Orascom Development Holding AG

DGAP-Adhoc: Orascom Development Holding AG: 9M 2014: Orascom Development records a net profit of CHF 36.4 mn, with a strong performance from its operating segments in Q3 2014

EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s):
9-month figures/9-month figures
Orascom Development Holding AG: 9M 2014: Orascom Development records a
net profit of CHF 36.4 mn, with a strong performance from its
operating segments in Q3 2014

25.11.2014 / 07:00
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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Press Release

9M 2014: Orascom Development records a net profit of CHF 36.4 mn, with a
strong performance from its operating segments in Q3 2014

In the first nine months of 2014 Orascom Development generated a net profit
of CHF 36.4 million attributable to shareholders of the company after a
loss of CHF 75.8 million in the comparable period. Improved Real Estate &
Construction revenues, accompanied by a strong recovery of the hotel
segment in the third quarter and the carve-out of the budget housing
operations and construction segment in Egypt were among the key drivers of
the results.

Altdorf/Cairo, 25 November 2014 - Orascom Development Holding AG's (Orascom
Development) revenues increased by 12.1% to CHF 184.6 million (9M 2013: CHF
164.7 million), as strong Real Estate & Construction revenues and increased
hotel occupancy rates during the third quarter compensated for a weaker
hotel performance in the first half of the year. In September 2014, Orascom
Hotels and Development, The Group's Egyptian subsidiary   successfully
entered into a real estate agreement with a third-party investor to
sub-develop a piece of land in El-Gouna. Red Sea Construction Company; the
Group's affiliate will construct the project. This agreement contributed
positively to the topline growth (CHF 11.5 million). The net profit
attributable to shareholders of the company reached CHF 36.4 million after
a CHF 75.8 million loss in the same period last year. The adjusted EBITDA
for the period was CHF 24.9 million (9M 2013: -4.9 million).

Revenues in Real Estate & Construction segment almost doubled compared to
prior year

Revenues in the Real Estate & Construction segment significantly increased
to CHF 60.9 million
(9M 2013: CHF 32.5 million), equivalent to 33% of Group revenues. The
increase is mainly a result of accelerated delivery of real estate units in
Egypt (El Gouna, Ancient Sands and Makadi) during the first half of 2014.
The adjusted segment EBITDA increased to CHF 19.1 million (9M 2013: CHF
-5.6 million). Contracted real estate sales, after adjusting for the
exclusion of the budget housing segment, increased to CHF 55.0 million (9M
2013: CHF 40.7 million), driven by continued strong momentum in El Gouna,
pick-up of client demand in Montenegro and the successful closing of a bulk
deal sale (37 units, CHF 8.9 million) in Salalah Beach in the third quarter
2014.

Hotels occupancy rate recovered to a very strong level of 63% during Q3
2014

The hotel segment showed a significant rebound during the third quarter
2014 as travel bans to the Sinai Peninsula and the Red Sea area were
lifted. The average occupancy rate for the summer months reached 63%
compared to only 42% during the first half of 2014. Importantly, all
destinations contributed to this positive result as the Adjusted EBITDA for
Q3 2014 reached CHF 5.2 million vs. CHF 2.2 million in Q3 2013. The full
activation of the cost-control and optimization strategies announced back
in December 2013 supported El Gouna Hotels to mark a 79% flow-through
during Q3 2014 vs. Q3 2013. We were also able to re-open three of our
hotels in Taba Heights , post the floods that occurred in May of this year;
the three hotels are currently operating at their full capacity with an
average occupancy rate of 57%. Salalah Rotana Hotel in Oman started
operating at full capacity in July 2014, with 399 rooms. Much to the
success of Q3, revenues for the first nine months 2014 were still below the
comparable period (9M 2014: CHF 78.9 million, 9M 2013: CHF 96.5 million).
The average occupancy rate for 9M 2014 reached 49% (9M 2013: 52%) and
TRevPAR (Total Revenues per Available Room) reached CHF 43 (9M 2013: CHF
53). The adjusted segment EBITDA amounted to CHF 8.9 million (9M 2013: CHF
21.1 million). At the end of the reporting period, the Group operated 7,382
hotel rooms.

Achieved CHF 30 million of overheads savings compared to FY 2012 cost base

Generic cost savings in addition to the carve-out of the budget housing
operations and the construction segment, in Egypt in June 2014, started to
contribute positively to the Group's cost savings program in the third
quarter of 2014. Due to the reduction of contracted and non-contracted
labor by about 2,500 FTE the quarterly cost run-rate was reduced by about
CHF 2.2 million. As of 30 September 2014 Orascom Development has achieved
total overheads savings of CHF 30 million compared to the cost base FY
2012.

In August 2014, the Group announced the successful share sale of CMAR, the
holding company of the Club Med hotel in Mauritius. The Prime Minister of
Mauritius approved, in principle, the transaction and closing is expected
before year-end.

Subsequent events

Based on the recovery of the Egyptian economy and the increased demand on
the investment opportunities in Egypt, The Group is evaluating the sale of
10-15% of its Egyptian subsidiary; Orascom Hotels and Development (OHD) in
order to reactivate its trading on the Egyptian Stock Exchange. The
proceeds of the sale, if conducted, shall be re-injected into OHD to
support its ongoing operations and deleverage its balance sheet

Outlook for FY 2014

Orascom Development has achieved significant progress in terms of
restructuring its operations and cutting costs.  As of today, the operating
segments have started to positively contribute to the Group's results,
namely the Hotel's segment witnessed a significant increase in terms of
occupancy rates accompanied by an improved flow-through. Additionally, the
Real Estate arm has been witnessing a positive sales momentum with a
significant boost during the third quarter of the year not only in Egypt
but also in Oman and Montenegro.

