Tel Aviv Stock Exchange Ltd. · TASE:TASE
Tel Aviv Stock Exchange — Fattal Hotel Group — Investor Presentation (December 2022)
51 slides from Tel Aviv Stock Exchange's investor presentation, December 2022
Slide 1: Capital Market Presentation, December 2022
Capital Market Presentation, December 2022
Slide 2: Disclaimer
Disclaimer This presentation is not the Company’s offer of securities to the public and should not be interpreted as an offer of securities to the public. The presentation constitutes the Company’s principal and marketing presentation. The information included in this presentation and any other info
Slide 3: Fattal Group Business Card
Fattal Group Business Card 253 47,000 Hotels Rooms The Company Israel’s largest Fast growth in was established and leading Europe. More than 20 NIS 0.7 billion in 1998 by Mr. hotel chain 150 destinations David Fattal across Europe Countries Cash balances on the signing date of the report Including f
Slide 4: Number of Hotels
Number of Hotels1 Number of hotels by Rights Europe - 09.22 53 Total 68 8 125 3 Ownership 115 Israel - 09.22 35 Lease Total 22 Management 60 130 3 UK & Ireland - 09.22 15 Total 39 54 214 Other - 09.22 10 Total 1 12 1 09/2022 Active hotels Ownership Lease Management 1 As of 30.09.22 including 19 futu
Slide 5: Q3 The Best Quarter in the Company's History
Q3 The Best Quarter in the Company’s History in a Growing Tourism Market Total 1,361M Total 877M Total 1,407M 692 692 618 The chain's occupancy 557 577 81.6% 543 rates reached 370 261 97 1.8 692 ADR -70 2019 2021 2022 NIS billion NIS million We surpassed Revenues1 EBITDAR1 2019 Q1 Q2 Q3 Q1 Q2 Q3 Q1
Slide 6: What will we talk about today?
What will we talk about today? The Company’s Successful Handling of the Covid-19 Crisis The Industry’s Return to an Increased Working Pace Growth The Company’s Financial Results – 30.09.22 Challenges and Solutions – Work Force | Energy | Cost of Living Debt and Leverage Ratios in a Growing Company W
Slide 7: The Company's Successful Handling of the Covid-19 Crisis
The Company’s Successful Handling of the Covid-19 Crisis 7
Slide 8: Chain Occupancy Rates by Months - a Roller Coaster
Chain Occupancy Rates by Months - a Roller Coaster 2020-2022 COVID-19 81.6% 79.6% 80.6% 81.3% 75.5% 67.7% 69.6% 77% 66.3% 61.7% 63.0% 60.1% 57.9% 48.6% 46.6% 46.1% 41.8% 35.9% 33.8% 28.9% 31.1% 25.7% 26.7% 23.9% 18.5% 14.8% 15.9% 13.3% 9.7% 11.1% 4.9% 2.3% average 1 2019 average occupancy rates. 8
Slide 9: Responsible Management Throughout the Crisis
Covid-19 Responsible Management Throughout the Crisis Pandemic Actions Taken During Covid-19 State-guaranteed loans: Improvement of hotels’ Europe: approx. EUR 67 million 2019-2022 operational efficiency (approx. NIS 260 million) Israel: approx. NIS 134 million Stock market operations: Grants receiv
Slide 10: Opportunities in the Face of Crisis - GRANGE HOTELS
Opportunities in the Face of Crisis - GRANGE HOTELS Phase 1 Phase 2 Phase 3 Phase 4 March 2019 Hotel renovation 2020 - 11/2020-7/2021 Lease Agreement – 25 Years Owner participation- The COVID-19 pandemic No rent income => owners indebted to 4 HOTELS, LONDON £35M Hotels closed financial entities. 1,3
Slide 11: The Industry's Return to an Increased Working Pace
The Industry’s Return to an Increased Working Pace 11
Slide 12: Tourism Market Trends
Tourism Market Trends Change in perception - The world's Tourism is no Cities as holiday experiences fastest-growing B-Leisure longer a luxury centers preferred over industry savings Construction Customers that Significant Baby Boomers Globalization costs - increase in have not yet slowdown in asset
Slide 13: Global Tourism Is Back
Global Tourism Is Back International tourists (in millions)1 Tourists entering Israel (in millions)2 4.6 4.1 1,466 1,403 3.6 1,329 1,241 1,193 3 1,095 1,141 1,0003 2.9 2.9 2.9 1,043 2.8 2.53 September – September 705 1.8 2022 2022 446 0.8 September – 0.4 303 September 2021 0.2 2021 2012 2013 2014 20
