altdorf, august 19th, 2020 1h 2020 results · 1h 2020 results –analyst & investor...
TRANSCRIPT
1H 2020 Results
Analyst & Investor Presentation
Altdorf, August 19th, 2020
1. Executive Summary
2. 1H 2020 – Key Highlights
3. 1H 2020 – Operational Highlights by Destination
4. 1H 2020 – Financials
5. Outlook 2020
6. Appendix
Table of Contents
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 2
1. Executive Summary 1H 2020
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 3
Executive Summary
4
Revenues
− Down 26.4% in 1H
2020 vs. CHF
222.9mn in 1H
2019.
− Largely impacted
by the closure and
limited occupancy
of our hotels
segment.
CHF
164.1mn
Adj. EBITDA
− Down 34.6% in 1H
2020 vs. CHF 41.6mn
in 1H 2019.
CHF
27.2mnCash and bank
balances
− Cash and bank
balances reached
CHF 180.1mn in 1H 2020.
CHF
180.1mn
Net losses
− Net loss of CHF
19.2mn in 1H
2020 vs. a loss
of CHF 1.5mn in
1H 2019.
CHF (19.2)mn
Land Monetization
− Executing on our land
bank monetization
strategy,
− Signed three School
Development
Agreements in O West,
securing CHF 32.2mn of
cash flows to ODH.
− Sold a 40,654.5 m2 of
land in El Gouna for
CHF 6.4mn.
− Land revenues
recognized YTD reached
CHF 14.2mn.
Monetization
Financing
− Working diligently with
the Egyptian banks to
restructure the current
debt securing more
flexible terms.
Debt Restructure
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation
2. 1H 2020 – Key Highlights
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 5
116.8
89.8
33.1 29.7
1H 2019 1H 2020
Real Estate Financials (CHF mn)
Revenues Adj. EBITDA
403.5
551.7
1H 2019 1H 2020
512.0
667.1
1H 2019 1H 2020
284.6
191.8
1H 2019 1H 2020
Net Real Estate Sales (CHF mn)
1H 2020
1H 2020 Results – Analyst & Investor Presentation 6
Key Segment Financials & KPIs
32.6% 30.3%
Real Estate Receviables Portfolio (CHF mn)Real Estate Deferred Revenue Balance (CHF mn)
36.7%
23.1%
10.3%83.6
37.332.13.5
1H 2019 1H 2020
Hotel Financials (CHF mn)
Revenues GOP
55.4% 22.5 22.8
(1.6) (0.5)
1H 2019 1H 2020
Town Management Financials (CHF mn)
Revenues Adj. EBITDA
68.8%
1.3%
Altdorf, August 19th, 2020
89.1%
37.3
89.8
22.8
14.2
Hotels
Real Estate
Town Mgt.
Land
14%
83.6
116.8
22.5
Hotels
Real Estate
Town Mgt.
1H 2020
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 7
Y-o-Y Revenue Analysis
38%52%
10%
55%
8%
23%
Revenues by Segment 1H 2019 (CHFmn) Revenues by Segment 1H 2020 (CHFmn)
CHF 164.1mnCHF 222.9mn
61%17%
8%
5%4%
2%1% 1% 1%
El Gouna
Hawana Salalah
O West
Lustica Bay
UAE
Jebal Sifah
Taba Heights
Makadi Heights
Others*
45%
20%
11%
7%
7%
6%
2%1% 1%
El Gouna
Hawana Salalah
O West
UAE
Jebal Sifah
Lustica Bay
Taba Heights
Others*
Makadi Heights
1H 2020
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 8
Y-o-Y Revenue Analysis
Revenues by Destination 1H 2019 (CHFmn) Revenues by Destination 1H 2020 (CHFmn)
CHF 164.1mn
− Others in 1H 2019 included, Oberoi Zahra, Fayoum & Corporate.
CHF 222.9mn
− Others in 1H 2020 Fayoum & Corporate.
3. 1H 2020 – Operational Highlights by Destination
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 9
Destinations
A leading fully integrated
developer with more than
30 years of experience
101.0 mn m2
of land bank across
7 countries
67.8 mn m2 remaining
land bank (67.1%)
9 operating destinations
with 33 Hotels
& 7,176 rooms
10
Egypt:
▪ El Gouna
▪ Taba Heights
▪ Makadi Heights
▪ Fayoum
– O-West
Oman:
▪ Hawana Salalah
▪ Jebal Sifah
– As Sodah Island
– City Walk
UAE:
▪ The Cove
Switzerland:
▪ Andermatt
Montenegro:
▪ Luštica Bay
United Kingdom:
– Eco – Bos
Morocco:
– Chbika
Portfolio
1
1
2
3
4
5
6
7
2
3
4
5
6
7
▪ Operating Destination
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation
El Gouna, Egypt
Update 1H 2020
− Speeding up construction pace, complemented by
all the necessary precautionary and safety
measures.
− Increased construction budget for the destination
this year to CHF 64.7 million, which is expected to
generate real estate revenues within the range of
CHF 112-123mn for 2020.
