to deposit ratio still remaining low, there is room for the planned growth in the loan portfolio
Our Bank Stand Alone Financial Snap Shot

NPLs to Total Loans EGP million 500 EGP million Non-Performing Loans
8% ,6362 7,575 8000 450
6,989 7,100 ,6588 7,100 111.3% 105.2% 103.9%
7% 6.8% 7000 400
6,189
350
6% 6000 86.8%
300
5% 5.9% 5000
5.4% 111.2%
3.9% 250
5.4% 112.1% 113.5%
4% 3.9% 3.5% 4000 433 435
200 391 404
384 403
388
376
3% 3000 150 309
268 278 278
239 245
2% 2000 100

1% 433 391 386 1000 50

239 245 278 385
0
0% 0
2009 2010 2011 2012 2013 2014 Q2-2015
2009 2010 2011 2012 2013 2014 Q2-2015
Total Loans Non-Performing Loans Non-Performing Loans Non-Performing Loans Coverage
Non-Performing to Total Loans Coverage %
6%
Net Interest
5.6% Margin 14% EGP million Net Interest Income
4.7% 5.1% 12% 700
5% 584
4.8% 4.3% 4.3% 4.9%
10.6% 10.4% 10% 600
4% 11.0% 501
500 464.2
8%
6.2% 6.3% 392 394
3% 5.7% 5.8% 11.9% 6.1% 5.9%
400 349
5.3% 6% 300
2% 10.4% 10.1%
10.5% 4% 300
1% 2% 200

0% 0% 100
2009 2010 2011 2012 2013 2014 Q2-2015 0
Loans Deposits Net Interest Margins 2009 2010 2011 2012 2013 2014 Q2-2015

Quality of loan portfolio improving with NPLs fully covered

HDBs planned retail strategy is set to increase the net interest margins over the next five years
33
Our Bank Standalone Financials
Bank Standalone Financials 1/1/2014 till 30/6/2014 On 1/1/2015 till 30/6/2015
EGP million
50% 900.00
46.8%
44.8%
45% 783 41.9% 800.00

40% 37.9% 700.00

36.1%
35%
600.00
550 29.8%
30% 451
31.3%
500.00
25%
397
400.00
20% 322
300.00
15% 240
219
187
200.00
10%
95 99
5% 59 68 100.00

1.63 2.55
0% 0.00
Interest From Loans Net interest income Net fees and Housing projects' Net profit for the Net profit for the Earnings Per Share
& Similar Income commisions income profits year before taxes year

1/1/2015 - 30/6/2015 1/1/2014 - 30/6/2014 Y-o-Y

34
Our Bank Standalone Financials

Bank Standalone Financials 1/4/2015 till 30/6/2015 On 1/4/2014 till 30/6/2014

EGP million
50% 450
427 44.8%
42.8% 40.3%
41.2%
40% 400
33.0%
350
30%

286 300
20%
208 250
221
10%
200

0%
144
150
122 119
-10%
86 100

51 47
-20% 38 50
30
-23.7%
-30% 0
Interest From Loans Net interest income Net fees and Housing projects' Net profit for the Net profit for the
& Similar Income commisions income profits year before taxes year

1/4/2015 - 30/6/2015 1/4/2014 - 30/6/2014 Y-o-Y

35
Our Bank Net Profit Breakdown
1/1/2015 till 30/6/2015
Item Commercial Banking Activity Real Estate Activity
Total Revenue 979,136 210,801
Total Expenses 670,763 67,305
Net Profit Before Taxes 308,373 143,496
Taxes 87,937 41,885
Net Profit After Taxes 220,437 101,612

Amounts in EGP Million Total Net Profit 322,048

1,200,000

979,136
1,000,000

800,000
670,763

600,000

400,000 308,373
210,801 220,437
200,000 143,496
87,937 101,612
67,305 41,885
0
Total Revenue Total Expenses Net Profit Before Taxes Taxes Net Profit After Taxes

