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Investor Presentation 3Q/9M 2017
RESILIENCE
Investments that Stand the Test of Time
Egypt Kuwait Holding | Investor Presentation 2
Cautioning and Forward Looking 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.
AGENDA
EKH Overview & Recent Developments
Investment Portfolio• Fertilizers and Petrochemicals Segment• Energy and Energy-Related Segment • Diversified Segment
Financial Highlights
Appendix 1: Organization & Governance
Egypt Kuwait Holding | Investor Presentation 4
EKH OVERVIEW& RECENT DEVELOPMNTS
Egypt Kuwait Holding | Investor Presentation 5
EKH at a Glance
19 investments in strategic
sectors, ranging from
fertilizers and petrochemicals
to energy, building materials
and insurance
> 4,000professionals employed by
the holding company and its
subsidiaries
USD 1.1 bntotal assets
USD 414 mntotal equity book value
> 15 %average ROE in the
past 10 years
c. USD 256.1 mnpaid-in capital
c. USD 889 mncumulative net profit [2005-16]
Egypt Kuwait Holding | Investor Presentation 6
EKH AND ITS COMPANIES BENEFIT FROM A CLEAR STRATEGY AND INVESTMENT PHILOSOPHY
Hands-on investor and operator Develop greenfield operations to leverage
operational expertise
Secure strategic partnerships with
leading international value added
industry players
Long-term investor with opportunistic
exit strategy
Create synergies between different
group companies
Expand industry expertise to
new markets
Egypt Kuwait Holding | Investor Presentation 7
PRIMARY PORTFOLIO INVESTMENTS
AlexFert
(Ammonia, Urea Fertilizer and
Ammonium Sulfate Plant)
Sprea Misr
(Chemicals Plant)Effective Ownership
100.00%
Effective Ownership
42.6%
NatEnergy
(Gas Distribution Business Holding
Company)
Effective Ownership
100.00%
Building Materials Industries
Company
(Cement Plant)Effective Ownership
38.03%
Delta Insurance
(Life and General Insurance
Company)Effective Ownership
32.02%
Fertilizers and Petrochemicals Segment Energy and Energy-Related Segment Diversified Segment
Egypt Kuwait Holding | Investor Presentation 8
OPERATIONAL HIGHLIGHTS OF THE 3Q/9M17
3Q 2017 Margins
Gross Profit Attributable
EBITDA
23% 31%
9M 2017 Margins
Gross Profit
26% 33%
Revenues (USD mn)
7687
271 270
3Q 2016 3Q 2017 9M 2016 9M 2017
Gross Profit (USD mn) Attributable Net Income (USD mn) (1) Attributable EBITDA (USD mn)
Attributable
EBITDA
24 25
8985
3Q 2016 3Q 2017 9M 2016 9M 2017
12
37
47
77
3Q 2016 3Q 2017 9M 2016 9M 2017
2118
69
61
3Q 2016 3Q 2017 9M 2016 9M 2017
1) 3Q17 includes capital gain of USD18.2mn.
Egypt Kuwait Holding | Investor Presentation 9
USD200 MILLION RECENT DEVELOPMENTS SHOW THE STRENGTH OF 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 additional c.5% in Alexfert to reach c.42% ownership effective 2Q2017.
