RESIL ILIE IENCE Investments that Stand the Test of of Tim ime - - PowerPoint PPT Presentation

▶
resil ilie ience
SMART_READER_LITE
LIVE PREVIEW

RESIL ILIE IENCE Investments that Stand the Test of of Tim ime - - PowerPoint PPT Presentation

Sep 21, 2023 148 likes •602 views

RESIL ILIE IENCE Investments that Stand the Test of of Tim ime In Inves estor Pres esentati tion 3Q/ Q/9M M 2017 2017 Cau autionin ing an and Forw orward Lo Lookin ing St Statements This presentation was prepared by Egypt

slide-1
SLIDE 1

In Inves estor Pres esentati tion 3Q/ Q/9M M 2017 2017

RESIL ILIE IENCE

Investments that Stand the Test of

  • f Tim

ime

slide-2
SLIDE 2

Egypt Kuwait Holding | Investor Presentation 2

Cau autionin ing an and Forw

  • rward Lo

Lookin ing St Statements

This presentation was prepared by Egypt Kuwait Holding (“EKH”) and is strictly confidential and may contain market sensitive information. All recipients hereof who are permitted to receive the same are bound by the restrictions on disclosure and use and other terms thereof. The provision of this presentation is intended for discussion purposes only, and no person has represented or warranted the accuracy or completeness of any information contained herein. It does not constitute an offer or recommendation to enter into any transaction by EKH, its affiliates or its officers, directors or advisors. If you decide to enter into a transaction you do so in reliance on your

  • wn judgment. When making an investment decision, you should rely solely on the final documentation relating to the transaction and not this presentation. This presentation

is strictly confidential and speaks only as of the aforementioned date. This presentation is not intended to be relied on for any purposes by any person without EKH’s consent. Neither EKH nor any of its affiliates are under any obligation to consider or enter into any transaction. EKH and its affiliates shall not have any liability for any information contained in, or any omission from, the presentation or any other written or oral communication transmitted to the recipient(s) and they disclaim all liability for any direct, indirect, consequential or other damages or losses incurred by the recipients or any third party that arise from any reliance on this document or its accuracy.

slide-3
SLIDE 3

AGENDA

EKH EKH Overview & Rec ecent De Developments Investment Port

  • rtfolio
  • Fertilizers and Petrochemicals Segment
  • Energy and Energy-Related Segment
  • Diversified Segment

Fin Financial High ighlights Ap Appendix 1: : Organization & Governance

slide-4
SLIDE 4

Egypt Kuwait Holding | Investor Presentation 4

EKH KH OVERVIEW & RECENT DEVELOPMNTS

slide-5
SLIDE 5

Egypt Kuwait Holding | Investor Presentation 5

EKH EKH at t a a Gl Glance

19 19

investments in strategic sectors, ranging from fertilizers and petrochemicals to energy, building materials and insurance

> 4,0

,000

professionals employed by the holding company and its subsidiaries

USD1.1

.1 bn

total assets

USD 414

414 mn

total equity book value

> 15

15 %

average ROE in the past 10 years

  • c. USD 256.1 mn

paid-in capital

  • c. USD 889

889 mn

cumulative net profit [2005-16]

slide-6
SLIDE 6

Egypt Kuwait Holding | Investor Presentation 6

EKH AND IT ITS S COMPANIES BENEFIT FR FROM A CLE LEAR STRATEGY AND IN INVESTMENT PHILOSOPHY

Hands-on investor and operator Develop greenfield operations to leverage

  • perational expertise

Secure strategic partnerships with leading international value added industry players Long-term investor with opportunistic exit strategy Create synergies between different group companies Expand industry expertise to new markets

slide-7
SLIDE 7

Egypt Kuwait Holding | Investor Presentation 7

PRI RIMARY PORTFOLIO IN INVESTMENTS

AlexFert (Ammonia, Urea Fertilizer and Ammonium Sulfate Plant) Sprea Misr (Chemicals Plant)

Effective Ownership 100.00% Effective Ownership 42.6%

NatEnergy (Gas Distribution Business Holding Company)

Effective Ownership 100.00%

Building Materials Industries Company (Cement Plant)

Effective Ownership 38.03%

Delta Insurance (Life and General Insurance Company)

Effective Ownership 32.02%

Fertilizers and Petrochemicals Segment Energy and Energy-Related Segment Diversified Segment

slide-8
SLIDE 8

Egypt Kuwait Holding | Investor Presentation 8

OPERATIONAL HIG IGHLIGHTS OF F THE 3Q/ Q/9M17 17

3Q 2017 Margins

Gross Profit Attributable EBITDA

23% 31%

9M 2017 Margins

Gross Profit

26% 33%

Revenues (USD mn)

76 87 271 270 3Q 2016 3Q 2017 9M 2016 9M 2017

Gross Profit (USD mn) Attributable Net Income (USD mn) (1) Attributable EBITDA (USD mn)

