Orascom Development : Financial StatementsQ1 2024

Orascom

Development

Holding AG

Condensed Consolidated Interim Financial Statements (unaudited)

3 Months 2024

Contents

Page

Unaudited condensed consolidated statement of comprehensive income	F-3
Unaudited condensed consolidated statement of financial position	F-5
Unaudited condensed consolidated statement of changes in equity	F-7
Unaudited condensed consolidated statement of cash flow	F-8
Notes to the unaudited condensed interim consolidated financial statements	F-9 to F-24

F-2

Unaudited condensed consolidated statement of comprehensive income

for the period ended 31 March 2024
CHF	Notes
CONTINUING OPERATIONS
Revenue	7
Cost of sales
Impairment losses recognised on receivables
Gross profit
Investment income
Other gains	8
Administrative expenses
Finance costs	9
Share of (losses)/gains of associates	17
Other losses	10
(Loss)/profit before tax
Income tax income/(expenses)	11
(Loss)/profit for the period	7
Other comprehensive loss, net of income tax
Items that will not be reclassified subsequently
to profit or loss
Net gain on revaluation of financial assets at
FVTOCI
Items that may be reclassified subsequently to
profit or loss
Exchange differences arising on translation of
foreign operations	23.2

Total other comprehensive loss for the period, net of tax

Total comprehensive loss for the period

Three months ended	Three months ended
31 March 2024	31 March 2023

151,543,139130,956,326

(120,551,292)(95,826,061)

(76,669)(268,938)

30,915,17834,861,327

6,928,4074,112,578

5,866,62589,120

(9,172,341)(9,820,618)

(17,627,207)(10,642,901)

(1,160,379)7,634,538

(59,515,398)(13,702,793)

(43,765,115)12,531,251

8,039,520(2,001,391)

(35,725,595)10,529,860

2,1312,138

2,1312,138

(60,024,155)(58,457,081)

(60,024,155)(58,457,081)

(60,022,024)(58,454,943)

(95,747,619)(47,925,083)

F-3

Unaudited condensed consolidated statement of comprehensive income - continued

for the period ended 31 March 2024

CHF	Notes	Three months ended	Three months ended
		31 March 2024	31 March 2023
(Loss)/profit attributable to:
Owners of the Parent Company		(34,140,990)	4,651,389
Non-controlling interests		(1,584,605)	5,878,471
		(35,725,595)	10,529,860
Total comprehensive loss attributable to:
Owners of the Parent Company		(72,374,216)	(35,337,876)
Non-controlling interests		(23,373,403)	(12,587,207)
		(95,747,619)	(47,925,083)
(Loss)/earnings per share from continuing
operations
Basic	12	(0.57)	0.12
Diluted	12	(0.57)	0.12

Naguib S. Sawiris	Ashraf Nessim
Chairman of the Board	Group CFO

F-4

Unaudited condensed consolidated statement of financial position

at 31 March 2024

CHF	Notes	31 March 2024	31 December 2023
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	14	692,157,438	723,603,406
Investment property	15	41,060,123	42,155,911
Goodwill	16	971,605	1,391,730
Investments in associates	17	41,257,381	49,009,962
Non-current receivables	18	90,790,286	116,310,911
Deferred tax assets		25,514,801	12,299,172
Other financial assets		945	1,411
Total non-current assets		891,752,579	944,772,503
CURRENT ASSETS
Inventories	19	344,879,095	434,612,307
Trade and other receivables	18	135,648,666	171,532,988
Current receivables due from related parties		28,862,491	18,411,517
Other current assets	20	63,091,339	64,336,582
Cash and bank balances	21	214,491,002	213,850,134
Total current assets		786,972,593	902,743,528
Total assets		1,678,725,172	1,847,516,031

