9 Mon Mon hs t hs 2012 Re sults

Transcription

1 9 Months 2012 Results 6 December 2012

2 Agenda Highlights 9M 2012 CEO Gerhard Niesslein page 3 Financial Review CFO Ahmed El Shamy page pg 20 Business Segments CFO Ahmed El Shamy page 27 Outlook 2012 CEO Gerhard Niesslein page 34 2

3 Highlights g 9M 2012 Market environment Tourism market on the Red Sea improving, still challenging in Taba Soft demand for real estate across most destinations Facts and figures Business Segments Revenues grew 17.5% to CHF million (last year CHF million) Net loss of CHF 59.1 million primarily a result of several non cash items Operating cash flow of CHF 49.0 million (9M 2011: CHF 35.0 million) ¹ Hotels: slightly improved occupancy rates of 55% (9M 2011: 54%) and higher TRevPar ² of CHF 57 (9M 2011: CHF 52) Real estate: weaker results due to provisions and Iskan transaction Destinations and Operations Sale of 73 apartments in the Chedi Andermatt to Acuro ³ TU Berlin Campus opened in El Gouna Further optimization of the investment portfolio 33 ¹ Before interest and taxes ² TRevPar is Total Revenue per available room ³ Acuro is an investment vehicle managed by Swiss Finance & Property AG and Orox Asset Management

4 Egypt El Gouna El Gouna is home for more than 22,000 permanent residents including amenities such as 2 marinas, 1 golf course, more than 100 restaurants, shops and bars and 2 universities Opening of a satellite campus of Technische Universität Berlin in El Gouna in October 2012 Increased hotel occupancy rates of 61% for 9M 2012 versus 52% after 9M 2011 Joint venture to develop El Gouna Water Sports Complex, expected opening 2H

5 Egypt Taba Heights Reopening of the marina in September brought Taba Heights back to holiday destination map International Tourist Marina license since 2005; first legitimate port of entry in the region Facilitates access to Saint Catherine's Monastery and to the ancient city of Petra Taba hotel occupancy rate of 45% (9M 2011: 54%) impacted by unrests in Sinai Peninsula 5

6 Egypt Haram City Improved real estate sales of 354 units during 9M 2012 (9M 2011: 228) Activation of a governmental low income housing program helped to reduce the real estate inventory by 5 10% About 150 additional reservations in October and November due to stepped up marketing efforts and mortgage subsidies (607 reservations as of end September 2012) 6

7 Egypt Makadi Makadi was launched in 2009 and is 28 km away from Hurghada; the destination mainly caters to employees in the local tourism sector Project is developed and managed by Orascom Development and Management, a 100% subsidiary of Orascom Development Eid Mounir Concert sponsored by Orascom Development and Vodafone during October with about 30,000 visitors ii was a big success to promote the destination i locallyll 7

8 Oman Jebel Sifah First phase of destination includes 1 marina, 1 hotel, commercial area and real estate units Sifawy hotel with a 30% occupancy rate; reduced vacancies of commercial shops New Road to Jebel Sifah approved by the government; talks with ferry company for regular service between Muscat and Jebel Sifah 8

9 Oman Salalah Beach First phase of destination includes 1 marina, 1 hotel, commercial area and real estate units Opening of Juweira Hotel in July 2012 with positive average 46% occupancy rate Rotana Hotel (399 rooms) completely funded for its expected opening in 1H 2014 Salalah International Airport to be opened by end 2014 according to government sources 9

10 Switzerland Andermatt Chedi Hotel and Golf Course to be finished in 2013, first 2 apartment houses on Podium under construction, core and shell of first villa finished in November 2012 Acquisition of ski companies in Andermatt and Sedrun as first step of the planned reunion Partnership with Swedish company SkiStar to manage ski area in Andermatt and Sedrun; Bo Halvardsson to lead overall operations 10

11 Switzerland Acuro transaction Transaction summary Sale of 73 apartments in the Chedi Andermatt to investment company Acuro (CHF 123 million plus participation on future sales profit) Important milestone for the Chedi project and Andermatt destination Strengthened financial position Cash Flow impact ¹ First installment of CHF 60 million received in September 2012 Second (CHF 28 million) and third tranche (CHF 17 million) due in March and September 2013 Final tranche (CHF 17 million) due in 1H 2014 Revenue recognition So far no revenues recognized; expected to recognize a substantial part of the transaction volume in 2H 2013 Remainder in 2H ¹ NumbersexcludingValue Added Tax (VAT)

