Talaat Moustafa Group Holding · EGX:TMGH
Talaat Moustafa — 9M 2017 Earnings Presentation
49 slides from Talaat Moustafa's earnings presentation, September 2017
Slide 1: TMG Holding Investor Presentation – September 2017
TMG HOLDING INVESTOR PRESENTATION – SEPTEMBER 2017
Slide 2: Disclaimer
Disclaimer 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 results, performance or
Slide 3: Outline
Outline Ø 1- TMG Corporate Profile Ø 2- Market and Operational Review • TMG at a Glance. • Macroeconomic Indicators, Real Estate Drivers. • Financial and Operational Review, Hotels & • Projects Development, Achievements Resorts Operational Review. and Growth Prospects. • Share Data. Ø 3- Future Grow
Slide 4: 1. TMG Corporate Profile
1. TMG Corporate Profile • 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. Investor presentation 4
Slide 5: TMG at a Glance (TMGH.CA)
TMG at a Glance (TMGH.CA) • Different styles and size of units that cater to changes of income levels, average household size, life style and consumer preference. • Four operational large scale luxury hotel complexes including high-end residencies, shopping malls and office parks and soft launch of
Slide 6: Cities & Communities
CITES & COMMUNITIES 6
Slide 7: Hotels & Resorts
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Slide 8: Projects Development
Projects Development TMG Project Overview • Virgenia Beach • Al Rehab 1 ( phases: 1,2,3,4,5) • Al Rabwa 1 • Four Seasons Nile Plaza. Completed Projects • Four Seasons Sharm El Sheikh. • Al Rabwa Al Khadra • Kempinski Nile Hotel. • Four Seasons San Stefano • Mayfair • Madinaty • Al Rehab 1 ( phases 6
Slide 9: Achievements
Achievements 0.95% 0.48% 0.05% 0.37% 1.36% Break of Sold Unit 0.54% 0.18% 14.45% • Sold over 77.6 thousand residential units. • Developed over 9.6 MN SQM. residential BUA. 47.83% 34.13% • Sold 45.7% of Madinaty residential BUA, 97.6% of Al Rehab II and 99.7% of Al Rabwa II units. • Award winning ope
Slide 10: Growth Prospects
Growth Prospects Breakdown of Land Bank • Development rights of 45.4 MN SQM in Egypt . • Master development of 6 MN of quality land for strategic non-residential developers 9% for value creation and knowhow. • Sales backlog of EGP 28 BN to be delivered and recognized over next four years. • 1,780 ho
Slide 11: Share Data
Investor presentation Free Float 56.84% Share Data Shareholders Structure 43.16% Tourism TMG RE & Investment *Including Talaat Mostafa Family and Others 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 39
Slide 12: Board of Directors and Corporate Governance
Board of Directors and Corporate Governance Board of Directors • Executive and non-executive members with longstanding • Tarek Talaat Moustafa (Chairman) experience in real estate and construction in the MENA • Hisham Talaat Moustafa (CEO) region. • Hani Talaat Moustafa • Independent and non executi
Slide 13: Executive Management
Executive Management Managing Director & Vice Presidents • In addition to the board, the executive management of • Hisham Talaat Mostafa (Managing Director) the company is composed of 9 Vice Presidents. • Sherif Ghoneim – V.P. Sales and Marketing, Joined: 1993 • A number of committees including the
Slide 14: Business Partners
Business Partners • The Four Seasons and Kempiniski :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, Hyundai, Murray
Slide 15: Strategy and Business Model
Strategy and Business Model Geographical Integrated Integrated process capitalizing on brand diversification Development concept name, reputation and experience Stable and recurring Scale and Land bank income from In-house Top Class Reputable Operating assets positioning Centralized Designers and Bu
Slide 16: Quality Control and Advanced Operating Systems
Quality Control and Advanced Operating Systems • 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 managerial reporting,
Slide 17: 2. Market and Operational Review
2. Market and Operational Review • Macroeconomic Indicators • Real Estate Market Drivers • Financial Review • Consolidated Operational Review • Hotels & Resorts Operational Review Investor presentation 17
Slide 18: Macroeconomic Indicators
Macroeconomic Indicators • Real GDP growth was 3% during the (July, March) 2016-2017 compared to the same period last year; after changing the base year from 2006/2007 prices to 2011/2012 prices; • Net International Reserves reached US $ 36 BN at the end of August, 2017. • Annual headline inflation
