EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s): Annual Results/Annual Results
Orascom Development Holding AG: Better performance in Q4 2020, yet hospitality segment continues to suffer due to the pandemic
31-March-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 Holding ("ODH") (SIX ODHN.SW) has released its consolidated financial results for FY 2020.
Orascom Development Holding: Better performance in Q4 2020, yet hospitality segment continues to suffer due to the pandemic
Key Highlights of FY 2020
- Total revenues reached CHF 385.7 million vs. CHF 453.3 million in FY 2019
- Operating EBITDA stood at CHF 67.5 million, with a 17.5% margin
- Net loss of CHF 38.4 million vs. CHF 31.3 million in FY 2019
- Real estate sales of CHF 421.3 million
- Real Estate receivables portfolio increased by 24.2% to CHF 731.8 million
- Real Estate deferred revenue balance grew by 13.9% to CHF 539.5 million
- Cash balance of CHF 195.7 million end of year
Key Highlights Q4 2020
- Total revenues reached CHF 125.3 million vs. CHF 128.1 million in Q4 2019
- Gross profit increased by 2.0% to CHF 30.3 million, with a 24.2% margin
- Operating EBITDA recorded a significant 58.8% increase to CHF 27.0 million
- EBITDA reached CHF 0.3 million compared to an EBITDA loss of CHF 3.5 million in Q4 2019
- ODH net loss decreased by 49.6% to CHF 11.8 million vs. a loss of CHF 23.4 million in Q4 2019
- Net real estate sales up 23.6% to CHF 126.9 million
Altdorf, 31 March 2021 - 2020 was a year like no other, and will be remembered as the year of Covid-19. For Orascom, it was a tale of two halves from a financial perspective, but a single story of our market leadership throughout the year. We generated a strong set of results in the fourth quarter and delivered solid and competitive performance for the entire year. Our ability to rapidly adapt our operations to the unexpected and new situation last year demonstrates the unique value we bring to our clients and employees, in addition to the resilience of our diversified business portfolios that we operate in the different geographies. Our revenues recovered consistently month-by-month from April to December 2020, with continued positive momentum in 2021 driven by our operational agility and diversified portfolio. We witnessed ongoing demand for our real estate segment which performed strongly, delivering good growth in the second half of 2020, generated strong free cash flow in the year while maintaining a healthy balance sheet position.
Very strong Q4 2020
Revenues reached CHF 125.3 million (Q4 2019: CHF 128.1 million). The decrease in revenues was mainly due to the decline in the hotel business operations, especially in Oman, with curfews and lockdowns put in place since mid-March 2020 to date. In Q4 2020, ODH accelerated real estate construction pace which positively affected the real estate segment results. Gross profit increased by 2.0% to CHF 30.3 million, with a positive margin of 24.2% (Q4 2019: 23.2%). Operating EBITDA significantly increased by a solid 58.8% to CHF 27.0 million. The loses from share of associates decreased from CHF 4.6 million to CHF 3.3 million in Q4 2020, as a result of the enhanced operational performance of Red Sea for Construction Company. The financial and operational improvements were reflected in ODH's bottom-line figures during the reported quarter. Whereby the group was able to report a 49.6% decrease in net loss to CHF 11.8 million despite the Covid-19 impact vs. a net loss of CHF 23.4 million in Q4 2019.
Maintaining positive gross margin in FY 2020
Total revenues in 2020 decreased by 14.9% to CHF 385.7 million (FY 2019: CHF 453.3 million) and gross profit declined 16.2% year-on-year (y-o-y) to CHF 95.6 million due to the headwinds from the prevailing Covid-19 affecting our hospitality segment. Nevertheless, we maintained positive gross margin of 24.8% (FY 2019: 25.2%). Operating EBITDA stood at CHF 67.5 million in FY 2020 (FY 2019: CHF 74.3 million). Performance was buoyed by enhanced operations of our real estate segment and better performance from our associate, Red Sea for Construction, with share of associates' losses down from CHF 13.2 million in FY 2019 to CHF 8.7 million in FY 2020. We continued to generate finance cost savings due to the decrease in Libor and Corridor rates, with interest expense down 8.0% y-o-y to CHF 36.8 million in FY 2020. ODH net loss reached CHF 38.4 million compared to CHF 31.3 million in FY 2019. The main contributors to the bottom-line losses include: (i) ODH's share of losses (CHF 15.3 million) from Andermatt Swiss Alps (ASA), the Group's largest associate and (ii) prudence related to additional one-time impairments (CHF 15.6 million). These losses are non-cash items with no adverse impact on the Company's cash flows.
