Talaat Moustafa Group Holding · EGX:TMGH
Talaat Moustafa — Investor Presentation (November 2023)
31 slides from Talaat Moustafa's investor presentation, November 2023
Slide 1: IR Presentation 9M2023 Update
IR PRESENTATION 9M2023 UPDATE TMG Holding S.A.E. مجموعة طلعت مصطفى القابضة +20 2 3331 2000 Publicly held since 2007 34/36 Mossadek St., Dokki .م.م.ش IR@tmg.com.eg EGX: TMGH.CA / TMGH EY الدقي، شارع مصدق٣٤/٣٦ Giza, Egypt www.talaatmoustafa.com مصر،الجيزة
Slide 2: Table of contents
Table of contents Company Overview Hospitality segment About TMG Holding 0 3 TMG’s hotels 18 Key stock information 0 4 Financial and operational performance 20 Introduction to the business segments 0 5 TMG at a glance 0 7 Key financial highlights 0 8 Commercial leasing segment Commercial spaces mana
Slide 3: About TMG Holding
About TMG Holding Talaat Moustafa Group Holding (TMG Holding) is 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 Market capitalization (as of November 2023) cities. It ha
Slide 4: Key stock information and price performance
Key stock information and price performance Key facts TMGH stock performance compared to EGX30 and EGX RE indexes ■ Listed on EGX since 2007 40.00 ■ c2,063mn shares outstanding EGP35.9 ■ No foreign ownership limits 35.00 Latest TP by leading independent market analysts ■ Reuters/BBG: TMGH.CA/TMGH EY
Slide 5: Introduction to the business model and segments
Introduction to the business model and segments Real Estate Hospitality Leasing (Rentals) Sporting clubs Others development Operating Properties: ■ Four Seasons Nile Plaza (Cairo) ■ Four Seasons Sharm El Sheikh ■ Four Seasons San Stefano (Alexandria) Recent projects: ■ Kempinski Nile Hotel Flagship
Slide 6: Financial KPIs
Five main segments delivering stable revenue and contributing immense value to TMG TMG’s robust business model, vision of its management team and unmatched track record, present a unique investment opportunity offering exposure to some of Egypt’s key and rapidly growing economic sectors Real Estate
Slide 7: TMG at a glance
TMG at a glance [TMGH.CA/TMGH EY] MENA’s leading developer(1) #1 Egyptian RE developer Some 120k units delivered 1,041 operational hotel 121k sqm GLA portfolio(3) (since inception) 84mn sqm land footprint by market cap 74mn sqm in Egypt, rooms Over 107k sqm GLA leased and Highest cumulative deliveri
Slide 8: Key financial highlights of 9M2023
Key financial highlights of 9M2023 The successful implementation of management’s long-term vision, grounded in a robust business strategy, is generating continuous growth in profitability and Recurring Recurring income segments 27% yielded strong financial results during 1H2023 3% 3% increase their
Slide 9: Real Estate Development
REAL ESTATE DEVELOPMENT
Slide 10: International expansion: Kingdom of Saudi Arabia
International expansion: Kingdom of Saudi Arabia TMG recently announced international expansion into Saudi Arabia with a 10mn sqm mixed-use sustainable smart city east of Riyadh ■ In September 2023, an agreement to develop a new sustainable city in Riyadh, named Banan, was signed between Talaat Mous
Slide 11: Egypt's real demand supported by strong population fundamentals
Egypt’s 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 % Age Group 50-59 40-49 ■ Egypt has one of the largest population in the world, with the Gre
Slide 12: Similar strong fundamentals drive real demand in KSA
Similar strong fundamentals drive real demand in KSA A relative young population provides fertile ground for incremental supply of real estate A young and rapidly growing population ■ A young population, over 50% of the people living in KSA are less than 30 75+ years old, growing at a relative fast
Slide 13: Strong sales performance across projects and products
Strong sales performance across projects and products The market recognizes the high standards of living and full-service integration in TMG’s projects, as shown by the constant increase in prices TMG core sales by and sales volumes in Egypt, which translates into impressive real estate sales result
