DISCLAIMER Certain information contained in this document consists of - - PowerPoint PPT Presentation

DISCLAIMER

Certain information contained in this document consists of forward‐ Certain information contained in this document consists of forward respect to future events and are subject to certain risks, uncert results, performance or achievements of the Company to be materia that may be expressed or implied by such forward‐looking statement climate of Egypt and the Middle East and changes in business strate climate of Egypt and the Middle East and changes in business strate uncertainties materialize, or should underlying assumptions prove in such forward‐looking statements. Recipients of this document a

• statements. The Company undertakes no obligation to republish

circumstances circumstances.

2 of 24

looking statements reflecting the current view of the Company with looking statements reflecting the current view of the Company with tainties and assumptions. Many factors could cause the actual ally different from any future results, performance, or achievements ts, including worldwide economic trends, the economic and political egy and various other factors Should one or more of these risks or egy and various other factors. Should one or more of these risks or ncorrect, actual results may vary materially from those described in re cautioned not to place any reliance on these forward‐looking revised forward‐looking statements to reflect changed events or

Elsewedy Electric Investor Presentation 2010

FULL‐SERVICE INTEGRATION

Elsewedy Electric has built a fully integrated energy solutions provider: From raw materials such as metals and plastics to inputs across the spectrum of wires, cables and electrical products, to contracting and turn key infrastructure projects and electricity contracting and turn key infrastructure projects and electricity generation through competitively advantaged wind technology. Elect Prod Wind Energy Generation Wires and Cables Engineering and Contracting Elsewedy Electric provides integ sectors to four Energy / Infrastructure Industrial

3 of 24

trical ducts Telecom Transformers Energy Measurement and Management grated solutions through seven main markets. Commercial Residential

Elsewedy Electric Investor Presentation 2010

GEOGRAPHIC PRESENCE

T d El d El i i i l d Today, Elsewedy Electric is a regional and tactically global integrated cables and electrical products manufacturer and a turn key services provider with more than 10,000 employees working at 30 production facilities in 15 working at 30 production facilities in 15 countries

EGYPT

• Cables Capacity: 120,000 tons
• Copper Rod Capacity: 120,000 tons
• PVC capacity: 81,000 tons

NIGERIA

• Transformers Capac

SYRIA

• Transformers Capac

ALGERIA

• Cables Capacity: 21,000 tons

YEMEN

• Cables Capacity: 10,000 tons

Transforme Wires and Cables

SAUDI ARABIA

• Cables Capacity: 36,000 tons

SYRIA

• Cables Capacity: 28,000 tons

QATAR

• Cables Capacity: 18,000 tons

SUDAN

• Transformers Capac

ZAMBIA

• Transformers Capac

EGYPT

• Transformers Capac

LIBYA (In Construction)

• Cables Capacity: 15,000 tons

ETHIOPIA

• Cables Capacity: 10,000 tons

SUDAN

• Cables Capacity: 12,000 tons

4 of 24

GHANA

• Road lighting Poles

EGYPT

• Electrometers Capacity: 2 mn meters

Electrical Products Wind Energy Generation

city: 750 MVA city: 2,800 MVA SPAIN

• 100 turbines

EGYPT

• Wind towers

ers

MALAYSIA

• Electrometers Capacity: 250,000

SLOVENIA

• Electrometers Capacity: 2.5 mn meters

city: 450 MVA city: 450 MVA city: 8500 MVA

Elsewedy Electric Investor Presentation 2010

GEOGRAPHIC PRESENCE

Elsewedy Electric’s comprehensive worldwide distribution network reaches around the globe

Elsewedy T&D Egypt Algeria Ethiopia Regional Office United Kingdom Belgium Germany Equatorial Guinea Malawi Jordan Egy Alge Ethi PS Ghana Equatorial Guinea Sudan Mozambique Zambia Rwanda Switzerland Sweden Austria Slovenia Italy Libya Iraq Kuwait Qatar Bahrain UAE Oman Nige 5 of 24 Rwanda Libya Australia Oman Singapore Main Export Market Colombia Uruguay Brazil Uganda Rwanda South Africa Cyprus KSA Kuwait pt eria iopia SP United Kingdom Morocco Cameroon Equatorial Guinea Congo DRC Angola Zimbabwe Mozambique Madagascar Malawi Kenya Ethiopia UAE Kazakhstan India Russia Malaysia eria Elsewedy Electric Investor Presentation 2010 Angola Ethiopia

