9M 2017 Results 15 November 2017

Transcription

1 9M 2017 Results 15 November

2 Agenda 9M 2017 Key Highlights Page 3 9M 2017 Destination Progress and Outlook Page 5 Financial Review Page 16 2

3 Key Highlights 9M 2017 Solid operational performance across all business segments in all destinations. A 25.5% increase in net real estate sales to reach CHF 86.1 million vs. CHF 68.6 million in 9M 2016 million with more contribution coming from El Gouna, Hawana Salalah, Sifah and Luštica. Revenues back to growth to reach CHF million vs. CHF million in 9M 2016 accompanied by significant growth by the Egyptian subsidiary recording 79.5% increase in revenues Y-o-Y. A 69.0% increase in Hotels Gross Operating Profits (GOP) to CHF 31.6 million vs. CHF 18.7 million in 9M Adjusted EBITDA increased by 15.8% to CHF 16.1 million in 9M 2017 vs. CHF 13.9 million in 9M Net loss attributable to shareholders for the reporting period was substantially reduced by 50.1% to CHF 30.3 million vs. CHF 60.7 million in 9M In Egypt, currently holding advanced discussions with private land owners in the North Coast to enter the second homes markets. 3

4 Agenda 9M 2017 Key Highlights Page 3 9M 2017 Destination Progress and Outlook Page 5 Financial Review Page 16 4

5 Business Segments 9M 2017 Revenue EBITDA Adj. EBITDA 1 (CHF mn) 9M M 2016 Δ in % 9M M M M 2016 Hotels % Real Estate % Land Town Management (15.8%) (4.8) (2.4) (4.8) (2.6) Tamweel Group (18.1%) Corporate & Unallocated Items (24.6) (54.5) (18.2) (19.7) ODH Group % 15.7 (14.6) Adjusted EBITDA: EBITDA adjusted for non cash items (which includes provisions & impairments, other gains and losses, FX losses & share in associates) 2 Town Management includes revenues from Utilities and services, Golf, Rentals, Hospital, Educational services, Marina, Limousine, Laundry and other Town amenities. 5

6 Business Segments 3Q 2017 Revenue EBITDA Adj. EBITDA 1 (CHF mn) 3Q Q 2016 Δ in % 3Q Q Q Q 2016 Hotels (15.5%) Real Estate % Land Town Management % (2.8) (1.5) (2.5) (1.6) Tamweel Group (22.0%) Corporate & Unallocated Items (6.7) (12.2) (6.5) (6.6) ODH Group % 4.6 (1.5) Adjusted EBITDA: EBITDA adjusted for non cash items (which includes provisions & impairments, other gains and losses, FX losses & share in associates) 2 Town Management includes revenues from Utilities and services, Golf, Rentals, Hospital, Educational services, Marina, Limousine, Laundry and other Town amenities. 6

7 Real Estate KPIs 9M and 3Q 2017 Net value of contracted units (CHF mn) Number of contracted units Average selling price (CHF/m 2 ) Country Destination 9M 17 9M 16 9M 17 9M 16 9M 17 9M 16 Egypt El Gouna ,898 2,852 Fayoum Makadi * Gardania ,392 Oman Jebel Sifah ,887 - Salalah Beach ,511 2,639 Montenegro Luštica Bay ,578 5,566 ODH Group ,948 2,807 Country Destination 3Q 17 3Q 16 3Q 17 3Q 16 3Q 17 3Q 16 Egypt El Gouna ,137 2,718 Fayoum ,415 1,024 Makadi 0.1 (0.1) 2 (7) Oman Jebel Sifah ,599 - Salalah Beach 10.1 (0.5) 86 (2) 1,499 - Montenegro Luštica Bay ,547 5,596 ODH Group ,173 2,565 * Upgraded fees for existing units. 7

8 Deferred Revenue Recognition Schedule (CHF mn) Country Destination Deferred Revenue Balance Egypt El Gouna Fayoum Makadi Total Egypt Oman Jebel Sifah Salalah Beach Total Oman Montenegro Luštica Bay ODH Group * Figures are rounded to the nearest decimal point 8

