1st Half Half‐Year Year 2012 Results Presentation 2012 Results Presentation 29 August 2012
Agenda g Highlights 1H 2012 CEO Gerhard Niesslein
page 3
Financial Review CEO IHH Mahmoud Zuaiter ¹ page 17 p g
Business Segments CEO IHH Mahmoud Zuaiter ¹ page 23
Outlook 2012
CEO Gerhard Niesslein page 30
¹ CEO International Hotel Holding (IHH): Until 30 June 2012 CFO of Orascom Development Holding AG 2
Highlights 1H 2012 g g
33
Market k environment
Tourism market MENA region stabilized, but visibility remains limited Relatively illiquid credit markets; funding remains challenging
Facts and figures
Revenues grew 24.6% to CHF 132.9 million (last year CHF 106.7 million) Net loss also a result of impairments of investments in associates Return to positive operating cash flow (before interests and taxes)
Business Segments
Hotels: p performance improved p Real estate/construction: higher revenues; construction overcapacities
Destinations and Operations
Announcement of new CFO Ahmed El‐Shamy (as of 1 July 2012) Successful tender offer for shareholders of Swiss ski operators Increasing efforts to enhance internal processes
Egypt gyp
El Gouna
4
April: TVG¹ held its annual conference in front of 120 franchisee April: El Gouna International Squash Open: PSA World Series event (USD 120 000 price money) 120,000 As of October: new satellite campus TU Berlin with three master degree courses Contracted sales of CHF 10.1 10 1 million and reservations of CHF 6.3 million
Taba Heights
The perceived uncertainties surrounding the security situation on the Sinai Peninsula had a negative impact on Taba Heights' hotel performance. Occupancy rate dropped from 49% a year ago to 43%
¹ TVG Touristik Vertriebsgesellschaft is a subsidiary of FTI, one of the largest European tour operators
O a Oman
Jebel Sifah
5
Sifawy hotel rated No. 2 of 10 in Muscat by TripAdvisor Opening of Jebel Sifah Marina and Marina Town Sold 13 real estate units (CHF 9.4 Mio)
Salalah Beach
Juweira hotel with positive responses from first months of opening (42% occupancy) Marina completed Fi Financing i for f the th Rotana R t h t l (399 rooms)) hotel secured
S Switzerland e a d
6
Expansion of Andermatt‐Sedrun Ski Arena: successful conclusion of the tender offer period
Construction progress as planned (Chedi, Golf course, Podium, Villa and Infrastructure)
Second home initiative: Federal Government endorsed second home ordinance. There is now legal security that Andermatt Swiss Alps is not affected by the second home initiative.
Real estate contracted sales and reservations at CHF 35.0 million during 1H 2012
Expansion Ski Arena pa s o S e a
7
More than 95% of Andermatt Gotthard Sportbahnen b h AG and d more than h 98% off Sedrun Bergbahnen AG shares have been offered for sale or exchange
Management agreement finalised with SkiStar to operate Andermatt‐Sedrun Ski Arena
Goal: Modernisation of the two ski‐ resorts Andermatt and Sedrun including 130 km of slopes
Hotel The Chedi oe e ed Andermatt de a
8
Interior fittings in progress
Facade works ongoing
Connection i to electricity, l i i water, heat, communication and sewage underway
Finalization of two mock‐up standard rooms and one apartment p
Golf Course o ou se
9
Golf Course: 90% completion E th Earthworks k completed l t d Ponds created Fairways and greens are sown Irrigation i i system installed i ll d
Podium od u
10
Construction works of apartment buildings Hirsch and Steinadler in full progress
These are the first two of total 42 apartment buildings
Further h extension i off the h Podium di
Villaa
11
Construction for first villa is underway
Concrete work is finalized
Topping‐out ceremony during November 2012
Morocco oo o
12
