DGAP-Adhoc

Orascom Development Holding AG: 1H 2014: Orascom Development records a net profit of CHF 31.5 mn, despite continued pressure on Egypt's hotel operations.

Orascom Development Holding AG / Key word(s): Half Year Results/Half Year Results

26.08.2014 07:00

Release of an ad hoc announcement pursuant to Art. 53 KR
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Press Release

1H 2014: Orascom Development records a net profit of CHF 31.5 mn, despite
continued pressure on Egypt's hotel operations.

Orascom Development generated CHF 31.5 million in net profit attributable
to shareholders of the company after a CHF 48.0 million loss in the
comparable period. Key drivers of this result were significant overhead
savings of CHF 20 million compared to FY 2012 cost base, strong real estate
& construction revenues, compensating for a weaker hotel performance,
one-off gains related to the settlement of the Falcon case and
deconsolidation of OHC. The successful carve-out of the budget housing
operations and construction segment in Egypt marks an important milestone
in further reducing the Group's cost base.

Altdorf/Cairo, 26 August 2014 - Orascom Development Holding AG's (Orascom
Development) revenues increased in 1H 2014 by 2% to CHF 120.6 million (1H
2013: CHF 118.3 million), as strong Real Estate & Construction revenues
compensated for a weaker hotel performance. The net profit attributable to
shareholders of the company reached CHF 31.5 million after a CHF 48.0
million loss in the same period last year. The result was significantly
impacted by delivering on the Group's cost savings initiatives by achieving
CHF 20 million of overhead savings compared to FY 2012 cost base, one-off
gains related to the settlement of the Falcon case (CHF 52.6 million) and
the deemed loss of control of OHC and its subsidiaries (CHF 9.4 million).
The adjusted EBITDA for the period was CHF 10.7 million (1H 2013: 1.6
million).

Revenues in Real Estate & Construction segment more than doubled compared
to prior year

Revenues in the Real Estate & Construction segment significantly increased
to CHF 49.5 million
(1H 2013: CHF 22.3 million), equivalent to 41% of Group revenues. The
increase is mainly a result of accelerated delivery of real estate units in
Egypt (El Gouna, Ancient Sands and Makadi). The adjusted segment EBITDA
increased to CHF 15.8 million (1H 2013: CHF -4.6 million). Contracted real
estate sales increased to CHF 35.0 million (1H 2013: CHF 31.0 million),
driven by a continued strong sales momentum in El Gouna and a positive
contribution from Montenegro. In total, 403 units were sold at an average
price of CHF 1,116/m2 including the budget housing segment.

Hotels continued to suffer from travel restrictions on Egypt and inventory
loss in Taba Heights during 1H 2014, with significant improvement being