Tel Aviv Stock Exchange Ltd. · TASE:TASE
Tel Aviv Stock Exchange — Fattal Hotel Group — Investor Presentation (March 2023)
34 slides from Tel Aviv Stock Exchange's investor presentation, March 2023
Slide 1: Capital Market Presentation, March 2023
Capital Market Presentation, March 2023
Slide 2: Disclaimer
Disclaimer This presentation is not the Company’s offer of securities to the public and should not be interpreted as an offer of securities to the public. The presentation constitutes the Company’s principal and marketing presentation. The information included in this presentation and any other info
Slide 3: Fattal Group Business Card
Fattal Group Business Card Establishment of Fattal Group 1998 Countries 20 ¹Hotels 255 1 ¹Rooms 47,125 911 Million NIS 2 Balance of cash and securities Rating: A3.il Positive 1 Including future hotels. 2 As of 31.12.22 3
Slide 4: Number of Hotels
Number of Hotels1 Hotels split by type Europe - 12.22 54 Total 66 7 124 4 Ownership Lease 117 Israel - 12.22 36 Total 22 60 Management 128 2 UK & Ireland - 12.22 17 Total 39 56 216 Other - 12.22 10 Total 1 12 1 12/2022 Active hotels Ownership Lease Management 1 As of 31.12.22 including 19 future hot
Slide 5: Q4 The Strongest Quarter in the Company's History
Q4 The Strongest Quarter in the Company’s History compared with Total 1,840M Total 1,224M Total 1,946M corresponding quarters 692 618 557 577 The company is continuing the trend of strengthening that began in 543 479 539 Q2/2022, and is once again presenting record results 370 347 261 1.7 ADR Q1 Q2
Slide 6: Forward looking view
מבט צופה פני עתיד Forward looking view Revenues1 EBITDAR1 EBITDA1,2 5,446 1,841 868 2019 Million NIS Million NIS Million NIS 3,150 1,224 452 2021 Million NIS Million NIS Million NIS 5,811 1,946 931 2022 Million NIS Million NIS Million NIS 2023 7,200-7,500 2,300-2,600 1,300-1,400 forecast Million N
Slide 7: Fattal Hotel Group on the Map – Countries
Fattal Hotel Group on the Map 1 – 20 Countries 6 51 The UK, Wales Ireland and Scotland 14 The Netherlands 2 4 255 Belgium 63 Poland Hotels Germany 1 Czech Republic 3 10 Switzerland Austria 2 Hungary 12/2022 1 2 6 Italy Romania 216 Active Hotels 18 Portugal Spain 4 8 Greece Cyprus 60 Israel 1 Includi
Slide 8: Occupancy – Guests Return to Hotels
Occupancy – Guests Return to Hotels 2019-2022 Occupancy by month 85.3% 81.8% 83.0% 83.6% 82.0% 77.2% 79.7% 78.1% 81.6% 80.6% 81.3% 72% 73.2% 79.6% 69.2% 76.2% 77.2% 67.7% 66% 72.5% 62.4% 69.6% 66.3% 66.5% 60.1% 63.0% 61.7% 62.6% 57.9% 48.6% 46.6% 46.1% 41.8% 35.9% 31.1% 28.9% 33.8% 26.7% 25.7% 23.9%
Slide 9: Revenue – Guests Return to Hotels
Revenue – Guests Return to Hotels Revenue exceed pre-COVID levels (2019) Quarterly revenue – ( NIS million) 1,756 1,683 1,600 1,519 1,519 1,363 1,045 772 Q1-2019 Q1-2022 Q2-2019 Q2-2022 Q3-2019 Q3-2022 Q4-2019 Q4-2022 9
Slide 10: Increase in Average Daily Revenue per Room (ADR) Q4
Increase in Average Daily Revenue per Room1 (ADR2) Q4 Dealing With the Effects of Inflation and Rising Expenses 11.1% 15.6% 41.8% 20% 2019>2022 2019>2022 2019>2022 2019>2022 ₪987 € 148 € 144 £173 € 128 € 127 € 120 € 110 ₪932 £122 £121 ₪888 2019 2021 2022 2019 2021 2022 2019 2021 2022 2019 2021 2022
Slide 11: The Group's Strategy Moving Forward
The Group’s Strategy Moving Forward Strengthening the activity and international geographic expansion in areas of demand while maintaining high rates of return Collaborate to reduce risk and increase expansion options Maintain the company’s stable leverage over time with an emphasis on strong cash f
