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 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 own 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. Egypt Kuwait Holding | Investor Presentation 2
AGENDA EKH EKH Overview & Rec ecent De Developments Investment Port ortfolio • Fertilizers and Petrochemicals Segment • Energy and Energy-Related Segment • Diversified Segment Fin Financial High ighlights Ap Appendix 1: : Organization & Governance
EKH KH OVERVIEW & RECENT DEVELOPMNTS Egypt Kuwait Holding | Investor Presentation 4
EKH EKH at t a a Gl Glance 19 19 > 4,0 ,000 USD 1.1 .1 bn investments in strategic professionals employed by total assets sectors, ranging from the holding company and its fertilizers and petrochemicals subsidiaries to energy, building materials and insurance USD 414 414 mn > 15 15 % c. USD 256.1 mn total equity book value average ROE in the paid-in capital past 10 years c. USD 889 889 mn cumulative net profit [2005-16] Egypt Kuwait Holding | Investor Presentation 5
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 Secure strategic partnerships with operational expertise leading international value added industry players Long-term investor with opportunistic Create synergies between different Expand industry expertise to exit strategy group companies new markets Egypt Kuwait Holding | Investor Presentation 6
PRI RIMARY PORTFOLIO IN INVESTMENTS Energy and Energy-Related Segment Fertilizers and Petrochemicals Segment Diversified Segment Building Materials Industries Company (Cement Plant) Effective Ownership NatEnergy Sprea Misr 38.03% (Gas Distribution Business Holding (Chemicals Plant) Effective Ownership Company) 100.00% Effective Ownership 100.00% Delta Insurance (Life and General Insurance Company) Effective Ownership AlexFert 32.02% (Ammonia, Urea Fertilizer and Ammonium Sulfate Plant) Effective Ownership 42.6% Egypt Kuwait Holding | Investor Presentation 7
OPERATIONAL HIG IGHLIGHTS OF F THE 3Q/ Q/9M17 17 3Q 2017 Margins 9M 2017 Margins 23 % 26 % 33 % 31 % Attributable Gross Profit Attributable Gross Profit EBITDA EBITDA Revenues (USD mn) Gross Profit (USD mn) Attributable Net Income (USD mn) (1) Attributable EBITDA (USD mn) 271 270 89 69 85 77 61 47 37 87 76 25 21 24 18 12 3Q 2016 3Q 2017 9M 2016 9M 2017 3Q 2016 3Q 2017 9M 2016 9M 2017 3Q 2016 3Q 2017 9M 2016 9M 2017 3Q 2016 3Q 2017 9M 2016 9M 2017 1) 3Q17 includes capital gain of USD18.2mn. Egypt Kuwait Holding | Investor Presentation 8
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 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 of 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 • Acquired additional c.5% in Alexfert to reach c.42% ownership effective 2Q2017. Egypt Kuwait Holding | Investor Presentation 9
OFF SH SHORE NO NORTH SIN SINAI (O (ONS) Asset Overview 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 Egypt Kuwait Holding | Investor Presentation 10 10
OFF SH SHORE NO NORTH SIN SINAI (O (ONS) Offshore North Sinai Rumana Production Facilities Office Camp in Onshore CPF Site Rumana CPF Rumana CPF Egypt Kuwait Holding | Investor Presentation 11 11
OFF SH SHORE NO NORTH SIN SINAI (O (ONS) 3D Seismic 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 Egypt Kuwait Holding | Investor Presentation 12 12
OFF SH SHORE NO NORTH SIN SINAI (O (ONS) Tao 5 – Tao 4 & Kamose - Statement of CF & I/S • Reserves : 113 BCF Statement of Cash Flow (US$ MM) 2017 2018 2019 2020 2021 2022 • CAPEX plan $116.7 Revenues 19.13 59.38 67.12 54.36 45.18 27.01 M (including 3D OPEX (3.00) (6.00) (6.00) (6.00) (6.00) (6.00) Seismic) CAPEX (41.36) (71.28) 0.00 0.00 0.00 0.00 • OPEX plan $0.5 F.X Loss 0.00 0.00 0.00 0.00 0.00 0.00 Million / month Asset Cash Flows (excl collection delays) (25.23) (17.90) 61.12 48.36 39.18 21.01 • Cost gas @ US$ EGPC Recivables (19.13) (59.38) (67.12) (54.36) (45.18) (27.01) 5.3/mmscf (Brent @ $50/bbl) EGPC Collections 8.64 45.15 75.80 58.00 46.31 34.57 • Profit gas @ US$ 5.3/mmscf (Brent @ Net Cash Flows (35.72) (32.12) 69.80 52.00 40.31 28.57 $50/bbl) Egypt Kuwait Holding | Investor Presentation 13 13
KAHRABA Additional 30 MWh Expansion Engine Hall Outside Radiators Roof - MV Engine Duct & Wartsila Engine Hall Area SWGR Stacks Egypt Kuwait Holding | Investor Presentation 14 14
OUR PORTFOLIO IO Egypt Kuwait Holding | Investor Presentation 15 15
FERTILIZERS AND PETROCHEMICALS SE SEGMENT Egypt Kuwait Holding | Investor Presentation 16 16
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) Activities: Commercial production of fertilizers and • Urea, melamine and phenolic molding compounds petrochemicals for domestic and export sale, with more than (production capacity of 3.6tpa) 20% of revenues coming from export sales • Formica (high pressure laminate) (production capacity of 2.7 mn sheets pa) • SNF Sulphonated Naphthalene Formaldehyde (production capacity of 88tpa) Export markets include: 38 countries in Africa, the Middle Over 85% market share in Egypt East, Europe, the US and Latin America 630 employees EKH Ownership: 100.0% Current shareholders equity of c.USD 59 mn Egypt Kuwait Holding | Investor Presentation 17 17
HIG IGHLIGHTS OF F 1H17 17 EGP 1.6 bn total revenues EGP 504 mn & 31% EBITDA Margin EGP 513 mn EBT Up 93% Y-o-Y Up 90% Y-o-Y Up 100% Y-o-Y EGP 398 mn Net Profit Up 101% Y-o-Y Egypt Kuwait Holding | Investor Presentation 18 18
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