− Planning to deliver 254 units in 2020 with main
deliveries happening in Abu Tig Hill, Tawila,
Ancient Sands, Cyan and Sabina.
− In Q4 2020, planning to launch a new real
estate product with a total inventory of
CHF 80.2mn.
− Sold a 40,654.5 sqm of land for a total
value of CHF 6.4mn as an extension to
“Mangroovy for Hotels”. The land plot will
encompass different types of services to
serve residences and guests.
11
− On June 2, 2020, the hotels were
operating at a 50%, capacity as per the
government instructions.
− The Gouna Film Festival is scheduled to
take place in October 2020. New location
is ready to accommodate the event, with
virtual capabilities in place for guests
who are not able to attend physically.
El Gouna, Egypt
Revenues per segment
1H 2020 (CHF mn)
35.8
15.3
47.8
59.8
17.9
18.7
6.4
1H 2019 1H 2020
Hotels Real Estate Destination Management Land
-1.3%
100.2101.5
+4.5%
+25.1%
-57.3%
El Gouna, Egypt
KPIs
1H 2020 1H 2019 % Chg
Hotels
Total number of rooms* 2,694 2,606 3.4%
Occ. for available rooms (%) 32% 84% (61.9%)
TRevPAR (CHF) 31 80 (61.3%)
GOP (CHFmn) 1.6 17.9 (91.1%)
GOP PAR(CHF) 3 40 (92.5%)
Real Estate
Net sales (CHFmn) 74.6 67.3 10.8%
No of contracted units 131 151 (13.2%)
Avg. selling price (CHF/m2) 3,388 2,716 24.7%
* The number of rooms in El Gouna increased mainly because
opening of Casa Cook Hotel (100 rooms in November 2019.
12
Hawana Salalah, Oman
Update 1H 2020
− Accelerating construction progress and
started the handover of some units in
Forest Island project. Full handover is
expected before the end of the year (202
units).
− Construction of “Lily and Laguna
Gardens”, real estate projects, are
progressing as scheduled, with on-time
delivery in Q2 and Q4 2021.
− Hotel restaurants, pools and the Hawana
Aqua Park continue to be closed.
− The Governorate of Dhofar, where
Hawana Salalah is located, is in
lockdown until further notice with no
access from other governorates.
− Interest for the winter season from our
traditional tour operator partners remains
positive.
13
− Progressing with the construction of
the new 400-rooms, 5-star hotel with
plans for soft opening in Q4 2021.
− All major tour operators cancelled their
operation as of March 11, 2020.
− Marina re-opened on May 20th, both the
Salalah Rotana Resort and the Fanar
Hotel & Residences re-opened on July
1st. reliance on domestic tourism only.
Hawana Salalah, Oman
Revenues per segment
1H 2020 (CHF mn)
23.3
13.3
20.5
13.2
0.8
1.2
1H 2019 1H 2020
Hotels Real Estate Destination Management
-37.9%
27.7
44.6
+50.0%
-35.6%
-42.9
Hawana Salalah, Oman
KPIs
1H 2020 1H 2019 % Chg
Hotels
Total number of rooms 1,081 1,081 –
Occ. for available rooms (%) 37% 65% (43.1%)
TRevPAR (CHF) 68 119 (42.9%)
GOP (CHFmn) 3.6 9.3 (61.3%)
GOP PAR (CHF) 18 47 (61.7%)
Real Estate
Net sales (CHFmn) 8.4 21.9 (61.6%)
No. of contracted units 49 136 (64.0%)
Avg. selling price (CHF/m2) 2,151 2,004 7.3%
14
Luštica Bay, Montenegro
Update 1H 2020
− The Chedi Lustica Bay developed an extended
entertainment program for the summer season
as Montenegro initially reported close to zero
Covid-19 cases and allowed hotels to open as
of June 15. Unfortunately, July has seen a rise
in the rate of new infections and further
restrictions in travel across the region are
expected during the summer months.
− Concept design of Marina Hotel (200 rooms)
complete – main design for Phase 1 initiated.
15
− Finalized the construction of two new
apartment buildings (23 apartments) in the
Centrale area and one apartment building
(10 apartments) in the Marina Village.
− Finishing works on the main marina
completed and the main design for golf
course has been completed.
− Upgraded the main beach and opened a
new beach club.
Luštica Bay, Montenegro
Revenues per segment
1H 2020 (CHF mn)
1.5 0.2
11.0
8.0
0.2
0.4
1H 2019 1H 2020
Hotels Real Estate Destination Management
-32.2%
8.6
12.7
-27.3%
Luštica Bay, Montenegro
KPIs
1H 2020 1H 2019 % Chg
Hotels
Total number of rooms 111 111 –
Occ. for available rooms (%) 4% 34% (88.2%)
TRevPAR (CHF) 19 98 (80.6%)
GOP (CHFmn) (1.0) (0.9) (11.1%)
GOP PAR (CHF) (88) (62) (41.9%)
Real Estate
Net sales (CHFmn) 3.6 13.5 (73.3%)
No of contracted units 4 32 (87.5%)
Avg. selling price (CHF/m2) 5,150 5,154 (0.1%)
16
-86.7%
+100.0%
O West, Egypt
Update 1H 2020
− 213 new memberships were added to O West Club
(membership fee is EGP 150K), bringing the total
No. of memberships in O West Club stood to 1,148.
