Investor Presentation. August 2015

Transcription

1 Investor Presentation August 2015

2 Agenda OHD : Leading Developer of Fully Integrated Towns Page 4 OHD - A Compelling Investment Case Page 15 Operational And Financial Summary Page 25 Appendices Page 35 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, 28km away from Hurghada in the Red Sea Orascom Hotel Management (OHM) was established to manage the Group s Hotel inventory ODH sells 15% stake in OHD to reactivate its trading OHD resumption of trading effective 6 th January 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 2014 Listed on EGX with 221,247,258 outstanding shares One of The Largest Land Banks 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. 7,000 Employees One of The Largest Hotels Portfolio 25 hotels, 14 self-managed and 11 Under Management 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 6.1 bn Since

6 Management Processes Support Processes 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 Land Bank Monetization Operational Phase Support Functions Securing land at nominal costs Real Estate Real Estate Owner Services 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 Hotel Development Destination Development Sub-development Hotel Operations Destination Operations Controlled Sale of Large Plots of Land to Third Party Developers 6

7 Business Segments- Overview Real Estate 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 6.1 bn approx. Public services & infrastructure maintaenance that includes: Water Services Sewage treatments Electricty 1,371 employees 25 Hotels, total of 6, self-managed, 10 under management Orascom Hotels Management (OHM) manages company s hotel inventory 4,606 employees Other Investments: Tamweel; Financial Services company 535 retail outlets 55 restaurants/bars 5 schools & universities 2 hospitals 14,460 units 1 91 employees 4 marinas, 3 golf 866 employees 2 Revenues 1H 2015 EGP mn Revenues 1H 2015 EGP 44.3mn Revenues 1H 2015 EGP mn Revenues 1H 2015 EGP mn 7 1 From H 2015 (gross number), excluding OHC 2 Including all company support funcitions in Egypt

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 35km 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 100km 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 25km away from Taba International Airport Makadi Makadi is the first gated community in the heart of Hurghada, only 30km 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 6,036 2,530 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 : 36.9 million sqm, Developed: 14.4 million sqm, (39.1% developed) Number of hotels and rooms: 16 hotels with 2,707 rooms 1 ( four 5 *s, eight 4 *s and three 3*s) A private, self-sufficient town of over 25,000 permanent residents built on 10 km of the Red Sea coastline and located north of Hurghada, 35km 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% 59% 49% H2015 ARR TRevPar Occ. Rate 80% % % % 40% % % % 0 0% H 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 during 1H 2015 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% 22% 38% 25% 28% 25% 6% 5% 6% 7% 4% 6% H 2015 Egypt Germany Others UK Belgium France Russia Increasing sales through diversifying the product mix, timely offering of serval products to serve different clientele Launched Joubal & Joubal Lagoon; new real estate residence/neighborhood projects, both sold out. Finalizing the construction of Ancient Sands hotel in El Gouna, to launch in Dec 2015 Launched ElGouna-FTI new joint-marketing campaign Global Human Settlements Award Global Green Town El Gouna Advanced negotiations to conclude a new sub-development agreement over 100,000m * Others include: Polish, Dutch, Italians and Scandinavians 1 Includes Arena Inn with 177 rooms, owned by ODH

10 Taba Heights Sinai s Premium Destination Taba Heights Key Facts Total land area : 4.3 million sqm Developed: 2.6 million sqm, (60% 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 25km 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% % H 2015 ARR TRevPar Occ. Rate 80% 60% 40% 20% 0% Taba Heights Draws Most of its Clientele from Europe... Destination Update during 1H 2015 Visitors Breakdown by Nationality 120% 100% 30% 24% 27% 18% 10% 80% 29% 27% 41% 21% 24% 60% 25% 23% 8% 10% 15% 10% 11% 21% 40% 20% 14% 24% 25% 18% 3% 10% 17% 6% 5% 11% 20% 8% 11% 9% 8% 7% 12% 6% 7% 10% 5% 10% 12% 18% 7% 18% 0% 5% H 2015 * Others include: Polish, Jordanians Scandinavians and Italians 10 UK Others Israel France Egypt Belgium Russia Germany Travel bans and strict warnings on Sinai continued to impact hotel operations. During the 1H 2015, Taba operated at 50% of its capacity. 3 hotels were shut down.

