Kepler Cheuvreux 19 th Swiss Seminar 22 nd March 2018
El Gouna, Egypt ODH at a glance The Turn around story Outlook 2
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 28 years of experience and a proven track record of sustainable Egypt Oman UAE Other Projects Total Montenegro development, including hotels, villas, apartments, 49.1 mn 20.8 mn 0.3 mn 6.9 mn 23.2 mn 100.3 mn leisure facilities such as golf courses, marinas and Total Land sqm sqm sqm sqm sqm sqm Bank supporting infrastructure. Number of 29 Hotels 4 Hotels 1 Hotel - 1 Hotel 35 Hotels Hotels ▪ ODH boasts a diversified portfolio of destinations spread over 7 jurisdictions. 6,767 971 487 100 8,325 Number of - Rooms Rooms Rooms Rooms Rooms Rooms ▪ ODH currently owns a land bank of 100.3 mn sqm Real Estate 192 Units 132 Units 44 Units 368 Units - - units sold and a hospitality portfolio of 8,325 rooms. (9M 2017) 9M 2017 Revenue contribution by Business segment 9M 2017 Revenue contribution by country 7% 12% Hotels 11% Egypt 12% Real Estate Oman CHF 170.8mn CHF 170.8mn 53% Montenegro 58% Town Management 29% 18% UAE Tamweel Group 3
Andermatt, Switzerland ODH at a glance The Turn around story Outlook 4
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 Gouna, KPIs distribution is not granular enough. Egypt. ▪ Responsibility matrix leads to redundancies. ▪ Most international destinations still in the ramp- ▪ up phase. BU structure hinders development of the Group. ▪ ▪ Financial pressure resulting from: negative Project management inefficiencies. operating cash flows, current debt levels and investment requirements. 5
… 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 ▪ Identified specific land plots for sale or sub- market presence with the investor, analyst & shareholder community. development of projects that add value to the destination. ▪ Providing the market with an updated fair value of the remaining undeveloped land bank through an external valuator. 6
1) Establishment of Enhanced Business Practices Destination Based Structure ▪ Successfully implemented the destination based structure, pushing more authority and responsibility on the ground for each destination, to better increase operational efficiency. El Gouna, Egypt Hawana, Salalah Real Estate KPIs Real Estate KPIs 87 (OMR mn) (EGP mn) 4.5 100 173 1200 200 4.0 90 163 80 180 3.5 4.0 135 2 1000 70 3.0 160 1 60 2.5 140 958.9 800 50 2.0 120 40 0.6 1.5 600 100 0.3 30 1.0 20 80 400 0.5 10 60 474.4 442 0.0 0 40 200 20 9M 2015 9M 2016 9M 2017 0 0 9M 2015 9M 2016 9M 2017 Value of Contracted Units (CHFmn) Number of Units Value of Contracted Units (EGPmn) Number of Units Hotels KPIs Hotels KPIs (OMR mn) (EGP mn) 784 700 75% 66% 700 80% 467 68% 70% 600 55% 10.0 69% 634.4 60% 9.0 64% 500 59% 9.1 8.0 50% 49% 400 7.0 40% 46% 6.0 39% 300 30% 5.0 8.2 200 299.8 288 29% 4.0 20% 73 53 279.7 3.0 19% 100 10% 5.2 2.7 2.0 0.8 2.3 9% 0 0% 1.0 0.0 -1% 9M 2015 9M 2016 9M 2017 9M 2015 9M 2016 9M 2017 GOP Revenues Occ. Rate GOP Revenues Occ. Rate No. of rooms ▪ ▪ Launched Phase I & II of G-Space and all offices were rented out. Added 98 new rooms in Al Fanar Hotel & 22 new rooms in Rotana Hotel, by end of Dec. 2017, making the total no. of rooms 904. ▪ Hosted the first edition of El Gouna Film Festival, with 1000+ attendees. ▪ Al Fanar Hotel was awarded a 5-star rating from Ministry of Tourism. ▪ Hosted El Gouna International Squash Open & Orascom Development PSA ▪ Women’s World Championship, the first time to be held in Egypt. Opened the Aqua Park in January 2018, the first Aqua Park in Oman. 7
