Orascom Development Holding AG - Earnings Release 2020

News Details

Ad-hoc | 23 February 2021 07:00

Orascom Development Holding AG: Orascom Development Egypt (ODE), the Group’s largest subsidiary, announces preliminary unaudited KPI’s for the FY 2020.

Orascom Development Holding AG / Key word(s): Miscellaneous/Miscellaneous

23-Feb-2021 / 07:00 CET/CEST

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

The issuer is solely responsible for the content of this announcement.

Orascom Development Egypt (ODE), the Group’s largest subsidiary, announces preliminary unaudited KPI’s for the FY 2020.

Press Release

Orascom Development Holding (ODH) largest subsidiary in Egypt, Orascom Development Egypt (ODE) recorded, a 32.3% increase in real estate sales in Q4 2020 and ended the year with net sales of EGP 6.2 billion and a cash balance of EGP 2.1 billon.

Altdorf, 23 February 2021 – Orascom Development Egypt (ODE), the largest subsidiary of Orascom Development Holding (ODH), announces preliminary unaudited KPI’s for FY 2020. The full results will be announced mid-March (ODE) and end of March (ODH).

Real Estate

El Gouna and Makadi Heights real estate sales benefited from the concentration of extended-stay from people during the lock-down. We witnessed an increase in demand on our real estate units since May 2020, and we were able to capitalize on that demand by continuing to boost our real estate offerings to cater to the different needs. Q4 2020 net real estate sales increased by 32.3% to EGP 1.8 billion (Q4 2019: EGP 1.4 billion) and net real estate sales for FY 2020 reached EGP 6.2 billion (FY 2019: EGP 6.9 billion).

El Gouna continued to prove its status as the premier destination in Egypt, recording a 10.6% increase in net real estate sales of EGP 2.4 billion in FY 2020 compared to EGP 2.2 billion in FY 2019. In Makadi Heights, real estate sales continued its positive momentum and recorded a 12.6% increase to EGP 450.4 million from EGP 400.1 million in FY 2019. For O West, new sales during Q4 2020 marked EGP 1.2 billion, a tremendous growth of 46.9% y-o-y. In FY 2020 net sales reached EGP 3.3 billion vs. EGP 4.3 billion in FY 2019. It is important to highlight that we were able to push our average selling prices across all destinations while still securing a solid sales balance.

FY 2020 & Q4 2020 Real Estate KPIs :


		Net sales (EGP mn)			Average selling price (EGP/m 2 )
Country	Destination	FY 2020	FY 2019	Δ in %	FY 2020	FY 2019	Δ in %
Egypt	El Gouna	2,409.5	2,178.2	10.6%	56,581	50,941	11.1%
	Fayoum	10.9	25.1	(56.6%)	15,310	13,633	12.3%
	Makadi Heights	450.4	400.1	12.6%	18,534	12,100	53.2%
	O West	3,316.1	4,324.7	(23.3%)	25,573	21,435	19.3%
ODE Group Total*		6,186.9	6,928.2	(10.7%)

*The value of contacted units in FY 2020 includes EGP 613.3 million from land sales.


		Net sales (EGP mn)			Average selling price (EGP/m 2 )
Country	Destination	Q4 2020	Q4 2019	Δ in %	Q4 2020	Q4 2019	Δ in %
Egypt	El Gouna	535.1	499.0	7.2%	57,636	54,561	5.6%
	Fayoum	(4.7)	–	–	–	–	–
	Makadi Heights	113.4	77.7	45.9%	27,520	18,635	47.7%
	O West	1,201.0	817.7	46.9%	28,161	22,509	25.1%
ODE Group Total		1,844.8	1,394.4	32.3%

We started speeding our construction activity during the 2H 2020 and we are continuing with this pace in El Gouna, Makadi Heights and O West, deploying 100% capacity among all our construction sites, complemented by all the necessary precautionary and safety measures. The enhanced construction momentum boosted our Real estate revenues for 2020 and grew our ending deferred revenue balance. The deferred revenue remains solid and fully funded, providing concrete visibility on future cash flows and earnings. We have also enhanced our collection activity across the board, reducing our delinquency rates to only 4% and significantly increasing our real estate receivables portfolio.

Hotels

Hotel business continues to be dramatically impacted by the global pandemic. While ODE acknowledges that the full recovery from the pandemic will take time, the current pick up in local travel and the global vaccine roll-out plans, reinforces the Group’s view that when people feel safe, travelling demand will return quickly. We are continuing to implement several cost saving initiatives across our hotels and developing specialized packages and offerings to create local demand for all destinations. In Egypt, as per the governmental decree, hotels are still restricted to operate at 50% of their total capacity since June 2020.

FY 2020 & Q4 2020 Hotels KPI s :


	Occupancy %		ARR (EGP)		TRevPAR (EGP)		(GOP PAR)
Destination	FY 2020	FY 2019	FY 2020	FY 2019	FY 2020	FY 2019	FY 2020	FY 2019
El Gouna	27%	82%	1,275	1,184	479	1,385	58	666
Taba Heights	11%	48%	454	598	85	417	(94)	(10)
Fayoum	16%	29%	1,224	1,130	307	544	26	155


	Occupancy %		ARR (EGP)		TRevPAR (EGP)		(GOP PAR)
Destination	Q4 2020	Q4 2019	Q4 2020	Q4 2019	Q4 2020	Q4 2019	Q4 2020	Q4 2019
El Gouna	25%	79%	1,494	1,269	484	1,423	90	672
Taba Heights	6%	46%	369	561	51	377	(64)	(111)
Fayoum	21%	28%	1,111	1,371	349	606	40	210

Healthy Financial Status

ODE continued its prudent cash management throughout 2020 and ended the year with a cash balance of EGP 2.1 billion, an increase of 79.6%, compared to the EGP 1.1 billion in FY 2019. Total debt reached EGP 3.5 billion, while net debt reached EGP 1.5 billion (FY 2019: EGP 2.1 billion). We successfully signed a medium-term loan agreement to refinance and upsize the outstanding debt, at our discretion, with the EGP equivalent of USD 265 million 7 years term loan with a 2.5-year grace period.

About Orascom Development Holding (ODH):

ODH 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. ODH’s diversified portfolio of destinations is spread over 7 jurisdictions (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro, and United Kingdom), with primary focus on touristic destinations. ODH currently operates nine destinations: four in Egypt (El Gouna, Taba Heights, Makadi Heights and Byoum), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro, and Andermatt in Switzerland. ODH recently launched O West, the latest addition to its portfolio and its first project in Cairo, Egypt, located on the Sixth of October City.

**Contact for Investors:

Sara El Gawahergy**

Head of Investor Relations & Strategic Projects Management

Tel: +202 246 18961

Tel: +41 418 74 17 11

Mob: +41 79 156 78 49

Email: [email protected]

Contact for Media Relations:

Philippe Blangey

Partner

Dynamics Group AG

Tel: +41 432 68 32 35

Email: [email protected]

Disclaimer and 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
	Switzerland
Phone:	+41 41 874 17 17
Fax:	+41 41 874 17 07
E-mail:	[email protected]
Internet:	www.orascomdh.com
ISIN:	CH0038285679
Valor:	A0NJ37
Listed:	SIX Swiss Exchange
EQS News ID:	1170242