ODH continued its prudent cash management and business optimization initiatives, further fortifying the group's balance sheet and maintaining an enhanced liquidity stance. Total cash balance reached CHF 195.7 million, an increase of 5.2% from CHF 186.0 million in FY 2019, total debt reached CHF 429.6 million, while the net debt balance reached CHF 233.9 million (FY 2019: CHF 243.9 million). ODH continued to generate positive cash flow from operations, which reached CHF 37.4 million in FY 2020. ODH managed to secure key financing arrangements to support our balance sheet, signing a USD 265 million medium-term loan to refinance existing debt, securing a 2.5-year grace period, and extending term loans to seven years.
Group Real Estate: Accelerated sales and construction activity in Egypt and Jebel Sifah, Oman
Net real estate sales reached CHF 421.3 million in FY 2020, down from the CHF 484.0 million reported in FY 2019, with last year's sales figures including the initial successful launch of O West. Sales rebounded at our Egyptian and Omani destinations beginning in Q3 2020, which reflected positively in our real estate segment's financial and operational figures. New sales reached CHF 126.9 million in Q4 2020, a 23.6% increase from CHF 102.6 million reported in Q4 2019. Growth in sales during the last two quarters of 2020 was supported by the recovery in home-buying following the easing of restrictions and precautionary measures imposed due to COVID-19. This was complemented by increased secondary home demand in El Gouna and Makadi Heights and a significant increase in the sales at primary-home development O West as well as Jebal Sifah in Oman. O West continued to be the group's largest contributor to new sales (47%), followed by El Gouna (34%), Oman (10% of sales), Makadi Heights (6%), and finally Lustica Bay (3%). We were also able to continue increasing our average selling prices since the beginning of the year across all destinations. Remaining committed to timely deliveries, we picked up the pace of construction in 1H 2020 after taking necessary precautions to ensure health and safety standards on construction sites were met. ODH delivered 768 units in 2020 across its projects, meeting all our planned contractual delivery dates allowing us to leverage the strength of our balance sheet and cash flows to deliver strong performance in turbulent times.
Due to increased construction activity and with revenues up 5.3% y-o-y to CHF 244.9 million in FY 2020, the segment performed well. Operating EBITDA also increased by 18.7% y-o-y to CHF 78.8 million. Total deferred revenue from real estate that is yet to be recognized until 2024 increased by 13.9% to CHF 539.5 million in FY 2020 (FY 2019: CHF 473.7 million). While total real estate portfolio receivables increased by 24.2% to CHF 731.8 million in FY 2020 (FY 2019: CHF 611.7 million).
Group Hotels' results dramatically impacted by the global pandemic
Operational and financial results of the company's hotel segment during FY 2020 have been significantly impacted by the outbreak of Covid-19 pandemic. The pressure on the segment continued throughout Q4 2020 on the back of weak international travel. Currently, our hotel business is highly dependent on local tourism. The company has responded to these conditions with a resolute plan to temporarily lower hotel operating costs, which mitigated the impact of disruptions on the liquidity position of these assets. Revenues of the segment came in at CHF 62.5 million in FY 2020, detracting by 63.0% y-o-y compared to CHF 168.8 million in FY 2019. The pressure came in mainly in Q2 2020 when quarterly hospitality revenues amounted to just CHF 1.7 million, down 95.5% y-o-y, due to partial closures and insignificant occupancies.
