INVESTOR PRESENTATION June 2019
D ISCLAIMER I MPORTANT N OTICE T HIS DOCUMENT DOES NOT CONSTITUTE , AND IS NOT DEEMED OR CONSIDERED AN OFFER , SOLICITATION OR AN INVITATION TO SUBSCRIBE FOR , OR OTHERWISE ACQUIRE , ANY SHARES OR OTHER SECURITIES IN A RABIA I NVESTMENTS H OLDINGS ( “ AIH ” ) BY ANY PERSON IN ANY JURISDICTION . T HE DISTRIBUTION OF THE DOCUMENT IN CERTAIN JURISDICTIONS MAY BE RESTRICTED . I T IS THE RESPONSIBILITY OF ANY RECIPIENT TO SATISFY ITSELF AS TO THAT RECIPIENT ' S FULL COMPLIANCE WITH THE APPLICABLE LAWS AND REGULATIONS OF ANY RELEVANT JURISDICTION , INCLUDING OBTAINING ANY REQUISITE GOVERNMENTAL OR OTHER CONSENT AND OBSERVING ANY OTHER FORMALITY PRESCRIBED IN SUCH JURISDICTION . AIH TAKES NO RESPONSIBILITY WHATSOEVER FOR INFORMING RECIPIENTS OF ANY APPLICABLE LAWS OR REGULATIONS . R ECIPIENTS OF THIS DOCUMENT SHOULD NOT TREAT THE CONTENTS OF THIS DOCUMENT AS INVESTMENT , FINANCIAL , COMMERCIAL , TAX , OR LEGAL ADVICE . I NFORMATION PROVIDED IN THIS DOCUMENT IS OF A GENERAL NATURE AND HAS BEEN PREPARED WITHOUT TAKING INTO ACCOUNT INDIVIDUAL RECIPIENT ' S CIRCUMSTANCES . T HE RECIPIENT ACKNOWLEDGES THAT THE INFORMATION PROVIDED HEREIN IS SUBJECT TO COMPILATION ESTIMATES , CLERICAL ERROR AND OMISSIONS , AND DOES NOT PURPORT TO BE ALL INCLUSIVE . N O REPRESENTATION OR WARRANTY HAS BEEN BY AIH AS TO THE ACCURACY , RELIABILITY OR COMPLETENESS OF ANY OF THE INFORMATION SUPPLIED NOR SHALL THE FORMER BE UNDER ANY OBLIGATION TO PROVIDE FURTHER I NFORMATION , UPDATE INFORMATION OR CORRECT ANY INACCURACIES . T HE STATEMENTS CONTAINED HEREIN THAT ARE NOT HISTORICAL FACTS ARE FORWARD - LOOKING STATEMENTS . T HESE FORWARD - LOOKING STATEMENTS ARE BASED ON CURRENT EXPECTATIONS , ESTIMATES AND PROJECTIONS ABOUT THE INDUSTRY AND MARKET . W ORDS SUCH AS " EXPECTS “ , " ANTICIPATES ", " SHOULD ", " INTENDS ", " PLANS ” , “ BELIEVES ", “ SEEKS ” , " ESTIMATES ” , " PROJECTS ” , VARIATIONS OF SUCH WORDS , NEGATIVES THEREOF AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY SUCH FORWARD - LOOKING STATEMENTS . T HESE FORWARD - LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS , UNCERTAINTIES AND OTHER FACTORS , WHICH MAY CAUSE ACTUAL RESULTS , PERFORMANCE OR ACHIEVEMENTS , OR INDUSTRY RESULTS , TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR IMPLIED BY THESE FORWARD - LOOKING STATEMENTS . G IVEN THE UNCERTAINTIES OF FORWARD - LOOKING STATEMENTS , IT CANNOT BE ASSURED THAT PROJECTED RESULTS OR EVENTS WILL BE ACHIEVED AND RECIPIENTS OF THIS D OCUMENT ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE STATEMENTS . 2 Arabia Investments Holding - AIH Investor Presentation June 2019
Part I Executive Summary 4 Part II Non Banking Finance Business 10 Part III Construction and Building Materials Business 19 Part IV Automotive Business 26 TABLE OF CONTENTS Appendix A Investing in Egypt 28 Appendix B AIH Team 30
PART I EXECUTIVE SUMMARY
AIH | Advancing Lives AIH is a turnaround story that has come a long way Group Financial Performance in Perspective | EGP mn Jan Large Dividend Payout Shareholders lobby to pay out capital of 2014 1,600 200 1,474 EGP 107m 1,418 1,395 1,392 150 1,328 1,400 Land Split and Metwally Exit Feb 100 Metwally exits company, retains 2014 1,200 73 ownership of land representing 18% of 61 62 59 58 50 40 company shares 1,000 - -7 820 800 (50) (100) 600 Entry of Mar 433 (150) BPE acquires 5% of AIH with 340 2015 400 282 -180 management contract (200) 200 Oct (250) Exit of -266 2016 BPE terminates management contract - (300) and exits investment 2010 2011 2012 2013 2014 2015 2016 2017 2018 Nov Devaluation of Currency 2016 Group Revenue Consolidated Net Profit/(Loss) Devaluation of EGP results in FX loss of EGP (487)mn to auto business , EGP (387)mn unrecognized AIH is an investments holding company with PE culture Jul New Leadership Our mission is based first and foremost on contributing positively to the community at large New ownership and management, 2017 recognition of prior losses AIH is an incubator for small- to mid-size companies within our current growth platforms Nov Peugeot Contract Loss with a long-term goal of strategic exit of the platforms 2017 PSA exits a 41-year long partnership with CDCM 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 Above market returns on a risk-adjusted basis ii. Return to Profitability 2018 iii. Companies with potential for geographic expansion AIH post profits for 5 consecutive iv. Creation of long-term value for shareholders quarters, EGP 73mn in FY 2018 5 Arabia Investments Holding - AIH Investor Presentation June 2019