Slide 19: Real Estate market drivers in Egypt
Real Estate market drivers in Egypt Population basics Graduates from local universities Annual marriage and divorce rates support long-term demand outlook Resident population at 95mn, as per latest census Public Institutes Private Marriages Divorces 6.0% CAGR Population growth at 5x that of develope
Slide 20: Real Estate market drivers in Egypt: remittances
Real Estate market drivers in Egypt Remittances exceed USD17bn per annum Remittances from expat population supportive to local property demand 6 Almost 1 in 10 Egyptians resides abroad, non-resident population at c10mn, 5 as per latest census 4 [USDbn] Over 2/3 of Egyptian expats visit the country a
Slide 21: Financial Review: 9M 2017 Key Figures
Financial Review 9M 2017 Key figures Assets Growth 80,000 • Total assets: EGP 72 BN 70,000 • Cash and cash equivalents: EGP 6.7 BN 60,000 • Total debt: EGP 5.7 BN 50,000 • A positive net Cash: 1 BN 40,000 • Debt to Equity Ratio: 1:5 30,000 20,000 10,000 - 1Q2008 4Q2008 4Q2009 4Q2011 4Q2012 4Q2013 4Q
Slide 22: Financial Review: Revenue Contribution
Financial Review Revenue Contribution 9M 2017 Quarterly revenue recognition Other Revenue 3,000 6% 2,750 Hotels 2,500 2,353 15% 2,250 1,977 2,000 1,750 1,500 1,286 1,250 1,000 750 Residential 500 79% 1Q2017 2Q2017 3Q2017 Consolidated revenue Investor presentation 22
Slide 23: Consolidated Operational Review
Consolidated Operational Review Revenue Contribution 9m 2017 Quarterly profits 1Q2017 2Q2017 3Q2017 9M2017 Revenues breakdown Revenues from units sold 956 1,609 1878.7 4,443 - 500 1,000 1,500 2,000 2,500 Revenues from Hotels 237 256 326.68 820 Other revenues 93 112 147.44 352 506 1Q2017 383 Total co
Slide 24: Hotels & Resorts Operational Review
Hotels & Resorts Operational Review ARR and Rev Par Nile Plaza 600 52% 60% 51% 300 550 55% Total Revenue (EGP Mn) 500 50% 250 450 45% 400 40% 200 350 35% GOP % 150 300 30% 281 250 456 25% 100 203 200 20% 141 150 321 15% 50 110 100 10% - 50 5% 0 0% 9m17 9m16 combined ARR 9m17 9m16 San Stefano Sharm E
Slide 25: 3. Future Growth
3. Future Growth • Real Estate Projects Progress. • Real Estate Future Growth. • Hotels and Resorts Future Growth. Investor presentation 25
Slide 26: 3. Future Growth
3. Future Growth Real Estate Development Hotels & Resorts • Capitalizing on land-bank in existing projects. • The target is to build a stock of 5,000 hotel rooms with a minimum IRR of 18%, and increase the • Master Development and sale of prime land plots; contribution of stable income to 35% of tot
Slide 27: Madinaty
MADINATY 27
Slide 28: Madinaty: development progress
Madinaty: development progress Key statistics Madinaty - % of Sold Residential BUA Location New Cairo Total land size (m2) 33,600,000 BUA to be dev. (m2) 20,856,908** Land for mega developments 7,450,380 Sold BUA Expected population 600,000 45.7% Commence date July 2006 Available for % of sold resid
Slide 29: Madinaty: development progress project description
Madinaty: development progress Project description • Mix-use community designed by three prominent American companies • Construction is to take place over 6 overlapping phases, each 3-4 years long • Intended residential BUA of 16.82 million m2 • In addition to business district, international hospit
Slide 30: Madinaty: progress to date (30-9-2017)
Madinaty: progress to date (30-9-2017) Updated Sep 30, 2017 Infra structure work Residential BUA work 12.5 MN m3 of digging and filling 21.25 MN m2 of Land levelling and roads preparation 2.30 MN tons of cement 8.85 MN m2 of roads levelling work 575 000 tons of steel 5.15 MN m2of base and sub base l
Slide 31: Madinaty Residential Units
MADINATY Residential Units 31
Slide 32: Madinaty Phase I
Madinaty Phase I Delivering residential units with completed community services Key statistics USE Area Fadden Gross Land Area m2 Built Up Area total units Zone 1 Apartment 266.5 1,119,300 1,111,754 6,524 Residential land area (m2) 9,358,440 Zone 2 Apartment 128.5 539,700 578,388 3,724 Facilities la
Slide 33: Madinaty Phase II
Madinaty Phase II Delivering residential units with completed community services Key statistics Phase 2 Residential Units to be Delivered Residential land area (m2) 3,135,300 Land Use Area / feddan Area / m2 Total BUA / m2 No. of Unit Facilities land area 315,810 Zone 3 Apartment 166 695,100 655,464
