August 2018 Agenda ODH : Leading Developer of Fully Integrated - PowerPoint PPT Presentation

August 2018

Agenda ODH : Leading Developer of Fully Integrated Towns Projects Overview Operational, Financial Summary and Outlook Appendix

ODH, a leading fully integrated developer with a portfolio of diversified assets Company Overview Destinations Key Facts ▪ A leading developer of fully integrated destinations, with over 29 years of experience and a proven track record of sustainable development, Egypt Oman UAE Montenegro Other Projects Total including hotels, villas, apartments, leisure 49.0 mn 20.8 mn 0.3 mn 6.9 mn 23.2 mn 100.2 mn facilities such as golf courses, marinas and Total Land sqm sqm sqm sqm sqm sqm Bank supporting infrastructure. 25 32 Number of 4 Hotels 1 Hotel 1 Hotel 1 Hotel ▪ ODH boasts a diversified portfolio of destinations Hotels Hotels Hotels spread over 7 jurisdictions. 5,099 971 475 111 100 6,756 Number of Rooms Rooms Rooms Rooms Rooms Rooms Rooms ▪ ODH owns a land bank of 100.2 mn sqm of which 249 185 450 Real Estate - 16 Units - 25.4% is completed and still 74.7 mn sqm to Units Units Units units sold develop & a hospitality portfolio of 6,756 rooms. (1H 2018) 1H 2018 Revenue contribution by country 1H 2018 Revenue contribution by Business segment 5% Hotels 12% 10% 10% Egypt Real Estate 47% CHF 155.6mn Oman CHF 155.6mn Town Management 58% UAE 20% 37% Montenegro Tamweel Group 3

ODH properties overview Total Land Completed Under Under Undeveloped Number of Number of Destination Name Bank area construction development area Hotels Rooms EGYPT 49.07 14.75 5.74 1.73 26.85 25* 5,099 El Gouna 36.92 9.57 5.38 1.30 20.67 17 2,654 Taba Heights 4.27 2.56 0.00 0.02 1.69 6 2,365 Harram City 2.60 1.93 0.25 0.24 0.18 - - Fayoum 1.08 0.26 0.08 0.08 0.67 1 53 Qena Gardens 0.80 0.00 0.00 0.01 0.79 - - Makadi Heights 3.39 0.43 0.03 0.08 2.85 - - UAE 0.29 0.29 0.00 0.01 0.01 1 475 The Cove 0.29 0.29 0.00 0.01 0.01 1 475 OMAN 20.84 2.53 0.16 3.06 15.09 4 971 Jebel Sifah 6.20 0.93 0.04 0.82 4.41 1 67 Hawana Salalah 13.60 1.60 0.12 1.44 10.44 3 904 As Sodah Island 1.00 - - 0.80 0.20 - - City Walk 0.04 - - - 0.04 - - SWITZERLAND 1.57 1.22 0.07 0.27 0.00 1 100 Andermatt 1.57 1.22 0.07 0.27 0.00 1 100 MOROCCO 15.00 0.00 0.00 3.00 12.00 - - Chbika 15.00 0.00 0.00 3.00 12.00 - - MONTENEGRO 6.92 0.03 0.74 0.29 5.86 1 111 Luštica Bay 6.92 0.03 0.74 0.29 5.86 1 111 UNITED KINGDOM 6.54 0.00 0.00 0.00 6.54 - - Eco-Bos 6.54 0.00 0.00 0.00 6.54 - - Total 100.2 18.81 6.71 8.36 66.34 32 6,756 * The number of hotels in Egypt includes the floating hotel with 27 rooms 4

Unique, Vertically Integrated, Business Model… Acquisition Development Phase Operational Phase Phase Land Bank Value Creation Real Estate New RE Owner Services destination identification Hotel Development Hotel Operations acquisition & initial concept Destination Operations Destination Development Operations Management Project Management Planning & Design Property & Facility Construction Management Internal / Operator hand over Marketing concept and sales Detailed destination concept Buyer hand over / opening Initial destination concept performance and service Periodic assessment of Start of construction Start of operation Product sign-offs Start of sales strategy quality 5

2016: New Management, Situation Analysis and Identified Challenges Challenges and development areas related Increased complexity in company structure to strategy and internal structure requires organizational adjustments ▪ ▪ Performance largely dependent on El KPIs distribution is not granular enough. Gouna, Egypt. ▪ Responsibility matrix leads to ▪ Most international destinations still in the redundancies. ramp-up phase. ▪ BU structure hinders development of the ▪ Financial pressure resulting from: Group. negative operating cash flows, current ▪ debt levels and investment requirements. Project management inefficiencies. 6

