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

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

Press Release

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

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

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

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

FY 2020 & Q4 2020 Real Estate KPIs:

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

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

FY 2020 & Q4 2020 Hotels KPIs:

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

About Orascom Development Holding (ODH):

ODH is a leading developer of fully integrated destinations that include hotels, private villas and apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. ODH's diversified portfolio of destinations is spread over 7 jurisdictions (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro, and United Kingdom), with primary focus on touristic destinations. ODH currently operates nine destinations: four in Egypt (El Gouna, Taba Heights, Makadi Heights and Byoum), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro, and Andermatt in Switzerland. ODH recently launched O West, the latest addition to its portfolio and its first project in Cairo, Egypt, located on the Sixth of October City.

Contact for Investors:
Sara El Gawahergy
Head of Investor Relations & Strategic Projects Management
Tel: +202 246 18961
Tel: +41 418 74 17 11
Mob: +41 79 156 78 49
Email: [email protected]

Contact for Media Relations:
Philippe Blangey
Partner
Dynamics Group AG
Tel: +41 432 68 32 35
Email: [email protected]
 

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