Commercial Banking Activity Real Estate Activity

36
 Our Bank Net Profit Breakdown
Full Year 2014 Vs. H1-2015

Full Year 2014 1/1/2015 Till 30/6/2015

Commercial Banking Commercial Banking
Item Activity Real Estate Activity Item Activity Real Estate Activity

Total Revenue 1,486,837 268,227 Total Revenue 979,136 210,801

Total Expenses 1,185,995 130,565 Total Expenses 670,763 67,305

Net Profit Before Taxes 300,842 137,662 Net Profit Before Taxes 308,373 143,496

Taxes 90,801 41,550 Taxes 87,937 41,885

Net Profit After Taxes 210,040 96,112 Net Profit After Taxes 220,437 101,612

Amounts in EGP Million Total Net Profit 306,152 Amounts in EGP Million Total Net Profit 322,048

37
Our Bank Participation in the CBE
Mortgage Finance Initiative
The Central Bank of Egypt (CBE) Launched this initiative in June 2014

This initiative states that Mortgage Finance is given to Medium and low income clients

The Medium income clients ceiling is EGP 500 Thousands for a unit

The low income clients ceiling is EGP 350 Thousands for a unit

The Total initiative amounts to EGP 10 Billion

Our Bank requested to participate in this initiative with EGP 2 Billion

The actual activity started in November 2014

Actual dispensed amounts till 30th June 2015 is EGP 400 Million to almost 5000
thousands clients

The spread that our bank receives is from 3.5% to 4.5% on actual amounts dispensed
38
Financial Review Consolidated

39
 Our Bank Consolidated Financials
EGP billion EGP billion Development of Liabilities & Net worth**
30 Development of Assets 28.25 30 28.25
1.12 24.9 2.800
24.9 23.03 2.00 23.03
25 25 22.3 22.1 1.265
22.3 22.1 2.9 2.4
2.700
20.3 1.15 5.04 20.3 1.2
1.3 2.0 2.0 2.3 1.265
20 17.8 1.76 20 17.8 1.9 1.2 1.2
1.2 2.400 10.634
4.30 1.5 1.2 7.6 1.300
0.9 8.8 9.2 0.7 7.0 5.8 1.282
6.94 15 5.4
15 8.2 9.2
5.2 2.2 1.40
7.5 6.54 2.2 1.518
1.4 1.9 10 1.9 2.3 2.7
10 1.8 1.4 2.1 2.4 2.3 2.5
1.4 1.8 15.086
6.5 5.8
5.6 12.90 5 8.8 10.630
5 5.6 6.3 7.5 7.5 8.1
9.12 6.5
4.2 3.8 5.0 0
2.3 2.7
0 2009 2010 2011 2012 2013 2014 Q1-2015
2009 2010 2011 2012 2013 2014 Q2-2015
Networth. Excl. Capital Paid In Capital
Other Fixed Assets
Down Payments - Real Estate Liabilities
Real Estate Activity Securiities
Long term loans * Customer deposits
Net loans Cash,Mkt.Securities&T-Bills
EGP billion
EGP billion
Development of Revenue 1,800 Development of Expenses1,573
2,500 1,600 1,473
1,960 1,400 1,128 262
1,074 311 203
2,000 1,860 1,871 1,200 895
1,472 368
1,277 1,284 381 1,000 154 347 908
142 469 466 1,201 182 335
1,500 185 243 105 277 193 144
187 59
93 135 800 224 135 163
387 92 165 187 36 40 211
1,000 71 13
80 600 27
69 87 141
400 149
1,239 1,178 1,204 559 597 627 661 698 685
500 874 934 1,004 200 384
794
0
0
2009 2010 2011 2012 2013 2014 Q2-2015
2009 2010 2011 2012 2013 2014 Q2-2015
Real Estate Activity Revenues Financial Investments Revenues Others Employee Costs
Fee And Commission Income Interest And Similar Income Income Taxes Expense Financial Investments Expenses
Fee And Commission Expense Interest And Similar Expense

