Investor Presentation. January 2016

Transcription

1 Investor Presentation January 2016

2 Agenda OHD : Leading Developer Of Fully Integrated Towns Page 4 Page 15 Operational And Financial Summary Page 15 Page 25 Appendices Page 32 2

3 3 OHD : Leading Developer of Fully Integrated Towns

4 History- How It All Started Over 20 years ago, Orascom Development s founder Samih O. Sawiris had a simple idea to create a little piece of paradise on the exquisitely desolate Red Sea coast. This initial thought evolved over the years and became our principle. Year of Foundation Development of Taba Heights on the Gulf of Aqaba (Sinai Peninsula) starts Entered into a lease agreement with the Gov. to develop Amoun Island, 22,000 m 2 Project announcement of Haram City, Egypt, the first budget housing project with over 30,000 permanent residents Launch of Makadi Bay, 28 km away from Hurghada in the Red Sea Orascom Hotel Management (OHM) was established to manage the Group s Hotel inventory ODH sells 15.0% stake in OHD to reactivate its trading. OHD resumption of trading was effective January 6, First phase of El Gouna flagship project becomes operational Awarded 1.2 million sqm in Fayoum, Egypt to develop two luxury residential communities (Roboua & Byoum) Established ODH which acquired 99.7% of OHD through a tender offer & thus trading was halted, ODH s headquarter is in Altdorf, Switzerland and is listed on the SIX, Swiss Exchange Allocated 0.8 million m 2 in the Qena Governorate, the second budget housing project Deconsolidation of Orascom Housing Communities (OHC) & its subsidiaries; budget housing and construction & Sale of CMAR (Mauritius Club Med) 4

5 Orascom Hotels and Development (OHD) Today The Only Leading Developer of Fully Integrated Towns Including Real Estate, Hotels. activities, marinas Leisure, golf courses, hospitals, schools & all supporting infrastructure Spearheaded by a seasoned Executive Management Team with unparalleled expertise in the travel, tourism and real estate sector level 3 to 5 Star Hotels To suit different standards 39 Awards During 2014 for our hotels Continuous Progress on Strategy Execution Achieved all communicated targets of 2015 Listed on EGX with 221,247,258 outstanding shares ODH owns 84.6% of OHD The Largest Land Bank 45.9 million sqm, out of which 26.6 million sqm is still undeveloped 25 Over MORE THAN YEARS DEVELOPMENT EXPERIENCE 87% Stake in Tamweel, a financial services company providing mortgage, leasing, & insurance, among other services Approx. 7,158 Employees As of 30th Nov 2015 One of The Largest Hotels Portfolio 25 hotels, 18 self-managed and 7 Under Management with 5,955 rooms El Gouna Won The Green Town Award In % Of our hotels in Egypt are certified with Green Star 3 Operating Destinations El Gouna, Taba Heights & Makadi Fully integrated destinations offering hotels, residential units and luxury leisure Real Estate Sales of EGP 6.6 Bn Since

6 Unique, Vertically Integrated, Business Model OHD s business model incorporates owning and managing the whole value chain from the raw land acquisition to developing & operating real estate, hotels, and managing the destination: Development Phase Real Estate Operational Phase Real Estate Owner Services Securing land at nominal costs Hotel Development Hotel Operations Control of entire value chain from master planning and construction to operation of a destination Continuous pre-sales to finance ongoing investments In parallel, management has recently adopted the new strategic notion of selling large plots of land to third party developers, in a move to accelerate the monetization of land (Subdevelopment), while providing strict development guidelines, to ensure control over the development and maintain the architectural harmony of the destination New destination identification, acquisition & initial concept Destination Development Sub-development Land Value Creation Destination Operations Controlled Sale of Large Plots of Land to Third Party Developers 6

7 Business Segments- Overview Real Estate & Construction Destination Management Hotels Land Sales & Other Investments Land bank acquired at nominal costs Sale of middle-to-upper scale apartments and villas Local sales force in Egypt as well as international distribution channels Off-plan sales Sales of EGP 6.6 bn approx. 14,646 units 1 Public services & infrastructure maintaenance that includes: Water Services Sewage treatments Electricty 1,734 employees 25 Hotels, total of 5, self-managed, 7 under management Orascom Hotels Management (OHM) manages the self managed hotel inventory 4,178 employees Tamweel; Financial Services company 535 retail outlets 55 restaurants/bars 5 schools & universities 2 hospitals 4 marinas, 3 golf 155 employees 1,091 employees 2 Revenues 9M 2015 EGP mn 1 From M 2015 (gross number), excluding OHC 2 Including all company support funcitions in Egypt * Employees figures are as of the 30th of November Revenues 9M 2015 EGP 74.3 mn Revenues 9M 2015 EGP mn Revenues 9M 2015 EGP mn Land Sales: EGP mn Tamweel: EGP mn Other: EGP 88.8 mn

8 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Land Bank Strategically Located In First-Rate Destinations, With One Of The Most Compelling Hotel Portfolios In The Area OHD Boasts a Portfolio of Attractive Touristic Destinations El Gouna A private, self-sufficient town built on 10 km of the Red Sea coastline 35 km from the Hurghada International Airport it is considered to be one of the premium destinations on Egypt s Red Sea coast. Byoum Byoum is in El Fayoum, located 100 km southwest of Cairo in an ideal location overlooking the spiritual lake of Qarun. Taba Heights Taba Heights is situated between the mountain ranges of the Sinai Peninsula, near the tip of the Gulf of Aqaba and overlooking three countries. The resort town is only 25 km away from Taba International Airport. Makadi Makadi is the first gated community in the heart of Hurghada, only 30 km away from Hurghada International Airport. Complemented by One of the Largest Hospitality Portfolios in Egypt OHD Hotel Portfolio (Rooms) Sheraton Miramar Resort EL Gouna Miramar Taba Heights Resort Royal Azur (Hurghada) 15 Hotels 1 6 Hotels 3 Hotels 1 Hotel 25 Hotels 1, ,365 5,955 2,450 Steigenberger Sofitel Zahra (Nile Cruise) El Gouna Taba Heights Other Red Other Sea Hotels Red Sea Hotels The Oberoi Total 1 Excludes Arena Inn 8

