Ashtrom Group Ltd. · TASE:ASHG
Ashtrom — Investor Presentation (March 2023)
39 slides from Ashtrom's investor presentation, March 2023
Slide 1: Excellence in Construction
Excellence in Construction Presentation for the Capital Market Based on financial statements from December 31, 2022 March 2023
Slide 2: Disclaimer
Disclaimer This presentation is not to be construed as an offer to buy Company It should be made clear that the Company’s preparedness, including securities or an invitation to accept such offers, being solely intended activities in the various sectors and changes in the regular sequence of for conv
Slide 3: Ashtrom Group 2022 – Continuing to Excel
Ashtrom Group 2022 – Continuing to Excel 7.5 NIS billions 5.2 NIS billions 931 NIS millions Group’s orders 2022 income 2022 net profit backlog as of attributable to March 2023 shareholders 4.9 NIS billions TA-35 Traded on the A-Rating With a stable outlook Equity attributable to index by Maalot shar
Slide 4: A Decade of Impressive Growth
A Decade of Impressive Growth Increase in equity over time Equity attributable to shareholders ~4.9 NIS billions After payment of dividends of ~1.1 NIS billions Equity attributable to shareholders ~1.3 NIS billions 2014 2016 2018 2020 2021 2022 Ashtrom Group IPO launched Entry into the field of Purc
Slide 5: Multi-year financial overview
Ashtrom Group Multi-year financial overview Income (NIS millions) Gross Profit (NIS millions) 1,103 4,860 5,153 4,633 4,464 927 894 894 3,741 3,954 3,411 727 3,229 598 539 556 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 Operating Profit (NIS millions) Net profit a
Slide 6: Multi-year financial overview
Ashtrom Group Multi-year financial overview Equity attributable to shareholders (NIS millions) Group Dividend (NIS millions) NIS 1,300M * 410 4,855 4,023 320 3,243 2,291 200* 1,930 160 1,569 130 1,291 1,377 104 78 45 54 2015 2016 2017 2018 2019 2020 2021 2022 due to due to due to due to due to due t
Slide 7: Appreciation in Value Resulting from Property Improvement
Appreciation in Value Resulting from Property Improvement Consolidated Data Ashtrom Properties | Ashtrom Properties | Rental Housing | Other Total Rent increases, lease Additional rights and Net Increase renewals and other property value in Value 2022 147 NIS millions 169 NIS millions 231 NIS millio
Slide 8: Long-term Strategic Investments
Long-term Strategic Investments* 3.8 2.0 NIS billions 2021-2022 investments NIS billions 2022 investments 1.8 NIS billions 2021 investments Primary Areas of Investments (NIS millions) Rental Housing Ashdar Ashtrom Properties Acquisition of 5 plots Land for housing in Israel Land and properties - of
Slide 9: Looking to the Future
Looking to the Future Focal Points for 2023 Ashtrom Construction Ashtrom Properties Ashdar Income to be recorded in 2023 Completion of project Launching new projects 2.55 NIS billions 11,500 m 2 672 housing units AS of Dec 31., 2022 Initiating the development of Company’s share only From a backlog o
Slide 10: Carrying on with Investments
Carrying on with Investments Ashtrom Properties | Scope of income-generating properties in m² Ashtrom Rental Housing | Housing units for rent 957,482 2,459 575,749 1,333 253,081 554 572 128,652 Income-generating Under construction Planned Total Income-generating Income-generating in Planned Total 20
Slide 11: Group Independent Areas of Activity
Ashtrom Group 8 Independent Areas of Activity which work together with optimal synergy THE WHOLE IS GREATER THAN THE SUM OF THE PARTS Rental Housing 11
Slide 12: Ashtrom Construction
Ashtrom Construction Experience. Professionalism. Quality. Executing all types of Control over all production Commitment to deadlines construction and chain elements to execute while offering infrastructure projects projects and making use uncompromising quality of advanced technologies 6.7 NIS bill
