Orascom Development Holding AG

EQS-Adhoc: Orascom Development Holding AG: Gives Guidance with Strong Preliminary Results for FY 2014, and Reports FY 2014 Results for its Egyptian Largest Subsidiary; Orascom Hotels and Development (OHD)

EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s):
Orascom Development Holding AG: Gives Guidance with Strong Preliminary
Results for FY 2014, and Reports FY 2014 Results for its Egyptian
Largest Subsidiary; Orascom Hotels and Development (OHD)

30.03.2015 / 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR.
The issuer is solely responsible for the content of this announcement.


Press Release

Orascom Development Holding (ODH) Gives Guidance with Strong Preliminary
Results for FY 2014, and Reports FY 2014 Results for its Egyptian Largest
Subsidiary; Orascom Hotels and Development (OHD)

Orascom Development Holding witnessed a positive year with an increase in
both top & bottom line results. Revenues are expected to grow by 10-15%
compared to FY 2013 and net profit attributable to the owners of the parent
company is also expected to substantially increase to be within the range
of CHF 37 to 42 million. The full-fledged 2014 financial results &
statements will be published as announced on the 14th of April and the
Annual Report on the 23rd of April.

We have attached below Orascom Hotels and Development (OHD)'s FY 2014
earnings release as reported on the Egyptian Stock Exchange.

Orascom Hotels and Development (OHD) FY 2014 Earnings Release:

In the full year 2014, Orascom Hotels and Development (OHD); the largest
Egyptian subsidiary of Orascom Development Holding (ODH) reports a
significant turn-around in its net profits, generating EGP 100.0 million
attributable to shareholders of the company after a loss of EGP 553.1
million in FY 2013.  The enhanced operational performance from all business
segments, accompanied by the sound execution of our cost savings program
and the accelerated monetization of our land, have boosted the EBITDA
margins to reach 39.2%,  value of  EGP 562.1 million (FY 2013: EGP (32.7)

Cairo, 30 March 2015 - Orascom Hotels and Development (OHD) revenues
increased by 20.1% to EGP 1,434.6 million (FY 2013: EGP 1,194.8 million),
on the back of strong real estate & construction revenues, increased hotel
occupancy rates during the second half of the year and the increased land
revenues resulting from the successful third-party development agreement
between OHD and El Sewedy to sub-develop a piece of land in El Gouna. The
recognized parcel of land from the agreement contributed EGP 85.0 million
to the topline growth during the FY 2014. The EBITDA for the period was EGP
562.1 million vs EGP (32.7) million during FY 2013, solidifying the solid
execution of OHD's communicated savings & growth strategy.

Revenues in Real Estate & Construction segment more than doubled, recording
an increase of 110% vs the prior year.

Revenues in the Real Estate & Construction segment significantly increased
to EGP 441.9 million
(FY 2013: EGP 210.4 million), equivalent to 31% of OHD's revenues. The
increase is mainly a result of the accelerated delivery of real estate
units in Egypt (El Gouna, Ancient Sands and Makadi), a total of 689 units
were delivered in FY 2014. The accelerated delivery marks the healthy
construction momentum of the Group, which we are planning to maintain over
the coming years.

The segment EBITDA increased to EGP 147.8 million (FY 2013: EGP (29.9)
million). Contracted real estate sales, after adjusting for the exclusion
of the budget housing segment, increased by 45% to EGP 400.0 million (FY
2013: EGP 275.6 million), driven by the strong sales momentum in El Gouna &
Ancient Sands.

Hotels occupancy rate recovered to strong levels during the 2H 2014.