9 Hotel KPIs 9M 2017 Total number of hotel rooms Number of available rooms Occupancy for available rooms (%) TRevPAR* (CHF) GOP PAR** (CHF) Destination 9M 17 9M 16 9M 17 9M 16 9M 17 9M 16 9M 17 9M 16 9M 17 9M 16 El Gouna 1 2,698 2,683 2,698 2, Taba Heights 2 2,365 2,365 1, (1) (9) Citadel Azur Fayoum (1) (64) Floating Hotels (37) Total Oman UAE Makadi 6 1,113 1, ODH Group 8,105 7,825 5,887 5, In 9M 17 we transferred 82 hotel rooms of Fanadir and Bellevue into real estate products and in Q Ancient Sands hotel room increased by 97 rooms 2. During 9M 2017, only 4 hotels were operating (Sofitel with 442 rooms, Strand Beach Hotel with 503 rooms, El Wekala Hotel with 215 rooms and 100 rooms in Bay View Hotel out of 394 existing rooms). Whereby, only 2 hotels were operating representing 718 rooms in 9M In September 1 st, 2016, Byoum Lakeside Hotel was opened. 4. In December 22 nd, 2016, Al Fanar Hotel extension was opened with 84 rooms, thus brining total number of the hotel rooms to 302 rooms. 5. In June 2017, we opened 142 new rooms in the Cove Hotel, thus brining total number of the hotel rooms to 487 rooms. 6. Our 3 hotels in Makadi were rented to FTI Group since Jan Whereby in 9M 2016 only one hotel was operating Royal Azur (491 rooms). * Financial KPIs are calculated based on the number of available rooms during the reported period of 9M ** Includes all expenses of the hotels in the destinations. 9

10 Hotel KPIs 3Q 2017 Total number of hotel rooms Number of available rooms Occupancy for available rooms (%) TRevPAR* (CHF) GOP PAR** (CHF) Destination 3Q 17 3Q 16 3Q 17 3Q 16 3Q 17 3Q 16 3Q 17 3Q 16 3Q 17 3Q 16 El Gouna 1 2,698 2,683 2,698 2, Taba Heights 2 2,365 2,365 1, Citadel Azur Fayoum (4) (64) Floating Hotels (11) (31) Total Oman UAE Makadi 6 1,113 1, ODH Group 8,105 7,825 5,887 5, In 9M 17 we transferred 82 hotel rooms of Fanadir and Bellevue into real estate products and in 3Q 2017 Ancient Sands hotel room increased by 97 rooms 2. During 9M 2017, only 4 hotels were operating (Sofitel with 442 rooms, Strand Beach Hotel with 503 rooms, El Wekala Hotel with 215 rooms and 100 rooms in Bay View Hotel out of 394 existing rooms). Whereby, only 2 hotels were operating representing 718 rooms in 9M In September 1 st, 2016, Byoum Lakeside Hotel was opened. 4. In December 22 nd, 2016, Al Fanar Hotel extension was opened with 84 rooms, thus brining total number of the hotel rooms to 302 rooms. 5. In June 2017, we opened 142 new rooms in the Cove Hotel, thus brining total number of the hotel rooms to 487 rooms. 6. Our 3 hotels in Makadi were rented to FTI Group since Jan Whereby in 3Q 16 only one hotel was operating Royal Azur (491 rooms) * Financial KPIs are calculated based on the number of available rooms during the reported period of 3Q ** Includes all expenses of the hotels in the destinations. 10

