9M 2015 Results November 2015
Agenda 9M 2015 Highlights & Destinations Update Page 3 Strategy update & Financial review Page 5 Business segments Page 11 Outlook 2015 Page 18 2
Key messages from OHD 9M 2015 results A huge boost in profitability, with a net income 1 increase of EGP 290.0 million in 9M 15, almost 10 times more than the 9M 14 net income of EGP 27.1 million, and an EBITDA of EGP 592.6 million in 9M 15 vs EGP 375.1 million in 9M 14. Real Estate sales during the 9M 15 reached EGP 571.7 million, 166% more than 9M 2014 which reached EGP 214.8 million. Our Hotel segment performance continued its positive trend, with revenue growing from EGP 385.1 million to EGP 440.4 million and average occupancy rate reaching 53% vs 48% in 9M 14 Signed a new sub-development agreement with Hassan Allam Properties Company to sub-develop 100,000 m 2 of land in El Gouna for a total value of USD 20 million and have received 15% of the total deal value. On track with our debt reduction target, and we expect to finalize the ongoing bank negotiations and agree on the optimum debt refinancing package before year-end The extent of the impact expected on our hotels’ operations post the recent events in Sharm El Sheikh is still unclear. However we are planning to compensate Russian lost business in Makadi from other source markets until the situation returns back to its normal pace. Planning to capitalize on the Government communicated initiatives towards the tourism industry and tourism players in the market 1 Attributable to the shareholders of the company 3
Agenda 9M 2015 Highlights & Destinations Update Page 3 Strategy update & Financial review Page 5 Business segments Page 11 Outlook 2015 Page 18 4
Income Statement (EGP mn) 9M 2015 9M 2014 Notes Revenue 1,447.6 1,127.4 1 Revenues increased by 28% mainly due to the increase in 1 Cost of sales (822.3) (877.0) hotel’s operations & the recognition of the second and third Gross profit 625.3 250.4 parcels of El Sewedy land deal and the new Allam land deal done in El Gouna. Gross profit margin 43.2% 22.2% 2 Gross profit margin increased mainly due to the high 2 Investment income 45 18.6 3 margins associated with the land segment. Other gains and losses (95.9) 53.3 4 The increase in investment income was mainely due to the 3 Administrative expenses (47.5) (45.8) increase in interest income on the time deposits from the earlier sale of 15% in OHD. Finance costs (173.2) (172.4) The decrease in other gains and losses was mainly due to 4 Share of gains / (losses) of 5 foreign exchange losses. (16.2) (7.2) associates The share of loss in associates was due to losses incurred in 5 Provisions (30) (0.2) 6 OHC. Profit / (loss) before tax 307.5 96.7 Provisions related to contingent laibilities expected to be 6 setteled during the coming period. Income tax expense (37.4) (55) Net profit for the period 270.1 41.7 Attributable as follows : OHD shareholders 290.0 27.1 Non-controlling interests (19.9) 14.6 Basic EPS (EGP) 1.31 0.12 5
Balance sheet (EGP mn) 30. 9.15 31.12.14 Notes Property, plant and equipment 3,817 3,743 1 Increase in PPE was due to the increase in Tamweel’s 1 Inventories 647 649 business activity and the construction of the new Ancient Sands hotel in El Gouna. Receivables 1,271 848 2 Receivables significantly increased due to the increase 2 Cash and bank balances 750 463 3 in operating activities, with the main contribution coming from the land segment. Investments in associates 99 115 Increase in cash and bank balances was mainly due to Other assets 3 899 1,334 3 the cash received from the parent company “ODH” Total assets 7,483 7,152 (EGP 418 mn) resulting from its 15% stake sale in our company, accordingly the other assets decreased by Borrowings 3,251 3,227 4 the same amount. Payables 263 273 Total borrowings increased mainly due to the increase 4 Provisions in foreign exchange rates. The increase was partially 248 230 offset by loan repayments during the period. Other liabilities 5 960 925 Other liabilities increased due to the increase in the 5 Total liabilities 4,722 4,655 customer advanced payments, resulting from the new real estate sales. Non-controlling interests 491 514 Equity attributable to ODH 2,270 1,983 shareholders Total liabilities and equity 7,483 7,152 6
