Seera Holding Group · TADAWUL:1810
Seera — Al Tayyar Travel Group — Investor Presentation (December 2017)
36 slides from Seera's investor presentation, December 2017
Slide 1: Corporate Presentation
Corporate Presentation December 2017
Slide 2: Contents
Contents Overview: A leading travel & tourism company 3 Hospitality 8 Travel 14 Investments 25 Supporting Businesses 29 Financial Performance 32 2
Slide 3: A leading travel & tourism company
A leading travel & tourism company with a balanced portfolio of trusted brands that consistently exceed customer expectations
Slide 4: Adjusting to a shifting landscape
Adjusting to a shifting landscape Introduction Despite being the largest travel & tourism company in Saudi Arabia, ATG is Hospitality constantly monitoring emerging market trends and opportunities Travel Investments Supporting Businesses Financial TRENDS OPPORTUNITIES Performance Travelers increasin
Slide 5: Travel & Tourism Value Chain
Travel & Tourism Value Chain Introduction We will be selective about where in the sector we will deliver value Hospitality Travel LOGISTICS Investments INTERMEDIARY SERVICE DELIVERY Supporting & INFRASTRUCTURE Businesses Financial Performance • Infrastructure Providers • Traditional travel agent • D
Slide 6: Operational Consolidation
Operational Consolidation Introduction To best capitalize on market opportunities, we are organizing operations around Hospitality four core commercial focus areas Travel Investments Supporting FROM A GROUP OF NUMEROUS SUBSIDIARIES… …TO Businesses Financial 5 SBU’S 4 FOCUS AREAS Performance Traditio
Slide 7: Positioning for the Future
Positioning for the Future Introduction We know where we want to be by 2020 and are implementing the strategic Hospitality initiatives required to get us there transform, diversify and balance Travel TODAY STRATEGIC INITIATIVES TOMORROW: 2020 Investments Supporting Businesses Financial General Gener
Slide 8: Hospitality
Hospitality Supporting Financial Introduction Hospitality Travel Investments Businesses Performance
Slide 9: Al Tayyar Travel Group
Al Tayyar is leveraging its legacy business to successfully Travel Group reposition the Company through a balanced asset portfolio offering stable cash-flows and risk- adjusted returns 2
Slide 10: Hospitality: Overview
Hospitality: Overview ATG will deliver stable cash flows by capitalizing on the growth of Saudi Arabia’s tourism sector via the development and operation of mid-market hotels in the GCC Introduction Hospitality Travel Investments AT A GLANCE Supporting Businesses ACHIEVEMENTS 2 5 1,880 4bn Financial
Slide 11: Hospitality: Direct investments
Hospitality: Direct investments Introduction These assets are associated with globally recognized brands, strategically located Hospitality in Makkah and Jeddah - delivering stable, low volatility cashflow Travel Investments Supporting Businesses Benefits Financial Performance Global brand recogniti
Slide 12: Hospitality: Indirect Investment
Hospitality: Indirect Investment Introduction Our two ‘indirect assets’ will further increase steady cashflow, via off-balance sheet Hospitality financing, and will also enhance our liquidity profile Travel Investments Supporting Businesses ASSET 1: MID MARKET DEVELOPMENT FUND ASSET 2: REIT Financia
Slide 13: Hospitality: Minority Stakes
Hospitality: Minority Stakes Introduction Thakher will be one of the largest development projects in Makkah Hospitality Travel Investments Largest Direct 30% Phase 1 development 95 hotels and 8 residential investment Supporting acquisition – 323 sq/m size completed by Businesses project in apartment
Slide 14: Travel
Travel Supporting Financial Introduction Hospitality Travel Investments Businesses Performance
Slide 15: Al Tayyar Travel Group
Al Tayyar delivers travel and holiday solutions to its customers Travel Group across the MENA region and broader Muslim world through its travel service outlets and proprietary online travel platforms 2
Slide 16: Travel Services: Overview
Travel Services: Overview Introduction ATG’s Travel Services, a traditionally flagship business, will be refreshed, rebalanced Hospitality and redefined Travel Investments REFRESH REBALANCE REALIGN Supporting Businesses Financial Performance Leisure Tourism Government & Corporate Business Hajj & Umr
Slide 17: Travel Services: Market Assessment (1 of 2)
Travel Services: Market Assessment (1 of 2) Introduction There is huge untapped opportunity in KSA, especially in the Leisure segment Hospitality Travel Investments LEISURE1 CORP. & GOV.2 OTHERS3 Market Share OUTBOUND TRAVEL Supporting Businesses Financial 3-4% Performance SAR 8 Bn(6) Market Share T
Slide 18: Travel Services: Market Assessment (2 of 2)
Travel Services: Market Assessment (2 of 2) Introduction We estimate the Hajj & Umrah tourism market will grow five-fold by 2030 Hospitality Travel Investments Vision 2030 target is to host We estimate spend within KSA will Supporting Businesses 30Mn international pilgrims reach ~250Bn SAR in 2030 F