Attributable EBITDA

24 25 89 85 3Q 2016 3Q 2017 9M 2016 9M 2017 12 37 47 77 3Q 2016 3Q 2017 9M 2016 9M 2017 21 18 69 61 3Q 2016 3Q 2017 9M 2016 9M 2017

1) 3Q17 includes capital gain of USD18.2mn.

slide-9
SLIDE 9

Egypt Kuwait Holding | Investor Presentation 9

USD200 200 MIL ILLION RE RECENT DE DEVELOPMENTS SH SHOW THE STRENGTH OF F THE COMPANY’S STRATEGY

  • Financial reengineering whereby reduced the long term debt by USD70 mn by existing ZAIN.
  • Equity appreciation of USD24 mn
  • Full impact of debt restructuring to reflect on FY2017 results
  • Acquired additional c.5% in Alexfert to reach c.42% ownership effective 2Q2017.
  • Acquired a 15% stake in I Squared Capital in 2012
  • Exited the investment on October 08, 2017 by selling to I Squared Capital with total consideration
  • f USD60 mn and realizing capital gain of USD30 mn
  • Acquired a 26% stake in Egyptian Hydrocarbon Corporation (EHC) in 2011
  • Exited the investment on September 28, 2017, by selling to Carbon Holding with total

consideration of USD65 mn and realizing capital gain of USD18.2 mn

slide-10
SLIDE 10

Egypt Kuwait Holding | Investor Presentation 10 10

OFF SH SHORE NO NORTH SIN SINAI (O (ONS)

  • Located in the Eastern Nile delta, 50 Km NE of Port Said,

Operated through NOSPCO JV after take over from Perenco mid 2014 .

  • Two Development Leases Toa & Kamose , awarded in

1998, Total Area is 355 Km2.

  • Shallow water : WD 30 – 85m
  • Dry Gas (99.9% Methane) with 0.2%CO2
  • Effective Dev. Period for 20 Yrs from date of 1st

production in 2009 (2029) Extended for additional 5 Yrs.

  • 9 wells have been drilled in Tao Field during Exploration

& Development phase with cumulative production of 275 BCF.

  • Reserve: Low risk Pliocene upside > 400 BCF

Asset Overview

slide-11
SLIDE 11

Egypt Kuwait Holding | Investor Presentation 11 11

OFF SH SHORE NO NORTH SIN SINAI (O (ONS)

Offshore North Sinai Rumana Production Facilities Onshore CPF Site Rumana CPF Office Camp in Rumana CPF

slide-12
SLIDE 12

Egypt Kuwait Holding | Investor Presentation 12 12

OFF SH SHORE NO NORTH SIN SINAI (O (ONS)

Low Risk Post Messinian Prospect Inventory

  • Finalized the acquisition of 3D Seismic Survey

for an area of 560 km2 for two purposes:

  • Enhance the current shallow seismic data

which was done in 1995

  • Shoot for the deeper targets for future

exploration

  • Fast Track results were crucial to the

success of Tao-5 sidetrack and achieving the targeted gas sand layers

  • Reserves figures based on the new 3D Seismic

will be available as follows:

  • Tao field : end of October
  • Kamose Pliocene : end of November
  • All Pliocene: end of December
  • All Deep targets: end of March 2018

3D Seismic

slide-13
SLIDE 13

Egypt Kuwait Holding | Investor Presentation 13 13

OFF SH SHORE NO NORTH SIN SINAI (O (ONS)

Tao 5 – Tao 4 & Kamose - Statement of CF & I/S

  • Reserves : 113 BCF
  • CAPEX plan $116.7

M (including 3D Seismic)

  • OPEX plan $0.5

Million / month

  • Cost gas @ US$

5.3/mmscf (Brent @ $50/bbl)

  • Profit gas @ US$

5.3/mmscf (Brent @ $50/bbl)

Statement of Cash Flow (US$ MM) 2017 2018 2019 2020 2021 2022 Revenues 19.13 59.38 67.12 54.36 45.18 27.01 OPEX (3.00) (6.00) (6.00) (6.00) (6.00) (6.00) CAPEX (41.36) (71.28) 0.00 0.00 0.00 0.00 F.X Loss 0.00 0.00 0.00 0.00 0.00 0.00 Asset Cash Flows (excl collection delays) (25.23) (17.90) 61.12 48.36 39.18 21.01 EGPC Recivables (19.13) (59.38) (67.12) (54.36) (45.18) (27.01) EGPC Collections 8.64 45.15 75.80 58.00 46.31 34.57 Net Cash Flows (35.72) (32.12) 69.80 52.00 40.31 28.57

slide-14
SLIDE 14

Egypt Kuwait Holding | Investor Presentation 14 14

Additional 30 MWh Expansion Wartsila Engine Hall Radiators Roof - MV SWGR Engine Duct & Stacks Engine Hall Outside Area