AIH | Advancing Lives Overview of AIH Businesses Non-Banking Finance Business Automotive Business Construction and Building Materials Business UE Finance is a Rawaj is a consumer Tawriq was recently Kahromika is a long Toblat is a premium 41 years of history as customer-centric finance business established to capture heritage in domestic producer of concrete European auto brand leasing operation with specialized in auto growth in the booming and regional bricks, hardscape affiliate and 3S provider SME focus and strong finance securitization market, electromechanical paving solutions, presence in Upper growing at a CAGR of contracting firm landscaping tiles and Opportunistic business Egypt Strongly positioned in 55% since 2016 concrete-based tiles EGP 831m in project high-margin segments Fully restructured and backlog Portfolio of EGP 560m of luxury and used cars Successfully managed Peak RoAE of 54% recuperating from its first securitization in achieved in Q1 2019 historical losses Roster of 45+ Power Growth in new Pent-up auto demand Q4 2018 and expecting Generation plants bookings of 85% in and consumer finance to close an additional 3 Benefits from a Recently aligned with equivalent to 60% of 2018 and 160% in Q1 trends lend to strong in the short-term construction boom and new brands to better domestic consumption 2019 as compared to prospects for 2019 and upgrades in building utilize its service one year earlier beyond Seeks to complement standards operation and Restructuring and our NBFI platform expertise positioned for regional Growing returns, Current portfolio is EGP Expanding into mobile expansion and recording 30% return 217mn with EGP brick lines to serve domestic spending on on average equity in 247.5mn securitized North Coast and the maintenance of PG Q1 2019 months ago New Capital plants 6 Arabia Investments Holding - AIH Investor Presentation June 2019
AIH | Advancing Lives New Management Team 1 5 Strong track record in business Diverse base of knowledge in turnaround investment and value creation 2 6 Success in changing business Integrity and business ethic culture Management Team 3 7 Demonstrated expertise in brand- Understanding of how to building and marketing maximize operating efficiency 4 8 Strategy development capability Long-term view towards across various industries partnership and team-building A transformative culture that aims to attracts top talent … Perseverant AIH Entrepreneurial Collaborative Team Values Ethical Ambitious Customer-centric 7 Arabia Investments Holding - AIH Investor Presentation June 2019
AIH | Advancing Lives Headline turnaround strategies for the Group ▪ Policies, procedures and Board governance Institutionalization ▪ New centralized risk, treasury, HR and internal audit functions at Group level ▪ Change in organization structure Restructuring ▪ 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 Action Items Capitalization ▪ Increased stakes in more attractive business segments and seeking new opportunities to complement business segments Taking ▪ Driving expansions in the form of new business lines and capacity expansions forward ▪ Solutions for sources of funding such as capital increase on Group and subsidiary levels, securitization for Driving business development NBFIs ▪ Opening up new markets, such as the re-opening of regional offices for the Construction business ▪ Finding opportunities to drive cross-selling and synergies in the Group in Board composition by business segment Cross-selling and synergies ▪ Developing areas for collaboration across different segments and cost efficiency by centralization of key functions 8 Arabia Investments Holding - AIH Investor Presentation June 2019
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