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 surge by 43.3% to CHF 155.6 million and Adjusted EBITDA more than tripled to CHF 35 million Dienstag, 14. August 2018 - 07:00

Orascom Development Holding AG / Key word(s): Interim Report/Interim Report
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 surge by 43.3% to CHF 155.6 million
and Adjusted EBITDA more than tripled to CHF 35 million

14-Aug-2018 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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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 surge by 43.3% to CHF 155.6 million
and Adjusted EBITDA more than tripled to CHF 35 million.

Group Highlights

  * Net real estate sales recorded a significant increase of 87.6% to CHF
    98.7 million with enhanced contributions from all our destinations.

  * Real estate revenues surged by 91.1% to CHF 58.1 million on the back of
    increased unit deliveries in El Gouna, Jebal Sifah and Luštica Bay.

  * Hotel revenues increased by 24.6% to CHF 73.3 million and GOP increased
    by 41.8% to CHF 29.5 million.

  * Town management revenues continues its uptrend momentum with a 33.9%
    increase to CHF 15.8 million.

  * Adjusted EBITDA more than tripled to CHF 35 million vs. CHF 11 million
    in 1H 2017.

  * Reported Net Losses reached CHF 16.4 million, which included a one-off
    FX translations loss of CHF 16.7 million.

  * Sold 7,955 sqm land plot in El Gouna for USD 1 million (USD 130 per 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.

Altdorf, 14 August 2018 - ODH continued to deliver strong operational
results and curbed the bottom line losses of the Group to become
operationally breakeven excluding one offs and losses from associates.
Revenues increased by 43.3% to CHF 155.6 million in 1H 2018 compared to CHF
108.6 million in 1H 2017 and Gross profit increased by 97.2% to CHF 49.5
million vs. CHF 25.1 million in 1H 2017. Adjusted EBITDA more than tripled
to CHF 35 million compared to CHF 11 million in 1H 2017.

Reported net losses reached CHF 16.4 million, which included a one-off FX
translations loss of CHF 16.7 million, compared to a loss of CHF 19.3
million in 1H 2017 (which included gains in relation to settlement of
borrowings in the amount of CHF 6.3mn).

The one-off FX translation loss is mainly related to the devaluation of the
EGP in 2016. Whereby based on the accounting standards on the sale of a
foreign subsidiary, the cumulative historical FX gain or loss earlier
recognized in the other comprehensive income should be reclassified to the
P&L. Hence, the one-off FX losses of CHF 16.7 million that resulted upon the
sale of Citadel Azur hotel was reclassified from the foreign currency
translation reserve to the P&L. It is important to highlight that this had
no negative effect on the equity, as it was already taken into consideration
in 2016 with the devaluation. On the other hand, our equity increased by CHF
3.7 million as result of the sale.

Group Hotels:
Disciplined execution of our revised Hotel management strategy announced
early 2017, continues to drive strong operating results, sustaining solid
earnings growth. Hotels revenue grew 24.6% from CHF 58.8 million to CHF 73.3
million in 1H 2018, along with an increase of 41.8% in the GOP from CHF 20.8
million to CHF 29.5 million in 1H 2018. Adjusted EBITDA increased by 34.1%
to CHF 23.6 million vs. CHF 17.6 million in 1H 2017.

Group Real Estate:
Real estate segment recorded outstanding operational and financial results
across all destinations. Net sales increased by a solid 87.6% to CHF 98.7
million and revenues increased by 91.1% to CHF 58.1 million on the back of
unit deliveries in El Gouna, Jebal Sifah and Luštica. Total deferred revenue
from real estate that is yet to be recognized till 2023 increased by 24.3%
to reach CHF 185.8 million vs. CHF 149.5 million in 1H 2017. It is also
important to note in addition to the outstanding deferred revenue balance;
the Group also has a deferred interest income of CHF 13.5 million.

Group Town Management:
With the increase in scale, along with presence of more activities and
events across our destinations, the revenues of our Town management segment
continued its growing momentum and recorded a 33.9% increase to CHF 15.8
million vs. CHF 11.8 million.

El Gouna, Egypt
Our hotels in Egypt continued to take advantage of the country's tourism
revival, recording a 34.6% increase in revenues to CHF 37.7 million vs. CHF
28.0 million in 1H 2017 and a 58.5% increase in GOP to CHF 16.8 million. El
Gouna continued to foster its leading market position in the Egyptian
tourism sector and is the main contributor to the hotels segment results.
Revenues increased by 36.7% to CHF 29.4 million vs. CHF 21.5 million in 1H
2017 accompanied by a 49% increase in GOP to CHF 14.9 million vs. CHF 10
million in 1H 2017. Occupancy rates increased by 5.4% to reach 78% vs.74% in
1H 2017 and TRevPAR increased by 35.6% to CHF 61 vs.CHF 45 in 1H 2017, on
the back of the increased demand and room rates.

On the development level, Turtle's Inn Hotel was reopened post a full revamp
which afforded a double up of its ARR - going from CHF 26 to CHF 57. The
renovation of Turtle's Inn comes as a first step of a full renovation plan
for the three Abu Tig Marina Hotels. With demand recently picking up we are
also considering the addition of more rooms to the existing hotels and
possibly building a new hotel for the destination in 2018/2019.

Net real estate sales recorded a 50% increase to CHF 58.5 million vs. CHF
39.0 million in 1H 2017. In April 2018, we launched phase one of "Ancient
Sands Villas" with a total inventory of USD 22.7 million and managed to sell
almost USD 10 million to date. In July, we launched 12 new units in "Sabina
project" for a total value of USD 4 million, which were sold out on the
first day of launch. We are on track on achieving our real estate target of
the year and planning to launch new products in December.

