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Baader Helvea Swiss Equities Conference January 10-11, 2019
ODH : Leading Developer of Fully Integrated Towns
Strategy Update
Outlook
Agenda
3
104.6 mn m2
of land bank across 7
countries
9 operating destinations
with 33 Hotels &
7,113 rooms
70.5 mn m2
remaining land bank
(67.4%)
A leading fully integrated developer
with 30 years of experience
Egypt:1. El Gouna2. Taba Heights3. Makadi Heights4. Fayoum5. O-West
Oman:5. Hawana Salalah6. Jebal Sifah7. As Sodah Island8. City Walk
UAE:9. The Cove
Switzerland:10. Andermatt
Montenegro:11. Luštica Bay
United Kingdom:12. Eco - Bos
Morocco:13. Chbika
Orascom Development Holding; The Group…
We are The largest Town Developers
4
Hawana Salalah todayHawana Salalah 2006
El Gouna 1986 El Gouna today
Land Bank 36.9mn m2 Developed 15.0mn m2
Land Bank 13.6mn m2 Developed 1.7mn m2
5
Luštica Bay 2009
Andermatt 2007 Andermatt today
Destinations Before and After
Land Bank 6.9mn m2
Developed 1.3mn m2
Luštica Bay today
Developed 0.8mn m2
Land Bank 1.5mn m2 Developed 1.3mn m2
ODH : Leading Developer of Fully Integrated Towns
Strategy Update
Outlook
Agenda
Leverage of ODH’s brand
▪ Delisting of ODH’s EDRs from
the EGX.
▪ Explore the first home market in
Cairo, Egypt.
▪ Position ODH Brand with the
“Life as it should be” statement
across all destinations.
Establishment of enhanced business practices
Destination based structure:
▪ Each destination to become aseparately managed entity, with atailored commercial strategy andfinancing plan, headed by its ownCEO or General Manager.
Strengthening ODH balance sheet
▪ Take out the necessaryimpairments on the investmentsthat will not generate value.
▪ Reduce the debt balance inEgypt and Restructurecompany’s debt in the otherdestinations.
▪ Monetize non-core assets and
minority stakes in certain
destinations.
In June 2016, we adopted and has since successfully executed on a three pillar strategy that wascommunicated to the market
7
Delivered Phase 1 of the Strategy
Operational Improvements Achieved In Phase 1, Now Focus On Shortening Timeline To Profitability
1.33.4
4.12.9
3.9
7.3
11.513.1
9.8
11.754%
69% 72%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
2
4
6
8
10
12
14
2015 2016 2017 9M 2017 9M 2018
GOP Revenues Occ. Rate %
97 133
419
287
419397 423
891
625
845
68%
57%
75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
100
200
300
400
500
600
700
800
900
100 0
2015 2016 2017 9M 2017 9M 2018
GOP Revenues Occ. Rate %
Destination based structure reaps its fruits
Hawana, Salalah
Hotels KPIs (EGP mn)
75%
62%65%
Hotels KPIs (OMR mn)
483769
1,435
959
1,549
0
200
400
600
800
1,0 00
1,2 00
1,4 00
1,6 00
1,8 00
2015 2016 2017 9M 2017 9M 2018
El Gouna, Egypt
Real Estate Net Sales Value (EGP mn)
79%
Real Estate Net Sales Value (OMR mn)
8
0.80.1
6.5
4.1
7.7
2015 2016 2017 9M 2017 9M 2018
Destinations starts performing once critical mass is reached
Andermatt, Switzerland
9
Luštica Bay, Montenegro
Real Estate Net Sales Value (EUR mn)
17
3038
22
50
2015 2016 2017 9M 2017 9M 2018
Real Estate Net Sales Value (CHF mn)
1721 23
16 19
35% 35%54%
0%
10%
20%
30%
40%
50%
60%
0
5
10
15
20
25
2015 2016 2017 9M 2017 9M 2018
Revenues Occ. Rate %
Hotels KPIs (CHF mn)
49% 49%
8.5
15.9 15.5
11.9
23.2
2015 2016 2017 9M 2017 9M 2018
Strengthening ODH’s balance sheet
Expected Cost of Debt: 8.7%
Maturity Profile Post Debt Repayment & Restructure (based on the balance of FY 2018)*
10
20 23
41
5763
6975
25
1
2017 2018 2019 2020 2021 2022 2023 2024 2025
Maturity Profile in 2016*
Debt balance: CHF 318mn.