− Continuing to speed up the construction progress,
we received construction permits for phase 1 and
signed its construction contract. Phase 1 will include
445 villas expected to be delivered end of June 2021.
− Total cash flow secured from the three school
development agreements was CHF 32.2mn. We
booked CHF 7.8mn of land revenues in Q2 from the
education zone transactions. The rest will kick in
during 2H 2020.
17
O West, Egypt
KPIs
− Render
18
1H 2020 1H 2019 % Chg
Real Estate
Net sales (CHFmn)* 92.5 160.6 (42.4%)
No. of contracted units 213 590 (63.9%)
Avg. selling price (CHF/m2) 1,426 1,229 16.0%
* The value of contacted units in 1H 2020 includes CHF 31.1mn
from Commercial sales (schools development agreements).
O West, Egypt
Revenues per segment
1H 2020 (CHF mn)
-41.2%
23.8
14.0
23.8
6.2
7.8
1H 2019 1H 2020
Real Estate Land
Eco Bos, UK
ODH’s newest addition to its towns’ portfolio
− Render
− Work on site never stopped unlike many
other sites across the UK which paused
construction because of Covid-19
− Withdrew £3mn out of the £18mn
Shawbrook facility that is geared towards
the construction of 296 homes.
− Received £300K in support of Covid-19 assigned
by the Council to homes England.
− On the positive side, the accelerating trend of
early retirement and work from home, in
addition to the low interest rates and mortgage
availability, all strongly support the Cornish
housing market and particularly projects of our
nature.
19
4. 1H 2020 – Financials
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 20
(CHFmn) Q2 2020 Q2 2019 1H 2020 1H 2019
Revenue 71.2 124.8 164.1 222.9
Cost of sales (51.1) (93.7) (120.5) (161.7)
Gross profit 20.1 31.1 43.6 61.2
Gross profit margin, (%) 28.2% 24.9% 26.6% 27.5%
Investment income 1.4 3.4 2.7 5.3
Administrative expenses (9.5) (13.5) (19.1) (24.9)
Adj. EBITDA 12.0 21.0 27.2 41.6
Adj. EBITDA margin, (%) 16.0% 20.7% 16.0% 20.7%
Other gains & losses (4.2) 4.4 (5.1) 7.9
Share of associates losses (2.9) (3.3) (3.2) (5.7)
EBITDA 4.9 22.1 18.9 43.8
Depreciation (7.3) (7.4) (14.4) (14.9)
Finance costs (8.9) (10.1) (17.9) (20.9)
Income tax expense (3.7) (7.2) (5.8) (9.5)
Net losses for the period (15.0) (2.6) (19.2) (1.5)
Attributed as follows:
ODH shareholders (12.2) (4.0) (17.1) (6.0)
Non-controlling interest (2.8) 1.4 (2.1) 4.5
EPS (CHF) (0.30) (0.10) (0.43) (0.15)
1H 2020
21
Income Statement – Reported
Notes
Revenues and gross profit decreased, due to the shelter in place
restrictions that were adapted by the governments and its
implications on our business operations, heightened by the
complete shut down of our hotels business most of Q2 and to
date in some destinations.
We were able to maintain our gross profit margin levels, as a
result of our quick implementations of the cost savings initiatives.
Decrease in G&A expenses is mainly due to the cost savings
initiatives implemented in response to the Covid-19 pandemic.
Other gains & losses for 1H 2020 includes FX losses of
CHF 2.2mn vs. FX gains of CHF 7.9mn in 1H 2019.
Share of associates losses decreased due to the decrease in ASA
losses and increase in the profitability of OHC & Red Sea Co.
Decrease in finance cost is mainly due to decrease in interest
rates in Egypt in addition to the decrease in Libor rates.
Income Tax expense decreased due to the decrease of the
profitability of the subsidiaries.
1
2
3
5
3
4
1
5
6
4
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation
1
2
6
7
7
1H 2020
22
Balance Sheet
Notes
Inventory mainly includes a total amount of CHF 405.4mn for the
land held for development (O West) to co-develop an integrated
community project.
Receivables decreased mainly due to the enhanced
Real Estate collection activity during the period.
Investment in associates increased due to the increase of the share
capital of ASA. ODH participated in this capital increase according to
its interest of 49% by contributing CHF 34.3mn.
Borrowings mainly includes:
(+) CHF 9.9mn- Net proceeds
(+) CHF 9.0mn- Deferred interest payments.
(-) CHF 5.0mn- Debt payment
(-) CHF 6.5mn- FX gain
Payables include accruals to the Egyptian government for
O West project.
