Elco Ltd. · TASE:ELCO
Elco — Q3 2024 Earnings Presentation
34 slides from Elco's earnings presentation, November 2024
Slide 1: Elco Group Capital Market Presentation Q3 2024
ELCO GROUP CAPITAL MARKET PRESENTATION Quarter 3, 2024
Slide 2: Solidarity with the Israel Defense Forces
THE ELCO GROUP STANDS SHOULDER TO SHOULDER WITH THE BRAVE SERVICEMEN AND WOMEN OF THE ISRAEL DEFENSE FORCES AND SECURITY SERVICES, WHO CONTINUE TO PUT THEIR LIVES ON THE LINE TO PROTECT THE SAFETY AND FUTURE OF OUR COUNTRY. WE ALL LOOK FORWARD TO THE SWIFT RELEASE OF THE HOSTAGES AND HOPE FOR BETTER
Slide 3: Legal Clarification
LEGAL CLARIFICATION This presentation does not constitute and should not be construed as an offer of securities by Elco Ltd. ("the Company") to the public. This presentation is intended solely to present basic marketing information on behalf of the Company. The information contained in this presenta
Slide 4: About Us: Who Are We?
WHO ARE WE? AN ISRAELI INVESTMENT COMPANY WITH A GLOBAL PRESENCE Prudent management via a Holding companies and ventures Growth and enhancement OUR lean, focused executive team in which we can exercise while identifying and realizing effective control opportunities within the activity Focus on gener
Slide 5: Elco – Facts & Figures
ELCO – FACTS & FIGURES A FAMILY-CONTROLLED PUBLIC COMPANY ACTIVE FOR 75 YEARS IN ISRAEL & WORLDWIDE NIS 3.6 Traded on Indexes Founded in 1949 66.5% Approx 23,850 TA 90, TA 125 Approx Billion controlling Company Employees TA FAMILY market Cap as of 27.11.2024 Approx Approx Approx Approx NIS 50 NIS 56
Slide 6: Activities
ACTIVITIES LEADING ISRAEL’S MAIN GROWTH ENGINES, WITH SIGNIFICANT & GROWING OVERSEAS ACTIVITIES )48%( )45%( )55%( )61%( )29.8%( Public Company (TA 90) Public Company (TA 90) Public Company (TA 90) Public Company Discount Investments Ltd. Public Company MAIN AREAS OF ACTIVITY MAIN AREAS OF ACTIVITY P
Slide 7: 2024 at Elco Group - Growth Amid Challenging Market Conditions
2024 AT ELCO GROUP - GROWTH AMID CHALLENGING MARKET CONDITIONS GROWTH IN MOST OF THE GROUP’S ACTIVITIES, DESPITE A CHALLENGING BUSINESS ENVIRONMENT AND MARKET CONDITIONS ACCELERATION IN THE MATURATION TREND OF EFFICIENCY MEASURES TAKEN IN CERTAIN ACTIVITIES 2024 ELECTRA ELECTRA CP ELECTRA REAL ESTAT
Slide 8: From Traditional Industry to an Infrastructure & Retail Giant
2014-2024 FROM TRADITIONAL INDUSTRY TO AN INFRASTRUCTURE & RETAIL GIANT ELCO’S SHARE PRICE CONSOLIDATED EQUITY CAPITAL REVENUE BREAKDOWN (NIS THOUSANDS) (NIS THOUSANDS) 19,695 6,802 +187% +559% +225% 4,020 6,858 5,216 329 2,344 132 20.02 1,603 1,244 261 8,544 3,009 31.12.2014 27.11.2024 31.12.2014 3
Slide 9: Elco's Development Over the Years
ELCO’S DEVELOPMENT OVER THE YEARS IMPLEMENTING A GROWTH & ENHANCEMENT STRATEGY WHILE REALIZING OPPORTUNITIES IN THE ACTIVITY SECTORS OF GROUP COMPANIES & IDENTIFYING OPPORTUNITIES IN COMPLEMENTARY FIELDS 2015-2016 2019 ELCO ELCO ELCO Realization of assets in Israel and overseas, and reduction of Acq
Slide 10: Elco's Development Over the Years
ELCO’S DEVELOPMENT OVER THE YEARS IMPLEMENTING A GROWTH & ENHANCEMENT STRATEGY WHILE REALIZING OPPORTUNITIES IN THE ACTIVITY SECTORS OF GROUP COMPANIES & IDENTIFYING OPPORTUNITIES IN COMPLEMENTARY FIELDS 2020 2021 2022 2024 ELCO ELCO ELCO ELCO IPO of Electra Power (formerly Supergas) Elco Increase i