11 El Gouna, Egypt 9M 2017 Highlights and Outlook: Net sales reached CHF 52.7mn in 9M 2017, despite the 50% devaluation of EGP to CHF. Hotels GOP surged by 163.3% to reach CHF 15.8mn compared to CHF 6.0mn in 9M Successfully hosted the first edition of El Gouna Film Festival and for which we have built four new high standard cinemas. Successfully launched a new high-end real estate project over looking the marina Abu Tig Hill in Q with a total inventory of USD 22.0mn. Continuing with the renovation work across some of our hotels. Finalized the construction of the party event area which will hold a capacity of 2,500 guests. Planning to launch Phase II of G-Space by mid-december 2017 following the great success of Phase I. Financials & KPIs 9M 17 9M 16 % Chg Hotels Number of rooms 2,698 2, % Occ. for available rooms (%) % TRevPAR (CHF) % GOP PAR (CHF) % Total Revenues (CHF mn) % Real Estate Net Contracted Units (CHF mn) (2.8%) No of Contracted Units % Avg. Selling Price (CHF/m 2 ) 1,898 2,852 (33.5%) Total Revenues (CHF mn) (18.9%) Deferred Revenue (CHF mn) (13.2%) 11

12 Hawana Salalah, Oman 9M 2017 Highlights and Outlook: Hotels GOP increased by 20.7% to reach CHF 7.0mn vs. CHF 5.8mn in 9M 16. Net sales reached CHF 10.3mn vs. CHF 0.8mn in 9M In August 2017 we launched a new real estate project Lagoon Project (254 apartments), with a total inventory of CHF 31.8mn. Progressing with the construction of the Water Park to be launched in Dec Progressing with the construction of the 98 new rooms in Al Fanar Hotel & 22 new rooms in Rotana hotel, to be finalized by the end of Dec Al Fanar was awarded a 5-Star rating following a reassessment of its services. The additional star comes as a direct result of its superior services. Financials & KPIs 9M 17 9M 16 % Chg Hotels Number of rooms % Occ. for available rooms (%) % TRevPAR (CHF) % GOP PAR (CHF) % Total Revenues (CHF mn) % Real Estate Net Contracted Units (CHF mn) ,188% No of Contracted Units Avg. Selling Price (CHF/m 2 ) 1,511 2,639 (42.7%) Total Revenues (CHF mn) (70.4%) Deferred Revenue (CHF mn) (27.9%) 12

13 Jebal Sifah, Oman 9M 2017 Highlights and Outlook: Net sales reached CHF 8.9mn vs. CHF 0.2mn in 9M 16 Capitalizing on the great success of Phase 1 of the Golf Lake Residence, we are planning to launch Phase 2 of the project with a total inventory of CHF 18.0mn by the end of Nov Opened the first 9 holes of the golf course and the Bank Bar, Restaurant, Pool in September Financials & KPIs 9M 17 9M 16 % Chg Hotels Number of rooms Occ. for available rooms (%) TRevPAR (CHF) (7.1%) GOP PAR (CHF) Total Revenues (CHF mn) (5.6%) Real Estate Net Contracted Units (CHF mn) ,350% No of Contracted Units ,150% Avg. Selling Price (CHF/m 2 ) 1, Total Revenues (CHF mn) (19.4%) Deferred Revenue (CHF mn) % 13

14 Luštica Bay, Montenegro 9M 2017 Highlights and Outlook: Progressing with the construction of the Chedi Hotel to be finalized in summer 2018 & started the rough construction works of the golf course. Delivered the G Buildings and finished the new access road to marina village. Successful launch of Centrale Phase 1; the town center concept, with approx. 60% contracted and reserved during the first month of launch. Financials & KPIs 9M 17 9M 16 % Chg Real Estate Net Contracted Units (CHF mn) % No of Contracted Units % Avg. Selling Price (CHF/m 2 ) 4,578 5,566 (17.7%) Total Revenues (CHF mn) Deferred Revenue (CHF mn) % 14

15 Agenda 9M 2017 Key Highlights Page 3 9M 2017 Highlights and Outlook per destination Page 5 Financial Review Page 16 15

