Orascom Development Holding AG — Earnings Release 2012

Dec 6, 2012

News Details

Ad-hoc | 6 December 2012 06:55

Orascom Development Holding AG: Results 3Q 2012: positive operating cash flow of CHF 24.9 million, net loss of CHF 31.9 million

Orascom Development Holding AG / Key word(s): Interim Report/Quarter Results

06.12.2012 06:55

Release of an ad hoc announcement pursuant to Art. 53 KR

Press Release

Results 3Q 2012: positive operating cash flow of CHF 24.9 million, net loss
of CHF 31.9 million

For the third quarter of 2012 Orascom Development reports a positive
operating cash flow of CHF 24.9 million, an improvement of CHF 15.4 million
compared to last year. Consolidated revenues increased by 3.7% to CHF 57.7
million, while the reported net loss of CHF 31.9 million is partly due to
several extraordinary non-cash items.

Altdorf/Cairo, 6 December 2012 - For the third quarter of 2012 Orascom
Development Holding AG (Orascom Development) reports a 3.7% increase in
consolidated revenues to CHF 57.7 million (3Q 2011: CHF 55.7 million). The
gross profit for the period und review declined from CHF 8.2 million to CHF
5.2 million. The net loss (after minorities) amounted to CHF 31.9 million
(3Q 2011: CHF 5.2 million) mainly driven by extraordinary non-cash items
such as impairments and transaction losses. For the first nine month of
2012 Orascom Development reports consolidated revenues of CHF 189.6
million, gross profit of CHF 17.3 million and a net loss of CHF 59.1
million.

At the same time, Orascom Development was able to achieve a positive
operating cash flow (before interests and taxes) of CHF 24.9 million in the
third quarter of 2012, an improvement of CHF 15.4 million compared to the
same period last year. Operating cash flow for the first nine month of 2012
amounted to CHF 49.0 million. The group's cash position at the end of
September 2012 was CHF 114.2 million.

Key Figures (in CHF Mio.) 9M 9M % change 3Q 3Q % change
2011 2012 2011 2012
Total revenues 161.4 189.6 17.5% 55.7 57.7 3.7%
Gross Profit 24.6 17.3 (29.5%) 8.2 5.2 (36.5%)
Gross Profit-Margin (%) 15.2% 9.1% 14.8% 9.0%
Net income / (loss) ¹ (18.9) (59.1) (5.2) (31.9)
Operating cash flow ² (35.0) 49.0 9.5 24.9
Total assets ³ 2'083.2 2'211.9 6.2% 2'083 2'211 6.2%
.2 .9
Equity ratio (%) ³ 52.6% 47.8% 52.6% 47.8%
Net debt ³ 456.8 514.1 12.5% 456.8 514.1 12.5%

¹ After minorities
² Before interest and taxes
³ Balance sheet figures and ratios for 2011 are as of 31.12.2011

Main Business Segments

Hotels

Hotel revenues in the first nine month of 2012 increased by 24.8% and
reached CHF 104.5 million (9M 2011: CHF 83.7 million). Segment EBITDA
surged by 2.5% to CHF 22.2 million with a 21.3% margin (9M 2011: CHF 21.7
million, 25.9% margin). The drop in the EBITDA margin is primarily a result
of mandatory salary increases and general cost inflation in Egypt.
Occupancy rates increased to 55% (9M 2011: 54%) mainly due to a higher
occupancy rate in El Gouna. TRevPAR (Total Revenues per Available Room)
increased to CHF 57 (9M 2011: CHF 52). By the end of September, Orascom
Development operated 6,654 hotel rooms (end September 2011: 6,522 rooms)
mainly due to the opening of the Sifawy and Juweira hotels in Oman.

Real Estate and Construction

During the first nine month of 2012 Orascom Development reported contracted
sales of CHF 203.6 million (thereof CHF 131.9 million from the Acuro
transaction in Switzerland) compared to CHF 92.9 million a year ago. In
addition, Orascom Development reported CHF 45.4 million of real estate
reservations. Overall, segment revenues increased by 15.5% to CHF 47.8
million (9M 2011: CHF 41.4 million). Segment EBITDA of negative CHF 4.2
million was impacted by provisions for cancelled units in Egypt and Oman
and provisions for doubtful receivables in Egypt (EBITDA 9M 2011: CHF 21.5
million).

