9M 2018 Results November 12, 2018 · 2018-11-11 · Tourism in Egypt witnessed a positive momentum...
Transcript of 9M 2018 Results November 12, 2018 · 2018-11-11 · Tourism in Egypt witnessed a positive momentum...
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9M 2018 Results
November 12, 2018
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9M 2018 Key Highlights & Destination Progress Page 3
9M 2018 Financials Highlights Page 11
9M 2018 Appendix Page 17
Agenda
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El Gouna, Egypt 9M 2018 UpdatesKPIs 9M 2018 9M 2017 % ChgHotels
Total Number of rooms 2,650 2,698 (1.8%)
Occ. for available rooms (%) 79 75 5.3%
TRevPAR (CHF) 64 47 36.2%Real EstateNet Sales (CHFmn) 84.8 52.7 60.9%No of Contracted Units 247 173 42.8%Avg. Selling Price (CHF/m2) 2,166 1,898 14.1%
▪ Net real estate sales increased by 60.9% to CHF 84.8 million in 9M
2018.
▪ Hotels GOP increased by 45.7% to CHF 22.9 million vs. CHF 15.8 million
in 9M 2017.
▪ In September 2018, we launched a new real estate project called
“Cyan” with a total inventory of USD 73 million & managed to sell all of
Phase 1; approximately USD 23 million.
▪ Planning to add 200 rooms into the existing hotels in addition to a new
hotel with 100 rooms in 2019.
▪ Progressing with the renovation works across our hotels to be finalized
during Q1 2019.
▪ Assigned CBRE Group Inc, to value the 22.9 million sqm undeveloped
land plus the 17 hotels. The report valued El Gouna them at USD 2.1
billion, 42 times its current book value.
▪ Successfully hosted the 2nd edition of El Gouna Film Festival in
September 2018. Our hotel’s occupancy at the time reached 100%.
Revenues (CHFmn)Hotels 46.2 34.3 34.7%Real Estate 43.5 23.1 88.3%Destination Management 20.5 15.3 34%Total El Gouna Total Revenues 110.2 72.7 51.6%
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Hawana Salalah, Oman 9M 2018 Updates▪ Net real estate sales increased by 89.3% to reach CHF 19.5 million.
▪ Targeting to increase real estate sales by 10% - 15% in 2018 vs. the
CHF 16.5 million in FY 2017.
▪ Progressing ahead with the construction of Hawana Lagoon real
estate project to be finalized in 2019.
▪ Launched a new real estate project “Forest Island” in Q3 2018
with a total inventory of CHF 28.9 million and managed to sell
more than CHF 7 million.
▪ Hotels revenues increased by 20.6% to CHF 28.1 million in 9M
2018 and GOP increased by 40% to CHF 9.8 million vs. CHF 7.0
million in 9M 2017.
▪ Progressing ahead with the construction works for 177 new rooms
in Al Fanar Hotel to be finalized this year. Thus bringing the total
number of rooms in Hawana destination to 1,081 room.
KPIs 9M 2018 9M 2017 % Chg
Hotels
Total Number of rooms 904 784 15.3%
Occ. for available rooms (%) 64 68 (5.9%)
TRevPAR (CHF) 114 109 4.6%
Real Estate
Net Sales (CHFmn) 19.5 10.3 89.3%
No of Contracted Units 159 87 82.8%
Avg. Selling Price (CHF/m2) 1,716 1,511 13.6%
Revenues (CHFmn)
Hotels 28.1 23.3 20.6%
Real Estate 6 2.9 106.9%Destination Management 0.6 0.3 100%Total Hawana SalalahTotal Revenues 34.7 26.5 30.9%
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Jebal Sifah, Oman 9M 2018 Updates▪ Net real estate sales reached CHF 16.3 million in 9M 2018 up 83.1%.
▪ Targeting to increase real estate sales by 50% - 55% in 2018 vs. the
CHF 11.8 million in FY 2017.
▪ On track with the construction of phase one of the “Golf Lake
Residence project” compromising 131 units.
▪ In October 2018 we launched Phase 2 of “Jebal Sifah Heights” with a
total inventory of CHF 19.1 million.
▪ Additional pontoons are being installed at the Marina to be finalized
in Q1 2019. The marina workshop is being finalized & an enhanced
water taxi service has been launched.
