Talaat Moustafa Group Holding · EGX:TMGH
Talaat Moustafa — Investor Presentation (September 2018)
20 slides from Talaat Moustafa's investor presentation, September 2018
Slide 1: Strategy Presentation September 2018
STRATEGY PRESENTATION SEPTEMBER 2018
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-1H2018
TMG at a glance [TMGH.CA/TMGH EY] as at end-1H2018 MENA’s leading developer(5) c70k+ units delivered 875 operational hotel #1 Egyptian RE developer 84k+ / 3,048 units sold (since inception) rooms by market cap (since inception / 1H2018 only) Highest cumulative deliveries 443 rooms under 30+ years tr
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] 38.0 12.9 24.6 Achieving robust growth in sales 5.2 1H2 017 1H2 018 1H2 017 1H2 018 The Group invested EGP1bn to Hospitality EBITDA [EGPmn](1) increase its stake in ICON to
Slide 5: Strategic vision allowed for 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 as at 1H2018 unmatched brand equity of TMG in the Egyptian 100% 500 feddans 1.03mn sqm market 80% Celia land area Total residential area 60% 4,799 807 Celia is a
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. ■ Strong line-up of non-residential BuA for sale expected in 2H2018(1) EGPbn Evol
Slide 8: Exceptional performance in 2H2017 and 2018 outperforming all peers
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 developers still well below our estimates of market demand 1,386(2) by mid-t
Slide 9: 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 10: 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 recovery 1,200 53% 50% 60% 44% 45% 44% 1,000 40% 43% 50% 34% 51% 800 40% EGPmn 43% 27% 28% 4
Slide 11: 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 800 64% 1,318 346 700 52% 600 97 500 875 EGPmn 400 300 200 100 496 753 0 1H2 017 1H2 018 2017 1H2 019 FS Sharm El Sheikh Ext. Dec-2020 Four Seasons 2021 targ
Slide 12: 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 k sqm 86 150 60 121.5 151 40 100 197 20 35.5 50 0 Leased GLA Mall of Madinaty opening Total GLA 46 (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 2.5mn sqm land area 3.7mn sqm total BuA 13 years of development Downtown 2.3mn sqm of residential BuA Civic S
Slide 14: Recurring income portfolio: The Spine
Continue building our recurring income portfolio – target 40-45% of consolidated gross profit The Spine(1) 500-700k sqm of retail portfolio 60:40% / BTS:BTL 200k sqm of office GLA 20:80% / BTS:BTL 600+ hotel keys to be managed by operators We intend to accelerate the development of Our Flagship Proj
Slide 15: Maintain robust growth in sales in existing projects
Maintain robust growth in sales in existing projects ■ EGP11.4bn of net cash flow from backlog and ■ EGP38.0bn 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: 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 17: 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 18: Preserving capital appreciation while providing a dividend stream
Preserving capital appreciation while providing a dividend stream Net cash from contracted sales ■ cEGP11.4bn 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 EGP16k/sqm
Slide 19: Group structure
Group structure 83.3% Arab Co. for Hotels & Tourism Talaat Moustafa Group Holding Inv. 100% 9.87% 100% Alexandria Co. for Urban Development FS Sharm El Sheikh & Ext. 84.47% 100% San Stefano Grand Plaza* May Fair 100% 99.6% 59.04% Kempinski Nile Hotel Alexandria Real Estate Co. 100% FS Nile Plaza 100
Slide 20: Thank you
Hk =1E Thank you TMG Holding
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