Corporate Structure : Business Line Review p

BUSINESS LINE REVIEW

Elsewedy Electric’s market oriented delivers full energy solutions through seven business lines

Wind Energy Wires Engineering

 Power cables  Porcela  Wind Turbines  Transmission and

Electrical gy Generation and Cables g g and Contracting

 Special cables  Winding wires Ra materials  Cables  Explos equipm  Wind towers  Rotor blades (Planned expansion) distribution  Engineering and generation  Raw materials  Fiber g  Wind farm development  Operation and maintenance  Balance of plant 7 of 24

Telecom Energy Measurement

ain Insulators  Power transformers  Meters  Fiber optics

Products Transformers gy and Management

s accessories ion proof ment  Oil immersed distribution transformers Cast resin  Automation businesses  Meter testing eq ipment p cables  Copper telecom cables Fiber optics glass poles  Cast resin transformers  Modular Solutions  Service equipment  Fiber optics accessories  Copper telecom accessories  FTTX projects  Backbone projects Elsewedy Electric Investor Presentation 2010

BUSINESS LINE REVIEW: WIRES AND CABLES

Elsewedy Electric has significantly extended its core wires and cables capacity in recent years, more than doubling capacity since 2007 to approximately 260,000 tons in 2010

Egypt

Elsewedy is the sizable market leader Low cost manufacturing and raw material base

Algeria

15% import tari Market deficit : Low cost manufacturing and raw material base Export hub

Saudi Arabia

Market deficit : from 2005 to 20 Tax exemption Under develope Largest cable market in the Middle East – expected $140.3 billion needed on electricity projects over the next decade Preferential treatment to local players

Qatar

First cable prod Solid economic d d l

Syria

Leading market share  Sizable domestic market with deficit productions :

Yemen

First and only p Under develope production deficit expected to increase from 1,000 Megawatt (MW) in 2010 to 1,800 MW by 2012 Proximity to Iraq (a significant deficit market, approximately 40% undersupplied, and Tax exemption Under develop

Ethiopia

export destination) Tax exemption Low cost production

p

First and only p Tax exemption Under develop

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ffs consumption increase of app 40%

Sudan

First & only producer Net Import nation Tax exemption consumption increase of app. 40% 010 ed infrastructure

E i ti C it (‘000 t )

p Government partnership Under developed infrastructure ucer growth d f

120 36 28 18 21 12 10 10 Existing Capacity (‘000 tons)

producer ed infrastructure ped Infrastructure

125 147 203 250 260 88 100 135 150 155

Cables Production Capacity and Sales Volume ( in ‘000 tons)

producer ped infrastructure

2007 2008 2009 2010e 2011e Cables Production Capacity (tons) Sales (tons) Elsewedy Electric Investor Presentation 2010

BUSINESS LINE REVIEW: ENGINEERING AND CONSTRUCTION

Elsewedy Electric’s Engineering and Construction groups deliver electricity generating assets and transmission and distribution (T&D) networks on an EPC basis. The company also expects to own and operate assets across the power generation and distribution sector.

Engineering a

Elsewedy Electric T&D

Power System Projects Elsewedy T&D

P S t P j t (PSP) Elsewedy Electric T&D supplies, installs and commissions

• verhead transmission lines and

substations on a turnkey basis for national utilities companies Power System Projects (PSP) provides EPC solutions to power generating and high voltage substation projects p across the Middle East and Africa

9 of 24

N

nd Construction

Through Egytech – a wholly

Elsewedy Cables

Elsewedy Power

Elsewedy Power

Through Egytech a wholly

• wned production facility

leveraging the most advanced processes and technologies – Elsewedy Cables supplies state‐ Elsewedy Power develops, designs, builds and

• perates power assets. The

unit acts as Elsewedy Electric’s Engineering and y pp

• f‐the‐art power cables to

generation and T&D projects worldwide g g Construction operations integrator – directing contracts to Elsewedy Electric T&D and PSP and internal

• suppliers. As a distinct

entity, Elsewedy Power also works with experienced developers, EPC contractors d li b d d

Elsewedy Electric Investor Presentation 2010

and suppliers based around the world.

