Q Results 6 April 2018

Transcription

1 Q Results 6 April

2 Agenda Q Key Highlights & Destination Progress Page 3 Q Financials and KPIs Highlights Page 7 Q Financials and KPIs Appendix Page 13 2

3 Key Highlights Q Turnaround Strategy Bearing Its Fruits with Significant Increase on the Operational and Financial Level across all Segments. Revenues grew by 41.1% to CHF 74.1 million, Adjusted EBITDA Increased By 206.3% to CHF 14.7 Million And Losses Significantly Reduced By 59.2% To Reach Only CHF 5.1 Million. Net real estate sales increased 2.5 times to CHF 39.8 million in Q Hotels revenues increased by 30.5% to CHF 40.2 million and Gross Operating Profits (GOP) increased by 52.6% to CHF 17.7 million vs. CHF 11.6 million. Town Management revenues increased by 29.8% to CHF 7.4 million. Adjusted EBITDA significantly increased by 206.3% to reach CHF 14.7 million. Net losses were tremendously reduced by 59.2% to reach CHF 5.1 million in Q vs. CHF 12.5 million in Q Orascom Development Egypt (ODE) entered into a partnership with the Egyptian Government to develop 1,000 feddan in West Cairo, marking our first foray into the first home market in Egypt. Successfully sold Citadel Azur Hotel and signed the sale of 3 hotels in Makadi, Red Sea, Egypt both for a total EV of CHF 98.5 million. ODE signed a contract for the sale of its stake in Tamweel Group at a total equity valuation of c. CHF 20.0 million. Sold 8.2% stake of ODE to a set of strategic investors for a total of c. CHF 33.2 million, reducing our stake to 76.59%. Finalizing all documentation for the sale 3 hotels in Makadi for EV of CHF 49.0 million and working diligently on our plan with the banks to reduce our debt by c. CHF 56.0 million in ODE Distributed a cash dividend of EGP 0.20 per share post the split on June 4,

4 Destinations Progress during Q El Gouna, Egypt: Net sales more than doubled to reach CHF 21.3 million in Q In January 2018, we launched Tawila phase III with a total inventory of USD 44.1 million. Phase III includes town houses and apartments and sold USD 16.0 million to date. In April 2018, we launched a new real estate project called Ancient Sands Villas with a total inventory of USD 80.0 million. The launched phase inventory was USD 22.7 million & consists of twin houses & villas. Hotels GOP increased by 70.7% to reach CHF 7.0 million vs. CHF 4.1 million in Q Continuing with the renovation works across some of our hotels with plans to be finalized during Hosted the FIFA World Cup Trophy Tour in March and hosted El Gouna International Open Squash Championship for men & women along with El Gouna Polo 2018 event in April. Looking into adding more hotel rooms and possibly a new hotel in 2018/2019 Makadi Heights, Egypt: We started an aggressive sales and marketing campaign to revive Makadi destination. We launched a new project in April 2018 with a total inventory of CHF 11.1 million to date we managed to sell and reserve more than CHF 5.5 million. Opened Makadi Heights club house during Q On track with finalizing all necessary documentation for the sale of 3 hotels in Makadi for a total EV of CHF 49.0 million with cash proceeds of CHF 27.4 million and the deconsolidation of CHF 14.4 million of debt Sold Citadel Azur hotel in Sahl Hashish for an EV of CHF 49.5 million. This sale resulted in cash proceeds of c. CHF 31.7 million and the deconsolidation of c. CHF 17.8 million of debt. 4

5 Destinations Progress during Q Hawana Salalah, Oman: Net sales increased by 100% to CHF 6.2 million in Q Hotels revenues increased by 26.0% to CHF 13.1 million in Q Hotels occupancy reached 97% in Q1 18 and GOP increased by 46.3% to CHF 6.0 million vs. CHF 4.1 million in Q Started the construction works for 176 new rooms in Al Fanar Hotel, capitalizing on the huge demand, to be finalized this year. Jebal Sifah, Oman: Net sales increased by 55.5% to CHF 8.4 million in Q on the back of the great success of phase 2 of the Golf Lake Residence launched in Nov with a total inventory of CHF 18.0 million. Additional pontoons will be installed at the Marina along with an enhanced water taxi service scheduled to launch in Jebal Sifah is set to welcome a new bar, restaurant, supermarket and a fishing charter business. Lustica Bay, Montenegro: Net sales increased by 100% to CHF 3.9 million in Q Finalizing the 5-star Chedi Hotel (110 rooms) construction & holding its soft opening in July Opened the new access road to the marina village and launching the Marina and over 1,000 sqm of marina retail in summer Progressing with construction of E and B building clusters comprising 68 apartments due for delivery in 2018 and early The Cove, UAE: Hotels revenues increased by 19.1% to reach CHF 8.1 million in Q Hotels GOP increased by 28.6% to reach CHF 3.6 million vs. CHF 2.8 million in Q

6 Agenda Q Key Highlights & Destination Progress Page 3 Q Financials and KPIs Highlights Page 7 Q Financials and KPIs Appendix Page 13 6

