Earnings Presentation Template
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Orascom Development Holding AG January 2016 Agenda ODH: Leading Developer of Fully Integrated Towns Page 3 Projects Overview Page 10 Page 22 Operational and Financial Summary Page 21 Appendices Page 37 2 ODH : Leading Developer of Fully Integrated Towns 3 History- How it all started Over 20 years ago, Orascom Development’s founder Samih O. Sawiris had a simple idea – to create a little piece of paradise on the exquisitely desolate Red Sea coast. This initial thought evolved over the years and became our principle. ODH sells 15% The Cove in Ras Al Project announcement New projects in Samih O. Sawiris becomes stake in OHD to Development Khaimah (U.A.E.) the of Haram City (Egypt), Cornwall (UK) & Luštica majority shareholder of ASA; reactivate its of Taba first destination Jebel Sifah & Salalah Bay (Montenegro) & sale of Romania project to trading, Heights on the outside of Egypt, a Beach (Oman); signing launch of Makadi Bay, Samih O. Sawiris & Orascom resumption of Year of Gulf of Aqaba lease agreement of agreements for 28 km away from Hotel Management (OHM) trading Foundation (Sinai with the Gov. to Andermatt (CH) & Hurghada was established to manage effective 6th Peninsula) develop Amoun Chbika (Morocco) the Group’s Hotel inventory January 2015 & Island, 22,000 m2 Sale of Tala Bay hotel in Jordan 1989 1997 2005 2007 2009 2013 2015 1991 1998 2006 2008 2010 2014 Agreement to Established ODH, Initiation of affordable Orascom signs First phase of participate in the acquired 99.7% of OHD housing project in Deconsolidation of Orascom development El Gouna flagship development of through a tender offer Constanta (Romania) & Housing Communities agreements with project becomes Tala Bay, Jordan Headquarter is moved Allocated 0.8 million m2 in (OHC)& its subsidiaries; the Omani operational & Awarded 1.2 to Altdorf (CH), listing the Qena Governorate , the budget housing and Government for million sqm in on the SIX Swiss second budget housing construction & Sale of four projects Fayoum, Egypt Exchange project in Egypt CMAR (Mauritius Club Med) EGYPT INTERNATIONAL EXPANSION So far, we have successfully implemented this concept in Egypt, Jordan, UAE, Oman, Switzerland and in other projects under development in Europe 4 Orascom Development Holding AG Today The Only Leading Developer of Fully One of The Largest Land One of The Largest Hotels Integrated Towns Banks Portfolio Including Real Estate, Hotels. activities, marinas 100.2 million sqm, out of which 68.4 32 hotels with 7,759 rooms Leisure, golf courses, hospitals , schools & all million sqm is still undeveloped supporting infrastructure Loyal Shareholder Spearheaded by a seasoned Executive Base Management Team Been with the company for over 6 years with unparalleled expertise in the travel , tourism and real estate sector level 79% MORE THAN Of our hotels in Egypt are certified with 3 to 5 49 Green Star Star Hotels Awards To suit different During 2014 for our Over 25 standards hotels in Egypt, Jordan 9 Operating Destinations & Oman YEARS El Gouna, Taba Heights, Makadi, & DEVELOPMENT Haram City (Egypt) , Jebel Sifah & Salah Continuous Progress on Strategy Beach (Oman), The Cove (UAE), EXPERIENCE Andermatt (Switzerland) & Lustica Bay Execution (Montenegro) Achieved all communicated targets of 2015 Other destinations in different stages of development Dual listing on SIX and EGX Approx. 8,773 Employees with 40,409,926 outstanding shares As of November 30th, 2015 Real Estate Sales of CHF 2.05 Bn 72.6% owned by Samih Sawiris Since 1997 5 ODH’s Projects at a Glance Land Bank (mn sqm) Hospitality Portfolio Under Under ODH Blended Rooms Operated by Hotel Blended Total Land Bank Completed Undeveloped Number of Rooms Construction2 Development3 Ownership % ODH Ownership % 10 El Gouna El Gouna El Gouna El Gouna 36.92 El Gouna 8.96 5.48 1.2 21.28 84.7% El Gouna 2,627 El Gouna 1,279 87.0% Taba Heights Taba Heights Taba Heights Taba Heights 4.27 Taba Heights 2.56 0.0 0.02 1.69 83.8% Taba Heights 2,365 Taba Heights 1,538 71.0% Makadi Makadi Makadi 