Seera Holding Group · TADAWUL:1810
Seera — Al Tayyar Travel Group Holding — Investor Presentation (January 2016)
30 slides from Seera's investor presentation, January 2016
Slide 1: Investor update presentation
Investor update presentation January 2016
Slide 2: Content
Content Introduction 4 Update on financial performance 6-10 Overview of E-Commerce initiatives 13-20 Update on Makkah investments 22-30 2
Slide 3: Introduction
Section 1 Introduction
Slide 4: Al Tayyar Travel Group Holding Co (ATG) at a glance
Al Tayyar Travel Group Holding Co (ATG) at a glance • With market capitalization of about US$ 4.8 billion, ATG is the leading integrated travel service provider in the MENA region • ATG is the leading travel management service Top sales award Newly awarded Top agent award Silver award provider of co
Slide 5: Update on financial performance
Section 2 Update on financial performance
Slide 6: ATG delivers its full suite of products and services to a highly valued client base
ATG delivers its full suite of products and services to a highly valued client base … Growth in government revenue Growth in private corporate revenue Growth in cash sales (Retail) 89 102 133 149 173 1,399 1,431 1,947 2,029 2,138 1.7 1.8 1.9 2.4 2.8 3,925 1,651 3,054 4,000 3,570 1,560 3,200 1,600 3,
Slide 7: ATG has registered strong financial performance
ATG has registered strong financial performance… Highlights of the income statement In SAR million Q4 2015 Q4 2014 FY 2015 FY 2014 Comments Revenue 2,185 2,186 8,631 7,711 • ATG has achieved top line growth of about 12%, from core ticketing segment 7% along COGS (1,764) (1,778) (6,815) (6,091) with
Slide 8: Driven by organic growth and acquisitions
…driven by organic growth and acquisitions Net revenue by business segment Comments/outlook 325 8,700 173 160 • Ticketing currently contributes close to 7,200 65 161 81% of ATG’s net revenue (SAR million) 5,700 129 • The contribution from the hospitality 8,146 segment, primarily in Makkah, is expect
Slide 9: With robust balance sheet
…with robust balance sheet… Highlights of ATG balance sheet Assets Liabilities and shareholders equity 9,000 8,424 8,424 Accrued Cash and liabilities 1,431 7,500 2,009 bank 6,201 Trade payables 1006 5,474 Trade 6,000 727 Other liabilities receivable 523 668 Pre Bank debts payment & 1,459 4,500 other
Slide 10: Coupled with strong cash flow generating capacity
…coupled with strong cash flow generating capacity… Highlights of cash flow statement In SAR million 2012 2013 2014 2015 Comments Net profit for the year 755 943 1,119 1,162 • ATG has achieved relatively high cash conversion results Cash from change in working capital 459 1,214 44 332 • Cash flow ge
Slide 11: Overview of E-Commerce initiatives
Section 3 overview of E-Commerce initiatives
Slide 12: ATG's new OTA project
Tab A ATG’s new OTA project
Slide 13: Middle East travel industry growth fueled by online travel growth
Most of the Middle East travel industry growth in the last 4 years has been fueled by online travel growth While the overall B2C and unmanaged business travel market … the online share of the overall market more than doubled! in the Middle East has grown by 37.6% from 2011 to 2014… 80.0 18.0 71 16.0
Slide 14: ATG has invested in a new online player with sustainable competitive advantage
ATG has invested in a new online player with sustainable competitive advantage • A separate entity has been created in Dubai to enable the required speed of implementation • Al Tayyar Group owns this entity entirely (100%) The formal • The entity operates outside of the existing Al Tayyar Group boun
Slide 15: ATG plans to build a profitable billion dollar online business
ATG plans to build a profitable billion dollar online business (1) 0.0% 0.0% 0.2% 0.5% 0.8% 1.1% (2) 0.0% 0.2% 1.1% 2.3% 3.4% 4.6% 1,000 1,000 900 800 Net booking volume in USD million 700 700 600 500 450 400 300 200 200 100 30 0.5 0 2015 2016 2017 2018 2019 2020 1. Assuming 5% growth on annual basi
Slide 16: ATG OTA's roadmap is very ambitious in product and regional expansion
ATG OTA’s roadmap is very ambitious both in terms of product and regional expansion Short Term Mid Term Long Term (1 – 2 years) (3 – 4 years) (5 – 10 years) Build Grow Dominate Build the technological infrastructure Expand the technological infrastructure Build and grow the • Mobile driven • Improve