F-5

Unaudited condensed consolidated statement of financial position - continued

at 31 March 2024

CHF	Notes	31 March 2024	31 December 2023
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
Issued capital	22	299,111,830	299,111,830
Reserves	23	257,794,774	295,905,192
(Accumulated losses)		(253,318,719)	(219,171,003)
Equity attributable to owners of the Parent Company	303,587,885	375,846,019
Non-controlling interests		136,342,313	159,715,716
Total equity		439,930,198	535,561,735
NON-CURRENT LIABILITIES
Borrowings	24	339,380,800	286,847,745
Trade and other payables	25	171,582,360	206,657,108
Contract liabilities		30,597,116	43,827,432
Notes payable		4,054	5,807
Provisions		22,786,160	21,101,315
Retirement benefit obligation		745,470	744,665
Deferred tax liabilities		16,404,809	18,852,619
Total non-current liabilities		581,500,769	578,036,691
CURRENT LIABILITIES
Trade and other payables	25	36,143,052	36,933,191
Borrowings	24	158,838,522	193,670,204
Due to related parties		14,158,259	17,610,169
Current tax liabilities		37,936,806	41,095,483
Provisions		29,920,831	38,672,057
Other current liabilities	26	380,296,735	405,936,501
Total current liabilities		657,294,205	733,917,605
Total liabilities		1,238,794,974	1,311,954,296
Total equity and liabilities		1,678,725,172	1,847,516,031

Naguib S. Sawiris	Ashraf Nessim
Chairman of the Board	Group CFO

F-6

Unaudited condensed consolidated statement of changes in equity for the period ended 31 March 2024

				Share-based	PP&E	Investments		Foreign	Reserve from		Attributable	Non-
	Issued	Share	Treasury	General	currency	common	(Accumulated	to owners of
CHF	payment	revaluation	revaluation	controlling	Total
Capital	premium	shares	reserve	translation	control	losses)	the Parent
	reserve	reserve	reserve	interests
					reserve	transactions		Company
Balance at 1 January 2023	202,968,745	836,330,008	(2,121,707)	1,197,364	4,638,989	(1,126,606)	4,916,868	(441,824,184)	(72,519,921)	(247,650,476)	284,809,080	157,949,560	442,758,640
Profit for the period	-	-	-	-	-	-	-	-	-	4,651,389	4,651,389	5,878,471	10,529,860
Other comprehensive income for the period, net of income tax	-	-	-	-	-	2,138	-	(39,991,403)	-	-	(39,989,265)	(18,465,678)	(58,454,943)
Total comprehensive income for the period	-	-	-	-	-	2,138	-	(39,991,403)	-	4,651,389	(35,337,876)	(12,587,207)	(47,925,083)
Acquisition of treasury shares	-	-	(135,838)	-	-	-	-	-	-	-	(135,838)	-	(135,838)
Disposal of treasury shares due to Board of Directors distribution	-	-	94,305	-	-	-	-	-	-	20,225	114,530	-	114,530
Other disposal of treasury shares	-	-	147,539	-	-	-	-	-	-	(29,682)	117,857	-	117,857
Share-based payments (note 23.1)	-	-	-	128,289	-	-	-	-	-	-	128,289	-	128,289
Non-controlling interests' share in equity of consolidated	-	-	-	-	-	-	-	-	-	-	-	2,535,003	2,535,003
subsidiaries
Balance at 31 March 2023	202,968,745	836,330,008	(2,015,701)	1,325,653	4,638,989	(1,124,468)	4,916,868	(481,815,587)	(72,519,921)	(243,008,544)	249,696,042	147,897,356	397,593,398
Balance at 1 January 2024	299,111,830	872,217,117	(1,517,585)	1,314,355	4,638,989	(1,123,684)	4,916,868	(512,020,947)	(72,519,921)	(219,171,003)	375,846,019	159,715,716	535,561,735
Loss for the period	-	-	-	-	-	-	-	-	-	(34,140,990)	(34,140,990)	(1,584,605)	(35,725,595)
Other comprehensive income for the period, net of income tax	-	-	-	-	-	2,131	-	(38,235,357)	-	-	(38,233,226)	(21,788,798)	(60,022,024)
Total comprehensive income for the period	-	-	-	-	-	2,131	-	(38,235,357)	-	(34,140,990)	(72,374,216)	(23,373,403)	(95,747,619)
Acquisition of treasury shares	-	-	(20,373)	-	-	-	-	-	-	-	(20,373)	-	(20,373)
Other disposal of treasury shares	-	-	14,892	-	-	-	-	-	-	(6,726)	8,166	-	8,166
Share-based payments (note 23.1)	-	-	-	128,289	-	-	-	-	-	-	128,289	-	128,289
Balance at 31 March 2024	299,111,830	872,217,117	(1,523,066)	1,442,644	4,638,989	(1,121,553)	4,916,868	(550,256,304)	(72,519,921)	(253,318,719)	303,587,885	136,342,313	439,930,198

