Investor Presentation First Quarter 2019 24 th of April 2019 | - PowerPoint PPT Presentation

Investor Presentation – First Quarter 2019 24 th of April 2019 | Cairo, Egypt

1 Economic Overview

The Group Thrives on Improved Macroeconomic Conditions Q1 2019 Egyptian treasury yields saw a slight decrease as domestic economic conditions pick up and the CBE cut policy rates by 100 bps in Jan 2019. Giving more room for growth in equity markets Economic USD/EGP Policy Rates Monthly Average 1-Year T-bill Yields (%) (%) (%) 19.25% 20.0 19.8 19.8 Fundamentals 17.9 17.9 17.9 17.9 18.25% 19.3 19.1 17.7 17.25% 17.25% 17.7 17.25% 17.3 17.9 17.9 17.8 17.9 17.9 17.5 17.5 17.25% 17.25% 17.2 16.25% 07/09/2017 02/18/2018 04/01/2018 05/20/2018 06/28/2018 11/18/2018 12/27/2018 01/14/2018 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Foreign inflows in treasuries recorded USD1bn in Jan-19, The decision capitalizes on improving FX, capital flows, and Yield stability still remains safeguarded despite the CBE ’ s following 8 consecutive months of outflows, signaling inflation dynamics, and bodes well with Egypt ’ s favorable decision to scrap the repatriation mechanism banks ’ NFA bottomed out at USD-6.3bn in Dec-18 balance of payments during 2019 The untapped potential of NBFS in Egypt remains to be significant despite the strong growth over the past 5 years. CI Capital has a solid presence in the leasing and microfinance sectors and has recently established a mortgage finance subsidiary. Total Leasing Contracts Value Total Micro-financing Value Value of Mortgage Financing (EGP bn) (EGP bn) (EGP bn) 11.5 41.7 10.7 8.5 28.6 7.0 7.1 5.8 21.5 19.4 4.8 4.5 4.3 7.0 6.1 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2016 2017 2018 With the inflationary pressure on real estate prices rising, The Microfinance industry is one of the most un-tapped Growth was driven by an increase in demand in all leasing mortgage financing witnessed moderate growth over the past markets in Egypt allowing total loans to reach a record EGP products including equipment, machinery and real estate years due to the high interest rate environment 11.5 billion Source: CBE & Financial Regulatory Authority 2

2 Consolidated Results

Key Consolidated Metrics Q1 2019 Q1 2019 Consolidated Total Revenues Net Operating Profit Operating Profit Results Margin EGP 728.6 mn EGP 189.2 mn 26.0% Group ↑ 34% y-o-y ↑ 32% y-o-y Q1 2018 EGP 542.1mn Q1 2018 EGP 143.9mn Q1 2018 26.5% Hig ighlights Cost-income 1 (%) Net Profit Margin Annualized Return on Av. Equity (ROAE) 20.0% 19.3% 15.8% Q1 2018 20.4% Q1 2018 15.1% Net Income By Business Line Q1 2018 Q1 2019 IB & IB & EGP EGP Holding, Leasing, Holding, +40.9% y-o-y 115.5 81.9 27.0% Leasing, 46.3% 33.2% mn 52.8% mn Micro- Micro- finance, finance, 20.2% 20.5% 1. Cost-income is calculated as people ’ s cost and other SG&A divided by total revenue 4

Q1 2019 Consolidated Summary Consolidated Income Statement Results Results commentary (EGP mn) Q1 2019 Q1 2018 % Change Consolidated Revenue 728.6 542.1 34.4% Statement of f Consolidated revenue grew 34.4% y-o-y given strong growth in revenues from the Leasing 527.5 355.8 48.2% financing business. NBFS made up 83.5% of Profit and consolidated revenue while the investment bank along with the holding Micro-finance 80.5 64.8 24.2% company represented the remaining Loss 16.5%. Investment Bank & Holding 120.5 121.4 -0.7% Operating Expenses (539.4) (398.2) 35.5% Total operating expenses grew 35.5% y-o-y as a result of regular salary increases and Finance cost (247.6) (167.5) 47.8% an expansion in leasing and microfinance operations. People ’ s Cost & Other SG&A represented Dep. of finance leased assets (151.1) (120.3) 25.6% 19.3% of revenue, down from 20.4% in the comparable year. People Cost & Other SG&A ( 140.7) (110.4) 27.5% Net Operating Profit 189.2 143.9 31.5% Net operating profit grew 31.5% y-o-y on the group ’ s strong operational performance Net Operating Margin 26.0% 26.5% Net profit after tax and minority reached EGP 115.5 mn in Q1 2019, representing an annualized ROAE of 20.0%. Net Profit After Tax & Minority 115.5 81.9 40.9% 5