▪ The destination will host the region’s 1st X-Dubai Spartan TRIFECTA
race in December 2018 with more than 4,000 participants & visitors.
Financials & KPIs 9M 2018 9M 2017 % Chg
Hotels
Total Number of rooms 67 67 -
Occ. for available rooms (%) 35 32 9.4%
TRevPAR (CHF) 87 92 (5.4)
Real Estate
Net Sales (CHFmn) 16.3 8.9 83.1%
No of Contracted Units 104 45 131.1%
Avg. Selling Price (CHF/m2) 1,925 1,887 2%
Revenues (CHFmn)
Hotels 1.6 1.7 (5.9%)
Real Estate 11.2 2.9 286.2%
Destination Management 0.8 0.4 100%
Total Jebal Sifah
Total Revenues 13.6 5 172%
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Luštica Bay, Montenegro 9M 2018 Updates
▪ Net sales up 105.3% to CHF 26.9 million in 9M 2018.
▪ Real estate sales is expected to double in 2018 vs. the CHF 17.2
million in 2017.
▪ Held the soft opening for the first hotel in the destination the
“Chedi Luštica Bay” with 111 rooms, occupancy reached 65% in
the first days. Very positive feedback from guests - financial
contribution to be recognized in Q4 2018.
▪ Opened the first phase of the main marina with 52 berths.
▪ Progressing ahead with construction of the town homes & the
villas in the marina village area along with “E” & “B” building
clusters comprising 68 apartments due for delivery in 2018 and
early 2019.
KPIs 9M 2018 9M 2017 % Chg
Hotels
Total Number of rooms 111 - -
Occ. for available rooms (%) 65 - -
TRevPAR (CHF) 213 - -
Real Estate
Net Sales(CHFmn) 26.9 13.1 105.3%
No of Contracted Units 38 44 (13.6%)
Avg. Selling Price (CHF/m2) 6,467 4,578 41.3%
Revenues (CHFmn)
Total Revenues 18.7 20.2 (7.4%)
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Makadi Heights & Taba Heights Egypt 9M 2018 Updates
Makadi Heights Updates:
▪ Net sales increased 103 times to CHF 10.3 million vs. only CHF
0.1 million in 9M 2017.
▪ Raised our real estate target of the year to CHF 14.0 million.
* Finalizing all documentation for the sale of our earlier
communicated 3 hotels in Makadi for a total EV of CHF 49 million
with cash proceeds of CHF 27.4 million and the deconsolidation of
CHF 14.4 million of debt.
KPIs 9M 2018 9M 2017 % ChgReal EstateNet Sales (CHFmn) 10.3 0.1 -No of Contracted Units 131 3 -Avg. Selling Price (CHF/m2) 845 264 220.1%
KPIs 9M 2018 9M 2017 % ChgHotels
Total Number of rooms 2,365 2,365 -Number of rooms available 1,260 992 27%
Occ. for available rooms (%) 35 31 12.9%
TRevPAR (CHF) 16 11 45.4
Taba Heights Updates:
▪ Hotels revenues increased by 77.4% to CHF 5.5 million vs. CHF
3.1 million in 9M 2017 with occupancy rates of 35%
▪ For the first time since 2010 Taba recorded a positive GOP of
CHF 0.1 million vs. a GOP loss of CHF 0.3 million in 9M 2017.
▪ Signed a deal with Itaka; a Polish tour operator to send 2
weekly planes “back to back”, to Taba Airport. Itaka will also
add 2 more planes during 2019, which in total would increase
their contribution to Taba’s room nights to 45,000.
Revenues (CHFmn)Hotels* 3.0 2.6 15.4%Real Estate 0.3 0.1 200%Destination Management 0.7 0.3 133.3%Total MakadiTotal Revenues (CHFmn) 4 3 33.3%
Revenues (CHFmn)
Hotels 5.5 3.1 77.4%
Destination Management 1.6 1.4 14.3%
Total Taba Heights
Total Revenues (CHFmn) 7.1 4.5 57.8%
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9M 2018 Key Highlights & Destination Progress Page 3
9M 2018 Financials Highlights Page 11
9M 2018 Appendix Page 17
Agenda
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Key Highlights 9M 2018Orascom Development Holding AG: Continues to deliver strong KPIs across all its destinations and more than doubles its cash
generation from its operations.