In light of the more favorable market environment, the focus will
increasingly shift from cost cutting to generating business opportunities
to capitalize on the Group's portfolio of hotels and real estate projects.
Further balance sheet deleveraging remains a key focal point and shall be
the main focus of management in the coming period.

Key figures 9M 2014



(in CHF million)                               9M 2014   9M 2013   Delta

Total revenues                                 184.6     164.7     12.1%

Gross Profit                                   34.7      7.8       344.9%

Gross Profit-Margin (%)                        18.8%     4.7%      14.1ppt

Net income / (loss) attributable to ODH        36.4      (75.8)    nm
shareholders shareholders

Operating cash flow after interest/taxes       (21.8)    (55.5)    60.7%

Total assets1                                  1,736.6   1,672.7   3.8%

Equity ratio (%)1                              47.3%     45.5%     1.8ppt

Net debt1 & 3                                  447.3     398.9     12.1%

Adjusted EBITDA2                               24.9      (4.9)     nm




1 For 2013 as per 31 December 2013
2 EBITDA adjusted for discontinued operations and non-cash items
3 Includes borrowings and cash of disposal groups

Financial statements and presentation
The associated financial statements and presentation can be found on
Orascom Developments' website www.orascomdh.com under the Investor
Relations section.

Telephone conference today at 2:00 pm CET
A telephone conference for analysts and investors will be held in English
today at 2:00 pm CET. CEO Samih O. Sawiris, CFO Eskandar Tooma and Chief
Hotel Officer Abdelhamid Abouyoussef will present the 9M 2014 results and
will be available to answer questions. A registration is not required.

Dial-in details are as follows:
  - Password:   49963823

  - International:   +44 1452 555 566

  - Switzerland Toll Free:  0800 828 006

  - Egypt Toll Free:  0800 000 0318

  - UK Toll Free:   0800 694 0257

  - US Toll Free:   1866 966 9439

A replay of the conference call will be available for one week with the
following dial in details:
  - Access Code:   49963823

  - International Replay #:  +44 1452 550 000

  - UK Local Call Replay #:  08717 000 145

  - USA Toll Free Replay#:  1866 247 42 22

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 eight
jurisdictions (Egypt, UAE, Jordan, Oman, Switzerland, Morocco, Montenegro
and United Kingdom), with a primary focus on touristic destinations. The
Group currently operates seven destinations; three in Egypt El Gouna, Taba
Heights and Makadi, The Cove in United Arab Emirates, Jebel Sifah and
Salalah Beach in Oman and Andermatt in Switzerland. Orascom Development has
a dual listing, with a primary listing on the SIX Swiss Exchange and a
secondary listing on the EGX Egyptian Exchange.


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

Contact Media Relations
media@orascomdh.com

Disclaimer & Cautionary Statement

The information contained in this e-mail, its attachment and in any link to
our website indicated herein is not for use within any country or
jurisdiction or by any persons where such use would constitute a violation
of law. If this applies to you, you are not authorized to access or use any
such information. Certain statements in this e-mail and the attached news
release may be forward-looking statements, including, but not limited to,
statements that are predications of or indicate future events, trends,
plans or objectives. Forward-looking statements include statements
regarding our targeted profit improvement, return on equity targets,
expense reductions, pricing conditions, dividend policy and underwriting
claims improvements. Undue reliance should not be placed on such statements
because, by their nature, they are subject to known and unknown risks and
uncertainties and can be affected by other factors that could cause actual
results and Orascom Development Holding AG's plans and objectives to differ
materially from those expressed or implied in the forward looking
statements (or from past results). Factors such as (i) general economic
conditions and competitive factors, particularly in our key markets; (ii)
performance of financial markets; (iii) levels of interest rates and
currency exchange rates; and (vii) changes in laws and regulations and in
the policies of regulators may have a direct bearing on Orascom Development
Holding AG's results of operations and on whether Orascom Development
Holding AG will achieve its targets. Orascom Development Holding AG
undertakes no obligation to publicly update or revise any of these
forward-looking statements, whether to reflect new information, future
events or circumstances or otherwise. It should further be noted, that past
performance is not a guide to future performance. Please also note that
interim results are not necessarily indicative of the full-year results.
Persons requiring advice should consult an independent adviser.
End of ad hoc announcement

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25.11.2014 News transmitted by EQS Schweiz AG. www.eqs.com - news
archive: http://switzerland.eqs.com/de/News

The issuer is responsible for the contents of the release.

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Language:    English
Company:     Orascom Development Holding AG
             Gotthardstraße 12
             6460 Altdorf
             Switzerland
Phone:       +41 41 874 17 17
Fax:         +41 41 874 17 07
E-mail:   ir@orascomdh.com
Internet: www.orascomdh.com
ISIN:        CH0038285679
Valor:       A0NJ37
Listed:      Foreign Exchange(s) SIX


End of News    EQS Group News-Service
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299065 25.11.2014
 

 


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