F-7

Unaudited condensed consolidated statement of cash flow

for the period ended 31 March 2024

CHF

Cash generated from / (used in) operations

Interest paid

Income tax paid

Net cash generated from / (used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for property, plant and equipment Proceeds from sale of investments Payments for treasury bills

Dividends received Interest received

Net cash (used in) investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Net cash flow on treasury shares

Repayment of borrowings

Proceeds from borrowings

Net cash generated from financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Effects of exchange rate changes on the balance of cash held in foreign currencies

Cash and cash equivalents at the end of the period

Notes	Three months ended	Three months ended
	31 March 2024	31 March 2023
	42,437,347	(18,198,637)
	(14,252,211)	(9,404,305)
	(21,448)	(144,635)
	28,163,688	(27,747,577)
	(17,800,737)	(18,618,234)
	5,866,625	-
	(1,032,657)	-
	1,229,992	3,119,051
	4,942,945	2,200,732
	(6,793,832)	(13,298,451)
	(12,207)	(17,980)
	(11,906,821)	(2,065,976)
	34,134,546	48,238,607
	22,215,518	46,154,651
	43,585,374	5,108,623
	213,850,134	180,298,029
	(42,944,506)	(30,044,569)
21	214,491,002	155,362,083

F-8

Notes to the unaudited condensed consolidated interim financial statements

1. Description of business

Orascom Development Holding AG ("ODH" or "the Parent Company"), a limited company incorporated in Altdorf, Switzerland, is a public company whose shares are traded on the SIX Swiss Exchange.

The Company and its subsidiaries (the "Group") is a leading developer of fully integrated towns that include hotels, private villas and apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. The Group's diversified portfolio of projects is spread over seven jurisdictions (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with primary focus on touristic towns and recently primary housing. The Group currently operates ten destinations, five in Egypt (El Gouna, Taba Heights, Fayoum, Makadi and O-West), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro and Cornwall in the UK.

2. Statement of compliance

The Group applies International Financial Reporting Standards (IFRS). The unaudited condensed consolidated interim financial statements have been prepared in accordance with the requirements of IAS 34, Interim Financial Reporting, and should be read in conjunction with the audited consolidated financial statements for the year ended 31 December 2023.

3. Basis of preparation

The unaudited condensed consolidated interim financial statements include all the subsidiaries controlled by the Parent Company and are presented in Swiss Francs (CHF).

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses, as well as the disclosure of contingent liabilities.

Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgments made by management in the application of IFRS and key sources of estimation uncertainties were the same as those applied to the consolidated financial statements of the year ended 31 December 2023.

F-9

4. Adoption of new and revised International Financial Reporting Standards

4.1. Standards and interpretations effective in the current period The following revised standards are effective for the current period:

Revised Standards

IFRS 7 and	Supplier finance arrangements (Amendments
IAS 7
IFRS 16	Lease liability in a sale leaseback (Amendments)
IAS 1	Classification of liabilities as current or non-current (Amendments)

These amended Standards have not had any significant impact on the unaudited condensed consolidated financial statements.

4.2. Standards and interpretations not yet adopted

At the date of authorization of these unaudited condensed consolidated interim financial statements, the Group has not adopted the following amended standard that has been issued but is not yet effective. It will be effective for annual periods beginning on or after the dates described below.

New and Revised Standards and Interpretations	Effective from
IFRS 18	Presentation and Disclosures in Financial Statements (New Standard)	1 January 2027
IAS 21	Lack of exchangeability of currencies (Amendments)	1 January 2025

Management of the Group does not expect that the adoption of the amended Standard listed above will have a material impact on the financial statements of the Group in future periods, except for the presentation and disclosure of the financial statements. In addition to the amended Standard mentioned above, there are other Standards applicable starting next year, which are immaterial or not applicable for the Group.

5. Significant accounting policies

The unaudited condensed consolidated interim financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair value or amortized cost, as appropriate, and investment properties that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The Group is not subject to any significant seasonality or cyclicality. The same accounting policies, presentation and methods of computation are followed in these unaudited condensed consolidated interim financial statements as were applied in the preparation of the Group's consolidated financial statements for the year ended 31 December 2023.

F-10