Following operational improvements during the second half of the year, revenue in Q3 and Q4 2020, improved quarter-on-quarter (q-o-q) and came in at CHF 14.6 million in Q4 2020 but remained 68.8% below Q4 2019 figures. Operating EBITDA of the segment resulted in a negative CHF 2.9 million in FY 2020 compared to positive CHF 46.7 million recorded in FY 2019. However, management remains confident that the long-term potential and outlook for the segment remains positive, with current global headwinds for the travel industry being temporary and expected to resolve gradually reviving back tourism activity, thanks mainly to the recently invented COVID-19 vaccines.
Group Destination Management continues its resilient performance, in spite of the challenges raised by Covid-19
Despite challenges, the destination management segment has maintained its solid ground and continued to secure a recurring revenue stream for the group. Revenues in FY 2020 were almost stable compared to last year down only 1.6% y-o-y to CHF 49.0 million. El Gouna town management figures were the main contributor, benefitting from the increase in utility usage, with more homeowners preferring to work from the beachside destination rather than in Cairo.
Substantial refinancing agreements on corporate level
On November 23rd, 2020, Orascom Development Egypt (ODE) the largest Egyptian subsidiary signed a medium-term loan agreement to refinance and upsize its outstanding debt with the equivalent of USD 265 million 7 years term loan with a 2.5-year grace period. The group intends to use the proceeds as follows: 1) Up to USD 215 million, to refinance outstanding balances of its debt to relieve the company from upcoming debt commitments. 2) An additional tranche of up to USD 50 million (in Egyptian Pounds), will be available for drawdown over 2 years for future growth opportunities at the discretion of the group including any planned capex for roll out of new rooms and renovation of hotels in the group's destinations. The loan agreement has enabled the Company to optimize its financing terms, extending its tenors and improving its overall financial stance.
In December 2020, ODH sold its 35.25% stake in "New City Housing & Development" previously known as Orascom Housing Communities (OHC), for an amount of CHF 7.6 million.
Outlook 2021: Path towards a sustained recovery
Covid-19 continues to weigh upon the travel and tourism sector, with governments and industry bodies looking for a path towards a sustained recovery. While restrictions on movement and international travel have begun to ease, controlled and consistent growth will be the key to achieving previous levels of demand. There is a lot of uncertainty in the market regarding the expected performance of hotels. Even with international flights and tourist spots open since the second half of the year, pick up in key tourism sectors has been slow and hotels have been operating below 50% capacity due to the ongoing pandemic.
The necessary drastic measures undertaken by governments and countries worldwide, and the consistently changing situation amid Covid-19, makes it impossible to provide an accurate outlook on its ramifications for 2021 operational and financial results. Accordingly, the group decided to abstain at the time being from providing guidance for 2021; however, we intend to provide an update of the evolving situation during all our quarterly results calls and market communications as needed.
We entered 2021 with a positive momentum following two quarters of sequential improvement and remain confident in the operational and financial stance of the group which will allow it to deliver on its targets and plans for the year. The group implemented several initiatives to keep the performance in 2021 at its optimum level.
- For our hotels: We focus on cash burn rate management, by formulating cost management strategies for destinations heavily reliant on international tour operators' business such as Taba Heights and Hawana Salalah. We have 'hibernated' similar properties and will implement the fast follower strategy by rapidly restoring business when international travel reopens. We also began heavily exploring domestic business, with new product development and distribution targeting Egyptian nationals. This is namely for El Gouna where we will increase potential destinations due to improving local demand. A close eye is kept on the segment's cash, particularly account receivables for the hotels business, and we began identifying new opportunities to reduce the group's reliance on tour operators and increase independent revenue streams at hotels.
- For our real estate segment: We will continue fast-tracking our real estate construction pace to meet contractual dates or deliver before time and increase revenues. We will also continue to 1) increase average selling prices across all destinations, with focus on O West and Makadi Heights, 2) closely monitor cash and account receivables for the segment, 3) closely examine construction and infrastructure costs to guarantee high value engineering and procurement savings, and 4) maximize cross-selling synergies between our destinations and properties.
