Talaat Moustafa Group Holding · EGX:TMGH
Talaat Moustafa — Investor Presentation (January 2019)
20 slides from Talaat Moustafa's investor presentation, January 2019
Slide 1: Strategy Presentation January 2019
STRATEGY PRESENTATION JANUARY 2019
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: TMG at a glance as at end-2018
TMG at a glance [TMGH.CA/TMGH EY] as at end-2018 MENA’s leading developer(5) c90k+ units delivered 875 operational hotel #1 Egyptian RE developer 86k+ / 5k units sold rooms by market cap (since inception, including ministry units) (since inception / 2018 only) Highest cumulative deliveries by a 443
Slide 4: We continue to deliver on our key strategic priorities
We continue to deliver on our key strategic priorities previously communicated to the market New sales [EGPbn] Backlog [EGPbn] 41.6 21.3 30.0 Achieving robust growth in sales 13.1 2017 2018 2017 2018 The Group invested EGP1bn to Hospitality EBITDA [EGPmn] increase its stake in ICON to 83.3% Continue
Slide 5: Strategic vision allowed early foothold in rapidly urbanizing East Cairo
Strategic vision allowed for early foothold in rapidly urbanizing East Cairo Population: 30k Population: 1.5mn Population: 4.5mn Expected population: 10mn Investor presentation 5
Slide 6: Case in point: successful launch of Celia
Case in point: successful launch of Celia – a testament to the strength of TMG brand Major corporate revamp since July 2017 - Sales status end-2018 unmatched brand equity of TMG in the Egyptian 100% 500 feddans 1.03mn sqm market 80% Celia land area Total residential area 3,778 658 Celia is a new mix
Slide 7: We are on track to achieve all-time high sales
We are on track to achieve all-time high sales ■ We are benefiting from constant population build-up in our projects, allowing us to monetize our recurring income assets which has a positive impact on our gross profit. EGPbn Evolution of total presales across our projects 25.0 13.9 0.7 3.1 2.0 3.5 5
Slide 8: Exceptional performance outperforming all peers; demand/supply gap still exists
Exceptional Performance in 2H2017 and 2018 outperforming all peers – demand / supply gap in market still exists Sales of other market players(1) [EGPbn] Units delivered in 2017(1) Annual supply by Tier 1 listed 8.6 9.8 12.0 9.1 developers still well below our estimates of market demand 1,386(2) by m
Slide 9: Continue investing in hotel portfolio
Continue investing in hotel portfolio – significant improvement across all KPIs Four Seasons Sharm El Sheikh Four Seasons Nile Plaza, Cairo [200 keys, opened 2001] [366 keys, opened 2004] Hospitality segment performance 1,800 60% 1,600 50% 1,400 1,200 40% EGPmn 1,000 30% 800 600 20% 400 10% 200 1,12
Slide 10: Significant improvement across hotel KPIs
Significant improvement across hotel KPIs Four Seasons Nile Plaza KPIs Kempinski Nile Hotel KPIs ARR Occupancy (RHS) EBITDA EBITDA margin (RHS) ARR Occupancy (RHS) EBITDA EBITDA margin (RHS) 76% 56.6% 350 80% 600 52.2% 60% 140 100% 80 58.8% 70% 65% 46.7% 81% 300 500 50% 135 73% 60% 54% 63% 80% 250 6
Slide 11: Continue building our recurring income portfolio: hotels
Continue building our recurring income portfolio – target 40-45% of consolidated gross profit Revenue and occupancy rate Hotel rooms evolution 68% 1,800 1,318 58% 346 1,600 1,400 97 1,200 875 EGPmn 1,000 800 +45% y-o-y 600 400 200 1,123 1,625 0 2017 2018 2018 1H2 020 FS Sharm El Sheikh Ext. Dec-2021
Slide 12: Continue building our recurring income portfolio: retail and clubs
Continue building our recurring income portfolio – target 40-45% of consolidated gross profit Retail GLA Club memberships 140 250 120 200 100 k memberships 80 88 k sqm 150 60 127.5 152 40 100 197 20 40 50 0 Leased GLA Mall of Madinaty opening Total GLA 45 (start operations in 0 2019)** Sold membersh
Slide 13: Maintain robust growth in sales in existing projects
Maintain robust growth in sales in existing projects The Spine(1) Fully integrated residential complex including retail, leisure, hospitality, and offices designed to international standards 2.7mn sqm land area 4.5mn sqm total BuA(2) 13 years of development Downtown 2.3mn sqm of residential BuA Civi
Slide 14: Continue building our recurring income portfolio
Continue building our recurring income portfolio – target 40-45% of consolidated gross profit The Spine(1) 400k sqm of retail portfolio 35:65% / BTS:BTL 635k sqm of office GLA 25:75% / BTS:BTL 600+ hotel keys to be managed by operators Uptown Note (1): Areas subject to change as per the final master
Slide 15: Maintain robust growth in sales in existing projects
Maintain robust growth in sales in existing projects ■ EGP12.5bn of net cash flow from backlog and ■ EGP41.6bn of backlog Historical sales delivered units ■ Avg. gross profit margin 30%-35% ■ Land bank sufficient for the next 17 years ■ 12.5mn sqm ■ Sell all remaining units in Alrehab and Unlaunched
Slide 16: On track with our monetization plan
On track with our monetization plan Education alliance between TMG Holding, GEMS Education and EFG Hermes ■ In line with our previously announced strategy, the company has been successful in monetizing some of its non-core assets that were not captured by the market. ■ In May 2018, GEMS Education an
Slide 17: Monetize value of certain assets at the right timing
Monetize value of certain assets at the right timing ■ We believe that today the market does not ascribe value to most of our recurring income portfolio (namely hotels, retail, clubs, and non-residential land bank) which offers a significant long-term upside for equity investors Potential monetizati
Slide 18: Disciplined and selective land acquisition approach
Disciplined and selective land acquisition approach Strategic acquisition criteria Financial acquisition criteria ■ Large plots that allow for the development of urban ■ Preference towards cash acquisitions to manage communities targeting the middle to upper middle financial risk classes ■ Opportuni
Slide 19: Preserving capital appreciation while providing a dividend stream
Preserving capital appreciation while providing a dividend stream Net cash from contracted sales ■ cEGP12.5bn net cash flow pre-tax from backlog sales ■ 12.5 mn sqm (BuA) of BTS residential Net cash from future residential assets to be launched and sold in the Avg. sales price of at least EGP17k/sqm
Slide 20: Thank you
i Hie Thank you TMG Holding
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