Orascom Development Egypt (S.A.E) · EGX:ORHD
Orascom Development Egypt (S.A.E) — Orascom Development Egypt — FY2017 Earnings Presentation
51 slides from Orascom Development Egypt (S.A.E)'s earnings presentation, April 2018
Slide 1: Orascom Development April 2018
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Slide 2: Agenda
Agenda ODE : Leading Developer of Fully Integrated Towns Projects Overview Operational and Financial Summary Appendix
Slide 3: Orascom Development Egypt (ODE) Today
Orascom Development Egypt (ODE) Today The Only Leading Developer of One of The Largest One of The Largest Hotels Fully Integrated Towns Land Banks Portfolio 45.7 million sqm, out of which 27 hotels, 20 self-managed and 7 Including Real Estate, Hotels. activities, 27.6 million sqm is still under mana
Slide 4: ODE is a Pioneer Developer of Self-Sufficient Resort Towns
ODE is a Pioneer Developer of Self-Sufficient Resort Towns Company Overview Shareholding Structure 1 ▪ Orascom Development Egypt (“ODE” or the “Company”) is an integrated developer of resort towns, involving the development of residential units, hotels, and recreational facilities such as golf cours
Slide 5: Unique, Vertically Integrated, Business Model
Unique, Vertically Integrated, Business Model… Acquisition Development Phase Operational Phase phase Land Bank Value Creation New Real Estate RE Owner Services destination identification Hotel Development Hotel Operations acquisition & initial concept Destination Development Destination Operations P
Slide 6: Business Segments - Overview
Business Segments - Overview Hotels Real Estate Town Management Tamweel Group ▪ 27 Hotels , total of 6,035 rooms ▪ Land bank acquired at nominal ▪ Public services &infrastructure ▪ Tamweel; Mortgage Company ▪ 20 self managed, 7 under- costs maintenance that includes: management ▪ Sale of middle-to-u
Slide 7: El Gouna - Egypt
El Gouna - Egypt El Gouna - Egypt 77
Slide 8: Agenda
Agenda ODE: Leading Developer of Fully Integrated Towns Projects Overview Operational and Financial Summary Appendix
Slide 9: El Gouna - World Class Destination on the Egyptian Red Sea Coast
El Gouna - World Class Destination on the Egyptian Red Sea Coast ▪ Total land area : 36.92 million sqm , Developed: 15.0 million sqm, (40.6% developed) ▪ 16 hotels with 2,521 rooms ( five 5 *s , eight 4 *s and three 3*s) El Gouna Key Facts ▪ A private, self-sufficient town built on 10 km of the Red
Slide 10: Taba Heights – Sinai's Premium Destination
Taba Heights – Sinai’s Premium Destination ▪ Total land area : 4.27 million sqm, Developed: 2.56 million sqm, (60% developed) ▪ 6 hotels; 2,365 rooms (five 5* s and one 4 *s) Taba Heights Key Facts ▪ Taba Heights is situated between the mountain ranges of the Sinai Peninsula only 25 km away from Tab
Slide 11: Makadi - The First Gated Community In The Heart Of Hurghada
Makadi - The First Gated Community In The Heart Of Hurghada ▪ Total land area : 3.44 million sqm, Developed: 0.45 million sqm , (13.1% developed) ▪ One 4* hotel with 283 rooms + two 4* & 5* Azur Hotels with a total of 830 rooms, Royal Azur, a 5* Hotel (491 rooms) Makadi & Club Azur, a 4* Hotel (339
Slide 12: Byoum – The Heart of Fayoum, On Lake Qarun
Byoum – The Heart of Fayoum, On Lake Qarun ▪ Total land area : 1.08 million sqm, Developed: 0.32 million sqm , (29.6% developed) Fayoum ▪ One 4* hotel with 50 rooms Key Facts ▪ Located 100 km southwest of Cairo in an ideal location overlooking the spiritual lake of Qarun. Plans are set to develop tw