➢ Revenues grew by a solid 33.4% to reach CHF 227.8 million in 9M 2018 vs. CHF 170.8 million in 9M 2017.
➢ Gross Profit increased by a significant 82.3% Y-o-Y to CHF 68 million in 9M 2018 vs. CHF 37.3 million in 9M 2017.
➢ Adj. EBITDA witnessed remarkable growth of 182.7% Y-o-Y to CHF 45.8 million in 9M 2018.
➢ Cash from Operations increased by 252.3% to reach CHF 31 million in 9M 2018.
➢ Net Debt to Adjusted EBITDA continues to improve, from 14.5x in FY 2016 to 8.5x in FY 2017 and now to 3.5x in in the twelve
months period ended 30 September 2018.
➢ Adjusted net losses excluding one offs reached CHF 22.2 million vs. adjusted net losses of CHF 44.2 million in 9M 2017 (one-
offs include: forex losses or gains along with any non-operational one-off transactions). (Reported net loss reached CHF 29.6
million in 9M 2018 vs. CHF 30.3 million in 9M 2017).
Real Estate:
➢ Net real estate sales significantly increased by 83.5% to CHF 158 million.
➢ Real estate revenues surged by 61.1% to CHF 79.6 million on the back of increased unit deliveries in El Gouna, Jebal Sifah,
Hawana Salalah and Luštica Bay.
➢ Deferred revenues increased by 19.7% to reach CHF 213.6 million vs. CHF 178.5 million in 9M 2017. The Group also has a
deferred interest income CHF 15.1 million.
Hotels:
➢ Tourism in Egypt witnessed a positive momentum with the return of first flights from Russia and Milan.
➢ Hotels revenue grew 21.4% to CHF 109.9 million in 9M 2018, accompanied by 41.7% increase in GOP from CHF 30 million to
CHF 42.5 million in 9M 2018.
➢ Adjusted EBITDA increased by 38.8% to CHF 37.9 million vs. CHF 27.3 million in 9M 2017.
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Key Highlights 9M 2018
Town Management:
➢ Town management revenues continues its uptrend momentum with a 34% increase to CHF 25.6 million as a result of
increasing scale across all our destinations.
Corporate Updates:
➢ CBRE report values El Gouna Hotels and undeveloped land at USD 2.1 billion 42 times its current book value.
➢ Orascom Development Egypt (ODE); the subsidiary, will officially launch its newly 1,000-feddan project in Sixth of
October, Egypt (O-West) in Q1 2019.
➢ Finalizing the legal documentation for the previously announced sale of our 3 hotels in Makadi and Tamweel Group.
➢ In parallel, we are working diligently on our plan with the banks to reduce our debt on the Egyptian subsidiary with plans
to be finalized in Q1 2019.
➢ Finalizing the new debt package in Oman by end of the year.
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(CHF mn) Q3 2018 Q3 2017 9M 2018 9M 2017
Revenue 72.2 62.2 227.8 170.8
Cost of sales (53.7) (50.0) (159.8) (133.5)
Gross profit 18.5 12.2 68.0 37.3
Gross profit margin 25.6% 19.7% 29.8% 21.8%
Investment income 2.0 1.9 5.6 4.0
Administrative expenses (9.7) (8.9) (27.8) (25.1)
Adj. EBITDA 10.8 5.2 45.8 16.2
Adj. EBITDA margin 15.0% 8.4% 20.1% 9.5%
Other gains & losses (0.6) 3.0 (8.5) 11.3
Share of associates losses (4.6) (3.6) (12.2) (11.8)
EBITDA 5.6 4.6 25.1 15.7
Depreciation (5.4) (6.0) (16.5) (17.8)
Finance costs (11.0) (8.3) (30.3) (24.7)
Income tax expense (2.4) (1.3) (7.9) (3.5)
Net losses for the period (13.2) (11.0) (29.6) (30.3)
Attributed as follows:
ODH shareholders (12.8) (11.4) (30.5) (30.3)
Non-controlling interest (0.4) 0.4 0.9 (0.01)
Basic EPS (CHF) (0.32) (0.29) (0.77) (0.76)
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Notes
Revenues and gross profit increased due tothe enhanced operational performanceacross all business segments.
Investment income increased mainly due to:• The increase in real estate cash collection.• Increase in interest income on bank
deposits.