Summary Consolidated Balance Statement Q1 2019 Consolidated Results (EGP mn) 31-Mar-19 31-Dec-18 Results commentary Settlement guaranteed fund 7.6 10.2 PP&E 128.8 125.3 Goodwill 348.8 348.8 Bala lance Sheet Finance leased assets, net 6,923.9 5,838.5 Securitization difference, net 250.8 237.7 Total assets grew 11.2% Q-o-Q on the Other non-current assets 147.8 149.6 back of higher lease bookings during Non-current assets 7,807.7 6,710.1 the quarter which resulted in a larger Cash and cash equivalents 1,004.6 1,214.8 leasing portfolio . Debit clients 1,663.2 1,491.0 Clearing accounts – Debit 9.5 0.6 Other current assets 114.8 113.5 Current assets 2,792.0 2,819.9 Total assets 10,599.7 9,530.0 Paid-in capital 544.2 544.2 Retained earnings 869.7 826.7 Share premium reserve 858.5 858.5 Other 66.1 65.3 Shareholders ’ equity (Parent company) 2,338.5 2,294.8 Shareholders ’ equity (Non-controlling 138.6 138.2 interest) Total shareholder ’ s equity & minority 2,477.1 2,433.0 interest LT & ST loans and facilities increased Long-term loans & facilities 5,575.7 4,511.3 23.6% and 6.1% respectively, Q-o-Q to Other Long Term Liabilities 176.5 161.7 accommodate the increase in leasing Non-current liabilities 5,752.3 4,673.0 portfolio (grew 18.6% Q-o-Q). Short-term loans & facilities 1,526.7 1,438.6 Credit customers 315.2 268.5 Other Short Term Liabilities 528.4 716.9 Current liabilities 2,370.3 2,424.0 Total liabilities & equity 10,599.7 9,530.0 6

3 Business Lines ’ Performance

Q1 2019 Business Lines ’ Leasing Revenue – EGP mn Contribution to Net Profit Performance 527.5 NBFS - 355.8 Leasing, 52.8% Leasing Q1 2018 Q1 2019 Total Outstanding Leasing Portfolio Net Interest Income – EGP mn (EGP bn) 86.1 Corplease ’ s leasing Net interest income grew portfolio grew 71% y-o-y 7.0 61.0 41% y-o-y on a larger as economic recovery outstanding portfolio 4.1 continues Q1 2018 Q1 2019 Q1 2018 Q1 2019 Key Gr Growth Driv Drivers New bookings Market Share 1 Net interest margin (NIM) EGP 1.3 bn 13.1% 5.3% + 4.4x y-o-y 1. The lasts publically available date published by the FRA for FY 2018 as Q1 2019 Results are not yet available 8

Q1 2019 Business Lines ’ Microfinance Revenue – EGP mn Contribution to Net Profit Performance 80.5 NBFS - 64.8 Micro-finance Micro- finance, 20.2% Q1 2018 Q1 2019 Total Microfinance Loans Outstanding Net Interest Income – EGP mn (EGP mn) Reefy capitalized on its The expanding loan diverse geographical 629.6 58.7 book resulted in presence to grow it loan significant growth in net 41.8 532.1 book by 18% y-o-y interest income Q1 2018 Q1 2019 Q1 2018 Q1 2019 Key Gr Growth Driv Drivers Number of branches Number of active borrowers Net interest margin (NIM) 46 93.7 k 37.7% + 14.7k y-o-y 9

Q1 2019 Business Lines ’ Performance Contribution to Net Profit IB& Holding Revenue – EGP mn In Investment IB & 134.8 Holding, 119.8 27.0% Bank & Holding - Q1 2018 Q1 2019 Financial Revenue By Line of Business - EGP mn IB & Holding Net Profit Performance 34.1 119.8 19.9 26.6 25.4 66.7 6.6 Brokerage Asset Mgmt. IB Advisory Capital Markets Total Q1 2018 Q1 2019 Key Performance Indicators IB Advisory Revenues Research - Stocks Brokerage - Market Asset Management - Covered Share 1 AUM ’ s 110 8.5 % EGP 26.6 bn EGP 9.0 bn + 11% y-o-y + 9.4% y-o-y 1. Market Share is for transactions on the main market excl. deals. Source: EGX 10

About CI Capital Stock CI Capital is a diversified financial services group and Egypt ’ s leading provider of leasing, microfinance, and investment banking products and services. Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide Information range of financial solutions to a diversified client base that includes global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors. CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt ’ s first licensed MFI, Reefy. Share Information Tic icker: CICH.CA; CICH EY EY Sha Shares s Outstanding: 54 544,1 4,184 84,03 033 Paid aid-In Cap apital: EGP 54 544,18 4,184,0 ,033 IR Contacts +20 (02) 3331 8154 Investor.relations@cicapital.com CI Capital Holding, 64-66 Mohie El Din AboulEzz St., Dokki, Egypt 11