9 El Gouna - OHD s Flagship Project, World Class Destination On The Egyptian Red Sea Coast El Gouna Key Facts Total land area : million sqm, Developed: million sqm, (39.1% developed) Number of hotels and rooms: 16 hotels with 2,627 rooms 1 ( four 5 *s, nine 4 *s and three 3*s) A private, self-sufficient town built on 10 km of the Red Sea coastline and located north of Hurghada, 35 km from the Hurghada International Airport The town offers a range of facilities such as a hospital, two 18-hole championship golf courses, three marinas, four schools, a library, and two universities branches Hotel KPIs, EGP Real Estate KPIs % 56% 61% 54% 60% 65% M2015 ARR TRevPar Occ. Rate 80% % % % 40% % % % 0 0% M 2015 Value of Contracted Units, EGP mn No of Units Average Price/sqm, EGP 000 s El Gouna Draws Most of its Clientele from Europe... Destination Update 9 Visitors Breakdown by Nationality 120% 100% 80% 60% 40% 20% 0% 19% 20% 29% 29% 17% 19% 16% 19% 29% 32% 27% 28% 12% 8% 9% 10% 6% 9% 10% 9% 48% 40% 13% 18% 27% 36% 25% 28% 22% 6% 5% 5% 7% 4% 6% M 2015 * Others include: Polish, Dutch, Italians and Scandinavians 1 Includes Arena Inn with 177 rooms, owned by ODH Egypt Germany Others UK Belgium France Russia Accelerating the construction of all launched projects during 2014, expecting to start delivery in Joubal by end of 3Q16, 6 months ahead of schedule. Launched new phases of Joubal and Sabina, with a total inventory of USD 50 mn. Launched Water Side Condos with a total inventory of USD 32.7 mn in Dec 15. Finalizing the construction of Ancient Sands hotel in El Gouna, to launch in 1Q Signed a new sub-development agreement for 100,000 m 2 for USD 20.0 mn. Global Human Settlements Award Global Green Town El Gouna 2014

10 Taba Heights Sinai s Premium Destination Taba Heights Key Facts Total land area : 4.27 million sqm Developed: 2.56 million sqm, (60.0% developed) Number of hotels and rooms: 6 hotels; 2,365 rooms (five 5* s and one 4 *s) Taba Heights is situated between the mountain ranges of the Sinai Peninsula only 25 km away from Taba International Airport The town offers a marina and a golf course alongside a wide range of facilities such as a medical center, child daycare services, a school, and a vibrant up-town center Hotel KPIs, EGP % 51% 44% 41% 29% % M 2015 ARR TRevPar Occ. Rate 80% 60% 40% 20% 0% Taba Heights Draws Most of its Clientele from Europe... Visitors Breakdown by Nationality 120% 100% 30% 24% 27% 18% 10% 80% 27% 41% 33% 21% 24% 60% 25% 23% 8% 10% 15% 10% 11% 21% 40% 20% 24% 13% 14% 18% 3% 10% 17% 6% 5% 11% 21% 20% 8% 8% 7% 11% 12% 6% 7% 10% 5% 10% 12% 18% 6% 7% 5% 11% 0% M 2015 * Others include: Polish, Jordanians Scandinavians and Italians 10 UK Others Israel France Egypt Belgium Russia Germany Destination Update Travel bans and strict warnings on Sinai continued to impact hotel operations. During the 9M15,only 4 hotels were operational (1,756 rooms) After the most recent attacks in Sinai and the continued travel bans, we have decided to shut down all hotels in Taba except Sofitel and transfer the majority of the staff to the hotels in Gouna and Makadi In the 9M 15, GOP losses generated from Taba Heights hotels alone amounted to CHF 3.4 mn

11 Makadi - The First Gated Community In The Heart Of Hurghada Makadi Key Facts Total land area : 3.39 million sqm Developed: 0.47 million sqm, (13.92% developed) Number of hotels and rooms: One 4* hotel with 283 rooms + two 4 * & 5 * Azur Hotels in Makadi with a total of 830 rooms (Royal Azur, a 5 star Hotel (491 rooms) & Club Azur, a 4 star Hotel (339 rooms) Makadi is the first gated community in the Hurghada region, only 30 km away from Hurghada International Airport The town resort features residential units and hotels, along with spacious commercial area, a medical center, among other services Hotel KPIs, EGP % 69% 60% 59% 52% 49% M 2015 ARR TRevPar Occ. Rate Real Estate KPIs 100% 1, % % % % % M 2015 Value of Contracted Units, EGPmn No of units Average Price/sqm, EGP 000 s Visitors Breakdown by Nationality 120% 100% 80% 56% 55% 53% 57% 57% 57% 47% 60% 11% 40% 12% 12% 14% 12% 17% 15% 11% 12% 11% 13% 6% 29% 20% 16% 9% 12% 14% 12% 15% 9% 9% 0% M * Others include: Polish, Italians, Scandinavians and Swiss Russia Egypt Germany France Others Belguim UK Destination Update Reviving the destination, expediting the design drawings for the destination s club house facility with plans to start its construction during 1Q 16. Hotels occupancies were affected by the recent plane crash in Sharm El Sheikh, whereby Russian market represented 47% of the guests in 9M15 Shut down two hotels (Makadi Gardens & Club Azur) Compensating lost Russian business from other source markets

12 Byoum The Heart of Fayoum, On Lake Qarun Byoum Key Facts Master Plan Total land area : 1.08 million sqm, Developed: 0.32 million sqm, (29.6% developed) Number of hotels and rooms: One 4* hotel with 62 rooms (20 hotel rooms and & 42 hotel apartments, expected to be launched in Q located 100 km southwest of Cairo in an ideal location overlooking the spiritual lake of Qarun. Plans are set to develop two luxury residential communities Sales started in 2008, to date we have sold 116 units with a total value of EGP 131 million Total remaining inventory is EGP 310 mn (USD mn) Reviving the Destination 1. Byoum Main Gate 5. Beach Club 2. 4 Star Hotel 6. Commercial Area 3. Hunting Lodge 4. Pier Finalizing the construction of Byoum Hotel, to be launched during Q Planning to launch new phases with a total inventory of EGP 30 mn (USD 3.9 mn) during Q

