Q1 2018 Results

2

Q1 2018 Key Highlights & Destination Progress Page 3

Q1 2018 Financials and KPIs Highlights Page 6

Outlook 2018 Page 10

Q1 2018 Financials and KPIs Appendix Page 12

Agenda

3

Key Highlights Q1 2018

Orascom Development Egypt; Records the Best Operational Quarter One Ever Across all its Business

Segments. Revenues grew by 32.6% to EGP 654.9 million, Adj. EBITDA increased by 46.5% to EGP 261.4

million and Net Profits increased to EGP 83.1 million.

➢ Net real estate sales more than doubled to EGP 397.6 million.

➢ Hotels revenues increased by 47.6% to EGP 296.6 million and Gross Operating Profits (GOP) increased by 82.1%

to EGP 126.9 million.

➢ Town Management revenues increased by 36.5% to EGP 122.3 million.

➢ Adjusted EBITDA increased by 46.5% to reach EGP 261.4 million.

➢ Net profit increased to EGP 83.1 million vs. a pro-forma loss of EGP 37.2 million in Q1 2017 (Q1 2017 reported

profits was EGP 75.9 million which included a one-off gain from a settlement of borrowings).

➢ Entered into a partnership with NUCA to develop 1,000 feddan in West Cairo, marking our first foray into the

first home market.

➢ Implemented a 5:1 stock split; new shares were traded on a split basis on May 7th, 2018.

➢ On track with the approved cash dividend distribution of EGP 0.20 per share.

➢ On track with the announced non-core assets disposals and the repayment of EGP 1.0 billion of debt in 2018.

4

Destinations Progress during Q1 2018El Gouna:

▪ Net sales more than doubled to reach EGP 397.3mn in Q1 2018.

▪ In January 2018 we released new inventory in Tawila project. Total Phase III inventory is EGP 776.2mn.Phase III includes town houses and apartments and sold EGP 240.1mn to date.

▪ In April 2018, we launched a new real estate project called “Ancient Sands Villas” with a totalinventory of USD 80.0mn. The launched phase inventory was USD 22.7mn and consists of twin housesand villas.

▪ Hotels GOP increased by 77.8% to reach EGP 129.3mn vs. EGP 72.7mn in Q1 2017.

▪ Continuing with the renovation works across some of our hotels with plans to be finalized during 2018.

▪ Hosted the FIFA World Cup Trophy in March 2018, with more than 1,000 attendees including footballstars, media celebrities and public figures. Also, in April 2018, we hosted El Gouna International OpenSquash Championship for men & women and also hosted El Gouna Polo 2018 event.

▪ Looking into adding more hotel rooms and possibly a new hotel in 2018/2019.

Taba Heights:

▪ Taba remains the most challenging destination for ODE due to the extended travel bans on Sinai.

▪ To date we have 1,260 operating rooms out of 2,365 rooms compared to only 818 rooms operatingin Q1 2017. This will make 4 hotels out of 6 open.

▪ We are capitalizing on the potential upside after Russians are back to Hurghada & Sharm El Sheikhand we expect the destination to cash breakeven in 2018.

Makadi Heights:

▪ We started an aggressive sales and marketing campaign to revive Makadi destination. We launcheda new project in April 2018 with a total inventory of EGP 200.0 million to date we managed to sellmore than EGP 80.0 million.

▪ Opened Makadi Heights club house during Q1 2018.

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Q1 2018 Key Highlights & Destination Progress Page 3

Q1 2018 Financials and KPIs Highlights Page 6

Outlook 2018 Page 10

Q1 2018 Financials and KPIs Appendix Page 12

Agenda

6

Business Segments Q1 2018

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 includes revenues from Utilities and services, Hospital, Marina, Golf, Rentals, Educational services, Limousine, and other town amenities.

Revenue EBITDA Adj. EBITDA1

(EGP mn) Q1 2018 Q1 2017 Δ in % Q1 2018 Q1 2017 Q1 2018 Q1 2017

Hotels 296.6 200.9 47.6% 136.3 164.8 132.3 67.6

Real Estate 147.1 126.4 16.4% 94.8 86.3 92.8 80.5

Land - - - - - - -

Town Management2 122.3 89.6 36.5% 19.8 13.0 20.1 13.1

Tamweel Group 88.9 76.9 15.6% 34.6 32.6 33.4 34.2

Corporate & Unallocated Items - - - 3.4 (49.0) (17.2) (17.0)

ODE Group 654.9 493.8 32.6% 288.9 247.7 261.4 178.4

7

Net value of Contracted Units (EGPmn)

Number of Contracted Units

Average Selling Price (EGP/m2)

Destination Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017El Gouna 397.3 178.4 37 37 43,984 28,246

Fayoum - 6.5 - 7 - 10,052

Makadi 0.3 0.4 1 1 5,088 4,979

ODE Group 397.6 185.3 38 45 42,322 26,058

Real Estate KPIs Q1 2018 and Deferred Revenue

Revenue Recognition Schedule (EGPmn)*

DestinationDeferred Revenue

Balance 2018 2019 2020 2021

El Gouna 1,697.8 839.6 858.2 - -Fayoum 28.9 2.8 15.1 6.0 5.0

Makadi 0.1 0.1 - - -ODE Group 1,726.8 842.5 873.3 6.0 5.0

* It is also important to note in addition to the outstanding deferred revenue balance; the Group alsohas a deferred interest income EGP 219.2 million.

