Talaat Moustafa Group Holding · EGX:TMGH
Talaat Moustafa — FY2022 Earnings Presentation
37 slides from Talaat Moustafa's earnings presentation, March 2023
Slide 1: IR Presentation FY2022 Update
IR PRESENTATION FY2022 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: Table of contents
Table of contents Company Overview Hospitality segment About TMG Holding 03 TMG’s hotels 21 A renowned and trusted brand 04 Expanding the hospitality portfolio 22 TMG at a glance 06 Financial and operational performance 23 The business model 07 Strong performance confirmed in January 26 Key financia
Slide 3: 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 4: New unique revenue streams originating from the trust granted to our brand
New unique revenue streams originating from the trust granted to our brand Recent bulk sales of prime non-residential and residential properties are the most vital testimony of the strength of our brand and TRUST in our management’s vision, granted to us by the largest local public and private finan
Slide 5: We have full control of the real estate supply in our projects
We have full control of the real estate supply in our projects We provide strategic partners with access to the deep demand for our products through our vast sales network, which opens up an additional source of income Composition of total sales achieved by for the group, at no costs and no risk. TM
Slide 6: TMG at a glance
TMG at a glance [TMGH.CA/TMGH EY] as of FY2022 MENA’s leading developer(1) #1 Egyptian RE developer by backlog(2) #1 Egyptian RE Some 120k units delivered c28mn sqm residual (since inception) 63 77 BuA over 100k / 6.1k units sold developer by market cap 50 51 34 Highest cumulative deliveries by a 23
Slide 7: TMG's business model offers a unique investment opportunity for risk-adverse investors
TMG’s business model offers a unique investment opportunity for risk-adverse investors TMG Holding’s robust business model, experienced management team, as well as its vision and unmatched track record, represents an unique investment opportunity for risk-averse investors, offering exposure to Egypt
Slide 8: Key financial highlights of FY2022
Key financial highlights of FY2022 The successful implementation of management’s long-term vision, grounded on a robust business strategy, is generating continuous improvements in profitability Recurring 26.2% 3% 2% and yielded strong financial results during FY2022 8% Recurring income segments 2% i
Slide 9: Key stock information and price performance
Key stock information and price performance TMGH stock price July 2017 – March 2023 Key facts 15.0 ■ Listed on EGX since 2007 ■ c2,063mn shares outstanding ■ No foreign ownership limits 13.0 ■ Reuters/BBG: TMGH.CA/TMGH EY ■ Member of EGX30 index and MSCI Small Cap Egypt 11.0 index ■ Starting 2013, T
Slide 10: Five main segments delivering stable revenue and contributing immense value to TMG
Five main segments delivering stable revenue and contributing immense value to TMG TMG’s business model encompasses five distinct segments, which are driving the company’s value and which have varying contribution to revenue and gross profit Real Estate Hospitality Leasing (Rentals) Sporting clubs O
Slide 11: Real Estate Development
REAL ESTATE DEVELOPMENT
Slide 12: Real demand supported by strong population fundamentals
Real demand supported by strong population fundamentals A young population provides fertile ground for incremental supply of real estate 75+ 60-74 Female % A young and rapidly growing population Male % 50-59 ■ Egypt has one of the largest population in the world, with the Greater Cairo Age Group 40-
Slide 13: Strong sales performance across projects and products
Strong sales performance across projects and products New sales by project % Impressive real estate sales results in Madinaty, Noor, Celia and Al Rehab cities booked continuously from 2017 are the best testimony of the adequacy of 4% 5% management’s long-term vision and its diligent execution 15% ■
Slide 14: Solid value creation achieved through timely deliveries, superb maintenance and infrastructure
Solid value creation achieved through timely deliveries, superb maintenance and infrastructure Value creation – prices for residential units [EGP/sqm] Value creation – prices for non-residential units [EGP/sqm] New sales [EGPbn] 50 250 32.4 33.2 Thousands EGP Apartments 40 200 Villas Thousands EGP 2
Slide 15: TMG boasts a high-quality, substantial and secure backlog
TMG boasts a high-quality, substantial and secure backlog We have accumulated the largest backlog in Egypt, amounting to EGP77bn, Backlog(1) value by project [EGPbn/%] as a result of the remarkable sales performance lasting since 2017 ■ TMG has built a trusted brand and has accumulated a highly stab
Slide 16: How do we mitigate unforeseen cost increases?