Other liabilities increased due to the increase in customers advance
payments related to the real estate sales, in addition, to the value of
the non-cash (In-kind BUA) portion due to the Egyptian government
for O West project.
1
2
4
3
5
(CHFmn) 30.06.20 31.12.19
Property, plant and equipment 803.9 814.4
Inventory 542.2 516.4
Receivables 149.9 154.7
Cash and bank balances 180.1 186.0
Investments in associates 56.7 29.3
Other assets 142.6 134.2
Non-current assets held for sale 5.5 5.8
Total assets 1,880.9 1,840.8
Borrowings 437.3 429.9
Payables 397.5 388.4
Provisions 33.7 33.6
Other liabilities 473.4 421.6
Liabilities related to assets held for sale 0.5 0.6
Total liabilities 1,342.4 1,274.1
Non-controlling interests 159.0 160.3
Equity to ODH shareholders 379.5 406.4
Total liabilities and equity 1,880.9 1,840.8
2
1
4
5
6
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation
3
6
23
Cost of Debt: 6.4%
1H 2020 Balance: CHF 437.3mn
EGP10%
USD36%
EUR5%
AED4%
OMR21%
GBP1%
CHF23%
EGP
USD
EUR
AED
OMR
GBP
CHF
48%
21%
4%
3%1%
23%
Egypt
Oman
UAE
Montenegro
UK
Switzerland
Current Debt by CountryCurrent Debt by Currency* Current Maturity Profile & Balance
Planned Maturity Profile & Balance
Planned Balance: CHF 490.1mn
16 1847 57 63
145
90
CF 2020 2021 2022 2023 2024 2025 -2032
EGP21%
USD17%
EUR19%
AED4%
OMR19%
GBP1%
CHF20%
EGP
USD
EUR
AED
OMR
GBP
CHF
16 4 9 21 42
153
246
CF 2020 2021 2022 2023 2024 2025 -2032
53%
19%
4%3%
1%
20%
Egypt
Oman
UAE
Montenegro
UK
Switzerland
Planned Debt by CountryPlanned Debt by Currency
*Balance reflects the 6 months postponement of debt
repayments, as per the Governments directive.
Financing Profile
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation
1H 2020
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 24
Cash Flow Statement
Notes
Cash flow from operations decreased as a result of the shelter in place
restrictions imposed by the government and its effect on our hospitality
segment.
Interest paid decreased as a result of the adaption of the deferred
interest payments initiative by the governments where we operate.
Taxes paid decreased as a result of the adaption of the deferred tax
payments initiative by the governments.
Payments for PP&E include construction activities in El Gouna, UK
and Oman.
Other items in 1H 2019 included CHF 16.7mn in proceeds from
Tamweel sale which is not present in 2020.
Change in Borrowings resulting mainly from:
(-) Debt repayment of CHF 6.4mn.
(+) Debt proceeds of CHF 11.8mn.
3
(CHF mn) 1H 2020 1H 2019
Cash from operations 8.7 19.9
Interest paid (3.8) (14.8)
Taxes paid (2.7) (5.6)
Operating Cash Flow 2.2 (0.5)
Payments for PP&E (18.7) (15.6)
Other items 4.5 18.8
Investing Cash Flow (14.2) 3.2
Change in Borrowings 5.4 (23.8)
Non-controlling interests shares in changes of
equity for consolidated subsidiaries3.6 1.6
Other Items 0.4 1.0
Financing Cash Flow 9.4 (21.2)
Net change in cash/equivalents (2.6) (18.5)
Cash & bank balances beginning of period 186.0 138.3
Effects of FX changes (3.3) (4.3)
Cash & bank balances end of period* 180.1 115.5
1
2
3
* Includes cash related to assets held for sale.
1
2
4
4
5
6
5
6
5. Outlook 2020
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 25
26
Outlook FY 2020
▪ Appointment of Omar El Hamamsy; as the new Chief Executive Officer of the Group, as of September 1, 2020.
▪ ODH still stands with its earlier position and abstains from providing full-year guidance on its 2020 results; however, we remain diligent in providing updates
of the evolving situation during all our quarterly results calls and market communications as needed.
▪ We have witnessed a pickup in our real estate sales momentum across El Gouna, O West and Makadi in Egypt for the month of July, showing a positive
trend uptake. Whereby total contracted and reserved units for July 2020 reached CHF 44.5 million vs. contracted sales of CHF 21.9 million for July 2019.
▪ Outstanding reservations are taking longer than expected to convert into contracts due to social distancing procedures put in place for the Covid-19.
▪ Relaxing health-related measures following the decrease in the number of Covid-19 cases, along with the ongoing normalization of economic activity, and
government initiatives to stimulate consumption created the trajectory to further rebound in the coming period.
▪ In El Gouna, we had 887 hotel rooms opened for Eid break and secured an occupancy of 82% for those rooms.
▪ In Oman, the government has announced that flights from Muscat to Salalah will be operational starting September 1, 2020.