8

Total number of hotel rooms

Occupancy for available rooms (%)

TRevPAR*(EGP)

GOP PAR**(EGP)

Destination Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017

El Gouna1 2,478 2,468 80 74 1,125 750 580 327

Taba Heights2 2,365 2,365 17 23 133 128 (57) (65)

Fayoum3 53 50 27 55 524 432 84 (9)

Floating Hotel 27 27 25 26 3,055 1,940 1,518 831

Makadi4 - -

ODE Group 4,923 4,910

Hotel KPIs Q1 2018

* Financial KPIs are calculated based on the number of available rooms during the reported period of Q1 2018.** Includes all expenses of the hotels in the destinations.

1. In 2017 we transferred 87 hotel rooms of Fanadir and Bellevue into real estate products and in Q1 2018 Ancient Sands hotel room increased by 97 rooms.2. During Q1 2018, only 4 hotels were operating (Sofitel with 442 rooms, Strand Beach Hotel with 503 rooms, El Wekala Hotel with 215 rooms and 100 rooms in Bay View Hotel out of 394

existing rooms). Whereby, only 3 hotels were operating representing 818 rooms in Q1 2017.3. In Q1 2018; three more rooms where added to the hotel rooms bringing the total number to 53 rooms.4. Our 3 hotels in Makadi were rented to FTI Group since Jan. 2017.

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Q1 2018 Key Highlights & Destination Progress Page 3

Q1 2018 Financials and KPIs Highlights Page 6

Outlook 2018 Page 10

Q1 2018 Financials and KPIs Appendix Page 12

Agenda

10

➢ Finalizing all necessary documentation and procedures for the sale of our earlier communicated non-core assets

and in parallel, we are working diligently on our plan with the banks to reduce our debt by EGP 1.0 billion in 2018.

➢ On track with the approved cash dividend distribution of EGP 0.20 per share.

➢ Looking into adding more hotel rooms and possibly a new hotel in 2018/2019 in El Gouna.

➢ In April 2018 we relaunched Makadi Heights destination with a new product offering and witnessing a very strong

sales momentum which will be reflected in Q2 2018 results.

➢ Finalizing the documentation for our revenue share agreement with the NUCA on the 1,000 feddan plot that was

previously announced in West Cairo.

➢ Continuing with advanced discussions to acquire a land plot in North Coast, marking our first entrance into second

home markets.

Outlook 2018

Cost of Debt is 10.2%

Current Maturity as of Q1 2018 Maturity Profile after ODE Rescheduling in 2018

Cost of Debt is 9.0%

107

425678 775

9701,135

360

--

2018 2019 2020 2021 2022 2023 2024 2025

50297

448 423 467

1,173

583

--

2018 2019 2020 2021 2022 2023 2024 2025

11

Q1 2018 Key Highlights & Destination Progress Page 3

Q1 2018 Financials and KPIs Highlights Page 6

Outlook 2018 Page 10

Q1 2018 Financials and KPIs Appendix Page 12

Agenda

12

Destinations KPIsEl Gouna Financials & KPIs Q1 2018 Q1 2017 % ChgHotelsNumber of rooms 2,478 2,468 0.4%Occ. for available rooms (%) 80 74 8.1%TRevPAR (EGP) 1,125 750 50%GOP PAR (EGP) 580 327 77.4%

Total Revenues (EGPmn) 252.7 169.5 49.1%Real Estate

Net Contracted Units (EGPmn) 397.3 178.4 122.7%

No of Contracted Units 37 37 -

Avg. Selling Price (EGP/m2) 43,984 28,246 55.7%

Total Revenues (EGPmn) 146.4 124.8 17.3%

Deferred Revenue (EGPmn) 1,697.8 918.3 84.9%Destination Management Total Revenues (EGPmn) 116.9 82.1 42.4%

Taba Heights Financials & KPIs Q1 2018 Q1 2017 % Chg

Hotels

Number of rooms 2,365 2,365 -

Number of rooms available 1,260 818 54.0%

Total Revenues (EGPmn) 15.1 9.1 65.9%

Occ. for available rooms (%) 17 23 (26.1%)

TRevPAR (EGP)* 133 129 3.1%

GOP PAR (EGP)* (57) (65) (12.3%)

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Destinations KPIsMakadi Heights Financials & KPIs Q1 2018 Q1 2017 % ChgReal EstateNet Contracted Units (EGPmn) 0.3 0.4 (25.0%)No of Contracted Units 1 1 -Avg. Selling Price (EGP/m2) 5,088 4,979 2.2%Total Revenues (EGPmn) 0.6 0.7 (14.3%)