Slide 13: Construction in Israel
Construction in Israel Orders backlog (NIS millions) 6,657 millions NIS Backlog as of Dec 31, 2022 by anticipated period of projected income 2,005 2,552 1,375 649 632 666 725 605 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2024 2025 2026 and onwards After Dec 31, 2022, the company undertook new projects in the
Slide 14: Construction in Israel
Construction in Israel Selected projects under construction Kikar HaMedina, Tel Aviv 1000 Complex Rishon LeZion The Pardes, Kiryat Ono Fast Lanes Project The Phoenix, Acro & Entrepreneurs Property owners Entrepreneurs Ashtrom Properties Entrepreneurs Ashdar Entrepreneurs Ayalon Highways Project size
Slide 15: Construction in Israel
Construction in Israel In 2022, the total volume of work orders received was ~ NIS 2.6 billion Selected projects: Gindi BaMoshava Go Jaffa Ki’Ach Project Jerusalem Ashdar Zirelson Location Neveh Ilan, Or Yehuda Location Jaffa Location Jerusalem Location Tel Aviv Project twelve 6-14-story buildings P
Slide 16: Ashtrom Properties
Ashtrom Properties* A leader in acquisition, development, construction and management of income-generating properties Ownership of assets in the Owning, managing and office, commercial, retail and improving properties in logistics sectors nationwide Israel, Germany and UK ~ 576,000 M² ~ NIS 6.5B NIS
Slide 17: Ashtrom Properties
Ashtrom Properties* Israel 64% Germany 23% UK 13% Scope of Real Estate 338,240 m² Scope of Real Estate 166,603 m² Scope of Real Estate 70,906 m² Occupancy 92% Occupancy 98% Occupancy 87% (¹) Annual Rentals NIS 188M Annual Rentals NIS 69M Annual Rentals NIS 47M 2022 NOI NIS 175M 2022 NOI NIS 62M 2022
Slide 18: Expected NOI growth from projects under construction in Israel
Ashtrom Properties Expected NOI growth from projects under construction in Israel: NIS 112M* +38 356 +29 385 Total: 273 +11 284 284 +34 318 98 +112 257 98 226 98 98 98 98 81 101 258 287 Israel 175 186 186 220 145 156 Germany and UK 2020 2021 2022 2023 2024 2025 2026 2027 Actual Actual Actual Forecas
Slide 19: Properties under Construction
Properties under Construction Selected Projects LYFE, Building C, Bnei Berak Ashtrom Campus, Yavneh OLIO, Bat Yam 1000 Complex Rishon LeZion Scope (100%): ~ 90,000 Scope (100%): ~ 86,000 Scope (100%): ~ 34,000 Scope (100%): ~ 305,000 Ownership: 50% Ownership: 100% Ownership: 50% Ownership: 26.07% Pr
Slide 20: Ashdar
Ashdar A leader in residential initiatives and urban renewal A leader in planning, initiating Pioneer and leader in and marketing high-quality diverse areas of urban residential neighborhoods renewal ~ 120 2,159 17,621 Projects Housing units under Housing units in nationwide construction and/or plan
Slide 21: Ashdar Housing Units in Planning Phase
Ashdar Housing Units in Planning Phase Type of Transaction* Geographic Distribution* Status of Planning Process* Cash North 903 Tel Aviv Approved by 1,996 3,002 Urban National Development In the Outline Plan Plan 1,330 process of HaSharon 5,351 Urban Evacuation, 5,428 Development Total building and
Slide 22: Ashdar Gross Profit Forecast
Ashdar Gross Profit Forecast (NIS millions) Number of Number of Total revenue expected Expected gross Expected Expected - units to be units sold as of from projects that have profit yet to be gross date of marketed(1) Dec 31, 2022(1) yet to be recognized(2) recognized(2) profit completion Projects u
Slide 23: Ashtrom Rental Housing
Ashtrom Rental Housing Rental Housing Building Communities A pioneer in the field of Planning, developing ~ 100% occupancy rental housing in Israel. and operating 10 rental in long-term Established and started housing projects in leases operating in 2016 high-demand areas ~2,500 housing units NIS 3.