Slide 17: Careem
Tab B Careem
Slide 18: Main competitors are Uber and EasyTaxi; Careem has the best-fit product
Main competitors are Uber and EasyTaxi, Uber is more direct; Careem has the best-fit product for the region Customized to region Best suited for mature markets Generic emerging markets Technology (mobile apps, web, butler) (mobile apps) (mobile apps) Car types Private limousines Private limousines T
Slide 19: Almosafer
Tab C Almosafer
Slide 20: Almosafer is a local OTA startup offering more than 500,000 hotels
Almosafer is a local OTA startup offering more than 500,000 hotels around the globe through Mobile Tablet apps Website Mobile App Call Center Sales Channels 2015 20.0 80% 63% 42% 16.0 44% 60% 11.7 12.0 34% 8.2 40% 26% 8.0 3.5 20% Financial 2.2 2.7 4.2 5.6 4.0 -17% 0% performance 0.0 -10% -20% -4.0 J
Slide 21: Update on Makkah investments
Section 6 Update on Makkah investments
Slide 22: Makkah market represents an attractive growth opportunity
Makkah market represents an attractive growth opportunity Description Makkah is located in the • Al Masjid AlHaram is the world largest mosque and surrounds the holiest site in Islam, AlKa’aba AlMusharrafa western region of Saudi Arabia • Al Masjid AlHaram is currently undergoing the largest expansi
Slide 23: Number of Hajj and Umrah pilgrims expected to triple over the next 3 years
Number of Hajj and Umrah pilgrims is expected to triple over the next 3 years Religious tourism accounts for almost 37% Religious tourism share of total inbound trips to KSA Expected religious visas granted of all inbound trips into Saudi Arabia 14 12.7 The Government of 11.6 12 Visas (in millions)
Slide 24: Room demand is expected to exceed supply starting from 2016
Room demand is expected to exceed supply starting from 2016 The current expansion of AlHaram resulted in a Forecasted Makkah hotel supply and demand downward pressure on the occupancy rates in the market 40,000 Post AlHaram expansion 30,000 project, demand is (in thousands) expected to exceed the Ro
Slide 25: ATG's strategy for religious tourism in Makkah is complete vertical integration
ATG’s strategy for religious tourism in Makkah is based on complete vertical integration of the value chain Description • ATG has acquired Mawasim, a leading travel and tourism service provider in Makkah Build indigenous • Mawasim buys rooms in the wholesale market to provide accommodation to its pi
Slide 26: Muthmerah is a leading real estate developer and owner in Makkah
Muthmerah is a leading real estate developer and owner in Makkah Muthmerah has developed residential and commercial towers Albawaba Sheabquresh New Jarwal Tower Name 3rd Ring Road Masafi Hotel Beer Balela 1&2 Hotel Hotel Property use Offices Hotel Hotel Retail Hotel Hotel Distance from Haram 4 KM 0.
Slide 27: ATG has recently acquired a premier hotel asset near the Holy Mosque
ATG has recently acquired a premier hotel asset located in front of the new expansion phase of the Holy Mosque Description • ATG has acquired a new 5 star hotel in Makkah to provide accommodation to its pilgrim clients in Makkah and Madinah • The hotel is located at Jabal El Kaaba and in a few steps
Slide 28: Thakher is a mega hospitality city for Hajj and Umrah pilgrims
Thakher is a mega hospitality city for Hajj and Umrah peligrims with close proximity to the holy mosque Site overview Overview District Rai Thakher Plot size 322,832 sqm Tenure Assumed freehold Distance from the Holy Mosque 1.4 km north of the Holy Mosque Vacancy Currently vacant Shape Irregular lan
Slide 29: ATG will capitalize on a well located project to complete vertical integration
ATG will capitalize on a well located project to complete its vertical integration strategy, which will fuel future growth Acquisition of a 25% strategic stake in ATG strategy and benefits Thakher will allow ATG to capitalize on the • ATG’s strategy for investing in Makkah is based on achieving a co
Slide 30: Equinox has knowledge of the Makkah hospitality market
Equinox has the knowledge of Makkah hospitality market with a team of years of accumulated experience Hotel owners should look for independent asset management In general, Equinox fills the gap where ownership requires experts to companies: independent from traditional hotel consulting companies und
Al Tayyar Travel Group Holding — Investor Presentation (January 2016) on 6ix