• 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
Egypt Kuwait Holding | Investor Presentation 10
OFF SHORE NORTH SINAI (ONS)
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
Asset Overview
Egypt Kuwait Holding | Investor Presentation 11
OFF SHORE NORTH SINAI (ONS)
Offshore North Sinai Rumana Production Facilities
Onshore CPF Site Rumana CPFOffice Camp in
Rumana CPF
Egypt Kuwait Holding | Investor Presentation 12
OFF SHORE NORTH SINAI (ONS)
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
3D Seismic
Egypt Kuwait Holding | Investor Presentation 13
OFF SHORE NORTH SINAI (ONS)
Tao 5 – Tao 4 & Kamose - Statement of CF & I/S
• Reserves : 113 BCF
• CAPEX plan $116.7
M (including 3D
Seismic)
• OPEX plan $0.5
Million / month
• Cost gas @ US$
5.3/mmscf (Brent @
$50/bbl)
• Profit gas @ US$
5.3/mmscf (Brent @
$50/bbl)
Statement of Cash Flow (US$ MM) 2017 2018 2019 2020 2021 2022
Revenues 19.13 59.38 67.12 54.36 45.18 27.01
OPEX (3.00) (6.00) (6.00) (6.00) (6.00) (6.00)
CAPEX (41.36) (71.28) 0.00 0.00 0.00 0.00
F.X Loss 0.00 0.00 0.00 0.00 0.00 0.00
Asset Cash Flows (excl collection delays) (25.23) (17.90) 61.12 48.36 39.18 21.01
EGPC Recivables (19.13) (59.38) (67.12) (54.36) (45.18) (27.01)
EGPC Collections 8.64 45.15 75.80 58.00 46.31 34.57
Net Cash Flows (35.72) (32.12) 69.80 52.00 40.31 28.57
Egypt Kuwait Holding | Investor Presentation 14
Additional 30 MWh Expansion
Wartsila Engine Hall Radiators Roof - MV
SWGR
Engine Duct &
Stacks
Engine Hall Outside
Area
KAHRABA
Egypt Kuwait Holding | Investor Presentation 15
OUR PORTFOLIO
Egypt Kuwait Holding | Investor Presentation 16
FERTILIZERS AND PETROCHEMICALS SEGMENT
Egypt Kuwait Holding | Investor Presentation 17
Products & Production Capacity:
• Formaldehyde and form-urea (production capacity of 132tpa)
• Urea formaldehyde glues and melamine formaldehyde
resins (production capacity of 102tpa)
• Urea, melamine and phenolic molding compounds
(production capacity of 3.6tpa)
• Formica (high pressure laminate) (production capacity of 2.7 mn
sheets pa)
• SNF Sulphonated Naphthalene Formaldehyde (production capacity of
88tpa)
Activities: Commercial production of fertilizers and
petrochemicals for domestic and export sale, with more than
20% of revenues coming from export sales
Over 85% market share in EgyptExport markets include: 38 countries in Africa, the Middle
East, Europe, the US and Latin America
630 employees
EKH Ownership: 100.0%
Current shareholders equity of c.USD 59 mn
KEY FACTS & FIGURES
Egypt Kuwait Holding | Investor Presentation 18
HIGHLIGHTS OF 1H17
EGP 1.6bn total revenues
Up 93% Y-o-Y
EGP 513mn EBT
Up 100% Y-o-Y
EGP 504mn & 31% EBITDA Margin
Up 90% Y-o-Y
EGP 398mn Net Profit
Up 101% Y-o-Y
Egypt Kuwait Holding | Investor Presentation 19
SPREA 5 YEARS PROGRESION
Sales (EGP mn) Gross Profit (EGP mn)
Net Profit (EGP mn) (1)
430530
667727
1,124
2012 2013 2014 2015 2016
101156 169
211
420
2012 2013 2014 2015 2016
65
107 126 125
302
2012 2013 2014 2015 2016
EBT (EGP mn)
74 122 125
170
391
2012 2013 2014 2015 2016
1) 2015 Sprea tax holiday expiration.