13 Agenda OHD : Leading Developer Of Fully Integrated Towns Page 4 Page 15 Operational And Financial Summary Page 15 Page 25 Appendices Page 32 13

14 14 Operational And Financial Summary

15 OHD Weathered Through Some Turbulent Times & Is Emerging Strong After The Storm With the recent political stability, start of an economic recovery in general and revival of the tourism sector in particular, OHD started benefiting through increased Real Estate Sales & Hotel revenues The Company s restructuring efforts over the last period are already bearing the fruits of its success through generally positive financial indicators Developing Arguably the Most Attractive Real Estate on the Red Sea, and Complemented by One of the Largest Hospitality Portfolios in Egypt, OHD Witnessed a Period of Unparalleled Success M 2015 Translating into a Solid Financial Performance Revenue (EGP mn) Contracted Units, Average Selling Price (Units, EGP ) Value of Contracted Units, EGP mn Average Price / sqm, EGP 000 s Number of Contracted Units EBITDA, Margin (EGP mn, %) TRevPar, Occupancy Rates 500 (EGP, %) % 55% 56% % % 53% M % TRevPAR Net Profit (EGP mn) Occupancy Rate 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% OHD is on track into outperforming its recent history. 1,425 1,399 1,195 1,435 1, M % 34% -5% M 2015 EBITDA, EGP mn Margin M OHC was deconsolidated in 2014, and hence, was excluded from our figures retrospectively 3 Includes the following one-off items: EGP 76mn gain from change in the fair value of an investment property in Gouna, and EGP 53mn gain from sale of a 6.0% stake in Garanah subsidiaries

16 Business Segments 9M 2015 Revenue EBITDA (EGP mn) 9M M 2014 Δ in % 9M M 2014 Hotels % Real Estate (46.1)% Land % Destination Management % (0.5) 12.6 Other Operations % Corporate & Unallocated Items (155.9) OHD Group 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 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. 16

17 Real Estate KPIs 9M 2015 & Deferred Revenue Value of contracted units (EGP mn) Number of contracted units Average Selling Price (EGP/m2) Value of deferred Revenue (EGP mn) Destination 9M 15 9M 14 9M 15 9M 14 9M 15 9M 14 9M 15 9M 14 El Gouna ,381 18, Fayoum Makadi ,171 4, Gardania , OHD Group ,033 14, Numbers net of cancellations: OHD Group Revenue Recognition Schedule (EGP mn) Destination Deferred Revenue Balance Q El Gouna Fayoum Makadi

18 Real Estate and Land Performance Update Real Estate On track with the sales target of the year, whereby Net sales in 9M15 has significantly increased by 203% to reach EGP mn compared to EGP mn in 9M14. Cash Collections from real estate sales in 9M 2015 reached EGP mn. Gouna Launched new phases of Joubal and Sabina, with a total inventory of USD 50 mn post the successful launch and sale-out of Joubal & Joubal lagoons (Total inventory of USD 83.5 million) Launched Water Side Condos project, with a total inventory of USD 32.7 mn in Dec 2015, introducing the new concept of rental management. First project to be launched in EGP Planning to launch Fanadir Bay 1 with a total inventory of approximately USD 50.0 mn during Q Offering new plots within existing projects in El Gouna with a total inventory of USD 3.0 mn in Q Accelerating the construction of all launched projects during 2014, expecting to start delivery in Joubal by end of Q3 2016, 6 months ahead of schedule. Land Fayoum We are planning to launch new products in Fayoum, with a total inventory of EGP 30 mn (USD 3.9 mn ) in Q Signed a new sub-development agreement with Hassan Allam over 100,000 m 2 in El Gouna for USD 20 mn in Sep 15 Sold a 10,000 m 2 land plot to an investor in El Gouna for USD 220 per m 2 in Dec 15 Continuing with our land bank monetization strategy bringing in potential investors to invest in value adding projects in our destinations, targeting a transaction within the value of USD million per year 18

19 19 Launches In El Gouna during Q4 15 & Q Total Inventory Of Approximately USD 83 Million

20 Joubal Views, Extension to Joubal Launched Project Description Built on carefully crafted elevated land & designed to give residents a panoramic view of their surroundings. From different levels; residents can see the marina, the sea, and the mountains. Key Facts Product 1 Location El Gouna, Egypt Type Twin Villas Launch Date September 2015 No of units 8 Footprint (sqm) 1,304 Total BuA (sqm) 1,336 Sales Plan 1 year Inventory value, USD 3,600,000 Final Delivery September 2018 Product 2 Type Villas No of units 5 Total BuA (sqm) 1,225 Inventory value, USD 3,750,000 20

21 Joubal Lagoon Phase 2 Launched Project Description Directly overlooking the lagoon and golf course, adding more features to the Joubal project units. Key Facts Location El Gouna, Egypt Launch Date September 2015 Total Project Area (m 2 ) 52,000 Footprint (m 2 ) 3,073 Sales Plan 1 year Final Delivery September 2017 Product 1 Type Twin Villas No of units 26 Total BuA (sqm) 4,342 Inventory value, USD 13,520,000 Product 2 Type Villas No of units 5 Total BuA (sqm) 1,715 Inventory value, USD 4,400,000 21

22 Sabina Twin Villas Launched Project Description Inspired from Nubian like design with a new modern edge, using earth colors, designed to give residents the luxury of space and privacy of their own pools and gardens. Key Facts Location El Gouna, Egypt Launch Date September 2015 Product Type Twin Villas Total Project Area (sqm) 33,454 Footprint (sqm) 2,715 Total BUA (sqm) 4,704 No of units 30 Inventory value, USD 12,600,000 Sales Plan 1 years Final Delivery September