Signed contracts with third parties to develop a Club Med hotel subject to certain conditions (picture see above) Marina basin: construction works completed by approximately 2/3 Marina basin: construction Sale of three apartments (value of CHF 0.3 million) during 1H 2012
Montenegro o e eg o
13
Reservation of 48 real estate units (value of CHF 16.1 million) since launch in 2012 Collaboration with Almara Beach Club (see picture above) Construction of access road completed and driving range opened Construction of access road completed and driving range opened
U a d o da UAE and Jordan
14
UAE
Jordan
Very high demand (86% occupancy rate) Improved occupancy rate and ARR Cove Rotana Resort and Spa is one of the t top performing hotels within the group f i h t l ithi th
Demand impacted by Syria conflict Occupancy levels below last year (40%) ARR improved compared to prior year
U a d o a a UK and Romania
UK
15
Romania Project planning still ongoing
Project planning still ongoing
Agenda g Highlights 1H 2012 CEO Gerhard Niesslein
page 3
Financial Review CEO IHH Mahmoud Zuaiter ¹ page 17 p g
Business Segments CEO IHH Mahmoud Zuaiter ¹ page 23
Outlook 2012
CEO Gerhard Niesslein page 30
¹ CEO International Hotel Holding (IHH): Until 30 June 2012 CFO of Orascom Development Holding AG 16
Condensed Income Statement Numbers in CHF million
2012
1Q
2Q
1H
1Q
2Q
1H
52.9
53.8
106.7
63.5
69.4
132.9
Cost of sales
(49.0)
(41.4)
(90.4)
(55.9)
(64.9)
(120.9)
Gross profit
4.0
12.4
16.3
7.6
4.5
12.0
Gross profit margin
7.5%
23.0%
15.3%
11.9%
6.4%
9.1%
Investment income
4.3
1.2
5.4
1.8
1.4
3.2
Other gains and losses
(3.3)
(8.8)
(12.1)
(2.6)
(8.5)
(11.1)
Administrative expenses
(6.6)
(12.5)
(19.1)
(6.6)
(13.5)
(20.1)
Fi Finance costs t
(0 8) (0.8)
(5 1) (5.1)
(5 9) (5.9)
(2 2) (2.2)
(5 0) (5.0)
(7 2) (7.2)
0.0
(0.7)
(0.6)
(0.4)
(0.3)
(0.7)
(Loss) / profit before tax
(2.5)
(13.5)
(16.0)
(2.5)
(21.4)
(23.9)
Income tax expense Income tax expense (Loss) / profit for the period
2.2 2 2 (0.3)
(2.0) (2 0) (15.5)
0.2 0 2 (15.8)
(1.0) (1 0) (3.5)
(2.8) (2 8) (24.2)
(3.8) (3 8) (27.7)
0.6
(14.3)
(13.7)
(4.0)
(23.3)
(27.2)
((0.9))
((1.2))
((2.1))
0.5
((0.9))
((0.4))
Revenues
Share of profit of associates
Owners of the Parent Company Non‐controllingg interests
17
2011
Condensed Balance Sheet Numbers in CHFm
18 18
FY 2011 1H 2012
Delta
PP&E Other financial assets Other financial Inventories Current receivables Cash (equivalents) Investments in associates Other assets Total assets
969 40 478 156 79 29 332 2'083
1'038 48 491 129 93 16 344 2'159
68 9 13 (27) 13 (13) 12 76
Total equity Borrowings Payables Other liabilities Total liabilities Total liabilities & equity
1'095 536 89 362 988 2'083
1'084 608 79 388 1'075 2'159
(11) 72 (11) 26 87 76
Comments and explanations 1 2 3 4
Investments mainly in Oman and Switzerland Value changes: ERC (CHF 2 m) and Value changes: ERC (CHF 2 m) and Nasr City (CHF 6.5 m) Nasr City (CHF 6.5 m) Real estate work in progress & finished units: CHF 253 m Increase of real estate collections in Egypt
5 Impairment of investments in associates
6 Use of credit facilities from majority shareholder gyp 7 Reduced construction work in Egypt
Debt structure as of 30 June 2012 Debt by interest rate (IR) profile (in %)
Maturity profile (CHF million) 350
Fixed IR
300
Variable IR
250 200
25%
150 100 50
75%
0 2012
2013
Revolving Over Drafts
2014
2015
2016
Club Deal‐OHD AAIB
> 2016
Bi‐Lateral Loans
Additional debt information Total debt as of end June 2012: CHF 607.8 million Relationships with 28 local / international banks in seven countries
Total debt by currency (in %) AED 1% EUR 12%
Weighted average cost of debt: 7.13% Weighted average cost of debt: 7.13% EGP 35%
19
CHF 10%
JOD OMR 1% 1%
USD 40%
Condensed cash flow statement Number in CHF million
1H 2011
1H 2012