Egypt Kuwait Holding | Investor Presentation 20
SPREA EXPANSIONS
Sprea witnessing an aggressive expansion plan to meet the growing demand for its products locally and in international markets
targeting to grow its export footprint that represent c.20% in FY16 to 60% by 2019
Land • 54,400m2 new plot of lands secured to meet future expansion1
Formica & HPL (high
pressure laminated)
• 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 1Q 2018
• HPL & Impregnation new line with total capacity of 720k sheets by 4Q 2017
2
Formaldehyde • Rehabilitation of formaldehyde reactor 4 adding capacity of c.12.ktpa 3
SNF Mega Expansion • Building on the success of SNF expansion Sprea considering to add 88ktpa SNF capacity4
Egypt Kuwait Holding | Investor Presentation 21
KEY FACTS & FIGURES
Products & Production Capacity: • Granular urea (maximum production
capacity up to 635,000 tons)• Residual ammonia (up to 396,000
tons pa)• Ammonium sulphate (c.165,000
tons pa)
Subsidiary:
International Petrochemicals Investments
Company (IPIC)
• Est 2012
• Invests in and acquires promising
companies in the fertilizer and
petrochemical industry
• Target markets: Egypt and abroad
Activities: Commercial production of
fertilizers for domestic and export sale
• EKH Ownership: 42.6% with
Management Control
• Remaining ownership: 30.1% other
shareholders of Bawabat Al Kuwait,
15% AbuQuir Fertilizer, and 12.3%
held by other shareholders
AlexFert is managed and controlled by
EK Holding as well as consolidated in
its financials
442 employees
Established in July 2003
Egypt Kuwait Holding | Investor Presentation 22
HIGHLIGHTS OF 9M17
USD 131mn total revenues
Up 40% Y-o-Y
USD 31mn EBT
Up 240% Y-o-Y
USD 40mn & 31% EBITDA Margin
Up 83% Y-o-Y
USD8.7mn Att. Net Profit
Up 253% Y-o-Y
• Urea short term momentum remains positive on
relatively limited supply from Chinese
producers and strong demand
• As of October 02,2017 MoA hiked the Urea
local price from USD170 to EGP181/ton
Egypt Kuwait Holding | Investor Presentation 23
ENERGY AND ENERGY-RELATED SEGMENT
Egypt Kuwait Holding | Investor Presentation 24
KEY FACTS & FIGURES
Established in 2010
Activities:
• Building and operating gas distribution
networks
• Transporting gas to large power stations
• Independent power producer with 1 of
the 2 available licenses to sell electricity
directly to 3rd parties
1400 employees
83.97% 77.99% 83.97% 91.99%
Over 16% market share in Egypt
(1)
EKH Ownership: 100%
• c.1.2 million Household Clients
• c.6k Commercial Customers
• c.625 Industrial Customers
Egypt Kuwait Holding | Investor Presentation 25
NATENERGY PROGRESION
EGP 1
EGP 14
EGP 18
EGP 16
FY2014 FY2015 FY2016 FY2017 E
EGP 13EGP 14
EGP 24EGP 25
FY2014 FY2015 FY2016 FY2017 E
EGP 11 EGP 11
EGP 13
EGP 19
FY2014 FY2015 FY2016 FY2017 E
EGP 49
EGP
100
EGP
147
EGP
254
FY2014 FY2015 FY2016 FY2017 E
Subsidiary FY 2014 FY 2015 FY 2016 FY 2017 E
NatGas EGP49 mn EGP100 mn EGP147 mn EGP254 mn
Fayum Gas EGP11 mn EGP11 mn EGP13 mn EGP19 mn
Nubaria EGP13 mn EGP17 mn EGP24 mn EGP18 mn
Kahraba EGP1 mn EGP14 mn EGP25 mn EGP16 mn
NatEnergy EGP74 mn EGP142 mn EGP209 mn EGP307 mn
2014 – 2017E Net Income (EGP Mn)
Egypt Kuwait Holding | Investor Presentation 26
NATENERGY CONCESSIONS
• Phase I Fayum City
• Phase II Fayum City
• Extension Phase II Fayum City
• Extension Phase II Fayum City
*
Egypt Kuwait Holding | Investor Presentation 27
NATENERGY HIGHLIGHTS OF 9M17
EGP 667mn total revenues
Up 28% Y-o-Y EGP362mn EBT
Up 53% Y-o-Y
EGP242mn & 36%EBITDA Margin
Up 27% Y-o-Y
EGP 1.37bn total Cash
Up 36% Y-o-YEGP285mn Net Profit
Up 50% Y-o-Y
EGP239mn Att. Net Profit
Up 54% Y-o-Y
Egypt Kuwait Holding | Investor Presentation 28
EGP 426mn total revenues
Up 17%Y-o-YEGP 280mn EBT
Up 56% Y-o-Y
EGP 172mn & 38% EBITDA Margin
Up 35% Y-o-Y
• As of October 18,2017 EGAS hiked the
household connection fees from EGP2,700 to
EGP3,500/client
• Connected 47,021 households in 9M17 and 239
industrial and commercial users.