Slide 34: Madinaty Phase II services
Madinaty Phase II Delivering residential units with completed community services Services: Northern District Services: Southern District Other Facilities USE Area Fadden Gross Land Area m2 Gross Land USE Area Fadden Area m2 Land Use Area / Fadden Area / m2 Language School 6.59 27,668 Retail (Restaur
Slide 35: Madinaty Phase III
Madinaty Phase III Delivering residential units with completed community services Key statistics Services: District centre Phase 3 Residential Units to be Delivered Area / Total BUA No. of Residential land area (m2) 4,863,600 Land Use Area / Feddan Area / m2 Land Use Area / m2 feddan / m2 Unit Facil
Slide 36: Al Rehab
Al REHAB 36
Slide 37: Al Rehab Development Progress
Al Rehab Development Progress Key statistics* Al Rehab II - % of Sold Residential BUA Location: New Cairo, an extension to Al Rehab I 1. Rehab I / Rehab II 2.35% Total land size (m2) 9,900,400 Available Land size to be dev. (m2) 4,684,225 BUA to be dev. (m2) 2,839,834** Land for mega developments (m
Slide 38: Al Rawa
AL RAWA 38
Slide 39: Al Rabwa Development Progress
Al Rabwa Development Progress Key statistics* Al Rabwa II - % of Sold units Location: Sixth of October City an extension to Al Rabwa I 0.3% Available Total land size (m2) 2,137,828 Land size to be dev. (m2) 819,028 (Al Rabwa II) BUA to be dev. (m2) 129,748 (Al Rabwa II) Expected population 4,965 99.
Slide 40: Real Estate Future Growth: Capitalise on Land with unrecognized value
Real Estate Future Growth: Capitalise on Land with unrecognized value 2010 2012 – 2022 2012 – 2022 Estimated land sale of Delivery of residential units Master development and sale 500ksqm/annum at an completed with facilities and of SQM 8.14 MN land plots in estimated selling price of infra structur
Slide 41: Real Estate Future Growth: Location of Land
Real Estate Future Growth: Location of Land with unrecognized value Al Rehab Madinaty Investor presentation 41
Slide 42: Hotels & Resorts Future Growth
Hotels & Resorts Future Growth: Business line Diversification to increase the contribution of stable 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 to achieve target
Slide 43: Build-up of 2,655 hotel rooms
Build-up of 2,655 hotel rooms 2023 2022 TMG Building Operational: 875 rooms / keys 2021 Four Seasons Hotel Under development: 1,780 rooms / key 2020 Luxor Marsa Alam Four 2019 Seasons Four Madinaty 2010 Seasons Sharm 2007 Kepminski Extension 2004 Nile Hotel San Stefano 2001 Nile Plaza Four Seasons S
Slide 44: Upcoming projects
Upcoming projects Open Air Mall Development Progress Consists of 9 Buildings • To be developed over 3 phases Design was made by • Opening target date 2018 -2020 F+A architects Land area: 404k SQM BUA: 116k SQM Four Seasons Sharm Extension Development Progress Rooms/ keys : 99 • Purchased land. Resid
Slide 45: Upcoming projects
Upcoming projects Four Seasons Luxor Development Progress • Signed concession agreement. Rooms/ keys: 201 • Finished design. Operator: Four Seasons Land area 20k SQM • Issued licenses and permits. BUA: 43k SQM • Appointed four seasons management company. • Floated tender documents. Four Seasons Madi
Slide 46: Upcoming projects
Upcoming projects Marsa Alam Development Progress Rooms/ keys :1000 • Purchased land Residential properties: 2250 • Finished design phase one : 474 units • Obtained TDA approval Land area 3.2 MN SQM • Issued licenses and permits BUA: 390k SQM Madinaty Medical City Development Progress Rooms/ beds:45
Slide 47: 4. Investment Considerations
4. Investment Considerations Real Market need Concept and selling features Experience and Track Record Integrated low risk, self finance Business Model Investment Considerations Diversified products and markets Guaranteed revenue and profitability (sales backlog) Healthy financial Position High Grow
Slide 48: Risks and Mitigates
Risks and Mitigates Risks Mitigates Entry barriers to prospective new comers: Competition from new entrants • Integrated Business Model. • First mover advantage. • A diversified growth plan with no over-dependence on one revenue Failure to achieve overall growth segment.; Revenue growth in one segme
Slide 49: Thank You
Hk SLE | Thank You TMG Holding
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