- Our town management segment is a reliable source of cashflow, we consider town management essential to finance ODE's growth and shield our operations from cyclical slowdowns in the sellable development business. As such, we plan to execute a multi-pronged development strategy which includes mining for more cost-saving opportunities - a relatively rapid process - and uncover new ancillary revenues, which may require more time but will be systematically integrated into our strategies going forward as a recurring revenue stream. We will also leverage our steady growth and expanding number of residents to demonstrate our successes in disciplined deliveries and correct targeting across all destinations. Relevantly, we will also provide attractive offerings for start-ups and entrepreneurs.
Details on Destinations
El Gouna, Red Sea - Exploring the domestic market
El Gouna continued to prove its status as the premier destination in Egypt and benefited from the concentration of extended-stay from people during the lockdown. Real estate sales increased by 11.0% to CHF 143.0 million in FY 2020 (FY 2019: CHF 128.8 million) and our average selling prices increased by 11.4% in FY 2020 to CHF 3,357 per sqm up from CHF 3,013 per sqm in FY 2019. Capitalizing on the pent-up demand for our real estate offering we launched "Fanadir Sea Front" in November 2020 with a total inventory of USD 88 million and we also launched "Shedwan" a new real estate project with a total inventory of USD 110 million. We are continuing the acceleration of our construction activity across our projects meeting all our delivery schedule dates. Real estate revenues increased by 20.1% to CHF 128.4 million in FY 2020 (FY 2019: CHF 106.9 million).
El Gouna hotels experienced slow but steady improvements in revenues and occupancy rates during Q3 and Q4 2020, on the back of the relaxed measures implemented by the government. In addition, we extended exploring the domestic market business in Egypt. Whereby in November 2020 new hotel packages were introduced to attract the affluent Egyptian clientele travellers who are not much familiar with the destination capitalizing on the suppressed need for travel. In Egypt, as per governmental decree, hotels are still restricted to 50% of their total capacity since June 2020 to date. More than 95% of our hotels' guests are locals. During the fourth quarter, we achieved a meaningful sequential increase in revenue, despite a year-over-year decrease in travel due to Covid-19. Q4 2020 revenues reached CHF 6.9 million up from CHF 5.2 million in Q3 2020 and occupancy rates also improved from 19% in Q3 2020 to 25% in Q4 2020 (Q4 2019: 76%). Nevertheless, El Gouna's FY 2020 hotels revenue were still impacted and decreased by 63.6%, to CHF 27.3 million (FY 2019: CHF 75.1 million). Nevertheless, immediate implementation of cost saving, and cash preservation measures resulted in an overall positive GOP of CHF 3.3 million in FY 2020 (FY 2019: CHF 35.4 million). Occupancy rates for total rooms reached 27% in FY 2020 (FY 2019: 81%). We were able to increase our ARRs in FY 2020 by 7.1% to CHF 75 up from CHF 70 reported last year.
Destination management continued to be relatively resilient despite Covid-19. With revenues increasing by 3.4% to CHF 39.7 million in FY 2020 (FY 2019: CHF 28.1 million). The surge was backed by the increase in revenue generated from utility functions, community services as well as maintenance activities. Whereby more homeowners preferred to move to El Gouna instead of staying in Cairo and thus increasing their utility usage. Occupancy rate for "El Gouna Homes" in Q4 2020 reached 59% and for FY 2020 reached 65% and events resumed as of the 21st of September 2020.
O West, Egypt - High growth in the first home market in Q4 2020
New sales in Q4 2020 reached CHF 70.0 million, a 37.5% growth from last year. Growth in sales during the quarter was supported by the strong recovery in home buying transactions following the easing of restrictions and precautionary measures previously imposed due to Covid-19. Net contracted sales decreased by 23.3% to CHF 196.8 million in FY 2020 (FY 2019: CHF 255.8 million). It is worth mentioning that last year's sales figures were heavily skewed due to the first and successful launch of O West. During FY 2020, we increased the average selling prices by 19.6% to CHF 1,517/sqm per sqm and launched a total inventory of CHF 222 million in Whyt and Tulwa.