KAHRABA

slide-15
SLIDE 15

Egypt Kuwait Holding | Investor Presentation 15 15

OUR PORTFOLIO IO

slide-16
SLIDE 16

Egypt Kuwait Holding | Investor Presentation 16 16

FERTILIZERS AND PETROCHEMICALS SE SEGMENT

slide-17
SLIDE 17

Egypt Kuwait Holding | Investor Presentation 17 17

Products & Production Capacity:

  • Formaldehyde and form-urea (production capacity of 132tpa)
  • Urea formaldehyde glues and melamine formaldehyde

resins (production capacity of 102tpa)

  • Urea, melamine and phenolic molding compounds

(production capacity of 3.6tpa)

  • Formica (high pressure laminate) (production capacity of 2.7 mn

sheets pa)

  • SNF Sulphonated Naphthalene Formaldehyde (production capacity of

88tpa)

Activities: Commercial production of fertilizers and petrochemicals for domestic and export sale, with more than 20% of revenues coming from export sales Over 85% market share in Egypt Export markets include: 38 countries in Africa, the Middle East, Europe, the US and Latin America 630 employees EKH Ownership: 100.0% Current shareholders equity of c.USD 59 mn

KEY FACTS & FIG FIGURES

slide-18
SLIDE 18

Egypt Kuwait Holding | Investor Presentation 18 18

HIG IGHLIGHTS OF F 1H17 17

EGP 1.6bn total revenues

Up 93% Y-o-Y

EGP 513mn EBT

Up 100% Y-o-Y

EGP 504mn & 31% EBITDA Margin

Up 90% Y-o-Y

EGP 398mn Net Profit

Up 101% Y-o-Y

slide-19
SLIDE 19

Egypt Kuwait Holding | Investor Presentation 19 19

SP SPREA 5 5 YEARS PROGRESION

Sales (EGP mn) Gross Profit (EGP mn) Net Profit (EGP mn) (1)

430 530 667 727 1,124 201 012 201 013 201 014 201 015 201 016 101 156 169 211 420 201 012 201 013 201 014 201 015 201 016 65 107 126 125 302 201 012 201 013 201 014 201 015 201 016

EBT (EGP mn)

74 122 125 170 391 201 012 201 013 201 014 201 015 201 016

1) 2015 Sprea tax holiday expiration.

slide-20
SLIDE 20

Egypt Kuwait Holding | Investor Presentation 20 20

SP SPREA EXP XPANSIONS

Sprea witnessing an aggressive expansion plan to meet the growing demand for its products locally and in international markets targeting to grow its export footprint that represent c.20% in FY16 to 60% by 2019

Land

  • 54,400m2 new plot of lands secured to meet future expansion

1

Formica & HPL (high pressure laminated)

  • Adding 2 lines of Formica with total capacity of c.1.8 million sheets annually growing Sprea

Formica capacity to c.4.3 million sheets by 1Q 2018

  • HPL & Impregnation new line with total capacity of 720k sheets by 4Q 2017

2

Formaldehyde

  • Rehabilitation of formaldehyde reactor 4 adding capacity of c.12.ktpa

3

SNF Mega Expansion

  • Building on the success of SNF expansion Sprea considering to add 88ktpa SNF capacity

4

slide-21
SLIDE 21

Egypt Kuwait Holding | Investor Presentation 21 21

KEY FACTS & FIG FIGURES

Products & Production Capacity:

  • Granular urea (maximum production

capacity up to 635,000 tons)

  • Residual ammonia (up to 396,000

tons pa)

  • Ammonium sulphate (c.165,000

tons pa)

Subsidiary: International Petrochemicals Investments Company (IPIC)

  • Est 2012
  • Invests in and acquires promising

companies in the fertilizer and petrochemical industry

  • Target markets: Egypt and abroad

Activities: Commercial production of fertilizers for domestic and export sale

  • EKH Ownership: 42.6% with

Management Control

  • Remaining ownership: 30.1% other

shareholders of Bawabat Al Kuwait, 15% AbuQuir Fertilizer, and 12.3% held by other shareholders AlexFert is managed and controlled by EK Holding as well as consolidated in its financials

442 employees Established in July 2003

slide-22
SLIDE 22

Egypt Kuwait Holding | Investor Presentation 22 22

HIG IGHLIGHTS OF F 9M17 17

USD 131mn total revenues

Up 40% Y-o-Y

USD 31mn EBT

Up 240% Y-o-Y

USD 40mn & 31% EBITDA Margin

Up 83% Y-o-Y

USD8.7mn Att. Net Profit

Up 253% Y-o-Y

  • Urea short term momentum remains positive on

relatively limited supply from Chinese producers and strong demand

  • As of October 02,2017 MoA hiked the Urea

local price from USD170 to EGP181/ton

slide-23
SLIDE 23

Egypt Kuwait Holding | Investor Presentation 23 23

ENERGY AND ENERGY-RELATED SE SEGMENT

slide-24
SLIDE 24

Egypt Kuwait Holding | Investor Presentation 24 24

KEY FACTS & FIG FIGURES

Established in 2010

Activities:

  • Building and operating gas distribution

networks

  • Transporting gas to large power stations
  • Independent power producer with 1 of

the 2 available licenses to sell electricity directly to 3rd parties

1400 employees

83.97% 77.99% 83.97% 91.99%

Over 16% market share in Egypt

(1)

EKH Ownership: 100%

  • c.1.2 million Household Clients
  • c.6k Commercial Customers
  • c.625 Industrial Customers
slide-25
SLIDE 25

Egypt Kuwait Holding | Investor Presentation 25 25

NA NATENERGY PROGRESION

EGP 1 EGP 14 EGP 18 EGP 16 FY2014 FY2015 FY2016 FY2017 E EGP 13 EGP 14 EGP 24 EGP 25 FY2014 FY2015 FY2016 FY2017 E EGP 11 EGP 11 EGP 13 EGP 19 FY2014 FY2015 FY2016 FY2017 E EGP 49 EGP 100 EGP 147 EGP 254 FY2014 FY2015 FY2016 FY2017 E

Subsidiary FY 2014 FY 2015 FY 2016 FY 2017 E NatGas EGP49 mn EGP100 mn EGP147 mn EGP254 mn Fayum Gas EGP11 mn EGP11 mn EGP13 mn EGP19 mn Nubaria EGP13 mn EGP17 mn EGP24 mn EGP18 mn Kahraba EGP1 mn EGP14 mn EGP25 mn EGP16 mn NatEnergy EGP74 mn EGP142 mn EGP209 mn EGP307 mn

2014 – 2017E Net Income (EGP Mn)

slide-26
SLIDE 26

Egypt Kuwait Holding | Investor Presentation 26 26

NA NATENERGY CONCESSIONS

  • Phase I Fayum City
  • Phase II Fayum City
  • Extension Phase II Fayum City
  • Extension Phase II Fayum City

*

slide-27
SLIDE 27

Egypt Kuwait Holding | Investor Presentation 27 27

NA NATENERGY HIG IGHLIGHTS OF 9M17 17

EGP 667mn total revenues

Up 28% Y-o-Y

EGP362mn EBT

Up 53% Y-o-Y

EGP242mn & 36%EBITDA Margin

Up 27% Y-o-Y

EGP 1.37bn total Cash

Up 36% Y-o-Y

EGP285mn Net Profit

Up 50% Y-o-Y

EGP239mn Att. Net Profit

Up 54% Y-o-Y

slide-28
SLIDE 28

Egypt Kuwait Holding | Investor Presentation 28 28 EGP 426mn total revenues

Up 17%Y-o-Y

EGP 280mn EBT

Up 56% Y-o-Y

EGP 172mn & 38% EBITDA Margin

Up 35% Y-o-Y

  • As of October 18,2017 EGAS hiked the

household connection fees from EGP2,700 to EGP3,500/client

  • Connected 47,021 households in 9M17 and 239

industrial and commercial users.

EGP 1.13bn total Cash

Up 39% Y-o-Y

EGP 223mn Net Profit

Up 58% Y-o-Y

EGP 187mn Att. Net Profit

Up 64% Y-o-Y

NA NATENERGY KEY DR DRIVERS - NA NATGAS HIG IGHLIGHTS OF F 9M17 17

slide-29
SLIDE 29

Egypt Kuwait Holding | Investor Presentation 29 29

DIV IVERSIFIED SE SEGMENT

slide-30
SLIDE 30

Egypt Kuwait Holding | Investor Presentation 30 30

KEY FACTS & FIG FIGURES

Located in Assiut Activities: Produces various types of gray cement, clinker and related products such as cement bricks and ready-mix cement that meet Egyptian and international standards EKH ownership: c.38% Other partners: South Valley (46%), Hayel Said (10%), and others (6%) Paid up capital of c.EGP 614 mn Total production capacity of c.1.8 mn tons per annum The company is currently using mazot as the main source of power and is studying conversion to a dual system, mainly utilizing coal as well as waste Reached maximum production capacity at end-2013 Greenfield cement producer founded in 2007

slide-31
SLIDE 31

Egypt Kuwait Holding | Investor Presentation 31 31

KEY FACTS & FIG FIGURES

Established in 1981 and acquired by EKH in 1999 +19 branches Activities: Provides financial protection through innovative insurance products and services EKH ownership: c.32% Paid up capital of c.EGP 22.5mn Holds c.5% share of the Egyptian insurance market +300 employees Publicly listed Three Service Categories:

  • Corporate Solutions Plans
  • Individual Protection Plans
  • Group Life Insurance Plans
slide-32
SLIDE 32

Egypt Kuwait Holding | Investor Presentation 32 32

Al-Shorouk for Melamine and Resins (Al-Sharif):

  • Successful and well-

established tableware manufacturer

  • Founded in 1979 and acquired

by EKH in 2007

  • Benefitting from synergies

with Sprea Misr (see slide 16)

  • Strong consumer trust built on

commitment to health and safety

  • 2 production lines with a

combined 78 presses and

  • verall production capacity of

3,000 tons p.a.

