Talaat Moustafa Group Holding · EGX:TMGH
Talaat Moustafa — 9M2022 Earnings Presentation
27 slides from Talaat Moustafa's earnings presentation, November 2022
Slide 1: IR Presentation 9M2022 Update
IR PRESENTATION 9M2022 UPDATE TMG Holding S.A.E. .م.م.مجموعة طلعت مصطفى القابضة ش +20 2 3331 2000 Publicly held since 2007 34/36 Mossadek St., Dokki الدقي، شارع مصدق٣٤/٣٦ IR@tmg.com.eg EGX: TMGH.CA / TMGH EY Giza, Egypt مصر،الجيزة www.talaatmoustafa.com
Slide 2: About TMG Holding
About TMG Holding Talaat Moustafa Group Holding (TMG Holding) a leading conglomerate with special emphasis on developing integrated communities, including but not limited to mixed-use real estate and hospitality projects across Egypt’s key cities. It has an outstanding track-record in Market capital
Slide 3: TMG at a glance as at end-9M2022
TMG at a glance [TMGH.CA/TMGH EY] as at end-9M2022 MENA’s leading developer(1) #1 Egyptian RE developer by backlog(2) #1 Egyptian RE over 120k+ units delivered c29mn sqm residual 70.0 (since inception) 54.8 63.4 63.1 BuA over 100k / 6.7k units sold developer by market cap 31.6 33.6 35.7 Highest cumu
Slide 4: We offer a robust business model with stable outlook and unmatched quality
We offer a robust business model with stable outlook and unmatched quality for risk-averse investor seeking exposure to Egypt’s young and growing population TMG Holding’s robust business model, experienced management team, and vision, as well as unmatched track record, provide for unique investment
Slide 5: Investment themes that are important to consider right now
Investment themes that are important to consider right now when discussing TMG potential, deep inherent value in its stock and the abundance of positive catalysts on the horizon Solid financial and operational performance of TMG during transformational years 2020-2022 confirms management’s ability t
Slide 6: Key financial highlights of 9M2022
Key financial highlights of 9M2022 Continous strength of TMG’s financial results and profitability is a solid testimony to the robustness of management’s business strategy and well-executed long-term Recurring 23.3% 3% 2% Recurring income vision, yielding strong inprovements in profitability during
Slide 7: We are very well-prepared to thrive in the global inflationary environment
We are very well-prepared to thrive in the global inflationary environment Massive economies of scale in already TMG Holding’s robust business model is perfectly tailored to withstand any rapid macroeconomic changes, matured projects such as cost inflation, currency weakness, or increases in policy
Slide 8: Total net sales FY2021 were the highest in the company's history
Total net sales FY2021 were the highest in the company’s history New Sales [EGPbn] ■ Impressive real estate sales results in Madinaty, Noor, Celia EGP18.6bn 32.4 and Al Rehab cities booked continuously from 2017 are the contributed FY22 Guidance EGP24-26bn best testimony of the adequacy of managemen
Slide 9: Strong sales performance in 9M2022 across projects and products
Strong sales performance in 9M2022 across projects and products New sales by project % 9M2022 Online sales by project % 9M2022 4% 16% New sales 9M2022 Online sales 9M2022 3% 1% 6% 29% 2% 2% EGP21bn EGP778mn 58% 9% ■ Non-residential sales represented 23% of total sales in 70% 9M2022, aided by recogni
Slide 10: We are a brand of choice for the largest public and private financial institutions
We are a brand of choice for the largest public and private financial institutions in the country Recent bulk sales of prime non-residential properties in our projects to the largest public and private financial institutions is the most vital testimony of the strength of our branding and TRUST in ou
Slide 11: We are a brand of choice for the largest public and private financial institutions
We are a brand of choice for the largest public and private financial institutions in the country We record a strong demand from institutional investors, further 1 Strategic alliance with First Design Company improving our customer mix and the security of our backlog August 2020, 335k sqm in Al Reha
Slide 12: Our prime, vast and inexpensive land bank offers massive inherent value
Our prime, vast and inexpensive land bank offers massive inherent value and is the key to our future growth over the next 20+ years TMG’s unmatched track record allows the company to secure prime land bank at very attractive Total Group footprint pricing and payment terms, largely unavailable to our
Slide 13: Our prime, vast and inexpensive land bank offers massive inherent value
Our prime, vast and inexpensive land bank offers massive inherent value and is the key to our future growth over the next 20+ years ■ In October 2021, we completed an independent review and valuation of a small chunk of our Investment land value land bank representing raw investment lands with no or