Slide 11: Growth & Enhancement While Maintaining Conservative Leverage & Strong Balance Sheet
Growth & Enhancement While Maintaining Strictly Conservative Leverage & Strong Balance Sheet DEVELOPMENT OF ELCO’S EQUITY-TO-SOLO ASSET RATIO 8,701 5,931 6,044 4,861 4,914 4,161 2,620 2,569 1,938 624 31.12.2015 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021 31.12.2022 31.12.2023 3
Slide 12: Maximization of Cash Flows Created by the Held Companies
MAXIMIZATION OF THE CASH FLOWS CREATED BY THE HELD COMPANIES AND THEREBY, BY THE COMPANY DIVIDENDS RECEIVED BY THE COMPANY* Special dividend Electra Electra Power Electra CP Electra Ltd Real Estate 261 245 102 110 116 94 34 62 62 56 2015 2016 2017 2018 2019 2020 2021 2022 2023 1-9/2024 DIVIDENDS DIS
Slide 13: Financial Debt
FINANCIAL DEBT MANAGEMENT OF A CONSERVATIVE LEVERAGE POLICY AND MAINTAINING THE FINANCIAL STABILITY OVER THE YEARS LTV RATIO BASED ON MARKET DATA NET DEBT TO SOLO CAP RATIO 63% 60% 11% 13% 11% 23% 19% 18% 22% 25% 6% 4% 9% 3% 5% 8% 2% 11% 8% 12% 4% 31.12.2015 31.12.2016 31.12.2017 31.12.2018 31.12.20
Slide 14: Elco - NAV Analysis
ELCO - NAV ANALYSIS INVESTMENT BREAKDOWN VALUE (ELCO’S SHARE, IN NIS MILLIONS) VALUATION MODEL Investment in Electra Ltd 3,478 Market Cap as of Nov 27, 2024 Investment in Electra CP 1,001 Market Cap as of Nov 27, 2024 Investment in Electra Real Estate 1,506 Market Cap as of Nov 27, 2024 Investment i
Slide 15: 2024 in the Elco Group – Significant Events & Looking to the Future
September January 2024 in the Elco Group – Significant Events & Looking to the Future
Slide 16: Electra
=LEcCTKA
Slide 17: Key Events During 2024, Until This Presentation's Date of Publication
Key Events During 2024, Until This Presentation’s Date of Publication 1 WINNING HUGE PROJECTS IN BUSINESS STRATEGY TAKING OPPORTUNITIES ISRAEL & OVERSEAS Bar-Ilan University Dormitories GEOKAT Haifa-Nazareth Light Rail Concession Sale of concession holdings and reduction of Acquired a company active
Slide 18: Results
Results *974 11,615 **345 10,852 881 9,052 243 679 8,766 672 200 197 1-9/2023 1-9/2023 1-9/2023 1-9/2024 1-9/2024 1-9/2024 2023 2023 2023 2022 2022 2022 NET PROFIT EBITDA REVENUE * Includes profit from the realization of the Group’s holdings in the concessionaire for the pumped storage project and f
Slide 19: Results Breakdown
Results Breakdown For the Nine Months Ending 14% 10% September 30, 2024 4% 17% 9% Operating 8% 45% 25% Revenue Profit Concessions Real Estate Development Projects Overseas Projects in Israel Operation, Service & Maintenance 52% 16% *Extensive Business Diversification Across Operating Sectors OTHER E
Slide 20: Revenue & Backlog Development
REVENUE & BACKLOG DEVELOPMENT (NIS MILLIONS) A GROWTH COMPANY Revenues Orders Backlog 37,264 12,000 9,419 10,336 29,590 10,000 28,308 8,725 9,000 8,470 CAGR 13% 23,639 8,000 5,903 27,845 9,131 7,000 19,838 2,365 20,865 21,942 2,272 Total backlog 6,000 18,500 17,566 Contractors’ works 5,000 1,967 14,
Slide 21: Electra Real Estate
@=LEcTrRA REAL ESTATE
Slide 22: Key Events During Q3 2024
