PRESENTATION June 2019 D ISCLAIMER I MPORTANT N OTICE T HIS DOCUMENT - - PowerPoint PPT Presentation

INVESTOR PRESENTATION June 2019

Arabia Investments Holding - AIH Investor Presentation June 2019 2

DISCLAIMER

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TABLE OF CONTENTS

Part I Part II Part III Part IV Appendix A Appendix B Executive Summary Non Banking Finance Business Construction and Building Materials Business Automotive Business Investing in Egypt AIH Team 4 10 19 26 28 30

PART I

EXECUTIVE SUMMARY

Arabia Investments Holding - AIH Investor Presentation June 2019 5

AIH is a turnaround story that has come a long way

Jan

2014

Large Dividend Payout Shareholders lobby to pay out capital of EGP 107m

Feb

2014

Land Split and Metwally Exit Metwally exits company, retains

• wnership of land representing 18% of

company shares

Nov

2017

Peugeot Contract Loss PSA exits a 41-year long partnership with CDCM

Jul

2017

New Leadership New ownership and management, recognition of prior losses

Mar

2015

Entry of BPE acquires 5% of AIH with management contract

Oct

2016

Exit of BPE terminates management contract and exits investment

Nov

2016

Devaluation of Currency Devaluation of EGP results in FX loss of EGP (487)mn to auto business , EGP (387)mn unrecognized

2018

Return to Profitability AIH post profits for 5 consecutive quarters, EGP 73mn in FY 2018 433 282 340 820 1,328 1,395 1,474 1,392 1,418

59 58 61 62 40

• 7
• 266
• 180

73

(300) (250) (200) (150) (100) (50)

• 50

100 150 200

• 200

400 600 800 1,000 1,200 1,400 1,600 2010 2011 2012 2013 2014 2015 2016 2017 2018 Group Revenue Consolidated Net Profit/(Loss)

Group Financial Performance in Perspective | EGP mn AIH is an investments holding company with PE culture

AIH is an incubator for small- to mid-size companies within our current growth platforms with a long-term goal of strategic exit of the platforms Additional sectors to be built in the future fulfilling the following criteria:

i.

High growth sectors with long-term cycles of growth or emerging trends

ii.

Above market returns on a risk-adjusted basis

• iii. Companies with potential for geographic expansion
• iv. Creation of long-term value for shareholders

Our mission is based first and foremost on contributing positively to the community at large

AIH | Advancing Lives

Arabia Investments Holding - AIH Investor Presentation June 2019 6

Overview of AIH Businesses

UE Finance is a customer-centric leasing operation with SME focus and strong presence in Upper Egypt Portfolio of EGP 560m Growth in new bookings of 85% in 2018 and 160% in Q1 2019 as compared to

• ne year earlier

Growing returns, recording 30% return

• n average equity in

Q1 2019 Rawaj is a consumer finance business specialized in auto finance Strongly positioned in high-margin segments

• f luxury and used cars

Pent-up auto demand and consumer finance trends lend to strong prospects for 2019 and beyond Current portfolio is EGP 217mn with EGP 247.5mn securitized months ago Tawriq was recently established to capture growth in the booming securitization market, growing at a CAGR of 55% since 2016 Successfully managed its first securitization in Q4 2018 and expecting to close an additional 3 in the short-term Seeks to complement

• ur NBFI platform

Kahromika is a long heritage in domestic and regional electromechanical contracting firm EGP 831m in project backlog Roster of 45+ Power Generation plants equivalent to 60% of domestic consumption Restructuring and positioned for regional expansion and domestic spending on maintenance of PG plants Toblat is a premium producer of concrete bricks, hardscape paving solutions, landscaping tiles and concrete-based tiles Peak RoAE of 54% achieved in Q1 2019 Benefits from a construction boom and upgrades in building standards Expanding into mobile brick lines to serve North Coast and the New Capital 41 years of history as European auto brand affiliate and 3S provider Opportunistic business Fully restructured and recuperating from historical losses Recently aligned with new brands to better utilize its service

• peration and

expertise Non-Banking Finance Business Construction and Building Materials Business Automotive Business

AIH | Advancing Lives

Arabia Investments Holding - AIH Investor Presentation June 2019

New Management Team

AIH | Advancing Lives Strong track record in business turnaround Integrity and business ethic Demonstrated expertise in brand- building and marketing Strategy development capability across various industries Diverse base of knowledge in investment and value creation Success in changing business culture Understanding of how to maximize operating efficiency Long-term view towards partnership and team-building

1 2 3 4 5 6 7 8

Management Team

7

Entrepreneurial Ethical Perseverant Collaborative Customer-centric Ambitious

AIH Team Values

A transformative culture that aims to attracts top talent…

Arabia Investments Holding - AIH Investor Presentation June 2019

Headline turnaround strategies for the Group

AIH | Advancing Lives

▪ Policies, procedures and Board governance ▪ New centralized risk, treasury, HR and internal audit functions at Group level ▪ Change in organization structure ▪ Financial restructuring on the holding level, including substantial balance sheet clean-up ▪ Capitalization of NBFIs to fund growth and construction business to correct capital structure ▪ Increased stakes in more attractive business segments and seeking new opportunities to complement business segments ▪ Finding opportunities to drive cross-selling and synergies in the Group in Board composition by business segment ▪ Developing areas for collaboration across different segments and cost efficiency by centralization of key functions ▪ Driving expansions in the form of new business lines and capacity expansions ▪ Solutions for sources of funding such as capital increase on Group and subsidiary levels, securitization for NBFIs ▪ Opening up new markets, such as the re-opening of regional offices for the Construction business Action Items Taking forward

