Kepler Cheuvreux 19 th Swiss Seminar 22 nd March 2018 El Gouna, - - PowerPoint PPT Presentation

Kepler Cheuvreux 19th Swiss Seminar 22nd March 2018

El Gouna, Egypt

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ODH at a glance

The Turn around story Outlook

53% 29% 11% 7% Hotels Real Estate Town Management Tamweel Group

Company Overview 9M 2017 Revenue contribution by Business segment 9M 2017 Revenue contribution by country

▪A leading developer

• f

fully integrated destinations, with over 28 years of experience and a proven track record

• f

sustainable development, including hotels, villas, apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. ▪ODH boasts a diversified portfolio of destinations spread over 7 jurisdictions. ▪ODH currently owns a land bank of 100.3 mn sqm and a hospitality portfolio of 8,325 rooms.

Destinations Key Facts

Egypt Oman UAE Montenegro

Total Land Bank

Other Projects

Number of Hotels Number of Rooms 49.1 mn sqm 29 Hotels 6,767 Rooms 20.8 mn sqm 4 Hotels 971 Rooms 0.3 mn sqm 1 Hotel 487 Rooms 6.9 mn sqm

• 23.2 mn

sqm 1 Hotel 100 Rooms

Total

100.3 mn sqm 35 Hotels 8,325 Rooms Real Estate units sold (9M 2017) 192 Units 132 Units

• 44 Units
• 368 Units

ODH, a leading fully integrated developer with a portfolio of diversified assets

CHF 170.8mn 58% 18% 12% 12% Egypt Oman Montenegro UAE CHF 170.8mn

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Andermatt, Switzerland

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ODH at a glance

The Turn around story

Outlook

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2016: New Management, Situation Analysis and Identified Challenges

Challenges and development areas related to strategy and internal structure

▪ Performance largely dependent on El Gouna, Egypt. ▪ Most international destinations still in the ramp- up phase. ▪ Financial pressure resulting from: negative

• perating cash flows, current debt levels and

investment requirements.

Increased complexity in company structure requires organizational adjustments

▪ KPIs distribution is not granular enough. ▪ Responsibility matrix leads to redundancies. ▪ BU structure hinders development of the Group. ▪ Project management inefficiencies.

Repositioning & enhancement of ODH’s brand

▪ Delisting of ODH’s EDRs from the EGX. ▪ Explore the first & second home markets in Cairo/North Coast in Egypt. ▪ Position ODH Brand with the “Life as it should be” statement across all destinations. ▪ Maintain an

• pen

and active market presence with the investor, analyst & shareholder community.

Establishment of enhanced business practices

• 1. Destination based structure:

▪ Each destination to become a separately managed entity, with a tailored commercial strategy and financing plan, headed by its

• wn CEO or General Manager.
• 2. Continuous land value creation:

▪ Developing a targeted short-term development plan in each destination that complements the Group’s 3-5 year business view. ▪ Identified specific land plots for sale or sub- development of projects that add value to the destination. ▪ Providing the market with an updated fair value of the remaining undeveloped land bank through an external valuator.

Strengthening ODH balance sheet

▪ Take

• ut

the necessary impairments on the investments that will not generate value. ▪ Reduce the debt balance in Egypt and Restructure company’s debt in the other destinations. ▪ Monetize non-core assets and minority stakes in certain destinations.

… Accordingly, adopted and has since successfully executed, and continues to execute on a three pillar strategy that was communicated to the market in June 2016

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1) Establishment of Enhanced Business Practices

Destination Based Structure

▪ Successfully implemented the destination based structure, pushing more authority and responsibility on the ground for each destination, to better increase operational efficiency.

El Gouna, Egypt Hawana, Salalah

73 53 288 299.8 279.7 634.4 66% 55% 75%

9M 2015 9M 2016 9M 2017 GOP Revenues

• Occ. Rate

Hotels KPIs (EGP mn)

▪ Launched Phase I & II of G-Space and all offices were rented out. ▪ Hosted the first edition of El Gouna Film Festival, with 1000+ attendees. ▪ Hosted El Gouna International Squash Open & Orascom Development PSA Women’s World Championship, the first time to be held in Egypt.

0.8 2.3 2.7 5.2 8.2 9.1 46% 64% 68%

• 1%

9M 2015 9M 2016 9M 2017 GOP Revenues

• Occ. Rate

Hotels KPIs (OMR mn)

▪ Added 98 new rooms in Al Fanar Hotel & 22 new rooms in Rotana Hotel, by end of Dec. 2017, making the total no. of rooms 904. ▪ Al Fanar Hotel was awarded a 5-star rating from Ministry of Tourism. ▪ Opened the Aqua Park in January 2018, the first Aqua Park in Oman.

442 474.4 958.9 163 135 173

9M 2015 9M 2016 9M 2017 Value of Contracted Units (EGPmn) Number of Units 0.6 0.3 4.0 2 1 87

9M 2015 9M 2016 9M 2017 Value of Contracted Units (CHFmn) Number of Units 7 784 700 467

• No. of rooms

Real Estate KPIs (EGP mn) Real Estate KPIs (OMR mn)

53% 21% 13% 7% 6% USD OMR EGP AED EUR

Debt Reduction and Restructure

▪ Reduction of debt balance in Egypt through proceeds from sale of non core assets & excess cash from operation to reach optimal leverage ratios. ▪ Restructure and grow the balance elsewhere to match the expansion plans in the other destinations.