▪ Andermatt emerged as our best performing destination in 2020 so far. The Chedi Andermatt and Radisson Blu Reussen Andermatt re-opened in April 2020
after a 3-week closure stipulated by local government. In May and June, the Hotels in the destination benefitted from pent up demand for local travel and
recorded their historically highest occupancy levels. Furthermore, forward bookings for summer look promising.
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation
July 2020 July 2019 Δ in %
Egypt 44.5 21.9 102.9%
6. Appendix
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 27
1H 2020
28
Revenue Analysis
Revenue EBITDA Adj. EBITDA1
(CHF mn) 1H 20 1H 19 Δ in % 1H 20 1H 19 Δ in % 1H 20 1H 19 Δ in %
Hotels 37.3 83.6 (55.4%) 0.5 26.3 (98.1%) 2.0 27.8 (92.8%)
Real Estate 89.8 116.8 (23.1%) 28.0 32.7 (14.4%) 29.7 33.1 (10.3%)
Land 14.2 – – 11.7 1.1 963.6% 11.6 1.2 866.7%
Town Management2 22.8 22.5 1.3% (0.5) (1.9) 73.7% (0.5) (1.6) 68.8%
Corporate & Unallocated Items – – – (20.8) (14.4) (44.4%) (15.6) (18.9) 17.5%
ODH Group 164.1 222.9 (26.4%) 18.9 43.8 (56.8%) 27.2 41.6 (34.6%)
1 Adjusted EBITDA: EBITDA adjusted for Non-cash items (which includes provisions & impairments, other gains and losses, FX gains & share in associates).2 Town Management include revenues from Utilities & services, Hospital, Marina, Golf, Rentals, Educational services, Limousine, & other town amenities.
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation
1H 2020
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 29
Real Estate Sales KPIs
Net value of contracted units
(CHF mn)Number of contracted units
Average selling price
(CHF/m2)
Country Destination 1H 2020 1H 2019 Δ in % 1H 2020 1H 2019 Δ in % 1H 2020 1H 2019 Δ in %
Egypt El Gouna 74.6 67.3 10.8% 131 151 (13.2%) 3,388 2,027 67.1%
Fayoum 0.7 1.4 (50.0%) 3 11 (72.7%) 747 788 (5.2%)
Makadi Heights 7.1 13.0 (45.4%) 46 108 (57.4%) 1,010 566 78.4%
O West* 92.5 160.6 (42.4%) 213 590 (63.9%) 1,426 1,229 16.0%
Oman Jebel Sifah 4.9 6.7 (26.9%) 32 30 6.7% 2,221 2,393 (7.2%)
Hawana Salalah 8.4 21.9 (61.6%) 49 136 (64.0%) 2,151 2,004 7.3%
Montenegro Luštica Bay 3.6 13.5 (73.3%) 4 32 (87.5%) 5,150 5,154 (0.1%)
ODH Group 191.8 284.6 (32.6%) 478 1,058 (54.8%)
* The value of contacted units in 1H 2020 includes CHF 31.1mn from Commercial sales (schools development agreements).
1H 2020
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 30
Hotels KPIs
Occ. for available
rooms (%)
ARR
(CHF)
TRevPAR
(CHF)
GOP PAR
(CHF)
Destination 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019
El Gouna 32 84 67 67 31 80 3 40
Taba Heights 14 39 26 32 6 20 (7) (0.3)
Fayoum 16 29 88 73 23 32 6 11
Hawana Salalah 37 65 125 123 68 119 18 47
Jebal Sifah 20 46 123 129 48 105 (10) 19
UAE 38 71 102 142 68 168 13 65
Montenegro 4 34 127 151 19 98 (88) (62)
Q2 2020
31
Revenue Analysis
Revenue EBITDA Adj. EBITDA1
(CHF mn) Q2 20 Q2 19 Δ in % Q2 20 Q2 19 Δ in % Q2 20 Q2 19 Δ in %
Hotels 1.7 37.4 (95.5%) (9.2) 9.2 (200.0%) (8.1) 9.9 (181.8%)
Real Estate 45.5 75.3 (39.6%) 16.5 20.7 (20.3%) 17.5 20.8 (15.9%)
Land 14.2 – – 11.7 1.1 963.6% 11.4 1.2 850.0%
Town Management2 9.8 12.1 (19.0%) (1.3) (0.8) (62.5%) (1.4) (0.7) (100.0%)
Corporate & Unallocated Items – – – (12.8) (8.1) (58.0%) (7.4) (10.2) 27.5%
ODH Group 71.2 124.8 (42.9%) 4.9 22.1 (77.8%) 12.0 21.0 (42.9%)
1 Adjusted EBITDA: EBITDA adjusted for Non-cash items (which includes provisions & impairments, other gains and losses, FX gains & share in associates).2 Town Management include revenues from Utilities & services, Hospital, Marina, Golf, Rentals, Educational services, Limousine, & other town amenities.