Slide 14: We have successfully addressed the risks of global macroeconomic changes on our costing structure
We have successfully addressed the risks of global macroeconomic changes on our costing structure Since 2020, major macroeconomic events affected the business environment worldwide, including Egypt, starting with the COVID-19 pandemic, the unprecedented volatility in global commodity prices, the dev
Slide 15: Noor launch – unprecedented success in the history of the Group
Noor launch – unprecedented success in the history of the Group and Egyptian real estate market Noor sales reached a record EGP15bn in just three weeks during the June launch, achieving the highest sales in a launch for a real estate developer in Egypt, figure increased to EGP21bn by 20th of Septemb
Slide 16: The birth of a new community: deliveries in Celia
The birth of a new community: deliveries in Celia TMG is on track with the timely deliveries of residential units in Celia, our project in the heart of the New Administrative Capital ■ Celia was launched in mid-2018, in a prominent spot in the very center of the New Administrative Capital. Spreading
Slide 17: Continuing to develop our recurring income portfolio: the Spine
Continuing to develop our recurring income portfolio: the Spine 2+MN SQM LAND AREA 3.7MN SQM TOTAL BUA Project comprehensive of high quality residential and non-residential, amenities and green open-spaces The Spine is a fully integrated project in the heart of Madinaty. It will provide the city wit
Slide 18: Continuing to develop our recurring income portfolio: the Spine
Continuing to develop our recurring income portfolio: the Spine The Spine is planned to be a destination hub, similarly to the point of attractions in the most developed cities globally ■ The master plan of the Spine encompasses an easily accessible, integrated, high quality mix of residential, offi
Slide 19: Remarkable performance in hospitality division across all properties
Remarkable performance in hospitality division across all properties Revenues and EBITDA of the hospitality division for the 9M2022 period confirms the outstanding performance and reach the highest levels in the recent history of EBITDA and Occupancy the company 700 80% ■ All four properties deliver
Slide 20: Strong EBITDA performance in hospitality segment during 9M2022
Strong EBITDA performance in hospitality segment during 9M2022 EBITDA RECOVERY – PER PROPERTY EBITDA recovery - Consolidated 400.0 372.1 750.0 631.7 330.0 600.0 260.0 EGPmn 450.0 EGPmn 190.0 140.0 262.2 113.9 300.0 120.0 89.6 80.8 191.7 54.4 58.7 64.8 37.4 32.8 31.2 150.0 50.0 10.3 -20.0 - 9M21 (act
Slide 21: Strong ARR both in USD and EGP during 9M2022
Strong ARR both in USD and EGP during 9M2022 USD ARRs PER PROPERTY USD ARR - Consolidated 500 400 413 390 314 400 353 365 300 276 314 311 321 247 300 248 268 USD 200 200 146 162 120 100 100 0 0 9M21 (actual) 9M22 (budget) 9M22 (actual) 9M21 (actual) 9M22 (budget) 9M22 (actual) FS Nile Plaza FS Sharm
Slide 22: Remarkable performance for FS Sharm El Sheikh 9M2022
Remarkable performance for FS Sharm El Sheikh 9M2022 Four Seasons Sharm El Sheikh extension is already welcoming new clients ■ Expansion on 909k square meters, bringing the total project area to nearly 1.1mn sqm ■ With 289 keys currently served, additional 89 came online with the expansion ■ Further
Slide 23: Strong growth in the retail performance during 9M2022
Strong growth in the retail performance during 9M2022 as new space becomes operational and existing rents continuously improve Retail Revenues Retail operations are continuously growing on the back of new commercial 300 areas becoming available for lease 250 ■ Revenues from retail operations increas
Slide 24: Open Air Mall: East Cairo Retail Hotspot
Open Air Mall: East Cairo Retail Hotspot Open Air Mall is an exciting new concept for Egypt, which seamlessly integrates open spaces, beautiful landscapes and walkable areas with a large commercial area and wide-ranging types of shops ■ Open Air Mall is evolving as the hotspot of retail activity in
Slide 25: TMG Clubs: a fast growing and profitable segment
TMG Clubs: a fast growing and profitable segment with little cash commitment Club Revenues Clubs’ operations growing y-o-y in 9M2022, confirming 450 the great interest on the property from the population. 400 ■ Club revenues in 9M2022 grew 18% y-o-y, reaching 350 +18% EGP402mn. Stand-alone sales of
Slide 26: Focused on corporate responsibility
Focused on corporate responsibility BUILDING SUSTAINABLE ENABLING ECONOMIC FOCUSED ON SOCIAL IMPACT COMMUNITIES GROWTH ■ Shariah compliant – no exposure to alcohol sales or gambling ■ Building sustainable communities focused on As a leading developer in Egypt, TMG continues to improving life-quality
Slide 27: Thank you
4k| TMG | Thank you
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