Main Countries and Destinations

Egypt

A milestone was reached in October when the Technische Universität Berlin
opened its satellite campus in El Gouna. In Taba Heights the marina was
successfully reopened which facilitates access to the well-know ancient
city of Petra and to the Saint Catherine's Monastery. In Orascom
Development's budget housing project Haram City stepped-up marketing
efforts and the activation of a governmental low income housing program
helped to further reduce the real estate inventory. For Egypt as a total
Orascom Development achieved CHF 21.2 million of real estate sales (9M
2011: CHF 23.1 million).

Oman

In Jebel Sifah, the Sifawy hotel reported a 30% occupancy rate during the
first nine months of 2012 while a reduction in vacancies of commercial
shops compared to the same period of last year was achieved. In Salalah
Beach, the opening of Juweira Hotel in July 2012 resulted in a average 46%
occupancy rate, while Orascom Development successfully completed the
funding for the Rotana Hotel (399 rooms) for its opening in March 2014. In
both destinations combined, real estate sales reached CHF 11.5 million
versus CHF 8.9 million a year ago.

Switzerland

Orascom Development sold 73 apartments to Acuro, a real estate investment
vehicle, for a base purchase price of CHF 122.7 million plus a variable
pricing component from sales proceeds. Orascom Development retains
ownership of the Chedi Hotel which will open as planned for the 2013/2014
winter season. Construction works for the first two apartment buildings on
the Podium are ongoing, while the core and shell of the first villa was
finished in November. The expansion of the Ski Arena made substantial
progress as the tender offer for shareholders of the ski companies was
successfully completed. As of September 2012, Orascom Development reported
CHF 159.5 million of real estate sales compared to CHF 58.3 million a year
ago.

Morocco

During the first nine month of 2012 and subject to certain conditions
Orascom Development signed contracts with third parties to develop a Club
Med hotel. As of September 2012, CHF 0.2 million of contracted real estate
sales were realized (9M 2011: CHF 2.6 million).

Montenegro

During 2012, Orascom Development launched pre-sales in its beach-front
resort resulting in contracted real estate sales of CHF 11.0 million and
reservations with a value of CHF 7.2 million. The construction of the
access road has been completed and the driving range of the upcoming golf
course has been opened.

Outlook Full-year 2012

Despite the current events in Egypt, Orascom Development expects a slight
increase in hotel occupancy rates for December 2012 compared to last year.
Further, Orascom Development is cautiously optimistic regarding real estate
sales and reservations in the fourth quarter of 2012.

Overview of extraordinary items during 9M 2012

The following table provides an overview of the extraordinary items in the
first nine months of 2012. For further information, please refer to
footnote 8 of the 9M 2012 financial report.

Extraordinary items (in CHF Mio.) 3Q 2012 9M 2012
Impairment losses investments in associates - (12.2)
Transaction losses investments in associates (6.3) (6.3)
Loss related to reversed sales from Iskan ¹ (7.4) (7.4)
Valuation adjustments for loss of control in a subsidiary (2.0) (2.0)
Revaluation gains investment properties 4.0 4.0
Total 3Q 2012 or 9M 2012 (11.7) (23.9)

¹ For further information about Iskan please refer to footnote 28 of the 9M
2012 financial report

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 02:00 pm CET

A telephone conference for analysts and investors will be held in English
today at 02:00 pm CET. CEO Gerhard Niesslein and CFO Ahmed El Shamy will
present the nine months 2012 results and will be available to answer
questions. A registration is not required. Dial-in details are as follows:

• Conference password: 700 555 28

• International: +44 (0) 1452 55 55 66

• Switzerland Toll Free: 0800 828 006

• Egypt Toll Free: 0800 000 0318

• UK Toll Free: 0800 694 0257

• US Toll Free: 1866 966 9439

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 nine
jurisdictions (Egypt, UAE, Jordan, Oman, Switzerland, Morocco, Montenegro,
United Kingdom and Romania). The Group currently operates six destinations;
three in Egypt El Gouna, Taba Heights and Haram City, The Cove in United
Arab Emirates and Jebel Sifah and Salalah Beach in Oman. 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 Investor Relations

Till Leisner +41 41 874 88 07
Sara El Gawahergy +2 01 205 20 52 18
ir@orascomdh.com

Contact Media Relations

Daniel Göring +41 41 874 88 33
media@orascomdh.com

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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
Swiss Security Number: A0NJ37
Listed: SIX

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