11 Makadi - The First Gated Community In The Heart Of Hurghada Makadi Key Facts Total land area : 3.5 million sqm Developed: 0.6 million sqm, (9% developed) Number of hotels and rooms: One 4* hotel with 284 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 30km away from Hurghada International Airport The town resort features residential units and hotels, along with spacious commercial area, a medical center, a school, among other services Reviving the Destination Signed two new contracts in Makadi destination with an external developer (Tara Egypt), to manage the destination s existing retail outlets and build its club house facility (for EGP 15 mn) Granting Tara Egypt exclusive management of the destination s existing retail outlets, list of potential rentals include: (Drinkies, Ocean Super market, Gelato, Five hear (Italian Bistro) etc..) Finalizing an agreement with an external developer and a reputable school to manage the destination school and offer a national and international system Real Estate KPIs 0 Hotel KPIs, EGP , % 52% 60% 49% 59% 63% H 2015 Visitors Breakdown by Nationality 120% 100% H 2015 Value of Contracted Units, EGPmn Average Price/sqm, EGP 000 s ARR TRevPar Occ. Rate 16 No of units 80% 37% 56% 55% 53% 57% 57% 57% 60% 11% 40% 12% 12% 14% 12% 17% 15% 32% 11% 12% 11% 20% 13% 6% 16% 9% 12% 14% 12% 15% 9% 17% 0% H 2015 * Others include: Polish, Italians, Scandinavians and Swiss % 80% 60% 40% 20% 0% Russia Egypt Germany France Others Belguim UK 11

12 Byoum The Heart of Fayoum, On Lake Qarun Byoum Key Facts Total land area : 1.2 million sqm, Developed: 0.6 million sqm, (9% developed) Number of hotels and rooms: One 4* hotel with 62 rooms (20 hotel rooms and &42 hotel apts, 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, till today we have sold 154 units with a total value of EGP 168 million Master Plan 1. Byoum Main Gate 5. Beach Club 2. 4 Star Hotel 6. Marina 3. Hunting Lodge 7. Commercial Area 4. Pier Reviving the Destination Finalizing the construction of Byoum Hotel, to be launched during 1Q

13 Agenda OHD : Leading developer Of Fully Integrated Towns Page 4 OHD - A Compelling Investment Case Page 15 Operational And Financial Summary Page 25 Appendices Page 35 13

14 14 OHD : A Compelling Investment Case

15 Strong Growth Strategy Focusing On Growing Core Business & Maximizing Efficiency Growing Core Business & Accelerating Land Development and Monetization Real Estate Developing more efficient units & increasing inventory mix to address different market segment Focusing on adding value added amenities that add to the destination experience and visitor spend Launching 5 new projects with a total inventory of USD 80 mn during Q4 15 & Q1 16 Adopting a sub-development model whereby land is developed by third parties under strict development guidelines Hotels Established a fully owned hotel management company, OHM Revisited all hotel management agreements to assess the cost-benefit case by case Developed a yield system to increase early booking & improve cash flow planning Centralized key functions across hotels Building on the synergies with FTI & RTK Destination Management Enhance the quality of services offered in the different destinations, including schools, marinas and hospital to premium levels Maximizing Efficiency Optimizing Cost Base in Proportion to Target Revenue Levels Restructuring the organization making it leaner and more efficient through reducing unneeded SG&A expenses Control construction costs & execution time to drive up profitability & revenue recognition Revising legal structure, to benefit from tax optimization Renegotiated procurement deals to reduce cost of goods sold in the hotels segment Out-sourcing key town management services to become efficient and profitable such as limousine transportation and schools management Significant Debt Reduction Reduce total debt by EGP 700 mln ODH sold 15% stake in OHD for over EGP 0.5 billion, the proceeds of are assigned to servicing OHD s debt Rescheduled principal and interest payments with Egyptian banks Negotiating an optimum debt refinancing package taking into account grace period, pricing, tenor and currency mix expected to be finalized by the end of the year Business Model Optimization and Organizational Development 15

16 16 New Project Launches In El Gouna during Q4 15 & Q Total Inventory Of USD 80 Million

17 Water Side Condos 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) 49,614 Footprint (sqm) 7,702 Total BUA (sqm) 20,900 No of units 176 Inventory value 39,312,901 Sales Plan 2 years Final Delivery December