Cash Flow statement Notes (EGP mn) 9M 2015 9M 2014 Improvement in cash flow from operations: Cash from operations 1 1 331 211 - Enhanced operating activities (RE and hotels & Interest paid (142) (83) land segment). - Deconsolidation of OHC & its subsidiaries . Taxes paid (40) (28) Payments for PP&E increased mainly due to the 2 Operating Cash Flow 149 100 increase in Tamweel activity during the period and Payments for PP&E 2 (176) (66) the construction of Ancient Sands Hotel in El Gouna Other items 45 (2) Change in Borrowings mainly resulting from: 3 (-) The repayment of short term loans of EGP 215mn Investing Cash Flow (131) (68) 3 (+) Increase in Tamweel business activities Change in Borrowings (147) 12 This amount represents cash received from the 4 4 Proceeds from parent company 418 0 parent company “ODH” as result of its 15% stake sale Other items (2) (2) in our company (this amount is included in the cash from operations in the audited financial statements) Financing Cash Flow 269 10 Net change in cash/equivalents 287 42 Cash and bank balances beginning of period 463 251 Cash and bank balances end of period 750 293 7
Key debt metrics On target to reduce debt, currently negotiating an optimum debt refinancing package which is expected to finalize during the end of the year MTL maturity profile 1 Debt maturity profile after rescheduling 3 EGP mn, as of 30.09.15 EGP mn, as of 30.09.15 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015 2016 2017 2018 2019 2020 2021 2022 Total debt development 2 EGP mn Comments 3,500 Paid off all capitalized interest for the year 2014. 3,300 On track with the debt repayment target, expected to 163 166 145 175 3,100 finalize the new debt refinancing package by year end. 2,900 3,251 OHD maintains relationship with 10 banks. 3,227 3,128 3,124 3,113 3,078 2,700 1 Total outstanding debt of existing loans ending at each corresponding year excluding Tamweel, before rescheduling 2,500 2 Debt Includes Tamweel FY 13 1Q 14 2Q14 3Q14 FY 14 3Q 15 3 Planned outstanding debt including overdraft facilities and excluding Tawmeel , after paying off EGP 413 mn OHD Disposal groups 8
Financing profile 1 Interest payments by currency Total debt by currency in %, as of 30.09.15 in %, as of 30.09.15 4% 10% EGP EGP 32% 50% USD USD 46% EUR 58% EUR Collateralization profile in %, as of 30.09.15 Nil 18% 30.09.15 31.12.14 Unsecured Others Equity ratio (%) 2 36.4% 34.9% Hotels 18% 12% 51% Weighted average cost of debt (%) 3 7.56% 7.60% Secured 82% Shares 19% 1 All debt figures exclude debt relating to Tamweel Mortgage Finance 2 Equity Ratio = Total Equity/Total Assets 3 Excluding Tamweel 9
Agenda 9M 2015 Highlights & Destinations Update Page 3 Strategy update & Financial review Page 5 Business segments Page 11 Outlook 2015 Page 18 10
Business Segments 9M 2015 Revenue EBITDA (EGP mn) 9M 2015 9M 2014 Δ in % 9M 2015 9M 2014 52.1 1 Hotels 440.4 385.1 14.4% 17.4 1 Real Estate 214.1 397.1 (46.1)% 158.2 156.6 Land 514.5 94.2 446.2% 498.5 84.5 Destination Management 74.3 63.8 16.5% (0.5) 12.6 Other Operations 204.3 187.2 9.1% 74.9 65.7 (155.9) 2 3.6 2 Corporate & Unallocated Items - - - OHD Group 1,447.6 1,127.4 28.4% 592.6 375.1 1 A One-off provision expense taken with an amount of EGP 26 mn in 9M 15 compared to a one-off gain with an amount of EGP 23 mn in 9M 14. 2 The increase in losses resulted from an FX loss of EGP 89 mn in addition to the share of losses of associates amount of EGP 16 mn in 9M 15 compared to a one-off gain from OHC deemed loss of control in the 9M 14 with and amount of EGP 75 mn 11
Recommend
More recommend