BUSINESS LINE REVIEW: TRANSFORMERS

Elsewedy Transformers producers a full range of low, medium and high voltage transformers ‐‐ including power (step up) and distribution (step down) transformers . —Power plants

Power Transformers

Power plants —T&D substations —Industrial facilities —Subway, metro and other transportation systems

Egypt

First and only producer of power (step

Nigeria

First and only total tr up) transformers in the region Low cost manufacturing base Export hub

S i

y Under developed Inf the lowest per capita electricity in the wor Tax exemption

Syria

First and only Transformers producer Proximity to Iraq (untapped export market) T ti Partnership with the

Sudan

First and only transfo Tax exemption Low cost production y Tax exemption Partnership with the Under developed Inf

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—High rise buildings

Distribution Transformers

—Hospitals —Wind farms —Airports —Commercial complexes ransformer producer

Zambia

First and only Transformers producer hi hl d k p frastructure – one of a supplies of rld Access to highly untapped markets Partnership with the government Under developed infrastructure e Government

• rmers producer

8500

Existing Capacity (MVA)

p government rastructure

2800 750 450 450

Egypt Syria Nigeria Sudan Zambia

Elsewedy Electric Investor Presentation 2010

Egypt Syria Nigeria Sudan Zambia

BUSINESS LINE REVIEW: METERS

In 2007 Elsewedy Electric acquired Slovenia’s Iskraemeco, one of the w most technologically advanced producers of metering equipment and s

E M Energy Me and Man

Iskraemeco

Iskraemeco is one of the world’s most technologically advanced producers

• f metering equipment. Iskraemeco

currently supplies over 1 million smart meters mostly to countries in Europe and the Gulf

11 of 24

world’s services.

asurement agement

Iskra Amesi

Iskra Amesi, an engineering service provider and holding of Iskraemeco provides services and equipment for testing metering equipment and industrial automation

Elsewedy Electric Investor Presentation 2010

BUSINESS LINE REVIEW: WIND

Elsewedy for Wind Energy Generation (SWEG) integrates the world class t production expertise of Germany’s SIAG Group, Spain’s M. Torres Olvega In Elsewedy Electric. The business line is a significant step for wind power in East.

SWEG – Elsewedy for W

• M. Torres Olvega

d l ( ) Wind Towers – SET W Industrial (MTOI) Gearless Wind Turbines SIAG Elsewedy Towers (SET) SWEG MTOI currently produces is a joint venture between SIAG ‐ Schaaf Industrie Aktiengesellschaft, a leading German steel manufacturer, and Elsewedy Elsew and c devel TWT turbines (1.65 MW) in Spain. A newly developed turbine is time‐phased to enter the market by the end of Electric, to build wind towers for the MEA region and the South European market.

• 2011. Production capacity

is expected to remain at 100 turbines from 2011 to 2013. SWEG’s Solutions : Wind Turbines Supply

• TWT’s direct drive gearless technology is a unique contribution to the wind

energy industry in terms of reliability, performance, maintenance costs. Operation and Maintenance

• SWEG operates and services all critical wind energy components: Wind

turbines, wind towers and rotor blades.

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technology and ndustrial (MTOI) and Africa & the Middle

Wind Energy Generation

ind Farm Development l d Operations and l d Balance of plant – Elsewedy bl l d – Elsewedy Power Maintenance – Elsewedy Power Cables, Elsewedy Transformers, Elsewedy Electrical Products (ECMEI), Iskraemeco G coordinates with With the acquired SWEG, along with Elsewedy wedy Power as developer

• ‐developer of wind farm
• pments.

know‐how of industry leading MTOI, SWEG continues to focus on expanding its

• perations and

, g y Engineering and Contracting companies, acts as system integrator, executing balance of plant projects with support from across maintenance offerings. pp Elsewedy operations Turnkey Solutions & EPC

• SWEG is integrating and utilizing all capacities within Elsewedy Electric to

provide specialized and complete services to the wind energy sector (like additional cables, switchgears, transformers and other products and services). Wind farm Co‐development

• SWEG explores Development & IPP business opportunities to support clients

and ensure successful projects.