3.39 Makadi 4 Makadi 0.47 0.0018 63.1% Makadi 7 Makadi 67.0% - 2.92 1,6541,144 1,113 Haram City Haram City Haram City 2.6 Haram City 1.93 0.17 0.32 Haram City 0.18 35.3% Haram City Haram City - Egypt Fayoum Fayoum 1.08 Fayoum Fayoum 57.0% Fayoum 0.25 0.07 0.08 Fayoum 0.69 Fayoum - Chbika Qena… Qena Gardens - 0.8 Qena Gardens Qena Gardens 35.3% Qena Gardens Qena Gardens -0.0 - Qena Gardens 0.8 - - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 -- 0.2 0.5 0.4 0.6 1.0 0.8 1.5 1.0 2.0 2.5 3.0 3.5 4.0 - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 - 0.5 1.0 0 100 200 300 400 500 600 700 (1.0) 4.0 9.0 14.0 19.0 24.0 0 500 1,000 1,500 2,000 2,500 3,000 1 Salalah Beach 71.0% Salalah Beach Salalah Beach Salalah Beach Salalah Beach Salalah Beach 13.6 0.9 Salalah Beach 0.2 1.5 11.0 70.0% 700 300 1 Jebel Sifah Jebel Sifah Jebel Sifah Jebel Sifah Jebel Sifah Jebel Sifah 6.2 0.2 Jebel Sifah - 1.5 4.5 70.0% 67 67 70.0% 2 As Sodah Island As Sodah Island As Sodah Island As Sodah Island As Sodah Island Oman As Sodah… 1.0 - As Sodah Island - 0.8 0.2 49.0% - - 1 City Walk City Walk City Walk City Walk City Walk City Walk 0.1 - City Walk - - 0.1 70.0% - - - 0.5 1.0 - 5.0 10.0 15.0 20.0 - 0.5 1.0 1.5 2.0 - 5.0 10.0 15.0 0 200 400 600 0 50 100 - 0.5 Chbika Chbika Chbika Chbika Chbika Chbika 15.0 - Chbika - 3.0 12.0 55.0% - - Morocco - 5.0 10.0 15.0 20.0 - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 - 5.0 10.0 15.0 0 0 0 1 1 1 0 0.2 0.4 0.6 0.8 1 0.0 0.2 0.4 0.6 0.8 1.0 - 0.2 0.4 0.6 0.8 1.0 3 Luš tica Luštica 6.9 Luštica 0.02 0.1 Luštica 0.3 Luštica 6.48 90.9% Luštica - Luštica - Montenegro - 2.0 4.0 6.0 8.0 - 0.5 - 5.0 10.0 0 0 0 1 1 1 0 0.2 0.4 0.6 0.8 1 0.0 0.2 0.4 0.6 0.8 1.0 - 0.1 0.1 0.2 Andermatt Andermatt Andermatt Andermatt 1.5 Andermatt 1.3 Andermatt - 0.1 0.1 49.0% Andermatt 100 - 49.0% Switzerland 0.0 5.0 0.0 0.2 0.0 0.5 0 0.2 0.4 0.6 0.8 1 8 - 1.0 2.0 - 0.2 0.4 0.6 0.8 1.0 0 100 200 Eco-Bos Luštica Andermatt Andermatt Eco-Bos 75.0% Eco-Bos 6.54 - - Eco-Bos - 6.54 - - UK - 5.0 10.0 0.0 0.2 0.4 0.6 0.8 1.0 - 5.0 10.0 0 0 0 1 1 1 0 0.2 0.4 0.6 0.8 1 - 0.2 0.4 0.6 0.8 1.0 0.0 0.2 0.4 0.6 0.8 1.0 4 73.0% The Cove Marina Plaza 73.0% The Cove The Cove The Cove 0.3 The Cove 0.3 The Cove - - - 346 - UAE 0.0 0.2 0.4 0.6 0.8 1.0 0.0 0.2 0.4 0.6 0.8 1.0 0 200 400 0 0.2 0.4 0.6 0.8 1 0.0 1.0 2.0 3.0 4.0 0.0 0.5 1.0 0.0 0.2 0.4 0.6 0.8 1.0 100.22 16.89 6.02 8.82 68.49 7,759 9 4,297 1 Leasehold agreement 2 Usufruct Agreement 3 Leasing and Development Agreement 4 Lease Agreement 5 Any plot of land where infrastructure is completed and individual elements of the projects are under construction 6 Any plot of land where infrastructure is under construction but not yet completed 7 283 rooms are located in Makadi Project, while the 1,344 rooms are located within the Makadi Bay and 27 of Oberoi Zahra is a floating hotel on the Nile 8 American call option (ending 2030) granting ODH the right to purchase part or all of the land plot. The company has donated 0.06 sqm of total land to the Cornwell council in 2014 to build a road 9 Total excludes 100 rooms in Switzerland as it is not consolidated 6 10 ODH Blended ownership (%) in the Hospitality Portfolio is calculated based on the Group’s weighted average stake of the hotels’ paid in capital in each destination The Company Adopts a Unique, Vertically Integrated, Business Model Centered on Transforming Desolate Pieces of Land into Attractive, Self-sufficient, Resort Towns Operational Development Phase . ODH’s business model Phase incorporates owning and managing the whole value chain from the raw land Real Estate Owner acquisition to developing & Real Estate Services operating real estate, hotels, and managing the destination: – Securing land at nominal Hotel Development Hotel Operations costs – Control of entire value New chain from master destination planning and identification Destination construction to operation acquisition & Destination Development Operations of a destination initial – Continuous pre-sales to concept finance ongoing Controlled Sale of investments Sub-development Large Plots of Land to Third Party .