Other gains and losses for 9M 2018 mainlyincludes:
• FX translations losses of CHF 16.7mn• FX revaluation gain of CHF 3.1mn
While 9M 2017 figures included:
• Gains in relation to settlement ofborrowings in the amount of CHF 6.4mn.
• FX gain of CHF 5.3mn.
Increase in Finance costs mainly due to:• Increase in interest rates.
Income Tax expense increased due to theincrease of the profitability of thesubsidiaries.
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Income Statement
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(CHF mn) Q3 2018 Q3 2017 9M 2018 9M 2017
Revenue 72.2 59.6 224.7 165.0
Cost of sales (53.7) (48.5) (158.1) (130.0)
Gross profit 18.5 11.1 66.6 35.0
Gross profit margin 25.6% 18.7% 29.6% 21.2%
Investment income 2.0 1.9 5.6 4.0
Administrative expenses (9.7) (8.9) (27.8) (25.1)
Adj. EBITDA 10.8 4.1 44.4 13.9
Adj. EBITDA margin 15.0% 6.9% 19.7% 8.4%
Other gains & losses (0.2) (0.2) (0.1) (0.6)
Share of associates losses (4.6) (3.6) (12.2) (11.8)
EBITDA 6.0 0.3 32.1 1.5
Depreciation (5.4) (6.0) (16.4) (17.5)
Finance costs (11.0) (8.3) (30.0) (24.7)
Income tax expense (2.4) (1.3) (7.9) (3.5)
Net losses for the period (12.8) (15.3) (22.2) (44.2)
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Notes
Took out Citadel Azur Hotel revenues sincethe beginning of the year for bothcomparable periods as it was sold in May2018.
Excluded all the FX gains and losses and allone off gains or losses for both comparableperiods.
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Income Statement pro-forma
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Balance SheetNotes
PPE decreased mainly due to disposal of CitadelAzur Hotel.
Inventory decreased mainly due to the adoptionof the new revenue standard (IFRS 15) as well asincrease in the completed and delivered units.
Cash and bank balances increased as a result ofthe sale of Citadel Azur hotel on May 2018.
Asset and liabilities held for sale include thefollowing:• Tamweel Group.• Makadi hotels.
Borrowings decreased mainly due to• (-) Payments of CHF 25.9mn.• (-) CHF 17.6mn related to Citadel Azur Hotel
which sold out in May 2018.• (-) FX gain amounting CHF 0.8mn.• (+) Proceeds amounting CHF 4.2mn.• (+) Capitalized interest amounting CHF 0.2mn.
• Increase in non-controlling interest is mainlydue to the sale of the 8.2% stake in theEgyptian subsidiary ODE in April 2018.