Elsewedy Electric Investor Presentation 2010

BUSINESS LINE REVIEW: ELECTRICAL PRODUCTS

In June 2008 Elsewedy Electric acquired the Egyptian Company for Man Electric Insulator (ECMEI), the Middle East’s leading ceramics insulators manufacturer.

Electrical

ECMEI Fiber Gla

In Egypt and Gha United Industries Electric Ghana, re company produce ECMEI was established in 2004 and today produces 7000 tons of different electric ceramic insulators, with a particular p y p poles for various purposes, includi and over head tra p expertise in high tension with various applications

13 of 24

nufacturing s

Products

ass Poles Explosion Proof Products

na –through and Elsewedy espectively – the es fiber glass In 2008 the company established Elsewedy SEDCO, a group specializing in explosion proof products for the petroleum g electricity ng street lighting ansmission lines p p

• sector. Elsewedy SEDCO supplies

bulk electricity goods to the local Egyptian and international petroleum sector.

Elsewedy Electric Investor Presentation 2010

Financial Performance : Recent Reporting

MANAGEMENT REVIEW

El Se ed Electric Recorded Do ble Digit Gro th in Re en es Gros El Sewedy Electric Recorded Double Digit Growth in Revenues, Gros Profit and EBITDA for FY 2010, with Net Income reaching LE 795.5 million. Net revenues reached EGP 12,902 billion for yearend 2010, up 39% compared EGP3,690 billion, 14% higher compared to the previous quarter and 49% higher Gross profit totaled EGP1,245 billion in yearend 2010, up 29% from the same p h h h higher than 3Q2010. Net profit climbed to EGP795 million in yearend 2010, 26% higher than the sam million, down 49% compared to 3Q2010.

Revenue (LE millions)

12 902

Gross Profit (LE million)

12,902 2 323 3,168 5,746

9,348

11,445 9,290

804.5 1,233.6

2004 2005 2006 2007 2008 2009 2010

2,323

2004 2005 2006 2007

437.1 476.7 804.5

15 of 24

Wire & Cables Electrical Products Turnkey Projects Wire & Cable Electrical Prod

s to the same period of 2009. Revenues for 4Q2010 reached than the same period of 2009. period of 2009. 4Q2010 gross profit reached EGP494 million, 1% me period of 2009. Net profit for 4Q2010 reached EGP97

828 796

Net Profit (LE millions)

1,526.7 1,543.2 1,988 330 508 724 828 634 796

2008 2009 2010 2005 2006 2007 2008 2009 2010 Elsewedy Electric Investor Presentation 2010

ducts Turnkey Projects

MANAGEMENT REVIEW

Wires and Cables revenues reached EGP 2,431 million in the 4Q2010 down 3% from EGP

Wires & Cables Segment Turnkey Projects

Revenues from turnkey a business reached EGP 72 million in the 4Q2010, down 3% from EGP 2,498 million in the 3Q10.

Sales volume expanded 11% in yearend 2010 compared to the same period of 2009, to 150,964 tons from 135,415 tons in yearend 2009. Volumes reached 33,660

business reached EGP 72 77% Q‐o‐Q from EGP 410 quarter.

Margins remained robust, pus fourth quarter 37% higher to

(EGP millions) 3Q‐10

tons in 4Q10, slipping 15% Q‐o‐Q from 39,635 tons in 3Q10. 109 million in the third quarte

Revenues Wires & Cables 2,499 Turnkey Projects 410 Meters 191 Transformers 71 Other Electrical Products (Including Wind) 55 Gross Profit Wires & Cables 308 Turnkey Projects 109 Meters 45 Transformers 9 Other Electrical Products (Including Wind) 18 Gross Profit Margin Wires & Cables 12.3% Turnkey Projects 26% Meters 23.6% Transformers 12.0%

16 of 24

Revenues from the transformers segment increased substantially to reach LE 412 million during FY 2010

Transformers Segment

and contracting 27 million for 4Q10 up substantially to reach LE 412 million during FY 2010 versus LE 260 million in FY 2009, an increase of 59%.

Gross profit in FY 2010 increased 81% to reach LE 77 million versus LE 42 million in the FY 2009. The improved performance in this segment is mainly a result of

27 million for 4Q10, up 0 million in the third

shing gross profit for the EGP 149 million , from EGP

4Q‐10 % Change 2009 2010 % Change

receiving the proper certification from KEMA. This approval enabled us to significantly increase sales in addition to improving the gross profit margin in FY 2010 to 18.6%. er.

