Q1 2017 Results May 2017 Agenda Q1 2017 Company Highlights Page 3 - - PowerPoint PPT Presentation

May 2017 Q1 2017 Results

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Q1 2017 Company Highlights Page 3 Q1 2017 Destination Progress and Outlook Page 5 Financial Review Page 11

Agenda

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Key Highlights Q1 2017

Enhanced operational performance across all business segments resulting a 73.9% increase in total revenues to reach EGP 493.8mn vs. EGP 284.0mn in Q1 2016.

• Net sales increase by 113.2% to EGP 185.3 million in Q1 2017 from EGP 86.9 million in Q1 2016.
• Hotels GOP reached EGP 69.4 million vs. a loss of 0.6 million in Q1 2016 and El Gouna remains the top

performer in the market.

• Hotel revenues more than doubled to EGP 200.9 million vs. EGP 85.6 million in Q1 2016.
• Real estate revenues reached EGP 126.4 million, a 32.9% increase over EGP 95.1 million in Q1 2016.
• Adjusted EBITDA increased by 158.9% to reach EGP 178.4mn compared to EGP 68.9mn in Q1 2016.
• Net profit attributable for OHD shareholders during the period reached EGP 31.8 million vs. a net loss of EGP

96.8 million in Q1 2016.

• In El Gouna, we successfully implemented a new hotel management strategy in Jan. 2017 coupled with

renovations of some of the hotels in the destination.

• Currently studying several land opportunities in New Cairo and the North Coast for first and second homes

markets.

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Q1 2017 Company Highlights Page 3 Q1 2017 Destination Progress and Outlook Page 5 Financial Review Page 11

Agenda

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Business Segments Q1 2017

Revenue EBITDA

• Adj. EBITDA 1

(EGP mn) Q1 2017 Q1 2016 Δ in % Q1 2017 Q1 2016 Q1 2017 Q1 2016 Hotels 200.9 85.6 134.7% 163.4 (47.9) 67.4 (7.9) Real Estate 126.4 95.1 32.9% 85.4 137.1 80.0 54.4 Land

• 0.9

39.2 0.5 0.1 Destination Management 35.6 25.8 38.0% (10.6) (1.1) (10.2) (1.1) Other Operations2 130.9 77.5 68.9% 56.0 32.6 57.5 30.0 Corporate & Unallocated Items

• (47.4)

(169.1) (16.8) (6.6) OHD Group 493.8 284.0 73.9% 247.7 (9.2) 178.4 68.9

1 Adjusted EBITDA: EBITDA adjusted for non cash items (which includes provisions & impairments, other gains and losses, FX gains & share in associates) 2 Other Operations includes revenues from Tamweel Group with the amount of EGP 79.4mn vs. EGP 46.7mn in Q1 2016

El Gouna, Egypt

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Q1 2017 Highlights and Outlook:

• In April we launched phase 2 of “Tawila” project with a total inventory of USD

22.0mn and contracts + reservation 33.0% of the project to date.

• Transferred some of the hotel rooms of Ocean View, Fanadir and Mosaique

into real estate products and sold successfully.

• Launched phase 1 of the first co-working area “G-Space” - rented out.
• Hosted two International Squash Championships for which we have built 4

new courts.

• Started renovation works on the majority of our hotels, some of which to be

done by December 2017.

• Net Sales increased by 131.9% y-o-y to reach EGP 178.3mn vs. EGP 76.9mn in

Q1 2016.

• Hotels GOP increased by 735.6% to EGP 72.7mn vs. EGP 8.7mn in Q1 2016.

Financials & KPIs Q1 17 Q1 16 % Chg Hotels

• Occ. for available rooms (%)

74 53 39.6% TRevPAR (EGP) 750 332 125.9% GOP PAR (EGP) 327 40 717.5% Total Revenues (EGP mn) 169.4 73.7 129.8% Real Estate Net Contracted Units (EGP mn) 178.3 76.9 131.9% No of Contracted Units 41 34 20.6%

• Avg. Selling Price (EGP/m2)

28,246 19,865 42.2% Total Revenues (EGP mn) 124.8 65.1 91.7% Deferred Revenue (EGP mn) 918.3 645.4 42.3%

Fayoum, Egypt

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Q1 2017 Highlights and Outlook :

• Planning to launch new products with a total inventory of EGP

60.5mn n in Q2 17.

Financials & KPIs Q1 17 Q1 16 % Chg Real Estate Net Contracted Units (EGP mn) 6.5 1.5 333.3% No of Contracted Units 7 3 133.3%

• Avg. Selling Price (EGP/m2)

10,052 6,500 54.6% Total Revenues (EGP mn)

• Deferred Revenue (EGP mn)

17.1 26.7 (36.0%) Hotels

• Occ. for available rooms (%)

55 TRevPAR (EGP) 432 GOP PAR (EGP) (9) Total Revenues (EGP mn) 1.9

Makadi, Egypt

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Q1 2017 Highlights and Outlook:

• Planning to finalize the construction of the club house by the end of

2017.

• Hotels in Makadi were rented to FTI group since January 2017 for

EUR 3.3mn per annum.