KEY EVENTS DURING Q3 2024 8 INTEREST RATE CUTS US ELECTIONS EXPECTED DECREASE ESTABLISHMENT OF LOW LEVERAGE ONGOING CASH FLOW IN HOUSING SUPPLY OPPORTUNITY FUNDS & HEDGING OF & DISTRIBUTIONS The Federal Reserve has made two interest rate cuts Donald Trump’s victory may stimulate the US economy UNDER
Slide 23: Consistent, Continuous Growth in the Portfolio & KPIs
CONSISTENT, CONTINUOUS GROWTH IN THE PORTFOLIO & KPIS TOTAL AGGREGATE FUNDS RAISED FOR THE VALUE DEVELOPMENT OF MANAGED REAL ESTATE NOI DEVELOPMENT [3] COMPANY’S PLATFORMS (1) PROPERTIES (3) 100%, $M Current Assets Under 100%, $B Management $5.1B (1,2,4) $5.7B $5.6B $5.3B 10.1 340 9.3 9.6 $3.6B 281
Slide 24: Slide 24
Slide 25: Key Events During 2024, Until This Presentation's Date of Publication
KEY EVENTS DURING 2024, UNTIL THIS PRESENTATION’S DATE OF PUBLICATION1 GROWTH IN ALL SECTORS ELECTRICAL RETAIL F&B RETAIL SPORTS & LEISURE RETAIL ELECTRICAL APPLIANCES Awarded the franchise for the distribution and sale Converted 110 stores – 90% of the conversion Record sales for Columbia and Adida
Slide 26: 2024 – A Transformative Year (Q3)
2024 – A TRANSFORMATIVE YEAR RECORD RESULTS FOR THE GROUP – DOUBLE-DIGIT GROWTH IN SALES & SURGE IN OPERATING/NET PROFIT INCREASE IN NET PROFIT SALES GROWTH & SIGNIFICANT GROUP ACTIVITIES – CONSOLIDATED RESULTS, Q3 2024 RESULTS & NET PROFITS TO SURGE IN OPERATING PROFIT MAJORITY SHAREHOLDERS +9% 33
Slide 27: 2024 – A Transformative Year (1-9/2024)
2024 – A TRANSFORMATIVE YEAR RECORD RESULTS FOR THE GROUP – DOUBLE-DIGIT GROWTH IN SALES & SURGE IN OPERATING/NET PROFIT RETURN TO PROFITABILITY SALES GROWTH & SIGNIFICANT GROUP ACTIVITIES – CONSOLIDATED RESULTS, 1-9/2024 SURGE IN OPERATING PROFIT 49 +15% 36 5,499 +119M +71M Consolidated 1-9/2023 1-
Slide 28: Slide 28
Slide 29: Key Events During 2024, Until This Presentation's Date of Publication
KEY EVENTS DURING 2024, UNTIL THIS PRESENTATION’S DATE OF PUBLICATION1 THE FIRST 100 POSITIVE ESTABLISHED LEADING STATUS AS REDUCTION & EXIT FROM DAYS PLAN MOMENTUM AN ELECTRICITY SUPPLIER NON-CORE ACTIVITIES Horizontal streamlining plan to reduce expenses Improved revenues and EBITDA, Launched a st
Slide 30: Revenue Growth Alongside Improved EBITDA
REVENUE GROWTH ALONGSIDE IMPROVED EBITDA RESULTS FOR 9M & Q3 2024 EBITDA Revenue )NIS Millions( )NIS Millions( +32% +47% +19% 629.8 74.6 56.7 527.9 16.3 234.0 16.1 159.0 Q3 23 Q3 24 9M 23 9M 24 Q3 23 Q3 24 9M 23 9M 24 30 | Capital Market Presentation, November 2024
Slide 31: Discount Investment Corporation
DISCOUNT INVESTMENT CORPORATION.
Slide 32: Key Events During 2024, Until This Presentation's Date of Publication
KEY EVENTS DURING 2024, UNTIL THIS PRESENTATION’S DATE OF PUBLICATION1 FOCUSING ON CORE ASSETS WHILE REDUCING LEVERAGE – FROM A HOLDING COMPANY TO A PROPERTY COMPANY (PROPERTY & BUILDING – GAV-YAM) ACTIVITIES TO ASSET REALIZATION FOCUSING ON CORE ASSETS FOCUS ON THE CORE ASSET – IMPROVE & INCREASE B
Slide 33: Summary: Why Elco?
WHY ELCO? An active, central investment company Prominent leading position in all of its Family attributes – prudent and in the Israeli market, with ~75 years of activity areas conservative while also being proactive experience and taking initiative 2024 has been a year of focus Proven track record
Slide 34: Thank You
Fx: THANK YOU