12 Morocco Chbika Oued Chbika Development (OCD) is a joint venture between Orascom Development (55%), CDG Développement (35%) and Rolaco (10%) OCD will be an all year beach destination, located 250 km east of the Canary islands Pre agreements with third parties to develop a Club Med hotel, a possible role model of how Orascom Development intends to develop its destinations in the future 12

13 Montenegro Luštica Secured financing for the first 10 apartment houses (72 units) Mock up apartment built to give clients an impression about the apartments, roads and golf driving range Good client demand and sales momentum (9M 2012: sold CHF 11.2 million, reserved CHF 7.2 million) 13

14 UAE The Cove The destination The Cove is located close to Ras Al Khaimah International Airport and is situated 100 km north of Dubai (U.A.E) Hotel performance very positive during the first nine months of 2012, reaching 83% occupancy rate (9M 2011: 75%) and increased TRevPar of CHF 206 (9M 2011: 165) Rotana 5 star hotel (346 rooms) continues to be the top performing hotel of Orascom Development 14

15 Jordan Tala Bay Minority stake of 15.64% in Jordan Company for Projects and Touristic Development (JPTD) JPTD operates a residential & tourism resort in Aqaba which offers villas, apartments and townhouses; JPTD is a listed company on the Amman Stock Exchange (ASE) Orascom Development owns the Marina Plaza Hotel with 260 rooms Hotel occupancy rate of 41% during 9M 2012; operations impacted by the Syrian conflict 15

16 Mauritius Orascom Development owns a minority stake of 12.40% in Club Med d`albion Resort (CMAR), the legal entity that owns Club Med Plantation d`albion in Mauritius Club Med is a 266 room hotel (marketed as a 5 trident), located on the west coast of Mauritius, south of Port Louis 16

17 UK and Romania UK: Project planning ongoing Romania: Project revisited 17

18 Tamweel Finance Holding Tamweel Total assets Total customer loans Key Facts CHF 94 Mio. CHF 78 Mio. Loan to value (LTV) About 75% No of employees 82 No of customers 4,212 Egypt based holding company with activities in mortgage gg financing, leasing, callcenterand brokerage services; complements Orascom Development`s real estate activities Consolidated revenues of CHF 5.9 million and CHF 3.1 million net profit in 9M 2012 Total assets end September 2012 of CHF 94 million and Return on Equity of > 20% Consolidated within the segment other operations 18

19 Agenda Highlights 9M 2012 CEO Gerhard Niesslein page 3 Financial Review CFO Ahmed El Shamy page pg 20 Business Segments CFO Ahmed El Shamy page 27 Outlook 2012 CEO Gerhard Niesslein page 34 19

20 Condensed Income Statement Numbers inchf Million Q 2Q 3Q 9M 1Q 2Q 3Q 9M Revenues Cost of sales (48.4) (40.9) (47.5) (136.8) (55.3) (64.5) (52.5) (172.3) Gross profit Gross profit margin 7.6% 23.3% 14.8% 15.2% 12.0% 6.6% 9.0% 9.1% Investment income Other gains and losses (3.3) (8.7) 2.7 (9.4) (2.6) (8.5) (8.4) (19.5) Administrative expenses (6.6) (12.5) (19.0) (38.1) (6.6) (13.5) (19.3) (39.5) Finance costs (0.8) (5.1) 2.7 (3.2) (2.2) (5.0) (6.0) (13.2) Share of profit of associates (0.7) (0.6) (0.4) (0.3) (0.5) (1.2) (Loss) / profit before tax (2.5) (13.4) (3.1) (18.9) (2.5) (21.3) (27.7) (51.4) Income tax expense 2.2 (2.0) (1.0) (2.8) (3.5) (7.3) Discontinued operations (0.0) (0.1) 0.1 (0.1) (0.0) (0.1) (0.1) (0.2) Net (loss) / profit (0.3) (15.5) (3.0) (18.8) (3.5) (24.2) (31.2) (58.9) Owners of the Parent 0.6 (14.3) (5.2) (18.9) (4.0) (23.3) (31.9) (59.1) Non controlling interests (0.9) (1.2) (0.9)