On the town management side, we have successfully hosted our yearly events
in April, the International Squash Championship and El Gouna Polo. We are
planning to host the 2nd edition of El Gouna Film Festival after the great
success of the 1st edition. We also sold a 7,955 sqm land plot in El Gouna
for a total value of USD 1 million (USD 130 per sqm) to construct the first
office building in El Gouna and lease it to a German based company. This is
the first step into the establishment of El Gouna business park after
G-Space and positioning it as a regional business hub.

Taba Heights, Egypt
Taba Heights remains the most challenging destination due to the travel bans
on Sinai. Nevertheless, the targeted marketing activities lead to an
increase in the hotels revenues by 76.9% to CHF 2.3 million and continued to
reduce the GOP losses to reach only CHF 0.3 million.

Makadi Heights, Egypt
In April 2018, we designed a new sales and marketing strategy to revive our
destination "Makadi Heights" and launched a new project with a total
inventory of CHF 11.1 million which proved to be a great success, with net
sales reaching CHF 6 million vs. only CHF 0.03 million in 1H 2017. We are
capitalizing on the great success of the 1st phase of the project and
planning to launch more inventory to cater the demand of our clients.

Hawana Salalah, Oman
Though adversely impacted by the month of Ramadan and the Tropical Cyclone
which hit the destination in May and June, Salalah Hotels still reported a
19.3% increase in revenues from CHF 16.1 million to CHF 19.2 million, and a
39.6% growth in GOP from CHF 4.8 million to CHF 6.7 million.

The third extension of Fanar Resort and Residences is being constructed,
adding a further 177 rooms thus bringing the total number of rooms to 577,
and creating the largest hotel in the Orascom portfolio to take advantage of
the ongoing, rapid growth in demand and proven quick return on investment in
the hotels business for the destination.

On the real estate side, the new launch released in Q4 2017 continued to
witness huge demand whereby net sales increased almost 60 times to CHF 11.8
million in 1H 2018 vs. CHF 0.2 million in 1H 2017. Additionally, we started
construction in the "Hawana Lagoon" real estate project to be finalized in
Q3 2019 and we are planning to launch a new real estate project "Hawana
Island" in Q3 2018 with a total inventory of CHF 29.6 million.

Jebel Sifah, Oman
Net real estate sales continued its positive pace and increased by 70% to
CHF 13.6 million vs. CHF 8 million in 1H 2017. We are progressing with the
construction of phase one of the Golf Lake Residence project compromising
130 units with plans to be delivered before end of 2018.

From the town management side, aadditional pontoons are being installed at
the marina along with an enhanced water taxi service scheduled to launch in
2019 and the destination will welcome a new bar, restaurant, supermarket and
a fishing charter business in 2018.

Luštica Bay, Montenegro
We successfully opened the first hotel in the destination the "Chedi Luštica
Bay". The marina-front luxury boutique hotel is home to 111 guestrooms, 4
restaurants & bars, a fully equipped conference centre, and a spa and
fitness centre. The hotel had its soft launch on July 21, 2018 with bookings
already in place and very positive feedback from guests. Occupancy for the
hotel reached 41% during the first 10 days of opening and KPIs and financial
contribution will be recognized in Q3 results of the year.

We have several events lined up this summer with the launch of our hotel
where by a big event on August 17, 2018 is marked with more than 1,000
invitees. We also opened the first phase of the main marina with 52 berths
out of the total planed 176 berths.

With the increased interest on the rising destination, net sales increased
by 136.1% to reach CHF 8.5 million vs. CHF 3.6 million in 1H 2017. The year
2018 started as the busiest year yet on the development and construction
fronts. Besides the significant increase in sales that further emphasized
demand on our project, we are strongly progressing with the construction of
the town homes and villas of the marina village plus the E" and "B" building
clusters to be finalized in 2018 and early 2019.

Corporate Updates
We are finalizing all necessary documentation and submission for the sale of
our earlier communicated 3 hotels in Makadi for a total EV of CHF 49 million
with cash proceeds of CHF 27.4 million and the deconsolidation of CHF 14.4
million of debt.

We are also finalizing the necessary fillings for the sale of ODE's stake in
Tamweel Group at an equity valuation of CHF 20.0 million and will
deconsolidate its debt of c. CHF 59.2 million. Total cash proceeds from both
sales will be approximately CHF 44.8 million. In parallel, we are holding
advanced discussions and executing on our communicated plan with the banks
to reduce the debt on ODE by c. CHF 56 million in 2018.

On the Real Estate front, we are finalizing the documentation for our
revenue share agreement with the Egyptian government on the 1,000 feddan
plot in West Cairo. We are also continuing to hold advanced discussions to
acquire a land plot in North Coast. Both plots will mark our first entrance
into the first and second home markets in Egypt.

About Orascom Development Holding AG:

Orascom Development is a leading developer of fully integrated destinations
that include hotels, private villas and apartments, leisure facilities such
as golf courses, marinas and supporting infrastructure. Orascom
Development's diversified portfolio of destinations is spread over seven
jurisdictions (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro and United
Kingdom), with primary focus on touristic destinations. The Group currently
operates ten destinations; five in Egypt (El Gouna, Taba Heights, Fayoum
Makadi, and Harram City), The Cove in the United Arab Emirates, Jebel Sifah
and Hawana Salalah in Oman, Luštica Bay in Montenegro and Andermatt in
Switzerland.

Contact for Investors:
Sara El Gawahergy
Head of Investor Relations
Head of Strategic Projects Management
Tel: +20 224 61 89 61
Tel: +41 418 74 17 11
Email: ir@orascomdh.com

Contact for Media Relations:
Philippe Blangey
Partner
Dynamics Group AG
Tel: +41 432 68 32 35
Email: prb@dynamicsgroup.ch


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End of ad hoc announcement

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