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation
Q2 2020
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 32
Real Estate Sales KPIs
Net value of contracted units
(CHF mn)Number of contracted units
Average selling price
(CHF/m2)
Country Destination Q2 2020 Q2 2019 Δ in % Q2 2020 Q2 2019 Δ in % Q2 2020 Q2 2019 Δ in %
Egypt El Gouna 47.0 42.7 10.1% 79 87 (9.2%) 3,428 2,917 17.5%
Fayoum – 0.6 – – 4 – – 631 –
Makadi Heights 1.5 5.3 -71.7% 9 42 (78.6%) 961 346 177.7%
O West* 32.2 107.6 -70.1% 65 416 (84.4%) 1,469 1,222 20.2%
Oman Jebel Sifah 1.0 1.6 -37.5% 6 9 (33.3%) 2,160 2,143 0.8%
Hawana Salalah 1.7 12.2 -86.1% 9 71 (87.3%) 2,194 2,010 9.2%
Montenegro Luštica Bay 0.7 8.7 -92.0% 1 22 (95.5%) 5,865 5,081 15.4%
ODH Group 84.1 178.7 -52.9% 169 651 (74.0%)
* The value of contacted units in Q2 2020 includes CHF 12.7mn from Commercial sales (schools development agreements).
Q2 2020
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 33
Hotels KPIs
Occ. for available
rooms (%)
ARR
(CHF)
TRevPAR
(CHF)
GOP PAR
(CHF)
Destination Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019
El Gouna 1 85 131 71 3 84 (18) 42
Taba Heights 1 41 36 38 0.4 23 (7) 1
Fayoum 1 21 50 73 1 25 (8) 4
Hawana Salalah – 33 – 126 – 64 – 19
Jebal Sifah – 33 – 126 – 74 – (11)
UAE 23 65 67 141 33 151 (16) 74
Montenegro 9 57 198 159 75 164 (349) (53)
Deferred Revenue Balance Schedule
34
Country Destination
Total deferred
revenue balance 2020 2021 2022 2023 2024
Egypt El Gouna 169.1 63.5 68.5 37.1 – –
Fayoum 1.5 0.7 0.2 0.4 0.1 –
Makadi Heights 44.9 9.5 14.7 14.7 6.0 –
O West 266.2 26.1 64.2 72.3 63.0 40.8
Total Egypt 481.6 99.7 147.5 124.4 69.1 40.8
Oman Jebel Sifah 11.2 1.8 7.5 1.9 – –
Hawana Salalah 25.2 9.7 13.3 2.2 – –
Total Oman 36.3 11.5 20.8 4.1 – –
Montenegro Luštica Bay 14.4 4.6 9.7 – – –
ODH Group 532.2 115.8 178.0 128.5 69.1 40.8
• Figures are rounded to the nearest decimal point.
• It is also important to note that deferred revenue balance includes also deferred interest income.
(CHF mn)
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation
35
Covid-19 Effect on the Group
In 2020
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation
Covid-19 progression:
ODH:
▪ January and February 2020, all the Group’s business segments were operating normally. Only in early March, when Covid-19 repercussions started to impact the
company’s results, as global governments took actions to encourage social distancing.
▪ The deterioration accelerated towards the end of March, as the pandemic spread further and the number of countries adopting restrictive measures increased, of
which travel restrictions and flight suspensions around the world have been implemented.
Egypt:
▪ On March 16, 2020; The government suspended all flights into and out of the country's airports starting March 19, 2020.
▪ On March 19, 2020; The government instructed the closure of hotels in the touristic destinations and imposed a partial curfew effective March 25, 2020 to date.
▪ On May 3, 2020; The government has officially allowed the reopening of hotels and resorts starting 15 May 2020 for domestic tourism only, after being closed
since March 19, 2020. Hotels will be permitted to operate at a maximum capacity of 25% until 1 June 2020 then at 50% by June 2, 2020.
▪ On June 23, 2020: The government allowed the re-opening of cafes & restaurants & places of worship with 25% capacity & lift out the curfew that was previously
imposed.
▪ On July 1, 2020: The government has officially allowed the reopening its airports for International flights.
▪ Positive Talks and Pre-bookings from other German and Dutch tour operators to return charter flights to Egypt by Q4 2020.
Montenegro:
▪ On March 16, 2020: The Government has instructed closure of all hotels.
▪ On April 29, 2020: The Government announced that it will reopen all hotels as of May 18, 2020.
36Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation
Oman:
▪ On March 1, 2020: The Government suspended commercial flights to and from Italy from Salalah Airport.
▪ On March 18, 2020: Oman closed all tourist sites and banned gatherings in public places including beaches and parks.
▪ On March 24, 2020: The Government suspend international and domestic flights from March 29, 2020.
▪ On March 27, 2020: We closed all our hotels in Jebal Sifah and Hawana Salalah as a result of Covid-19 pandamic spread.
▪ Governorate of Dhofar is in lockdown (since end of June) until further notice (no access from other governorates)
▪ Oman has been in lock down from July 25th where no cross-governorate access is permitted. The lockdown was removed on Saturday August 8th (except for Dhofar).