21 Extraordinary items 9M Reported pre tax loss 9M 2012 Impairment & transaction loss investments in associates a Loss related to reversed sales from Iskan Valuation adjustment for loss of control in subsidiary bidi Revaluation gains investment properties p Adjusted pre tax loss 9M Note: All numbers in CHF million

22 Condensed Balance Sheet Numbers in CHFm FY2011 9M 2012 Delta Comments and explanations PP&E 969 1' Investments mainly in Switzerland Other financial assets Value changes: ERC (CHF 4m) and Nasr City (CHF 16 m) Inventories Real estate work in progress & finished units: CHF 246 m Current receivables (44) 4 Increased real estate collections Egypt; Iskan transaction Cash (equivalents) Investments in associates (8) 5 Impairment of investments in associates Other assets Total assets 2'083 2' Total equity 1'095 1'057 (38) Borrowings Use of credit facilities from majority shareholder Payables (19) 7 Reduced construction work in Egypt and Oman Other liabilities Includes advances from customers of CHF 183 million Total liabilities Total liabilities & equity 2'

23 Real Estate inventory break down Inventory as of 9M 2012 is CHF 511 million, thereof CHF 246 million real estate inventory Egypt Switzerland Oman Others Sold WIP Non Sold WIP Non Sold Completed Units 2323 Note: All numbers in CHF million WIP is work in progress

24 Debt structure: 9M 2012 Maturity profile loans (CHF million) Interest payments by currency (in %) EGP 15% 1% 80 USD EUR 25% 58% 20 Other N/A Current loan maturity Expected loan maturity after debt rescheduling Additional debt information Total debt by currency (in %) Debt as of end September 2012: CHF 628 million Relationships with 28 local / international banks in seven countries USD EGP CHF 11% 5% 12% 37% Weighted average cost of debt: 6.64% EUR Other 35% 24

25 Condensed cash flow statement Number in CHF million 9M M 2012 Cash generated from / (used in) operating activities (35.0) 49.0 Interest paid (19.5) (35.9) Taxes paid (15.4) (5.3) OPERATING CASH FLOW (69.8) 7.8 Payments for property, plant and equipment (130.4) (79.4) Other items CASH FLOWS FROM INVESTING ACTIVITIES (121.2) (73.3) Issued capital reduction paid to shareholders Change in Borrowings Other items (4.8) 0.4 FINANCING CASH FLOW Net (decrease)/increase in cash and cash equivalents (162.1) 33.0 Cash and cash equivalents at the beginning of the year Effects of FX changes of cash held in foreign currencies (9.1) 1.8 Cash and cash equivalents at the end of the period

26 Agenda Highlights 9M 2012 CEO Gerhard Niesslein page 3 Financial Review CFO Ahmed El Shamy page pg 20 Business Segments CFO Ahmed El Shamy page 27 Outlook 2012 CEO Gerhard Niesslein page 34 26

27 Business Segments 9M 2012 Revenue Change EBITDA Change EBITDA Margin CHF Million % % Hotels % % 25.9% 21.3% Real Estate & Construction % 21.5 (4.2) 52.0% Land (0.6) 89.5% Destination Management % 0.4 (0.6) 3.0% Other Operations % % 36.1% 57.9% Corporate & unallocated items (46.1) (48.0) 4.1% ODH Group % 6.5 (17.1) 4.0% Note: The segment Tour Operations has been discontinued with 9M 2012 results. See 9M 2012 Financial Report, Footnote 10 EBITDA calculated from Net (loss) / profit by adding back minority interests, depreciation & amortisation, finance costs and income tax expense 27

28 Hotels 9M 2012 Hotels market update MENA region (source: STR Global) Improved demand for leisure activities compared to a year ago Business still affected by global economic uncertainties Uplift in ARR and occupancy rates in October Orascom Development Hotels: 9M 2012 performance Higher revenues mainly from El Gouna, UAE and Oman Jordan impacted by Syria crisis; Taba performance impacted by unrest in Sinai Peninsula Segment result impacted by mandatory salary increase in Egypt and cost inflation CHF Million Year Variance Margin % / Revenue % EBITDA % 25.9% 21.3% Note: EBITDA calculated from segment Net (loss) / profit by adding back minority interests, depreciation & amortisation, finance costs and income tax expense 28

