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

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 ” ) 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 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 Investment Port ortfolio • 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

EKH KH OVERVIEW 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 401 401 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 Fertilizers and Petrochemicals Segment Energy and Energy-Related Segment Diversified Segment (19% of Group Profitability in 1Q17) (23% of Group Profitability in 1Q17) (58% of Group Profitability in 1Q17) Building Materials Industries Company (Cement Plant) NatEnergy Effective Ownership Sprea Misr (Gas Distribution Business Holding 38.03% (Chemicals Plant) Company) Effective Ownership Effective Ownership Delta Insurance 100.00% 100.00% (Life and General Insurance Company) Effective Ownership 32.03% AlexFert Egyptian Company for Petroleum Global Infrastructure Fund (Ammonia, Urea Fertilizer and Transport Management Company Ammonium Sulfate Plant) (Shipping Company) Effective Ownership Effective Ownership Effective Ownership 15.00% 30.00% 37.8% Egypt Kuwait Holding | Investor Presentation 7

OPERATIONAL HIG IGHLIGHTS OF F THE 1Q17 17 1Q 2017 Margins Q4 2016 Margins 37 % 35 % 38 % 35 % Attributable Gross Profit Attributable Gross Profit EBITDA Margin EBITDA Margin Margin Margin Revenues (USD mn) Gross Profit (USD mn) Attributable Net Income (USD mn) Attributable EBITDA (USD mn) 38 38 27 105 22 22 103 25 28 80 19 15 4Q 2016 1Q 2016 1Q 2017 4Q 2016 1Q 2016 1Q 2017 4Q 2016 1Q 2016 1Q 2017 4Q 2016 1Q 2016 1Q 2017 Egypt Kuwait Holding | Investor Presentation 8

OUR PORTFOLIO IO Egypt Kuwait Holding | Investor Presentation 9

FERTILIZERS AND PETROCHEMICALS SE SEGMENT Egypt Kuwait Holding | Investor Presentation 10 10

KEY FACTS & FIG FIGURES Products & Production Capacity: • Formaldehyde and form-urea (production capacity of 132tpa) • Urea formaldehyde glues and melamine Activities: Commercial production of formaldehyde resins (production capacity of Subsidiary : Plastichem fertilizers and petrochemicals for domestic 102tpa) 100% owned • and export sale, with more than 35% of Urea, melamine and phenolic molding Target markets: Arab Countries and Africa compounds (production capacity of 3.6tpa) 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 EKH acquired Sprea Misr and its subsidiary Over 85% market share in Egypt Africa, the Middle East, Europe, the US and Plastichem in 2007 Latin America 630 employees EKH Ownership: 100.0% Current shareholders equity of c.USD 63 mn Egypt Kuwait Holding | Investor Presentation 11 11

HIG IGHLIGHTS OF F 1Q17 17 EGP 585 mn total revenues EGP 210 mn & 36% EBITDA Margin EGP 210 mn EBT Up 124% Y-o-Y Up 172% Y-o-Y Up 181% Y-o-Y EGP 163 mn Net Profit Up 186% Y-o-Y Egypt Kuwait Holding | Investor Presentation 12 12

SP SPREA 10 10 YEARS PROGRESION Gross Profit (EGP mn) Sales (EGP mn) 1,124 420 727 667 530 211 430 418 169 401 156 353 302 282 104 102 102 101 94 88 200 007 200 008 200 009 201 010 201 011 201 012 201 013 201 014 201 015 201 016 200 007 200 008 200 009 201 010 201 011 201 012 201 013 201 014 201 015 201 016 EBT (EGP mn) Net Profit (EGP mn) (1) 302 391 126 125 170 107 125 122 65 59 55 74 67 62 41 42 37 45 48 43 200 007 200 008 200 009 201 010 201 011 201 012 201 013 201 014 201 015 201 016 200 007 200 008 200 009 201 010 201 011 201 012 201 013 201 014 201 015 201 016 1) 2015 Sprea tax holiday expiration. Egypt Kuwait Holding | Investor Presentation 13 13

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 • 28,000m2 new plot of land adjacency to Sprea plant to meet future expansion is secured Land 1 • 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 & HPL (high 2 • Formica expansion dedicated in full towards export markets pressure laminated) • HPL & Impregnation new line with total capacity of 720k sheets by 4Q 2017 • Adding 2 lines of Formurea Powder with total capacity of c.10.8 ktpa 3 Formurea • growing Sprea Formurea capacity to c.33.3 ktpa by 2Q 2017 • Building on the success of SNF expansion Sprea considering to add 88ktpa SNF capacity by 2Q2018 SNF Mega Expansion 4 • A new plot of land adjacency to Sprea plant to meet future expansion is secured • Growing Sprea current formaldehyde capacity that run at 90% utilization rate 5 Formaldehyde • Formaldehyde capacity is essential for Sprea backward integration Egypt Kuwait Holding | Investor Presentation 14 14

KEY FACTS & FIG FIGURES Subsidiary: Products & Production Capacity: International Petrochemicals Investments • Granular urea (maximum production Company (IPIC) capacity up to 635,000 tons) • Est 2012 • Activities: Commercial production of Residual ammonia (up to 396,000 • Invests in and acquires promising tons pa) fertilizers for domestic and export sale companies in the fertilizer and • Ammonium sulphate (c.165,000 petrochemical industry tons pa) • Target markets: Egypt and abroad • EKH Ownership: 37.8% with Management Control AlexFert is managed and controlled by 442 employees • Remaining ownership: 34.9% other EK Holding as well as consolidated in Established in July 2003 shareholders of Bawabat Al Kuwait, its financials 15% AbuQuir Fertilizer, and 12.3% held by other shareholders Egypt Kuwait Holding | Investor Presentation 15 15

HIG IGHLIGHTS OF F 1Q17 17 USD 50 mn total revenues USD 20 mn & 41% EBITDA Margin USD 13 mn EBT Up 28% Y-o-Y Up 54% Y-o-Y Up 85% Y-o-Y USD 1.8 mn Att. Net Profit Up 105% 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 Egypt Kuwait Holding | Investor Presentation 16 16