2,432 ‐3% 7,438 9,803 32% 727 77% 860 1,690 97% 199 4% 599 613 2% 155 118% 260 412 59% 178 227% 135 384 185% 249 ‐19% 988 1,245 26% 149 37% 327 413 26% 47 3% 119 134 13% 28 223% 42 77 81% 22 23% 67 119 78% 10.2% ‐‐ 13.3% 12.7% ‐‐ ‐‐ 34% 24% ‐‐ 23.4% ‐‐ 19.9% 21.9% ‐‐ 17.8% ‐‐ 16.3% 18.6% ‐‐‐

Elsewedy Electric Investor Presentation 2010

MANAGEMENT REVIEW

During 2010, we realized revenue, mainly during t

Wind Energy Segme

Meters segment revenues surged 4% in 4Q10 to EGP 199 million, up from EGP 191 million in

Meters Segment

, y g the first installment of th We shipped 8 turbines to

• f the contract (29 turbi

looks likely to be postpo to EGP 199 million, up from EGP 191 million in 3Q10.

Profit margins in the meters segment dropped 0.2 percentage points to 23.4% in 4Q10, pushing gross profit 3% higher to EGP 47 million in the quarter , up from EGP 45 million in the third quarter of the year

Libya stabilizes.

Egypt has committed to insta renewable energy by 2020, o which we have been shortlist

• tender. However, with the ce

from EGP 45 million in the third quarter of the year. Egypt we are uncertain of the remain cautiously optimistic i additional income in this sect

17 of 24

d LE 120.5 million of the last quarter. This was Net debt increased by 19% on December 31st, 2010 to reach 4,268 million versus 3,586 in

ent Debt

q he Libya EPC contract.

• Libya and the balance

nes ‐ 68 million euro)

• ned until the situation in

, , December 31st, 2009 due to the increase in working capital for the following reasons:

• 1. Increase in metal price
• 2. Inventories build up for new operations

3 Large cable orders produced towards the end of the ll 7,000 megawatt of f ted for the first 250 megawatt ertain turn of events in

• 3. Large cable orders produced towards the end of the

year and either not delivered or delivered and not collected. e timing of this project. We in our ability to generate

• r during 2011.

Elsewedy Electric Investor Presentation 2010

FINANCIAL PERFORMANCE: CONSOLIDATED INCOME STATEM

Figures in (EGP ‘000) 2007 Sales Wire & Cable 8,468,463 El t i l P d t 222 063 Electrical Products 222,063 Turnkey Projects 657,750 Meters ‐‐‐ Total Sales 9,348,276 % change 62.7% Total COGS (8,114,712) ( , , ) Gross Profit 1,233,564 Gross Profit Margin 13.2% SG&A (249,498) Operating Income 21,424 Operating Expenses (34,353) EBITDA 971,136 % Change 51.7% EBITDA Margin 10.4% Depreciation and Amortization (87 262) Depreciation and Amortization (87,262) FX 32,479 Provisions (3,394) EBIT 912,959 EBIT Margin 9.7% Interest Expense (183,160) p ( , ) Interest Income 51,357 EBT 781,157 EBT Margin 8.36% Taxes Paid (24,497) Net Income 756,659 % Change 41.8% Return on Sales 8.1% Reported Net Income 756,659 Minority Interest (32,331) Net Income After Minority Interest 724,327

18 of 24

MENT

2008 2009 2010 9,211,398 7,437,594 9,802,879 1 194 124 993 160 796 523 1,194,124 993,160 796,523 1,040,366 859,986 1,690,100 ‐‐‐ 612,518 11,445,888 9,290,741 12,902,020 22.4% (18.8%) 38.9% (9,785,144) (7,555,248) (10,914,190) ( , , ) ( , , ) (10,914,190) 1,660,744 1,735,493 1,987,830 14.5% 18.7% 15.4% (565,078) (729,780) (851,159) 162,731 102,630 139,444 (73,324) (95,369) (188,883) 1,185,072 1,012,973 1,366,317 22% ‐14.5% 34.9% 10.4% 10.9% 10.6% (133 988) (192 179) (279 085) (133,988) (192,179) (279,085) 45,400 (37,260) (12,717) (140,210) 22,919 (3,257) 1,075,225 806,453 1,071,257 9.39% 8.7% 8.3% (232,992) (195,310) (220,798) ( , ) ( , ) ( , ) 73,586 53,361 57,320 915,820 664,504 907,779 8% 7.1% 7% (18,903) (33,773) (91,142) 896,916 630,731 816,637 18.5% ‐29.7% 29.5% 7.8% 6.8% 6.3% 896,916 630,731 816,637 (68,482) 2,862 (21,108) 828,434 633,594 795,529