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(CHF mn) 30.09.18 31.12.17
Property, plant and equipment 741.1 765.1
Inventory 120.6 127.6
Receivables 129.5 107.0
Cash and bank balances 118.3 99.4
Investments in associates 48.6 60.8
Other assets 100.2 80.8
Non-current assets held for sale 105.3 107.0
Total assets 1,363.6 1,347.7
Borrowings 334.8 374.7
Payables 45.4 51.0
Provisions 66.7 65.6
Other liabilities 240.4 210.4
Liabilities related to assets held for sale
79.4 84.4
Total liabilities 766.7 786.1
Non-controlling interests 158.6 149.1
Equity attributable to ODE shareholders
438.3 412.5
Total liabilities and equity 1,363.6 1,347.7
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Financing profile1
Current Maturity Profile & Balance in 2018
Cost of Debt: 9.3%9M 2018 Balance: CHF 334.8mn
Cost of Debt: 8.7%
Maturity Profile after Oman Rescheduling
1 All debt figures exclude debt relating to (Assets Hels for Sale Tamweel, Royal and Citadel Azur).
Current Debt by CountryCurrent debt by currency
Debt by currency after Oman Rescheduling Debt by Country after Oman Rescheduling
93
39
5461
6773
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CF 2018 2019 2020 2021 2022 2023 2024 2025 -2032
12%
53%
7%
7%
21% EGP
USD
EUR
AED
OMR
69%
21%
7%
3%
Egypt
Oman
UAE
Montenegro
91
2133 32 34
75
41
82
CF 2018 2019 2020 2021 2022 2023 2024 2025 -2032
8%
47%
7%
7%
30%
EGP
USD
EUR
AED
OMR
60%30%
7%
3%
EGYPT
Oman
UAE
Montenegro
Balance: CHF 328mn
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Cash Flow Statement
(CHF mn) 9M 2018 9M 2017
Cash from operations 31.0 8.8
Interest paid (23.0) (6.4)
Taxes paid (6.0) (2.3)
Operating Cash Flow 2.0 0.1
Payments for PP&E (33.4) (18.9)
Other items 29.6 7.3
Investing Cash Flow (3.8) (11.6)
Change in Borrowings (11.6) 29.3
Proceeds from disposal of non-controlling interest of consolidated subsidary
32.7 -
Other Items 2.4 0.1
Financing Cash Flow 23.5 29.4
Net change in cash/equivalents 21.7 17.9
Cash & bank balances beginning ofperiod
103.7 82.2
Effects of FX changes (0.9) (1.6)
Cash & bank balances end of period* 124.5 98.5
Notes
Cash flow from operations and operatingcash flow increased due to the enhancedoperational performance across allbusiness segments during the period.
Payments for PP&E increased due to theincrease in construction activities inLuštica Bay, El Gouna and Oman.
Other Items increased mainly due to thesale of Citadel Azur hotel in May 2018.
Change in Borrowings mainly resultingfrom:(-) Debt repayment of CHF 26mn.(+) Debt proceeds for CHF 14.4mn.
Proceeds from disposal of non controllinginterest is related to the Sale of 8.2%stake in the Egyptian subsidiary ODE inApril 2018.
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9M 2018 Key Highlights & Destination Progress Page 3
9M 2018 Financials Highlights Page 11
9M 2018 Appendix Page 17
Agenda
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Business Segments 9M and Q3 2018
1 Adjusted EBITDA: EBITDA adjusted for non cash items (which includes provisions & impairments, other gains and losses, FX gains & share in associates)2 9M 2017 figures includes gains in relation to settlement of borrowings in the amount of CHF 6.3mn.3 Town Management includes revenues from Utilities & services, Hospital, Marina, Golf, Rentals, Educational services, Limousine, & other town amenities.
Revenue EBITDA Adj. EBITDA1
(CHF mn) 9M 2018 9M 2017 Δ in % 9M 2018 9M 2017 Δ in % 9M 2018 9M 2017 Δ in %
Hotels2 109.9 90.5 21.4% 37.3 33.0 13.0% 37.9 27.3 38.8%
Real Estate 79.6 49.4 61.1% 30.5 9.2 231.5% 31.8 8.7 265.5%
Land - - - - - - - - -
Town Management3 25.6 19.1 34.0% (2.0) (4.8) (58.3%) (1.8) (4.7) (61.7%)
Tamweel Group 12.7 11.8 7.6% 2.9 2.9 - 3.2 3.1 3.2%