Cash generated from / (used in) operating activities
(44.5)
24.0
Interest paid
(9.5)
(22.4)
Taxes paid
(15 4) (15.4)
(5 1) (5.1)
OPERATING CASH FLOW
(69.5)
(3.4)
Payments for property, plant and equipment
(80.8)
(63.2)
15 5 15.5
69 6.9
(65.3)
(56.3)
‐
‐
Change in Borrowings Change in Borrowings
34.6
68.7
Other items
7.9
0.4
FINANCING CASH FLOW
42.5
69.1
Net (decrease)/increase in cash and cash equivalents ( )/ q
((92.3))
9.4
Cash and cash equivalents at the beginning of the year
276.5
79.4
Effects of FX changes of cash held in foreign currencies
(11.8)
3.8
Cash and cash equivalents at the end of the period q p
172.4
92.6
Other items Other items CASH FLOWS FROM INVESTING ACTIVITIES Issued capital reduction paid to shareholders
20 20
Group Capex¹ p p 300 250
Reduction R d ti of 5%
273
200 150
188
100
120
115
92
50 0 2009
2010
2011
2012 Old
2012 New
¹ Numbers in CHF million
Orascom Development CAPEX plan Orascom Development intends to further adapt its Capex p p p p plan for 2012 by 5%: y Old Capex plan 2012: CHF 120 million (as communicated with 1Q 2012 results) New Capex plan 2012: CHF 115 million
21
Agenda g Highlights 1H 2012 CEO Gerhard Niesslein
page 3
Financial Review CEO IHH Mahmoud Zuaiter ¹ page 17 p g
Business Segments CEO IHH Mahmoud Zuaiter ¹ page 23
Outlook 2012
CEO Gerhard Niesslein page 30
¹ CEO International Hotel Holding (IHH): Until 30 June 2012 CFO of Orascom Development Holding AG 22
Business Segments Overview g R Revenue
EBITDA
Ch Change
EBITDA M i EBITDA Margin
CHF Million
2011
2012
%
2011
2012
%
2011
2012
Hotels
54.2
69.0
27.3%
9.3
16.5
77.6%
17.1%
23.8%
Real Estate
27.8
37.3
34.4%
15.3
1.3
(91.5%)
55.1%
3.5%
Land
1.1
0.0
na
(0.0)
(0.6)
na
(0.8%)
na
Destination Management
8.2
8.7
5.7%
0.5
(2.7)
na
6.3%
(30.8%)
Tour Operations
1.0
1.1
3.1%
(0.1)
(0.1)
(43.3%)
(11.8%)
(6.5%)
Other Operations p
14.3
16.8
17.5% %
6.0
7.0
16.5% %
42.0% %
41.6% %
Corporate & unallocated items
‐
‐
‐
(25.6)
(24.0)
(6.4%)
na
na
106.7
132.9
24.6%
5.3
(2.6)
(148.9%)
5.0%
(2.0%)
ODH Group
23
Ch Change
Hotels Hotels market update MENA region (source: STR Global) Improved demand for leisure activities compared to a year ago Business still affected by economic crisis in Europe Mixed results with respect to average room rates (ARR) Orascom Development Hotels: 1H 2012 performance Improved performance also a result of initiated cost management Capital expenditures kept at a minimum Capital expenditures kept at a minimum UAE very high demand Taba Heights dropped due to uprising in Sinai Peninsula; all inclusive offers introduced Syria crisis affecting Marina Plaza’s performance in Jordan CHF Million
24
Year
Variance
Margin %
2011
2012
2011 / 2012 2011 / 2012
2011
2012
Revenue
54.2
69.0
27.3%
‐
‐
EBITDA
9.3
16.5
77.6%
17.1%
23.8%
Hotels: KPIs Number of Hotel Rooms
ARR ( (CHF) )
TrevPAR ( (CHF) )
Country
Destination
2011
2012
2011
2012
2011
2012
2011
2012
Egypt
El Gouna El Gouna
2 694 2,694
2 706 2,706
47%
59%
51
51
42
53
Taba Heights
2,365
2,365
49%
43%
47
55
46
46
Others Red Sea Others Red Sea
828
830
38%
56%
33
25
24
32
Floating Hotels
27
27
33%
21%
673
631
330
187
UAE
The Cove The Cove
346
346
77%
86%
136
156
184
225
Jordan
Tala Bay
260
260
55%
40%
67
69
55
42
Oman
Jebel Sifah
‐
55
‐
32%
‐
112
‐
72
Salalah Beach
‐
64
‐
42%
‐
72
‐
54
6,520
6,653
48%
54%
57
59
50
57
ODH Group ODH Group
25
Occupancy rate
Hotels: July 2012 YTD y Occupancy Rate (%) 80% 70%
68%
64%
62%
64%
68%
64%
60%
54%
50%
47%
42%
55%
57%
68%
52% 46%
44%
56%
52% 44%
40% 30%
24%
20% 10% 0% Jan‐11 Feb‐11 Mrz‐11 Apr‐11 Mai‐11 Jun‐11 Jul‐11 Aug‐11 Sep‐11 Okt‐11 Nov‐11 Dez‐11 Jan‐12 Feb‐12 Mrz‐12 Apr‐12 Mai‐12 Jun‐12 Jul‐12
Average Room Rate – ARR (CHF) Average Room Rate ARR (CHF) 80 70 60 50
71 62 55
71
59 50
46
50
53 47
54
55
59
58