▪ All governorates had curfews from 7pm – 6am. This curfew will be extended till August 15th, to be from 9pm – 5am.
▪ Governorate of Dhofar is in lockdown (since end of June) until further notice (no access from other governorates).
▪ Hotels generally have started opening starting July 1st , but no pools, beach access or restaurants are open. Hotel guests are only able to have in-room dining.
Andermatt:
▪ On March 13, 2020: The SkiArena Andermatt-Sedrun was forced to stop operating immediately.
▪ On March 16, 2020: The Federal Council decided that all restaurants, bars, swimming pools and fitness centers in all of Switzerland must remain closed as of March 17, 2020.
▪ On March 18, 2020: Radisson Blu Reussen Hotel was closed.
▪ On March 22, 2020: The Chedi Andermatt hotel was closed.
▪ On May 8, 2020: Reopening of hotels and rental apartments on 8 May. Operations to follow a strict Covid-19 security concept to optimally protect guests and employees, with
promising occupancy rates.
▪ On May 11, 2020: Excellent start to the golf season.
Covid-19 Effect on the Group
In 2020
Taba Heights, Egypt
Update 1H 2020
− Only Strand Beach & Golf Resort hotel is
opened. The hotel has a total of 503
rooms. Only 251 rooms are opened, as per
the 50% capacity the government put in
place.
37
Taba Heights, Egypt
Revenues per segment
1H 2020 (CHF mn)
4.6
1.5
0.7
0.3
1H 2019 1H 2020
Hotels Destination Management
-67.4%
-57.1%
1.8
5.3
-66.0%
Taba Heights, Egypt
KPIs
1H 2020 1H 2019 % Chg
Hotels
Total number of rooms* 2,349 2,365 (0.7%)
Occ. for available rooms (%) 14% 39% (64.1%)
TRevPAR (CHF) 6 20 (70.0%)
GOP (CHFmn) (1.7) (0.06) 2733.3%
GOP PAR (CHF) (7) (0.3) 2233.3%
38
* During 1H 2020 we converted 16 rooms in Mosaique hotel to
suites thus reducing the number of rooms to 2,349.
Jebal Sifah, Oman
Update 1H 2020
− The Sifawy Boutique Hotel resumed its operations
on July 5th. All access to beaches and pools
continues to be prohibited.
− Golf course is operational for golf members only,
as per the government decrees.
− Marina resumed its operations on May 23rd and
applying all hygiene and safety precautions.
39
− Most of Jebel Sifah Heights; 150 sold-out apartment,
have been handed over successfully, as well as the
completion of landscaping and amenities.
− The construction and ground-breaking of 115 units
comprising Phase I of “The Beachfront project”, will
start beginning of Q4 2020.
Jebel Sifah, Oman
Revenues per segment
1H 2020 (CHF mn)
1.3 0.6
13.1
1.8
1.0
0.9
1H 2019 1H 2020
Hotels Real Estate Destination Management
-78.6%
3.3
15.4
-10.0%
-86.3%
-53.8%
Jebel Sifah, Oman
KPIs
1H 2020 1H 2019 % Chg
Hotels
Total number of rooms 67 67 –
Occ. for available rooms (%) 20% 46% (56.5%)
TRevPAR (CHF) 48 105 (54.3%)
GOP (CHFmn) (0.12) 0.23 (152.2%)
GOP PAR (CHF) (10) 19 (152.6%)
Real Estate
Net sales (CHFmn) 4.9 6.7 (26.9%)
No of contracted units 32 30 6.7%
Avg. selling price (CHF/m2) 2,221 2,393 (7.2%)
40
Makadi Heights, Egypt
Update 1H 2020
− During 2020, we launched two new phases
“Bayou” & “Jade”. The two phases include
fully finished twin villas & apartments with a
total inventory of CHF 7.1mn.
− Progressing with the construction of Phase 2
of the project with plans to deliver in 2022.
Revenues will start to kick in over the next
quarters.
− Render
41
− Opened the first Football court in the Club
House and finalizing the construction of the
tennis courts.
Makadi Heights, Egypt
Revenues per segment
1H 2020(CHF mn)
0.5
0.2
0.5
0.5
0.5
0.5
1H 2019 1H 2020
Hotels Real Estate Destination Management
1.51.2
-20.0%
-
-
-60.0%
Makadi Heights, Egypt
KPIs
1H 2020 1H 2019 % Chg
Real Estate
Net sales (CHFmn) 7.1 13.0 (45.4%)
No of contracted units 46 108 (57.4%)
Avg. selling price (CHF/m2)* 1,010 566 78.4%
42
The Cove, UAE
Update 1H 2020
− Market conditions continue to be challenging
given the current pandemic conditions and
travel shutdown during Q2 2020.
− Hotel occupancy is gradually increasing since
the beginning of July, driven by local demand
out of Dubai on the weekends.