Debt balance: CHF 374mn.Cost of Debt: 7.4%
1
2133 32 34
75
41
3 310 10 10 10 10
25
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
* Long Term Debt Maturity
Strengthening ODH’s balance sheet & non-core asset sale
Net Debt to Adjusted EBITDA
▪ Paid down CHF 34mn + 3years grace on interest &principal
▪ Paid another
CHF 10.4mn
▪ Sold 4 hotels for an EV of CHF103mn.
▪ Sold Tamweel Group for equityvalue of CHF 20mn.
▪ Refinanced debt in Oman
▪ Working on reducing Egypt’s debtto be finalized in Q1 2019.
14.5
8.4 3.5
2016 2017 TTM Sept. 2018
Net Debt
Adjusted EBITDA
289 276217
FY 2016 FY 2017 9M 2018
20 3362
FY 2016 FY 2017 TTM Sept. 2018
* After ODE Debt repayment, Net Debt to Adjusted EBITDA is expected to reach 3.2 times
12
20
33
16
46
2015 2016 2017 9M 17 9M 18
95115 126
86
158254
319
538
0
100
200
300
400
500
600
0
20
40
60
80
100
120
140
160
180
200
2015 2016 2017 9M 17 9M 18
Value of Contracted Units (CHFmn) Number of Units
(24)
(9)
19
8.8
31
2015 2016 2017 9M 17 9M 18
28 3648
3042
124 120131
9111056%
53%
63%
48%
50%
52%
54%
56%
58%
60%
62%
64%
0
20
40
60
80
100
120
140
2015 2016 2017 9M 17 9M 18
GOP Revenues Occ. Rate
238 237244
171
228
2015 2016 2017 9M 17 9M 18
Today ODH’s operational and financial stance
Group Hotels KPIs (CHFmn)Group Real Estate KPIs (CHFmn)
Group Cash Flows (CHFmn)Group Revenues (CHFmn)* Group Adj. EBITDA (CHFmn)*
683 64%
12
368
62%
* Numbers have been normalized to exclude land sales
Asset rich company with unrealized values
ODH Land Bank:
➢ Total land bank of 104.4 million sqm out of which 74.7million sqm is still undeveloped.
➢ Land is booked at cost – had never been revalued.
➢ El Gouna – Remaining 22.8 million sqm of landundeveloped.
➢ The book value of El Gouna land bank as of 9M 2018was USD 0.20 cents per sqm.
➢ CBRE Valuation came at USD 79.4 per sqm.
Total remaining value of El Gouna’s undeveloped land bank alone is
USD 1.8 billion
Hotels:
➢ ODH owns 33 Hotels with 7,113 guest rooms.
➢ Hotels are booked at cost and had never beenrevalued.
➢ CBRE valued the 17 hotels in El Gouna, Egypt at USD303.6 million, when their book value is USD 39.3million as of 9M 2018.
Land Bank Hotels
CBREs report executive summary can be found on ODH’s website
CBRE Report Values El Gouna Assets at USD 2.1 billion, 42 Times Its Current Book Value
Started with El Gouna – our largest remaining undeveloped land bank and biggest hotel portfolio.
O-West, Cairo project details
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Sales & Construction
➢ Total residential sales value of the project is EGP 77.0 billion (CHF 4.3billion at current rates).
➢ Sales duration over 8 years.
➢ Collection duration over 15 years.
➢ Construction duration over 12 years.
Government Payments
➢ Gov. is entitled to 26% of total residential sales collection for the first 8years.
➢ Gov. is entitled to a total cash payment of EGP 11.4 billion (CHF 633.5million) over 8 years and a primary in-kind residential BUA of 130,000sqm delivered in year 8 which imply a land cost per sqm of EGP 1,580(CHF 87.8) on a net present value basis.
➢ In addition to that, Gov. will be entitled to another in-kind residentialBUA of 150,000 sqm 75,000 sqm in year 9 and 75,000 sqm in year 10.
Land
➢ Total land Area – 4,200,000 sqm (1,000 Feddans).
➢ Total Residential units BUA - 3,197,880 sqm.
➢ Total number of residential units c.19,000 units.
➢ Commercial area is still underdevelopment.
➢ Orascom Development Egypt (ODE) signed an agreement with the EgyptianGovernment to co-develop a 4.2mn sqm integrated community project in 6th ofOctober City, West Cairo on a revenue sharing model.