Slide 12: Global Tourism Is Back
Global Tourism Is Back International tourists (in millions)1 Tourists entering Israel (in millions)2 4.6 4.1 1,466 1,403 1,329 3.6 1,241 1,193 1,141 1,095 3 1,043 2.9 2.9 2.8 2.9 2.7 917 446 0.8 0.4 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 13: Looking Ahead - Opening Hotels in the Coming Years
Looking Ahead - Opening Hotels in the Coming Years1 (excluding hotels under Hotel Partnership in Europe) Germany 2 486 €81 Israel 2 269 ₪230 Israel *2 328 ₪295 Israel **5 694 ₪670 Cyprus *2 359 €5 UK 1 125 €38 UK 1 207 €33 Owned Ireland *1 175 €25 Portugal 1 132 €25 Portugal *1 560 €23 Greece 1 130
Slide 14: Upcoming Israel hotel openings
Luxury Resort in the Hotel Botanica | Haifa Jerusalem|NYX Heart of the Desert Palatin Hotel | Tel Aviv The MIDBAR resort ("Desert") will include An iconic building in the heart of Tel Aviv with The new and luxurious Hotel Botanica A lifestyle hotel in the heart of 109 rooms with private pools, a lux
Slide 15: Growth Engine - Establishing a Hotel Partnership in Europe
Growth Engine - Establishing a Hotel Partnership in Europe investment Investment commitment of commitment of EUR 100 million EUR 381 million Investment commitment of Investment commitment of EUR 100 million EUR 100 million Investment commitment of Partners Investment commitment of EUR 35 million EUR
Slide 16: Partnership in Europe
Growth Engine - Establishing a Hotel Partnership in Europe 549M€ The Value of Spain - Malaga, Mallorca, Ibiza, Barcelona 1,748 9 Hotels transactions signed as of today Cyprus - Larnaca, Latchi 206 2 Hotels Poland - Krakow 60 1 Hotel Greece - Nafplio 105 1 Hotel 900M€ Austria - Vienna 211 1 Hotel tot
Slide 17: Hotel The Dilly | The Grand Brighton
Hotel "The Dilly" | London Hotel “The Grand Brighton” Opened in 1908, the iconic Dilly Hotel is centrally located between Piccadilly and The 5-star Grand Brighton Hotel is £7.5m £16m £90m £75m considered one of the iconic and well- Expected Regent Street in the heart of London. Expected Estimated NO
Slide 18: Identifying Trends in a Changing Market
Identifying Trends in a Changing Market ROOMS SWITCHUP MASTER FATTAL LIMITED 7MINDS Coworking spaces A service providing a Offering a unique TERMINAL EDITION A company for the real estate solution for hospitality establishment, Offering work A luxurious The company's companies looking to experience
Slide 19: The Group's Financial Results
The Group’s Financial Results 31.12.22 19
Slide 20: Main Financial Data – Revenues
Main Financial Data –Revenues1 (NIS millions) Q4 Results Annual Results Record results for the year Record quarterly results 5,811 1,683 5,446 1,899 1,875 1,363 1,776 1,773 584 1,709 1,701 3,150 1,033 490 487 448 443 1,316 404 359 342 929 295 768 164 387 37 26 137 137 Q4-2019 Q4-2021 Q4-2022 2019 20
Slide 21: Main Financial Data – EBITDAR
Main Financial Data - EBITDAR 1 (NIS millions) Q4 Results Record quarterly Annual Results Record results for the results year 539 1,946 1,841 478 230 735 685 207 1,224 633 623 347 168 166 478 473 431 129 404 120 100 91 275 81 155 43 12 67 17 52 Q4-2019 Q4-2021 Q4-2022 2019 2021 2022 Israel Europe UK
Slide 22: Main Financial Data – EBITDA
Main Financial Data - EBITDA 1 (NIS Millions) Prior to the Impact of Standard IFRS 16 Annual EBITDA of approximately NIS 1,110 million, excluding the first quarter of Omicron2 (approx. 28% higher than in 2019) Q4 Results Annual Results Record results for the Record quarterly year results 931 264 210