Institutionalization Restructuring Capitalization Driving business development Cross-selling and synergies

8

Arabia Investments Holding - AIH Investor Presentation June 2019 9

Advancing lives and contributing to community and stakeholders

Examples of initiatives to achieve ESG compliance since mid-2017

Governance

▪ Addressed conflict of interest situations related to

• wnership of listed shares while having access to inside

information – terminated board members that had potential conflicts of interest ▪ All employees asked to sign conflict of interest declarations and prohibited from trading company shares ▪ Introduced Board-approved policies for sale of products

• r service from Group companies to employees

Conflicts of Interest

▪ Revamped Boards of 4 companies – including the holding company – and added independent members who have the necessary qualifications and could add strategic value; terminated members who were not adding value

Board Governance

▪ Investigated accounting practices used by the company and corrected previously overstated accounts on our financial statements retroactively ▪ Established an investor relations function to enhance company transparency; began to issue routine disclosures with detailed strategic and financial information about all investments, beyond requirements of the EGX ▪ Began to take provisions prudently to quantify risks facing the business and to impair non-performing assets inflating balance sheets

Reporting & Transparency

Environmental

Physical Environment

▪ Constructed new administrative building for Toblat allowing employees to worth in a healthier and cleaner workspace, and demolished the older building that was deemed unsafe for use ▪ Moved Rawaj from a residential building lacking in administrative services to a new well-serviced administrative building; - location was based on accessibility by employees and clients alike

Safety

▪ Introduced safety precautions in our Toblat facility ▪ Working on an integrated plan to create better safety procedures for all of our project locations of our Kahromika business

Social

▪ Changed management of several subsidiaries and terminated senior and middle management that did not serve the interests of shareholders and employees ▪ Standardization of policies and procedures among employees of all grades to create a sense of fairness and governance ▪ Reducing discrepancy in salary base among companies

Management Structure

▪ Create an appraisal process to ensure proper assessment and lack of bias in employee assessment ▪ Instilling a meritocracy, including elimination

• f bonus payments that were not reward-

based

Principles of Meritocracy

▪ Via UE Finance and our main base in Upper Egypt, we are attempting to develop SMEs in Upper Egypt and other underserved areas

Community Development

▪ Enhanced relationships with suppliers, partners and consultants by directly addressing issues of concern ▪ Paid overdue liabilities in our auto business and our construction business

Supply chain management

AIH | Advancing Lives

PART II

NON-BANKING FINANCE BUSINESS

Arabia Investments Holding - AIH Investor Presentation June 2019

Government drive for financial inclusion is bearing fruit 2016 CBE directive to banks for SME portfolio to reach 20% by 2020 2016 CBE grants subsidized rates at 5% for qualifying SMEs 2018 Payments for government services ˂ EGP 500 to be paid electronically by May 2019 2019 Egypt takes part in Financial Inclusion Global Initiative as

• ne of 3 countries to receive

comprehensive technical assistance

Egypt provides huge opportunities in the financial sector at large, with NBFIs showing above-average growth

Egypt bank penetration rate is low

9.7% 14.1% 32.8% 2011 2014 2017

Global Average Lower-Mid Income 57.8% MENA Average 43.5%

Egyptian Adults 15+ with Bank Accounts | %

130+%

Egypt’s bank penetration doubles in 3 years, but remains

• ver 40% less than the global average of similar category

Traditional Lenders Model Risk Assessment ▪ Traditional risk modeling to preserve large financial Co. ▪ Strict requirements leading to static models ▪ MSMEs often fail on credit rating which leads to being excluded Alternate Lenders ▪ Innovative risk models that are dynamic enough to increase chances of credit eligibility ▪ Reduced time and realistic reflection on the current status ▪ Analytics allow lenders better loan securitization via holistic assessment of the borrower ▪ Rise of leasing, factoring and microfinance companies New Lease Bookings | EGP bn

6.1 7.0 19.4 21.5 28.6 41.6 2013 2014 2015 2016 2017 2018

5-year CAGR 47%

Alternate models needed to support financing needs of MSMEs and start-ups Informal sector

Lease market booms as sector addresses shortcomings

• f traditional finance structures

Country Penetration United Kingdom 96% United States 93% China 80% South Africa 69% Turkey 69% Libya 66% Egypt 33% Morocco 29% Global Average 69% Global Lower-Mid Income 58% MENA Average 44% Developing Average 63%

