Investor update presentation August 2016
Content Update on Q2 2016 financial performance 4-8 Update on hospitality projects 10-11 Update on E-commerce businesses 13-16 2
Section 1 Update on Q2 2016 financial performance
Sector performance impacted by general macroeconomic environment and government austerity measures Government revenue Corporate revenue cash sales (Retail) revenue online business revenue 1,280 3,000 1,400 300 1,180 2,435 1200 240 2,259 250 2,500 1000 1,050 824 200 2,000 743 (SAR million) (SAR million) (SAR million) 800 (SAR million) 700 150 1,500 600 100 1,000 400 350 50 500 200 7 0 0 0 0 H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 H1 2016 Net revenue from corporate sector Net revenue from retail sector Net revenue from retail sector Net revenue from government sector Performance of government Corporate revenue declined Retail sales declined due to Online businesses have started sector is impacted by reflecting the economic lower consumers spending to contribute in the top line government austerity measure slowdown 4
ATG financial performance showed decline in revenue due to economic slowdown Highlights of the income statement In SAR million Q2 2016 Q2 2015 H1 2016 H1 2015 Comments • ATG top line declined of about -7%, from core ticketing Revenue 2,214 2,387 4,183 4,539 segment -15%, however tourism & COGS (1,741) (1,841) (3,332) (3,553) transportations/others revenue grew by 37% & 19% respectively due to contribution from e-commerce GP 473 545 850 987 business and that is mainly from Almosafer along with Hanay car rental. GPM 21% 23% 20% 22% • Gross margin declined to 21% with +/- 1% fluctuation Selling exp (61) (71) (126) (136) which is considered normal in the business, given that Admin exp (94) (91) (192) (183) the contribution from government sector is less. • Selling expenses decreased compared to last year, as Other operating income 51 42 77 61 a result of cost rationalization plan, however Other income (expense) (21) (3) (36) (8) administrative expenses grew by 4% that is mainly due to payroll of newly acquired company during 2015. EBIT 321 410 534 711 • Other operating income mainly consist of incentives EBIT margin 14% 17% 13% 16% received from airlines and GDSs (i.e. Amadeus, Galileo) Interest (8) (3) (18) (6) • Net profit declined for the period of about -24% but the zakat (10) (10) (20) (21) Normalized net profit decline is -17% after excluding Minority (3) (1) (3) (3) the impact impairment loss recorded on equity investment and impairment loss on intangible assets. Net income 300 396 494 681 Net income margin 14% 17% 12% 15% Ticketing business declined as a main contributor to the top line while tourism and transportation grew because of newly acquired company in 2015 and especially e-commerce initiatives 5
Transportation segment contributed positive performance driven by acquisition in 2015 Net revenue by business segment Comments/outlook 5,000 151 182 • Ticketing currently contributes close to 27 85 76% of ATG’s net revenue 4,000 89 73 (SAR million) • The contribution from the hospitality 3,000 segment, primarily in Makkah, is expected 4,304 2,000 3,911 3,669 to start 2016 1,000 0 H1 2014 H1 2015 H1 2016 Travel and tourism services Cargo Transportation and others Net revenue by client Comments/outlook 82 5,000 • Revenues from government declined by - 77 7%, whereas revenues from corporate and 4,000 79 1,198 1,103 (SAR million) retail clients declined by -10% and -8% 846 3,000 824 respectively 743 655 2,000 • ATG is looking to increase its market 2,435 2,259 share in the retail segment 2,159 1,000 0 H1 2014 H1 2015 H1 2016 Govt Corporates Retail Travel agency Ticketing services contribution is lower on yearly basis because of government austerity measures in favor of tourism and transportation as online business and acquisitions in 2015 started to perform 6
The successful closing of Thakher acquisition has significantly increased the total assets and equity Highlights of ATG balance sheet Assets Liabilities and shareholders equity 10,500 9,449 9,449 654 9,000 Accrued 8,421 Cash and 1,762 liabilities bank 1031 Trade payables 7,500 463 Trade 6,201 1,168 Other liabilities receivable 2,030 623 Pre 6,000 5,474 Bank debts payment & 33 other assets Minority interest 4,500 Fixed 3,000 5,896 Shareholder’s 5,238 assets equity 1,500 0 2013 2014 2015 H1 2016 H1 2016 The vast majority of ATG’s assets are in working capital related to its core operations of ticketing and more importantly to its investments in the hospitality segment in Makkah 7