Corporate & Unallocated Items - - - (43.6) (24.6) 77.2% (25.3) (18.2) 39.0%
ODH Group 227.8 170.8 33.4% 25.1 15.7 59.9% 45.8 16.2 182.7%
(CHF mn) Q3 2018 Q3 2017 Δ in % Q3 2018 Q3 2017 Δ in % Q3 2018 Q3 2017 Δ in %
Hotels2 36.6 31.8 15.1% 11.7 9.8 19.4% 11.7 9.7 20.6%
Real Estate 21.6 19.0 13.7% 8.0 3.0 166.7% 8.2 2.9 182.8%
Land - - - - - - - - -
Town Management3 9.7 7.2 34.7% (1.0) (2.5) (60.0%) (0.9) (2.4) (62.5%)
Tamweel Group 4.3 4.2 2.4% 1.0 0.8 25.0% 1.2 1.0 20.0%
Corporate & Unallocated Items - - - (14.1) (6.5) 117% (9.4) (6.0) 56.7%
ODH Group 72.2 62.2 16.1% 5.6 4.6 21.7% 10.8 5.2 107.7%
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Real Estate KPIs 9M & Q3 2018
Net value of contractedunits (CHF mn)
Number of contractedunits
Average selling price (CHF/m2)
Country Destination 9M 18 9M 17 9M 18 9M 17 9M 18 9M 17Egypt El Gouna 84.8 52.7 247 173 2,166 1,898
Fayoum 0.2 1.0 4 16 575 606 Makadi 10.3 0.1 131 3 845 264
Oman Jebel Sifah 16.3 8.9 104 45 1,925 1,887 Salalah Beach 19.5 10.3 159 87 1,716 1,511
Montenegro Luštica Bay 26.9 13.1 38 44 6,467 4,578 ODH Group 158.0 86.1 683 368 2,088 1,948
Country Destination Q3 18 Q3 17 Q3 18 Q3 17 Q3 18 Q3 17Egypt El Gouna 26.2 13.7 81 44 2,193 2,137
Fayoum 0.1 0.3 2 2 647 1,415Makadi 4.3 0.1 50 2 825 254
Oman Jebel Sifah 2.7 0.9 14 4 2,197 1,599 Salalah Beach 7.7 10.1 64 86 1,787 1,499
Montenegro Luštica Bay 18.4 9.5 22 30 6,545 5,547 ODH Group 59.4 34.5 233 168 2,321 2,173
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Deferred Revenue Recognition Schedule*
(CHF mn)
Country Destination Deferred Revenue Balance 2018 2019 2020 2021
Egypt El Gouna 118.1 13.2 75.0 22.8 7.1
Fayoum 1.4 - 0.7 0.7 -
Makadi 10.1 2.0 4.0 4.0 -
Total Egypt 129.6 15.2 79.7 27.5 7.1
Oman Jebel Sifah 26.8 5.1 12.7 5.0 4.0
Salalah Beach 30.7 7.4 20.4 2.3 0.6
Total Oman 57.5 12.5 33.1 7.3 4.6
Montenegro Luštica Bay 26.5 17.4 9.2 - -
ODH Group 213.6 45.1 122.0 34.8 11.7
* Figures are rounded to the nearest decimal point.
* It is also important to note in addition to the outstanding deferred revenue balance; the Group also hasa deferred interest income CHF 15.1 million.
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Hotel KPIs 9M 2018
Total number of hotel rooms
Occupancy for available rooms (%)
TRevPAR*(CHF)
GOP PAR**(CHF)
Destination 9M 18 9M 17 9M 18 9M 17 9M 18 9M 17 9M 18 9M 17
El Gouna 1 2,650 2,698 79 75 64 47 32 22
Taba Heights2 2,365 2,365 35 31 16 11 0.3 (1)
Fayoum3 53 50 20 39 20 20 0.5 (1)
Floating Hotel 27 27 23 17 143 79 36 16
Total Oman4 971 851 62 65 112 108 37 31
UAE5 475 487 72 70 163 172 56 58
Montenegro6 111 - 65 - 213 - 34 -
ODH Group 6,652 6,478
* Financial KPIs are calculated based on the number of available rooms during the reported period of 9M 2018.** Includes all expenses of the hotels in the destinations.
1. In 2017 we transferred 83 hotel rooms of Fanadir & Bellevue into real estate products and during 9M 2018 Ancient Sands hotel rooms increased by 35 room to reach a total of 136rooms.
2. During 9M 2018, only 4 hotels were operating (Sofitel with 442 rooms, Strand Beach Hotel with 503 rooms, El Wekala Hotel with 215 rooms and 100 rooms in Bay View Hotel out of394 existing rooms). Whereby, only 3 hotels were operating representing 992 rooms in 9M 2017.
3. In Q1 2018; three more rooms where added to the hotel rooms bringing the total number to 53 rooms.4. In December 23nd, 2017, we added 120 new rooms (98 room in Al Fanar & 22 rooms in Rotana Hotel) in Hawana Salalah thus bringing the total number of rooms to 904 room vs. 784
rooms in 9M 2017.5. Rented 12 rooms into serviced units apartments thus brining total number of the hotel rooms to 475 rooms vs 487 in 9M 2017.6. On July 21st we held the soft opening of the Chedi Montenegro with 111 rooms.
