1H 2018 Results August 14, 2018 1
Agenda 1H 2018 Key Highlights & Destination Progress Page 3 1H 2018 Financials Highlights Page 12 1H 2018 Appendix Page 17 2
Key Highlights 1H 2018 Orascom Development Holding AG; Breakevens on the bottom line, excluding one offs and losses from associates and continues to deliver solid results across all business segments. ➢ Revenues Surged By 43.3% to CHF 155.6 million vs. CHF 108.6 million in 1H 17. ➢ Adjusted EBITDA more than tripled to CHF 35 million vs. CHF 11 million in 1H 17. ➢ Reported Net Losses reached CHF 16.4 million, which included a one-off FX translations loss of CHF 16.7 million. vs Net loss of CHF 19.3 million in 1H 17 (which included gains in relation to settlement of borrowings in the amount of CHF 6.3mn). Real Estate: ➢ Net sales recorded a significant increase of 87.6% to CHF 98.7 million vs. CHF 51.6 million in 1H 17 with enhanced contributions from all our destinations. ➢ Real estate revenues surged by 91.1% to CHF 58.1 million vs. CHF 30.4 million on the back of increased unit deliveries in El Gouna, Jebal Sifah and Luštica Bay. ➢ Deferred revenues increased by 24.3% to reach CHF 185.8 million vs. CHF 149.5 million in 1H 17. The Group also has a deferred interest income CHF 13.5 million. Hotels: ➢ Hotel revenues increased by 24.6% to CHF 73.3 million vs. CHF 58.8 million in 1H 17 and GOP increased by 41.8% to CHF 29.5 million. ➢ Adjusted EBITDA increased by 34.1% to CHF 23.6 million vs. CHF 17.6 million in 1H 17. 3
Key Highlights 1H 2018 Town Management: ➢ Town management revenues continues its uptrend momentum with a 33.9% increase to CHF 15.8 million vs CHF 11.8 million. Corporate Updates: ➢ Launched the soft opening of “The Chedi Lustica Bay” Hotel in Montenegro. ➢ Sold 7,955 sqm land plot in El Gouna for USD 1 million (USD 130/sqm) to construct the first office building and lease it to a German based company. ➢ Orascom Development Egypt (ODE); the subsidiary, is finalizing the contract with the Egyptian Government for the revenue share agreement on the 1,000 feddan plot in West Cairo for our first home development. ➢ Finalizing the legal documentation for the previously announced sale of our 3 hotels in Makadi and Tamweel Group and the repayment of c. CHF 56 of debt in 2018. 4
El Gouna, Egypt 1H 2018 Updates ▪ Net sales increased by 50% to CHF 58.5mn. Financials & KPIs 1H 2018 1H 2017 % Chg ▪ In April 2018, we launched a new real estate project “Ancient Sands Hotels Total Number of rooms 2,654 2,601 Villas” the launched inventory was USD 22.7mn and we managed to sell 2.0% USD 10mn to date. Occ. for available rooms (%) 78 74 5.4% ▪ Hotels GOP increased by 49.0% to CHF 14.9mn vs. CHF 10mn in 1H 2017. TRevPAR (CHF) 61 45 35.6% ▪ Finalized the renovation works in Turtles Inn hotel and we are continuing GOP PAR (CHF) 31 21 47.6% with the other hotels to be finalized during 2018. Total Revenues (CHFmn) 29.4 21.5 36.7% ▪ Sold a 7,955 sqm land plot for a total value of USD 1mn (USD 130/sqm) to Real Estate build the 1 st phase of the destination’s business park. Net Contracted Units (CHFmn) 58.5 39 50% ▪ Studying the possibility of adding more hotel rooms & possibly a new No of Contracted Units 166 129 28.7% hotel in 2019. Avg. Selling Price (CHF/m 2 ) 2,148 1,829 17.4% ▪ Total Revenues (CHFmn) 29.6 El Gouna Football Club succeeded to get back to the Egyptian First 16.6 78.3% Destination Management Division League and for that we finalized the renovation across El Gouna Total Revenues (CHFmn) 13.2 9.5 38.9% stadium & now it is ready to host international events. We are hosting the 2 nd edition of El Gouna Film Festival in September Total El Gouna ▪ Total Revenues (CHFmn) 72.2 47.3 52.6% 2018 after the great success of the 1 st edition. 5
Hawana Salalah, Oman 1H 2018 Updates Financials & KPIs 1H 2018 1H 2017 % Chg ▪ Net sales increased almost 60 times to CHF 11.8mn in 1H 2018. Hotels ▪ We started construction in Hawana Lagoon real estate project to Total Number of rooms 904 784 15.3% 70 75 be finalized in Q3 2019. Occ. for available rooms (%) (6.7%) TRevPAR (CHF) 118 94 25.5% ▪ Planning to launch a new real estate project “Hawana Island” in GOP PAR (CHF) 41 34 20.6% Q3 2018 with a total inventory of CHF 29.6mn. 19.2 16.1 19.3% Total Revenues (CHFmn) ▪ Hotels revenues increased by 20% to CHF 19.2mn in 1H 2018. Real Estate 11.8 0.2 - Net Contracted Units (CHFmn) ▪ We opened 122 new hotel rooms by the end of Dec. 2017, thus 95 1 - No of Contracted Units bringing the total number of hotel rooms to 904 vs. 782 rooms in 1,663 2,462 (32.5%) Avg. Selling Price (CHF/m 2 ) 1H 2017. Occupancy for the operating rooms reached 70% and 2.1 2.9 (27.5%) Total Revenues (CHFmn) GOP increased by 39.6% to CHF 6.7mn vs. CHF 4.8mn in 1H 2017. Destination Management 0.4 0.2 Total Revenues (CHFmn) 100% ▪ Progressing with the construction works for 177 new rooms in Al Total Hawana Salalah Fanar Hotel to be finalized this year. 21.7 19.2 Total Revenues (CHFmn) 13% 6