18 Sabina Twin Villas 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

19 Joubal Views, Extension to Joubal 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 19

20 Joubal Lagoon Phase 2 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 20

21 Joubal Golf Project Description Overlooking the stunning views of the golf course and adjacent to Joubal Lagoon Key Facts Location El Gouna, Egypt Launch Date September 2015 Total Project Area (sqm) 23,000 Footprint 2,449 Sales Plan 1 year Final Delivery September 2018 Product 1 Type Twin Villas No of units 22 Total BuA (sqm) 4,004 Inventory value, USD 10,400,000 Product 2 Type Villas No of units 5 Total BuA (sqm) 1,225 Inventory value, USD 3,430,000 21

22 Ongoing And Potential Investment Opportunities Ongoing Opportunities 1) New Sub Development Agreement: Holding advanced negotiations with a wellknown Egyptian sub-developer land parcel in El Gouna of c.100,000 m 2 Price per m 2 : USD ) Solar Power Plant Land Area: 1.33 million m 2 Plant Capacity: 50MW. 2% from the generated revenues We have designated the land plots referenced below to several projects in the pipeline to include: 1) Five Stars Hotel & Residence, c. 300,000 m 2 2) Aqua Park 3) Business Park & Conference Center 22

23 Agenda OHD : Leading Developer Of Fully Integrated Towns Page 4 OHD - A Compelling Investment Case Page 15 Operational And Financial Summary Page 25 Appendices Page 35 23

24 24 Operational And Financial Summary

25 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 Contracted Units, Average Selling Price (Units, EGP ) H 2015 Translating into a Solid Financial Performance Revenue (EGP mn) 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% % % 49% H % 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 1,435 1, H % 34% -5% H H 2015 EBITDA, EGP mn Margin 25 1 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

26 Business Segments 1H 2015 Revenue EBITDA (EGP mn) 1H H 2014 Δ in % 1H H 2014 Δ in % Hotels % % Real Estate (59%) (36%) Land % (1.8) - Destination Management % (0.2) (15.2) - Other Operations % % Corporate & Unallocated Items (93.4) OHD Group % % 26

27 Real Estate KPIs 1H 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 1H 15 1H 14 1H 15 1H 14 1H 15 1H 14 1H 15 1H 14 El Gouna ,294 18, Fayoum , Makadi ,162 4, Gardania , OHD Group ,801 15, Numbers net of cancellations: OHD Group Revenue Recognition Schedule (EGP mn) Destination Deferred Revenue Balance 2H El Gouna Fayoum Makadi

28 Real Estate Performance Update Successful outcome resulting from the first implementations of the new real estate strategy, with preliminary results being witnessed during 2Q15. Net sales in 2Q15 alone increased by 307% to reach EGP mn vs. EGP 86.8 mn in 2Q14 Cash Collections from the new sales in 2015 to date reached EGP 88.8mn Joubal Launched Joubal and Joubal Lagoons in Q4 14 and Q1 15 Almost sold out Joubal lagoons Launch Date October 2014 Total Inventory units 111 Total Inventory value,usd 46.5 million Sold 90% Final Delivery October 2016 Launch Date March 2015 Total Inventory units 92 Total Inventory value, USD 36.9 million Sold 91% Final Delivery March

29 Hotel KPIs 1H And 2Q 2015 Number of hotel rooms Occupancy rate (%) TRevPar (EGP) ARR PAR (EGP) Destination 1H 15 1H 14 1H 15 1H 14 1H 15 1H 14 1H 15 1H 14 El Gouna 2,530 2, Taba Heights 2,365 2, Makadi 1,114 1, Floating Hotels ,065 3,180 OHD Group 6,036 6, Number of hotel rooms Occupancy rate (%) TRevPar (EGP) ARR PAR (EGP) Destination 2Q 15 2Q 14 2Q 15 2Q 14 2Q 15 2Q 14 2Q 15 2Q 14 El Gouna 2,530 2, Taba Heights 2,365 2, Makadi 1,114 1, Floating Hotels ,324 2,724 OHD Group 6,036 6,

30 Hotels Performance Update The commitment deals and the new yielding strategy & pricing protocol introduced back in 2014 afforded a 33% increase in occupancy rates in 2Q 2015 (Q-on-Q) reflecting positively on the total revenue in spite of the security challenges that Egypt is confronting Progressing with the development of the Ancients Sands Hotel in El Gouna Egypt and Byoum Hotel in El Fayoum, planned to open in Q A sustained progress of El Gouna Hotels online sales in 1H 2015 (H-on-H) recording a 63% increase in total revenue coupled with a 20% increase in room rate Changed the management structure in the Makadi hotels, which witnessed a notable boost in their performance with a 300% increase in GOP in 2Q 2015 (Q-on-Q) Launched El Gouna-FTI new joint-marketing campaign facilitating an 80% growth in FTI s room-night in 2Q