7 Business Segments Q Revenue EBITDA Adj. EBITDA 1 (CHF mn) Q Q Δ in % Q Q Q Q Hotels % Real Estate % Land Town Management % (2.1) (1.2) (2.0) (1.2) Tamweel Group % Corporate & Unallocated Items (9.1) (14.0) (5.5) (5.8) ODH Group % Adjusted EBITDA: EBITDA adjusted for non cash items (which includes provisions & impairments, other gains and losses, FX gains & share in associates) 2 Q figures includes gains in relation to settlement of borrowings in the amount of CHF 6.4mn. 3 Town Management includes revenues from Utilities & services, Hospital, Marina, Golf, Rentals, Educational services, Limousine, & other town amenities. Revenues increased but EBITDA and Adj. EBITDA losses widened, due to the commencement of operations in Oman and Montenegro. This is usually the case at first until the appropriate volumes and economies of scale are reached then it turns around positively. 7

8 Real Estate KPIs Q Net value of contracted units (CHF mn) Number of contracted units Average selling price (CHF/m 2 ) Country Destination Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Egypt El Gouna ,355 1,594 Fayoum Makadi Oman Jebel Sifah ,809 1,852 Salalah Beach ,598 - Montenegro Luštica Bay ,998 - ODH Group ,176 1,577 8

9 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 * It is also important to note in addition to the outstanding deferred revenue balance; the Group also has a deferred interest income CHF 10.2 million. * Figures are rounded to the nearest decimal point. 9

10 Hotel KPIs Q Total number of hotel rooms Number of available rooms Occupancy for available rooms (%) TRevPAR* (CHF) GOP PAR** (CHF) Destination Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 El Gouna 1 2,655 2,645 2,655 2, Taba Heights 2 2,365 2,365 1, (3) (4) Citadel Azur Fayoum (1) Floating Hotel Total Oman UAE Makadi 5 1,113 1, ODH Group 8,169 7,911 5,951 5, In FY 17 we transferred 87 hotel rooms of Fanadir and Bellevue into real estate products and in Q Ancient Sands hotel room increased by 97 rooms 2. During FY 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 FY In December 23 nd, 2017, Al Fanar Hotel extension was opened with 98 rooms, thus brining total number of the hotel rooms to 400 rooms and also 22 new rooms were added to Rotana Hotel, thus bringing total number of rooms to 422 room. 4. In June 2017, we opened 145 new rooms in the Cove Hotel, and transferred 20 rooms into real estate units thus brining total number of the hotel rooms to 471 rooms. 5. Our 3 hotels in Makadi were rented to FTI Group since Jan * Financial KPIs are calculated based on the number of available rooms during the reported period of Q ** Includes all expenses of the hotels in the destinations. 10

11 Current and targeted Debt Maturity Profile for 2018 Cost of Debt is 9.2% Current Maturity Profile & Balance in 2018 Expected Cost of Debt is 8.5% Maturity Profile after ODE Rescheduling + sale of Citadel in 2018 Q Balance: CHF million Expected FY 2018 Balance Post Egypt Debt reduction & Sale of Citadel: CHF 299 million CF CF Cost of Debt is 8.4% Maturity Profile after Oman Rescheduling CF

12 Agenda Q Key Highlights & Destination Progress Page 3 Q Financials and KPIs Highlights Page 7 Q Financials and KPIs Appendix Page 13 12

13 Destinations KPIs El Gouna Financials & KPIs Q Q % Chg Hotels Total Number of rooms 2,655 2, % Occ. for available rooms (%) % TRevPAR (CHF) % GOP PAR (CHF) % Total Revenues (CHFmn) % Real Estate Net Contracted Units (CHFmn) % No of Contracted Units Avg. Selling Price (CHF/m 2 ) 2,355 1, % Total Revenues (CHFmn) % Deferred Revenue (CHFmn) % Destination Management Total Revenues (CHFmn) % Taba Heights Financials & KPIs Q Q % Chg Hotels Total Number of rooms 2,365 2,365 - Number of rooms available 1, % Total Revenues (CHFmn) % Occ. for available rooms (%) (26.1%) TRevPAR (CHF) GOP PAR (CHF) (3) (4) (25.0%) 13

14 Destinations KPIs Makadi Heights Financials & KPIs Q Q % Chg Real Estate Net Contracted Units (CHFmn) No of Contracted Units Avg. Selling Price (CHF/m 2 ) (3.2%) Total Revenues (CHFmn) (25.0%) Destination Management Total Revenues (CHFmn) % Fayoum Financials & KPIs Q Q % Chg Hotels Number of rooms % Occ. for available rooms (%) (50.9%) TRevPAR (CHF) % GOP PAR (CHF) 4 (1) 500.0% Total Revenues (CHFmn) % Real Estate Net Contracted Units (CHFmn) (100.0%) No of Contracted Units - 7 (100.0%) Avg. Selling Price (CHF/m 2 ) (100.0%) Total Revenues (CHFmn) Deferred Revenue (CHFmn) % 14