40%

Informal Sector* 11

NBFIs | Corporate, SME, and Consumer

Source: World Bank *Public statements by Prime Minister, 2018

Arabia Investments Holding - AIH Investor Presentation June 2019

Global SME Facts

Within the corporate segment of NBFIs, SMEs are particularly underserved

US$2.9tn

99% of all OECD enterprises 60% of global employment 30% of emerging market GDP

• f global demand for credit

SME CLASSIFICATION

< 500 Persons <$ 50 M < 500 Persons <$ 50 M < 1K Persons <$ 58 M < .Persons <$ 2.5 M < 200 Persons <$ 12 M < 250 Persons <$ 3.6 M < 200 Persons <$ 5.6 M < 250 Persons <$ 58 M

Persons per Branch | Major Geographies

80 73 50 34 30 22 20 446 UE Finance QNB Al Ahli Corplease BM Lease EgyLease GB Lease EFG Hermes All Others 23% 12% 11% 6% 5% 2% 3% 39% Corplease Technolease Arab African Incolease Al Tawfik UE Finance QNB Al Ahli All Others

Market Share of Leasing Companies | by value, 2018 Market Share of Leasing Companies | by volume, 2018

# 1 # 1

# 1 - UE Finance earns top player by volume among top 18 in 2018 UE Finance closed 80 new contracts in 2018, versus 73 for the second largest player, QNB Al Ahli and versus an average of 24 for the top 18 players Market remains fragmented and focused on larger contracts The largest player by value, Corplease, commands 23% of the market, and top 8 players command roughly 60%. Rural centers (and SMEs) continue to be underserved leaving the non-Cairo business largely untapped and suffering from pent-up demand for financial services Greater Cairo comprises almost 50% of total bank branches in Egypt and ranks substantially better than nationwide average, while Upper and Egypt and Delta are substantially underserved

83k 14k 13k 75k 19k 11% 19% 48% 9% 12%

Nationwide Average | Greater Cairo | Sinai and Red Sea | Alexandria and Matrouh | Delta | Upper Egypt | 34.5k 13.6k 14.5k 18.7k 74.7k 82.8k

000s Persons per branch % of nation branch network Source: FRA Reports, CAPMAS, AIH Research and Analysis 12

NBFIs | Corporate and SME

Arabia Investments Holding - AIH Investor Presentation June 2019

UE is the leader in SME financing and uniquely positioned

• utside of Cairo with strong customer-centricity

43% 26% 17% 14%

Cairo Upper Egypt Giza Others

Portfolio by Geography

23% 26% 14% 14% 10% 6% 7%

Commerce Construction Industry Education Logistics Medical Other

Portfolio by Sector

61% 28% 7% 3% 1% Cars and Trucks Real Estate Equipment Medical Devices Machines

By Asset Unique market position

UE Lease is a pure SME play with unique presence in underpenetrated regions, with focus on Upper Egypt

High portfolio quality

Defaults of less 0.1% and delinquencies of 0.6% as of Q1 2019

Customer-centric team

Our team is customer-focused and geared towards customizing solutions for their financing requirements

Diversified portfolio

The UE portfolio is heavily diversified geographically and by sector, with presence in 15 governorates

Strong financial performance

Revenues recorded a 5-year CAGR of almost 45%

1,200 contracts to date 274 active clients

Strong potential upside

Growing market with potentially incremental returns from scaling the business after investing in HR and IT infrastructure

Potentially pivotal platform

Upper Egypt is a potential platform to grow into other services, including microfinance and micro-leasing Sale and Lease Back Financial Lease Value Added Services

13

NBFIs | Corporate and SME

Arabia Investments Holding - AIH Investor Presentation June 2019

..with double digit top-line growth and ROE of 30%

5-yr CAGR 48%

Net Portfolio Over Time | EGP mn Revenue | EGP mn Net Interest Income | EGP mn

No exposure to real estate developers and lower exposure to real estate as an asset class

MARKET BOOKINGS 2018

28%

UE PORTFOLIO

88%

Low Exposure to Real Estate Assets Net Profits, RoAE | EGP mn, %

Delinquency rates are low and default rates negligible

DELINQUENCIES UE PORTFOLIO DEFAULTS UE PORTFOLIO

High Portfolio Quality * Healthy portfolio growing at a 5-year 5-year CAGR

• f

almost 50% New lease bookings were up 160% in Q1 2019 versus one year earlier Profitability ratios improve markedly in 2018 and Q1 2019 Return

• n

average equity jumps over 10 percentage points on an annualized basis in Q1 2019 versus on year earlier Exposure to under- served areas and expected to receive boost from interest rates declines Recently improved inflation readings of 13%, should result in monetary easing UE focused on Upper Egypt, which is under-banked

0% 11% 19% 48% 9% 12%

Cumulative Lending| Greater Cairo | Upper Egypt | Sinai and Red Sea | Delta | EGP 954 mn EGP 523 mn EGP 363 mn EGP 41 mn EGP 27 mn