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Hotel KPIs Q3 2018
Total number of hotel rooms
Occupancy for available rooms (%)
TRevPAR*(CHF)
GOP PAR**(CHF)
Destination Q3 18 Q3 17 Q3 18 Q3 17 Q3 18 Q3 17 Q3 18 Q3 17
El Gouna 1 2,650 2,698 81 78 69 53 33 24
Taba Heights2 2,365 2,365 61 41 28 16 4 1
Fayoum3 53 50 15 26 14 16 (4) (4)
Floating Hotel 27 27 19 8 102 41 (21) (11)
Total Oman4 971 851 50 50 104 99 32 27
UAE5 475 487 66 55 138 125 34 29
Montenegro6 111 - 65 - 213 - 34 -
ODH Group 6,652 6,478
1. In 2017 we transferred 83 hotel rooms of Fanadir & Bellevue into real estate products and during 9M 2018 Ancient Sands hotel rooms increased by 35 room to reach a total of 136rooms.
2. During Q3 2018, only 4 hotels were operating (Sofitel with 442 rooms, Strand Beach Hotel with 503 rooms, El Wekala Hotel with 215 rooms and 100 rooms in Bay View Hotel out of 394existing rooms). Whereby, only 3 hotels were operating representing 992 rooms in Q3 2017.
3. In Q1 2018; three more rooms where added to the hotel rooms bringing the total number to 53 rooms.4. In December 23nd, 2017, we added 120 new rooms (98 room in Al Fanar & 22 rooms in Rotana Hotel) in Hawana Salalah thus bringing the total number of rooms to 904 room vs. 784
rooms in Q3 2017.5. Rented 12 rooms into serviced units apartments thus brining total number of the hotel rooms to 475 rooms vs 487 in Q3 2017.6. On July 21st we held the soft opening of the Chedi Montenegro with 111 rooms.
* Financial KPIs are calculated based on the number of available rooms during the reported period of Q3 2018.** Includes all expenses of the hotels in the destinations.
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The Cove, UAE and Fayoum, Egypt 9M 2018 Updates
The Cove, UAE KPIs 9M 2018 9M 2017 % ChgHotelsTotal Number of rooms 475 487 (2.5%)
Occ. for available rooms (%) 72 70 2.9%
TRevPAR (CHF) 163 172 (5.2%)
Fayoum, Egypt KPIs 9M 2018 9M 2017 % ChgHotelsTotal Number of rooms 53 50 6.0%Occ. For available rooms (%) 20 39 (48.7%)TRevPAR (CHF) 20 20 -Real EstateNet Contracted Units (CHFmn) 0.2 1.0 (80.0%)No of Contracted Units 4 16 (75.0%)Avg. Selling Price (CHF/m2) 575 606 (5.1%)
Revenues (CHFmn)Hotels 21.2 19.0 11.6%Destination Management 1.3 1.2 8.3%The Cove TotalTotal Revenues (CHFmn) 22.5 20.2 11.4%
Revenues (CHFmn)Hotels 0.29 0.27 7.4%Real Estate 0.04 0.20 (80.0%)Total FayoumTotal Revenues (CHFmn) 0.33 0.47 (29.8%)
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Snap Shot of CBRE Report
ODE Land Bank:
➢ Total land bank of 45.7 million sqm.
➢ Land is booked at cost.
CBRE Independent valuation of El Gouna Land Bank:
▪ Started with El Gouna – our largest remainingundeveloped land bank.
▪ El Gouna – Total land bank of 36.9 million out ofwhich 22.8 million sqm is still undeveloped.
▪ The book value of El Gouna land bank is USD 10.7million as of 9M 2018.
▪ CBRE latest valuation of the land bank done inSeptember 2018 gave an average value of USD 79.4per sqm.
Total remaining value of El Gouna’s undeveloped land bank alone is USD 1.8 billion
Hotels:
➢ ODE owns 24 Hotels with 4,918 guest rooms.
➢ Hotels are booked at cost.
CBRE Independent valuation of El Gouna Hotels:
▪ Started with El Gouna – with the biggest hotelportfolio.
▪ All the Hotels are booked at cost and thus are notrepresentative of their market values.
▪ CBRE valued the 17 hotels in El Gouna, Egypt atUSD 303.6 million, when their book value is USD39.3 million as of 9M 2018.
Land Bank Hotels
CBREs report executive summary can be found on ODH’s website under the following link: http://www.orascomdh.com/sites/default/files/presentations/CBRE%20Land%20and%20Hotels%20Valuations.pdf
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IR dashboard
Investor Relations Contact
Sara El Gawahergy
Head of Investor Relations
Head of Strategic Projects Management
Phone EGY: +20 (0)22 461 89 61
Phone CH: +41 (0)41 874 17 11
E-Mail: [email protected]
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