Al E St l R b S A EAl Ezz Steel Rebars S.A.E.2007 Financial Results PresentationMay 2008

DisclaimerDisclaimer

Al E S l R b S A E (“E S l” “ESR”) i i hAl Ezz Steel Rebars S.A.E. (“Ezz Steel” or “ESR”) give notice that:

The particulars of this presentation do not constitute any part of an offer or a contract.

The information contained in this presentation may contain certain projections and forward-looking statements that reflect thecompany’s current views with respect to future events and financial performance. These views are based on current assumptionsp y p p pwhich are subject to various risks and which may change over time. No assurance can be given that future events will occur, thatprojections will be achieved, or that the company’s assumptions are correct. Actual results may differ materially from thoseprojected

None of the statements contained in this presentation is to be relied upon as a statement or representation of fact.

All parties must satisfy themselves as to the correctness of each of the statements contained in this presentation.

Ezz Steel do not make or give, and neither it’s subsidiaries nor any of their directors or officers or persons in their employment oradvisors has any authority to make or give, any representation or warranty whatsoever in relation to this presentation.

Thi t ti t b t d i d di t ib t d t itt d t itt d d d i h l i t i fThis presentation may not be stored, copied, distributed, transmitted, retransmitted or reproduced, in whole or in part, in any formor medium without the permission of Ezz Steel.

2

Ezz Steel at a GlanceEzz Steel at a Glance

E I d t i F Fl tThe largest independent steel producerin the Middle East and Africa in termsof sales with a total actual capacity of5.3mn tonnes per annum realised in2007

Ezz Industries Free Float

34.8%65.2%

2007

– 3.1mn tonnes of long products

– 2.2mn tonnes of flat products

Export27%

Ezz Steel is listed on the CASE and theLSE (through a GDR program) and has a ESM(1)

90.7%

g p gmarket capitalisation of EGP15.5bn asat May 25, 2008

50.3%75%

3

Strong Global Steel MarketStrong Global Steel Market

Globally, total world crude steel output has witnessed a period of unprecedented growth, reaching 1.34 billion metric tons

in 2007

This output represents 7.5 per cent increase from 2006 and amounts to the highest level of crude steel output in history

Such growth has been largely fuelled by the continued strong economic growth in emerging economies.

2007 represents the fifth consecutive year of annual growth of over 7 per cent in total global output.

Global Crude Steel Production World Crude Steel Production

’00-’07 CAGR: 6.8%

848 850 904 9701069

11461250

1344

500

1000

1500

tpa

Production

0

500

2000 2001 2002 2003 2004 2005 2006 2007

mn

4

Overview of Domestic Steel MarketOverview of Domestic Steel Market

Local Consumption (‘000 Tonnes) Long Products 2007 Long Product Market Share BreakdownLocal Consumption (‘000 Tonnes) – Long Products

’04-’07 CAGR: 15.2%

2007 Long Product Market Share Breakdown

l C i (‘000 T ) Fl P d

Source: Company estimates.

2007 Fl t P d t M k t Sh B kdLocal Consumption (‘000 Tonnes) – Flat Products

’04-’07 CAGR: 14.4%

2007 Flat Product Market Share Breakdown

5Source: Company estimates.

Key 2007 Highlights

Revenue

Key 2007 Highlights

Production(1)

4,000

6,000

('000

)

12,000

16,000

20,000

lions

3,9194,833

0

2,000

FY 2006 FY 2007

Tons

(

11,64316,159

0

4,000

8,000

FY 2006 FY 2007

EGP

mil

EBITDA Net Income

1,122

5.85 6.26

4

6

800

1,200

ions

3 582 3,9372,000

3,000

4,000

mill

ions

995

-

2

0

400

FY2006 FY 2007

EGP

mill

NI EPS

3,582 3,937

0

1,000

,

FY 2006 FY 2007

EGP

m

6

Note: In February 2006, Ezz Steel acquired 4.0 million shares of EZDK, bringing Ezz Steel's holding in EZDK to 50.3% of its share capital; From June through October 2006, Ezz Steel acquired 35% of EFS, increasing Ezz Steel's interest in EFS to 54.2%. Consequently, Ezz Steel 2006 financials are consolidated with 11 months EZDK and 3 months EFS (1) Adjusted to reflect Consolidation of 11 months EZDK and 3 months EFS

2007 Sales2007 Sales

Consolidated SalesESR/ESM EZDK EFS Total

EGP Mn

Long 4,536 5,865 10,401

Flat 2,702 2,916 5,618

Others 1 129 10 140

• Long steel products accounted for 64% of sales

Total 4,537 8,695 2,927 16,159

• Flat steel products represented 35% of sales

St d l S lStandalone SalesESR/ESM EZDK EFS

EGP Mn

Total 4,537 8,826 2,932

Cost BreakdownCost Breakdown

FY 2007ESR/ESM EZDK EFS

Ezz Steel

EGP MillionESR/ESM EZDK EFS Consolidated

Sales 4,537 8,826 2,932 16,159

COGS 4 215 5 710 2 721 12 511

100%

COGS 4,215 5,710 2,721 12,511

COGS/Sales 93% 65% 93% 77%

80%

100%

Depreciation & Overheads

40%

60%Labour

Energy

Raw Materials

0%

20%

0%

ESR/ESM EZDK EFS Ezz Steel Consolidated

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Divisional Review: EZDKDivisional Review: EZDK