➢ ODE owns 70% of the O-West.
Potential purchase of 1% + 1 share of ASA
ODH entered into an agreement for the potential purchase of 1% + 1 Share of Andermatt Swiss Alps
➢ ODH entered into an agreement with Samih O. Sawiris (SOS); largestshareholder of ASA, valid for 2 years for the potential purchase of 1% plus1 share of ASA.
➢ Condition precedent; In line with ODH’s strategy of enhancing its balancesheet and also to enhance ASA’s equity position, prior to the execution ofthe agreement, SOS would need to forgive CHF 150 million in debt thatASA currently owes him.
➢ ODH management will work closely with ASA Board and ManagementTeam over the coming period.
➢ IFA was done for ASA with an equity value of CHF 320 million – purchaseprice set at CHF 3.2 million, based on current market value.
➢ ASA is now poised on the right track of scalability which can be witnessedfrom its operational KPIs.
➢ ODH’s revenues will increase and the Group will further diversify itsportfolio.
Reasoning:
ODH: Leading Developer of Fully Integrated Towns
Strategy Update
Outlook
Agenda
Outlook 2018/2019
El Gouna, Egypt:
▪ Targeting real estate sales of CHF 112 million in 2018 vs. CHF 79.1 million in 2017 andmaintaining those sales level moving forward.
▪ Planning to increase the Hotels’ room rates by 10 – 15 % in 2019.
▪ Signed an agreement with Thomas Cook to develop a new 100 rooms luxury beachfronthotel “Casa Cook El Gouna”. The deal also includes rebranding Arena Inn Hotel, El Gouna's144-room to become a Cook's Club Hotel.
Makadi Heights, Egypt:
▪ Targeting real estate sales of CHF 16.4 million in 2018 vs CHF 0.5 million in 2017 and aimingto sustain this growth momentum in 2019.
O-West, Egypt:
▪ In mid-December we held the pre-launch of Phase 1 of the project and the level ofcustomer demand has been very positive exceeding our expectations.
Hawana Salalah, Oman:
▪ Finalized the construction and opened the 177 new rooms in Al Fanar Hotel & Residence,bringing the total number of rooms to 577.
▪ Targeting to increase real estate sales by 10% - 15% in 2018 vs. CHF 16.5 million in FY 2017.
Jebal Sifah, Oman:
▪ Targeting to increase real estate sales by 50% - 55% in 2018 vs. CHF 11.8 million in FY 2017.
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Outlook 2018/2019 Cont’
Luštica Bay, Montenegro:
▪ Opened the first hotel in the destination the “Chedi Luštica Bay” with 111 rooms,occupancy reached 50% to date. Also opened phase one of the main marina with 52 berthsand also the 1,000 sqm retail area.
▪ Real estate sales is expected to double in 2018 vs. the CHF 17.2 million in 2017.
Andermatt, Switzerland:
▪ In mid-December we opened the Radisson Blu Hotel with 180 rooms and the GotthardResidences.
▪ The Oberalppass-Schneehüenerstock Gondola cableway has been installed as the final stepof the link between the Andermatt and Sedrun ski areas.
▪ Opened the Piazza Gottardo, a commercial area with 21 shops, restaurants and cafés.
▪ A 700 seat concert Hall is scheduled to open in 2019.
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Thank You
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Disclaimer
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THIS DOCUMENT IS DIRECTED ONLY AT PERSONS (i) WHO ARE OUTSIDE THE UNITED KINGDOM OR (ii) WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TOINVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (AS AMENDED) (THE "ORDER") OR(iii) WHO FALL WITHIN ARTICLE 49(2)(a) TO (e) ("HIGH NET WORTH COMPANIES, UNICORPORATED ASSOCIATIONS ETC.) OF THE ORDER (ALL SUCH PERSONS TOGETHER BEINGREFERRED TO AS "RELEVANT PERSONS"). ANY PERSON WHO IS NOT A RELEVANT PERSON MUST NOT ACT OR RELY ON THIS COMMUNICATION OR ANY OF ITS CONTENTS. ANYINVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS COMMUNICATION RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITHRELEVANT PERSONS.
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RoundingNumbers presented throughout this presentation may not add up precisely to the totals provided in the tables and text. For presentation purposes, figures are rounded to the nearest decimal place. Percentages, percent changes and absolute variances, however, are calculated based on the exact figures as shown in the financial statements.
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