Slide 13: Taba Heights - Egypt
Taba Heights - Egypt 13 13
Slide 14: Agenda
Agenda ODE: Leading Developer of Fully Integrated Towns Projects Overview Operational and Financial Summary Appendix
Slide 15: Key Highlights from ODE FY 2017
Key Highlights from ODE FY 2017 Orascom Development Egypt; Continuously Delivers Solid Earnings Performance. Revenues increased by 78.8% to EGP 2,603.0 billion vs. EGP 1,455.5 billion in FY 2016 and Net Profits reached EGP 392.0 million. Board proposes a Cash Dividend of EGP 1.0 per share. ➢ Achieve
Slide 16: Business Segments FY 2017
Business Segments FY 2017 Revenue EBITDA Adj. EBITDA1 (EGP mn) FY 2017 FY 2016 Δ in % FY 2017 FY 2016 FY 2017 FY 2016 Hotels 1,059.7 499.7 112.1% 535.7 (54.5) 434.0 50.4 Real Estate 773.5 468.6 65.1% 491.0 558.6 477.8 270.0 Land - - - - 242.82 - 22.7 Town Management2 438.5 275.1 59.4% 71.3 36.8 67.9
Slide 17: Business Segments 4Q 2017
Business Segments 4Q 2017 Revenue EBITDA Adj. EBITDA1 (EGP mn) 4Q 2017 4Q 2016 Δ in % 4Q 2017 4Q 2016 4Q 2017 4Q 2016 Hotels 325.6 169.0 92.7% 122.7 (45.4) 123.4 21.6 Real Estate 347.1 174.9 98.5% 190.3 327.9 186.3 109.6 Land - - - - 180.12 - (5.2) Town Management2 126.1 91.1 38.4% 33.4 19.5 29.3 16
Slide 18: Real Estate KPIs FY 2017, 4Q 2017 & Deferred Revenue
Real Estate KPIs FY 2017, 4Q 2017 & Deferred Revenue Net value of Contracted Number of Contracted Average Selling Price Units (EGPmn) Units (EGP/m2) Destination FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 El Gouna 1,434.6 769.9 258 197 35,301 26,004 Fayoum 27.2 2.6 21 3 10,920 7,844 Makadi 1.0 0.6 2 1 4,839
Slide 19: Hotel KPIs FY 2017 & 4Q 2017
Hotel KPIs FY 2017 & 4Q 2017 Total number of hotel Number of available Occupancy for TRevPAR* GOP PAR** rooms rooms available rooms (%) (EGP) (EGP) Destination FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 El Gouna1 2,480 2,473 2,480 2,473 77 59 958 463 455 148 Taba Heights2 2,365 2,36
Slide 20: Income Statement FY and 4Q 2017, EGP Million
Income Statement FY and 4Q 2017, EGP Million (EGP mn) 4Q 2017 4Q 2016 FY 2017 FY 2016 Notes Revenue 880.6 495.8 1 2,603.0 1,455.5 1 Revenues and gross profit increased due to the Cost of sales (541.6) (321.3) (1,619.5) (1,015.9) enhanced operational performance across all business segments. Gross pr
Slide 21: Balance Sheet FY 2017, EGP Million
Balance Sheet FY 2017, EGP Million (EGP mn) 31.12.17 31.12.16 Notes Property, plant and equipment 1 3,481.0 3,814.3 1 PPE decreased mainly due to the reclassification of the Inventory 2 624.6 586.0 3 hotels in Makadi to assets held for sale. Receivables 1,578.9 1,428.4 Cash and bank balances 3 1,257
Slide 22: Cash Flow Statement FY 2017, EGP Million
Cash Flow Statement FY 2017, EGP Million (EGP mn) FY 2017 FY 2016 Notes Cash from operations 1 617 798 1 Cash flow from operations decreased mainly Interest paid 2 (27) (40) due to: • Increase in construction cost. Taxes paid 3 (58) (36) • Increase of Tamweel Mortgage activities Operating Cash Flow
Slide 23: Financing Profile
Financing Profile 1 Interest expense by currency Total debt by currency in %, as of 31.12.17 in %, as of 31.12.17 4% 6% 19% 41% 55% 75% EGP USD EUR EGP USD EUR 31.12.17 31.12.16 Equity ratio (%)2 19.3% 17.3% Cost of debt (%)3 10.1% 7.7% 1 All debt figures exclude debt relating to assets held for sal
Slide 24: Outlook 2018