  • +500 employees
  • ISO 9001:2008 and ISO

14001:2004 certified

  • Supplies all of the

hypermarkets in Cairo and distributes products across Alexandria and cities in Upper Egypt and the Delta

  • Export activities focus

primarily on the Middle East and Africa

Gas Chill

  • Established by EKH in 2006
  • Specializes in district cooling

systems for industrial and commercial clients

  • c.30 commercial clients in

Egypt and a view to expanding regionally in the future

  • Primarily caters to large

facilities such as malls, factories and hospitals through build-own-operate (BOO), build-operate-transfer (BOT), or engineering, procurement and construction (EPC) agreements

  • As a pioneer in cooling

technology in Egypt, Gas Chill is also looking into alternative forms of energy to power its state-of-the-art cooling systems, including harnessing readily available solar and wind energy in Egypt

Bawabet al Kuwait Holding Company:

  • Founded in 2004 by EKH
  • Is poised to become a major

investor in the fertilizers and petrochemicals sector

  • Holds ownership stakes in

AlexFert, and other petrochemical companies in the Gulf Cooperation Council (GCC)

  • EKH currently holds a 49.7%

stake

Globe Telecom:

  • Greenfield investment

established in 2001 by EKH

  • Focuses on providing

technology systems geared towards facilitating business

  • perations.
  • Conducts in-house software

research and development, and has partnerships with leading international firms such as Intergraph, Psion and TomTom

  • GT is the sole and exclusive

partner of Intergraph in Egypt, has agreements with CB&I and is the trusted partner for Egypt’s ports, as well as the main supplier for Enppi’s CCTV and Engineering Software (PPM)

KEY FACTS & FIG FIGURES

slide-33
SLIDE 33

Egypt Kuwait Holding | Investor Presentation 33 33

FIN INANCIAL HIG IGHLIGHTS

slide-34
SLIDE 34

Egypt Kuwait Holding | Investor Presentation 34 34

EKH EKH’S FIN FINANCIALS AR ARE SO SOLID

Total Assets (USD Mn) (1) Total Equity Book Value (USD Mn) (1) Total Attributable Net Profit (USD Mn) (1)

438 518 528 974 1,679 1,673 1,858 1,750 2,288 2,076 1,603 1,528 1,012 200 004 200 005 200 006 200 007 200 008 200 009 201 010 201 011 201 012 201 013 201 014 201 015 201 016 175 219 275 531 569 651 869 764 740 724 562 522 401 200 004 200 005 200 006 200 007 200 008 200 009 201 010 201 011 201 012 201 013 201 014 201 015 201 016

1) FY 2014 restated financials to account for asset impairments related to the company’s oil operations.

Return on Average Equity (ROAE) (1)

29 55 56 104 120 131 145 150 83 42

  • 95

36 63 200 004 200 005 200 006 200 007 200 008 200 009 201 010 201 011 201 012 201 013 201 014 201 015 201 016 18% 28% 23% 26% 22% 22% 19% 18% 11% 6%

  • 17%

7% 15% 200 004 200 005 200 006 200 007 200 008 200 009 201 010 201 011 201 012 201 013 201 014 201 015 201 016

Average 15.1%

slide-35
SLIDE 35

Egypt Kuwait Holding | Investor Presentation 35 35

EBIT ITDA & DE DEBT OVERVIEW

(In ‘000 USD) 1H 2017 Long-term interest-bearing debt 51,998 Short-term interest-bearing debt 87,966 Gross interest-bearing debt 139,964 Cash & quasi cash (434,383) Consolidated Net debt (cash) (294,419) Attributable Net debt (cash) (196,684)

Net Debt (Cash)

Segmented EBITDA (In ‘000 USD) 3Q 2017 9M 2017 Fertilizers and Petrochemicals 12,576 43,426 Energy & Energy Related 4,191 11,534 Diversified 1,398 5,583 Attributable EBITDA 18,165 60,543