23 Water Side Condos Newly launched Project Description Apartment Blocks, targeting Egyptian young families, offering affordability, function-ability & exclusivity, overlooking a unique water feature. Key Facts Location El Gouna, Egypt Launch Date December 2015 Product type Apartments Total Project Area (sqm) 45,643 Footprint (sqm) 5,897 Total BUA (sqm) 16,876 No of units 145 Inventory value, USD 32,698,083 Sales Plan 2 years Final Delivery December

24 Fanadir Bay To be launched in 2Q16 Project Description Fanadir Bay brings intelligently designed waterfront units to one of its most exclusive neighborhoods yet with its vast spaces and unique architecture, nothing stands against its originality. Key Facts Location El Gouna, Egypt Launch Date April 2016 Product Type Villas and Twin Houses Total Project Area (sqm) 224,300 Footprint (sqm) 8,728 Total BUA (sqm) 17,144 No of units 85 Inventory value, USD 50,000,000 Sales Plan 2 years Final Delivery

25 Byoum - Fayoum To be launched in 1Q16 Project Description Directly overlooking the spiritual lake of Qarun, plans are set to develop two luxury residential communities and a hotel Key Facts Location Fayoum, Egypt Launch Date Q Total Project Area (m 2 ) 3,935 m 2 Footprint (m 2 ) 1,910 m 2 Sales Plan 1 year Final Delivery Q Inventory Value, USD 3,900,000 25

26 Hotel KPIs 9M and 3Q 2015 Number of hotel rooms Occupancy rate (%) TRevPar (EGP) GOP PAR (EGP) Destination 9M 15 9M 14 9M 15 9M 14 9M 15 9M 14 9M 15 9M 14 El Gouna 1 2,450 2, Taba Heights 2 2,365 2, (66) (36) Makadi 1,113 1, Floating Hotels (216) (511) OHD Group 5,955 6, Number of hotel rooms Occupancy rate (%) TRevPar (EGP) GOP PAR (EGP) Destination 3Q 15 3Q 14 3Q 15 3Q 14 3Q 15 3Q 14 3Q 15 3Q 14 El Gouna 2,450 2, Taba Heights 2,365 2, (42) (6) Makadi 1,113 1, Floating Hotels (314) (316) OHD Group 5,955 6, Ocean View Hotel: No of operating rooms in Q3 15 were only 155. whereby, 79 rooms have been converted to residential units 2. During the 9M 2015,only 4 hotels were operating (1,756 rooms) in Taba Heights. Whereby, during 9M 2014, all 6 hotels were operating until May 2014, we shut down El Wekala and Bay View (both representing 609 rooms) 26

27 Hotels Performance Update Gouna Continued Hotel refurbishments, coupled with the reviewed contracting strategy introduced in 2014 and the new F&B outlets across El Gouna Hotels afforded a 14% increase in TRevPAR values in 9M 15 over 9M 14. Active measures to increase the efficiency of the segment. Converted 79 rooms of Ocean view hotel in El Gouna into residential units to be sold. Progressing with the development of the Ancients Sands hotel in El Gouna and Paradisio in Fayoum. Hotels are due to open in 2Q 16. Makadi Makadi Hotels sustained its positive performance, recording a 106% growth in GOP in 3Q 15 vs. 3Q 14. This performance resulted from OHM s take over of management in February The hotels achieved a GOP of EGP 20mn, representing a 144% increase for 9M 15 vs. 9M 14. Hotels in the area were negatively impacted by the Russian aircraft incident that took place in Oct Shut down of 2 hotels (Makadi Gardens and Club Azur), cutting down on expenses and special promotional campaigns in the East European, German and local markets to fill in the business gaps. Taba Heights In the 9M 15, net losses generated from Taba Heights hotels alone amounted to EGP 27 mn. Continuing with the cost-cutting measures at Taba Heights. We have downsized operations and have kept only Sofitel hotel open with 442 rooms. 27

28 Advanced Negotiations For An Optimum Debt Refinancing Package Management is currently undergoing a restructuring program in an effort to de-lever OHD s balance sheet down to normalized levels Net Debt Build-up (EGP mn) 571 3, , ,073 Overdrafts LTD CPLTD Tamweel Total Debt Cash Net Debt Total Debt Breakdown by Entity (EGP mn) 1 Hotels 278 2,680 OHD 2,402 The Company is planning to pay down ~EGP 700 mn of which the company had already paid EGP 270 mn for capitalized interest and past dues and is negotiating with banks to reschedule EGP 2,267 mn Loans Runoff Before Rescheduling (EGP mn) 1 Loans Runoff After Rescheduling (EGP mn) Total debt by currency ( %,) 1 Weighted average cost of debt (%) 10% 32% 58% EGP USD EUR % 7.60% All figures are as of 9M Excludes Tamweel 2 Planned outstanding debt including overdraft facilities and excluding Tawmeel, after paying off EGP 430 mn 28

29 Snap Shot - Income Statement And Balance Sheet 9M 2015, EGP Million Summary Income Statement 9M M 2014 Revenue 1,447 1,127 Cost of sales (822) (877) Gross profit Gross profit margin 43% 22% Profit / (loss) before tax Income tax expense (37) (55) Non-controlling interests 20 (14) Net profit / (loss)attributable to OHD shareholders Selected Balance Sheet Items Property, plant and equipment 3,817 3,743 Inventories Receivables 1, Cash and bank balances Total assets 7,483 7,152 Borrowings 3,251 3,227 Payables Other Liabilities 1,208 1,155 Total Equity 2,761 2,497 29

30 Agenda OHD : Leading Developer Of Fully Integrated Towns Page 4 Page 15 Operational And Financial Summary Page 15 Page 25 Appendices Page 32 30