Outlook 2018 ➢ ODE’s expected cash proceeds from its stake sale in the 3 hotels in Makadi + a land plot is c. EGP 492.8 million. The sale will result in the deconsolidation of EGP 260.1 million of debt, with an expected one-off gain of c. EGP 373.8 million. ➢ Proceeds of the approved sale in additio
Slide 25: El Gouna - Egypt
El Gouna - Egypt 25
Slide 26: Agenda
Agenda ODE: Leading Developer of Fully Integrated Towns Projects Overview Operational and Financial Summary Appendix
Slide 27: Taba Heights - Egypt
Taba Heights- Egypt 27
Slide 28: Income Statement, EGP Million
Income Statement, EGP Million 2010 2011 2012 2013 2014 2015 FY 2016 FY 2017 Total Revenues 2,099 1,415 1,399 1,195 1,435 1,773 1,455 2,603 Cost of sales (1,295) (1,046) (1,066) (987) (1,055) (1,019) (1,016) (1,611) Depreciation Expense (177) (178) (162) (130) (143) (154) (224) (222) Gross Profit 627
Slide 29: Balance Sheet, EGP Million
Balance Sheet, EGP Million 2010 2011 2012 2013 2014 2015 FY 2016 FY 2017 Cash & Cash Equivalents 452 244 240 189 463 821 871 1.258 Net Receivables 599 582 395 252 390 454 790 916 Total Inventory 829 1,111 985 1,122 649 645 586 624 Debtors and other Debit Balances 367 295 254 244 219 120 165 239 Due
Slide 30: New and Ongoing Real Estate Projects
New and Ongoing Real Estate Projects 30
Slide 31: Joubal Views, Extension to Joubal Launched & Sold Out
Joubal Views, Extension to Joubal Launched & Sold Out Project Description: Built on carefully crafted elevated land & designed to give residents a panoramic view of their surroundings. From different levels; residents can see the marina, the sea, and the mountains. Key Facts Product 1 Product 2 Loca
Slide 32: Joubal Lagoons Phase 2
Joubal Lagoons Phase 2 Launched & Sold Out Project Description: Directly overlooking the lagoon and golf course, adding more features to the Joubal project units. Key Facts Product 1 Product 2 Location El Gouna, Egypt Type Twin Villas Type Villas Launch Date September 2015 No of units 26 No of units
Slide 33: Sabina – Twin Villas
Sabina – Twin Villas Launched & Sold Out Project Description: Inspired from Nubian like design with a new modern edge, using earth colors , designed to give residents the luxury of space and privacy of their own pools and gardens. Key Facts Location El Gouna, Egypt Launch Date September 2015 Product
Slide 34: Water Side Condos Launched
Water Side Condos Launched Project Description: Apartment Blocks, targeting Egyptian young families, offering affordability , function-ability & exclusivity, overlooking a unique water feature. Key Facts Location El Gouna, Egypt Launch Date December 2015 Product type Apartments Total Project Area (s
Slide 35: Fanadir Bay Launched & Sold Out
Fanadir Bay Launched & Sold Out Project Description: Fanadir Bay brings intelligently designed waterfront units to one of its most exclusive neighborhoods yet with its vast spaces and unique architecture, nothing stands against its originality. Key Facts Location El Gouna, Egypt Launch Date April 20
Slide 36: Fanadir Bay II Launched & Sold Out
Fanadir Bay II Launched & Sold Out Project Description: Fanadir Bay brings intelligently designed waterfront units to one of its most exclusive neighborhoods yet with its vast spaces and unique architecture, nothing stands against its originality. Key Facts Location El Gouna, Egypt Launch Date April
Slide 37: Tawila Launched & Sold Out