% of UE business since inception % of nation branch network

38% 55% 3%

CBE Mid-Corridor Rates | %

10.25% 8.75% 9.75% 15.25% 19.25% 17.25% 2013 2014 2015 2016 2017 2018

Interest rate declines expected to boost CAPEX spend

4%

˂ 0.1% 0.6%

Source: CBE * UE defaults and delinquencies as of Q1 2019

˂

30%

16 17 26 5 9 2016 2017 2018 Q1 2018 Q1 2019

58%

7 8 14 3 5

19.1% 17.8% 21.7% 20.0% 30.2%

0.0% 10.0% 20.0% 30.0% 40.0%

• 5

10 15 2016 2017 2018 Q1 2018 Q1 2019

+10% 14

2016 2017 2018 Q1 2018 Q1 2019 Net Revenue Depreciation 140 183 223 50 67

NBFIs | Corporate and SME

Arabia Investments Holding - AIH Investor Presentation June 2019

Egypt is still scratching the surface in consumer financing, catalyzed by a surge in inflation post-reform

EGP Floatation

Loss of over 50% of EGP value in the free float of November 2016

Electricity Tariffs

15-41% CAGR over 4 years in household electricity prices, more hikes expected till 2022

Fuel Subsidy Cut

13-47% CAGR over the last 4 years in gasoline prices, more increases expected

VAT

14% VAT system implemented September 2016 to replace previous 10% sales tax

Reforms launched in 2014 affect disposable income Floatation had a substantial impact on prices Leading to a surge in consumer credit | EGP bn

0% 5% 10% 15% 20% 25% 30% 35% 3 6 9 12 15 18 21 EGP/USD Headline Inflation

Source: CBE

158 194 232 260 312 2014 2015 2016 2017 2018 32% of personal consumption* * In June 2018, other figures are year-end balances

15

NBFIs | Consumer

410 460 515 776 880 2014 2015 2016 2017 2018

Inflation and Interest Rates | monthly, %

4-yr CAGR 21%

Monetary easing in 2019 and 2020 would accelerate growth and household consumption

Consumer Spending | EGP bn

CBE target inflation for Q4 of 2020 is 9%. Price stability would provide scope for market interest rates to ease.

Rise of merchant-centric finance players

9.0% 33.0% 13.0% 15.25% 19.25% 16.25% Mar-16 Mar-17 Mar-18 Mar-19 Headline CPI Mid-Corridor

Arabia Investments Holding - AIH Investor Presentation June 2019

Auto segment the most visible opportunity in consumer finance due to pent-up demand and segment magnitude

Passenger Car Sales | x

207,973 195,559 141,983 99,530 145,886 2014 2015 2016 2017 2018

62,000 cars short of 2014 sales

Auto Finance Players

There is substantial pend-up demand for cars given recent sales slump and relatively low PCs-to- inhabitants ratio

PCs per 1000 inhabitants, 2015 | x

Source: CBE, Meris Ratings Agency, AMIC Reports, Helgi Library

48 52 76 89 92 114 134 139 148 162 209 347 Iraq Egypt Morocco Tunisia Algeria Lebanon Mena Turkey KSA Iran Syria Libya

MENA 16

Marriage-related Cost Automotive Household Housing Education Healthcare Home Finishing Clothing

Wedding rings Dowry Planners 5-star hotels Honeymoon Electronics Furniture

80% 100% 140% 130% 100% 110% 100%

Cars Car licensing Total Cost of Ownership

100% 5% 130%

Imported Local

100% 180%

Food Meat, Chicken

29% 40+% 85% 100%

Purchase Rents

105% 100%

Finishing Materials Public Private

29% 40+%

Pharma

150%

NBFIs | Consumer

Credit, 60% Banks, 60% NBFIs, 30%

Estimated rise in prices from 2016 to end of 2018, B1G Consultancy

Arabia Investments Holding - AIH Investor Presentation June 2019

Rawaj is strongly positioned in high-margin segments in auto financing

New segments

Well-positioned to benefit from growth in auto market at large, in addition to strong consumer finance growth

Strong potential upside

Well-positioned to benefit from growth in auto market at large, in addition to strong consumer finance growth

New management success

New management has had outstanding success in growing its top line and entering new, lucrative segments

Young business with unique exposure

Among the newest of the Arabia companies, Rawaj is one of a handful of specialized NBFIs operating in the domestic auto finance market

3,289 contracts to date 1,982 active clients

Securitization track record

Successfully closed its first portfolio securitization of EGP 247.5mn as part of its re-financing cycle, with more to come

Organization structuring

New Risk function as of Q3 2018 and Collections function as of Q1 2019, new incentive scheme in place better aligning pay and performance

Established late

4% 21% 34% 41%

2016 2017 2018 Q1 2019

Portfolio Development | EGP mn Loan Bookings Luxury Segment | % Loan Bookings Used Segment | %

2% 9% 17% 20%

2016 2017 2018 Q1 2019

135 143 316 67 55 2016 2017 2018 Q1 2018 Q1 2019

Car Sales Value | EGP mn

120+%

“Let it Rust” campaign

Net Profits | EGP mn Equity, RoAE | EGP mn, %

0.2 0.6 7.5 1.0 0.7 2016 2017 2018 Q1 2018 Q1 2019

Securitization

46 46 54 47 54

1% 1% 15% 9% 5%

0.0% 5.0% 10.0% 15.0% 20.0% 40 45 50 55 2016 2017 2018 Q1 2018 Q1 2019 Securitization of portfolio has led to a temporary drop in returns

17

59 188 327 128 214 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18 May-18 Sep-18 Jan-19 May-19 Portfolio is being rapidly replenished post- securitization in Dec 2018