*Assets have decreased because Hyde Park assets has been changed from a Subsidiary to a sister company
** Includes subsidized loans 40
*Overall total expenses came down as cost cutting initiatives and increased efficiency procedures came into play
Our Bank Consolidated Financials
EGP million EGP million
Operating Profit Margins Net Profit
60% 1400 700
51.6%
603 591
1200 600 568
50% 46.7%
522
40.7% 43.0% 476
37.5% 1000 500
40%
36.0% 36.1% 400
800
30%
1239 1178 1204 600 300 577 238
20% 934 1004 196
874 400 200 428
794 387 374
326
578 518
10% 480 410 200 100 203
315 337 377 156

0% 0 0
2009 2010 2011 2012 2013 2014 Q2-2015 2009 2010 2011 2012 2013 2014 Q2-2015

Total Operating Revenue Net Operating Income Operating Margins Net Profit Before Tax Net Profit After Tax

40% Equity Multiplier

35.8% Profitability Evaluation 16
35% 14.02
Capital increase: 14
30% 11.47
EGP500mn to
12 10.67
25% EGP1.2bn
10 9.10
20% 15.1%
13.7% 12.7% 8
15% 12.9% 5.66 5.83
10% 6
7.1% 5.2%
3.2% 1.8% 1.7% 4
5% 1.0% 0.7% 1.6% 1.20% 2.49
0% 2
2009 2010 2011 2012 2013 2014 Q2-2015 0
Return On Assets Return On Equity 2009 2010 2011 2012 2013 2014 Q2-2015

41
Our Stock

42
Our Bank Fact Sheet
Total Number of Issued Shares is 125,600,000 million with a book Value of
EGP 10
Last Div. / Ex. Date EGP1.00 on 14 Apr 2014
Bonus share issue announced April 2014 at a rate of 0.1% of paid up capital
Bonus Share Distribution Date on 12th January 2015
Last Cash Dividend distribution date was 22nd April 2015
Incorporation: Egypt

Sector: Banking & Financial Services

Full Listing: The Egyptian Exchange (EGX)

Issued Shares: 125,600,000

Free Float: 21.40%

Listing Date: 13th September 1983

Market Cap: Above EGP 3 Billion

52 Week High: 31.47

52 Week Low: 18.0

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 Our Stock Activity
30 28.6
27.47 27.1
28 27.02
26.5 26.6
25.89
26
24.28 24
24 23 23

22 20.68 20.99
20.16 19.88
20 18.98 19 19.41
18.24
18
16.22
15.7515.515.78 16
16 14.69
14.31 14.2814.114.51
13.95
14

12

10

Stock Data:
Bloomberg / Reuters: HDBK EY / HDBK.CA

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Dividend / Share
HDB has been distributing cash dividend on annual bases.
HDB in 2013 distributed cash dividend & Bonus share with 1:10 ratio
HDB Full Year 2014 cash dividend generate a Yield of 6%
HDB Coupon 34 was distributed on Wednesday 22nd April 2015 for
shareholders record on Sunday 19th April 2015.
HDB Pay Out Ratio for 2014 is 62%

Year 2009 2010 2011 2012 2013 2014

Dividend / Share 1.25 1 1.25 1.5 1 1.5

Payout Ratio
Dividend / Share 1.5
Total Shares 126,500,000
Attributable Net Income 189,750,000

Attributable Net Income 189,750,000

Net Profit 306,152,601
Pay Out Ratio 62%

45
Why HDB Stock?
HDB performance shows that there is a room for loan growth.
HDB continued efficiency efforts bringing down cost to income
ratios to that of the peer group.
HDB has the highest ROE and ROA amongst peers of similar size.
HDB has the highest cash dividend on the Egyptian market with a
high upside based on peer valuations.
HDB combination of real estate projects & commercial banking
activities has proven a solid element.
HDB investments in subsidiaries & sister companies that
complement the business model.

46
Analyst Coverage

HDBK is covered by the following coverage houses:

Entity Contact Person E-mail

EFG Hermes Elena Sanchez esanchez@efg-hermes.com
CI Capital Monsef Morsy Monsef.Morsy@cicapital.com.eg
Beltone Nancy Fahmy nfahmy@beltonefinancial.com
Beltone Ahmed El Shazly aelshazly@beltonefinancial.com
HC Monette Doss monette.doss@hc-si.com
Prime Heba Monir HMonir@Egy.primegroup.org
Arqaam Capital Shadi Salman shadi.salman@arqaamcapital.com

47
Our Bank CSR
Non-Governmental Organization & Non Profit Organizations:
Educational, Family and Society Development, Special Needs, Blind, Local Society
Development, Patient Coverage, Mothers & Infants Coverage and Social Help

Universities & Colleges:

Sponsoring Student Competition, workshops, Research & Development Projects &
Scholarship Hiring

Schools Activities:
Donation of Saving Passbooks to encourage students on saving, and a Housing
Saving Passbook to help them secure a residential unit when they reach 21 Years old.
Plus, Scholarships granted to super students until they graduate from universities too.

Talented:
Provide financial & Psychological support to Super Students

God Gifted Students:

Search for God Gifted Students across all ages & educational levels regardless it is
vocational or academic and provide support

48
Our Bank CSR
Governorates Activities:
Charity Projects & environmental projects that governorates & Cities need to upgrade
quality of people & it is done via Bank branches. (Example: street enhancements)

Hospitals Activities:
Sponsorship of Hospital units that look after children, Cancer, Liver, Kidney patients

Institutions & Organizations:

Entrepreneurship , Provide upgrade, maintain & development of schools, Cardio
Research & Development, Breast Cancer Awareness, Social Research & Development,
Misr El Khier Foundation and Sonaa El Hayat

Orphanages:
Provide support to Orphans & their families to complete education until university
graduate

Families:
Provide & distribute food supplies in rural and Slump areas based on needs and requests

Floods & Weather Rehab & Rescue:

Build housing units at El Arish and Aswan to shelter citizens who suffered or lost their
homes as a result of Floods or weather conditions
49
Our Bank CSR
Youth Graduate Sponsorships:
Plan training, secure jobs and conduct exhibitions for them

Small & Medium Size Contractors Sponsorship:

Prepare special training sessions with cooperation of the Social Fund for Development
(SFD) and granting them SMEs projects to manage & execute and monitoring them to
help them technical & Psychology & fund them when required

Small Manufactures & Technicians Support:

Buy & provide them the required materials to produce final products that the bank buy &
use in its projects

Support & Conduct Art Exhibitions across several domains:

Conduct Exhibitions, workshops and Seminars to Artists and welcoming celebrities in
across Art & Cultural aspects and domains to support Artists and even the bank buy
some pieces as a support to them to enhance spiritual & mental creativity

Young Creative Sponsorship :

Prepare exhibitions that is specialized to them and providing support & financial aid to
encourage them and push them to excel & continue in creativity

50
Contact Us

Mohamed Hamzawy
Strategic Planning & Investment Officer
Housing & Development Bank
Telephone : +2-02- 33357170 Direct Telephone: +2-02-33357327
Fax: +2-02-37627053 Mobile: +2-010-25000551
H/Q 26 El Koroum Street Mohandessian - Giza, Cairo Egypt
www.hdb-egy.com E-mail: mhamzawy@hdb-egy.com

Samir Soliman
Chief Finance Officer & Assistant CEO
Housing & Development Bank
Telephone : +2-02- 33357170 Direct Telephone: +2-02-33357327
Fax: +2-02-37627053 Mobile: +2-012-23467388
H/Q 26 El Batal Ahmed Abd Al Aziz Street Mohandessian - Giza, Cairo Egypt
www.hdb-egy.com E-mail: cfo@hdb-egy.com

51