Investor Presentation January 2018 Egypt’s fastest growing pharmaceutical distributor 2 nd largest pharmaceutical distributor with a market share of c.19.2% Over 35k clients served annually through a network of 55 operational sites and a fleet of c.600 vehicles 5-year revenue CAGR of 31% compared to market CAGR of c.17% www.ibnsina-pharma.com 1 Strictly Private & Confidential
Disclaimer THIS DOCUMENT CONTAINS STATEMENTS THAT ARE, OR MAY BE DEEMED TO BE, “FORWARD -LOOKING STATEMENTS” WHICH ARE NOT HISTORICAL FACTS BUT RATHER ARE STATEMENTS OF FUTURE EXPECTATIONS AND PROJECTIONS BASED ON MANAGEMENT’S VIEWS AND ASSUMPTIONS REGARDING TRENDS IN THE EGYPTIAN, MIDDLE EASTERN, EUROPEAN AND INTERNATIONAL FINANCIAL MARKETS AND REGIONAL ECONOMIES, THE POLITICAL CLIMATE IN WHICH THE COMPANY OPERATES AND OTHER FACTORS. THESE FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY, INCLUDING THE WORDS “ANTICIPATES,” “BELIEVES,” “ESTIMATES,” “EXPECTS,” “INTENDS,” “MAY” OR “SHOULD,” OR, IN EACH CASE, THE NEGATIVE OR OTHER VARIATIONS OR COMPARABLE TERMINOLOGY OR BY DISCUSSIONS OF STRATEGIES, PLANS, OBJECTIVES, GOALS, FUTURE EVENTS OR INTENTIONS. FORWARD-LOOKING STATEMENTS APPEAR IN A NUMBER OF PLACES THROUGHOUT THIS DOCUMENT AND INCLUDE STATEMENTS REGARDING MANAGEMENT’S INTENTIONS, BELIEFS OR CURRENT EXPECTATIONS CONCERNING, AMONG OTHER THINGS, THE COMPANY’S RESULTS OF OPERATIONS, FINANCIAL CONDITION, LIQUIDITY, PROSPECTUS, GROWTH, STRATEGIES AND DIVIDEND POLICY AND THE DEVELOPMENT OF INDUSTRIES IN WHICH THE COMPANY OPERATES. THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES, MANY OF WHICH MAY BE BEYOND THE COMPANY’S CONTROL. THEREFORE, IMPORTANT FACTORS MAY BE OF CONSEQUENCE TO THE COMPANY’S ACTUAL FUTURE RESULTS INSOFAR THAT THEY MAY DIFFER MATERIALLY FROM EXPECTATIONS. ALL FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS DOCUMENT. NEITHER THE COMPANY, THE SHAREHOLDERS NOR THE SELL-SIDE ADVISOR UNDERTAKE ANY OBLIGATION TO UPDATE, REVISE, OR STATE PUBLICLY ANY CHANGE IN FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS, OR OTHERWISE. ALTHOUGH THE COMPANY BELIEVES THAT THE PLANS, INTENTIONS, AND EXPECTATIONS REFLECTED IN, OR SUGGESTED BY, THE FORWARD-LOOKING STATEMENTS MADE IN THIS DOCUMENT ARE REASONABLE, THE COMPANY MAY NOT ULTIMATELY ACHIEVE SUCH PLANS, INTENTIONS, OR EXPECTATIONS. THESE CAUTIONARY STATEMENTS QUALIFY ALL FORWARD-LOOKING STATEMENTS ATTRIBUTABLE TO THE COMPANY OR ANY PERSON(S) ACTING ON ITS BEHALF. BY ACCEPTING RECEIPT OF THIS DOCUMENT, THE INVESTOR ACKNOWLEDGES ITS STRICT CONFIDENTIALITY. THIS DOCUMENT MAY NOT BE COPIED, REPRODUCED, OR DISTRIBUTED TO OTHERS AT ANY TIME WITHOUT PRIOR WRITTEN CONSENT OF THE COMPANY. 2
Agenda Introduction to the Company I Key Investment Highlights II Appendix III Contact Information IV 3
Contents Introduction to the Company 4
Introduction to the Company II The Company in numbers 17+ years Experience in pharmaceutical distribution # 1 Growing pharmaceutical distributor in Egypt 2 nd Largest pharmaceutical distributor with c.19.2% market share ¹ in 2017 Over 35k Retail pharmacies, hospitals & wholesalers served annually Over 325 Multinational & local pharmaceutical suppliers, covering over 91% of the market value 5,500+ Employees Operational sites 2 including distribution hubs and warehouses 55 c.600 Distribution vehicles EGP 9.1bn LTM Revenues as of Sep 2017 3 EGP 341mn LTM EBITDA as of Sep 2017 31% Revenue CAGR from 2012-2016 46% Net Profit CAGR from 2012-2016 (1 ) Market share covers pharmacy retail sales which represent the majority of Egypt’s pharmaceuticals market; (2) expected by end of 2017; (3) Pro forma 5 Source: IMS Health, Company Management
Introduction to the Company II Ibnsina Pharma, Egypt’s fastest growing pharmaceutical distributor… Market Share ¹ Company Overview Established in 2001 , Ibnsina Pharma “ISP” is the fastest growing, and 2 nd largest, pharmaceutical distributor in Egypt with a market share of c.19.2% Nationwide distribution network with 55 operational sites including distribution hubs and central warehouses, supported by a fleet of c.600 vehicles serving 19.2% over 35k retail pharmacies, hospitals & wholesalers across Egypt 9.9% 2009 2017 Pioneer in introducing value added services for its customers including telesales, same-day-delivery and creative commercial activities, in addition to third party logistics services