Slide 19: Travel Services: Leisure
Travel Services: Leisure Introduction Hospitality The transformation of the leisure business will be aligned with market trends Travel STRATEGY MARKET TRENDS Corporate Ventures Transform business to become market leader in Supporting Businesses Financial Performance customer satisfaction and service
Slide 20: Travel Services: Government & Corporate
Travel Services: Government & Corporate Introduction Defend the leadership position of the government business and grow the corporate Hospitality business Travel Investments Supporting STRATEGY MARKET TRENDS Businesses Financial Performance DEFEND Government Business GOVERNMENT ▪ Purchase order syst
Slide 21: Travel Services: Hajj & Umrah
Travel Services: Hajj & Umrah Introduction ATG is very well positioned to grow its religious tourism business Hospitality Travel Expected Ecosystem New Opportunities Investments Supporting Businesses ▪ All players (Pilgrims, External Agents, Umrah companies, and Financial Performance Service provide
Slide 22: Online Travel: Overview
Online Travel: Overview Introduction We are investing in a technology-enabled transformation towards being a full Hospitality service OTA that captures growth opportunities in our target markets Travel Corporate Ventures Supporting Since its inception, Online Businesses Strategy is to increase the A
Slide 23: Online Travel: Looking at the Market
Online Travel: Looking at the Market Introduction The online travel market is very attractive and continues to grow Hospitality Travel Investments Global Online Travel Market Revenue Middle East OTA Travel Market Share Supporting Is Growing Overall Of Total Is Growing Rapidly Businesses Financial $9
Slide 24: Online Travel: Real Growth Opportunity
Online Travel: Real Growth Opportunity Introduction By global standards, Saud Arabia holds much promise for online travel sales Hospitality Travel Investments Growth in online travel sales, 2013-2016 CAGR ($) Supporting OPPORTUNITIES Businesses Indonesia 40% Saudi Arabia 29% Financial UAE 27% Perfor
Slide 25: Investments
Investments Supporting Financial Introduction Hospitality Travel Investments Businesses Performance
Slide 26: Al Tayyar Travel Group
Al Tayyar manages a portfolio of other assets and Travel Group enterprises with significant upside potential and attractive valuation 2
Slide 27: Investments: Snapshot
Investments: Snapshot Introduction 22 investments grouped by 4 main clusters where ATG has a mix of minority, Hospitality majority and full ownership Travel Investments Supporting TRAVEL E-COMMERCE REAL ESTATE MOBILITY Businesses 18 ventures 2 ventures 1 ventures 1 venture Financial Performance Cond
Slide 28: Investments: Success Stories
Investments: Success Stories ATG has made some successful acquisitions by investing in businesses that have attractive returns & market scale Introduction Hospitality Travel Investments (Acquired in 2016) (Acquired stake in 2014) Supporting Businesses Financial Performance ▪ The Portman/Clarity comb
Slide 29: Supporting Businesses
Supporting Businesses Supporting Financial Introduction Hospitality Travel Investment Businesses Performance
Slide 30: Al Tayyar Travel Group
Al Tayyar invests in businesses that are complementary to the Company's core activities Travel Group and focuses on services that deliver stable returns and contribute shareholder value 2
Slide 31: Supporting Business: Car Rentals
Supporting Business: Car Rentals Major part of travel & tourism business, positioning for high growth in target segments Introduction Hospitality Travel Investments Supporting Revenues (SAR M) Target Market Businesses - Corporate leasing as companies Financial Performance +63% have become more cost-
Slide 32: Financial Performance
Financial Performance Corporate Supporting Financial Introduction Hospitality Travel Ventures Businesses Performance
Slide 33: Financial Performance
Financial Performance Introduction We are proactively addressing the need to change Hospitality Travel Investments Key Metrics Explanation Supporting Gross Sales & Gross Profit, (SAR Mn) Businesses 10,000 7,711 8,631 8,041 ▪ Economic slowdown Financial Performance ▪ Government austerity measures 5,0
Slide 34: Financial Performance: Q3 & 9M 2017
Financial Performance: Q3 & 9M 2017 Higher sales driven by OTAs; lower revenue because of a decline in the average commission of travel services Introduction Hospitality Travel Investments 5,980 Mn 6,438 Mn 2016 Supporting Gross 1,890 Mn 2,233 Mn 2017 Businesses Sales Financial Performance Q3 9M 1,6
Slide 35: Financial Performance: Q3 & 9M 2017
Financial Performance: Q3 & 9M 2017 Over the years we have expanded our balance sheet and will continue to optimize it in order to better capitalize on the opportunities emerging in the future Introduction Hospitality Travel Investments Total Assets Total Liabilities & Shareholder’s Equity Supportin
Slide 36: Al Tayyar Group
Al Tayyar Group www.altayyargroup.com
Al Tayyar Travel Group — Investor Presentation (December 2017) on 6ix