Jebal Sifah, Oman 1H 2018 Updates Financials & KPIs 1H 2018 1H 2017 % Chg ▪ Net sales increased by 70% to CHF 13.6mn in 1H 2018. Hotels Total Number of rooms 67 67 - ▪ Progressing with the construction of phase one of the “Golf Lake Occ. for available rooms (%) 39 36 8.3% Residence project” compromising 130 units with plans to be TRevPAR (CHF) 100 100 - delivered before end of 2018. 11 17 GOP PAR (CHF) (35.3%) 1.2 1.2 Total Revenues (CHFmn) - ▪ Additional pontoons are being installed at the Marina along with Real Estate an enhanced water taxi service scheduled to launch in 2018. 13.6 8.0 Net Contracted Units (CHFmn) 70% ▪ Jebal Sifah is set to welcome a new bar, restaurant, supermarket 90 41 No of Contracted Units 119.5% Avg. Selling Price (CHF/m 2 ) 1,867 1,919 (2.7%) and a fishing charter business. 8.1 3 Total Revenues (CHFmn) 170% Destination Management 0.5 0.3 Total Revenues (CHFmn) 66.7% Total Jebal Sifah 9.8 4.5 Total Revenues (CHFmn) 117.8% 7
Luštica Bay, Montenegro 1H 2018 Updates ▪ Net sales increased by 136.1% to CHF 8.5mn in 1H 2018. Financials & KPIs 1H 2018 1H 2017 % Chg ▪ Held the soft opening for the first hotel in the destination the Real Estate “Chedi Luštica Bay” with 111 rooms, occupancy reached 41% in Net Contracted Units (CHFmn) 8.5 3.6 136.1% the first 10 days. Very positive feedback from guests - KPIs and No of Contracted Units 16 14 14.3% financial contribution to be recognized in Q3 2018. Avg. Selling Price (CHF/m 2 ) 6,351 3,123 103.4% ▪ Opened the first phase of the main marina with 52 berths. Total Revenues (CHFmn) 18 8 125% ▪ Progressing with construction of the town homes & the villas in the marina village area along with “E” & “B” building clusters comprising 68 apartments due for delivery in 2018 and early 2019. 8
Makadi Heights, Egypt 1H 2018 Updates Financials & KPIs 1H 2018 1H 2017 % Chg ▪ We launched a new project in April 2018 with a total inventory Real Estate of CHF 11.1mn which was a huge success. Net Contracted Units (CHFmn) 6.03 0.03 - No of Contracted Units 81 1 - *We are finalizing all necessary documentation and submission for Avg. Selling Price (CHF/m 2 ) 857 276 211% the sale of our earlier communicated 3 hotels in Makadi for a total Total Revenues (CHFmn) 0.2 0.1 100% Hotels EV of CHF 49mn with cash proceeds of CHF 27.4mn and the Total Revenues (CHFmn)* 2 1.4 42.8% deconsolidation of CHF 14.4mn of debt. Destination Management 0.3 0.2 Total Revenues (CHFmn) 50% Total Makadi 2.5 1.7 Total Revenues (CHFmn) 47.1% 9
Agenda 1H 2018 Key Highlights & Destination Progress Page 3 1H 2018 Financials Highlights Page 12 1H 2018 Appendix Page 17 10 10
Income Statement Notes (CHF mn) Q2 2018 Q2 2017 1H 2018 1H 2017 Revenue 81.5 56.1 155.6 108.6 Revenues and gross profit increased due to 1 1 the enhanced operational performance Cost of sales (54.0) (44.1) (106.1) (83.5) across all business segments. Gross profit 27.5 12.0 49.5 25.1 1 Investment income increased mainly due to: 2 • The increase in real estate cash collection. Gross profit margin 33.9% 21.4% 31.8% 23.1% • Increase in interest income on bank Investment income 1.5 1.2 3.6 2.1 2 deposits. Administrative expenses (8.7) (7.1) (18.1) (16.2) Other gains and losses for 1H 2018 mainly 3 includes: Adj. EBITDA 20.3 6.1 35.0 11.0 Adj. EBITDA margin 24.9% 10.9% 22.5% 10.1% • FX translations losses of CHF 16.7mn • FX revaluation gain of CHF 3.6mn Other gains & losses (8.8) 7.1 (8.0) 8.3 3 While 1H 2017 figures included: Share of associates losses (3.6) (4.7) (7.5) (8.2) • Gains in relation to settlement of borrowings in the amount of CHF 6.3mn. EBITDA 7.9 8.5 19.5 11.1 • FX gain of CHF 2.2mn. Depreciation (5.8) (5.6) (11.2) (11.8) • Other gains of CHF 0.1mn. Finance costs (10.2) (8.5) (19.2) (16.4) 4 Increase in Finance costs mainly due to: 4 • Increase in interest rates. Income tax expense (3.2) (1.2) (5.5) (2.2) 5 Net losses for the period (11.3) (6.8) (16.4) (19.3) Income Tax expense increased due to the 5 increase of the profitability of the Attributed as follows: subsidiaries. ODH shareholders (10.5) (5.6) (17.6) (18.9) Non-controlling interest (0.8) (1.2) 1.2 (0.4) Basic EPS (CHF) (0.26) (0.14) (0.44) (0.47) 11 11
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