EGP 1.13bn total Cash
Up 39% Y-o-YEGP 223mn Net Profit
Up 58% Y-o-Y
EGP 187mn Att. Net Profit
Up 64% Y-o-Y
NATENERGY KEY DRIVERS - NATGAS HIGHLIGHTS OF 9M17
Egypt Kuwait Holding | Investor Presentation 29
DIVERSIFIED SEGMENT
Egypt Kuwait Holding | Investor Presentation 30
KEY FACTS & FIGURES
Located in Assiut
Activities: Produces various types of gray
cement, clinker and related products such as
cement bricks and ready-mix cement that
meet Egyptian and international standards
EKH ownership: c.38%
Other partners: South Valley (46%), Hayel
Said (10%), and others (6%)
Paid up capital of c.EGP 614 mnTotal production capacity of c.1.8 mn tons
per annum
The company is currently using mazot as the
main source of power and is studying
conversion to a dual system, mainly
utilizing coal as well as waste
Reached maximum production capacity at
end-2013
Greenfield cement producer founded in
2007
Egypt Kuwait Holding | Investor Presentation 31
KEY FACTS & FIGURES
Established in 1981 and
acquired by EKH in 1999+19 branches
Activities: Provides financial protection
through innovative insurance products and
services
EKH ownership: c.32% Paid up capital of c.EGP 22.5mnHolds c.5% share of the Egyptian insurance
market
+300 employees Publicly listed
Three Service Categories:
• Corporate Solutions Plans
• Individual Protection Plans
• Group Life Insurance Plans
Egypt Kuwait Holding | Investor Presentation 32
Al-Shorouk for Melamine
and Resins (Al-Sharif):
• Successful and well-established tableware manufacturer
• Founded in 1979 and acquired by EKH in 2007
• Benefitting from synergies with Sprea Misr (see slide 16)
• Strong consumer trust built on commitment to health and safety
• 2 production lines with a combined 78 presses and overall production capacity of 3,000 tons p.a.
• +500 employees
• ISO 9001:2008 and ISO 14001:2004 certified
• Supplies all of the hypermarkets in Cairo and distributes products across Alexandria and cities in Upper Egypt and the Delta
• Export activities focus primarily on the Middle East and Africa
Gas Chill
• Established by EKH in 2006
• Specializes in district cooling systems for industrial and commercial clients
• c.30 commercial clients in Egypt and a view to expanding regionally in the future
• Primarily caters to large facilities such as malls, factories and hospitals through build-own-operate (BOO), build-operate-transfer (BOT), or engineering, procurement and construction (EPC) agreements
• As a pioneer in cooling technology in Egypt, Gas Chill is also looking into alternative forms of energy to power its state-of-the-art cooling systems, including harnessing readily available solar and wind energy in Egypt
Bawabet al Kuwait Holding
Company:
• Founded in 2004 by EKH
• Is poised to become a major investor in the fertilizers and petrochemicals sector
• Holds ownership stakes in AlexFert, and other petrochemical companies in the Gulf Cooperation Council (GCC)
• EKH currently holds a 49.7% stake
Globe Telecom:
• Greenfield investment established in 2001 by EKH
• Focuses on providing technology systems geared towards facilitating business operations.