31 31 Appendices

32 32

33 El Gouna - Hotels Map 33

34 ***** 12 Rooms ***** 420 Rooms ***** 134 Rooms A luxury guesthouse directly set on the northern shores of Mangroovy Beach and its kitesurfing stations. A brainchild of an antiques collector, the hotel offers seclusion making it an ideal hideaway for luxury seekers. An upscale beachfront resort offering a relaxing atmosphere combined with a lavish selection of on-ground facilities from diving to kitesurfing, world renowned Angsana Spa outlet and a nearby professional 18-hole golf course. A family-oriented hotel featuring colorful hillside accommodations reminiscent of Tuscan homes, select villas spread around a swimming lagoon, as well as deluxe seafront rooms benefiting from prime views over the hotel s sheltered bay. Hotel guests have exclusive access to the private Bellevue Beach ***** 339 Rooms ***** 268 Rooms **** 54 Rooms An award winning architectural mix of Arabian and Egyptian styles by the internationally renowned Michael Graves. The beachfront resort is built on nine islands surrounded by gardens offering mouthwatering cuisine, private beaches, outdoor heated pool, and water sports. A stylish Nubian oasis exclusively situated on El Gouna s Championship 18-hole golf course. Complemented by stunning architecture, breathtaking landscapes, sparkling lagoons, the hotel is home to a spa and fitness center for ultimate serenity and rejuvenation. Be it an absolute romantic holiday or a blend of romance and action, this 4-star hotel de charm is the spot. Boasting he most relaxing views of the New Abu Tig Marina coupled with some special treats for an unforgettable romantic holiday, the Adults Only hotel is minutes away from El Gouna s northern beaches. 34

35 **** 239 Rooms **** 69 Rooms **** 234 Rooms A beachfront resort with an all inclusive program. The 4-star hotel is built along a virgin beach expanse of a protected bay. Club-style animation and a myriad of sports activities make it a perfect choice for active families.. Overlooking the New Abu Tig Marina with direct access to El Gouna s northern beaches, Mosaique Hotel is ideal for sun and adventure seekers. The ultra fourstar hotel boasts cool décor, modern flair and amenities tailored to the convenience of its guests The Three Corners Ocean View offers a 4- star all inclusive experience in an Adults- Only environment. The hotel is home to two unique clusters, Le Soleil and Du Port, each offering a unique atmosphere with one overlooking the seafront and the other with fabulous Marina views **** 434 Rooms **** 115 Rooms **** 66 Rooms The 4-star all inclusive resort managed by a family-owned Belgian hotel chain. Offering unparalleled Red Sea holidays for families with children, the resorts unique architectural design is complemented by lush landscaped gardens Capturing the essence of Egypt with its winding alleys and stunning features, the hotel overlooks El Gouna s lagoons and offers a tropical garden setting in the heart of the town with easy access to the vibrant Tamr Henna Square. A charming Adults Only authentic hotel fashioned to reminiscent an Upper Egypt s Mayor s mansion in its most romantic setup. The hotel is complemented by superb interior design, a private lagoon beach and is adjacent to El Gouna s lively Downtown area. 35

36 *** 50 Rooms *** 67 Rooms *** 28 Rooms Directly overlooking the Abu Tig Marina promenade, minutes away from the beach, the 3-star Captain s Inn is one of El Gouna s most sought after small hotels welcoming divers, kite surfers, and partygoers. In the heart of the Abu Tig Marina with the most luxurious views and the most convenient accessibility! Famed for its terrace, Ali Pasha s nightly beauty is complemented by the delicacies served at the town s only Indian Restaurant, Tandoor. With only 28 guestrooms in the beautiful Abu Tig Marina, Turtle s Inn is one of El Gouna s most sought-after addresses. This modern hotel offers tastefully furnished rooms, refreshing style, and personalized service. *** 177 Rooms Arena Inn offers all the amenities and comforts of a holiday resort with a private swimming pool and beautifully designed waterfront restaurant. Hotel guests enjoy access to a full-service beach. 36

37 Taba Heights- Hotels Map 37

38 ***** 426 Rooms ***** 503 Rooms **** 394 Rooms Beautifully framed by the pristine natural environment, award winning architect Michael Graves created the beachfront resort as a paint box of colors and quirky shapes of Egyptian vaults and dome village styled architecture. Home to 3 swimming pools and a saltwater lagoon with its own beach, eight restaurants, a wide array of leisure facilities, the town s only Casino Consisting of three separate structures linked by tropical garden pathways and resting on a prime waterfront location, the resort offers breathtaking views of the sea, pool and desert mountains. The hotel offers 10 restaurants and bars, exclusive entertainment and with its state-of-the-art conference facilities, the hotel is the perfect business retreat. Swimming pools and a fully equipped health club. The beachfront resort is situated on over 44 acres of lush gardens, 2800sqm of pools and waterfalls with over 500sqm of pristine private beach and houses seven exclusive dining outlets, a private Spa, a Steam Room, Swedish Sauna treatments and Jacuzzi. ***** 442 Rooms ***** 385 Rooms **** 215 Rooms 38 The 4-star all inclusive resort managed by a family-owned Belgian hotel chain. Offering unparalleled Red Sea holidays for families with children, the resorts unique architectural design is complemented by lush landscaped gardens A signature Club Med Resort in the heart of Sinai. Providing exceptional opportunities to discover the region s famous attractions, the unique Resort is set on a beautifully preserved bay covering 27 hectares, flanked by a 600 yard stretch of private beach offering an ideal site for exploring the fabulous underwater life of the Red Sea Capturing the essence of Egypt with its winding alleys and stunning features, the hotel overlooks El Gouna s lagoons and offers a tropical garden setting in the heart of the town with easy access to the vibrant Tamr Henna Square.

39 ***** 491 Rooms **** 339 Rooms Located at Makadi bay, one of Hurghada s fascinating shores, 25km away from Hurghada International airport, the All Inclusive beachfront resort overlooks its own spacious private sandy beach, offering seven restaurants & bars, a fully equipped watersports center, two tennis courts, a squash court, billiards, a fully equipped fitness room and 2 swimming pools. Only 25km away from Hurghada International airport, the beachfront resort is easily accessible offering seven restaurants & bars, a fully equipped watersports center, two tennis courts, a squash court, billiards, a fully equipped fitness room and 2 swimming pools Makadi is settled in the heart of the Red Sea tourism hub located only 25 kilometers away from Hurghada International Airport and just a short drive from the bustling shopping and dining venues of Hurghada and Sahl Hasheesh. Featuring a variety of residential units, hotels, commercial and entertainment areas, as well as all the supporting infrastructure and services, Makadi allows individuals and families to benefit from a more active lifestyle. **** 284 Rooms Ideally located only a few kilometers away from Hurghada, Sahl Hasheesh and Safaga; the Adults Only Azur Makadi Gardens Hotel provides easy access to most of the Red Sea s world-class waterfront destinations with clustered facilities with its sister hotels Royal Azur and Club Azur. 39

