9M 2017 Results
Agenda 9M 2017 Key Highlights Page 3 9M 2017 Destination Progress and Outlook Page 5 Financial Review Page 12 2
Key Highlights 9M 2017 ODE records solid earnings performance with continued strong growth across all its business segments. Revenues increased by 79.5% to EGP 1,722.4 million vs. EGP 959.7 million in 9M 2016. Adjusted EBITDA increased by 140.8% to EGP 661.7 million and Net Profits for ODE’s shareholders reached EGP 193.7 million. ➢ Net real estate sales more than doubled to EGP 977.8 million in 9M 2017 vs. EGP 487.1 million in 9M 2016. ➢ Real estate revenues reached EGP 426.4 million, a 45.2% increase over EGP 293.7 million in 9M 2016, with increased unit deliveries. ➢ Hotels revenues increased by 122.0% to reach EGP 734.1 million vs. EGP 330.7 million in 9M 2016 on the back of the new hotel strategy implemented since the beginning of 2017. ➢ Hotels gross operating profits (GOP) increased by 737.9% to reach EGP 280.7 million vs. EGP 33.5 million in 9M 2016. ➢ Town Management revenues increased by 69.8% to EGP 312.4 million vs. EGP 184.0 million in 9M 2016. ➢ Adjusted EBITDA increased by 140.8% to reach EGP 661.7 million compared to EGP 274.8 million in 9M 2016. ➢ Net profit attributable for ODE’s shareholders during the period reached EGP 193.7 million vs. a net loss of EGP 150.3 million in 9M 2016. ➢ Advanced discussions with private owners on a land plot in the North Coast to enter the second homes market. 3
Agenda 9M 2017 Company Highlights Page 3 9M 2017 Destination Progress and Outlook Page 5 Financial Review Page 12 4
Business Segments 9M 2017 Adj. EBITDA 1 Revenue EBITDA (EGP mn) 9M 2017 9M 2016 Δ in % 9M 2017 9M 2016 9M 2017 9M 2016 Hotels 734.1 330.7 122.0% 413.0 (9.1) 310.6 28.8 Real Estate 426.4 293.7 45.2% 300.7 230.7 291.5 160.4 Land - - - - 62.7 - 27.9 Town Management 2 312.4 184.0 69.8% 37.9 17.3 38.6 15.5 Tamweel Group 249.5 151.3 64.9% 91.6 66.0 95.1 67.4 Corporate & Unallocated Items - - - (14.7) (202.9) (74.1) (25.2) ODE Group 1,722.4 959.7 79.5% 828.5 164.7 661.7 274.8 1 Adjusted EBITDA: EBITDA adjusted for non cash items (which includes provisions & impairments, other gains and losses, FX gains & share in associates) 2 Town Management includes revenues from Utilities and services, Golf, Rentals, Hospital, Educational services, Marina, Limousine, Laundry and other town amenities. 5
Business Segments 3Q 2017 Adj. EBITDA 1 Revenue EBITDA (EGP mn) 3Q 2017 3Q 2016 Δ in % 3Q 2017 3Q 2016 3Q 2017 3Q 2016 Hotels 285.3 147.7 93.2% 138.1 36.1 135.0 37.7 Real Estate 125.9 71.7 75.6% 94.1 40.2 92.4 50.9 Land - - - - (8.4) - (9.4) Town Management 2 126.3 67.4 87.4% 3.0 1.0 3.7 1.5 Tamweel Group 91.2 54.8 66.4% 27.6 22.9 30.1 23.7 Corporate & Unallocated Items - - - 34.2 (14.7) (39.3) (11.0) ODE Group 628.7 341.6 84.0% 297.0 77.1 221.9 93.4 1 Adjusted EBITDA: EBITDA adjusted for non cash items (which includes provisions & impairments, other gains and losses, FX gains & share in associates) 2 Town Management includes revenues from Utilities and services, Golf, Rentals, Hospital, Educational services, Marina, Limousine, Laundry and other town amenities. 6
Real Estate KPIs 9M 2017, 3Q 2017 & Deferred Revenue Net value of Contracted Number of Contracted Average Selling Price (EGP/m 2 ) Units (EGPmn) Units Destination 9M 17 9M 16 9M 17 9M 16 9M 17 9M 16 El Gouna 958.9 474.4 173 122 34,546 24,968 Fayoum 17.5 2.6 16 3 11,039 7,844 Makadi 1.4 2.2* 3 - 4,802 4,683 Gardania - 7.9 - 1 - 12,188 ODE Group 977.8 487.1 192 126 32,754 23,560 Destination 3Q 17 3Q 16 3Q 17 3Q 16 3Q 17 3Q 16 El Gouna 253.9 126.4 44 29 39,772 49,706 Fayoum 4.3 2.3 2 1 13,160 9,081 Makadi 1.0 (0.6) 2 (7) 4,652 - ODE Group 259.2 128.1 48 23 36,925 24,492 Revenue Recognition Schedule (EGPmn) Destination Deferred Revenue Balance 2017 2018 2019 2020 2021 El Gouna 1,375.6 272.3 792.9 310.4 - - Fayoum 22.6 - 2.8 9.5 6.0 4.3 Makadi - - - - - - ODE Group 1,398.2 272.3 795.7 319.9 6.0 4.3 * Upgraded fees for existing units. 7