Slide 14: Fattal Hotel Group on the Map – Countries
Fattal Hotel Group on the Map 1 – 20 Countries 6 49 The UK, Wales Ireland and Scotland 14 The Netherlands 2 4 253 Belgium 64 Poland Hotels Germany 1 Czech Republic 3 10 Switzerland Austria 2 Hungary 09/2022 1 2 5 Italy Romania 214 Active Hotels 17 Portugal Spain 4 8 Greece Cyprus 61 Israel 1 Includi
Slide 15: Occupancy and Revenue – Guests Return to Hotels
Occupancy and Revenue – 2019-2022 Guests Return to Hotels Occupancy by month Quarterly revenue – 85.3% ( NIS million) Record 83.0% 81.8% 83.6% 82.0% 79.7% 78.1% quarterly 77.2% 72% 73.2% 79.6% 81.6% 80.6% 81.3% results 69.2% 76.2% 77.2% 67.7% 66% 72.5% 62.4% 69.6% 66.3% 66.5% 60.1% 63.0% 61.7% 57.9%
Slide 16: Increase in Average Daily Revenue per Room (ADR) Q3
Increase in Average Daily Revenue per Room1 (ADR2) Q3 Dealing With the Effects of Inflation and Rising Expenses 14.6% 18.6% 13.3% 28.3% 2019>2022 2019>2022 2019>2022 2019>2022 ₪1,248 € 140 £137 ₪1,146 € 195 £121 € 118 ₪1,000 £113 € 104 € 152 € 146 2019 2021 2022 2019 2021 2022 2019 2021 2022 2019 20
Slide 17: Growth
Growth 17
Slide 18: The Group's Strategy Moving Forward
The Group’s Strategy Moving Forward Increase activity in high-demand areas while maintaining high return rates. Collaborate to reduce risk and increase expansion options Maintain the company’s stable leverage over time with an emphasis on strong cash flow Continued hotel improvements and solidificat
Slide 19: Looking Ahead - Opening Hotels in the Coming Years
Looking Ahead - Opening Hotels in the Coming Years Israel 1 61 ₪49 Israel 1 208 ₪84 Israel **5 792 ₪581 Israel *2 399 ₪260 Germany 1 236 €41 UK 1 100 €19 UK 1 207 €33 Owned Greece and *4 734 €45 Ireland 1 175 €12 Portugal 1 132 €23 Cyprus Portugal *1 554 €23 2023 2024 2025 2027 Israel 3 247 Israel *
Slide 20: Hotel Botanica | Haifa
Hotel Botanica | Haifa The new and luxurious Hotel Botanica stands at the foot of the Bahai Gardens in the German Colony and combines a perfect and meticulous hospitality experience with a unique location. 11/2022 163 Spectacular roof top view including Deluxe spa Opening Date Number a luxurious of
Slide 21: U Splash Resort | Eilat
U Splash Resort | Eilat A perfect family hotel located at the entrance of Eilat, provides a fascinating vacation experience with a water park that is unique in the Eilat area. Approx. Approx. Approx. NIS 83m NIS 57m NIS 43m Revenue Water park revenue 1-9/2022 renovation and 1-9/2019 construction 21
Slide 22: Palatin Hotel | Tel Aviv
Palatin Hotel | Tel Aviv An iconic building in the heart of Tel Aviv with a glorious history. At the time of its construction and opening in 1926 it was considered the most central, innovative and luxurious hotel in the city NIS 15m 2023 61 NIS 150m Estimated NOP Expected Number Cost including in a
Slide 23: NYX | Jerusalem
NYX | Jerusalem A lifestyle hotel in the heart of Jerusalem, in the lively Mahane Yehuda market 170 2024 Number Leased Opening year of rooms 23
Slide 24: Luxury Resort in the Heart of the Desert
Luxury Resort in the Heart of the Desert The MIDBAR resort ("Desert") will include 109 rooms with private pools, a luxurious spa and restaurants under the management of Chef Ran Shmueli 2025 109 Spectacular view Private pools and luxurious Opening year Number spas of rooms 24
Slide 25: Growth Engine - Establishing a Hotel Partnership in Europe
Growth Engine - Establishing a Hotel Partnership in Europe Investment commitment by about EUR 100 million Investment commitment by about Investment commitment by about EUR 100 million EUR 100 million investment commitment of Investment EUR 381 million Investment commitment by about EUR 35 million co
Slide 26: Growth Engine - Establishing a Hotel Partnership in Europe