• Conducts in-house software research and development, and has partnerships with leading international firms such as Intergraph, Psion and TomTom
• GT is the sole and exclusive partner of Intergraph in Egypt, has agreements with CB&I and is the trusted partner for Egypt’s ports, as well as the main supplier for Enppi’s CCTV and Engineering Software (PPM)
KEY FACTS & FIGURES
Egypt Kuwait Holding | Investor Presentation 33
FINANCIAL HIGHLIGHTS
Egypt Kuwait Holding | Investor Presentation 34
EKH’S FINANCIALS ARE SOLID
Total Assets (USD Mn) (1) Total Equity Book Value (USD Mn) (1)
Total Attributable Net Profit (USD Mn) (1)
438 518 528
974
1,679 1,6731,858 1,750
2,2882,076
1,603 1,528
1,012
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
175219
275
531 569651
869764 740 724
562 522
401
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
1) FY 2014 restated financials to account for asset impairments related to the company’s oil operations.
Return on Average Equity (ROAE) (1)
29
55 56
104120
131145 150
83
42
-95
36
63
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
18%
28%
23%
26%
22% 22%19% 18%
11%
6%
-17%
7%
15%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Average 15.1%
Egypt Kuwait Holding | Investor Presentation 35
EBITDA & DEBT OVERVIEW
(In ‘000 USD) 1H 2017
Long-term interest-bearing debt 51,998
Short-term interest-bearing debt 87,966
Gross interest-bearing debt 139,964
Cash & quasi cash (434,383)
Consolidated Net debt (cash) (294,419)
Attributable Net debt (cash) (196,684)
Net Debt (Cash)
Segmented EBITDA (In ‘000 USD) 3Q 2017 9M 2017
Fertilizers and Petrochemicals 12,576 43,426
Energy & Energy Related 4,191 11,534
Diversified 1,398 5,583
Attributable EBITDA 18,165 60,543
Attributable EBITDA
Egypt Kuwait Holding | Investor Presentation 36
SUMMARY CONSOLIDATED INCOME STATEMENT
USD 2Q 2017 2Q 2016 1H 2017 1H 2016
ENERGY & ENERGY RELATED
Revenues 12 009 015 19 928 151 25 167 116 42 233 554
% Contribution 15% 22% 14% 22%
COGS 7 363 489 12 404 868 16 307 839 26 559 555
Gross Profit 4 645 526 7 523 283 8 859 277 15 673 999
% Margin 39% 38% 35% 37%
FERTILIZERS & PETROCHEMICALS
Revenues 65 357 011 62 846 993 147 937 173 134 476 755
% Contribution 83% 70% 81% 69%
COGS 50 965 645 49 651 030 106 379 640 102 555 188
Gross Profit 14 391 365 13 195 963 41 557 533 31 921 567
% Margin 22% 21% 28% 24%
DIVERSIFIED
Revenues 1 721 563 6 773 421 9 395 334 17 506 008
% Contribution 2% 8% 5% 9%
COGS 378 501 (13 195) 1 045 794 (245 091)
Gross Profit 1 343 062 6 786 616 8 349 540 17 751 099
% Margin 78% 100% 89% 101%
TOTAL
Revenues 79 087 589 89 548 565 182 499 623 194 216 317
COGS 58 707 636 62 042 703 123 733 273 128 869 652
Gross Profit 20 379 953 27 505 862 58 766 350 65 346 665
% Margin 26% 31% 32% 34%
Operating Income 16 972 882 19 545 914 47 190 969 48 642 826
% Margin 21% 22% 26% 25%
Net Income 21 038 208 15 274 160 48 909 700 42 277 072
Non-Controlling Interest 4 166 020 2 099 550 9 654 299 7 270 832
Attributable Net Income 16 872 188 13 174 610 39 255 401 35 006 240
Egypt Kuwait Holding | Investor Presentation 37
CONSOLIDATED BALANCE SHEET
USD 1H 2017 FY 2016
Fixed Assets (Net) & Projects under Construction 231 389 181 233 880 932
Investments in Associates 63 809 788 63 782 363
Investments Available for Sale 112 658 920 116 953 348
Financial investments held-to-maturity 113 158 397 113 528 198
Other long-term Assets 70 129 984 69 493 955
Total Long-Term Assets 591 146 268 597 638 796
Cash 234 484 552 242 186 165
Investments in Treasury Bills & Bonds 23 065 457 18 613 529
Investments Held for Trading 12 845 657 15 159 821