Despite the severe challenges that the hotel segement had encountred during
the first half of 2014, with the imposed travel bans in addition to the
noticeable decrease in airlift capacities, still the segment showed a
significant rebound during the second half of 2014 , after the travel bans
were lifted on the Red Sea area. Occupancy rates for the 2H 2014 reached
60% compared to 39% in 2H 2013 and the TRevPAR (Total Revenues per
Available Room) increased by 40% to EGP 339 compared to EGP 243 over the
same periond, taking into consideration that the full capacity of our
hotels was not materilazed because of the continued travel bans on the
Sinai Peninsula area and the heavy floods that hit Taba in May 2014,
resulting in a complete shut down of our hotels. To date, we were able to
re-open four of our hotels in Taba Heights , yet 25% of Taba's inventory
remained closed for renovation post the floods through December 2014.

The average occupancy rate for FY 2014 reached 49% (FY 2013: 48%) , TRevPAR
(Total Revenues per Available Room) reached EGP 271  (FY 2013: EGP 306) and
the Average Room Rate (ARR) reached EGP 320 (FY 2013: 357). Nonetheless,
the incorporation of Orascom Hotel Management (OHM) , Orascom Development
Holding's hotel asset management subsidiary in early 2014 ,along with its
profound implementation of the cost-control and optimization startegies,
limited the magnitude of the onogoing  challenges to only 16% decrease in
total revenues declining from EGP 646.3 million in FY 2013 to EGP 543.0
million in FY 2014.  EBITDA reached EGP 140.4  million in FY 2014 compared
to EGP 84.0 million in FY 2013. At the end of the reporting period, OHD
Group added 283 new rooms to its hotel portfolio by the opening of Makadi
Gardens Azur, four-star hotel in Makadi, to operate a total of 6,036 hotel
rooms compared to 5,752 rooms in FY 2013

Accelerated monetization initiatives, coupled with sound cost savings
implementation, helped in boosting Gross Operating Profit to reach EGP
236.3 million (FY 2013: EGP 77.7 million).

Management has recently adopted the new strategic notion of bringing third
party developers in a move to accelerate the monetization of land, while
providing strict development guidelines, to ensure control over the
development and maintain the architectural harmony of the destination.
Under this notion, OHD has successfuly entered into an agreement with El
Sewedy; an Egyptian Investor to sub-develop a piece of land in El Gouna.
This transaction has contributed EGP 84.5 million to the total EBITDA
during FY 2014. The company is targeting one transaction per year of this
amount over the coming 3 to 5 years.

The company has also successfully closed the share sale of CMAR, the
holding company of the Club Med hotel in Mauritius with gross proceeds
amounting to EGP 83.0 million.

Generic cost savings in addition to the carve-out of the budget housing
operations and the construction segment, in Egypt in June 2014, contributed
positively to the company's cost savings program. As of December 2014,
Orascom Hotels and Development has achieved total overheads savings of EGP
89.1 million compared to the cost base FY 2013.

Outlook for FY 2015

Based on the recovery of the Egyptian economy and the increased demand on
the investment opportunities in Egypt, Orascom Development Holding (ODH)
sold 15% of Orascom Hotels and Development (OHD) reactivating its trading
back on the Egyptian Stock Exchange on the 6th of January 2015. The gross
proceeds of the sale amounted to EGP 506.1 million which was re-injected
into OHD to support its ongoing operations and deleverage its balance

Following through with its deleveraging strategy, OHD managed to ramp up
considerable cash reserves to the tune of EGP 800m. These funds were mainly
accumulated through: (1) the re-activation of OHD shares on the Egyptian
stock exchange (2) the sale of a 12.5% shareholding stake in CMAR, the
owner of Club Med in Mauritius. The aforementioned funds are earmarked to
negotiate an optimum debt refinancing package with all of OHD's lenders
taking into account grace period, pricing, tenor and currency mix. All of
which would result in a healthy balance sheet to continue fueling long term

In light of the favorable market environment, our emphasis going forward
will be on generating business opportunities to capitalize on the company's
portfolio of hotels, real estate projects & land bank. In terms of real
estate, we are targeting sales of USD 75 million (EGP: 571.8 million) for
FY 2015, we are working on achieving this figure through the rapid roll-out
of new projects and the continued diversification of our product range and
client base. In March 2015, we held the pre-launch event for Joubal
Lagoons, a new real estate neighborhood project featuring villas,
townhouses and apartments, due to hold its official launch in April 2015.
We are also finalizing the master plan of another new real estate
mix-inventory project to be launched later during 4Q 2015.

