Tuesday, 11 April 2017

Adhoc News

EQS-Adhoc: Orascom Development Holding AG: Enhanced operational performance across all destinations yet bottom line results were impacted by FX losses derived from its Egyptian largest subsidiary Orascom Hotels & Development (OHD) after the Central Bank of Egypt's (CBE) decision to float the Egyptian pound (EGP)

EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s): Final
Results/Final Results
Orascom Development Holding AG: Enhanced operational performance across all
destinations yet bottom line results were impacted by FX losses derived from
its Egyptian largest subsidiary Orascom Hotels & Development (OHD) after the
Central Bank of Egypt's (CBE) decision to float the Egyptian pound (EGP)

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

* Revenues reached CHF 237.4 million vs. CHF 306.1 million in FY 2015

* Significant increase in Oman and UAE's hotels performance

* A 101% increase in net real estate sales to reach CHF 115.2 million vs.
CHF 57.3 million in FY 2015

* Non-cash loss of CHF 146.1 million impacting the Group's P&L post
Central Bank of Egypt's decision to float the Egyptian pound

Altdorf, 11 April 2017 - During 2016, Orascom Development Holding (ODH) was
challenged by several periods of volatility and turbulences. Results were
further impacted by the political and economic backdrop in Egypt especially
after the CBE's decision to float the EGP. Nonetheless, the Group was able
to enhance operational performance across all its destinations, especially
in Oman and Montenegro. In line with the strategic decision of being
selective with land sales moving forward, the Group did not pursue any land
sales in 2016. Total revenues of the Group reached CHF 237.4 million vs. CHF
306.1 million in FY 2015, which included CHF 65.2 million of land sales

The decision taken by the CBE 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 P&L statement with a
non-cash foreign exchange loss of CHF 113.2 million. On the other hand,
total debt of the Egyptian subsidiary on ODH's balance sheet decreased by
24% from CHF 414.7 million to CHF 315.2 million. It is important to note
that the Group's hotels and real estate income is mostly in foreign currency
and therefore ODH borrows also in USD and benefits from a lower interest
rate. Results were further impacted by impairments in the amount of CHF 32.9
million. Gross profit reached CHF 11.3 million and the net loss attributable
to shareholders for the reporting period amounted to CHF 196.4 million vs. a
net loss of CHF 19.1 million in FY 2015.

On the positive side, Adjusted EBITDA for the period reached CHF 19.6
million. When results are normalized for land sales in the comparative
period the Adjusted EBITDA would have reached only CHF 15.6 million in FY

New destination based structure

Throughout the first half of 2016, important positions within the
organization have been changed and filled on the executive and top
management level. After a strategic review, it was decided that the
Company's medium to long term strategy will be streamlined in three areas:
1) Establishment of enhanced business practices, 2) Strengthening of ODH's
balance sheet, and 3) Repositioning and enhancement of ODH's brand.

ODH started working on re-organizing the current segment structure to a
destination based structure. Each destination will become a separately
managed entity headed by its own CEO or General Manager, giving more
authority and responsibility to a destination with the goal of increased
operational efficiency and shorter decision-making processes. The model is
already implemented in Fayoum and Taba.

ODH will continue to capitalize on the core asset of the Group; its land
bank and the value that it pertains through the following approaches; its
own developments, sub-development of certain projects that will add value to
the destination and also by providing the market with an independent fair
value of the undeveloped land bank by an external valuator.

The Group is also divesting some of its non-core assets and using the
proceeds to further reduce its outstanding debt. In parallel, ODH is
examining the revaluation of some of the mature assets that have been booked
at cost so far and thus are not representing their higher market values.

Gulf hotels are on the rise and hotels in El Gouna continue to be the best
in the market

The Gulf hotels in Oman and UAE witnessed a notable boost in their
performance recording a 57.5% increase in GOP growing from CHF 12.7 million
to CHF 20.0 million in FY 2016. Their contribution to the total segment
revenues continued to increase to reach CHF 59.3 million out of a total
segment revenue of CHF 120.2 million. Demand on our hotels in Salalah, Oman
continued to be acknowledged also in the latest ITB Berlin conference. We
added 84 new rooms in Al Fanar hotel during December 2016 bringing the total
room count to 302. The Salalah destination has been recently branded to
"Hawana Salalah" and its hotels alone recorded a 28% increase in occupancies
growing from 54% to 69% and a 166.7% increase in GOP. Similarly, in UAE, The
Cove Rotana continued its positive momentum with an increase in occupancy
rate to reach 78% in FY 2016 vs. 70% in FY 2015.