Our newest launch was in February 2021, "Qemet", a real estate project with a total inventory of CHF 430 million. The launched phase included only CHF 98 million in inventory. We are speeding up our construction pace in the destination with 406 villa skeleton keys already being visible and plans to start construction of our apartments in Q2 2021.
Construction of the three schools is expected to start in first half of 2021, subject to the approval of the respective authorities. Total real estate revenues from O West increased by 64.7% to EGP 916.8 million in FY 2020 (FY 2019: EGP 556.6 million). We are finalizing the development of O West Club masterplan, which will be a main add-on to the destination. In 2020, a total of 547 new memberships were added to O West Club (membership fee is CHF 8,600), bringing the total number of memberships in the club to 1,482 memberships, securing a steady recurring income flow. The destination booked CHF 23.7 million of land revenue coming from the school agreements that were signed in 2020. Total revenues of O West increased by 137.4% to CHF 78.1 million (FY 2019: CHF 32.9 million).
Jebel Sifah, Oman - Muscat's Lowest Density Destination
Jebal Sifah is now acting as a gateway for the residents of Muscat, and we have seen a significant improvement in our real estate sales and a nice usage of our hotel in the destination. We implemented a successful marketing campaign promoting Jebel Sifah as "Muscat's Lowest Density Destination"; highlighting safety, healthy outdoor living, open spaces, and views for every home; which resulted in strong increase in footfall, interest, and sales. Jebel Sifah recorded its best year of real estate sales since its launch in 2008. Net real estate sales up 161.9% to CHF 26.7 million in FY 2020 (FY 2019: CHF 10.2 million). While Q4 2020 real estate sales recorded a 240.0% increase to CHF 11.9 million. Completed the delivery of Jebel Sifah Heights properties in 2020, with a total of 140 units. Phase 1 of The Beachfront project comprising 117 properties is 90% sold out with construction progressing per schedule. Total real estate revenues reached CHF 6.5 million in FY 2020.
On the hotel side, Sifawy Boutique Hotel resumed its operations on July 5, 2020 after its closure in March 2020, as per government directives. While beaches were closed for most of the year, they re-opened on November 18, 2020. Jebel Sifah witnessed an increased demand for short staycations at the Sifawy Boutique Hotel and rental apartments, starting August 2020 from Oman-based residents. Hotel occupancy remained stable and recorded a 48% in Q4 2020 compared to same rate in Q4 2019. FY 2020 total occupancy reached 31% vs. 42% in FY 2019. While total revenues for the hotel reached CHF 1.5 million in FY 2020 (FY 2019: CHF 2.4 million).
On the retail front, restaurants were temporarily closed and re-opened during Q3 2020. The Golf course is operational for golf members only, as per the government decrees and the marina resumed its operations on May 23rd. Town management revenues reached CHF 2.0 million in FY 2020.
Hawana Salalah, Oman - Timely delivery of multiple real estate projects
Despite challenges created by Covid-19, there was a strong commitment to continue with the steady construction progress and timely delivery of multiple real estate projects. In 2020, we successfully delivered 329 units in Forest Island and Hawana Lagoons projects. Construction of Lily & Laguna Gardens projects are in full throttle, with early handover planned to commence in Q2 and Q4 2021, respectively. Net real estate sales continued to be affected by the lockdown imposed on The Governorate of Dhofar almost since the beginning of the pandemic until the end of October 2020. FY 2020 net real estate sales decreased by 54.3% to CHF 14.7 million (FY 2019: CHF 32.2 million). On a positive note, Q4 2020 reported better sales figures compared to Q3 2020. Q4 2020 net sales increased by to CHF 4.3 million compared to CHF 2.0 million in Q3 2019.