Attributable EBITDA

slide-36
SLIDE 36

Egypt Kuwait Holding | Investor Presentation 36 36

SU SUMMARY CONSOLIDATED INC INCOME STATEMENT

USD 2Q 2017 2Q 2016 1H 2017 1H 2016 ENERGY & ENERGY RELATED Revenues 12 009 015 19 928 151 25 167 116 42 233 554 % Contribution 15% 22% 14% 22% COGS 7 363 489 12 404 868 16 307 839 26 559 555 Gross Profit 4 645 526 7 523 283 8 859 277 15 673 999 % Margin 39% 38% 35% 37% FERTILIZERS & PETROCHEMICALS Revenues 65 357 011 62 846 993 147 937 173 134 476 755 % Contribution 83% 70% 81% 69% COGS 50 965 645 49 651 030 106 379 640 102 555 188 Gross Profit 14 391 365 13 195 963 41 557 533 31 921 567 % Margin 22% 21% 28% 24% DIVERSIFIED Revenues 1 721 563 6 773 421 9 395 334 17 506 008 % Contribution 2% 8% 5% 9% COGS 378 501 (13 195) 1 045 794 (245 091) Gross Profit 1 343 062 6 786 616 8 349 540 17 751 099 % Margin 78% 100% 89% 101% TOTAL Revenues 79 087 589 89 548 565 182 499 623 194 216 317 COGS 58 707 636 62 042 703 123 733 273 128 869 652 Gross Profit 20 379 953 27 505 862 58 766 350 65 346 665 % Margin 26% 31% 32% 34% Operating Income 16 972 882 19 545 914 47 190 969 48 642 826 % Margin 21% 22% 26% 25% Net Income 21 038 208 15 274 160 48 909 700 42 277 072 Non-Controlling Interest 4 166 020 2 099 550 9 654 299 7 270 832 Attributable Net Income 16 872 188 13 174 610 39 255 401 35 006 240

slide-37
SLIDE 37

Egypt Kuwait Holding | Investor Presentation 37 37

CONSOLIDATED BALANCE SH SHEET

USD 1H 2017 FY 2016 Fixed Assets (Net) & Projects under Construction 231 389 181 233 880 932 Investments in Associates 63 809 788 63 782 363 Investments Available for Sale 112 658 920 116 953 348 Financial investments held-to-maturity 113 158 397 113 528 198 Other long-term Assets 70 129 984 69 493 955 Total Long-Term Assets 591 146 268 597 638 796 Cash 234 484 552 242 186 165 Investments in Treasury Bills & Bonds 23 065 457 18 613 529 Investments Held for Trading 12 845 657 15 159 821 Total Receivables & Other Debtors 78 304 365 44 441 573 Assets Held for Sale 38 368 005 38 368 005 Inventory & Work in Progress 57 261 784 54 103 292 Due from EGPC 2 255 141 1 416 404 Total Assets 1 037 731 229 1 011 927 585 USD 1H 2017 FY 2016 Bank Overdraft and STL 88 929 991 81 055 075 Due to Suppliers and Sub-Contractors 15 608 627 14 250 675 Due to EGPC 23 998 835 23 983 418 Provisions 23 236 700 21 448 727 Debtors and Other Credit Balances 148 331 323 99 497 366 Liabilities Held for Sale 4 600 4 600 Total Current Liabilities 300 110 076 240 239 861 Long-Term Loans 97 525 847 119 409 164 Other Long-Term Liabilities 309 057 372 908 Deferred Tax Liability 25 374 288 26 571 939 Total Long-Term Liabilities 123 209 192 146 354 011 Paid-in Capital 256 110 292 256 110 292 Reserves 191 513 013 189 894 520 Fair Value Reserve (166 463 510) (170 395 430) Retained Earnings 325 863 068 325 259 517 Translation Adjustments (210 712 432) (212 373 270) Formed versus-based payment transactions on shares 17 561 848 17 561 848 Total Equity Attributable to the Company 413 872 279 401 057 477 Non-Controlling Interest 200 539 682 224 276 236 Total Shareholders' Equity 614 411 961 625 333 713 Total SHE + Total Liabilities 1 037 731 229 1 011 927 585

slide-38
SLIDE 38

Egypt Kuwait Holding | Investor Presentation 38 38

CONSOLIDATED CASH FL FLOWS

USD 1H 2017 1H 2016 Cash flows from operating activities Net profit for the year before income tax 61 079 164 63 192 299 Adjustments for: Depreciation of fixed assets and amortization of other intangible assets 13 553 288 14 198 315 The company's share in associated companies' profits 1 206 695 (2 646 784) Re-evaluation of a portfolio of investments held for trading Output (372 780) (1 305 642) Financing expenses 5 370 833 5 370 833 Interest income (12 506 746) (6 678 738) Capital gains (998 204) (66 611) Provisions no longer required (10 603) (201 224) Provisions other than depreciation 1 858 169 22 481 548 Re Impairment losses on receivables and debit balances (5 133 200) (33 086 991) Impairment losses on receivables and debit balances 5 531

  • Re Impairment in assets value

3 000 000 The share of discontinued operations in the sister companies' profits

  • 296 494

Profit (loss) on disposal of discontinued operations - lost control

  • (11 092 038)

Operating profit before changes in assets & liabilities available from operating activities 61 925 035 50 461 461 Investments at fair value 2 329 254 82 692 184 Sales agents and notes receivable (23 039 896) (8 719 206) Accounts receivable and other receivables (6 439 762) (827 859) Inventory (5 810 129) 4 680 482 Work in progress 2 651 637 (869 755) Suppliers and subcontractors 1 357 952 4 507 557 Payables and other credit balances 35 298 123 (20 241 906) Egyptian General Petroleum Corporation 15 417 24 038 376 Frozen deposits

  • (18 649 997)

