Orascom Development Egypt (ODE) continued to deliver strong operational and financial results during the first half of 2024. The company continued to maintain its strong performance thanks to the company’s diversified revenue streams, confirming the company’s strong position and ability to face any future crises. The company’s business results during the first half of 2024 are a testament to our ability to navigate the challenging macroeconomic landscape, which affects all business environments in Egypt. Despite facing a EGP 2.2 billion currency loss in the first half of 2024, the company’s financial performance confirms our unwavering focus on continuously enhancing operational efficiency. Our flexible and diversified business model has effectively addressed inflationary pressures, with significant contributions from our unwavering commitment to innovation and operational efficiency in overcoming obstacles; resulting in growth in revenues, EBITDA, non-cash items, profits and margins. Financial Results

Q2 2024:

Q2 2024 results showed strong growth in revenues, EBITDA, non-cash items and net profit, driven by strong growth across all business segments. Total revenues increased by 86.4% to EGP 6.0 billion in Q2 2024. Gross profit increased by 164.1% to EGP 2.8 billion, with a gross profit margin of 45.8%. EBITDA and non-cash items increased by 164.7% to EGP 3.0 billion in Q2 2024, with a margin of 49.4% compared to 34.8% in Q2 2023. In line with this strong performance, net profit increased by 209.8% to EGP 1.9 billion in Q2 2024, the highest quarterly profit in the company’s history.

H1 2024:

Total revenues by the end of H1 2024 reached approximately EGP 10.2 billion, an increase of 64.9% compared to last year. Despite the fluctuations and uncertainties resulting from political and economic events, the company’s profitability continued to improve during the year, resulting in significant growth in revenues, EBITDA and non-cash items, as well as profits and profit margins. The significant increase is mainly due to the acceleration of construction across all of the company’s projects, which resulted in real estate revenues reaching EGP 5.7 billion, up 42.5% compared to H1 2023, in addition to the strong and noticeable improvement in the performance of the Hotels and City Management (Recurring Income) sectors, as revenues from the Recurring Income sectors increased by 45.1% to reach EGP 3.2 billion during H1 2024 compared to the same period in 2023. Gross profit achieved by the end of H1 2024 increased by 95.2% to reach EGP 4.2 billion and a gross profit margin of 40.9% compared to a gross profit margin of 34.6% during H1 2023. This improvement in revenue and gross profit performance confirms our operational superiority and resilience in the face of inflation and the positive impact of key strategic initiatives such as the sale of land in El Gouna for EGP 1.6 billion. EBITDA and non-cash items also increased by 98.8% to EGP 4.6 billion, with an operating profit margin of 44.6%, reflecting the company’s strong operational performance. On the other hand, other profits and losses recorded a loss of EGP 2.3 billion during H1 2024. The loss is due to the depreciation of the Egyptian pound against foreign currencies as a result of foreign currency loans. Interest and financing expenses increased by 78.1% to EGP 856.9 million due to the increase in interest rates in Egypt in general. In line with this strong performance, it is worth noting that net profit after excluding non-recurring gains (which includes foreign exchange losses or gains) increased by 135.7% from EGP 1.3 billion in H1 2023 to EGP 3.2 billion in H1 2024. Thus, the company achieved a net profit of EGP 942.7 million in H1 2024 compared to EGP 1.0 billion in H1 2023. On the other hand, the company’s cash balance amounted to approximately EGP 7.4 billion in H1 2024, and our cash balance in foreign currencies amounted to approximately USD 70 million. The balance of loans from banks amounted to EGP 7.9 billion in H1 2023. Net debt amounted to EGP 3.1 billion. Group Real Estate Sector: The company’s real estate sales during the first half of 2024 amounted to approximately EGP 15.7 billion, an increase of 110% over the same period last year, which is the highest semi-annual sales in the company’s history.

H1 2024:

Total revenues by the end of H1 2024 reached approximately EGP 10.2 billion, an increase of 64.9% compared to last year. Despite the fluctuations and uncertainty resulting from political and economic events, the company's profitability continued to improve during this year, resulting in significant growth in revenues, earnings before interest, taxes, depreciation, amortization, non-cash items, as well as profits and profit margins. The significant increase is mainly due to the acceleration of construction across all of the company’s projects, which resulted in real estate revenues reaching EGP 5.7 billion, up 42.5% compared to H1 2023, in addition to the strong and noticeable improvement in the performance of the Hotels and City Management (Recurring Income) sectors, as revenues from the Recurring Income sectors increased by 45.1% to reach EGP 3.2 billion during H1 2024 compared to the same period in 2023. Gross profit achieved by the end of H1 2024 increased by 95.2% to reach EGP 4.2 billion and a gross profit margin of 40.9% compared to a gross profit margin of 34.6% during H1 2023. This improvement in revenue and gross profit performance confirms our operational superiority and resilience in the face of inflation and the positive impact of key strategic initiatives such as the sale of land in El Gouna for EGP 1.6 billion. EBITDA and non-cash items also increased by 98.8% to EGP 4.6 billion, with an operating profit margin of 44.6%, reflecting the company’s strong operational performance. On the other hand, other profits and losses recorded a loss of EGP 2.3 billion during H1 2024. The loss is due to the depreciation of the Egyptian pound against foreign currencies as a result of foreign currency loans. Interest and financing expenses increased by 78.1% to EGP 856.9 million due to the increase in interest rates in Egypt in general. In line with this strong performance, it is worth noting that net profit after excluding non-recurring profits (which includes foreign exchange losses or gains) increased by 135.7% from EGP 1.3 billion in H1 2023 to EGP 3.2 billion in H1 2024. Thus, the company achieved a net profit of EGP 942.7 million in H1 2024 compared to EGP 1.0 billion in H1 2023. On the other hand, the company’s cash balance amounted to approximately EGP 7.4 billion in H1 2024, and our cash balance in foreign currencies amounted to approximately USD 70 million. The balance of loans from banks amounted to EGP 7.9 billion in H1 2023. Net debt amounted to EGP 3.1 billion. Group Real Estate Sector: The company's real estate sales during the first half of 2024 amounted to approximately EGP 15.7 billion, an increase of 110% over the same period last year, the highest semi-annual sales in the company's history. The company succeeded in achieving EGP 6.9 billion during the second quarter of 2024, an increase of 46.2% compared to EGP 4.7 billion during the second quarter of 2023. Thus, the company's real estate sales during the first half of 2024 amounted to approximately EGP 15.7 billion, an increase of 109.5% over the first half of 2023, the highest semi-annual sales achieved in the company's history. It is worth noting that our international sales remain a key focus, accounting for nearly 40% of our real estate sales, which is evidence of Orascom's strong presence in the international market and the confidence of our customers. It is worth noting that the increase in real estate sales resulted from an increase in the average price per square meter in all destinations, in addition to an increase in the number of units sold, which increased by 6.6% to reach 873 units sold in the first half of 2024. El Gouna ranked first in the group’s new real estate sales in the first half of 2024 with a percentage of (50% of sales), followed by O West with (36% of sales), and finally Makadi Heights with (14% of sales). On the construction and delivery front, the company continues to accelerate the construction of real estate units, and plans to deliver all units expected to be delivered during 2024. Real estate revenues continued their upward trend, increasing by 44.3% to reach EGP 2.9 billion in the second quarter of 2024; Resulting in EGP 5.7 billion in real estate revenues during the first half of 2024, an increase of 42.5% compared to the same period in 2023. Operating earnings before interest, taxes, depreciation, amortization and non-cash items increased by 36.8% to reach EGP 2.3 billion and a margin of 41%. While real estate cash collections increased by 978.8% to reach EGP 7.4 billion during the first half of 2024. Deferred revenues from real estate that were not recognized in the Group’s financial statements for the financial periods extending to 2027 also increased by 66.4% to reach EGP 30.3 billion, providing a strong view of our real estate revenues across all our destinations over the next 3-4 years.
Group Hotels Sector: A qualitative leap in the Group’s hotels sector as revenues increased by 118.2% to reach EGP 1.4 billion despite various economic and political challenges around the world

Our hotels’ proven business model once again delivered impressive results despite various economic and political challenges around the world. Our hotels showed strong growth, driven primarily by higher average room rates. On a quarterly basis, our hotels performed strongly despite adverse conditions, with total revenues increasing by 42.5% to EGP 1.2 billion, driving total operating profit to EGP 517.9 million, up 24.9% compared to Q2 2023. This growth was driven by our hotels’ ability to maintain good occupancy levels and high room rates despite the challenges, resulting in strong financial results. Operating EBITDA increased by 64.2% to EGP 578.8 million, with a margin of 50%. In line with this strong performance, total hotel revenues increased by 34% in H1 2024 to EGP 1.9 billion, while total operating profit also increased by 18.8% to EGP 886.7 million in H1 2024. EBITDA increased by 49.4% to EGP 865.1 million in H1 2024, with a margin of 47% versus 42%, due to improved operational efficiency. This strong financial performance highlights our hotels’ ability to adapt and excel in the face of market challenges. Significant investments have been made to develop our hotels, with the aim of delivering an exceptional guest experience. Despite the ongoing challenges facing the hospitality sector, we are committed to fine-tuning our strategies to deliver strong financial performance and superior customer service. City Management Sector: The Group’s recurring revenues continued to grow, with revenues increasing by 64.2% to EGP 1.3 billion in H1 2024.

The City Management Sector continued its positive results and effective contribution for the second consecutive quarter to the Company’s business results, and continued to secure a strong revenue stream for the Group. The sector continued to achieve strong financial results, both in terms of revenues and profit margins, based on the successful restructuring. Revenues increased by 55.3% in Q2 2024 to reach EGP 687.3 million. EBITDA and non-cash items increased by 78.1% to EGP 241.8 million in Q2 2024. Total revenues from the Group’s City Management segment increased by 64.2% to EGP 1.3 billion in H1 2024. EBITDA and non-cash items increased by 98.3% to EGP 479.1 million with a margin of 36% versus 30% due to improved operational efficiency.