Slide 23: Segmentation of quarterly revenue from the same assets – Q4
Segmentation of quarterly revenue cycle from the same assets– Q4 Revenue 1,683 Q4/2022 Revenue from new 290 assets Approximately NIS 160million derives from a decrease in the exchange rate The influence of currency exchange -160 rate changes Increase in revenue income same assets excluding the effec
Slide 24: Segmentation of quarterly EBITDAR from the same assets – Q4
Segmentation of quarterly EBITDAR from the same assets– Q4 EBITDAR 539 618 Q4/2022 Revenue from new assets 90 Approximately NIS 55million derives from a decrease in the exchange rate The influence of currency exchange -55 rate changes Increase in revenue income from same assets excluding the effect
Slide 25: EBITDAR Split and Revenue Split – Q4/2022
EBITDAR Split – Q4/2022 Revenue Split – Q4/2022 Other Other Israel Israel 8% 10% Europe 18% 26% Europe 35% 43% 31% 29% UK & Ireland UK & Ireland Including the relative part of hotels under 50% ownership. 25
Slide 26: Revenue Split and EBITDAR Split – 2022
EBITDAR Split –2022 Revenue Split–2022 Other Other Israel Israel 8% 7% Europe 24% 31% Europe 32% 35% 33% 30% UK & Ireland UK & Ireland Including the relative part of hotels under 50% ownership. 26
Slide 27: Debt and Leverage Ratios in a Growing Company
Debt and Leverage Ratios in a Growing Company What’s our Target? 27
Slide 28: Key Debt Metrics
Key Debt Metrics(NIS millions) Debt and average interest rate Split by debt type as of 31.12.22 15% 14% Approx 67% 2,470 at fixed 2.7% interest rate 12% Total net debt as of 31.12.22 28 5,152 1,108 million NIS 896 5.8% 864 41% 749 18% 2.4% 4.7% 2.1% Linked toשקלי צמוד Israeli ICP קבוע לא צמודN
Slide 29: Financial Ratios
Financial Ratios 1 (NIS Millions) Gradual increase in the equity-to-total assets ratio Declining debt/EBITDA ratio 35.3% 7.89 6.34 6.10 5.80 30.5% 752 29.6% 665 693 547 28.2% 27.4% 26.1% 26.2% Dec-19 Dec-20 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 3.22 6.22 9.22 12.22 EBITDA-12 Months EBITDA -לratio EBI
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet (NIS millions) Dec-22 Dec-22 Dec-21 Data prior to As shown in the Impacts of implementation Financial IFRS16 of IFRS16 Statements Current Assets 1,645 )58( 1,587 1,405 Long Term Investments and Other Assets 3,433 11,865 15,298 13,906 Fixed Assets 6,674 - 6,674 5,488 Total
Slide 31: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement (NIS million) 1-12/22 1-12/22 1-12/21 Data prior to As shown in the implementation Impacts of Financial of IFRS16 IFRS16 Statements Revenues from Hospitality Services and Others 5,471 - 5,471 3,041 Total Operating Expenses 3,646 - 3,646 1,854 Operating income b
Slide 32: Giving Back to the Community
Giving Back to the Community Establishment of a motel for children with cancer and their families in Haifa (Rambam Hospital) and Tel Aviv (Ichilov Hospital). The "Lev Fattal Ichilov" motel opened in March 2023 and the motel in Haifa (Rambam) is expected to open later in 2023. The Company intends to
Slide 33: Summary
Summary 01 02 03 04 Debt - The Company's The Covid-19 crisis 2022 – Looking ahead – continued is behind us – and Record results growth: enhancing of management estimates we came out of it existing hotels, adding new that it will achieve a stronger hotels, successful debt ratio of about 4.5 partnersh
Slide 34: Thank you for your attention!
Thank you for your attention!
Fattal Hotel Group — Investor Presentation (March 2023) on 6ix