Hawana Salalah Hotels were severely impacted starting from Q2 2020 from the global and local travel restrictions and airport closures on Dhofar Governorate. All major tour operators cancelled their operation as of March 11, 2020 to date. Since March 27, 2020, all hotel operations in Hawana Salalah were closed. Juweira Hotel re-opened its doors temporarily on October 4th and closed again in December 2020. Fanar Hotel resumed operations temporarily on July 1, 2020; during Khareef season, while Rotana Salalah remained closed since March 2020. Strong demand from the European market was noted for the Winter Season starting November 2020, but actual operation was postponed following the lockdowns and travel bans announced by the Omani Government. Total revenues decreased by 68.0% to CHF 14.2 million (FY 2019: CHF 44.4 million). Efforts were concentrated on optimizing the hotels cost management and our cash burn rate and attracting local business through awareness campaigns and targeted sales promotions. Hotel occupancy to date is limited, depending mainly on the Salalah-based market, with minimal interest from Muscat residents. In FY 2020, our hotels in Salalah reported an occupancy rate of 22% vs. 60% in FY 2019. Construction of the new 400 room's hotel is currently on hold.
Makadi Heights, Egypt - Pleasing sales figures
The destination continued to deliver good sales figures. In Q4 2020, Makadi Heights recorded a 35.4% increase to CHF 6.5 million (Q4 2019: CHF 4.8 million). While in FY 2020 net real estate sales were up 12.7% to CHF 26.7 million (FY 2019: CHF 23.7 million). We launched total inventory of CHF 25.8 million among four projects "Bayou", "Jade", "Topio", and "Sole", all sold out during the year. In Q1 2021, we launched "Cape", a new real estate project with a total inventory of CHF 29.0 million of which CHF 11.4 million were launched in Q1 2021. We are continuing to speed up the construction of phase 2 of the project with plans to deliver 244 units in 2022. More revenues are expected to be generated over the coming quarters. Real estate revenues increased by 627.8% to CHF 13.1 million (FY 2019: CHF 1.8 million).
We signed a cooperation agreement with "Telecom Egypt WE" for the implementation of the communications and information technology infrastructure for the destination and finalized the construction of the football court and two tennis courts in the Club House. 2020 witnessed the launch of several new tenant stores at Makadi Heights Mall, Bouza Roll, Circle K and Bus Stop in addition to other essential amenities serving the daily needs of the current residents. Total revenues from Makadi destination increased by 239.0% to CHF 13.9 million (FY 2019: CHF 4.1 million).
Taba Heights, Egypt - Developing and promoting business opportunities with local operators
Taba Heights continues to struggle. Borders with Jordan remain closed since March 2020. Accessibility from within Egypt has always been, and continues to be, a major challenge. During FY 2020, only Strand Beach & Golf Resort has been opened with 163 rooms out of the existing 503 rooms, mainly filled by local business. Our short-medium term strategy for Taba Heights remains focused on developing and promoting existing and potential business opportunities with local operators. We will continue to reduce our cash burn rate and implement several cost savings initiatives while simultaneously making sure to have Taba Heights up and running at full capacity when circumstances improve, and tourists return. In FY 2020, total revenues reached CHF 2.8 million (FY 2019: CHF 12.9 million). Occupancy rate reached 11% in FY 2020 compared to 48% in FY 2019.
The Cove, UAE - Amongst our best performing hotel destinations
The Cove Rotana, Ras Al Khaimah, was amongst our best performing hotel destinations despite the impact of COVID-19. In Q4 2020, the hotel's revenue reached CHF 4.5 million up from CHF 3.2 million and CHF 0.8 million in Q3 and Q2 2020, respectively. Occupancy rates increased to 51% compared to 36% in Q3 2020 and 13% in Q2 2020. FY 2020 occupancy rates reached 41% coming down from 69% in FY 2019. We are capitalizing on local and regional business through targeted sales promotions and market campaigns. We anticipate that demand for The Cove will gradually improve as travel restrictions continue to be lifted over the coming period. Total revenues from the hotel decreased by 48.8% to CHF 14.9 million vs. CHF 29.1 million in FY 2019. With the Governmental measures in place supporting the return of international tourism and the increasing interest in the region particularly from the East European market, efforts remain focused on steering demand from the unopened destinations on the portfolio to our Hotel in RAK.