Elsewedy Electric Investor Presentation 2010

FINANCIAL PERFORMANCE: CONSOLIDATED BALANCE SHEET

Figures in (EGP ‘000) 2007 20 Fixed Assets 1,170,861 2,758 Investments 313,789 414 Other Long term Assets & Goodwill 63,908 68, Other Long term Assets & Goodwill 63,908 68, Total Long Term Assets 1,548,560 3,241 Inventories 2,074,922 3,170 Receivables 1,374,106 1,846 Receivables 1,374,106 1,846 Other Debt balance 237,425 791, Due from related parties 34,831 64, Cash & Cash Equivalents 982,440 1,318 Total Current Assets 4,703,927 7,191 Total Current Assets 4,703,927 7,191 Bank Overdraft & Short term Loans 2,261,025 4,090 Accounts Payable 255,940 466 Other Credit balance 239,159 501, Due to affiliates 12 824 25 Due to affiliates 12,824 25, Provisions 33,044 221 Total Current Liabilities 2,802,195 5,305 Working Capital 1,901,731 1,886 Total Investments 3 450 291 5 127 Total Investments 3,450,291 5,127 Minority Interest 228,712 317 Parent's Shareholder Equity 3,074,485 3,858 Total Equity 3 303 197 4 176 Total Equity 3,303,197 4,176 Long term loans 39,603 754 Other long term liabilities 107,490 196 Total Long term liabilities 147 094 951 Total Long term liabilities 147,094 951

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T

08 2009 2010 8,299 3,728,647 3,814,070 ,266 372,687 25,753 843 524,281 437,335 843 524,281 437,335 1,408 4,625,616 4,277,159 0,071 2,779,135 3,699,614 6,734 2,037,296 3,549,771 6,734 2,037,296 3,549,771 ,988 618,223 565,198 388 293,465 283,312 8,371 1,026,687 1,569,112 1,554 6,754,807 9,667,007 1,554 6,754,807 9,667,007 0,553 3,624,386 4,765,411 ,052 994,881 1,165,755 ,862 765,229 1,150,350 394 72 584 156 313 394 72,584 156,313 ,233 94,696 71,806 5,096 5,551,778 7309,634 6,458 1,203,028 2,357,373 7 867 5 828 644 6 634 532 7,867 5,828,644 6,634,532 ,937 377,023 422,478 8,366 4,206,616 4,918,834 6 303 4 583 640 5 341 312 6,303 4,583,640 5,341,312 ,652 988,582 1,073,036 ,910 256,421 220,184 563 1 245 004 6 634 532 ,563 1,245,004 6,634,532

Elsewedy Electric Investor Presentation 2010

Economic Environment

WORLD

The world electricity economy is far from its peak: Electricity has gone from a novelty to a convenience to an advantage to an absolute necessity.

C t 1950 2000 2050 ( t ) Category 1950 2000 2050 (est.) World Population 2.56B 6.22B 8.29B Electricity Usage 2.06 TW 3.8 TW 6.99 TW Electricity as % of total energy 10.4% 25.3% 33.7% Televisions 0.6B 1.4B 1.9B Personal Computers 500M to 1B 6B to 8B p Cell phones (U.S) 0.8B 5B Electric hybrid vehicles 55,852 3,151,439

B =billion M = million TW = TeraWatt

Source: IEA,

According to the International Energy Agency (IEA), a cumulative $13 trillion is needed worldwide from 2008 to 2030, more than half of wh is needed for grid and related equipment (as opposed to new or refurbished power plants). Countries around the world are anticipating significant spending on electr generation capacity