31 ,500 3,000 2,500 2,000 1,500 1, 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) 551 3, , ,049 Overdrafts LTD CPLTD Tamweel Total Debt Cash Net Debt Total Debt Breakdown by Entity (EGP mn) 1 Hotels 350 2,635 2 OHD 2,285 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 1,198 mn in overdrafts Loans Runoff (EGP mn) Weighted average cost of debt (%) 7.53% 7.60% Total debt by currency ( %,) 1 10% 58% EGP 32% USD All figures are as of 1H Excludes Tamweel 2 Debt held at the holding level 31

32 Snap Shot - Income Statement And Balance Sheet 1H 2015, EGP Million Summary Income Statement 1H H 2014 Revenue Cost of sales (552) (633) Gross profit Gross profit margin 41% 16% Profit / (loss) before tax Income tax expense (38) (43) Non-controlling interests 12 (7) Net profit / (loss)attributable to OHD shareholders 167 (42) Selected Balance Sheet Items Property, plant and equipment 3,831 3,743 Inventories Receivables 1, Cash and bank balances Total assets 7,313 7,152 Borrowings 3,188 3,227 Payables Other Liabilities 1,226 1,155 Total Equity 2,646 2,497 32

33 Agenda OHD : Leading Developer Of Fully Integrated Towns Page 4 OHD - A Compelling Investment Case Page 15 Operational And Financial Summary Page 25 Appendices Page 35 33

34 34 Appendices

35 35

36 El Gouna - Hotels Map 36

37 ***** 13 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. 37

38 **** 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. 38

39 *** 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, kitesurfers, 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. 39

40 Taba Heights- Hotels Map 40

41 ***** 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 41 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.

42 ***** 491 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. **** 339 Rooms 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. 42

43 Shareholding Structure Shareholders by Country Shareholders by Type Shareholders Breakdown 2.58% 1.54% 1.21% 2.71% 8.18% 7.14% 1.65% 13.67% 7.26% 84.68% 84.68% Switzerland luxembourg 84.69% Egypt KSA Parent Company ODH Other Institutional 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 1.9 bn Reuters Code: ORHD.CA Index Inclusion: EGX 100 * As of ** As of

44 Income Statement (EGP mn) H 2015 Total Revenues 2,831 2,250 2,099 1,415 1,399 1,195 1, Cost of sales (1,828) (1,379) (1,295) (1,046) (1,066) (987) (1,055) (479) Depreciation Expense (191) (192) (177) (178) (162) (130) (143) (73) Gross Profit % Margin 29% 30% 30% 13% 12% 7% 17% 41% Administrative expenses (129) (151) (83) (72) (79) (80) (69) (37) Investment income Other gains and losses (77) (161) (106) 226 (69) Provisions (17) (38) (14) (108) (49) (112) - 14 Finance costs (74) (76) (93) (138) (187) (230) (242) (118) Share of profit of associates (6) - (8) (33) (2) - (3) (10) 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) (38) Profit / (Loss) from continuing operations (169) (335) (562) % Margin 20% 18% 26% -12% -24% -47% 7% 17% Profit / (Loss) from discontinuing operations (1) 7 Total income statement (170) (328) (562) Non-controlling interests (12) 27 (9) 6 (12) 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% 44

45 Historical Balance Sheet (EGP mn) H 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 2,460 Net Plant & Equipment 4,299 3,629 3,769 3,827 3,837 3,548 3,744 3,831 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 7,313 Short Term Debt 3 1,128 1,171 1,315 1,556 1,482 1,488 1,930 1,977 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 3,078 Long Term Debt ,566 1,547 1,732 1,207 1,297 1,211 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 4,667 Minority Interest Shareholders' Equity 3,216 3,340 2,937 2,783 2,433 1,885 1,983 2,148 Total Liabilities & Equity 7,972 7,650 8,349 8,486 8,217 8,014 7,152 7,313 1 The drop was on the back of the deconsolidation of OHC 2 includes EGP 355mn due from ODH, EGP 244mn due from Muriah Holding, EGP 94mn due from ORH Holding 45 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

46 Board Of Directors Manal Hussein Abdel Razek OHD Executive Chairwoman Nabil Rashdan OHD Executive Vice Chairman Samih Sawiris Chairman and CEO of ODH Non-Executive Member 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. 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). 46

47 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. 47

48 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 ofeach and every project. 48

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