Talaat Moustafa Group Holding · EGX:TMGH
Talaat Moustafa — Investor Presentation (September 2022)
30 slides from Talaat Moustafa's investor presentation, September 2022
Slide 1: IR Presentation 1H2022 Update
IR PRESENTATION 1H2022 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 ﻣﺼﺮ،اﻟﺠﻴﺰة Giza, Egypt 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: 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 4: Some EGP28bn of liquidity generated through strategic transactions during 2020-2022
Some EGP28bn of liquidity generated through strategic transactions during 2020-2022 Massive liquidity unlocked during 2020-2022 through innovative transactions with prominent financial institutions 1 Strategic alliance with First Design Company Starting 2020, TMG Holding’s management was also focuse
Slide 5: 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 6: 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 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: Key financial highlights of 1H2022
Key financial highlights of 1H2022 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 28.7% 5% 2% Recurring income vision, yielding strong inprovements in profitability during
Slide 9: TMG at a glance
TMG at a glance [TMGH.CA/TMGH EY] as at end-1H2022 MENA’s leading developer(1) over 120k+ units delivered 1,063 operational hotel #1 Egyptian RE developer over 100k / 6.7k units sold rooms by market cap (since inception) (since inception / FY2021) Highest cumulative deliveries by a 877 rooms under 5
Slide 10: 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 11: Land bank independent valuation
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 m
Slide 12: 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 and Al Rehab cities booked continuously from 2017 are the 32.4 EGP18.6bn contributed by FY22 Guidance best testimony of the adequacy of management’s long-t
Slide 13: 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 14: Strong sales performance in 1H2022 across projects and products
Strong sales performance in 1H2022 across projects and products New sales by project % 1H2022 Online sales by project % 1H2022 5% 4% 4% 4% 15% New sales 1H2022 Online sales 1H2022 2% 5% 25% EGP11.3bn EGP381mn 56% 11% Non-residential sales represented 39% of total sales in 69% 1H2022, aided by recogn
Slide 15: Noor launch – unprecedented success
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 o
Slide 17: 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 1H2022 period recorded the best performance in the recent history of the company EBITDA Composition 500 80% All four properties delivered strong operational and financial resu
Slide 18: Strong EBITDA performance in hospitality segment during 1H2022
Strong EBITDA performance in hospitality segment during 1H2022 EBITDA recovery - FS Nile Plaza (Cairo) EBITDA recovery - FS Sharm El Sheikh EBITDA recovery - Consolidated 500.0 300.0 105.0 426.4 267.0 87.5 400.0 250.0 90.0 75.0 200.0 300.0 EGPmn 60.0 EGPmn EGPmn 150.0 45.0 200.0 86.0 31.5 131.5 100.
Slide 19: Strong occupancy levels in hospitality segment during 1H2022
Strong occupancy levels in hospitality segment during 1H2022 Occupancy - FS Nile Plaza (Cairo) Occupancy - FS Sharm El Sheikh Occupancy - Consolidated 70% 70% 64% 70% 59% 60% 56% 52% 60% 60% 50% 50% 50% 47% 41% 43% 40% 40% 35% 40% 35% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0% 0% 0% 1H2 1 (actual) 1H2 2
Slide 20: Strong ARR both in USD and EGP during 1H2022
Strong ARR both in USD and EGP during 1H2022 USD ARR - FS Nile Plaza (Cairo) USD ARR - FS Sharm El Sheikh USD ARR - Consolidated 400 500 500 324 437 394 377 300 400 400 262 247 321 300 275 300 243 200 200 200 100 100 100 - - 0 1H2 1 (actual) 1H2 2 (budget) 1H2 2 (actual) 1H2 1 (actual) 1H2 2 (budget
Slide 21: Strong ARR both in USD and EGP during 1H2022
Strong ARR both in USD and EGP during 1H2022 EGP ARR - FS Nile Plaza (Cairo) EGP ARR - Consolidated EGP ARR - FS Sharm El Sheikh 5,678 6,000 8,000 8,000 7,658 6,884 5,000 7,000 7,000 4,026 5,778 4,000 3,614 6,000 6,000 5,035 5,000 4,210 5,000 3,816 3,000 4,000 4,000 3,000 3,000 2,000 2,000 2,000 1,0
Slide 22: Remarkable performance for FS Sharm El Sheikh 1H2022
Remarkable performance for FS Sharm El Sheikh 1H2022 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 69 re
Slide 23: Strong growth in the retail performance during 1H2022
Strong growth in the retail performance during 1H2022 as new space becomes operational and existing rents continuously improve Retail Revenues Retail operations are continuously growing on the back of new commercial 180 areas becoming available for lease 150 Revenues from retail operations increased
Slide 24: Open Air Mall: East Cairo Retail Hotspot
Open Air Mall: East Cairo Retail Hotspot Strong performance from the retail operations on the back of expanding operations in Open Air Mall Open Air Mall is evolving as the hotspot of retail activity in East Cairo, with GLA of over 88k sqm, of which 40k sqm are already operational while the remainde
Slide 25: Continuing to build our recurring income portfolio: the Spine
Continuing to build 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 with
Slide 26: Continuing to build our recurring income portfolio: the Spine
Continuing to build 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, offices,
Slide 27: 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 1H2022, confirming 350 the great interest on the property from the population. 300 Club revenues in 1H2022 grew 14% y-o-y, reaching 250 +14% EGP322mn. Stand-alone sales of ne
Slide 28: Clubs: Competitive Sports
Clubs: Competitive Sports The competitive sports club concept offers 75%-25% mix of sports and leisure, cultural and social activities Providing a vast array of sports for all ages, focusing on professional curriculums and high-quality competitive training for the younger generations The state-of-th
Slide 29: Focused on corporate responsibility
Focused on corporate responsibility BUILDING SUSTAINABLE ENABLING ECONOMIC FOCUSED ON SOCIAL IMPACT § Shariah compliant – no exposure to alcohol sales or COMMUNITIES GROWTH gambling § Building sustainable communities focused on improving life-quality of an average citizen, with access to good- As a
Slide 30: Thank you
ll. TMG | Thank you
Talaat Moustafa Group Holding — Investor Presentation (September 2022) on 6ix