… Accordingly, adopted and has since successfully executed, and continues to execute on a three pillar strategy that was communicated to the market in June 2016 Establishment of enhanced business Strengthening ODH balance Repositioning & enhancement of practices sheet ODH’s brand ▪ Take 1. Destination based structure: out the necessary ▪ Delisting of ODH’s EDRs from the impairments on the investments EGX. ▪ Each destination to become a separately that will not generate value. managed entity, with a tailored commercial ▪ Explore the first & second home ▪ Reduce the debt balance in Egypt strategy and financing plan, headed by its markets in Cairo/North Coast in own CEO or General Manager. and Restructure company’s debt in Egypt. the other destinations. 2. Continuous land value creation: ▪ Monetize ▪ Position ODH Brand with the “Life non-core assets and ▪ Developing a targeted short-term minority stakes in certain as it should be” statement across development plan in each destination that destinations. all destinations. complements the Group’s 3-5 year business view. ▪ Maintain an open and active market presence with the investor, ▪ Identified specific land plots for sale or sub- development of projects that add value to analyst & shareholder community. the destination. ▪ Providing the market with an updated fair value of the remaining undeveloped land bank through an external valuator. 7

1) Establishment of Enhanced Business Practices Destination Based Structure Implemented the destination based structure, pushing more authority & responsibility on the ground for each destination, to better increase operational efficiency. El Gouna, Egypt Hawana, Salalah Real Estate KPIs Real Estate KPIs (EGP mn) 1,073 95 (OMR mn) 1200 5.0 100 4.5 90 1000 4.7 705 4.0 80 3.5 70 800 4 3.0 60 434 600 2 2.5 50 348 2.0 40 166 400 135 93 129 1.5 30 0.4 1 1.0 0.5 0.1 20 200 0.5 10 0.0 0 0 1H 2015 1H 2016 1H 2017 1H 2018 1H 2015 1H 2016 1H 2017 1H 2018 Value of Contracted Units (EGPmn) Number of Units Value of Contracted Units (OMR mn) Number of Units Hotels KPIs Hotels KPIs (EGP mn) (OMR mn) 90% 600 80% 904 467 700 784 75% 80% 65% 500 8.0 100% 531 70% 75% 90% 7.0 7.6 52% 400 60% 80% 6.0 383 50% 6.2 70% 300 5.0 67% 70% 60% 40% 271 4.7 4.0 50% 30% 200 48% 40% 3.0 184 20% 3.0 30% 156 100 2.7 2.0 45 20 179 10% 20% 0.8 1.9 1.0 0.2 10% 0% 0 0.0 0% 1H 2015 1H 2016 1H 2017 1H 2018 1H 2015 1H 2016 1H 2017 1H 2018 GOP Revenues Occ. Rate GOP Revenues Occ. Rate No. of rooms 8

2) Strengthening ODH balance sheet Debt Reduction and Restructure ▪ Reduction of debt balance in Egypt through proceeds from sale of non core assets & excess cash from operation to reach optimal leverage ratios . ▪ Restructure and grow the balance elsewhere to match the expansion plans in the other destinations . Total debt by country (June 30, 2018) Total debt by currency (June 30, 2018) 2% 12% EGP 8% Egypt 22% USD Oman 22% EUR CHF 350.1mn CHF 350.1mn 8% UAE AED 7% 68% Montenegro OMR 51% 9

2) Strengthening ODH balance sheet Cont’d Current nt Ma Matur urity Profi ofile e & Balanc ance e in 2018 18 Current debt by currency Current nt Debt bt by Coun untry 1H 2018 Balance: CHF 350mn Cost of Debt: 9.2% 8% 2% EGP Egypt 74 12% 68 61 22% 55 Oman USD 40 28 UAE 22% 11 13 EUR 8% 1 Montenegro 7% 68% AED 51% CF 2018 2019 2020 2021 2022 2023 2024 2025 - OMR 2032 Ma Matur urity Pr Prof ofile afte ter r ODE DE Re Resch cheduling Debt by currency after ODE Rescheduling Debt bt by Coun untry after er ODE Resc sche hedu duling ng Post ODE Debt reduction: CHF 309mn Cost of Debt: 8.6% 3% EGP 7% 77 EGYPT 9% 25% USD Oman 44 43 42 41 36 EUR UAE 25% 9% 13 11 51% Montenegro 64% AED 1 8% OMR CF 2018 2019 2020 2021 2022 2023 2024 2025 - 2032 Debt by currency after Oman Rescheduling Maturity Profile after Oman Rescheduling Debt bt by Coun untry after er Oman an Resc sched hedul uling ng 3% Cost of Debt: 8.4% EGP 6% 8% 78 EGYPT 73 USD 41 31% Oman 33 34 31 23 11 11 EUR UAE 31% 47% 58% Montenegro 8% AED CF 2018 2019 2020 2021 2022 2023 2024 2025 - 7% 2032 OMR 10