Tuesday, 04 April 2017

Adhoc News

EQS-Adhoc: Orascom Development Holding AG FY 2016 Results Guidance

EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s):
Orascom Development Holding AG FY 2016 Results Guidance

04-Apr-2017 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR

Press Release: Orascom Development Holding FY 2016 Results Guidance

In 2016, the Group witnessed enhanced operational performance from the Real
Estate and Hotels business segments across El Gouna, Oman and Montenegro.
Total revenues are expected to be in the range of CHF 235-240 million.
However, the significant devaluation of the Egyptian pound following the
floatation of the currency in November 2016 had a significant non-cash
impact on Orascom Development Holding's income statement that is calculated
in Swiss Francs.

The Group's Egyptian subsidiary has debt primarily denominated in US Dollars
and Egyptian Pounds. The devaluation of the Egyptian pound against the
dollar from 8.88 to 18.0 in late 2016 resulted in substantial revaluations
of the debt held in US Dollars at the subsidiary and subsequently led to a
non-cash foreign exchange loss on the Group level of approximately CHF 125.0
million. The total currency-related non-cash impact on the Groups income
statement is expected to be approximately CHF 157.0 million, which
constitutes the majority of the expected net loss attributable to the
shareholders in the range of CHF 195-205 million for FY 2016.

Altdorf/Cairo, 4 April 2017 - In line with the strategic decision of being
selective with land sales moving forward, the Group did not pursue any land
sales in 2016. Accordingly, Orascom Development Holding expects to report
revenues of CHF 235-240 million, a 21-23% decrease in its consolidated
revenues for FY 2016 compared to the previous year which included land sales
revenues of CHF 65.2 million. The two main business segments of the Group
(Hotels and Real Estate) recorded better operational results than in the
previous year.

The decision taken by the Central Bank of Egypt in November 2016 to float
the Egyptian pound in an attempt to stabilize the economy has had a
significant impact on a lot of companies that operate in Egypt including the
Group. The 102.7% appreciation of the U.S. Dollar against the EGP from 8.88
to 18.0 resulted in substantial revaluations of the debt held in US Dollars
at the subsidiary and subsequently negatively impacted the Groups profit and
loss statement with a non-cash foreign exchange loss of approximately CHF
125.0 million. Further, the Group's results were also impacted by
impairments in the amount of approximately CHF 32.0 million after the
floatation of the Egyptian Pound. As a result, Orascom Development Holding
expects to report a net loss attributable to the shareholders in the range
of CHF 195-205 million for FY 2016. On the other hand, total debt of the
Egyptian Subsidiary on the balance sheet of the Group has decreased by 24%
from CHF 414.7 million to CHF 315.2 million.

Real Estate Segment

The Group's total net sales increased by 100% to reach CHF 115.2 million vs.
CHF 57.3 million in FY 2015. Orascom Development Holding was able to
successfully exceed the real estate sales targets of the year across El
Gouna, Sifah and Luštica Bay.

Hotels Segment

The Gulf hotels in Oman and UAE witnessed a notable boost in their
performance recording a 57.6% increase in GOP growing from CHF 12.7 million
to CHF 20.0 million in FY 2016. In Egypt, despite the severe decline in the
country's tourism, El Gouna, continued to benefit from its safe haven and
has been outperforming the market, resulting in a 14% GOP growth in FY 2016
from last year.

Financial note

It is important to note that when results are normalized for land sales, FX
and impairments in both comparative periods, the Adjusted EBITDA would have
reached approximately CHF 19.6 million compared to CHF 15.6 million in FY

The financial information contained in this press release are based on the
current assumptions and expectations of the company. They have not yet been
audited and are subject to change. The full-fledged FY 2016 audited
financial results and statements will be published as announced on the 11th
of April, 2017. Management will also hold the earnings conference call on
the same day at 4:00 pm CEST.

About Orascom Development Holding

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 Salalah Beach in Oman, Luštica Bay in Montenegro 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

Contact for Investors:
Sara El Gawahergy
Head of Investor Relations
Tel: +202 246 18961
Tel: +41 418 74 17 11
Email: ir@orascomdh.com

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

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'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's results of operations
and on whether Orascom Development Holding will achieve its targets. Orascom
Development Holding 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

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: SIX Swiss Exchange

End of Announcement EQS Group News Service

561529 04-Apr-2017 CET/CEST