59 52
49
54
40
40 30 20 10 0 Jan‐11 Feb‐11 Mrz‐11 Apr‐11 Mai‐11 Jun‐11
26
Jul‐11 Aug‐11 Sep‐11 Okt‐11 Nov‐11 Dez‐11 Jan‐12 Feb‐12 Mrz‐12 Apr‐12 Mai‐12 Jun‐12
Jul‐12
Real Estate & Construction Key Developments 1H 2012
Higher revenues compared to last year stemming mainly from Egypt and Oman Amount of reserved real estate units at level of prior year Overcapacities in construction (Egypt and Oman) Overcapacities in construction (Egypt and Oman)
CHF Million CHF Million
27
Year
Variance
Margin %
2011
2012
2011 / 2012
2011
2012
Revenue
27.8
37.3
34.4%
‐
‐
EBITDA
15.3
1.3
(91.5%)
55.1%
3.5%
Real Estate: KPIs Numbers as of end June 2011/2012
Value of Average selling contracted units contracted units price price (CHF m) ¹ (CHF / sqm)
Number of contracted contracted units
Value of Number of reserved units units reserved reserved units units (CHF m)
Country
Destination
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
Egypt
El Gouna El Gouna
10.9
10.1
2,735
2,345
18
23
4.4
6.3
7
17
Fayoum
1.4
‐
1,089
‐
10
‐
0.8
‐
3
‐
Haram City
2.5
4.8
313
333
130
234
14.1
8.6
1,001
452
Makadi
‐
1.0
‐
639
‐
22
1.6
0.2
37
3
UAE
The Cove
‐
0.2
‐
2,884
‐
1
‐
‐
‐
‐
Oman
Jebel Sifah
3.3
9.4
2,773
2,426
4
13
3.5
1.1
5
2
Salalah Beach
3.1
1.7
, 2,415
2,065 ,
9
2
0.2
‐
1
‐
Switzerland
Andermatt
41.9
23.5
18,453 16,537
17
9
18.2
11.5
8
4
Montenegro
Lustica Bay
‐
‐
‐
‐
‐
‐
‐
16.1
‐
48
2.1
0.3
, 1,323
1,626
12
3
3.6
2.7
10
14
ODH Total
65.1
50.9
3,393
1,907
200
307
46.4
46.5
1,072
540
ODH (excl. Budget Housing)
62.6
46.2
5,850
3,933
69
73
32.3
37.9
71
88
Morocco
Chbika
¹ As of end July 2012, 2012 the group contracted 354 units for a total value of CHF 55.2 55 2 million. million Reservations stand at CHF 41.9 41 9 million. million
28
Agenda g Highlights 1H 2012 CEO Gerhard Niesslein
page 3
Financial Review CEO IHH Mahmoud Zuaiter ¹ page 17 p g
Business Segments CEO IHH Mahmoud Zuaiter ¹ page 23
Outlook 2012
CEO Gerhard Niesslein page 30
¹ CEO International Hotel Holding (IHH): Until 30 June 2012 CFO of Orascom Development Holding AG 29
Capex p 2012‐2014 and fundingg Financial year Financial year
Forecasted capex Forecasted capex (in CHF million) ¹
2012
115
2013
100 ¹
¹ Additional or new projects are expected to be self‐financed
30
Funding measures Funding measures
Capex financed by CHF 125 million loan agreement Cape financed b CHF 125 million loan agreement from majority shareholder
Sale of non‐strategic assets from CHF 2,159 million balance sheet
Balance sheet structure: 1H 2012 Balance sheet structure as of end June 2012 (numbers in CHF million) 2'500 2 500
Other assets
2'500 2 500 2,158.9
Investments in associates Cash (equivalents) ( q )
2'000 1'500
344 16 93 129
2,158.9
2'000
388 79
1'500
1'000
48
Payables
608
491
Receivables
Other liabilities
1'000
Total Borrowings
Inventories 500
Other financial assets Other financial assets
1,038
1,084
500
Total equity
PP&E
0
0 1H 2012
PP&E by country (numbers in CHF million) 12.3
6.2 18.2
161.4 5.2 171.5
17.4 52.9
31
596.5
Egypt UAE Jordan Oman Morocco Switzerland Others M Montnegro Romania U.K.
1H 2012
PP&E by asset type (numbers in CHF million) Freehold land 140.4 336.2
B ildi Buildings Plant and equipment
32.8 58.1
470.0
Furniture and fixtures Property under construction
Corporate Calendar p 2012
29 November
Publication of 3Q 2012 Results
Annual General Meeting
2013
13 May
32
Contact Information
33
Ahmed El Shamy (CFO)
Phone: +41 41 874 17 17 Fax: +41 41 874 17 07
[email protected]
Till Leisner (Head Controlling & IR)
Phone: +41 41 874 88 07 Ph +41 41 874 88 07 Fax: +41 41 874 17 07
[email protected]
Sara El Gawahergy (IR M (IR Manager) )
Phone: +20 120 520 5218 sara elgawahergy@orascomdh com
[email protected]
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34
