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

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

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Investor Presentation 1Q Q 2017 2017 RESIL ILIE IENCE Investments that Stand the Test of of Tim ime Cau autionin ing an and Forw orward Lo Lookin ing St Statements This presentation was prepared by Egypt Kuwait Holding ( EKH

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SLIDE 1

Investor Presentation 1Q Q 2017 2017

RESIL ILIE IENCE

Investments that Stand the Test of

  • f Tim

ime

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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 of 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.

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SLIDE 3

AGENDA

EKH EKH Overview Investment Port

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

Futu Future Exp Expansion

  • MDF Project

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

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SLIDE 4

Egypt Kuwait Holding | Investor Presentation 4

EKH KH OVERVIEW

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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 401

401 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]

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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

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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 37.8%

NatEnergy (Gas Distribution Business Holding Company)

Effective Ownership 100.00%

Effective Ownership 30.00%

Building Materials Industries Company (Cement Plant)

Effective Ownership 38.03%

Delta Insurance (Life and General Insurance Company)

Effective Ownership 32.03%

Global Infrastructure Fund Management Company

Effective Ownership 15.00%

Egyptian Company for Petroleum Transport (Shipping Company) Fertilizers and Petrochemicals Segment

(58% of Group Profitability in 1Q17)

Energy and Energy-Related Segment

(19% of Group Profitability in 1Q17)

Diversified Segment

(23% of Group Profitability in 1Q17)

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SLIDE 8

Egypt Kuwait Holding | Investor Presentation 8

OPERATIONAL HIG IGHLIGHTS OF F THE 1Q17 17

1Q 2017 Margins

Gross Profit Margin Attributable EBITDA Margin

37% 35%

Q4 2016 Margins

Gross Profit Margin

35% 38%

Revenues (USD mn)

80 105 103 4Q 2016 1Q 2016 1Q 2017

Gross Profit (USD mn)

28 38 38 4Q 2016 1Q 2016 1Q 2017

Attributable Net Income (USD mn) Attributable EBITDA (USD mn)

15 22 22 4Q 2016 1Q 2016 1Q 2017 19 27 25 4Q 2016 1Q 2016 1Q 2017

Attributable EBITDA Margin

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SLIDE 9

Egypt Kuwait Holding | Investor Presentation 9

OUR PORTFOLIO IO

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SLIDE 10

Egypt Kuwait Holding | Investor Presentation 10 10

FERTILIZERS AND PETROCHEMICALS SE SEGMENT

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SLIDE 11

Egypt Kuwait Holding | Investor Presentation 11 11

KEY FACTS & FIG FIGURES

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)

Subsidiary: Plastichem 100% owned Target markets: Arab Countries and Africa Activities: Commercial production of fertilizers and petrochemicals for domestic and export sale, with more than 35% of revenues coming from export sales Over 85% market share in Egypt EKH acquired Sprea Misr and its subsidiary Plastichem in 2007 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 63 mn

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SLIDE 12

Egypt Kuwait Holding | Investor Presentation 12 12

HIG IGHLIGHTS OF F 1Q17 17

EGP 585mn total revenues

Up 124% Y-o-Y

EGP 210mn EBT

Up 181% Y-o-Y

EGP 210mn & 36% EBITDA Margin

Up 172% Y-o-Y

EGP 163mn Net Profit

Up 186% Y-o-Y

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Egypt Kuwait Holding | Investor Presentation 13 13

SP SPREA 10 10 YEARS PROGRESION

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

302 401 282 353 418 430 530 667 727 1,124 200 007 200 008 200 009 201 010 201 011 201 012 201 013 201 014 201 015 201 016 88 104 94 102 102 101 156 169 211 420 200 007 200 008 200 009 201 010 201 011 201 012 201 013 201 014 201 015 201 016 37 41 42 59 55 65 107 126 125 302 200 007 200 008 200 009 201 010 201 011 201 012 201 013 201 014 201 015 201 016

EBT (EGP mn)

45 43 48 67 62 74 122 125 170 391 200 007 200 008 200 009 201 010 201 011 201 012 201 013 201 014 201 015 201 016

1) 2015 Sprea tax holiday expiration.

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SLIDE 14

Egypt Kuwait Holding | Investor Presentation 14 14

SP SPREA EXP XPANSIONS

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

Land

  • 28,000m2 new plot of land adjacency to Sprea plant to meet future expansion is secured

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 3Q 2017

  • Formica expansion dedicated in full towards export markets
  • HPL & Impregnation new line with total capacity of 720k sheets by 4Q 2017

2

Formurea

  • Adding 2 lines of Formurea Powder with total capacity of c.10.8 ktpa
  • growing Sprea Formurea capacity to c.33.3 ktpa by 2Q 2017

3

SNF Mega Expansion

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

2Q2018

  • A new plot of land adjacency to Sprea plant to meet future expansion is secured

4

Formaldehyde

  • Growing Sprea current formaldehyde capacity that run at 90% utilization rate
  • Formaldehyde capacity is essential for Sprea backward integration