29 Hotels: KPIs 9M 2012 Number of Hotel Occupancy ARR TrevPAR Rooms rate (CHF) (CHF) Country Destination Egypt El Gouna 2,694 2,707 52% 61% Taba Heights 2,365 2,365 54% 45% Others Red Sea % 61% Floating Hotels % 17% UAE The Cove % 83% Jordan Tala Bay % 41% Oman Jebel Sifah NA 55 NA 30% NA 100 NA 62 Salalah Beach NA 64 NA 46% NA 128 NA 84 ODH Group 6,522 6,654 54% 55%

30 Hotels: January October 2012 Occupancy Rate (%) 80% 60% 40% 20% 69% 46% 24% 52% 42% 58% 69% 62% 52% 47% 43% 44% 64% 56% 64% 62% 64% 59% 69% 64% 75% 49% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average Room Rate (CHF) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 30

31 Real Estate and Construction 9M 2012 Key Developments 9M 2012 Real estate contracted sales positively effected by Acuro transaction in Switzerland Sales start in Montenegro resulted in increased reservations versus prior year Segment result impactedby: Provisions for cancelled units in Egypt and Oman (CHF 7.9 million) Provisions for doubtful receivables in Egypt (CHF 4.1 million) Profit elimination for Iskan units (CHF 7.4 million) CHF Million Year Variance Margin % / Revenue % EBITDA 21.5 (4.2) 52.0% Note: EBITDA calculated from segment Net (loss) / profit by adding back minority interests, depreciation & amortisation, finance costs and income tax expense 31

32 Real Estate and Construction: KPIs Numbers for 9M Value of contracted Number of Value of reserved 2011/2012 units (CHF m) 1 contracted units units (CHF m) Number of reserved units Country Destination Egypt El Gouna Fayoum Haram City , Makadi UAE The Cove Oman Jebel Sifah Salalah Beach Andermatt Switzerland Acuro Fund Total Montenegro Lustica Bay Morocco Chbika ODH , ODH (excl. Budget Housing) Excluding cancellations from prior years: 57 units with contracted value of CHF 23.6 million, mainly in Oman, Egypt and Morocco 32

33 Agenda Highlights 9M 2012 CEO Gerhard Niesslein page 3 Financial Review CFO Ahmed El Shamy page pg 20 Business Segments CFO Ahmed El Shamy page 27 Outlook 2012 CEO Gerhard Niesslein page 34 33

34 Update Real Estate New Head Real Estate Distribution strategy Contractual relationships CRM ¹ As of 1st November 2012, Stuart N. Siegel is new head of real estate Stuart Siegel worked for >25 years for Sotheby`s International Reality, a leading real estate broker, in his last position as President and CEO Develop and implement a new sales & marketing distribution strategy Improve international visibility specifically for Andermatt and Luštica Access to real estate investors in key feeder target markets throughout Europe, Asia and North America Targets are luxury real estate brokers, private bankers, investment advisors and financial planners Drive sales leads to on site operations through selective but aggressively managed development of these strategic partnerships Implementation of a global customer data base Enables sales force to capture, track, and communicate with prospective customers in a more structured and efficient manner 1 Client Relationship Management 34

35 OHD reactivation and public offering Transaction summary Public placement of up to 10% of Orascom Hotels and Development (OHD), a 99.68% Egypt based subsidiary of Orascom Development OHD owns 24 hotels with 5,929 rooms Deal rationale Access to local equity markets, liquidity for ODH (cash proceeds) and enhanced brand awareness Fulfill EGX listing requirement of at least 5% free float Identified investor demand for Egyptian tourism and real estate assets Transaction structure Independent financial valuator assigned to value OHD Offering price to be determined prior to launch Expected launch in 1Q 2013, subject to regulatory approval and investor demand 35

36 Outlook 4Q 2012 Recent events in Cairo have so far not had a negative impact on business activities Hotel occupancy forecast for December 2012 shows a slight increase compared to 2011 Cautiously optimistic about 4Q 2012 sales and reservations 36

37 Corporate Calendar March Full year 2012 results 11 April Publication of 2012 Annual lreport 13 May 5thAnn Annual General Meeting 28 May Firstquarter 2013 results 27 August Half year 2013 results 26 November Nine months 2013 results 37

38 Investor Relations & Media contact Investor Relations Till Leisner (Head Controlling & Investor Phone: till.leisner@orascomdh.com Sara El Gawahergy (Investor Relations Manager) Phone: sara.elgawahergy@orascomdh.com Media Daniel Göring Phone: (Head Corporate Communication) daniel.goering@orascomdh.com 38

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