for its suppliers including; warehousing, transportation, data analytics, packaging and relabeling, and quarantine inspections Shareholding Structure 1 Key Suppliers Key Financial Highlights EBRD 10.10% Revenue 2 & GPM | EGP mn, % Faisal EBITDA & Margin | EGP mn, % Islamic Abdel Bank Gawad & 12.58% Family 16.54% 8.2% 8.20% 7.7% 3.7% 7.3% 7.2% 6.8% 6.8% 7.20% 3.1% Others 2.9% 2.9% 9,134 6.20% 2.7% 2.4% 7.22% 7,372 5.20% 5,439 4.20% 341 Mahgoub 4,302 3.20% 229 3,361 Group 155 2,535 2.20% 122 89 16.25% 62 1.20% Free 0.20% -0.80% Float 3 2012 2013 2014 2015 2016 LTM 2012 2013 2014 2015 2016 LTM 37.31% Certifications Net Profit & Margin | EGP mn, % RoE | % Quality Environmental Road Safety Health & Safety 1.8% 49% 166 1.4% 41% 1.1% 36% 36% 1.0% 102 32% 32% 0.9% 0.9% 57 35 38 23 4 2012 2013 2014 2015 2016 LTM 2012 2013 2014 2015 2016 LTM (1) Post IPO & Capital Increase; (2) Pro forma gross revenue includes part of 3PL revenue that was stated as other income until 2016; (3) Oct 2016 – Sept 2017; (4) Normalized 6 Source: IMS Health, Company Management
Introduction to the Company II …with a proven track record of success… 2015 Expansion: 2009-2012 Launch: 2001-2005 Investment to add 15 distribution Established in 2001 under the name centers & 5 offices, and enhance “Ibnsina Laborex ” in partnership with efficiency through standardizing Pinault Printemps Redoute (“PPR”) operational processes through its subsidiary Eurapharma 27 Operational Sites 7 Operational Sites 2012 2005 30k Clients 10.5% 12k 7.0% Clients EGP 2.5bn Revenue EGP 665mn Revenue Growth: 2013-Present Capture market share through implementing value-base differentiation In partnership with strategy & launch of new revenue streams focusing on enhancing margins Turnaround: 2006-2008 55 Operational Sites 2017 +35k Clients Management buy-out of PPR shares, 19.2% name changed to “Ibnsina Pharma“; EGP 9.1bn LTM Revenue optimized cost structure & turned the Company profitable 7 Operational Sites 2008 16k Clients 8.8% Market Share EGP 1.0bn Revenue Source: IMS Health; Company Management 7
Introduction to the Company II …leveraging a nationwide distribution network to access over 35k clients Distribution Network Revenue by Geography Revenue by Business Line 4 2 Distribution Centers (DC) 5 Platforms (Inbound Logistics) 3.0% 0.3% 3.0% 11.1% 1 2 Tender DC Reverse Logistics Warehouses 9.0% 3PL 1 Warehouses 3 2 Personal Care DC 44.2% 18.9% 9M 2017 9M 2017 14.0% 71.0% 25.7% Cairo & Canal Delta Pharmacies Wholesale Tenders Upper Egypt Alexandria Hospitals Personal Care 3PL & Other Number of Clients Number of Operational Sites 35,612 55 32,052 49 30,425 28,524 28,231 42 38 30 2013 2014 2015 2016 9M17 2013 2014 2015 2016 2017e (1) Third Party Logistics Source: Company Management 8 Strictly Private & Confidential
Key Investment Highlights 9
III Key Investment Highlights Key Investment Highlights 1 Solid Demographic A rapidly growing population coupled with a growing middle class and increasing healthcare awareness, positions Egypt as one of the most attractive consumer markets in the region Profile 2 Attractive Industry A highly defensive sector with significant room for continued growth driven by recent regulatory reforms, increasing Dynamics incidence of chronic disease, and a surge in generic uptake 3 Fastest growing & 2 nd largest player in the market with nationwide geographical coverage and access to over 35k retail Strong Market Share pharmacies, hospitals & wholesalers 4 Efficient Business Operational efficiency driven by best in class supply chain processes Model 5 Resilient Multi-site operations with highly diversified supplier/client base, covering over 80% of the market SKUs, mitigating any Supply Chain supply chain disruptions and ensuring business continuity 6 Robust Financial Significant top and bottom line growth on the back of recent regulatory reforms and enhanced operational efficiency Performance 7 New Expansion into higher margin diversified revenue streams to further enhance profitability Revenue Streams 8 Experienced Highly experienced management team that has delivered strong results during challenging times, coupled with strong Management Team corporate governance practices backed by notable institutional shareholders Source: Company Management & IMS Health 10 Strictly Private & Confidential
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