Securitization

NBFIs | Consumer

7 8 6 3 2 NII

Arabia Investments Holding - AIH Investor Presentation June 2019 18

Tawriq established in Q4 2018 to capture growing demand for securitization

89% 11% New vehicles Used vehicles 14% Top 30 clients 69% Loan-to-Asset Value

Diversified Assets Low Concentration Risk High Recoverability

BMW Hyundai KIA Cheverolet Nissan Mercedes Jeep Renault Mitsubishi Toyota Other

Issue by Tawriq in December 2018

Originator Advisors Rating

AA + AA A

Tranche A Tranche B Tranche C

Issuer Tawriq Issue Size EGP 247.5 mn Issue Date December 2018 Issue Structure Pass-through amortization Underlying asset Receivables for 1,615 contracts Seniority Senior subordinated structure Callability 25 months Originator Rawaj Servicer Rawaj Custodian CIB Back-Up Servicer CIB Key Terms of the Issue

+ 2 additional securitization contracts by Tawriq signed on in Q1 2019 Licensed by FRA in November 2018 + 1 new issue by Rawaj in H2 2019

2.2 3.0 5.3 4 5 7

• 3

2 7

• 3

2 7 12 2016 2017 2018

+4 securitizations closed in Q1 2019

Securitization Market | value of deals in EGP bn, x

Dreny & Partners rs

NBFIs | Corporate Services

PART III

CONSTRUCTION AND BUILDING MATERIALS BUSINESS

Arabia Investments Holding - AIH Investor Presentation June 2019 20

Energy will remain a strategic sector in Egypt with focus going forward on energy exports and rehabilitation

Egypt well-positioned to become an exporter of electricity

Egypt has large capacity excesses, enabling it to become an energy hub through establishing interconnectivity grids between three continents

Substantial opportunities in T&D expected to emerge

1 The Egyptian / Saudi Electrical Interconnectivity Project The project aims to exchange capacity of 3GW between the two countries through HVDC bipolar transmission technology on the 500kV Badr Substation Egypt and Medina-Tabuk substations in KSA with overhead lines totaling 1,450 Km on both sides in addition to a submarine cable of 16 Km crossing the Aqaba Gulf. 2 Pan-Arab Interconnection Axis The project establishes a platform for electricity trading between Arab countries as groundwork for creation of a common Arab electricity market. 3 The African Interconnection Axis Within the framework of the bilateral cooperation between Egypt and Sudan, an Egyptian-Sudanese electrical interconnection project on 220 kV with capacity of 200 MW is currently under study. 4 The Egypt-Greece-Cyprus Interconnectivity Project Egypt and Cyprus have approved the route for a 2GW subsea power cable at the heart of a USD 4bn project to connect the electricity grids of Egypt, Greece and

• Cyprus. The 1,648-kilometer cable would be one of the longest in the world, to

be constructed over a period of 3 years.

15 countries would potentially be part of interconnectivity initiatives

20% 43% 37% 28% 80% 57% 30% 15% 15% 23% 13% 9% 25% 3.6 3.1 4.0 5.4 2018 2019 2020 2021 T&D Thermal Nuclear Waste to Energy Coal

Energy spending still on the rise* | in USD bn, %

T&D captures higher chunk in spending moving forward; but subject to deal finalization with regional players to interconnect the grid.

* Excludes wind and solar energy investments Source: Egypt Energy Vision Report 2018-2020, Local news, B1G Consultancy (2018)

28.0 29.3 29.4 32.0 33.4 34.9 36.5 38.2 35.2 36.0 44.3 58.3 62.3 65.3 66.5 66.8 2015 2016 2017 2018 2019E 2020F 2021F 2022F Peak Load | GW Installed Capacity | GW

~29 GW Excess Capacity

Construction and Building Materials | Construction

Arabia Investments Holding - AIH Investor Presentation June 2019

Kahromika’s long heritage in Egypt and the region will support its future growth strategy

1971

Establishment Public sector affiliated company to Ministry of Electricity and Energy

1978

1st Big Project Awarded turnkey Kafr Al Dawar power plant with international partner

1990

1st Regional Award Projects awarded in Algeria, Libya, Kuwait, Qatar, Dubai and Sudan

1997

Privatization Majority stake acquired by Arabia, formerly AIC, a construction entity

2002

Toshka Completion of Toshka project

2007

Mega-Projects Awarded 15 mega-projects in Power Beneration

2018

New Leadership New board and management

~ 48 years 19.55 GW 60% 2.5x 5,000 +km 1,000 +km 128 23

track record Power Generation projects Egypt’s total consumption Morocco’s consumption

• verhead transmission lines

EHV and HV cables substations governorates

IN NUMBERS

Shareholding Structure | % Our Scope of Services

Steel Structures Boilers & Condensers Turbines & Generators Piping Substations Overhead lines HV/MV/LV Distribution Control centers Maintenance Sugar Cements Water & Irrigation Chemicals Oil & Gas Light steel fabrications with capacity of 10,000 metric tons Fabrication workshop