40 Shareholding Structure * Shareholders by Country Shareholders by Type Shareholders Breakdown 1.44% 1.21% 2.88% 2.55% 8.23% 6.98% 1.65% 13.56% 7.21% 84.79% 84.79% Switzerland luxembourg UAE 84.83% Egypt KSA Other Parent Company ODH Other Institutions Retail ORASCOM DEVELOPMENT HOLDING AG ASHMORE SICAV IN RESPECT OF ASHMORE SICAV MIDDLE EAST EQUITY FUND Others Share Information No. of Shares Outstanding: mn Market Capitalization**: EGP 1.49 bn Reuters Code: ORHD.CA ISIN Code: EGS70321C012 Index Inclusion: EGX 100 * As of ** As of

41 Income Statement (EGP mn) M 2015 Total Revenues 2,831 2,250 2,099 1,415 1,399 1,195 1,435 1,448 Cost of sales (1,828) (1,379) (1,295) (1,046) (1,066) (987) (1,055) (710) Depreciation Expense (191) (192) (177) (178) (162) (130) (143) (112) Gross Profit % Margin 29% 30% 30% 13% 12% 7% 17% 43% Administrative expenses (129) (151) (83) (72) (79) (80) (69) (48) Investment income Other gains and losses (77) (161) (106) 226 (96) Provisions (17) (38) (14) (108) (49) (112) - (30) Finance costs (74) (76) (93) (138) (187) (230) (242) (173) Share of profit of associates (6) - (8) (33) (2) - (3) (16) Profit / (Loss) before tax (164) (268) (415) % Margin 22% 22% 28% -12% -19% -35% 12% 21% Income tax expense (51) (82) (46) (5) (67) (147) (71) (37) Profit / (Loss) from continuing operations (169) (335) (562) % Margin 20% 18% 26% -12% -24% -47% 7% 19% Profit / (Loss) from discontinuing operations (1) 7 Total income statement (170) (328) (562) Non-controlling interests (12) 27 (9) 6 (20) Owners of the Parent Company (158) (355) (553) Total income statement (170) (328) (562) Finance costs Income tax expense EBIT (27) (74) (185) % Margin 25% 25% 33% -2% -5% -15% 29% 33% Depreciation Expense EBITDA (55) % Margin 32% 33% 41% 11% 6% -5% 39% 41% 41

42 Historical Balance Sheet (EGP mn) M 2015 Cash & Cash Equivalents Net Receivables Total Inventory , , Debtors and other Debit Balances Due from Related Parties ,050 1, ,125 1, Assets Held for Sale , Other Current Assets Total Current Assets 2,880 3,050 3,267 3,273 3,055 4,042 2,604 2,545 Net Plant & Equipment 4,299 3,629 3,769 3,827 3,837 3,548 3,744 3,817 Long Term Receivables Goodwill Investments Investment Property Other Long Term Assets Total Assets 7,972 7,650 8,349 8,486 8,217 8,014 7,152 7,483 Short Term Debt 3 1,128 1,171 1,315 1,556 1,482 1,488 1,930 2,042 Accounts Payable Creditors and Other Credit Balances Liabilities Held for Sale Provisions Due to Related Parties Other Current Liabilities Total Current Liabilities 2,915 2,306 2,602 2,873 2,673 3,572 2,950 3,135 Long Term Debt ,566 1,547 1,732 1,207 1,297 1,209 Land Liability Shareholders Current Account Other Long Term Liabilities Total Liabilities 4,050 3,582 4,690 4,933 4,963 5,300 4,655 4,721 Minority Interest Shareholders' Equity 3,216 3,340 2,937 2,783 2,433 1,885 1,983 2,271 Total Liabilities & Equity 7,972 7,650 8,349 8,486 8,217 8,014 7,152 7,483 1 The drop was on the back of the deconsolidation of OHC 2 includes EGP 414 mn due from ODH, EGP 244mn due from Muriah Holding, EGP 94mn due from ORH Holding 42 3 The fluctuations in those accounts from M 2014, are due to the reclassification of CMAR & Tamweel as Assets Held for Sale in 2013, before reversing the reclassification of Tamweel and retaining it in 9M 2014