Total Receivables & Other Debtors 78 304 365 44 441 573
Assets Held for Sale 38 368 005 38 368 005
Inventory & Work in Progress 57 261 784 54 103 292
Due from EGPC 2 255 141 1 416 404
Total Assets 1 037 731 229 1 011 927 585
USD 1H 2017 FY 2016
Bank Overdraft and STL 88 929 991 81 055 075
Due to Suppliers and Sub-Contractors 15 608 627 14 250 675
Due to EGPC 23 998 835 23 983 418
Provisions 23 236 700 21 448 727
Debtors and Other Credit Balances 148 331 323 99 497 366
Liabilities Held for Sale 4 600 4 600
Total Current Liabilities 300 110 076 240 239 861
Long-Term Loans 97 525 847 119 409 164
Other Long-Term Liabilities 309 057 372 908
Deferred Tax Liability 25 374 288 26 571 939
Total Long-Term Liabilities 123 209 192 146 354 011
Paid-in Capital 256 110 292 256 110 292
Reserves 191 513 013 189 894 520
Fair Value Reserve (166 463 510) (170 395 430)
Retained Earnings 325 863 068 325 259 517
Translation Adjustments (210 712 432) (212 373 270)
Formed versus-based payment transactions on shares 17 561 848 17 561 848
Total Equity Attributable to the Company 413 872 279 401 057 477
Non-Controlling Interest 200 539 682 224 276 236
Total Shareholders' Equity 614 411 961 625 333 713
Total SHE + Total Liabilities 1 037 731 229 1 011 927 585
Egypt Kuwait Holding | Investor Presentation 38
CONSOLIDATED CASH FLOWS
USD 1H 2017 1H 2016
Cash flows from operating activities
Net profit for the year before income tax 61 079 164 63 192 299
Adjustments for:
Depreciation of fixed assets and amortization of other intangible assets 13 553 288 14 198 315
The company's share in associated companies' profits 1 206 695 (2 646 784)
Re-evaluation of a portfolio of investments held for trading Output (372 780) (1 305 642)
Financing expenses 5 370 833 5 370 833
Interest income (12 506 746) (6 678 738)
Capital gains (998 204) (66 611)
Provisions no longer required (10 603) (201 224)
Provisions other than depreciation 1 858 169 22 481 548
Re Impairment losses on receivables and debit balances (5 133 200) (33 086 991)
Impairment losses on receivables and debit balances 5 531 -
Re Impairment in assets value 3 000 000
The share of discontinued operations in the sister companies' profits - 296 494
Profit (loss) on disposal of discontinued operations - lost control - (11 092 038)
Operating profit before changes in assets & liabilities available from operating
activities61 925 035 50 461 461
Investments at fair value 2 329 254 82 692 184
Sales agents and notes receivable (23 039 896) (8 719 206)
Accounts receivable and other receivables (6 439 762) (827 859)
Inventory (5 810 129) 4 680 482
Work in progress 2 651 637 (869 755)
Suppliers and subcontractors 1 357 952 4 507 557
Payables and other credit balances 35 298 123 (20 241 906)
Egyptian General Petroleum Corporation 15 417 24 038 376
Frozen deposits - (18 649 997)
Time Deposits 93 608 039
Utilized provisioning (229 852) (166 800)
Financing expenses paid (6 146 505) (5 394 092)
Net change in assets of unconsolidated subsidiaries as a result of loss of control - (39 363 876)
Net cash available from (used in) operating activities 155 519 313 72 146 569
USD 1H 2017 1H 2016
Cash flows from investing activities
Interest income 12 810 044 5 427 161
Payments for purchase of fixed assets and projects under implementation (8 730 188) (5 898 469)
Payments for exploration and development assets 4 000 000 -
Proceeds from sale of fixed assets 15 66 611
Proceeds from the Egyptian General Petroleum Corporation (838 737) 5 413 709
Proceeds from sale of investments available for sale 14 576 522 4 469 307
Purchase of financial investments available for sale (14 732 221) (6 080 354)
