Orascom Development Holding AG — Earnings Release 2012

Aug 29, 2012

News Details

Ad-hoc | 29 August 2012 06:30

Orascom Development Holding AG: Orascom Development achieves substantial revenue growth of 24.6% and returns to positive operating cash flow (before interests and taxes) in 1H 2012

Orascom Development Holding AG / Key word(s): Half Year Results

29.08.2012 06:30

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

Press Release

Orascom Development achieves substantial revenue growth of 24.6% and
returns to positive operating cash flow (before interests and taxes) in 1H
2012

Results of Orascom Development recovered partially during 1H 2012 with
revenues increasing 24.6% year-on-year to CHF 132.9 million due to a
healthy sales growth in the hotel and real estate segment. The progress is
further reflected by a positive operating cash flow (before interest and
taxes) of CHF 24.0 million. Gross profit declined to CHF 12.0 million (1H
2011: CHF 16.3 million) due to overcapacities in construction. Combined
with higher tax expenses and impairments of investments this resulted in a
net loss of CHF 27.2 million.

Altdorf/Cairo, 29 August 2012 - During the first half-year of 2012 the
demand for tourism increased compared to last year. As a result Orascom
Development reported a 24.6% revenue increase from CHF 106.7 million a year
ago to CH 132.9 million. Gross profit for the period declined from CHF 16.3
million to CHF 12.0 million due to overcapacities in construction. Combined
with lower investment income, higher taxes as well as an impairment in
investments the net loss (after minorities) in the period under review
amounted to CHF 27.2 million compared to a loss of CHF 13.7 million in 1H
2011.

At the same time, Orascom Development was able to achieve a positive
operating cash flow (before interests and taxes) of CHF 24.0 million and
improved operating cash flow (after interests and taxes) by CHF 66.0
million compared to last year. The group's cash position at the end of the
period under review was CHF 92.6 million. The Group's capex plan for 2012
will again be reduced by 5% to CHF 115 million.

Key Financial Figures Unit 1H 2011 1H 2012 Change in %
Total revenues CHF 106.7 132.9 24.6
million
Gross Profit CHF 16.3 12.0 (26.3)
million
Gross Profit-Margin % 15.3% 9.1% na
Net income / (loss) after CHF (13.7) (27.2) 98.7
minorities million
Operating cash flow ² CHF (44.5) 24.0 na
million
Total assets ¹ CHF 2'083.2 2'158.9 3.6%
million
Equity ratio ¹ % 52.6% 50.2% na
Net debt ¹ CHF 456.8 515.2 12.8%
million

¹ Balance sheet figures and ratios for 2011 are as of 31.12.2011
² Before interest and taxes
Main Business Segments

Hotels
The performance in the hotel segment improved in 1H 2012 due to better
demand for leisure activities and improved cost management. Overall,
segment revenues increased by 27.3% and reached CHF 69.0 million (1H 2011:
CHF 54.2 million). Segment EBITDA surged by 77.6% to CHF 16.5 million with
a 23.8% margin (1H 2011: CHF 9.3 million, 17.1% margin). Occupancy rates
increased to 54% (1H 2011: 48%) mainly due to a higher occupancy rate in El
Gouna. The Group's TRevPAR (Total Revenues per Available Room) increased to
CHF 57 (2010: CHF 50). By the end of June 2012 the Group operated 6,653
hotel rooms (end June 2011: 6,520 rooms) due to the opening of the Sifawy
and Juweira hotels in Oman.

Real Estate and Construction
During the period under review Orascom Development reported contracted
sales of CHF 50.9 million compared to CHF 65.1 million a year ago. Overall,
segment revenues increased by 34.4% and reached CHF 37.3 million (1H 2011:
CHF 27.8 million). Overcapacities in construction resulted in an EBITDA of
1.3 million with a margin of 3.5% margin (1H 2011: CHF 15.3 million, 55.1%
margin). By the end of June 2012 total deferred income amounted to CHF
263.0 million, which was in line with the beginning of the year.

Main Countries and Destinations
Egypt
The overall demand for holidays in Egypt picked up during the first
half-year of 2012 which was beneficial for our tourist destinations on the
Red Sea. In El Gouna a further milestone to develop our destination will be
reached when the Technical University of Berlin (TU Berlin) opens a
satellite campus in October 2012 which will offer three master degree
courses. The perceived uncertainties surrounding the security situation on
the Sinai Peninsula had a negative impact on Taba Heights' hotel
performance. For Egypt as a total the Group achieved CHF 15.9 million of
contracted sales (1H 2011: CHF 14.8 million).

Oman
In Jebel Sifah the opening of the marina and the marina town took place
during the first half-year of 2012. The Sifawy hotel started its full
operations and the Group sold 13 real estate units with a value of CHF 9.4
million. In Salalah Beach, the marina is completed and the Group secured
financing for the Rotana hotel (399 rooms) which is expected to be
operational in the coming years. The first months of operations of the
Juweira hotel were successful and resulted in an average occupancy rate of
42%.

Switzerland
As planned construction works for two apartment buildings on the Podium and
the first villa are in full progress while interior fittings and facade
works are ongoing at the hotel The Chedi Andermatt. On the golf course
earthworks were completed, ponds created and fairways and greens were sown
(90% completion). The expansion of the Andermatt-Sedrun Ski Arena made
substantial progress as the tender offer for shareholders of the ski
operators was successfully completed. An agreement with SkiStar was signed
to manage the upcoming Ski Arena. As of end June 2012, the Group reports
CHF 23.5 million contracted sales and CHF 11.5 million reservations for its
Andermatt project.

Morocco
During the period under review and subject to certain conditions Orascom
Development signed contracts with third parties to develop a Club Med
hotel. Construction works for the marina basin are completed by two-thirds.
In the period under review CHF 0.3 million of contracted sales were
realized.

Montenegro
During the first half-year of 2012, Orascom Development launched pre-sales
in its beach-front resort resulting in the reservation of 48 units with a
value of CHF 16.1 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
At the beginning of the year credit agreements of CHF 125 million were
finalized which enable the Group to finance its projects and capex plan in
2012. For 2012, Orascom Development will again reduce its capex plan by 5%
to CHF 115 million. For 2013, the Group expects capex of CHF 100 million
which Orascom Development intends to cover with the sale of non-strategic
assets from its asset-rich balance sheet (as of end June 2012: CHF 2,158.9
million).

Media conference
A media conference will be held today at 09:00 am CET in
Altdorf/Switzerland focusing on the 1H 2012 results and the progress of the
Andermatt project. Pictures for the Andermatt project can be found under:
http://www.andermatt-swissalps.ch/Medien-Bilder.47.0.html and for Orascom
Development under:
http://www.orascomdh.com/en/media-center/image-gallery.html.

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 CEO IHH Mahmoud Zuaiter
present the half-year results 2012 and will be available to answer
questions. A registration is not required. Dial-in details are as follows:

• Conference password: 19 89 95 76

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

• UK Toll Free: 0800 694 0257

• Switzerland Toll Free: 0800 828 006

• US Toll Free: 1866 966 9439

• Egypt Toll Free: 0800 000 0318

About the Group

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 destination portfolio 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.

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.

Contact:

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

Media Relations
Philippe Blangey +41 43 268 32 35
media@orascomdh.com

29.08.2012 News transmitted by EquityStory AG.
The issuer is responsible for the contents of the release.

EquityStory publishes regulatory releases, media releases on the capital
market and press releases.
The EquityStory Group distributes authentic and real-time financial news
for over 1'300 listed companies.
The Swiss news archive can be found at www.equitystory.ch/news

---

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

End of Announcement EquityStory News-Service

---