1H 2018 Results Agenda 1H 2018 Key Highlights & Destination - PowerPoint PPT Presentation

1H 2018 Results

Agenda 1H 2018 Key Highlights & Destination Progress Page 3 1H 2018 Financials and KPIs Highlights Page 8 1H 2018 Financials and KPIs Appendix Page 13 2

Group Key Highlights 1H 2018 Orascom Development Egypt; remains on track with stellar results operationally and financially.  Revenues increased by 39.8% to EGP 1.5 billion vs. EGP 1.1 billion in 1H 2017.  Adjusted EBITDA soared by 45.9% to reach EGP 653.8 million vs. EGP 448.1 million in 1H 2017.  Net Profits increased to EGP 184.6 million vs. adjusted net income of EGP 62.9 million in 1H 2017 (1H 2017 reported profits was EGP 176.3 million which included a one-off gain from a settlement of borrowings amounting to EGP 113.4 million). Real Estate  Net sales increased by 65% to EGP 1.2 billion in 1H 2018 vs. EGP 719 million in 1H 2017 with more contribution from El Gouna and Makadi Heights.  Our new real estate launch in Makadi Heights was a huge success recording net sales of EGP 110.5 million vs. EGP 0.5 million in 1H 2017.  Real Estate revenues increased by 53.8% to EGP 462.2 million vs. EGP 300.5 million in 1H 2017.  Deferred revenue balance jumped by 70.5% to EGP 2.2 billion vs. EGP 1.3 billion in 1H 2017 in addition to a deferred interest income of EGP 225.7 million. (Details in Appendix). Hotels  Hotels revenues increased by 40% to EGP 628.3 million vs EGP 448.8 million in 1H 2017 accompanied by a 55.7% increase in the GOP to EGP 270.2 million. Town Management  Revenues continued to increase this quarter recording a total of EGP 261.1 million, a 37.1% increase over EGP 190.5 million in 1H 2017. 3

Group Key Highlights 1H 2018 Corporate Updates  Sold 7,955 sqm land plot in El Gouna for USD 1 million (USD 130 per sqm) to construct the first office building and lease it to a German based company.  Finalizing the contract for our revenue share agreement with NUCA on the 1,000 feddan plot in West Cairo, expected within the coming 2 months.  Finalizing the documentation for the sale of our earlier communicated 3 hotels in Makadi and Tamweel Group which together will result in total cash proceeds of c. 800 million and working with banks on the repayment of EGP 1 billion of debt.  Continuing to hold advanced discussions to acquire a land plot in North Coast, marking our first entrance into second home markets. 4

El Gouna 1H 2018 Updates  Net sales increased by 52.2% to EGP 1.1bn in 1H 2018 Financials & KPIs 1H 2018 1H 2017 % Chg  Hotels GOP increased by 51.3%% to EGP 270.9mn vs. EGP 179.1mn Hotels in 1H 2017. Number of rooms 2,477 2,468 0.4%  In April, we launched “Ancient Sands Villas” the phase inventory Occ. for available rooms (%) 80 75 6.7% was USD 22.7mn & managed to sell almost USD 10mn to date. TRevPAR (EGP) 1,178 851 38.4%  Finalized the renovation works in Turtles Inn hotel and continuing GOP PAR (EGP) 604 403 48.9% with the other hotels to be finalized during 2018. Total Revenues (EGPmn) 531.4 382.8 38.8%  Sold a 7,955 sqm land plot for a total value of USD 1mn (USD Real Estate 130/sqm) to construct the 1 st office building and lease it to a Net Contracted Units (EGPmn) 1,073 705 52.2% German based company. No of Contracted Units 166 129 28.7%  El Gouna Football Club succeeded to get back to the Egyptian 1 st Avg. Selling Price (EGP/m 2 ) 39,381 33,026 19.2% Division League and for that we finalized the renovation across El Total Revenues (EGPmn) 458 299.1 53.1% Gouna stadium and now is ready to host international events. Destination Management Planning to host the 2 nd edition of El Gouna Film Festival in  Total Revenues (EGPmn) 243.7 172.6 41.2% September 2018 after the great success of the 1 st edition. El Gouna Total Total Revenues (EGPmn) 1,233.1 854.5 44.3% 5

Makadi & Taba Heights 1H 2018 Updates Financials & KPIs 1H 2018 1H 2017 % Chg Makadi Heights: Real Estate  We launched a new project in April 2018 with a total Net Contracted Units (EGPmn) 110.5 0.5 - inventory of EGP 200.0mn which was a huge success. No of Contracted Units 81 1 - Avg. Selling Price (EGP/m 2 ) 15,718 4,984 215.4% * Finalizing the documentation of the sale of the 3 hotels Total Revenues (EGPmn) 3.3 1.2 175% in addition to a land plot for EV of c. EGP 882.6 million. Destination Management ODE’s stake will result in total cash proceeds of EGP 492.8 Total Revenues (EGPmn) 5.5 3.6 52.8% million. The sale will also result in the deconsolidation of Hotels* EGP 260.1 million of debt. Total Revenues (EGPmn) 37.3 29.4 26.9% Makadi Heights Total Total Revenues (EGPmn) 46.1 34.2 34.8% Financials & KPIs 1H 2018 1H 2017 % Chg Taba Heights: Hotels  Taba Heights remains the most challenging destination Number of rooms 2,365 2,365 - due to the extended travel bans on Sinai. Number of rooms available 1,260 992 27%  Nevertheless we successfully curbed the GOP losses Occ. for available rooms (%) 22 24 (8.3%) from EGP 7.9mn to EGP 6.1mn in 1H 2018 and TRevPAR (EGP) 184 148 24.3% revenues increased by 74.9% to EGP 41.8mn vs. EGP GOP PAR (EGP) (27) (47) (42.6%) 23.9mn in 1H 2017. Total Revenues (EGPmn) 41.8 23.9 74.9% Destination Management 12.1 14.4 (16%) Total Revenues (EGPmn) Taba Heights Total Total Revenues (EGPmn) 53.9 38.3 40.7% 6