Cash flow has been impacted significantly due to economic condition Highlights of cash flow statement In SAR million 2013 2014 2015 H1 2015 H1 2016 Comments • During H1 2016 most of Net profit for the year 943 1,119 1,162 681 494 corporates/government clients utilized the Cash from change in working capital 1,214 44 332 (446) (1,056) advances resulting in negative cash flow from operating activities Net Cash flow from operating activities 2,157 1,163 1,493 235 (571) • The majority of investments is related to Cash flow used in investing activities (net) (370) (735) (2,422) (1,644) (235) the acquisition of the Wadi.com and Cash flow from financing activities 26 (42) 984 1,144 570 capitalization of Kenzi hotel Dividend paid (443) (545) (5) - - Increase/decrease in cash 1,370 (158) 50 (265) (236) Cash at beginning 747 2,117 1,959 1,959 2,009 Cash in hand 2,117 1,959 2009 1,680 1,762 Increase in working capital requirements attributed to the austerity measures 8
Section 2 Update on hospitality projects
ATG has invested on a well located projects to complete its vertical integration strategy ATG developed and acquired different hospitality properties to fuel growth Tower Name Prince Majed Rd Hotel Movenipick City star Hotel Sheraton Hotel Property use Hotel Hotel Hotel Location Prince Majed Rd, Jeddah Madina Rd, Jeddah In front of Holy mosque, Makkah No. of rooms/suits 200 228 422 Expected operating income p.a (SAR mn) 20 25 90 Expected delivery Q4 2017 Delivered Q3 2016 Expected market value (SAR mn) 200 260 1,800 Prince Majed Rd Hotel Movenpick City Star Hotel Sheraton Hotel 10
Muthmerah is a leading real estate developer and owner in Makkah Muthmerah has developed residential and commercial towers Albawaba Sheabquresh 3 rd Ring Road Tower Name Masafi Hotel Beer Balela 1 & 2 Hotel Property use Offices Hotel Hotel Retail Hotel Distance from Haram 4 KM 0.3KM 0.3KM NA 0.45KM No of rooms (residential) / GLA 31,300 sqm 192 547 8,298 sqm 491 (office and retail) Expected Rental income p.a (SAR mn) 20 9 28 3 20 Expected delivery Delivered Delivered Delivered Delivered Q1 2017 Expected market value (SAR mn) 350 160 550 33 350 3 rd Ring Road Masafi Hotel Beer Balela Hotel Al Bawaba Shebalquresh Note: Muthmerah owns 3 parcels of land that have been under compulsory purchase order by the government which their book value is over SAR 410 million 11
Section 3 Update on E-commerce businesses
Almosafer is a locally grown hotel booking tool offering more than 500,000 hotels around the globe through Mobile Tablet apps Website Mobile App Call Center Sales Channels 2015 2016 123% 200.0 140% 101% 92% 65% 100% 150.0 124.0 25% 60% -8% SAR million 100.0 20% Growth (%) Financial 55.6 -20% performance 31.4 50.0 19.0 29.0 9.5 -60% 0.0 -100% Q1 Q2 Q3 Q4 Q1 Q2 Sales (Millions) QOQ Growth (%) 150 + 123 % 500K SAR124M SAR300M First Arabic Hotel around Employee Sales growth Total sales Annualized mobile app for the globe in Q2 2016 in Q2 2016 sales in 2016 hotel booking 13
ATG has launched Tajawal as its latest OTA platform from its technology hub Tajawal reflects the latest global developments and insights and is showing strong growth in first few months 14
Wadi has quickly emerged as one of the strongest e-commerce marketplace platform in the region… 3 rd largest by run-rate GMV @ USD 50+ 2 nd largest player by catalog size with One of the most diverse catalogs offered million 150k+ skus by any player Estimated 12 month GMV, USD mn 1 Catalog size, # skus Dedicated fashion 170,456 property. Several new categories added – 450-500 automotive, home, 150,000 sports, home and kitchen 250-300 46,714 Exclusive launches with Infinix Note 2 and 36,452 xtouch 50-60 Well recognized 29,728 marketing properties (Flash Sale and Best 40-50 17,949 Price Guarantee) 15,354 15-25 8,634 500+ suppliers 25+ categories 2,000+ international brands 1.6+ mn sessions/ month 15
… and is becoming well recognized brand in the market # 1 ranking lifestyle app in both KSA and Increasing number of repeat customers Strong ng follo lowe wership ip on socia ial l media ia UAE every quarter Share of repeat customers % of GMV 345 29 337 23 17 299 52 Q2 Q3 Q4 Highest number of followers on twitter , net 125K followers added in just 2 months Bounce rate (% of visitors leaving without any activity on Strong followership on Instagram (~20k site) at industry-best levels of followers) and Facebook (~90k followers) 26.5% Wadi's App install base has grown 3X from 69k to 210k from Nov to Jan 16
Recommend
More recommend