• f ~12,000m2

Total area of 34,00m2

51% 10% 39% Arabia Investments Sewedy Electric Holding Company

for Construction & Devt

T&D Power Generation Industrial Installations Manufacturing

21

Construction and Building Materials | Construction

Arabia Investments Holding - AIH Investor Presentation June 2019

Kahromika is positioned to become an integrated solutions provider and to capture regional opportunities

Long Track Record

Kahromika’s track record extends almost 48 years, rendering it pre- qualified for a large scope of PG, T&D and industrial projects

Operational restructuring

New divisions being created to improve project planning, management, costing and control functions

Strong domestic footprint

Kahromika has presence in 23 governorates, rendering it well-positioned to execute mid-size projects in remote areas, with limited competition

Strategic sector It is a strategic priority to position Egypt as a leading energy hub in the region following the new oil discoveries and energy investments Regional brand recognition

The company is well-recognized in the region due to a regional track record with governments in Bahrain, Qatar, Libya and Iraq

Resolution of legacy issues

Delivery of 27 legacy contracts and closure

• f 33 LGs worth EGP 55mn in 2018 and

payment of overdue liabilities worth EGP 134mn Relationships with stakeholders Enhanced strained relationships with clients, suppliers, shareholders and lending institutions. MoU signed with Indian powerhouse NTCP for maintenance of local PG plants Kahromika continues to seek recurring business with strong earnings generation

• potential. Maintenance of domestic PG

plants is currently an imported service. Rekindling of regional business is a key strategy in the short and medium terms The Kuwait branch was re-opened in partnership with a local firm, in addition to

• ur Iraq branch during 2018.

A joint venture with members of the royal family in Abu Dhabi is also under establishment. Much groundwork has been done to prepare for entry into Libya, currently on hold due to recent tensions. Kahromika hopes to be among the first entrants into the Libyan re-construction wave. Kahromika had solid footprint in all of Iraq, Saudi Arabia, Libya, and Kuwait - branches which have since been discontinued. Management has worked in 2018 to re-establish these. Of all historical locations,

• nly Saudi Arabia has not

been re-opened and Abu Dhabi has been added to our regional network as a window to Gulf projects.

Libya Egypt KSA Kuwait Iraq Old Kahromika New Kahromika

Groundwork intact for kickstarting regional expansion

UAE 22

Construction and Building Materials | Construction

Arabia Investments Holding - AIH Investor Presentation June 2019

Kahromika’s legacy clean-up is impacting financial results in the short-term

451 567 548 115 170 2016 2017 2018 Q1 2018 Q1 2019

Revenue| EGP mn EBITDA and Margin | EGP mn, % Net Profit | EGP mn

23

14 35 41 9 9 3% 6% 7% 8% 5%

• 3%

2% 7% 12%

• 10

20 30 40 50 2016 2017 2018 Q1 2018 Q1 2019 12 14 19 4 2016 2017 2018 Q1 2018 Q1 2019

Business by Client Type

57% 43% Public Sector Private Sector

Challenges facing the organization in the short-term Actions taken to address challenges Cash flow shortages due to completion of loss-making legacy projects Lucrative local PG cycle coming to an end

Limited short-term visibility

Capital increase to correct capital structure, shortening

• f collections cycle to 61 days down from 70

Reopened branches in Kuwait, Iraq and established new network in Libya to capture regional PG opportunities in addition to T&D and maintenance locally

Strong long-term outlook

EGP 41m+

Losses realized on legacy projects in 2018

EGP 134m+

Liabilities paid

Clean-up

• ngoing

Current backlog EGP 831m

Ageing organization with outdated facilities and processes Organization restructuring, new management and rehabilitation of sites planned Construction and Building Materials | Construction

Arabia Investments Holding - AIH Investor Presentation June 2019

A high-return business that benefits from a construction boom in new cities and changes in building standards

Efficient operation

Toblat is a cost-efficient producer of brick and tiles. It has a negative working capital cycle, rendered it a growing source of cash for the Group

Alamein expansion

Having acquired 8,400 m2 in Alamein, Toblat is expected to have access to

• ver 48+ new developments along the North Coast

New mobile lines

The company has ordered mobile concrete brick lines - the first technology

• f its type domestically – to serve Alamein and New Capital in Q3 2019

Tier 1 supplier

Toblat is an approved supplier for top-tier contractors such as Hassan Allam and SIAC, and to upper-end projects across diversified locations

Clients and Projects

Established 1985

Our new hardscape line is fully utilized

616 1,590 1,239 6,249 3,890 0% 20% 40% 60% 80% 100% 120% 2000 4000 6000 8000 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Production | meters Effective Utilization 35% 33% 14% 13% North Coast Retail 6th october Cairo Ain Sokhna Alex Sadat Sharqia Mansoura

Geographically diverse client base Our current facility Toblat operates on 22,000 square meters of owned land in AbuRawash, housing 7 production lines. Ownership of Toblat now directly owned by AIH The transfer of ownership was part of Group restructuring to become more streamlined and efficient

Notable expansion since inception was in 2018

24

Construction and Building Materials | Construction

Arabia Investments Holding - AIH Investor Presentation June 2019 25

Toblat operates in a high-growth segment within construction providing it with a sustainable growth trend

