Seera Holding Group · TADAWUL:1810
Seera — Al Tayyar Travel Group Holding Company — Investor Presentation (April 2015)
37 slides from Seera's investor presentation, April 2015
Slide 1: Investor update presentation
Investor update presentation April 2015
Slide 2: Disclaimer
Disclaimer Information contained in this presentation is subject to change without further notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. Neither we nor our advisors make any representation regarding and assume no responsibility or liab
Slide 3: Table of contents
Table of contents Introduction 4 Strategy update 7 Update on air travel market 9 Overview of ATG 11 Makkah update 18 Financial performance update 25 Conclusion 35
Slide 4: Section 1: Introduction
2 en & «2 Sectioned juinll Al Tayyar — . Introductions
Slide 5: Al Tayyar Travel Group Holding Co (ATG) at a glance
Al Tayyar Travel Group Holding Co (ATG) at a glance With market capitalization of about SAR 22 billion (US$ 5.9 billion), ATG has protected and grew its market share… ATG is the leading integrated travel service provider in the MENA region ATG’s market share in Saudi Air Travel Market In 2013, A
Slide 6: ATG's success story
ATG’s success story Founded as Acquired Acquired JSC Acquired stake in MOHE contract IPO in Acquisition individual Jeddah Travel Samara Travel conversion Al-Shamel Int’l, a extended for June 2012 s of Elegant establishment & Tourism & Tourism MOHE travel 3 years until Acquisition
Slide 7: Section 2: Strategy Update
2 en & «2 Section juinll Al Tayyar ae” Strategy Updaiema™
Slide 8: ATG's business strategy revolves around four key pillars
ATG’s business strategy revolves around four key pillars Key objectives Overview Target/recent developments Establishment of a global call center in Riyadh operating 24/7 with over Consolidate 400 agents servicing ATG’s clients across the world market position Acquisition of corporate focused tr
Slide 9: Section 3: Update on travel market position
Section 3 Update on travel market position
Slide 10: Favorable environment for Saudi Air Travel Market
Economic and market conditions are creating a highly favorable environment for Saudi Air Travel Market ATG’s addressable Air Travel Market continues to grow at a very healthy rates ATG’s market Key growth divers: 26% 27% 27% 29% 30% 31% share (%) Expansionary fiscal policy 35 31.5 Strong private s
Slide 11: Section 4: Overview of ATG
2 en & «2 Section juinll Al Tayyar ae” Overview, Of AiGa™
Slide 12: ATG offers a complete suite of travel services and products
ATG offers a complete suite of travel services and products… Services Recent developments Establishment of global call center in Riyadh ATG became the general sales agent (GSA) for Sudan Air, Ticketing services through state-of-the-art reservation Corporate and which will further increase our
Slide 13: Global and domestic branch network
…through a global and domestic branch network… Branches 2006 2007 2008 2009 2010 2011 2012 2013 2014 Travel & Tourism 70 129 124 149 169 143 151 155 165 Corporate implants 32 34 35 33 37 52 56 56 72 Government 23 22 32 40 44 46 53 53 63 implants Affiliates 30 30 30 39 62 69 69 69 87 Cargo 3 5 6 7 8
Slide 14: New global call center based out of Riyadh
…New global call center based out of Riyadh … Working 24/7 all the year around managing up to 1,500 calls per day Fully equipped building with the support of power recovery generator & data center Capacity 276 work stations, 828 agents on three shifts Current manpower 242 agents, 191 females
Slide 15: Introduction of corporate portal
… and introduction of corporate portal… User friendly corporate portal launched during the 1st Q 2015 (soft opening) Rendering unique services to ATG Government & Corporate accounts Once activated, each corporate client will be provided with a unique user name and password The companies auth
Slide 16: Full suite of products and services to valued client base
…delivering ATG’s full suite for products and services to highly valued client base Growth in government revenue Growth in private corporate revenue Growth in cash sales (Retail) 74 89 102 133 140 1,315 1,399 1,431 1,947 2,029 1.3 1.7 1.8 1.9 2.4 4,000 1,560 2,800 2,581 3,570 1,600 3,124 1,400 2,400
Slide 17: Revenue growth by client type, Q1
…delivering ATG’s full suite for products and services to highly valued client base Growth in government revenue Growth in private corporate revenue Growth in cash sales (Retail) 700 605 494 500 600 1,200 1,053 945 383 462 1,000 400 500 (SAR million) 844 330 380 (SAR million) 400 (SAR million) 800 3
Slide 18: Section 5: Makkah Update
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Slide 19: Saudi government looking to massively increase Makkah capacity
The Saudi government is looking to massively increase Makkah capacity… Religious tourism is a key growth area Government is looking to triple the number of visas granted ... Religious tourism accounts for almost 37% of all inbound trips into 12.71 Saudi Arabia, and more than 50% of all inbound tra
Slide 20: Significant increase in room capacity required
…which requires significant increase in room capacity Religious tourism is a key growth area … and massive number of room nights 47.7% of all religious pilgrims stayed in hotels in 2011 and 2012 101.04 according to the 2012 report published by Center of Tourism 91.82 (Number of nigts in million) R