Tawila Launched & Sold Out Project Description: Tawlia is comprised of five residential islands connected to one another by six El Gouna signature bridges. The glittering star of Tawila is its 18 acre seawater lake. Key Facts Location El Gouna, Egypt Launch Date October 2016 Product Type Villas and
Slide 38: Abu Tig Hill Newly Launched & Sold Out
Abu Tig Hill Newly Launched & Sold Out Project Description: Surrounded by turquoise views, a sense of freedom and space invitingly opens before you Nestled between El Gouna’s two famed marinas, and positioned on a graciously elevated hill, this peaceful haven presents opportunities for life redefine
Slide 39: Byoum Newly Launched
Byoum Newly Launched Project Description: Directly overlooking the spiritual lake of Qarun, plans are set to develop two luxury residential communities and a hotel. Key Facts Location Fayoum, Egypt Launch Date Q2 2017 2 Total Project Area (m ) 3,935 m2 2 Footprint (m ) 1,910 m2 Final Delivery Q4 202
Slide 40: Hotels Portfolio
Hotels Portfolio
Slide 41: El Gouna - Hotels Map
El Gouna - Hotels Map 41
Slide 42: El Gouna hotels
***** ***** 12 Rooms 420 Rooms ***** 86 Rooms A luxury guesthouse directly set on the An upscale beachfront resort offering a A family-oriented hotel featuring colorful northern shores of Mangroovy Beach relaxing atmosphere combined with a hillside accommodations reminiscent of and its kitesurfing s
Slide 43: El Gouna hotels
**** **** **** 239 Rooms 69 Rooms 155 Rooms A beachfront resort with an all inclusive Overlooking the New Abu Tig Marina The Three Corners Ocean View offers a 4- program. The 4-star hotel is built along a with direct access to El Gouna’s star all inclusive experience in an Adults- virgin beach expan
Slide 44: El Gouna hotels
*** *** *** 50 Rooms 67 Rooms 28 Rooms Directly overlooking the Abu Tig Marina In the heart of the Abu Tig Marina with With only 28 guestrooms in the beautiful promenade, minutes away from the beach, the most luxurious views and the most Abu Tig Marina, Turtle’s Inn is one of El the 3-star Captain’s
Slide 45: Taba Heights - Hotels Map
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Slide 46: Taba Heights hotels
***** **** ***** 503 Rooms 394 Rooms 426 Rooms Beautifully framed by the pristine natural Consisting of three separate structures linked The beachfront resort is situated on over 44 acres environment, award winning architect Michael by tropical garden pathways and resting on a of lush gardens, 2800
Slide 47: Makadi hotel
Located at Makadi bay, one of Hurghada’s fascinating shores, 25 km away from Hurghada International airport, the All Inclusive beachfront resort overlooks its ***** own spacious private sandy beach, offering 491 Rooms seven restaurants & bars, a fully equipped watersports center, two tennis courts,
Slide 48: Byoum Lakeside Hotel
**** 50 Rooms A beautiful and peaceful hotel where all rooms and suites face Qarun Lake by design, with its rugged mountain-scape and pristine waters, lush greeneries and exotic birds passing by the terraces. Hotel rooms range from Superior rooms, Suites and large 2 bedrooms Grand Suites. Meals cons
Slide 49: Board of Directors
Board of Directors ▪ For more than 20 years she has served in the Egyptian Governmental sector, ▪ Mr. Ryan is a pioneer and visionary in luxury resort and residential development. amongst others as Deputy Minister of Finance & Head of the Budgeting With more than twenty years of experience. Dr. Mana
Slide 50: El Gouna - Egypt
El Gouna - Egypt 50
Slide 51: Disclaimer
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