43 Board Of Directors Manal Hussein Abdel Razek OHD Executive Chairwoman Nabil Rashdan OHD Executive Vice Chairman Dr. Abdel Razek, has been the advisor to the chairman of Orascom Development since September 2013 on several projects. For more than 20 years she has served in the Egyptian Governmental sector, amongst others as Deputy Minister of Finance and Head of the Budgeting Committee from 2004 to 2013, and as Deputy Minister of Trade from 2003 to 2004 and advisor to the Minister of Economy from 1997 to She has been appointed by Presidential Decree as member of the Shura Consultative Council (upper house of the Egyptian parliament) from 2004 to She has also been appointed chairman of e-finance, the Egyptian market leader in the field of electronic payment solutions, and has served on the board of companies with interests in banking, aviation, tourism, transport and telecommunication. She holds a B.Sc. in Mass Communication with honors from Cairo University and an MA in Public Administration from the American University in Cairo where she was awarded the Frank Wisner Award for her outstanding thesis. In 2008, she received a PhD in Public Administration, with highest honors, from the Faculty of Economics and Political Science, Cairo University. Dr. Rashdan s expertise is quite enriched with a 20-year experience in different government entities and the private sector. He was Assistant Minister of Finance from July 2004 till May 2011 and an advisor to the Minister of Foreign Trade from 2001 to He was a board member in Bank of Alexandria and Misr Iran Bank and has chaired several national steering and implementation committees. Dr. Rashdan is acknowledged among policy developers in Egypt as an expert in developing and implementing policies that support the private sector in Egypt. During the period , Dr. Rashdan confidently transferred his profound expertise into the business world, where he led his privately owned company in the trade sector. Dr. Rashdan holds a B.Sc. in Commerce from Cairo University and a MBA from the Maastricht School of Management in Netherlands. In 2010, he received a Doctorate of Business Administration (DBA) from Ain-Shams University. Samih Sawiris Chairman ODH Non-Executive Member After receiving his Diploma in economic engineering from the Technical University of Berlin in 1980, Mr. Sawiris founded his first company, National Marine Boat Factory. In 1996, he established Orascom Projects for Touristic Development and in 1997 Orascom Hotel Holdings, the two companies later merged to form Orascom Hotels & Development S.A.E. (OHD). Furthermore, Mr. Sawiris established El Gouna Beverages Co. in 1997, which he sold in 2001 when it was the largest beverage company in Egypt. Mr. Sawiris now serves as chairman and CEO of Orascom Development. Eskandar Tooma CFO of ODH Non-Executive Member Dr. Tooma is a tenured professor of finance and holds the British Petroleum endowed chair with the School of Business at The American University in Cairo. He combines academic experience with practical exposure through assuming a variety of public and private professional posts. He was senior advisor to the Egyptian Capital Market Authority for 3 years, as well as a member of a variety of committees including the EGX30 Index Committee, Market Advancement Committee at the Egyptian Stock Exchange, an advisor and member of the Derivatives and Commodities Exchange Committee with the Ministry of Investments and an advisor to the Ministry of International Cooperation on Egypt s Debt Swap Experience. Mr. Tooma sits on the board of two EGX listed and actively traded companies: Said Hanafi General Counsel of ODH Non-Executive Member Mr. Hanafi oversees the legal work of the Group across all the active destinations and was in charge of the Group s restructuring. Prior to joining Orascom Development Holding (September 2010), Mr. Hanafi worked as an associate at the World Bank Legal Vice Presidency in Washington; as a Policy Analyst at the OECD in Paris and spent two years in London working as an in house lawyer for the Middle East's largest steel producers. He edited legal guides on Egypt, Iraq, Morocco, and Libya; and published a number of articles in international law reviews. He holds a law degree from Cairo University Law School (with highest honors), where he also held a lectureship (2001). Mr. Hanafi obtained Masters of Law -LLM (with honors) from the University of London (2004). 43

44 Board Of Directors Dalia El Gezery Representative of ODH Non Executive Member Mahmoud Abdallah Independent Member Michelle Lamarache Independent Member Michael Ryan Independent Member Ms. El Gezery has more than 20 years of international experience in leadership and providing innovative human capital management solutions. Held different senior management roles at Vodafone Egypt serving most recently as HR Director and member of the Executive Management. She transformed the HR operating model into a business driven, strategy focused organization and built a trademark working environment that was awarded the title of "Egypt's Best Employer" for 5 consecutive years by Nelson Research. Sits on the board of the Vodafone Foundation. She has a Management Diploma in Business Administration and Human Resources from the American University in Cairo and is about to complete a Master of Science in Coaching and Behavioral Change from Henley Business School at the University of Reading, UK. Mr. Abdallah is the Managing Partner and CEO of MMA Global Investments LLC, an advisory and investment firm. He has over 30 years of experience in the insurance and financial industry, including real estate investment, mergers and acquisitions, consulting, privatization and global initiatives. He is a senior advisor to The Rockefeller Brothers Fund Egypt Program. He was the architect of insurance reform in Egypt, where he served as Chairman and CEO of Misr Insurance Holding Company (MIHC) from He oversaw one of the largest mergers and restructurings in the Middle East. Prior to that, Mr. Abdallah worked for American Re Corporation for 20 years, one of the top providers of insurance and reinsurance in the world. He served as Executive Vice President as well as President of International Operations. He played a major role in the MBO of the company with KKR and the subsequent merger with Munich Re. He also served on the board of the International Insurance Council in the U.S., where he was elected Chairman twice. He is currently a board member of Validus Holdings, Ltd, sits also on the board of HSBC Egypt, the Metropolitan Opera in New York, and a member of the National Council for Arts and Sciences at George Washington University Mrs. Lamarche is the head of Lazard Government Advisory Group. She focuses on Government Advisory relating to macro-financial policies. Recent assignments include advising the Government of Egypt and the Bolivarian Republic of Venezuela on macroeconomic and financial strategic matters, the Hellenic Republic in the assessment and resolution of the financial crisis and PSI debt restructuring and in their current discussions with the Eurozone and the IMF. She was team leader in advising the Government of Iraq in its negotiations with Paris Club creditor countries, assisting the Jordanian Government in the Jordan Post privatization and was involved in several assignments in Algeria, notably for the Sonatrach (Algerian national oil company), Tunisia and Morocco Prior to joining Lazard, Mrs. Lamarche worked at Bank of America Paris and London in the banking department as a Vice President responsible for the Maghreb countries and France. Mrs. Lamarche is a member of the IIF special committee on financial stability and the IMF informal advisory committee on debt restructuring. She is a graduate of the Ecole des Hautes Etudes Commerciales (HEC), Paris, and holds a M.B.A. from the University of Berkeley, California. Mr. Ryan is a pioneer and visionary in luxury resort and residential development. For more than twenty years he has consistently broken new ground and raised the bar for what is possible. He partnered with people who are all recognized as the very best in their fields, whether it is Greg Norman for Golf design, Eric Ripert for food, Nick Bollittieri for Tennis, La Prairie for Spas, Jean-Michel Cousteau for environmental programs, Ritz-Carlton for hotels and service. Similarly in the fields of finance; Blackstone Group, Credit Suisse, Royal Bank of Scotland, Mitsui Sumitomo and others chose to work with Mr. Ryan. His most recent project in London, Lloyds Chambers, where he has partnered with former Treasury Secretary John Snow, Fosun and Aviva is another example of his ability to see value and act on it to secure outsized returns. Mr. Ryan is based, through his company Silverfin Development in Grand Cayman, and has been involved in projects from Canada to Costa Rica, London to Vietnam. He is prominently known in Cayman for his charity work having, for the past ten years, been the main benefactor of the Cayman Islands Crisis Centre, raising funds for this charity through the now famous annual Legends Tennis Charity Event. He was Chairman of the Cayman Islands National Investment Council, and has been on the boards of the Private Finance Initiative Oversight Committee, the Cayman Islands Investment Council and the Planning Review Committee. 44