Hotel KPIs 9M 2017 & 3Q 2017 Occupancy for Total number of Number of TRevPAR* GOP PAR** available rooms hotel rooms available rooms (EGP) (EGP) (%) Destination 9M 17 9M 16 9M 17 9M 16 9M 17 9M 16 9M 17 9M 16 9M 17 9M 16 El Gouna 1 2,521 2,506 2,521 2,506 77 56 915 403 427 85 Taba Heights 2 2,365 2,365 1,260 718 31 33 205 197 (23) (82) Fayoum 3 50 10 50 10 39 27 360 210 (27) (562) Floating Hotel 27 27 27 27 17 5 1,434 322 298 (320) Makadi 4 1,113 1,113 - 491 ODE Group 6,076 6,021 3,858 3,752 Destination 3Q 17 3Q 16 3Q 17 3Q 16 3Q 17 3Q 16 3Q 17 3Q 16 3Q 17 3Q 16 El Gouna 1 2,521 2,506 2,521 2,506 80 64 1,042 505 474 146 Taba Heights 2 2,365 2,365 1,260 718 41 49 290 295 15 (1) Fayoum 3 50 10 50 10 25 27 300 210 (74) (562) Floating Hotel 27 27 27 27 8 3 770 202 (184) (282) Makadi 4 1,113 1,113 - 491 ODE Group 6,076 6,021 3,858 3,752 1. In 9M 17 we transferred 82 hotel rooms of Fanadir and Bellevue into real estate products and in Q3 2017 Ancient Sands hotel room increased by 97 rooms. 2. During 9M 2017, 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 394 existing rooms). Whereby, only 2 hotels were operating representing 718 rooms in 9M 2016. 3. In September 1 st , 2016, Byoum Lakeside Hotel was opened. 4. Our 3 hotels in Makadi were rented to FTI Group since Jan. 2017. Where by in 9M 2016 only 1 hotel was operating (Royal Azur with 491 rooms). * Financial KPIs are calculated based on the number of available rooms during the reported period of 9M 17 and 3Q 17. ** Includes all expenses of the hotels in the destinations. 8
El Gouna, Egypt 9M 2017 Highlights and Outlook: ▪ Net sales increased by 102.1% to EGP 958.9mn vs. EGP 474.4mn in 9M 2016. ▪ Hotels GOP surged by 431.5% to EGP 285.4mn compared to EGP 53.7mn in 9M 2016. ▪ Successfully hosted the first edition of El Gouna Film Festival and for which we have built four new high standard cinemas. ▪ Launched a new high-end real estate project over looking the marina “Abu Tig Hills” in Q4 2017 with a total inventory of USD 22.0mn and was completely reserved in one month. ▪ Continuing with the renovation work across some of our hotels. ▪ Finalized the construction of the party event area which will hold a capacity of 2,500 guests. ▪ Planning to launch Phase II of G-Space by mid-December 2017 following the great success of Phase I. Financials & KPIs 9M 2017 9M 2016 % Chg Hotels Number of rooms 2,521 2,506 0.6% Occ. for available rooms (%) 77 56 37.5% TRevPAR (EGP) 915 403 127.0% GOP PAR (EGP) 427 85 402.4% Total Revenues (EGPmn) 616.8 273.4 125.6% Real Estate Net Contracted Units (EGPmn) 958.9 474.4 102.1% No of Contracted Units 173 122 41.8% Avg. Selling Price (EGP/m 2 ) 34,546 24,968 38.4% Total Revenues (EGPmn) 420.3 273.4 53.7% Deferred Revenue (EGPmn) 1,375.6 802.2 71.5% Destination Management Total Revenues (EGPmn) 280.4 176.0 59.3% 9
Taba Heights, Egypt 9M 2017 Highlights and Outlook: ▪ Taba Heights remains the most challenging destination for the group due to the extended travel bans on Sinai. ▪ Occupancy for the operating hotels reached 31% vs. 33% in 9M 2016. ▪ Successfully curbed the GOP losses from EGP 11.4mn in 9M 2016 to EGP 6.3mn in 9M 2017. ▪ We re-opened another 100 rooms in Bay View Hotel out of the existing 394 rooms. ▪ To date we have 1,260 operating rooms out of 2,365 rooms compared to only 718 rooms operating in 9M 2016. This will make 4 hotels out of 6 open. Financials & KPIs 9M 2017 9M 2016 % Chg Hotels Number of rooms 2,365 2,365 - Number of rooms available 1,260 718 75.5% Total Revenues (EGP mn) 55.6 26.2 112.2% Occ. for total rooms (%) 13 7 85.7% Occ. for available rooms (%) 31 33 (6.1%) TRevPAR (EGP)* 205 197 4.1% GOP PAR (EGP)* (23) (82) 72.0% * Financial KPIs are calculated based on the number of available rooms during the reported period of 9M 17. 10
Agenda 9M 2017 Highlights Page 3 9M 2017 Destination Progress and Outlook Page 5 Financial Review Page 12 11
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