In Egypt, the severe decline in the country's tourism sector continued to
affect the segment's performance. Tourist arrivals fell by 41.9% in FY 2016
compared to same period last year. El Gouna, Egypt however, with its strong
positioning and strong ties with leading European tour operators, continued
to be the best performer on the market and recorded a 15.4% GOP growth from
FY 2015.

Demand started to pick up in Taba Heights, Egypt despite of the extended
travel bans on Sinai, due to aggressive marketing campaigns implemented in
Jordan and on the local Egyptian markets. In January 2017, 100 rooms in the
El Wekala Golf Resorts out of the hotels existing 215 rooms were reopened.
To date, we have a total of 818 operating rooms in Taba Heights out of 2,365
rooms compared to only 442 rooms operating in 2015. We are also planning to
open more rooms in the coming months.

A 3-year lease agreement with FTI Group for 3 of the Group's hotels in
Makadi for a total of EUR 3.3 million was signed. In Fayoum, the Byoum
Lakeside Hotel was successfully opened in September 2016 with 50 rooms
recording an occupancy of 43% during FY 2016.

Overall, total hotel segment revenues decreased by only 3.2% to reach CHF
120.2 million in FY 2016 vs. to CHF 124.2 million in FY 2015 while the
Adjusted EBITDA recorded a 12.2% increase from CHF 18.1 million in FY 2015
to CHF 20.3 million in FY 2016.

Net contracted sales increased by 101% to CHF 115.2 million with more
contributions coming from El Gouna, Sifah and Luštica Bay

The real estate sales target for the year was exceeded with total net sales
value reaching CHF 115.2 million vs. CHF 57.3 million in 2015. El Gouna
remained the Group's most important sales contributor recording a net sales
value of CHF 80.6 million in FY 2016 vs. CHF 61.1 million in FY 2015 on the
back of targeted sales and marketing activities.

In Jebel Sifah, Oman, a new real estate project called "Golf Lake Residence"
was launched in November 2016 with a total inventory of CHF 19.3 million and
comprising 118 apartments overlooking the golf course. ODH managed to sell
more than 80% of the total project by February 2017. Total net sales in Oman
reached CHF 16.2 million in FY 2016.

Interest in Luštica Bay, Montenegro has continued to flourish. Net sales
reached CHF 17.3 million in FY 2016 compared to CHF 9.1 million in FY 2015.
The Group is progressing with the construction of the new buildings
comprising 88 apartments with plans to be delivered during the first half of
2017. Further, the marina superstructure was finalized.

Total real estate revenues reached CHF 65.4 million in FY 2016 vs. CHF 66.4
million in FY 2015. Total deferred revenue from real estate that is yet to
be recognized until 2019 reached CHF 133.3 million in FY 2016 compared to
CHF 143.0 million in FY 2015.

Outlook for FY 2017

Real Estate

In El Gouna, ODH is building on the strong base and momentum of last year's
offerings and plans to launch new phases of Tawila and Fanadir Bay with an
expected inventory of USD 40.0 million. In Fayoum, new products with a total
inventory of CHF 3.4 million in Q2 2017 will be launched. In Oman, two new
launches in Sifah and Hawana Salalah are planned and we will continue with
the construction of the water park project in Hawana Salalah.


In El Gouna, some renovation works across the hotels are planned to further
upgrade the destination's positioning. With demand recently picking up in
Taba Heights, opening additional rooms is being considered. In Montenegro,
construction of the 5-star Chedi Hotel in Luštica Bay is expected to start
during the first half of 2017, with plans to be opened in July 2018. In UAE,
we finalized the construction of The Cove Rotana extension, adding 145 rooms
to open during 2017.


The Group will continue with the implementation of the new destination based
structure and put emphasis on further efficiency improvements.

The associated financial statements and presentation can be found on Orascom
Developments' website
https://www.orascomdh.com/en/investor-relations/financial-reports.html under
the Investor Relations section.
Telephone conference today at 4:00 pm CET/CLT (Zurich and Cairo Time)
Orascom Development invites you to its FY 2016 results conference call on 11
April 2017 at 4:00 pm CET/CLT (Zurich and Cairo Time). The call will include
an address from the Chairman Samih Sawiris, a presentation from the CEO
Khaled Bichara and the CFO Ashraf Nessim, followed by a Q&A session. A
registration is not required.

* Conference password: 94028741

* International: +44 (0) 1452 555 566

* Switzerland Toll Free: 0800 828 006

* Switzerland Local Number: 0315 800 059

* 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 two weeks with the
following dial in details:

* Access Code: # 94028741

* International: +44 (0) 1452 55 00 00

* UK National: 08717000145

* US Toll Free: 1866 247 4222

* Available until 25 April 2017

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 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 Hawana Salalah 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: +20 224 61 89 61
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 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

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

563953 11-Apr-2017 CET/CEST