Proceeds from Financial investments held- to-maturity 18 255 152 -
Financial investments held- to-maturity payments (11 544 321) (44 415 466)
Dividend paid of sister companies - 1 200 000
Payments for investments in Treasury bills more than three months (16 542 880) (31 112 088)
Proceeds from investments in Treasury bills more than three months 7 794 343 20 077 563
Net cash used in investing activities 5 047 729 (50 852 026)
Cash flows from financing activities
Repayment of long-term loans and bank facilities (9 992 067) (18 719 211)
Proceeds from long-term loans and bank facilities 1 664 356 -
Proceeds from loans and short-term bank facilities 38 792 128 56 175 770
Repayment of loans and short-term bank facilities (39 631 229) (95 606 612)
Proceeds from banks - overdraft 11 085 47 082
Outstanding of banks - overdraft (4 262 369) (38 153 612)
Purchase of non-controlling interest (19 055 040) (3 043 968)
Non-controlling stakes (12 698 394) 37 115 847
Dividends paid (38 670 7769) (36 824 402)
Net cash used in financing activities (83 843 306) (99 009 106)
Translation of financial statements of the accumulated differences (11 735 170) (4 023 482)
Net change in cash and cash equivalents during the year (88 459 906) (81 738 045)
Cash and cash equivalents at beginning of the period 103 682 428 346 901 181
Cash and cash equivalents at end of the year 192 142 334 265 163 136
Egypt Kuwait Holding | Investor Presentation 39
APPENDIX 1: ORGANIZATION & GOVERNANCE
Egypt Kuwait Holding | Investor Presentation 40
BOARD OF DIRECTORS
Mr. Moataz Al-Alfi
Chairman of the Board
and Chief Executive
Officer (Executive)
Mr. Loay Jassim Al-
Kharafi
Vice Chairman of the
Board (Non-Executive)
Mr. Sherif El Zayat
CEO (Executive)
Mr. Saad Al-Saad
Member of the Board
(Non-Executive)
Mr. Abdel Mohsen Al-
Fares
Member of the Board
(Non-Executive)
Mr. Marzouk Al-
Ghanim
Member of the Board
(Non-Executive)
Mr. Assad Al-Banwan
Member of the Board
(Non-Executive)
Mr. Hussein Al-
Kharafi
Member of the Board
(Non-Executive)
Mr. Ayman Laz
Member of the Board
(Non-Executive)
Sheikh Mubarak
Abdulla Al-Mubarak
Al-Sabah
Member of the Board
(Non-Executive)
Sheikh Fahd Hamed
Abdulah El Sabah
Member of the Board
(Non-Executive)
Eng. Amin Abaza
Member of the Board
(Non-Executive)
Independent
Mr. Talal Jassim Al-
Khrafi
Member of the Board
(Non-Executive)
Mr. Husam Mohamed
El-Sayed
Member of the Board
(Non-Executive)
Eng. Ismail Osman
Member of the Board
(Non-Executive)
Mr. Mohamed Kamel
Member of the Board
(Non-Executive)
Marzouk Al Kharafi
Member of the Board
(Non-Executive)
Mr. Hussam Al
Kharafi
Member of the Board
(Non-Executive)
Mr. Waleed El Zorba
Member of the Board
(Non-Executive)
Independent
Egypt Kuwait Holding | Investor Presentation 41
MANAGEMENT TEAM
Mr. Moataz Al-Alfi
Chairman of the Board
and Chief Executive
Officer
Mr. Sherif El Zayat
CEO
Mr. Ayman Laz
Advisor to the Chairman
and CEO
Mrs. Sahar Farahat
Senior Executive Vice
President
Mr. Medhat Bonna
Group Chief Financial
Officer
Mr. Khaled El-
Demerdash
Group Legal Counsel
Mr. Tamer Badrawi
Chief Human Resources
& Communication
Officer
Mr. Hany Azzam
Head of Corporate
Governance
Mr. Hany Ezzat
Group Treasurer
Mr. Sayed Hussein
Sector Head — Cement
Mr. Alaa El Banna
Vice President —
Special Projects
Mr. Elhamy El Sheikh
Sector Head — Gas
Mr. Omar Foda
Director – Investments
Mr. Haitham Abdel
Moneim
Senior Investor
Relations Manager
Mr. Ashraf Abdel Aziz
Corporate Commercial
Director
Egypt Kuwait Holding | Investor Presentation 42
KEY MILESTONES
1997
Establishment of
Egypt Kuwait
Holding (EKH)
1998
Establishment of
NatGas (gas distribution