How do we mitigate unforeseen cost increases? Major geopolitical and macroeconomic events are affecting the business environment worldwide, including Egypt, starting with the COVID-19 pandemic, sharp increase in global commodity prices, the devaluation of the EGP and the sharp increase in interest r
Slide 17: Large residual BuA will drive value for the next 20+ years
Large residual BuA will drive value for the next 20+ years Net sales to date Residual BuA by project [mn sqm] by project [mn sqm] Massive residual BuA across all projects, Madinaty 1.2 0.8 sufficient for 20+ years of development 0.9 0.8 1.2 Rehab ■ We estimate TMG’s residual programmed built-up area
Slide 18: TMG's land footprint spreads over 74mn sqm, the largest in the country
TMG’s land footprint spreads over 74mn sqm, the largest in the country On the back of a 50 years-long history, TMG accumulated Our decade-long land purchase contracts with the one of the largest land footprint in the region and the largest Ministry of Housing are also a solid testimony to the trust
Slide 19: Noor launch – unprecedented success in the history of the Group and Egyptian real estate market
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 ■ We launched our new integrated city in front
Slide 20: Hospitality Segment
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Slide 21: TMG's hotels portfolio
TMG’s hotels portfolio TMG is positioned as a leader in the luxury and ultra-luxury tourism industry in Egypt ■ We boasts a portfolio of outstanding and geographically diverse hospitality properties in Egypt, which allow us to attract a more various customer mix, composed primarily by international
Slide 22: Continuing to develop our hospitality portfolio
Continuing to develop our hospitality portfolio TMG continue to expand its hospitality portfolio, on the back of over 20 years of expertise in the sector, with a compelling long-term growth plan and long-lasting successful partnerships with top management companies ■ The Four Seasons Hotel and Priva
Slide 23: Remarkable performance in hospitality division across all properties
Remarkable performance in hospitality division across all properties In FY2022 revenues and EBITDA of the hospitality division delivered the best performance on record since 2018 EBITDA performance and occupancy ■ All four properties delivered strong operational and financial results in FY2022, 1,40
Slide 24: Strong EBITDA performance in hospitality segment during FY2022
Strong EBITDA performance in hospitality segment during FY2022 EBITDA per property EBITDA recovery - Consolidated 1,400 700 598.6 1,175.2 1,200 600 500 1,000 800 EGPmn 400 348.7 EGPmn 300 600 489.8 216.1 377.2 182.2 400 200 152.1 144.7 111.1 70.2 83.1 100 48.1 35.9 51.4 200 0 0 FY21 (actual) FY22 (b
Slide 25: Consistent growth in ARRs during FY2022
Consistent growth in ARRs during FY2022 EGP ARRs per property EGP ARR - Consolidated 12,000 10,985 8,000 6,866 9,000 7,844 6,000 7,520 4,670 5,844 4,057 5,384 EGP 6,000 4,644 5,121 4,208 4,263 4,000 3,456 3,000 2,050 2,281 2,000 0 FY21 (actual) FY22 (budget) FY22 (actual) 0 FS Nile Plaza FS Sharm El
Slide 26: Strong EBITDA performance confirmed in January
Strong EBITDA performance confirmed in January EBITDA per property EBITDA recovery - Consolidated 300 170 119.3 117.2 225 120 200.0 186.2 EGPmn 150 EGPmn 70 52.0 51.9 29.1 18.8 16.0 20 4.9 6.3 1.8 75 28.7 (1.3) (1.0) (30) 0 Jan 22 (actual) Jan 23 (budget) Jan 23 (actual) Jan 22 (actual) Jan 23 (budg
Slide 27: High ARRs achieved in January
High ARRs achieved in January EGP ARRs per property EGP ARR - Consolidated 15,000 12,000 12,612 12,634 12,000 10,223 10,359 8,861 9,051 9,000 9,000 7,005 EGP 6,098 6,449 5,351 5,547 6,000 6,000 4,953 4,314 3,417 3,000 2,325 3,000 0 Jan 22 (actual) Jan 23 (budget) Jan 23 (actual) 0 FS Nile Plaza FS S
Slide 28: Commercial Leasing
COMMERCIAL LEASING
Slide 29: Key aspects of TMG's commercial spaces management strategy
Key aspects of TMG’s commercial spaces management strategy We have expanded supply of commercial spaces consistently with the increase in the population in our areas of interest 115k sqm total GLA Prime properties across TMG’s projects ■ TMG has developed some c400k square meters of prime retail BuA
Slide 30: Strong growth in the retail performance during FY2022
Strong growth in the retail performance during FY2022 as new space becomes operational and existing rents continuously improve Retail revenues 450 +60% 399 Retail operations are continuously growing on the back of new commercial 375 y-o-y areas becoming available for lease 300 249 ■ Revenues from re
Slide 31: 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 32: 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 33: Clubs Segment
CLUBS SEGMENT
Slide 34: TMG Clubs: a fast growing and profitable segment with little cash commitment
TMG Clubs: a fast growing and profitable segment with little cash commitment Club revenues Clubs’ operations growing y-o-y in FY2022, confirming 750 the great interest on the property from the population. 600 ■ Club revenues in FY2022 grew 15% y-o-y, reaching EGP675mn, compared to club revenues in F
Slide 35: Corporate Responsibility & Sustainability
CORPORATE RESPONSIBILITY & SUSTAINABILITY
Slide 36: 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 As a leading developer in Egypt, TMG continues to improving life-quality
Slide 37: Thank you
{| TMG Thank you
Talaat Moustafa Group Holding — FY2022 Earnings Presentation on 6ix