2015 started out positively for the hotels segment, with January and
February occupancy rates in El Gouna, reaching 60 % vs. 45% over the same
period in 2013. We will continue to progress on OHM's successfully proven
strategy, and are already finding new routes to increase our occupancy
levels in Taba Heights by providing a ferry trip from Aqaaba airport in
Jordan from our Tala Bay destination to Taba. We are placing all efforts to
assist in the lifting of the travel bans on  Taba specifically and we will
also be adding one hotel in El Gouna, Ancient Sands; a five-star hotel with
56 guestrooms and 120 hotel apartments.

Accelerating the monetization of our land bank is one of our top strategy
pillars moving forward. Under this newly adopted strategy, we will be
targeting sub-development agreements within the value of USD 50 million per
year (EGP 381.3 million) over the coming 3 to 5 years.

Key figures FY 2014

(in EGP million)                               FY 2014   FY 2013   Delta

Total revenues                                 1,434.6   1,194.8   20.1%

Gross Profit                                   236.3     77.7      204.0%

Gross Profit-Margin (%)                        16.4%     6.5%      12.1ppt

Net income / (loss) attributable to OHD        100.0     (553.1)   Nm
shareholders shareholders

Operating cash flow after interest/taxes       247.3     136.3     81.4%

Total assets1                                  7,152.3   8,014.0   -10.8%

Equity ratio (%)1                              34.9%     33.9%     1.0 ppt

Net debt1 & 2                                  2,763.8   3,002.0   -7.9%

EBITDA                                         562.1     (32.7)    Nm

1 For 2013 as per 31 December 2013
2 Includes borrowings and cash of disposal groups

N.B: The full audited financial statements will be available on the 7th of
The associated presentation can be found on Orascom Hotels and
Development's website www.orascomhd.com under the Investor Relations

Telephone conference hosted by CI Capital today at 3:00 pm CLT
A telephone conference for analysts and investors hosted by CI Capital will
be held in English today at 3:00 pm CET. Chairman and CEO Manal Hussein,
CFO Ashraf Nessim and Chief Hotel Officer Abdelhamid Abouyoussef will
present the FY 2014 results and will be available to answer questions. A
registration is not required.

Dial-in details are as follows:
  - Conference ID:   9769411

  - International:   +44 1452 541 003

  - UK Toll Free:   0800 694 5707

  - US Toll Free:   1866 254 0808

  - UAE Toll Free:   8000 3570 3014

A replay of the conference call will be available until 5.00pm GMT on 6
April 2015 with the following dial in details:
  - Access Code:   9769411

  - International Replay #:  +44 1452 550 000

  - USA Toll Free Replay#:  1866 247 42 22

About Orascom Hotels and Development (OHD)
Orascom Hotels and Development is an integrated developer of resort towns
in Egypt, with a vertically-integrated business model involving the
development of residential units, hotels, and recreational facilities such
as golf courses, town centers, and marinas, in addition to supporting
infrastructure, such as hospitals, schools, and utilities. OHD currently
owns a land bank of 49.4 million square meter and 24 hotels with a total of
6,039 rooms within three operating destinations. El Gouna, on the Egyptian
Red Sea Coast in Hurghada, Taba Heights, on the Sinai Peninsula and Makadi
in Hurghada. OHD also holds an 87% stake in Tamweel, a financial services
company providing mortgage, leasing, and insurance, among other services.

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

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


30.03.2015 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.


Language:    English
Company:     Orascom Development Holding AG
             Gotthardstraße 12
             6460 Altdorf
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
338969 30.03.2015

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