Agenda 1H 2018 Key Highlights & Destination Progress Page 3 1H 2018 Financials and KPIs Highlights Page 8 1H 2018 Financials and KPIs Appendix Page 13 7

Income Statement Notes (EGP mn) Q2 2018 Q2 2017 1H 2018 1H 2017 Revenue 1,528.8 873.9 599.9 1 1,093.7 Revenues and gross profit increased due to the 1 enhanced operational performance across all Cost of sales (496.7) (344.7) (917.6) (653.0) business segments. Gross profit 377.2 255.2 611.2 440.7 1 Investment income increased mainly due to: 2 Gross profit margin • The increase in real estate cash collection. 43.2% 42.5% 40.0% 40.3% • Increase in interest income on bank deposits. Investment income 42.5 21.7 2 89.1 37.0 Administrative expenses (46.5) (27.2) (7.2) (29.6) Other gains and losses for 1H 2018 includes: 3 Adj. EBITDA 392.5 269.7 653.8 448.1 • FX losses of EGP 41.1mn. Adj. EBITDA margin 44.9% 44.9% 42.8% 41.0% • Other gains of EGP 18mn. Other gains/losses (50.0) 23.4 (23.0) 92.2 3 While 1H 2017 figures included: Share of associates (0.1) (1.0) 0.5 (0.5) gain/losses • Gains in relation to settlement of borrowings in the amount of EGP 113.4mn. EBITDA 342.4 292.1 631.3 539.8 • FX losses of EGP 15mn. Depreciation (113.7) • Other losses in the amount of EGP 6.1mn. (58.0) (57.6) (109.0) Finance costs (132.6) (103.8) (237.8) (198.8) 4 Increase in Finance costs mainly due to: 4 Income tax expense (50.3) (30.3) (95.2) (55.7) 5 • Increase in interest rates Q-o-Q. Net profit for the period 101.5 100.4 184.6 176.3 Income Tax expense increased due to the 5 Attributed as follows: increase of the profitability of the company. ODE shareholders 81.7 85.6 144.0 117.4 Non-controlling interest 19.8 14.8 40.6 58.9 0.05 Basic EPS (EGP) 0.08 0.11 0.11 8

Balance Sheet Notes (EGP mn) 30.06.18 31.12.17 Property, plant and equipment 3,512.4 3,481.0 1 PPE increased mainly due to the increase in 1 construction activities in El Gouna. Inventory 747.0 624.6 2 Receivables 1,614.7 1,578.9 Inventory increased mainly due to the 2 acceleration of the construction of real estate Cash and bank balances 959.5 1,257.8 units in El Gouna. Investments in associates 113.2 112.8 Asset and liabilities held for sale include the 3 Other assets 986.1 1,025.0 following: Non-current assets held for sale 2,105.5 1,976.9 • Tamweel Group. 3 • Makadi hotels. Total assets 10,038.4 10,057.0 Borrowings 4,286.6 4,425.4 Borrowings decreased mainly due to 4 4 • (-) Payment of EGP 218mn. Payables 378.7 363.1 • (+) Capitalized interest of EGP 48mn Provisions • (+) FX gain amounting EGP 31.2mn. 297.9 292.9 Other liabilities 1,431.0 1,345.7 5 Other liabilities increased mainly due to Increase 5 of advanced payments from real estate sales. Liabilities related to assets held 1,781.9 1,689.7 3 for sale Total liabilities 8,176.1 8,116.8 Non-controlling interests 494.9 460.2 Equity attributable to ODE 1,367.4 1,480.0 shareholders Total liabilities and equity 10,038.4 10,057.0 9

Financing Profile Current debt currency Current Maturity as of 1H 2018 in %, as of 30.06.18 Cost of Debt is 10.3% 6% 1,133 18% 931 EGP 757 USD 641 EUR 76% 374 368 50 32 -- CF 2018 2019 2020 2021 2022 2023 2024 2025 Debt by currency after ODE Rescheduling 8% 11% EGP Maturity Profile after ODE Rescheduling in 2018 USD Cost of Debt is 9.5% EUR 1,191 81% 600 475 456 431 302 30.6.18 31.12.17 50 -- Equity ratio (%) 18.6% 19.3% Cost of debt (%) 10.3% 10.1% 2018 2019 2020 2021 2022 2023 2024 2025 10