5

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SLIDE 15

Egypt Kuwait Holding | Investor Presentation 15 15

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: 37.8% with

Management Control

  • Remaining ownership: 34.9% 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

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SLIDE 16

Egypt Kuwait Holding | Investor Presentation 16 16

HIG IGHLIGHTS OF F 1Q17 17

USD 50mn total revenues

Up 28% Y-o-Y

USD 13mn EBT

Up 85% Y-o-Y

USD 20mn & 41% EBITDA Margin

Up 54% Y-o-Y

  • Operates at 119% utilization rate rates in 1Q 2017 vs. forecasted utilization of 80% according to EGAS plan.
  • Gas pricing formula based to correlate the price of the natural gas to the price of the urea with a bottom price of $4.5 /MBTU based on

urea price $250/ton and every $1 dollar increase in the urea price the gas increase by ₵1 Cent

  • The settlement between Bawabat El Kuwait and Egyptian Government have been approved & signed

USD1.8mn Att. Net Profit

Up 105% Y-o-Y

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SLIDE 17

Egypt Kuwait Holding | Investor Presentation 17 17

ENERGY AND ENERGY-RELATED SE SEGMENT

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SLIDE 18

Egypt Kuwait Holding | Investor Presentation 18 18

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 15% market share in Egypt

1) As of August 12th ,2015 Natenergy acquired of an additional 18% stake in Natgas 2) As of April 01st,2016 Natenergy increased its stake in Natgas by 9% via Capital Increase

(1) & (2)

EKH Ownership: 100%

  • c.1.2 million Household Clients
  • c.6k Commercial Customers
  • c.625 Industrial Customers
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SLIDE 19

Egypt Kuwait Holding | Investor Presentation 19 19

NA NATENERGY CONCESSIONS

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

*

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Egypt Kuwait Holding | Investor Presentation 20 20

NA NATENERGY HIG IGHLIGHTS OF 1Q17 17

EGP 234mn total revenues

Up 24% Y-o-Y

EGP115mn EBT

Up 55% Y-o-Y

EGP72mn & 31%EBITDA Margin

Up14% Y-o-Y

EGP 1.23bn total Cash

Up 23% Y-o-Y

EGP92mn Net Profit

Up 53% Y-o-Y

EGP77mn Att. Net Profit

Up 71% Y-o-Y

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SLIDE 21

Egypt Kuwait Holding | Investor Presentation 21 21

NA NATENERGY KEY DR DRIVERS - NA NATGAS HIG IGHLIGHTS OF F 1Q17 17

EGP 151mn total revenues

Up 19%Y-o-Y

EGP 91mn EBT

Up 60% Y-o-Y

EGP 51mn & 30% EBITDA Margin

Up 19% Y-o-Y

  • Connected 27,194 households in 1Q17 and 88

industrial and commercial users.

EGP 818mn total Cash

Up 14% Y-o-Y

EGP 74mn Net Profit

Up 60% Y-o-Y

EGP 62mn Att. Net Profit

Up 82% Y-o-Y

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SLIDE 22

Egypt Kuwait Holding | Investor Presentation 22 22

DIV IVERSIFIED SE SEGMENT

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Egypt Kuwait Holding | Investor Presentation 23 23

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

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SLIDE 24

Egypt Kuwait Holding | Investor Presentation 24 24

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
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SLIDE 25

Egypt Kuwait Holding | Investor Presentation 25 25

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 75 presses and overall production capacity of 2,500 tons p.a.

  • Plans to expand its production

capacity to 3,000 tons p.a. with 5 new presses

  • +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
  • n 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-

  • perate (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 42% stake

Globe Technologies:

  • Greenfield investment established

in 2001 by EKH

  • Focuses on providing technology

systems geared towards facilitating business operations.

  • 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

Global Infrastructure Fund Management Co:

  • I Squared Capital announced the

closure of the Fund in April 2015, with total commitments of USD 3 bn

  • Marketing process was

completed in 15 months with

  • ver 45 investors from North

America (31%), Europe (27%), Australia (17%), the Middle East (15%), and Asia (10%)

  • c.70% of the investors are

pension funds, superannuation funds and sovereign wealth funds with insurance companies, asset managers and family offices representing the balance

  • The Fund focuses on global

infrastructure opportunities in diverse sectors of high-growth economies, maintaining a robust pipeline of investment

  • pportunities in the U.S., Europe,

China and India

  • EKH has an effective ownership
  • f 15%
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SLIDE 26

Egypt Kuwait Holding | Investor Presentation 26 26

FUTURE EXPANSI SION

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Egypt Kuwait Holding | Investor Presentation 27 27

FU FUTURE EXP XPANSIONS - MDF PROJE JECT

A Growing MDF Market Gap in the Egyptian Market…

  • Represent the 2nd largest Engineered wood market of 45% following Plywood

representing 49%.

  • Only one producer “Nagaa Hamady Co”.
  • Huge market gap of 415k m3
  • Market gap to reach 773k m3 in 2020f.
  • Imports of 431,000 m3 FYE 2015.
  • Demand is expected to grow at a 12% CAGR.