43
The Cove, UAE
Revenues per segment
1H 2020 (CHF mn)
15.4
5.9
1H 2019 1H 2020
Hotels
5.9
15.4
-61.7%
-61.7%
The Cove, UAE
KPIs
1H 2020 1H 2019 % Chg
Hotels
Total number of rooms 473 475 (0.4%)
Occ. for available rooms (%) 38% 71% (46.5%)
TRevPAR (CHF) 68 168 (59.5%)
GOP (CHFmn) 1.1 5.5 (80.0%)
GOP PAR(CHF) 13 65 (80.0%)
44
IR Dashboard Calendar & Contact
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 45
IR Dashboard Calendar & Contact
Investor Relations Contact
Sara El Gawahergy
Head of Investor Relations
Head of Strategic Projects Management
Phone EGY: +20 (0)22 461 89 61
Mobile CH: +41 179 156 78 49
E-Mail: [email protected]
46
Date Event
November 11th, 2020 9M 2020 Results
Investor Relations Calendar
Disclaimer
Altdorf, August 19th, 20201H 2020 Results – Analyst & Investor Presentation 47
THESE MATERIALS ARE BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION AND ARE STRICTLY
CONFIDENTIAL AND MUST NOT BE REPRODUCED, DISCLOSED OR FURTHER DISTRIBUTED TO ANY OTHER PERSON,OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE.
IN PARTICULAR, NEITHER THIS DOCUMENT NOR ANY PART OR COPY OF IT MAY BE TAKEN OR TRANSMITTED INTO
THE UNITED STATES OF AMERICA (THE "UNITED STATES") OR TO U.S. PERSONS OR DISTRIBUTED, DIRECTLY ORINDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS. NEITHER THIS DOCUMENT NOR ANY PART OR COPY OF
IT MAY BE TAKEN OR TRANSMITTED INTO, OR DISTRIBUTED OR REDISTRIBUTED, DIRECTLY OR INDIRECTLY, INAUSTRALIA, CANADA OR JAPAN, OR TO ANY RESIDENT THEREOF.
ANY FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF UNITED STATES,
AUSTRALIAN, CANADIAN OR JAPANESE SECURITIES LAWS. THE DISTRIBUTION OF THIS DOCUMENT IN OTHERJURISDICTIONS MAY BE RESTRICTED BY LAW, AND PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES
SHOULD INFORM THEMSELVES ABOUT, AND OBSERVE, ANY SUCH RESTRICTIONS.
THIS DOCUMENT DOES NOT CONTAIN OR CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF ANY OFFER TOBUY SECURITIES IN THE UNITED STATES OR IN ANY OTHER JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION
IS NOT AUTHORIZED OR TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE AN OFFER OR SOLICITATION. THESECURITIES OF OD HOLDING HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO OR FOR THE ACCOUNT ORTHE BENEFIT OF “U.S. PERSONS” (AS SUCH TERM IS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT
OF 1933, AS AMENDED) ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S.SECURITIES ACT OF 1933, AS AMENDED. OD HOLDING NOR ITS SHAREHOLDERS INTEND TO REGISTER ANY
PORTION OF THE OFFERING IN THE UNITED STATES OR CONDUCT A PUBLIC OFFERING OF SECURITIES IN THEUNITED STATES.
THIS DOCUMENT IS DIRECTED ONLY AT PERSONS (i) WHO ARE OUTSIDE THE UNITED KINGDOM OR (ii) WHO HAVE
PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THEFINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (AS AMENDED) (THE "ORDER")
OR (iii) WHO FALL WITHIN ARTICLE 49(2)(a) TO (e) ("HIGH NET WORTH COMPANIES, UNICORPORATED ASSOCIATIONSETC.) OF THE ORDER (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). ANY
PERSON WHO IS NOT A RELEVANT PERSON MUST NOT ACT OR RELY ON THIS COMMUNICATION OR ANY OF ITSCONTENTS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS COMMUNICATION RELATES IS AVAILABLE
ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS.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 ISONLY 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 OFOBLIGATIONS 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 PROPECTUSPUBLISHED 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 ARABEMIRATES, 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 THECOMPANY 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 MAYPREDICT, 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 OREXPRESSIONS WITH SIMILAR MEANING. THESE STATEMENTS ARE SUBJECT TO A NUMBER OF RISKS,
UNCERTAINTIES AND ASSUMPTIONS. THE COMPANY CAUTIONS READERS THAT CERTAIN RELEVANT FACTORSMIGHT 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 ACTSPERFORMED 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 PROJECTIONSUSED 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 BELIEVETHAT 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.
ROUNDING
NUMBERS PRESENTED THROUGHOUT THIS PRESENTATION MAY NOT ADD UP PRECISELY TO THE TOTALS PROVIDED IN THE TABLES AND TEXT. FOR PRESENTATION PURPOSES, FIGURES ARE ROUNDED TO THE NEAREST
DECIMAL PLACE. PERCENTAGES, PERCENT CHANGES AND ABSOLUTE VARIANCES, HOWEVER, ARE CALCULATED BASED ON THE EXACT FIGURES AS SHOWN IN THE FINANCIAL STATEMENTS.
Thank you