Luštica Bay, Montenegro - Real estate sales significantly impacted by Covid-19
In Montenegro, the international travel ban was lifted on July 1st, 2020. As the country remained on the EU Commission's red zone, volume from our traditional source markets remained weak with limited sources of business during its high summer season. Occupancy rates remained weak and recorded 12% in FY 2020 compared to 46% in FY 2019. Hotels' revenues decreased by 68.8% to CHF 1.5 million in FY 2020 (FY 2019: CHF 4.8 million).
Net real estate sales were significantly impacted by Covid-19 and decreased by 59.7% to CHF 12.8 million (FY 2019: CHF 31.8 million). We managed to increase our real estate average selling prices by 9.9% to CHF 5,359 per sqm and delivered 45 units in 2020, in the Centrale area. Finishing works on the main marina and the main design for the golf course irrigation pipeline has been completed. We upgraded the main beach and opened a new beach club. Real estate revenues reached CHF 15.6 million in FY 2020 (FY 2019: CHF 28.9 million). Total revenues for Luštica Bay, decreased 46.1% to CHF 19.2 million (FY 2019: CHF 35.6 million).
About Orascom Development Holding AG:
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. The shares of ODH are listed on SIX Swiss Exchange. ODH recently launched O West, the latest addition to its portfolio and its first project in Cairo, Egypt, located in the Sixth of October City.
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IN ANY EEA MEMBER STATE THAT HAS IMPLEMENTED DIRECTIVE 2003/71/EC (TOGETHER WITH ANY APPLICABLE IMPLEMENTING MEASURES IN ANY EEA MEMBER STATE, THE "PROSPECTUS DIRECTIVE") THIS COMMUNICATION IS ONLY ADRESSED TO AND IS ONLY DIRECTED AT QUALIFIED INVESTORS IN THAT EEA MEMBER STATE WITHIN THE MEANING OF THE PROSPECTUS DIRECTIVE. THIS DOCUMENT CONSTITUTES NEITHER AN OFFER TO SELL NOR A SOLICITATION TO BUY ANY SECURITIES AND IT DOES NOT CONSTITUTE A PROSPECTUS PURSUANT TO ARTICLES 652A AND/OR 1156 OF THE SWISS CODE OF OBLIGATIONS OR ARTICLES 32 ET SEQ. OF THE LISTING RULES OF THE SWX SWISS EXCHANGE. A DECISION TO INVEST IN SHARES OF THE GROUP SHOULD BE BASED EXCLUSIVELY ON THE ISSUE AND LISTING PROPECTUS PUBLISHED BY THE GROUP FOR SUCH PURPOSE. THE INFORMATION CONTAINED IN THIS DOCUMENT IS NOT INTENDED TO LEAD TO THE CONCLUSION OF ANY CONTRACT OF WHATSOEVER NATURE, IN PARTICULAR WITHIN THE TERRITORY OF EGYPT, THE UNITED ARAB EMIRATES, KUWAIT, MOROCCO, OMAN AND SAUDI ARABIA. THESE DOCUMENTS MAY CONTAIN CERTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION IN RELATION TO ORASCOM DEVELOPMENT HOLDING AG WHICH REFLECT THE CURRENT VIEWS AND/OR EXPECTATIONS OF THE COMPANY AND THE COMPANY' S MANAGEMENT IN RESPECT OF THE COMPANY'S PERFORMANCE, ACTIVITIES, AND FUTURE EVENTS. SUCH FORWARD LOOKING