Slide 24: Rental Housing
Ashtrom Rental Housing Rental Housing ~ 2,500 housing units for long-term leasing Projects being managed 554 Units Haifa, Neot Peres | 184 housing units Projects under construction 572 Units Tel HaShomer | 137 units* Tel Aviv, HaGadna | 370 units Projects in planning stage 1,333 Units Tel Aviv, HaMa
Slide 25: Projects being Operated and under Construction
Rental Housing Rental Housing Projects being Operated and under Construction Pioneering investments in high-demand areas Operated Operated Under construction Under construction Neot Peres, Haifa HaGadna Complex, Tel Aviv HaMashtela, Tel Aviv Kiryat HaYovel, Jerusalem Number of 184 Units* Number of 3
Slide 26: Appreciation in Value of Rental Housing Properties
Appreciation in Value of Rental Housing Properties Rental Housing Improvement in rental housing sector through projects being operated and under construction (Applies to rental housing only) Projects in operation and at the end of the construction process Creating value of ~ NIS 900M 2,436 Planned P
Slide 27: Industries
Ashtrom Industries A wide range of value chain solutions under one roof Development, production, import, marketing and sale of Expanding the concrete supply chain, including the Synergetic expansion of the sector’s activity in the area of construction NIS 1.1B Orders backlog 9 Dedicated Companies Su
Slide 28: Ashtrom Concessions
Ashtrom Concessions Planning, development, operation and maintenance Specialization in complex PPP projects Operation of five courthouses and Ben- Tendering for concession as part of the company's activities Gurion University postgraduate residence projects NIS 352M Value of the sector’s assets Inco
Slide 29: Ashtrom Renewable Energy
Ashtrom Renewable Energy Development and investment in the field of renewable energy in Israel and worldwide The company operates as Focus on investments The company currently an independent power and development of works with solar and producer (IPP) renewable energy wind energy worldwide projects
Slide 30: Renewable Energy 2.5 GW (Ashtrom share)
Ashtrom Renewable Energy 2.5 GW (Ashtrom share) With a global distribution USA Poland Under construction* 398 MW Operational 28 MW Initiation & Development 1,395 MW Total 28 MW Total 1,793 MW Greece Total Global Israel Initiation & Development 541 MW Operational 29 MW Operational 1 MW Total 541 MW U
Slide 31: Project initiated in the USA
Ashtrom Renewable Energy Project initiated in the USA - Tierra Bonita El Patrimonio Whitethorn Soles Rest Rolling Sun Greasewood IV Total Location Texas Texas Texas Idaho Texas Texas - (SPP) Planned output (1) 398 188 352 196 366 293 1,793 MW MW MW MW MW MW MW Phase of project Construction Initiatio
Slide 32: TIERRA BONITA project, Texas, USA
Ashtrom Renewable Energy TIERRA BONITA project, Texas, USA 1. 2. The Tierra Bonita project, with a The company has signed a 20-year volume of 398 MW, power purchase agreement (PPA) is under construction with CPS, the largest municipal electric company in the USA serving San Antonio and rated Aa2 int
Slide 33: Ashtrom International
Ashtrom International Contracting, Entrepreneurship and Income-generating Real Estate Overseas Over 50 years of experience in the Land inventory in the USA and Income-generating property in Eastern construction of projects and entrepreneurial activity in Portugal Europe, the most prominent of which
Slide 34: Profit and Loss Statement
Ashtrom Group Profit and Loss Statement (NIS millions) - 2022 2021 Income 5,152,913 4,464,260 Gross Profit 1,102,914 894,104 Gross Profit Margin 21.4% 20.0% Gain from change in designation from inventories to investment property 105,683 16,577 Valuation gains of investment property 565,467 398,789 S
Slide 35: Balance Sheet & Cash Flow Summary
Ashtrom Group Balance Sheet & Cash Flow Summary (NIS millions) -- 31.12.2022 31.12.2021 Total cash and short-term investments 1,861 2,235 - - - Current Assets 5,178 5,454 Non-current Assets 13,056 10,637 Total Assets 18,234 16,091 Current Liabilities 4,485 4,137 Non-current Liabilities 8,699 7,772 T
Slide 36: Leveraging & Debt
Leveraging & Debt Solo level analysis Equity Total Assets Equity Ratio 4,855 8,776 55.3% NIS millions NIS millions Financial Debt to Cash Balance & Debt, net CAP, net Short-term Investments 2,312 32.2% 761 NIS millions NIS millions Bonds Repayment (principal only) NIS millions 840 419 422 407 413 34
Slide 37: Financial Debt
Ashtrom Group* Financial Debt Gross Financial Debt Net Financial Debt** (NIS millions) (NIS millions) Dec 31, 2022: 5,277 Dec 31, 2022: 4,321 Dec 31, 2021: 3,158 2,566 1,606 31% 1,881 2,872 54% 567 562 799 385 420 200 228 239 219 15% 115 112 71 -85 Bonds Bank credit Non-bank credit General Construct
Slide 38: ESG Strategy
ESG Strategy We at Ashtrom Group intend to adopt a new policy in the near future Sustainable Environment E Producing, planning, building and managing environmentally friendly properties Environmental Safe and Healthy Community Environment S G Ethical Business Environment Social Governance 38
Slide 39: Thank You
Thank You Excellence in Construction