Time Deposits 93 608 039 Utilized provisioning (229 852) (166 800) Financing expenses paid (6 146 505) (5 394 092) Net change in assets of unconsolidated subsidiaries as a result of loss of control

  • (39 363 876)

Net cash available from (used in) operating activities 155 519 313 72 146 569 USD 1H 2017 1H 2016 Cash flows from investing activities Interest income 12 810 044 5 427 161 Payments for purchase of fixed assets and projects under implementation (8 730 188) (5 898 469) Payments for exploration and development assets 4 000 000

  • Proceeds from sale of fixed assets

15 66 611 Proceeds from the Egyptian General Petroleum Corporation (838 737) 5 413 709 Proceeds from sale of investments available for sale 14 576 522 4 469 307 Purchase of financial investments available for sale (14 732 221) (6 080 354) Proceeds from Financial investments held- to-maturity 18 255 152

  • Financial investments held- to-maturity payments

(11 544 321) (44 415 466) Dividend paid of sister companies

  • 1 200 000

Payments for investments in Treasury bills more than three months (16 542 880) (31 112 088) Proceeds from investments in Treasury bills more than three months 7 794 343 20 077 563 Net cash used in investing activities 5 047 729 (50 852 026) Cash flows from financing activities Repayment of long-term loans and bank facilities (9 992 067) (18 719 211) Proceeds from long-term loans and bank facilities 1 664 356

  • Proceeds from loans and short-term bank facilities

38 792 128 56 175 770 Repayment of loans and short-term bank facilities (39 631 229) (95 606 612) Proceeds from banks - overdraft 11 085 47 082 Outstanding of banks - overdraft (4 262 369) (38 153 612) Purchase of non-controlling interest (19 055 040) (3 043 968) Non-controlling stakes (12 698 394) 37 115 847 Dividends paid (38 670 7769) (36 824 402) Net cash used in financing activities (83 843 306) (99 009 106) Translation of financial statements of the accumulated differences (11 735 170) (4 023 482) Net change in cash and cash equivalents during the year (88 459 906) (81 738 045) Cash and cash equivalents at beginning of the period 103 682 428 346 901 181 Cash and cash equivalents at end of the year 192 142 334 265 163 136

slide-39
SLIDE 39

Egypt Kuwait Holding | Investor Presentation 39 39

APPENDIX 1: : ORGANIZ IZATION & GOVERNANCE

slide-40
SLIDE 40

Egypt Kuwait Holding | Investor Presentation 40 40

BOARD OF F DI DIRECTORS

  • Mr. Moataz Al-Alfi

Chairman of the Board and Chief Executive Officer (Executive)

  • Mr. Loay Jassim Al-

Kharafi Vice Chairman of the Board (Non-Executive)

  • Mr. Sherif El Zayat

CEO (Executive)

  • Mr. Saad Al-Saad

Member of the Board (Non-Executive)

  • Mr. Abdel Mohsen Al-

Fares Member of the Board (Non-Executive)

  • Mr. Marzouk Al-

Ghanim Member of the Board (Non-Executive)

  • Mr. Assad Al-Banwan

Member of the Board (Non-Executive)

  • Mr. Hussein Al-

Kharafi Member of the Board (Non-Executive)

  • Mr. Ayman Laz

Member of the Board (Non-Executive) Sheikh Mubarak Abdulla Al-Mubarak Al-Sabah Member of the Board (Non-Executive) Sheikh Fahd Hamed Abdulah El Sabah Member of the Board (Non-Executive)

  • Eng. Amin Abaza

Member of the Board (Non-Executive) Independent

  • Mr. Talal Jassim Al-

Khrafi Member of the Board (Non-Executive)

  • Mr. Husam Mohamed

El-Sayed Member of the Board (Non-Executive)

  • Eng. Ismail Osman

Member of the Board (Non-Executive)

  • Mr. Mohamed Kamel

Member of the Board (Non-Executive) Marzouk Al Kharafi Member of the Board (Non-Executive)

  • Mr. Hussam Al

Kharafi Member of the Board (Non-Executive)

  • Mr. Waleed El Zorba

Member of the Board (Non-Executive) Independent

slide-41
SLIDE 41

Egypt Kuwait Holding | Investor Presentation 41 41

MANAGEMENT TEAM

  • Mr. Moataz Al-Alfi

Chairman of the Board and Chief Executive Officer

  • Mr. Sherif El Zayat

CEO

  • Mr. Ayman Laz

Advisor to the Chairman and CEO

  • Mrs. Sahar Farahat

Senior Executive Vice President

  • Mr. Medhat Bonna

Group Chief Financial Officer

  • Mr. Khaled El-

Demerdash Group Legal Counsel

  • Mr. Tamer Badrawi

Chief Human Resources & Communication Officer

  • Mr. Hany Azzam

Head of Corporate Governance

  • Mr. Hany Ezzat

Group Treasurer

  • Mr. Sayed Hussein

Sector Head — Cement

  • Mr. Alaa El Banna

Vice President — Special Projects

  • Mr. Elhamy El Sheikh

Sector Head — Gas

  • Mr. Omar Foda

Director – Investments

  • Mr. Haitham Abdel

Moneim Senior Investor Relations Manager

  • Mr. Ashraf Abdel Aziz

Corporate Commercial Director

slide-42
SLIDE 42

Egypt Kuwait Holding | Investor Presentation 42 42

KEY MIL ILESTONES

1997

Establishment of Egypt Kuwait Holding (EKH)