Global Power Generation Investment (USD bn) 960 950 410 340 200 200 180 170 EU North America India Latin America Africa Middle East Pacific w Japan 21 of 24 Source: IEA, 2

World electricity generation is projected to grow 87% over the next two and half decades, from 18.8 trillion kWh in 2007 to 25 trillion kWh by 2020 and 35.4 trillion kWh by 2035 2035. In more concrete terms, the world needs the equivalent of 25,000 additional 500 MW coal‐fired power

2007

additional 500 MW coal‐fired power plants by 2030. ich ricity

35,000 30,000 25,000 20,000 15,000 10 000 w/o n 2004 2010 2015 2020 2025 2030 10,000 5,000 Elsewedy Electric Investor Presentation 2010

Source: IEA, 2007

007

AFRICA

In Africa, electric supply is stifling the continent’s growth:

 30 countries face chronic blackouts  The continent’s entire generation capacity is equivalent to Spain’s  Outside South Africa, consumption is only 1% of OECD levels  Twenty‐one of 48 Sub‐Saharan countries have a generation capacity of less than 200 megawatts, well below minimum efficient scale  Universal access is more than 50 years away

5 9 6.2 6.4

Africa's Real GDP Growth Rates 2005‐2011e

Despite the challenges, growth remains:

5.9 5.6 2.5 4.5 5.2 2005 2006 2007 2008 2009 2010e 2011e 22 of 24

Source: IMF

A high potential market:

 A recent multi‐stakeholder study backed by the World Bank, the y y , European Commission and the African Development Bank found that Africa’s chronic power problems require major spending: some $41 billion per year, including new investment and rehabilitation, as well as operations and maintenance  Financing such projects remains difficult, but increasingly governments are overcoming this challenge:  Government debt as percent of GDP has fallen to 59% from 81.9% in the 1990’s Th W ld B k ti t th t Chi fi i  The World Bank estimates that Chinese financing commitments in infrastructure increased from less than $1 billion per year in 2001‐2003, to about $6 billion per year in 2006‐2007. 33% of this targeted power

Domestic economic potential is significant:

 In 2009, Africa’s population crossed the 1 billion mark and is currently the fastest growing population in the world, set to currently the fastest growing population in the world, set to double from today’s level by 2050.  By 2040, Africa’s workforce will be the largest in the world, passing those of India and China  Africa is already nearly as urbanized as China and has 52 cities with more than 1 million people – more than double the number in 1990 and on par with Western Europe  By 2030, 50% of Africans are forecasted to live in cities

Elsewedy Electric Investor Presentation 2010

MIDDLE EAST

The Middle East’s power industry has emerged as one of the fastest growing in the world : Government subsidies, rapid economic development and a growing consumer market are fueling electricity consumption in the region. Supply and Demand Mismatch: Installed electricity generation capacity is currently an estimated 20% below aggregate electricity demand across the MENA region  All Gulf states, with the possible exception of Qatar, face electricity shortages that intensify during summer. The growing population is adding to the power woes. Demand is expected to rise by 7‐8% annually on average.  In the smallest and fastest‐growing economies electricity

3.5 3 2 5 4 4.5

In the smallest and fastest growing economies electricity demand is expected to grow even faster – upwards of 10% in some economies, such as the UAE Arabic‐speaking countries alone will account for 4.1% of global l t i it d d i 2015 f 3 1% i 2006 B 2030 th i

2.5 2 1.5 1 0.5

electricity demand in 2015, up from 3.1% in 2006. By 2030 their share is expected to reach 8.5%. A Wave of Investment GCC countries are expected to invest hundreds of billions of p dollars over the next decade to provide uninterrupted electricity for their growing populations and support industrial expansions.  Kuwait plans to spend US$ 15 billion to double power capacity to 20 000 megawatts by 2020 to 20,000 megawatts by 2020  Saudi Arabia will seek to add 30,000 megawatts to the current 46,000 megawatts of power generation capacity by 2020 at a cost of US$ 45 billion

23 of 24

Annual Percentage Growth in Electricity Generation by Region, 2004‐2030

North America urope / Eurasia ral / S. America Africa Other Asia India China Europe Asia Middle East E.E Cent Source: IEA, 2007 Elsewedy Electric Investor Presentation 2010