Growth Engine - Establishing a Hotel Partnership in Europe Spain - Malaga, Mallorca, Ibiza 1,380 8 Hotels Cyprus - Larnaca, Latchi 206 2 Hotels Poland - Krakow 60 1 Hotel 386M€ The Value of transactions Greece - Nafplio 105 1 Hotel signed as of today Austria - Vienna 211 1 Hotel England - London 283
Slide 27: Six Hotels in Spain
Six Hotels in Spain 3 hotels in Ibiza and 3 hotels in Palma de Mallorca. The hotels are located in attractive areas on the beaches of Ibiza and Mallorca, rated as 4-star hotels, and feature 1,119 rooms. €16m 1,119 €165m Estimated NOP in a Number Purchase cost representative year of rooms 27
Slide 28: Leonardo Hotel Vienna | Austria
Leonardo Hotel Vienna | Austria Leonardo Vienna is a brand new 3-star hotel feature 211 rooms across 8 floors. The construction was completed a few months ago. The hotel opened in November 2022. €3.5m 211 €32m Estimated NOP in a Number Purchase cost representative year of rooms 28
Slide 29: Hotel "The Dilly" | London
Hotel "The Dilly" | London Opened in 1908, the iconic Dilly Hotel is centrally located between Piccadilly and Regent Street in the heart of London. The hotel has built a substantial reputation over the last 114 years as one of London’s finest hotels, and in the past, was honored to receive the royal
Slide 30: Identifying Trends in a Changing Market
Identifying Trends in a Changing Market ROOMS SWITCHUP MASTER FATTAL Fattal 7MINDS Coworking spaces A service providing a Offering a unique TERMINAL Limited A company for the real estate solution for hospitality establishment, Offering work stations, private companies looking to experience of luxury
Slide 31: The Group's Financial Results 30.9.22
The Group’s Financial Results 30.9.22 31
Slide 32: Main Financial Data – Quarterly Revenues (NIS millions)
Main Financial Data – Quarterly Revenues1 (NIS millions) Record quarterly results 1,757 1,519 1,519 1,246 1,600 571 567 537 533 1,045 532 506 503 503 480 478 476 473 464 670 772 397 368 357 330 318 305 280 256 202 182 160 128 116 84 79 72 66 65 38 42 10 29 25 Q1-2019 Q2-2019 Q3-2019 Q1-2021 Q2-2021
Slide 33: Main Financial Data - EBITDAR by Quarters (NIS millions)
Main Financial Data - EBITDAR by Quarters1 (NIS millions) Record quarterly results 692 557 618 577 543 370 237 230 225 211 206 191 198 188 185 185 180 179 261 163 141 140 140 97 132 117 90 63 (70) 78 39 59 33 33 14 11 10 33 22 2 -13 -15 -26 Q1-2019 Q2-2019 Q3-2019 Q2-2021 Q3-2021 Q1-2022 Q2-2022 Q3-
Slide 34: EBITDAR Turnover Rate Increases Steadily
EBITDAR Turnover Rate Increases Steadily 39% 39% 37% 36% 25% Omicron 13% Q1-2019 Q1-2022 Q2-2019 Q2-2022 Q3-2019 Q3-2022 34
Slide 35: Main Financial Data - EBITDA by Quarters (NIS Millions)
Main Financial Data - EBITDA by Quarters1 (NIS Millions) Record quarterly results 422 375 199 371 298 302 168 161 156 147 147 142 138 131 131 58 109 108 108 (301) 82 (125) 64 59 55 42 40 37 27 22 20 21 7 7 -7 -4 -4 -2 -2 -32 Q2-2019 Q3-2019 Q3-2021 Q2-2022 Q3-2022 -38 Q1-2019 -89 -93 -101 Q2-2021 Q1
Slide 36: Segmentation of quarterly revenue cycle from identical properties - Q3
Segmentation of quarterly revenue cycle from identical properties - Q3 Revenue 1,757 Q3/2022 Revenue from new 279 properties Approximately NIS 146 million derives from a decrease in the exchange rate The effect of the change in the -146 exchange rate Increase in revenue income from identical propert
Slide 37: Segmentation of quarterly EBITDAR from Identical properties - Q3
Segmentation of quarterly EBITDAR from Identical properties - Q3 EBITDAR 692 618 Q3/2022 Revenue from new properties 135 Approximately NIS 131 million derives from a decrease in the exchange rate The effect of the change in the -131 exchange rate Increase in revenue income from identical properties
Slide 38: EBITDAR Distribution and Revenue Distribution - Q3/2022