41 52 61 15 16 2016 2017 2018 Q1 2018 Q1 2019

Revenue | EGP mn EBITDA and Margin | EGP mn, % Net Profit | EGP mn Toblat continues to enjoy consistent growth and an

• utstanding

return on equity Returns for Toblat inched upwards to cross 50% in Q1 2019. We expect Toblat profits to grow at 20% this year and at higher rates in 2020

3 6 8 2 3 34% 43% 44% 49% 54% 0% 10% 20% 30% 40% 50% 60%

• 2

4 6 8 10 12 14 2016 2017 2018 Q1 2018 Q1 2019

3-year CAGR of 33%, Growth of 90+% in 2 years Growth of 28% in Q1 2019

..and consistently exhibits strong growth Construction is a growing sector of GDP.. Solid Financial Performance

6 9 12 3 4 15% 17% 19% 21% 21% 0.1 0.2 0.3 0.4

• 2

4 6 8 10 12 14 2016 2017 2018 Q1 2018 Q1 2019

Toblat is a premium producer of: Concrete bricks Hardscape pavement solutions Landscaping interlock tiles Concrete-based tiles Clients are primarily top-tier real estate contractors A change in building standards are leading contractors towards concrete bricks as

• pposed to traditional clay bricks, and

towards hardscaping as opposed to asphalt in residential areas and roads Construction and Building Materials | Building Materials

53 60 67 77 95 120 145 195 256 2010 2011 2012 2013 2014 2015 2016 2017 2018

8-yr CAGR 48%

4.4% 5.4% 5.9% 2014 2015 2016 2017 2018

PART IV

AUTOMOTIVE BUSINESS

Arabia Investments Holding - AIH Investor Presentation June 2019 27

An opportunistic business: we have come a long way in risk mitigation and operational sustainability

(192) (89) (54) (41) 2016 2017 2018 Q1 2019

Net Equity Contribution* | EGP mn

Substantial improvement in auto business’s net loss position No funds invested since news of non- renewal of Peugeot contract

Substantial reduction in debt and settlement of supplier dues FX Exposure of USD 6mn that must be kept to maintain the net interest income returns until loans are closed off Cost restructuring has rendered service business profitable on an operating basis despite difficult auto market conditions Headcount reduction

• f

30% while maintaining core manpower that would enable the start-up of new business Sale of non-operating assets Business development efforts beginning to bear fruit Recent Wins Net Profit Composition | EGP mn Currently underutilized service capacity New Ventures at our Auto Business Ongoing challenges being addressed

* Excludes shareholders’ loan from AIH, written off end-2017

Automotive Business

3S Operation Pre-Delivery Inspection

2016 2017 2018 Q1 2019 EBITDA 111.1 19.3 21.8 2.5 Of which, Recurring 3.9 3.7 2.5 FX & Net Interest (478.2) 13.6 22.0 12.4 Non-Cash (12.1) (21.9) (6.7) 4.6 Tax (4.4)

• Total CDCM

(383.7) 11.0 37.1 19.5 Intercompany FX 10.4 4.4 1.5 (6.0) Net Impact to AIH (373.3) 15.4 38.6 13.5

Appendix A

INVESTING IN EGYPT

Arabia Investments Holding - AIH Investor Presentation June 2019 29

Headline macro indicators are strong

5.3% 3.1% 3.0% 2.5% 2.2% 2.2% 2.1% 2.1% Egypt Morocco Mauritania Tunisia Qatar KSA Algeria Oman

Among the region’s largest economies GDP by Sector | GDP 2018, % Economic Growth | GDP Growth ,% Top GDP growth rate among Arab markets..

5.1% 1.9% 3.4% 5.9% 2010 2012 2014 2016 2018E 2020F

Wholesale 14% Manufacturing 13% Agriculture 11% Oil and Gas 11% Real Estate 10% General Gov.t 7% Construction 6% Transport 5% Refining 4%

• Finc. Services 4%

Others 15%

FDI | USD bn

782 425 250 226 192 180 141 118 KSA UAE Egypt Iraq Qatar Algeria Kuwait Morocco 7.1% 6.6% 5.3% 3.8% 2.6% 1.9% 1.7% 0.8% India China Egypt Mauritius Turkey Nigeria UAE

• S. Africa

GDP in USD bn

..and among the highest in EM

Average 2.6% Average 4.5%

Egypt’s Credit Risk Rating

2015 2016 2017 2018 2019 B3 B3 B3 B3 B2 B- B- B- B B B B B B+ 8.1 2.2 7.9 7.7

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Recovering to pre-2011 levels