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 (September 30, 2017) Total debt by currency (September 30, 2017) 1% 7% 6% 8% USD Egypt 13% OMR 21% CHF359.5m Oman 53% EGP AED 70% UAE 21% EUR Montenegro 8
2) Strengthening ODH balance sheet Cont’d Cost of Debt is 9.1% Maturity & Balance in 2016 Current Maturity Profile & Balance in 2017 81 140 90 115 71 80 120 64 91 58 70 100 60 43 80 50 49 47 60 40 27 24 30 40 15 15 15 9 10 20 4 1 1 20 1 0 0 10 0 0 CF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 FY 2017 Balance: CHF 378.1mn. FY 2016 Balance: CHF 362.3mn. Expected Cost of Debt is 8.1% Targeted Cost of Debt is 7.9% Maturity Profile after ODE Rescheduling in 2018 Maturity Profile after ODE Rescheduling & Oman Debt Reschedule 83 90 83 90 80 80 70 70 56 60 45 44 60 43 43 39 50 37 36 50 35 34 40 40 24 21 30 30 9 9 9 7 20 20 0 0 1 0 0 10 10 0 0 CF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 - CF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2032 Expected FY 2018 Balance Post Egypt Debt reduction: CHF 322.2mn. Expected FY 2018 Balance Post Egypt Debt reduction & Oman Rescheduling: CHF 336.0mn. * All debt figures exclude Tamweel Group 9
3 ) Repositioning & Enhancement of ODH’s brand Management took the decision to delist ODH’s EDRs from the Egyptian Stock Exchange (EGX). The Delisting took place in May 2017 ; and had a positive effect on ODH’s and ODE’s stock price and trading volume. ODH vs. SPI Index (Jan. 1, 2016 – March 13, 2018) ODE vs. EGX Index (Jan. 1, 2016 – March 13, 2018) ODH 100.0% 600% ODE 81% 487% 80.0% 500% 60.0% 400% SPI 40.0% 300% 20.1% EGX 183% 20.0% 200% 0.0% 100% -20.0% 0% -40.0% -100% -60.0% ODH SPI ODE EGX FY 2017 YTD March 13 th FY 2017 YTD March 13 th ODHN.SW FY 2015 FY 2016 ORHD.CA FY 2015 FY 2016 % Return (47.7%) (50.6%) 115.7% 44.5% % Return (56.10%) (5.39%) 279.1% 37.8% Close price (CHF) 10.25 5.11 11.0 16.05 Close price (EGP) 6.68 6.32 23.77 32.75 Mkt. Cap (CHFmn) 414.4 206.4 444.4 648.4 Mkt. Cap (EGPmn) 1,477.6 1,398.0 5,257.9 7,257.4 Av. Daily Volume 20,579 19,433 25,058 80,806 Av. Daily Volume 99,280 206,112 362,526 239,512 10
Today ODH’s Operational and Financial Stance Group Real Estate KPIs (CHFmn) Group Hotels KPIs (CHFm) 368 150 254 140 265 400 70% 63% 60% 56% 204 120 60% 53% 155 126.2 50% 50% 100 50% 100 124 126 119 120 80 115.2 40% 200 95 90.5 60 86.1 88 30% 50 40 68.6 66 85.9 20% 49.2 20 39.3 31 24 10% 21 0 0 15 0 2013 2014 2015 9M 2016 9M 2017 FY 2016 FY 2017 0% 2013 2014 2015 2016 9M 2016 9M 2017 Value of Contracted Units Number of Units GOP Revenues Occ. Rate Group Revenues (CHFmn) Group Adj. EBITDA (CHFmn) Group Cash Flows (CHFmn) 2013 2014 2015 2016 9m 2016 9m 2017 306 0.1 81 251 237 221 (9.1) (8.5) 43 170 171 25 (23.7) (26.2) 20 16 14 -7 2011 2013 2014 2015 2016 9M 9M 2013 2014 2015 2016 9M 9M (52.2) 2016 2017 2016 2017 11
Revenue Contribution by Country Country Revenue Contribution as of September 30, 2016 Country Revenue Contribution as of September 30, 2017 12% 12% 0% Egypt 12% Egypt Oman CHF 170.8mn 22% Oman CHF 169.9mn Montenegro 58% 18% Montenegro UAE 66% UAE Hotels’ Revenue Contribution as of September 30, 2016 Hotels’ Revenue Contribution as of September 30, 2017 23% 21% Egypt Egypt 51% Oman CHF 85.9mn CHF 90.5mn 51% Oman UAE UAE 26% 28% 12
Hawana Salalah, Oman ODH at a glance The Turn around story Outlook 2018 13
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