Deferred Revenue (EGPmn) 0.1 0.1 -

Destination Management Total Revenues (EGPmn) 2.1 1.3 61.5%

Fayoum Financials & KPIs Q1 2018 Q1 2017 % ChgHotelsNumber of rooms 53 50 6.0%Occ. for available rooms (%) 27 55 (50.9%)TRevPAR (EGP) 524 432 21.3%GOP PAR (EGP) 84 (9) 1,033.3%

Total Revenues (EGPmn) 2.5 1.9 31.6%Real Estate

Net Contracted Units (EGPmn) - 6.5 (100.0%)

No of Contracted Units - 7 (100.0%)

Avg. Selling Price (EGP/m2) - 10,052 (100.0%)

Total Revenues (EGPmn) - - -

Deferred Revenue (EGPmn) 28.9 17.1 69.0%

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(EGP mn) Q1 2018 Q1 2017

Revenue 654.9 493.8

Cost of sales (420.9) (308.3)

Gross profit 234.0 185.5

Gross profit margin 35.7% 37.5%

Investment income 46.6 15.3

Administrative expenses (19.2) (22.4)

Adj. EBITDA 261.4 178.4

Adj. EBITDA margin 39.9% 36.1%

Other gains 26.9 68.8

Share of associates gain 0.6 0.5

EBITDA 288.9 247.7

Depreciation (55.7) (51.4)

Finance costs (105.3) (95.0)

Income tax expense (44.8) (25.4)

Net profit for the period 83.1 75.9

Attributed as follows:

ODE shareholders 62.3 31.8

Non-controlling interest 20.8 44.1

Basic EPS (EGP) 0.28 0.14

1

1

2

3

Notes

Revenues and gross profit increased due to theenhanced operational performance across all businesssegments.

Investment income increased mainly due to:• The increase in real estate cash collection.• Increase in interest income on bank deposits.

Other gains and losses for Q1 2018 includes:

• FX gain of EGP 23.9mn.• Other gains of EGP 5.1mn.• Other losses of EGP 2.1mn.

While Q1 2017 figures included:

• Gains in relation to settlement of borrowings in theamount of EGP 113.1mn.

• FX losses of EGP 40.2mn.• Other losses in the amount of EGP 4.1mn.

Increase in Finance costs mainly due to:• Increase in interest rates Q-o-Q.• Increase in outstanding balance of debts as a result

of FY 2017 capitalized interest.

Income Tax expense increased due to the increase ofthe profitability of the company.

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2

4

5

3

5

4

Income Statement

1515

Balance SheetNotes

PPE increased mainly due to the increase inconstruction activities in El Gouna.

Inventory increased mainly due to theacceleration of the construction of real estateunits in El Gouna.

Asset and liabilities held for sale include thefollowing:• Tamweel Group.• Makadi hotels.

Borrowings decreased mainly due to• (-) Payment of EGP 130.1 million.• (-) FX gain amounting EGP 15.2 million.

Other liabilities increased mainly due to Increaseof advanced payments from real estate sales.

1

2

(EGP mn) 31.03.18 31.12.17

Property, plant and equipment 3,501.6 3,481.0

Inventory 680.5 624.6

Receivables 1,534.9 1,578.9

Cash and bank balances 1,204.6 1,257.8

Investments in associates 113.3 112.8

Other assets 1,081.6 1,025.0

Non-current assets held for sale 2,047.7 1,976.9

Total assets 10,164.2 10,057.0

Borrowings 4,280.1 4,425.4

Payables 349.5 363.1

Provisions 297.1 292.9

Other liabilities 1,480.0 1,345.7

Liabilities related to assets held for sale

1,738.2 1,689.7

Total liabilities 8,144.9 8,116.8

Non-controlling interests 481.1 460.2

Equity attributable to ODE shareholders

1,538.2 1,480.0

Total liabilities and equity 10,164.2 10,057.0

3

1

4

2

3

3

4

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1616

Cash Flow Statement

(EGP mn) Q1 2018 Q1 2017

Cash from operations 111 15

Interest paid (12) (7)

Taxes paid (5) (9)

Operating Cash Flow 94 (1)

Payments for PP&E (39) (164)

Other items 15 15

Investing Cash Flow (24) (149)

Change in Borrowings (107) 68

Financing Cash Flow (107) 68

Net change in cash/equivalents (37) (82)

Cash & bank balances beginning ofperiod

1,334 895

Cash & bank balances end of period* 1,297 813

Notes

Cash flow from operations and operatingcash flow increased due to the enhancedoperational performance across allbusiness segments during the period.

Payments for PP&E includes paymentsmainly due construction activities in ElGouna.

Change in Borrowings mainly resultingfrom:(-) Debt repayment of EGP 130.1mn.(+) Loan proceeds related to Tamweel forEGP 18.0mn.(+) Other proceeds for EGP 4.8mn.

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2

1

2

1

3

* Includes cash related to assets held for sale.

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IR Dashboard

Investor Relations Contact:

Sara El GawahergyHead of Investor RelationsTel Dir: +20 (0) 22 461 89 61Mobile: 010 0218 5651Sara.elgawahergy@orascomdh.comir@orascomdh.comwww.orascomhd.com

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