45 Board Of Directors Abdelhamid Abouyoussef OHD Executive Chief Hotel Officer Eng. Abouyoussef started his career in design and installation of hotel electro-mechanical systems in 1998.He soon moved to project management in hotel construction, in addition to being the owner s representative at Amphoras Holiday Inn, Sharm El Sheikh. He now has his own company, Shores Hotels currently managing 1,600 rooms across Egypt. He also founded a travel agency that handles over 100,000 tourists per year. Eng. Abouyoussef helped develop Orascom Hotels Management, a JV between ODH and Shores, to manage OHD s entire hotels portfolio, and other hotels on the ODH level. Eng. Abouyoussef received his B.S. in Mechanical Engineering from the American University in Cairo and a Masters of Science degree from the University of California at Berkeley. Amr Badr OHD Non Executive Member Amr Badr currently holds the position of Regional Managing Director of Abercrombie & Kent for Egypt and the Middle East. Abercrombie & Kent has been a worldwide leader in luxury travel since its establishment in Abercrombie & Kent Egypt is a full-service travel agency and ground operator with extensive experience in leisure, cruise, conferences, events, and educational travel. Mr. Badr also oversees A&K s operations in Morocco, Jordan, and Libya. In 2013, Amr Badr has been appointed to be a Board member on the Egypt U.S. Business council and also on the Board of the Egyptian National Tourism Association. Mr. Badr also serves as International advisor for the Future University in Egypt as well as the Board of Directors of Tomorrow s Youth International Organization based in Washington. He is also an active member of the Egypt Chapter of the Partners of New Beginning based in Washington. Mr. Badr also serves as an advisor to the Chairman & CEO of Carbon Holding International, the largest fertilizer and petrochemical company in the region. As a longtime advocate for peace and increased international understanding, Mr. Badr also serves on the Board of Directors of Seeds of Peace, an organization dedicated to empowering young leaders from regions of conflict with the leadership skills required to advance reconciliation and coexistence. Badr also serves on the Board of Directors of People to People International and serves on the Advisory Board of the United States Center for Citizen Diplomacy. 45

46 Executive Management Team Manal Hussein Abdel Razek OHD Executive Chairman Nabil Rashdan OHD Executive Vice Chairman Abdelhamid Abouyoussef ODH Chief Hotel Officer For more than 20 years Dr. Abdel Razek has served in the Egyptian governmental sector, amongst others as Deputy Minister of Finance and Head of the Budgeting Committee, as Deputy Minister of Trade from and advisor to the Minister of Economy. Furthermore, she was a member in the council of the Shura Consultative Council ((upper house of the Egyptian parliament) and a member in the Economic and Financial affairs committee Dr. Abdel Razek has also been appointed chairman of e-finance, the Egyptian market leader in the field of electronic payment solutions, and has served on the board of companies with interests in banking, aviation, tourism, transport and telecommunication Dr. Abdel Razek holds a B.Sc. in Mass Communication with honors from Cairo University and an MA in Public Administration from the American University in Cairo where she was awarded the Frank Wisner Award for her outstanding thesis. In 2008, she received a PhD in Public Administration, with highest honors, from the Faculty of Economics and Political Science, Cairo University Dr. Rashdan s expertise is quite enriched with a 20-year experience in different government entities and the private sector. He was Assistant Minister of Finance from July 2004 till May 2011 and an advisor to the Minister of Foreign Trade from 2001 to He was a board member in Bank of Alexandria and Misr Iran Bank and has chaired several national steering and implementation committees. Dr. Rashdan is acknowledged among policy developers in Egypt as an expert in developing and implementing policies that support the private sector in Egypt. During the period , Dr. Rashdan confidently transferred his profound expertise into the business world, where he led his privately owned company in the trade sector. Dr. Rashdan holds a B.Sc. in Commerce from Cairo University and a MBA from the Maastricht School of Management in Netherlands. In 2010, he received a Doctorate of Business Administration (DBA) from Ain-Shams University. Eng. Abouyoussef started his career in design and installation of hotel electro-mechanical systems in 1998.He soon moved to project management in hotel construction, in addition to being the owner s representative at Amphoras Holiday Inn, Sharm El Sheikh. He now has his own company, Shores Hotels currently managing 1,600 rooms across Egypt. He also founded a travel agency that handles over 100,000 tourists per year Eng. Abouyoussef helped develop Orascom Hotels Management, a JV between ODH and Shores, to manage OHD s entire hotels portfolio, and other hotels on the ODH level Eng. Abouyoussef received his B.S. in Mechanical Engineering from the American University in Cairo and a Masters of Science degree from the University of California at Berkeley Ashraf Nessim OHD Chief Financial Officer Eng. Nessim has more than 20 years of experience in various fields including finance, infrastructure and hospitality Eng. Nessim started his career at Xerox, before moving to Mobiserve, a subsidiary of Orascom Telecom, where he eventually assumed the role of CFO Before joining OHD as the group CFO, Eng. Ashraf was the CFO of Pick Albatros, one of the largest players in the travel and tourism industry in Egypt Eng. Ashraf holds a B.S in Mechanical Engineering from Zagazig University, he is also a CFA chartered holder since 2004 Ossama Aboualam OHD Chief Development Officer Has 14 years of working experience, eight years of which in the IT industry. He gained the international exposure and corporate experience through working with and for multinational companies with the main focus on sales and account management After his career in IT, he turned to the real estate sector. Mr. Aboualam has more than 6 years of experience in the real estate industry, 5 years of which in real estate project development and management Currently, Mr. Aboualam is the Chief Development Officer of OHD and is responsible for leading the development process from conceptualization through the launch, execution and delivery of each and every project. 46

47 IR Dashboard Investor Relations Contact: Sara El Gawahergy Director of Investor Relations Tel Dir +20 (0) Mobile EGY: Mobile CH: