Talaat Moustafa Group Holding · EGX:TMGH
Talaat Moustafa — Investor Presentation (March 2013)
36 slides from Talaat Moustafa's investor presentation, March 2013
Slide 1: Talaat Mostafa Group Holding Company Group Presentation
Company Logo Talaat Mostafa Group Holding Company Group Presentation March 2013
Slide 2: Safe Harbour Statement
Safe Harbour Statement Company Logo 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
Slide 3: Outline
Outline TMG Corporate Profile Company Logo TMG at a Glance Projects Development, Achievements and Growth Prospects Share Data Board of Directors and Corporate Governance, Executive Team and Business Partners Strategy and Business Model, Quality Control and Operating Systems Market and
Slide 4: TMG Corporate Profile
TMG Corporate Profile Company Logo TMG at a Glance Projects Development Achievements and Growth Prospects Share Data Board of Directors and Corporate Governance Executive Team and Business Partners Strategy and business model Quality Control and Operating Systems
Slide 5: TMG at a Glance
TMG TMG at a Glance A successful, over 20-year track record in which over 8.5 mn Company sqm of land was developed and over 60 thousand real estate Logo units with a BUA that exceeded 9.6 mn sqm were sold Strong management capabilities with 8 board members, 9 vice presidents, 3,000 employees and
Slide 6: TMG Projects Development
TMG Projects Development Company Logo 6
Slide 7: TMG Achievements and Growth Prospects
TMG Achievements Growth Prospects Company Logo Breakdown of Sold Units Breakdown of Land Bank 1.1% 2.5% 0.2% 0.5% 0.8% 2.8% 43.4% 48.7% •Development rights of 50 million sqm in Egypt and KSA • Developed 8.5 million sqm of land • Master development of 8.14 million sqm of quality land • Sold over 60 t
Slide 8: Share Data
TMG Share Data Company Shareholders Structure Share Performance Logo EGX RE INDEX TMG 250 240 Other major TMG RE & Tourism 230 shareholders Investment * 220 210 25.75% 50.27% 200 190 180 170 160 150 140 130 Other 120 110 shareholders 100 including free 90 float 80 70 60 23.98% 50 40 30 20 *Including
Slide 9: Board of Directors and Corporate Governance
TMG Board of Directors and Corporate Governance Company Logo Executive and non- Board of Directors executive members with longstanding experience in real estate and construction in the MENA Tarek Talaat Moustafa (Executive Chairman) region Hani Talaat Moustafa Independent and non executive members t
Slide 10: Executive Management
TMG Executive Management Company Logo In addition to the board, Executive Chairman and Vice Presidents the executive management of the company is composed of 9 Vice Presidents. Tarek Talaat Mostafa (Executive Chairman) A number of committees Sherif Ghoneim – V.P. Sales and Marketing, Joined: 1993 in
Slide 11: Business Partners
TMG Business Partners Company Logo The Four Seasons and Kempinski :internationally reputable management chains of our hotels Top class worldwide contractors, master planners, designers of projects components and execution: Main contractor for our completed projects as Joannou and paraskavides,
Slide 12: Strategy and Business Model
TMG Strategy and Business Model Company Logo Integrated Integrated process capitalizing on brand Geographical name, reputation and experience development diversification concept Stable and recurring Scale and income from Top Class Land bank positioning In-house Reputable Designers Operating assets C
Slide 13: Quality Control and Advanced Operating Systems
TMG Quality Control and Advanced Operating Systems Company Logo • 2007: Application of the SAP Enterprise Resources Planning System (ERP) on all functions of the Group Subsidiaries. The result is a smooth process integration between sales, accounting and treasury, with facilitated financial and mana
Slide 14: Market and Operational Review
Market and Operational Review Company Logo Macroeconomic Indicators Real Estate Market Drivers Financial Review Consolidated Operational Review Hotels & Resorts Operational Review
Slide 15: Macroeconomic Indicators
TMG Macroeconomic Indicators Company Logo Egypt has been witnessing major political changes following the revolution of January 25th 2011. Such changes are expected to make fundamental improvements in the transparency and efficiency of the economic performance and investment environment. However, as
Slide 16: Real Estate market drivers in Egypt
TMG Real Estate market drivers in Egypt Company Logo Growing population 84.5 mn population with 60% under the age of 30, and 600,000 new marriages per annum Urban and general population growing by 3.1% and 1.9%, respectively Growing middle to upper classes has created a growing demand for good
Slide 17: Financial Review
TMG Financial Review Company Revenue Contribution 12 M 2012 Logo 12 M 2012 Key figures Total assets: EGP 54.46 BN Cash and cash equivalents: EGP 2.15BN Other Revenue Residential Total debt: EGP 3.6 BN 4% 90% Debt to Equity Ratio: 1:7 Hotels 6% Assets Growth Quarterly revenue recognition 60,000 2,000
Slide 18: Consolidated Operational Review
TMG Consolidated Operational Review Company Logo Quarterly Review Quarterly profits - 50 100 150 200 250 300 350 400 EGP MN 1Q2012 1Q2013 EGP MN Revenues breakdown Revenues from units sold 1,184 1,364 327 Revenues from Hotels 87 96 Other revenues 32 62 1Q2012 207 Total consolidated revenue 1,303 1,5
Slide 19: Hotels & Resorts Operational Review
TMG Hotels & Resorts Operational Review Company Logo ARR and Rev Par Nile Plaza 70 50% 300 45% 250 60 38% 40% Total Revenue (EGP Mn) 200 50 32% 35% 30% 150 40 GOP % 237 252 25% 100 30 20% 50 86 91 20 40 15% 37 10% - 10 1Q12 1Q13 5% USD combined ARR combined Rev Par 0 0% 1Q12 1Q13 San Stefano Sharm E
Slide 20: Future Growth
Future Growth Company Logo Real Estate Projects Progress Real Estate Future Growth Hotels and Resorts Future Growth
Slide 21: Future Growth
TMG Future Growth Company Logo Real Estate Development Hotels and Resorts • Capitalizing on landbank in existing projects • The target is to build a stock of 5,000 hotel • Master Development and sale of prime land rooms with a minimum IRR of 18%, and plots; value created through project increase the
Slide 22: Madinaty: development progress
TMG Madinaty: development progress Company Logo Key statistics* Madinaty - % of Sold Residential BUA Location new Cairo Total land size (m2) 33,600,000 Land area to be dev. (m2) 33,600,000 Sold BUA to be dev. (m2) 20,856,908** BUA Land for mega developments 7,450,380 31% Available Expected populatio
Slide 23: Madinaty: progress to date
TMG Madinaty: progress to date Company Logo Infra structure work Residential BUA work 21 mn m2 of Land levelling and roads preparation 9.64 mn m3 of digging and filling 8.4 mn m2 of roads levelling work 2210 k tons of cement 3.98 mn m2of base and sub base layers 970 k tons of steel 285
Slide 24: Madinaty Phase I: delivery of residential units
TMG Madinaty Phase I: delivery of residential units with complete community services Company Logo Key statistics Phase I Residential Units to be Delivered Land area to be dev. (m2) 7,830,011 Residential land area 7,208,040 Land Use Area / feddan Area / m2 Total BUA / m2 No. of Unit Facilities land a
Slide 25: Al Rehab Development Progress
TMG Al Rehab Development Progress Company Logo Key statistics* Al Rehab II - % of Sold Residential BUA Location: New Cairo, an extension to Al Rehab I Total land size (m2) 9,900,400 Land size to be dev. (m2) 4,684,225 BUA to be dev. (m2) 2,839,834** Available Sold Land for mega developments (m2) 687
Slide 26: Al Rabwa Development Progress
TMG Al Rabwa Development Progress Company Logo Key statistics Al Rabwa II - % of Sold Units Location: Sixth of October City an extension to Rabwa I Total land size (m2) 2,137,828 Land size to be dev. (m2) 819,028 (Rabwa II) Available BUA to be dev. (m2) 119,071 for sale 25% Expected population 4,965
Slide 27: Real Estate Future Growth
TMG Real Estate Future Growth: Company Logo Capitalise on Land with unrecognized value 2012 – 2022 2010: 2012 – 2022 Delivery of residential units Master development and sale Estimated land sale of completed with facilities and of sqm 8.14 mn land plots in 500ksqm/annum at an infra structure in Reha
Slide 28: Location of Land with unrecognized value
TMG Real Estate Future Growth: Company Logo Location of Land with unrecognized value Al Rehab Madinaty 28
Slide 29: Hotels and Resorts Future Growth
TMG Hotels and Resorts Future Growth Business line Diversification to increase the contribution of stable Company Logo income to total revenue Targeted Future Growth Reach 5,000 hotel rooms with a minimum IRR of 18%, and increase the contribution of stable income to 35% of total revenue Steps taken
Slide 30: Build-up of 2,600 hotel rooms
TMG Build-up of 2,600 hotel rooms Company Logo 2016 Four 2016 Seasons Operational: 875 rooms / keys Madinaty TMG Building 2015 Hotel Under development: 1,725 rooms / key Marsa 2014 Alam Four 2014 Seasons Four Luxor Seasons 2010 Sharm Extension Kepminski Nile Hotel 2007 San Stefano 2004 Nile Plaza 20
Slide 31: Upcoming hotel projects
TMG Upcoming hotel projects Company Logo Kempinski Nile Hotel Development Progress Rooms/ keys :191 Hotel is complete Operator: Kempinski Sednawy Villa extension is being revamped Land area: 2 k sqm Appointed kempinski management company BUA: 19.8 k sqm Soft launch of operations July 2010 Fo
Slide 32: Upcoming hotel projects
TMG Upcoming hotel projects Company Logo Four Seasons Luxor Development Progress Signed concession agreement Rooms/ keys :201 Finished design Operator: Four Seasons Issued licenses and permits Land area 20 k sqm BUA: 43 k sqm Appointed four seasons management company Floated tender documen
Slide 33: Investment Considerations Risks and Mitigants
Company Logo Investment Considerations Risks and Mitigants
Slide 34: Investment Considerations
TMG Investment Considerations Company Logo Real Market need Concept and selling features Investment Considerations Experience and Track Record Integrated low risk, self finance Business Model Diversified products and markets Guaranteed revenue and profitability (sales backlog) Healthy financial Posi
Slide 35: Risks and Mitigants
TMG Risks and Mitigants Company Logo Risks Mitigants Entry barriers to prospective new comers: Competition from new • Integrated Business Model entrants • First mover advantage • A diversified growth plan with no over-dependence on one Failure to revenue segment.; Revenue growth in one segment is li
Slide 36: Thank you
Company Logo Thank you
Talaat Moustafa Group Holding — Investor Presentation (March 2013) on 6ix