EBITDAR Distribution - Q3/2022 Revenue Distribution – Q3/2022 Other Other Israel Israel 9% 7% Europe 27% 32% Europe 32% 33% 31% 29% UK & Ireland UK & Ireland Including the relative part of hotels under 50% ownership. 38
Slide 39: Challenges and Solutions
Challenges and Solutions Workforce | Energy | Cost of Living 39
Slide 40: Expense Aspect - (Q3)
Expense Aspect - (Q3) % of Payroll Costs from Total revenue 100% Challenges Workforce shortage Rising payroll costs Solutions Technology – mechanized processes Regional or national service centers Moving of European 36% 36% reservation/service centers to areas 26% 24% 22% 23% with available workforc
Slide 41: Expense Aspect (Q3)
Expense Aspect (Q3) % of Energy expenses from Total Revenue 100% Challenges Rising energy costs 8% 7% 7% Solutions Subsidies in some European 5% 5% 5% countries Most new hotels (especially in 3% 3% Germany) have a geothermal system and therefore are not affected by the 0% rising energy prices 9.19 9
Slide 42: Debt and Leverage Ratios in a Growing Company
Debt and Leverage Ratios in a Growing Company What’s our Destination? 42
Slide 43: Key Debt Metrics (NIS millions)
Key Debt Metrics(NIS millions) Debt and average interest rate Balance by debt type as of 30.09.22 2,367 9% 2.9% 16% Approx 60% at fixed 15% interest rate Total net debt as of 30.09.22 1,036 43 4,792 872 876 million NIS 4.5% 2.3% 2.4% 18% 528 42% 5% משתנה מט"ח Foreign קבוע מט"ח Foreign משתנה
Slide 44: Financial Ratios (NIS Millions)
Financial Ratios (NIS Millions) Gradual increase in Ratio of equity to total assets Declining debt/EBITDA ratio 800 9.00 8.00 7.89 700 7.00 35.3% 600 6.34 6.10 6.00 500 5.00 400 4.00 665 693 300 29.6% 547 3.00 200 28.2% 2.00 27.4% 100 1.00 26.1% 26.2% 0 0.00 3.22 6.22 9.22 Dec-19 Dec-20 Dec-21 Mar-2
Slide 45: Financial Ratios to Repayment
Financial Ratios to Repayment Debentures (Series B) 1,2 Debentures (Series C) 1,2 As per Trust As per Trust 09/2022 09/2022 Deed Deed Not less than Not less than 3,232 2,312 Shareholders’ Equity 1,250 Shareholders’ Equity 1,400 (NIS million) (NIS million) (NIS million) (NIS million) Ratio of equity
Slide 46: Consolidated Balance Sheet (NIS millions)
Consolidated Balance Sheet (NIS millions) Sep-22 Sep-21 Dec-21 Data prior to As shown in the Impacts of implementation Financial IFRS16 of IFRS16 Statements Current Assets 1,653 )52( 1,601 1,963 1,405 Long Term Investments and Other Assets 3,239 11,074 14,313 14,236 13,906 Fixed Assets 6,034 - 6,034
Slide 47: Profit and Loss Statement (NIS million)
Profit and Loss Statement (NIS million) 7-9/22 7-9/21 Data prior to As shown in the implementation Impacts of IFRS16 Financial of IFRS16 Statements Revenues from Hospitality Services and Others 1,695 - 1,695 1,208 Total Operating Expenses 1,036 - 1,036 656 Operating income before rent, depreciation
Slide 48: Profit and Loss Statement (NIS million)
Profit and Loss Statement (NIS million) 1-9/22 1-9/21 1-12/21 Data prior to As shown in the implementation Impacts of Financial of IFRS16 IFRS16 Statements Revenues from Hospitality Services and Others 3,955 - 3,955 2,049 3,041 Total Operating Expenses 2,639 - 2,639 1,204 1,854 Operating income befo
Slide 49: Giving Back to the Community
Giving Back to the Community Establishment of the "Lev Chash" home for children afflicted with cancer and their families in Haifa (Rambam Hospital) and Tel Aviv (Ichilov Hospital). Opening expected in early 2023. The Company intends to establish 5 homes for children afflicted with cancer and their f
Slide 50: Summary
Summary 01 02 03 04 The Covid-19 2022 – Looking ahead – continued Debt - the crisis is behind Record results growth: Improvement of Company aims us – and we existing hotels, addition of at a coverage came out of it new hotels, successful ratio of 5 stronger partnership with investors 50
Slide 51: Thank you for your attention!
Thank you for your attention!
Fattal Hotel Group — Investor Presentation (December 2022) on 6ix