Financials & KPIs Q1 17 Q1 16 % Chg Hotels EBITDA (EGP mn) 10.41 (16.3) N.A Net Contracted Units (EGP mn) 1.0 2.4 (58.3%) No of Contracted Units 3 8 (62.5%)

• Avg. Selling Price (EGP/m2)

4,979 4,485 11.0% Total Revenues (EGP mn) 0.8 0.9 (11.1%) Deferred Revenue (EGP mn) 0.1 5.2 (98.1%) Net Contracted Units (EGP mn) 1.0 2.4 (58.3%)

1 Recognized revenues from the lease contract.

Taba Heights, Egypt

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Q1 2017 Highlights and Outlook:

• Re-opened 100 rooms in El Wekala Resort. To date we have 818

rooms operating out of the 2,365 rooms vs. 442 rooms in Q1 16.

• We successfully curbed the GOP losses from EGP 5.0mn in Q1 16 to

EGP 6.2mn in Q1 17.

Financials & KPIs Q1 17 Q1 16 % Chg Hotels Total Revenues (EGP mn) 9.1 2.2 313.6%

• Occ. For total rooms (%)

23 15 53.3%

• Occ. for available rooms (%)

9 3 200.0% TRevPAR (EGP)* 128 90 42.2% GOP PAR (EGP)* (65) (155) 138.5%

* The KPIs are for the operating rooms.

Q1 2017 Highlights Page 3 Q1 2017 Destination Progress and Outlook Page 5 Financial Review Page 11

Agenda

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Income Statement

(EGP mn) Q1 2017 Q1 2016 Revenue 493.8 284.0 Cost of sales (366.5) (261.0) Gross profit 127.3 23.0 Gross profit margin 25.8% 8.1% Investment income 15.3 11.7 Other gains and losses 71.0 (67.4) Administrative expenses (17.8) (15.1) Finance costs (95.0) (59.6) Share of associates profit/losses 0.5 (1.4) Profit/(loss) before tax 101.3 (108.8) Current tax (25.4) (9.1) Net profit/(loss) for the period 75.9 (117.9) Attributed as follows: OHD shareholders 31.8 (96.7) Non-controlling interest 44.1 (21.2) Basic EPS (EGP) 0.14 (0.44)

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Notes

Revenues and gross profit margin increased due to the enhanced operational performance in all business segments. Other gains and losses includes: Profits from:

• Gains

in relation to settlement

• f

borrowings in the amount of EGP 114.0mn. Losses from:

• FX of EGP 40.0mn.
• Other items in the amount of EGP 3.0mn.

Increase in Finance costs mainly due to:

• Increase in foreign loans when translated to

EGP.

• Increase of interest rates.

The share of associates increased mainly due to the enhanced operations of the associate companies. Income Tax expense increased due the increase

• f the profitability of the company.

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Balance Sheet

Notes PPE decreased mainly due to the reclassification

• f the 3 rented hotels in Makadi to investment

property. Other assets increased mainly due to the increase in the investment property as a result of renting the 3 hotels in Makadi. Asset held for sale and liabilities held for sale increased mainly due to the increase in Tamweel activities during the period.

1 2

(EGP mn) 31.03.17 31.12.16 Property, plant and equipment 3,673.5 3,814.3 Inventories 601.2 586.0 Receivables 1,379.7 1,428.4 Cash and bank balances 769.3 871.1 Investments in associates 109.9 109.3 Other assets 1,205.7 940.4 Non-current assets held for sale 1,564.2 1,349.4 Total assets 9,303.5 9,098.9 Borrowings 4,468.4 4,647.4 Payables 340.3 352.7 Provisions 313.6 317.9 Other liabilities 1,188.7 1,087.7 Liabilities related to assets held for sale 1,347.9 1,117.6 Total liabilities 7,658.9 7,523.3 Non-controlling interests 395.8 355.7 Equity attributable to OHD shareholders 1,248.8 1,219.9 Total liabilities and equity 9,303.5 9,098.9

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Cash Flow Statement

(EGP mn) Q1 2017 Q1 2016 Cash from operations 15 105 Interest paid (7) (33) Taxes paid (9) (1) Operating Cash Flow (1) 71 Payments for PP&E (164) (66) Other items 15 11 Investing Cash Flow (149) (55) Change in Borrowings 68 19 Financing Cash Flow 68 19 Net change in cash/equivalents (82) 35 Cash & bank balances beginning of period 895 821 Cash and bank balances end of period 813 856 Notes

Decline in cash flow from operations mainly due to the acceleration of the construction activity in the real estate segment. Payments for PP&E increased mainly due to the increase in Tamweel activity during the period. Change in Borrowings mainly resulting from: (-) Debt repayment of EGP 184mn. (+) Loan proceeds related to Tamweel by EGP 168.0mn & others EGP 4mn. (+) Proceeds from other shareholders EGP 80mn.

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Financing Profile 1

Interest expense by currency

in %, as of 31.03.17

1 All debt figures exclude debt relating to Tamweel Mortgage Finance 2 Equity Ratio = Total Equity/Total Assets

Total debt by currency

in %, as of 31.03.17

31.03.17 31.12.16 Equity ratio (%)2 17.7% 17.3% Weighted average cost of debt (%) 7.90% 7.75% 37% 59% 4%

EGP USD EUR

17% 77% 6%

EGP USD EUR

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IR Dashboard

Investor Relations Contact:

Sara El Gawahergy Head of Investor Relations Tel Dir +20 (0) 22 461 89 61 Mobile CH: +41 41 874 1711 sara.elgawahergy@orascomdhcom ir@orascomdh.com www.orascomhd.com

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