1998

Establishment of NatGas (gas distribution company, with current partners including Royal Dutch Shell and GAIL India)

1999

  • NatGas commences
  • perations
  • Initial acquisition of a

significant stake in Delta Insurance (an Egyptian insurance company)

2002

Acquisition of majority stake in Egyptian Glass Company (EGC) (at the time the largest glass manufacturer in North Africa) through a joint venture with Guardian Industries

2003

  • Establishment of AlexFert (nitrogen fertilizer plant)
  • Acquisition of 11.75% in Egyptian Ferilizer Company (EFC)

(nitrogen fertilizer plant)

  • Acquisition of a minority stake in Fayum Gas (gas

distribution company)

  • Establishment of Nubaria Gas (gas distribution company)
  • Establishment of Kahraba (provides electrical and

thermal energy solutions)

2004

Acquisition of an additional stake in Delta Insurance

2005

Participated in the bidding process to acquire 100% of EFC, which ultimately led to the divestiture of the stake

2006

  • AlexFert commences operations
  • Establishment of Egyptian Tanker Company

(ETC) (crude marine transport services)

  • Establishment of Gas Chill Company (provides

cooling/heating systems)

2007

  • Capital increase by means of a c.USD 100 million rights issuance
  • Acquisition of Sprea and Plastichem (chemicals company)
  • Establishment of Building Materials Industries Company (BMIC)

(cement production company)

  • Acquisition of a controlling stake in Fayum Gas through a joint

venture with GAIL India

2008

  • Establishment of Nile Takaful and Nile Family Takaful

(an Egyptian insurance company) as a joint venture with Tokyo Marine

2009

  • Divestiture of EGC to

Guardian Industries

2011

  • Investment in

Egyptian Hydrocarbon Corporation (EHC) (mining grade ammonium nitrate Plant)

2012

  • BMIC begins
  • perations

2013

  • Divestiture of Nile Takaful to

Tokyo Marine

  • Investment in a global

infrastructure fund management company

2014

  • Completion of a

capital increase by means of a c.USD 110 mn rights issuance

2016

  • Sprea comments production of

Sulfonated Naphthalene Formaldehyde (SNF) with design capacity of 66,000 tpa.

  • Acquiring additional 9% of Natgas

raising EKH ownership to 84%

2015

  • Acquiring 18% of

Natgas raising EKH

  • wnership to 57%
slide-43
SLIDE 43

Egypt Kuwait Holding | Investor Presentation 43 43

CORPORATE CITI ITIZENSHIP

Corporate Governance

Egypt Kuwait Holding (EKH) is committed to promoting a responsible, ethical business culture which safeguards the interests of our shareholders, stakeholders, and the environment in which we operate. EKH assesses its policies and performance with respect to its Business Principles; Code of Conduct; Health, Safety, Security and Environment (HSSE) policies; and major issues of public concern on behalf of the

  • Board. Our corporate governance policies and practices are guided by internationally recognized standards such as the OECD Principles of

Corporate Governance.

Corporate Social Responsibility (CSR) Projects

From its support of NGOs through applications and donations, to its involvement in spreading software knowledge to Egyptian universities, Egypt Kuwait Holding is proud to have participated in numerous educational initiatives since 2014. EKH offers assistance to surrounding schools, supplying them with computers to further develop students’ cognitive and technical skills and providing support for renovating the infrastructure of the educational institutions. EKH is an active supporter of Injaz Egypt, an organization working to bridge the gap between the education system and the private sector. In partnership with the Ministry of Education and multinational and national companies, the program has positively impacted 500,000 Egyptian students in more than 451 public schools and 21 universities in 26 governorates since its establishment in 2003. Injaz Egypt is a member nation of Junior Achievement, a global economic education organization with a presence in over 100 countries, impacting over 8 million youth worldwide Egypt Kuwait Holding (EKH) prides itself on actively participating in sustainable development, focusing on improving communities in the emerging economies in which it does business and working diligently to create a better future for coming generations. From educational initiatives and contributions to NGOs and charities, to stringent measures aimed at minimizing its environmental footprint, EKH remains deeply committed to ensuring a sustainable future.

slide-44
SLIDE 44

Egypt Kuwait Holding | Investor Presentation 44 44

Haitham Abdel Moneim Senior Investor Relations Manager Telephone : +202-3363300 Fax : +202-3358989 E-mail : hmoneim@ekholding.com Website : www.ekholding.com