Slide 21: Representing a substantial growth market
…representing a substantial growth market Religious tourism is a key growth area Translating into large inbound annual air travel spending … Air travel and accommodation account for over 50% of all inbound 35.13 travel expenditures into the Kingdom of Saudi Arabia and in 30.80 particular the relig
Slide 22: Religious tourism strategy: complete vertical integration
ATG’s strategy for religious tourism in Makkah is based on complete vertical integration of the value chain Description Current portfolio ATG has acquired Mawasim, a leading travel and tourism service provider in Makkah Build indigenous operating Mawasim buys rooms in the wholesale market to pro
Slide 23: Horizontal and vertical integration; new 5 star hotel
ATG’s strategy for religious tourism in Makkah is based on complete horizontal & vertical integration of the value chain Description ATG has acquired a new 5 star hotel in Makkah to provide accommodation to its pilgrim clients in Makkah and Madinah. The hotel is located at Jabal El Kaaba and in
Slide 24: Muthmerah is a leading real estate developer in Makkah
Muthmerah is a leading real estate developer and owner in Makkah Muthmerah has developed residential and commercial towers Sheabquresh New Jarwal Tower Name: 3rd Ring Road Masafi Hotel Beer Balela Albawaba 1 & 2 Hotel Hotel Property use: Offices Hotel Hotel Retail Hotel Hotel Distance from Haram: 4
Slide 25: Section 6: Financial performance update
Section 6 Financial performance update
Slide 26: Consistently strong financial performance over three years
ATG has registered consistently strong financial performance over the past three years … Highlights of the income statement In SAR million 2012 2013 2014 Comments Net revenue 5,390 6,260 7,711 ATG has achieved consistent top line growth of about 18% from core ticketing segment Revenue growth 17% 1
Slide 27: Income statement highlights, Q1 2015
ATG has registered consistently strong financial performance over the past three years … Highlights of the income statement In SAR million 1st Q 2013 1st Q 2014 1st Q 2015 Comments Net revenue 1,555 1,790 2,153 ATG has achieved consistent top line growth of 12% Revenue growth 15% 15% 20% from core
Slide 28: Growth driven by organic growth in core business
… driven primarily by organic growth in ATG’s core business … Net revenue by business segment Comments/outlook 7,500 65 92 161 7,000 65 129 65 54 65 129 Ticketing currently contribute close 54 117 5,000 137 117 to 86% of ATG’s net revenue (SARm) 137 (SARm) 3,500 7,457 The contribution from the h
Slide 29: Q1 net revenue by segment and client
… driven primarily by organic growth in ATG’s core business … Net revenue by business segment Comments/outlook 73 2,100 7,000 33 65 65 129 Ticketing currently contribute close 54 15 117 to 83% of ATG’s net revenue 137 (SARm) 33 1,650 3,500 12 The contribution from the hospitality 6,0662,046 (SAR
Slide 30: Robust balance sheet
… with robust balance sheet … Highlights of ATG balance sheet Assets Liabilities and shareholders equity 6,945 6,945 7,000 1,135 Cash and 1,363 Accrued liabilities 6,000 bank 3,250 5,474 985 Trade receivable 973 Trade payables 5,000 1,086 Pre payment & 214 Other Liabilities other current 4,000 asset
Slide 31: Strong cash flow generation capacity
…coupled with strong cash flow generation capacity … Highlights of cash flow statement In SAR million 2011 2012 2013 2014 Comments Cash flow from operations 800 934 1,087 1,261 Cash from change in working 184 281 1,070 (98) capital Net Cash flow from ATG has achieved relatively 616 1,215 2,157 1,1
Slide 32: Cash flow statement, Q1 2015
…coupled with strong cash flow generation capacity … Highlights of cash flow statement In SAR million 1st Q 2013 1st Q 2014 1st Q 2015 Comments Cash flow from operations 244 288 312 Cash from change in working (166) (640) (342) capital Net Cash flow from ATG has achieved relatively 128 (352) (36)
Slide 33: Delivering strong returns to shareholders
…delivering strong returns to shareholders RoA and RoE Net profit and dividends 65% 53% 45% 27% 60% 1,200 1,119 70% 53% 52% 49% 977 1,000 60% 50% 44% 50% 800 755 40% (SARm) 612 40% 28% 28% 30% 600 22% 30% 19% 20% 400 20% 10% 200 10% 0% 0 0% 2011 2012 2013 2014 2011 2012 2013 2014 Net profit Dividend
Slide 34: Returns on assets and equity, Q1
…delivering strong returns to shareholders RoA and RoE Net profit 14% 13% 350 12% 12% 300 280 286 10% 9% 250 218 7% 200 (SARm) 8% 6% 6% 150 4% 4% 100 2% 50 0% 0 1st Q 2013 1st Q 2014 1st Q 2015 1st Q 2013 1st Q 2014 1st Q 2015 ROA ROE Net profit Returns on assets and shareholders equity have seen so
Slide 35: Section 8: Conclusion
2 en & «2 Sections juinll Al Tayyar ae” Conclusion eel
Slide 36: Key investments highlights
Key investments highlights Absolute market leader Well-developed Information Comprehensive product offering Technology platform and developed distribution channels Strong financial capabilities and Large and growing Saudi travel cash flow generation capacity and tourism sector Experienced and stable
Slide 37: Q&A
Q&A Q&A 37
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