15 Destinations KPIs Hawana Salalah Financials & KPIs Q Q % Chg Hotels Total Number of rooms % Occ. for available rooms (%) % TRevPAR (CHF) % GOP PAR (CHF) % Total Revenues (CHFmn) % Real Estate Net Contracted Units (CHFmn) % No of Contracted Units % Avg. Selling Price (CHF/m 2 ) 1, % Total Revenues (CHFmn) (100.0%) Deferred Revenue (CHFmn) Jebal Sifah Financials & KPIs Q Q % Chg Hotels Total Number of rooms Occ. for available rooms (%) % TRevPAR (CHF) % GOP PAR (CHF) % Total Revenues (CHFmn) % Real Estate Net Contracted Units (CHFmn) % No of Contracted Units % Avg. Selling Price (CHF/m 2 ) 1,809 1,852 (2.3%) Total Revenues (CHFmn) % Deferred Revenue (CHFmn) (20.1%) 15

16 Destinations KPIs Lustica Bay, Montenegro Financials & KPIs Q Q % Chg Real Estate Net Contracted Units (CHFmn) % No of Contracted Units % Avg. Selling Price (CHF/m 2 ) 5, % Total Revenues (CHFmn) % Deferred Revenue (CHFmn) (53.6%) The Cove, UAE Financials & KPIs Q Q % Chg Hotels Total Number of rooms % Occ. for available rooms (%) (11.2%) TRevPAR (CHF) (13.3%) GOP PAR (CHF) (8.8%) Total Revenues (CHFmn) % 16

17 Income Statement (CHF mn) Q Q Revenue Cost of sales (52.2) (39.5) Gross profit Gross profit margin 29.5% 24.8% Investment income Administrative expenses (9.3) (9.1) Adj. EBITDA Adj. EBITDA margin 19.8% 9.1% Other gains & losses Share of associates losses (3.9) (3.5) EBITDA Depreciation (5.4) (6.0) Finance costs 3 (9.0) (7.9) Income tax expense 4 (2.3) (1.0) Net losses for the period (5.1) (12.5) Attributed as follows: ODH shareholders (7.2) (13.2) Non-controlling interest Basic EPS (CHF) (0.18) (0.33) 17 Notes Revenues and gross profit increased due to the enhanced operational performance across all business segments. Investment income increased mainly due to: The increase in real estate cash collection. Increase in interest income on bank deposits. Increase in Finance costs mainly due to: Increase in interest rates Q-o-Q. Increase in outstanding balance of debts as a result of FY 2017 capitalized interest. Income Tax expense increased due to the increase of the profitability of the subsidiaries.

18 Balance Sheet (CHF mn) Property, plant and equipment Inventory Receivables Cash and bank balances Investments in associates Other assets Non-current assets held for sale Total assets 1, ,347.7 Borrowings Payables Provisions Other liabilities Liabilities related to assets held for sale Total liabilities Non-controlling interests Equity attributable to ODE shareholders Total liabilities and equity 1, , Notes PPE decreased mainly due to reclassification of Citadel Azur Hotel as asset held for sale. Inventory decreased mainly due to the first-time adoption of the new revenue standard (IFRS 15) as well as increase in the completed and delivered units. Asset and liabilities held for sale include the following: Tamweel Group. Makadi hotels. Citadel Azur Borrowings decreased mainly due to (-) Payments of CHF 11.5 million. (-) CHF 17.3 million related to Citadel Azur Hotel which was transferred as asset and liabilities held for sale. (-) FX gain amounting CHF 7.0 million. (+) Proceeds amounting CHF 5.8 million.

19 Cash Flow Statement (CHF mn) Q Q Cash from operations (2.3) Interest paid (3.9) (1.5) Taxes paid (0.3) (0.5) Operating Cash Flow (4.3) Payments for PP&E 2 (9.7) (6.0) Other items Investing Cash Flow (8.5) (5.1) Change in Borrowings Other Items Financing Cash Flow Net change in cash/equivalents Cash & bank balances beginning of period Notes Cash flow from operations and operating cash flow increased due to the enhanced operational performance across all business segments during the period. Payments for PP&E includes payments mainly due to the increase in construction activities in El Gouna, Oman and Lustica. Change in Borrowings mainly resulting from: (-) Debt repayment of CHF 11.5 million. (+) debt proceeds for CHF 21.7 million. Effects of FX changes (1.4) (1.6) Cash & bank balances end of period* * Includes cash related to assets held for sale. 19

20 Financing profile 1 Interest Expenses by Currency in %, as of Total Debt by Currency in %, as of % 15% 31% EGP 6% USD 4% EUR AED 42% CHF OMR 22% 12% EGP USD 8% 7% 51% EUR AED OMR Total Debt by Country in %, as of % 7% 3% 68% Egypt Oman UAE Equity ratio (%) % 41.7% Weighted average cost of debt (%) 3 9.2% 9.1% 1 All debt figures exclude debt relating to (Assets Hels for Sale Tamweel, Royal and Citadel Azur). 2 Equity Ratio = Total Equity/Total Assets 3 After the effectiveness of CTIA and the syndication agreements. 20

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

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