Slide 14: 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 confirm the strength and trust placed on our brand and our management’s vision. We now provide reselling services to our partners, in exchange for a fee, introducing a new source of income for the Group, at
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 EGP123bn, 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 sta
Slide 16: Land footprint of over 74mn sqm in Egypt, the largest in the country
Land footprint of over 74mn sqm in Egypt, the largest in the country, as well as additional 10mn sqm in Saudi Arabia On the back of a 50 years-long history, TMG accumulated one of the largest Our decade-long land purchase contracts with the Ministry land footprint in the region and the largest in th
Slide 17: Hospitality Segment
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Slide 18: TMG's current hotels portfolio and future developments
TMG’s current hotels portfolio and future developments TMG is positioned as a leader in the luxury and ultra- Currently operating properties Properties under development luxury tourism industry in Egypt ■ We own a portfolio of outstanding and geographically diverse hospitality properties in Egypt, w
Slide 19: Significant stake in a portfolio of 7 iconic hotels from EGOTH
Significant stake in a portfolio of 7 iconic hotels from EGOTH TMG announced the bid to acquire a significant stake in a portfolio of 7 historical hotels, located across Egypt, from EGOTH, one of the State hospitality and tourism investment vehicles. ■ In July 2023, the company announced its partici
Slide 20: TMG's hotels portfolio performance
TMG’s hotels portfolio performance In FY2022 revenues and EBITDA of the hospitality division delivered EBITDA and occupancy performance [FY2022] the best performance on record since 2018. The strong performance 1,400 was confirmed so far in 2023. 1,150 67% 71% 60% ■All four properties delivered stro
Slide 21: Strong performance in FY2022
Strong performance in FY2022 EBITDA per property EBITDA - Consolidated EGP ARRs per property EGP ARR - Consolidated 12,000 10,985 8,000 700 1,400 599 6,866 1,175 600 1,200 9,000 500 7,844 6,000 7,520 1,000 400 349 4,670 5,844 800 EGP 6,000 5,384 EGPmn 4,057 EGPmn 5,121 300 4,644 4,208 4,263 4,000 21
Slide 22: Strong performance in 9M2023
Strong performance in 9M2023 EBITDA per property EBITDA - Consolidated EGP ARRs per property EGP ARR - Consolidated 15,000 13.7k 12,000 750 1,500 625 11.8k 10,132 1,230 600 12,000 10.9k 526 1,200 8,763 1,022 9.2k 9.2k 9,000 8.7k 450 9,000 372 900 7.4k EGP 6.5k EGPmn EGPmn 308 6.1k 640 5.9k 5,669 300
Slide 23: Commercial Leasing
COMMERCIAL LEASING
Slide 24: Strong growth in the retail performance during 9M2023
Strong growth in the retail performance during 9M2023 as new space becomes operational and existing rents continuously improve Retail operations are continuously growing on the back of an aggressive expansion strategy, Retail revenues with new commercial areas becoming available for lease 525 492 ■
Slide 25: 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 26: 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 27: Clubs Segment
CLUBS SEGMENT
Slide 28: TMG Clubs: a fast growing and profitable segment
TMG Clubs: a fast growing and profitable segment with little cash commitment Club revenues 600 Clubs’ operations growing y-o-y, confirming the great interest on the property from the population. 450 ■ Club revenues in 9M2023 grew 28% y-o-y, reaching EGP516mn, compared to club revenues in 9M2022 of E
Slide 29: Corporate Responsibility & Sustainability
CORPORATE RESPONSIBILITY & SUSTAINABILITY
Slide 30: 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 As the leading developer in Egypt, TMG is at the forefront li
Slide 31: Thank you
{| TMG Thank you
Talaat Moustafa Group Holding — Investor Presentation (November 2023) on 6ix