16 Income Statement (CHF mn) 3Q Q M M 2016 Revenue Cost of sales (50.2) (49.8) (133.8) (136.9) Gross profit Gross profit margin 19.3% 17.8% 21.7% 19.4% Investment income Other gains and losses 3.3 (1.9) (11.9) Administrative expenses Share of associates profit/losses (9.0) (9.1) 3 (25.3) (28.8) (3.6) (3.4) 4 (11.8) (11.9) EBITDA 4.6 (1.5) 15.7 (14.6) Depreciation (6.0) (8.5) 5 (17.8) (23.8) Finance costs (8.3) (10.5) 5 (24.7) (31.6) Income tax expense (1.3) (0.9) (3.5) (1.7) Net loss for the period (11.0) (21.4) (30.3) (71.7) Notes Revenues increased due to enhanced operational performance. Yet the significant surge in the Egyptian subsidiary s revenue was not captured as much due to the translation of the EGP revenues to CHF. Other gains and losses mainly includes: Gains in relation to settlement of borrowings in the amount of CHF 6.4mn. FX gain of CHF 5.3mn. Administrative expenses decreased mainly due to the devaluation of EGP against foreign currencies. The share of associates losses decreased mainly due to the enhanced operations of the associate companies. Attributed as follows: ODH shareholders (11.4) (19.5) (30.3) (60.7) Non-controlling interest 0.4 (1.9) (0.01) (11.0) Basic EPS (CHF) (0.29) (0.48) (0.76) (1.50) 5 The decrease in depreciation & finance costs was mainly driven by the devaluation of the EGP against the foreign currencies. 16

17 Balance sheet (CHF mn) Property, plant and equipment Inventories Notes 1 PPE decreased mainly due to the reclassification of the 3 rented hotels in Makadi to investment property. Receivables Cash and bank balances Investments in associates Other assets Non-current assets held for sale Total assets 1, ,285.3 Borrowings Payables Provisions Other liabilities Liabilities related to assets held for sale Total liabilities Non-controlling interests Receivables decreased mainly due to the increase in Real Estate collection during the period. Other assets includes the renting of the 3 hotels in Makadi. Borrowings decreased mainly due to the settlement from one of our subsidiaries Asset held for sale and liabilities held for sale increased mainly due to the increase in Tamweel activities during the period. Equity attributable to ODH shareholders Total liabilities and equity 1, ,

18 Cash Flow statement (CHF mn) 9M M 2016 Cash generated from operations Interest paid (6.4) (5.1) Income tax paid (2.3) (3.5) Operating Cash Flow (8.5) Payments for PP&E 2 (18.9) (18.6) Other items Investing Cash Flow (11.6) (11.1) Change in Borrowings Other items Financing Cash Flow Net change in the cash 17.9 (16.7) Cash and bank balances beginning of period Effects of FX changes 4 (1.6) (14.9) Notes Cash flow from operations increased as a result of enhanced performance across the business segments. PP&E mainly includes payments of: CHF 7.1mn for RAK extension CHF 9.7mn for Al Fanar extension and Sifah infrastructure. Change in Borrowings mainly due to: (-) Debt Repayment in Egypt amounting to CHF 11.7mn and Oman CHF 7.5mn. (+) Funding received from shareholders (CHF 34.4mn). (+) Funding received for Oman, UAE and Montenegro amounting to CHF 2.5mn, CHF 9.9 and CHF 1.7mn respectively. Due to the strengthening of CHF against other currencies. Cash and bank balances end of period

19 Financing profile 1 Interest Expenses by Currency in %, as of Total Debt by Currency in %, as of % 2% 6% 17% EGP 27% USD EUR AED 45% CHF OMR 21% 13% EGP USD 7% 6% 53% EUR AED OMR Total Debt by Country in %, as of % 8% 1% 70% Egypt Oman UAE Montenegro Equity ratio (%) Weighted average cost of debt (%) All debt figures exclude debt relating to Tamweel 2 Equity Ratio = Total Equity/Total Assets 19

20 IR dashboard Investor Relations Contact Sara El Gawahergy Head of Investor Relations Phone EGY: +20 (0) Phone CH: +41 (0)

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