STATEMENTS INCLUDE, AMONG OTHER, STATEMENTS THAT MAY PREDICT, FORECAST, SIGNIFY OR IMPLY FUTURE RESULTS PERFORMANCE OR ACHIEVEMENTS, AND MAY CONTAIN WORDS SUCH AS "UNDERSTANDS", "ANTICIPATES", "EXPECTS", "ESTIMATES" "IT IS LIKELY" OR OTHER TERMS OR EXPRESSIONS WITH SIMILAR MEANING. THESE STATEMENTS ARE SUBJECT TO A NUMBER OF RISKS, UNCERTAINTIES AND ASSUMPTIONS. THE COMPANY CAUTIONS READERS THAT CERTAIN RELEVANT FACTORS MIGHT BE THE CAUSE FOR ACTUAL RESULTS TO DIFFER FROM THE PLANS, GOALS, EXPECTATIONS, ESTIMATES AND INTENTIONS EXPRESSED IN THIS DOCUMENT. NEITHER THE COMPANY NOR ANY RELATED COMPANIES, DIRECTORS, OFFICERS, REPRESENTATIVES OR EMPLOYEES THEREOF SHALL IN ANY EVENT BE LIABLE AS TO THIRD PARTIES (INCLUDING INVESTORS) FOR ANY INVESTMENTS OR BUSINESS DECISIONS ADAPTED OR ACTS PERFORMED BY THEM ON THE BASIS OF THE INFORMATION ANY STATEMENTS CONTAINED HEREIN OR FOR ANY CONSEQUENTIAL, SPECIAL OR SIMILAR DAMAGES DERIVED THEREFROM. ANY MARKET INFORMATION AND COMPANY'S COMPETITIVE POSITION DATA INCLUDING MARKET PROJECTIONS USED IN THIS DOCUMENT HAVE BEEN DERIVED FROM IN COMPANY'S STUDIES, MARKET RESEARCH REPORTS, PUBLICLY AVAILABLE DATA AND INDUSTRY PUBLICATIONS. ALTHOUGH THE COMPANY HAS NO REASON TO BELIEVE THAT THIS INFORMATION OR THESE REPORTS ARE INACCURATE IN ANY MATERIAL, RESPECT, THE COMPANY HEREBY STATUS THAT IT HAS NOT INDEPENDENTLY CHECKED ANY COMPETITIVE POSITION, MARKET SHARE, MARKET VOLUME, MARKET GROWTH OR OTHERS. PERFORMANCE OR ACHIEVEMENTS, AND MAY CONTAIN WORDS SUCH AS "UNDERSTANDS", "ANTICIPATES", "EXPECTS", "ESTIMATES" "IT IS LIKELY" OR OTHER TERMS OR EXPRESSIONS WITH SIMILAR MEANING. THESE STATEMENTS ARE SUBJECT TO A NUMBER OF RISKS, UNCERTAINTIES AND ASSUMPTIONS. THE COMPANY CAUTIONS READERS THAT CERTAIN RELEVANT FACTORS MIGHT BE THE CAUSE FOR ACTUAL RESULTS TO DIFFER FROM THE PLANS, GOALS, EXPECTATIONS, ESTIMATES AND INTENTIONS EXPRESSED IN THIS DOCUMENT. NEITHER THE COMPANY NOR ANY RELATED COMPANIES, DIRECTORS, OFFICERS, REPRESENTATIVES OR EMPLOYEES THEREOF SHALL IN ANY EVENT BE LIABLE AS TO THIRD PARTIES (INCLUDING INVESTORS) FOR ANY INVESTMENTS OR BUSINESS DECISIONS ADAPTED OR ACTS PERFORMED BY THEM ON THE BASIS OF THE INFORMATION ANY STATEMENTS CONTAINED HEREIN OR FOR ANY CONSEQUENTIAL, SPECIAL OR SIMILAR DAMAGES DERIVED THEREFROM. ANY MARKET INFORMATION AND COMPANY'S COMPETITIVE POSITION DATA INCLUDING MARKET PROJECTIONS USED IN THIS DOCUMENT HAVE BEEN DERIVED FROM IN COMPANY'S STUDIES, MARKET RESEARCH REPORTS, PUBLICLY AVAILABLE DATA AND INDUSTRY PUBLICATIONS. ALTHOUGH THE COMPANY HAS NO REASON TO BELIEVE THAT THIS INFORMATION OR THESE REPORTS ARE INACCURATE IN ANY MATERIAL, RESPECT, THE COMPANY HEREBY STATUS THAT IT HAS NOT INDEPENDENTLY CHECKED ANY COMPETITIVE POSITION, MARKET SHARE, MARKET VOLUME, MARKET GROWTH OR OTHERS.