EZDK (Alexandria)Sales: 2007 2006 % change

Value: EGP 8.8 bn EGP 8.1 bn 8.6%Volume:

Long: 1 824 thousand ton 1 785 thousand ton 2 2%Long: Flat:

1,824 thousand ton 770 thousand ton

1,785 thousand ton 962 thousand ton

2.2%-20%

Exports as % of Sales:Long:Flat:

10%47%

27%54%

EBITDA: EGP 3.5bn EGP 3.4bn +5%Production:

Long Products: 1,759 thousand ton 1,721 thousand ton 2%Flat Products: 775 thousand ton 984 thousand ton -21%

Billets: 1,869 thousand ton 1,818 thousand ton 3%No. of Employees: 3,500

Egypt’s largest steel producer

Capable of long and flat production to international standards, including thin gauge flat steel

Privately operated port that can dock ships of up to 150,000 dwt - few other producers have this benefit

90 per cent DRI for local meltshop use is supplied by the plant’s MIDREX direct reduction units

Divisional Review: ESR / ESMDivisional Review: ESR / ESM

ESR/ESM ( Sadat City & 10th of Ramadan)ESR/ESM ( Sadat City & 10 of Ramadan)Sales: 2007 2006 % change

Value: EGP 4.5 bn EGP 3.5 bn 29%

Volume: 1,395 thousand ton 1,281 thousand ton 19%

Exports as % of Sales: 8% 18%

EBITDA: EGP 314 mn EGP 312mn 1%

Production:Long Products: 1,367 thousand ton 1,243 thousand ton 10%

Billets: 788 thousand ton 763 thousand ton 3%

No. of Employees: 1,700

Mini-mill in the strategic location of Sadat City, commissioned in 1995

Capacity to produce 1.4 million tonnes of long products per year

Also operate a plant at the 10th Ramadan, which comprises a rolling mill and wire mesh factory

Divisional Review: EFSDivisional Review: EFS

EFS (Suez)Sales: 2007 2006 % change

Value: EGP 2.9 bn EGP 2.3 bn 26%

Volume: 892 thousand ton 781 thousand ton 14%

Exports as % of Sales: 71% 60%

EBITDA: EGP 291 mn EGP 343mn -17%

Production:

Flat Products: 932 thousand ton 784 thousand ton 19%

No of Employees: 1 000No. of Employees: 1,000

Ownership in EFS increased to 75% in 2007

One of the few producers in the world to operate thin slab casting technology, to produce thin gauges of steel sheets with a minimum thickness of 1mm

Expansion Plans for EgyptExpansion Plans for Egypt

Construction of 2 DRI Plants at Ezz Steel• Ezz Steel will construct 2 new DRI plants to be located at the Suez facility

• Plants will process an additional 3.2mn tonnes of DRI

• Production will be internally consumedVertical Integration

• Improving efficiency by backward integration (thanks to investments along the value chain)

• Production to commence 24 months from project start in Q3 2008

Integration

Construction of an Additional Steel Melting Capacity

Horizontal

Construction of an Additional Steel Melting CapacityConstruction of new melt shops together with a thin slab caster, a tunnel furnace and a billet caster

Only a marginal investment is required in order to almost double EFS’ production capacity

Additional billet production to be internally consumed to eliminate dependence on market sourcedHorizontal Expansion

Additional billet production to be internally consumed to eliminate dependence on market sourced billet

Double flat steel production at EFS

Production to commence 24 months from project start in Q3 2008

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Regional Expansion PlanRegional Expansion Plan

Providing Ezz Steel with an excellent platform to serve the booming Algerian construction industry

MoU signed with Algerian Government on 15th October 2007

I t t d i i ill l i i DRI l t lt h d lli illIntegrated mini-mill complex comprising DRI plant, meltshop and a rolling mill

Capacity of 1.5mn tpa of steel rebars to be increased to 3mn tpa in second phase

2 million m2 have been secured in the coastal province of Jijel for the plant

Algerian Operations

Algerian complex will be wholly owned by Ezz Steel.

CNI (National Investment Council) Approval 10th May 2008

Q3 2010: First Heat and Start of

Production

Q3 2008: Construction of Plant

CommencesIndicative

Dec. 09Dec. 07 Dec. 08 Mar. 09 Jun. 09Jun. 08 Sept. 09Sept. 08Mar. 08 Mar. 10 Jun. 10

Timeline

13

Expansions SummaryExpansions Summary

Regional ExpansionsDomestic ExpansionsExisting Capacity Total Capacity

11.0

Regional ExpansionsDomestic ExpansionsExisting Capacity Total Capacity

1

3.2 37.0

9.0

5.3

9.6 9.33.21

3.0

5.0

mn

tpa

5.33.2

1 0

1.0

Existing Existing Additional New Ezz Steel Ezz Steel DRI Finished(1)-1.0 Existing DRI

Existing Capacity

Additional DRI

New Meltshop

Ezz Steel Algeria DRI

Ezz Steel Algeria

DRI Finished

Key: DRI Finished Product (Long & Flat)

14

y ( g )

Note: (1) New meltshop will also provide additional billets to be internally consumed

OutlookOutlook

Expect strong demand for both long and flat products to continue 

Gl b l t l i t d t i t hi t i ll hi h l l d ti i li k d t l b l k tGlobal steel prices expected to remain at historically high levels, domestic prices linked to global market

Production levels expected to be maintained at current levelsp

Construction of the DRI plants, meltshop and Algerian complex scheduled to commence in 3Q 2008

Q&A