Year/’000 m3 Local Production Imports Exports Consumption 2015 53 431 16 468 2016f 56 488 18 526 2017f 59 553 20 591 2018f 62 626 23 665 2019f 65 708 26 747 2020f 68 802 29 841

High dependence on MDF Imports in the regional market… 570 316 181 1,067 209.0 115.9 66.4 391.2 200 400 600 500 1000 1500 000 m3 Value in US$ Mn Integration with Sprea Misr

  • Main supplier of resin which represent 42% of MDF raw-material cost &

30% of COGS (≈ EGP 71 Million per annum).

  • Currently imports around 75,000 m3 of MDF
  • Own Impregnation line adding decorative melamine paper to the MDF

sheets & sell it to local market

3 1 2

Project rationale supported by the following…

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SLIDE 28

Egypt Kuwait Holding | Investor Presentation 28 28

FU FUTURE EXP XPANSIONS - MDF PROJE JECT

Key Financial Highlights – Capacity of 1000 M3/Day EGP mn 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F 2027F 2028F Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Capacity 150,000 150,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Revenues 655.4 746.7 1,217.2 1,640.6 1,758.4 1,797.6 1,837.8 1,879.0 1,921.3 1,964.7 EBITDA 321.8 352.2 545.8 721.8 744.7 728.4 709.6 688.2 663.9 636.5 EBITDA Margin

  • %

49.1% 47.2% 44.8% 44.0% 42.4% 40.5% 38.6% 36.6% 34.6% 32.4% Net Profit 123.3 153.9 268.7 381.8 418.1 423.9 427.8 429.7 420.7 406.3 NPM - % 18.8% 20.6% 22.1% 23.3% 23.8% 23.6% 23.3% 22.9% 21.9% 20.7% Total Investment Cost EGP 2 Bn MDF Production Plant EGP 1.6 Bn Agriculture EGP 0.4 Bn MDF Production Plant Plan Investment Cost Operation Year Line 1 EGP 0.9 Bn January 2019 After 1.5 years from operations , July 2020, will start constructing new line to increase the total capacity to 1000 M3/Day Line 2 EGP 0.7 Bn July 2021

* Tax exempted till Year 6 - 2024

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SLIDE 29

Egypt Kuwait Holding | Investor Presentation 29 29

FIN INANCIAL HIG IGHLIGHTS

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SLIDE 30

Egypt Kuwait Holding | Investor Presentation 30 30

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%

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Egypt Kuwait Holding | Investor Presentation 31 31

EBIT ITDA & DE DEBT OVERVIEW

(In ‘000 USD) 1Q 2017 Long-term interest-bearing debt 102,884 Short-term interest-bearing debt 81,787 Gross interest-bearing debt 184,671 Cash & quasi cash (515,744) Consolidated Net debt (cash) (331,073) Attributable Net debt (cash) (207,302)

Net Debt (Cash)

Segmented EBITDA (In ‘000 USD) 1Q 2017 4Q 2016 Fertilizers and Petrochemicals 18,958 11,301 Energy & Energy Related 3,488 2,886 Diversified 2,083 5,516 Attributable EBITDA 24,529 19,704

Attributable EBITDA

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Egypt Kuwait Holding | Investor Presentation 32 32

APPENDIX 1: : ORGANIZ IZATION & GOVERNANCE

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Egypt Kuwait Holding | Investor Presentation 33 33

BOARD OF F DI DIRECTORS

  • Mr. Moataz Al-Alfi

Chairman of the Board and Chief Executive Officer

  • Mr. Loay Jassim Al-

Kharafi Vice Chairman of the Board

  • Mr. Sherif El Zayat

CEO

  • Mr. Saad Al-Saad

Member of the Board

  • Mr. Abdel Mohsen Al-

Fares Member of the Board

  • Mr. Marzouk Al-

Ghanim Member of the Board

  • Mr. Assad Al-Banwan

Member of the Board

  • Mr. Hussein Al-

Kharafi Member of the Board

  • Mr. Ayman Laz

Member of the Board Sheikh Mubarak Abdulla Al-Mubarak Al-Sabah Member of the Board Sheikh Fahd Hamed Abdulah El Sabah Member of the Board

  • Eng. Amin Abaza

Member of the Board

  • Mr. Talal Jassim Al-

Khrafi Member of the Board

  • Mr. Husam Mohamed

El-Sayed Member of the Board

  • Eng. Ismail Osman

Member of the Board

  • Mr. Mohamed Kamel

Member of the Board Marzouk Al Kharafi Member of the Board

  • Mr. Hussam Al

Kharafi Member of the Board

  • Mr. Waleed El Zorba

Member of the Board

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Egypt Kuwait Holding | Investor Presentation 34 34

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. Mr. Mahmoud

Moharram General Counsel International

  • 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

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SLIDE 35

Egypt Kuwait Holding | Investor Presentation 35 35

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%
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Egypt Kuwait Holding | Investor Presentation 36 36

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.

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Egypt Kuwait Holding | Investor Presentation 37 37

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