2) Strengthening ODH balance sheet

Total debt by country (September 30, 2017) Total debt by currency (September 30, 2017) CHF359.5m 70% 21% 8% 1% Egypt Oman UAE Montenegro

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2) Strengthening ODH balance sheet Cont’d

Maturity & Balance in 2016 Current Maturity Profile & Balance in 2017 Cost of Debt is 9.1% * All debt figures exclude Tamweel Group Maturity Profile after ODE Rescheduling in 2018 Expected Cost of Debt is 8.1% Maturity Profile after ODE Rescheduling & Oman Debt Reschedule Targeted Cost of Debt is 7.9% FY 2016 Balance: CHF 362.3mn. FY 2017 Balance: CHF 378.1mn. Expected FY 2018 Balance Post Egypt Debt reduction: CHF 322.2mn. Expected FY 2018 Balance Post Egypt Debt reduction & Oman Rescheduling: CHF 336.0mn.

91 115 47 49 15 15 15 10 4 1 1

CF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 9 9 24 43 58 64 71 81 27 1

CF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 9 21 36 45 44 43 83 39 1

CF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 9 9 24 35 34 37 83 43 7 56

CF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 - 2032

3) Repositioning & Enhancement of ODH’s brand

ODH vs. SPI Index (Jan. 1, 2016 – March 13, 2018)

ODHN.SW FY 2015 FY 2016 FY 2017 YTD March 13th % Return (47.7%) (50.6%) 115.7% 44.5% Close price (CHF) 10.25 5.11 11.0 16.05

• Mkt. Cap (CHFmn)

414.4 206.4 444.4 648.4

• Av. Daily Volume

20,579 19,433 25,058 80,806

Management took the decision to delist ODH’s EDRs from the Egyptian Stock Exchange (EGX). The Delisting took place in May 2017; and had a positive effect on ODH’s and ODE’s stock price and trading volume.

ORHD.CA FY 2015 FY 2016 FY 2017 YTD March 13th % Return (56.10%) (5.39%) 279.1% 37.8% Close price (EGP) 6.68 6.32 23.77 32.75

• Mkt. Cap (EGPmn)

1,477.6 1,398.0 5,257.9 7,257.4

• Av. Daily Volume

99,280 206,112 362,526 239,512

ODE vs. EGX Index (Jan. 1, 2016 – March 13, 2018)

EGX 183%

• 60.0%
• 40.0%
• 20.0%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

ODH SPI

• 100%

0% 100% 200% 300% 400% 500% 600%

ODE EGX

ODE 487% ODH 81% SPI 20.1%

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66 88 95 68.6 86.1 115.2 126.2 204 265 254 155 368

2013 2014 2015 9M 2016 9M 2017 FY 2016 FY 2017 Value of Contracted Units Number of Units 31 21 15 24 39.3 49.2 126 119 124 120 85.9 90.5 50% 50% 56% 53% 60% 63%

50 100 150 2013 2014 2015 2016 9M 2016 9M 2017 GOP Revenues

• Occ. Rate

221 251 306 237 170 171 2013 2014 2015 2016 9M 2016 9M 2017

Today ODH’s Operational and Financial Stance

Group Hotels KPIs (CHFm) Group Real Estate KPIs (CHFmn)

(52.2) (26.2) (23.7) (9.1) (8.5) 0.1 2013 2014 2015 2016 9m 2016 9m 2017

Group Cash Flows (CHFmn) Group Revenues (CHFmn)

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25 81 20 14 16 2011 2013 2014 2015 2016 9M 2016 9M 2017

Group Adj. EBITDA (CHFmn)

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Revenue Contribution by Country

Country Revenue Contribution as of September 30, 2016 Country Revenue Contribution as of September 30, 2017 58% 18% 12% 12% Egypt Oman Montenegro UAE CHF 170.8mn 66% 22% 0% 12% Egypt Oman Montenegro UAE CHF 169.9mn Hotels’ Revenue Contribution as of September 30, 2016 Hotels’ Revenue Contribution as of September 30, 2017 51% 28% 21% Egypt Oman UAE CHF 90.5mn 51% 26% 23% Egypt Oman UAE CHF 85.9mn

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Hawana Salalah, Oman

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ODH at a glance The Turn around story

Outlook 2018

Outlook 2018

Orascom Development Egypt (ODE):

• ODE; the largest Egyptian subsidiary of the Group is planning to distribute dividends for the first time since the re-listing in 2015.
• Holding advanced discussions to acquire a land plot in Cairo and the North Coast; marking our first entrance into the first and

second homes market.

El Gouna, Egypt:

• New planned real Estate launches in El Gouna along with the addition of more hotel rooms to accommodate the increased

demand

Makadi, Egypt:

• We are planning to start an aggressive sales and marketing campaign to revive the destination and push back sales with plans to

launch a new project in Q2 2018.

Hawana Salalah, Oman:

• Capitalizing on the high demand and proven quick return on investment in the hotels business, we are planning to add more

rooms and a new hotel in the destination.

Luštica Bay, Montenegro:

• We are finalizing the construction of the 110 room-Chedi hotel , the Marina and 1,000 sqm of marina retail shops with plans to be
• pened by summer 2018.

Andermatt, Switzerland:

• The Radisson Blu hotel with 180 rooms is being built together with the Gotthard Residences and is expected to open in summer

2018.

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Developed Area Undeveloped Area Investment held in associates El Gouna Andermatt The Cove Taba Heights Makadi Hawana Salalah Jebel Sifah Lustica Chbika Eco Bos As Sodah City Walk

Our ultimate goal is to speed up the development and maturity of all our destinations towards the successful “El Gouna Model” and increase their contribution to the Group’s revenue

Ultimate Goal of ODH’s Management Still Remains …..

Developed Area Undeveloped Area Investment held in associates El Gouna Andermatt The Cove Taba Heights Makadi Hawana Salalah Jebel Sifah Lustica Chbika Eco Bos As Sodah City Walk

FY 2016 FY 2017

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Thank You

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Disclaimer

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