EGX Performance in Perspective

2014 2015 2016 2017 2018 2019 EGX 30 EM MSCI | rebased Global MSCI | rebased

FX stabilizing and inflation on the decline

0% 10% 20% 30% 40% 5 10 15 20 2016 2017 2018 2019 EGP/USD Headline Inflation

Investing in Egypt

Appendix B

AIH TEAM

Arabia Investments Holding - AIH Investor Presentation June 2019 31

Our Board of Directors

AIH | Advancing Lives

Jamal Othman Join Date Background ▪ Non-Executive Chairman ▪ July 2017 ▪ Single-largest shareholder in AIH ▪ Entrepreneur ▪ MD of GINCO, UAE since 2005, one of the fastest growing contractors in the UAE with revenues of over DHS 1.5bn ▪ Holds strategic stakes in international trade ventures and real estate in Egypt and the region ▪ Civil Engineering Officer, Egyptian Air Forces 1986-1989 Adham Roushdy Join Date Background ▪ Independent Director ▪ July 2017 ▪ 28 years of management experience Europe, GCC, Egypt ▪ Partner non-Executive Director for Advantage Advertising and Marketing Consultancy ▪ Previously, Board Member and Acting Commercial Director of Arab Dairy Products Company ▪ Prior Consultant to the Ministry of Telecommunications and to CAPMAS ▪ Previously, Marketing Director of PepsiCo for Europe and the ME, based out of London, UK, ,and for the GCC based in KSA ▪ MBA from AUC 1993 ▪ BA in Business Administration from AUC 1989 Hazem Al Zifzaf Join Date Background ▪ Vice-Chairman and CEO ▪ July 2017 ▪ Executive Committee Member, LafargeHolcim 2014-2017 ▪ MD, H&Co Management Consulting 2006-2014 for MENA and CIS clients ▪ Pepsico – general management and senior executive roles in USA, UAE, Latin American and MENA ▪ Serves on Board of Supreme Council of Antiquities ▪ 8 awards in the areas of Leadership, Marketing, Innovation and Sales ▪ BSc in Mechanical Engineering from AUC, Egypt 1989 ▪ MBA with distinction from the Miami Business School, USA 2002. Sherif El-Sheikh Group Role Join Date Background ▪ Non-Executive Director ▪ Chairman, Kahromika ▪ July 2017 ▪ Critical driver of change at AIH ▪ Leading an operational restructuring and strategy development for Kahromika ▪ Formerly Deputy Director Audit and Tax, KPMG Hazem Hassan ▪ Restructuring expertise ▪ Founder and MD, El Sheikh and Co Financial Advisory ▪ BA Commerce, Ain Shams University 1991 Yehia Rizk Join Date Background ▪ Independent Director ▪ July 2017 ▪ Seasoned executive specialized in business turnaround of bulge- bracket FMCG ▪ Chairman and Regional CEO Americana Group companies 2005- 2018 ▪ Track record for exponential growth and winner of best performance awards in Middle East ▪ GM Sales, Mansour Egypt, 1999-2005 ▪ Phillip Morris Egypt, P&G Egypt, National Paper Co., Jeddah ▪ BA in Economics from AUC 1988

Arabia Investments Holding - AIH Investor Presentation June 2019 32

AIH Executive Management Team

Name Title Join Date Areas of Expertise Corporate Background Degree Years of Experience Hazem Al-Zifzaf Vice Chairman and CEO 2017 Leadership, business turnaround, restructuring, general management, strategic planning, project evaluation, new markets penetration, commercialization, and product and service development

• LafargeHolcim
• H&Co
• PepsiCo
• P&G
• Xerox
• MBA with distinction, Miami Business School
• BSc Mechanical Engineering, AUC

30 Rania Afifi Chief Investment Officer 2018 Investment banking, value creation, investment management, transaction and strategic advisory, corporate and financial restructuring, negotiation, team-building

• Beltone Financial
• Gulf Arab Investment Company
• CIB
• EFG-Hermes
• BA Double Major Business Administration

and Economics with distinction, AUC 21 Ahmed Omar Group Director of Human Resources 2019 Human resources management,

• rganization development, change

management, culture management, corporate restructuring, talent and performance management, career counseling, and performance management

• Solid Constructions
• SIAC Holding
• ORASCOM Construction
• LafargeHolcim Egypt
• Banque Misr
• KPMG Hazem Hassan
• MBA International Business, Cross-Culture

Communication, Strategic Management

• CIPD
• Bachelor of Arts, Faculty of Commerce, Cairo

University 20 Amal Soliman Group Director of Treasury and Risk 2019 Banking operation, Credit Analysis, Commercial Banking, Credit Risk, Loans, banking and Non-financial banking

• Cairo Factors
• Tamweel Finance Holding
• EGB
• BA Business Management, Cairo University
• MBA, Arab Academy for Banking and Finance
• Diploma, Bank Credit Analysis and

Management

• CBM Diploma in Bank Branches Management
• Project Management Diploma (PMD)

21 Hossam Tobala Group Director of Corporate Governance and Internal Audit 2019 Assurance, auditing and consulting services, internal audit and corporate governance

• DT&T
• Americana, Egypt
• Kuwait Holding
• Cairo Poultry Group
• KPMG Egypt
• CPA
• CIA
• ESAA
• BA Commerce, Cairo University

33 Ibrahim El-Zeiny Group Controller and Tax Director 2011 Internal audit, sophisticated audit procedures and internal controls, audit techniques and risk management

• KPMG Hazem Hassan
• BA Commerce, Ain Shams University

20

AIH | Advancing Lives

Arabia Investments Holding 4 Tawfik Diab Street, Garden City, Cairo 11519, Egypt +20 2 27929337 arabia-investments.com