Orascom Development Holding AG
DGAP-Adhoc: Orascom Development Holding AG: expects to report a net loss in the range of CHF 145-160 million for the year 2013 (2012: CHF 97 million net loss)
Orascom Development Holding AG / Key word(s): Profit Warning/Profit Warning 19.03.2014 07:00 Release of an ad hoc announcement pursuant to Art. 53 KR --------------------------------------------------------------------------- Press Release Orascom Development expects to report a net loss in the range of CHF 145-160 million for the year 2013 (2012: CHF 97 million net loss) Orascom Development expects to report an 18-20% decrease in consolidated revenues for the year 2013 compared to the same period of last year. Based on first indications Orascom Development further expects a net loss in the range of CHF 145-160 million mainly due to the challenging market environment caused by the political instability in Egypt. The main contributors to the bottom-line loss are: reduced revenues, lower capitalization of financing costs, Egyptian Pound devaluation in addition to provisions, impairments of investments and reassessment of the recoverability of deferred tax assets Altdorf/Cairo, 19 March 2013 - First indications show that during 2013 the consolidated revenue of Orascom Development Holding's AG (Orascom Development) decreased in the range of 18-20% compared to the same period of last year. The decrease is mainly resulting from lower hotel operations in Egypt and partly due to lower real estate and construction revenues. In addition to the reduced turnover, the group's performance was impacted by high overhead costs, lower capitalization of financing costs resulting from reduced construction activities and the devaluation of the Egyptian Pound. Furthermore, one-off items including provisions, impairment of investments and reassessment of the recoverability of deferred tax assets have also significantly contributed to the net loss. In sum, Orascom Development expects a net loss after minorities in the range of CHF 145-160 million compared to a CHF 97 million net loss in the same period of last year. The full set of the year end results for FY 2013 will be published on 15 April 2014 as earlier announced. About Orascom Development Holding AG Orascom Development 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. Orascom Development's diversified portfolio of destinations is spread over eight jurisdictions (Egypt, UAE, Jordan, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with primary focus on touristic destinations and budget housing. The Group currently operates eight destinations; four in Egypt El Gouna, Taba Heights, Haram City and Makadi, The Cove in United Arab Emirates , Jebel Sifah and Salalah Beach in Oman and Andermatt in Switzerland. Orascom Development has a dual listing, with a primary listing on the SIX Swiss Exchange and a secondary listing on the EGX Egyptian Exchange. Investor Relations Contacts Sara El-Gawahergy Investor Relations Director Tel: +202 24618961 Email: ir@orascomdh.com Contact Media Relations media@orascomdh.com Disclaimer & Cautionary Statement The information contained in this e-mail, its attachment and in any link to our website indicated herein is not for use within any country or jurisdiction or by any persons where such use would constitute a violation of law. If this applies to you, you are not authorized to access or use any such information. Certain statements in this e-mail and the attached news release may be forward-looking statements, including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Forward-looking statements include statements regarding our targeted profit improvement, return on equity targets, expense reductions, pricing conditions, dividend policy and underwriting claims improvements. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and Orascom Development Holding AG's plans and objectives to differ materially from those expressed or implied in the forward looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in our key markets; (ii) performance of financial markets; (iii) levels of interest rates and currency exchange rates; and (vii) changes in laws and regulations and in the policies of regulators may have a direct bearing on Orascom Development Holding AG's results of operations and on whether Orascom Development Holding AG will achieve its targets. Orascom Development Holding AG undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. It should further be noted, that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of the full-year results. Persons requiring advice should consult an independent adviser. 19.03.2014 News transmitted by EQS Schweiz AG. The issuer is responsible for the contents of the release. EquityStory publishes regulatory releases, media releases on the capital market and press releases. The EquityStory Group distributes authentic and real-time financial news for over 1'300 listed companies. The Swiss news archive can be found at www.equitystory.ch/news --------------------------------------------------------------------------- Language: English Company: Orascom Development Holding AG Gotthardstraße 12 6460 Altdorf Switzerland Phone: +41 41 874 17 17 Fax: +41 41 874 17 07 E-mail: ir@orascomdh.com Internet: www.orascomdh.com ISIN: CH0038285679 Valor: A0NJ37 Listed: SIX End of Announcement EQS Group News-Service ---------------------------------------------------------------------------