company, with current partners
including Royal Dutch Shell and
GAIL India)
1999
• NatGas commences
operations
• Initial acquisition of a
significant stake in
Delta Insurance (an
Egyptian insurance
company)
2002
Acquisition of majority stake in
Egyptian Glass Company (EGC)
(at the time the largest glass
manufacturer in North Africa)
through a joint venture with
Guardian Industries
2003
• Establishment of AlexFert (nitrogen fertilizer plant)
• Acquisition of 11.75% in Egyptian Ferilizer Company (EFC)
(nitrogen fertilizer plant)
• Acquisition of a minority stake in Fayum Gas (gas
distribution company)
• Establishment of Nubaria Gas (gas distribution company)
• Establishment of Kahraba (provides electrical and
thermal energy solutions)
2004
Acquisition of an
additional stake in
Delta Insurance
2005
Participated in the bidding
process to acquire 100% of
EFC, which ultimately led to
the divestiture of the stake
2006
• AlexFert commences operations
• Establishment of Egyptian Tanker Company
(ETC) (crude marine transport services)
• Establishment of Gas Chill Company (provides
cooling/heating systems)
2007
• Capital increase by means of a c.USD 100 million rights issuance
• Acquisition of Sprea and Plastichem (chemicals company)
• Establishment of Building Materials Industries Company (BMIC)
(cement production company)
• Acquisition of a controlling stake in Fayum Gas through a joint
venture with GAIL India
2008
• Establishment of Nile Takaful and Nile Family Takaful
(an Egyptian insurance company) as a joint venture
with Tokyo Marine
2009
• Divestiture of EGC to
Guardian Industries
2011
• Investment in
Egyptian
Hydrocarbon
Corporation
(EHC) (mining
grade ammonium
nitrate Plant)
2012
• BMIC begins
operations
2013
• Divestiture of Nile Takaful to
Tokyo Marine
• Investment in a global
infrastructure fund management
company
2014
• Completion of a
capital increase by
means of a c.USD
110 mn rights
issuance
2016
• Sprea comments production of
Sulfonated Naphthalene
Formaldehyde (SNF) with design
capacity of 66,000 tpa.
• Acquiring additional 9% of Natgas
raising EKH ownership to 84%
2015
• Acquiring 18% of
Natgas raising EKH
ownership to 57%
Egypt Kuwait Holding | Investor Presentation 43
CORPORATE CITIZENSHIP
Corporate Governance
Egypt Kuwait Holding (EKH) is committed to promoting a responsible, ethical business culture which safeguards the interests of our
shareholders, stakeholders, and the environment in which we operate. EKH assesses its policies and performance with respect to its Business
Principles; Code of Conduct; Health, Safety, Security and Environment (HSSE) policies; and major issues of public concern on behalf of the
Board. Our corporate governance policies and practices are guided by internationally recognized standards such as the OECD Principles of
Corporate Governance.
Corporate Social Responsibility (CSR) Projects
From its support of NGOs through applications and donations, to its involvement in spreading software knowledge to Egyptian universities,
Egypt Kuwait Holding is proud to have participated in numerous educational initiatives since 2014. EKH offers assistance to surrounding
schools, supplying them with computers to further develop students’ cognitive and technical skills and providing support for renovating the
infrastructure of the educational institutions.
EKH is an active supporter of Injaz Egypt, an organization working to bridge the gap between the education system and the private sector.
In partnership with the Ministry of Education and multinational and national companies, the program has positively impacted 500,000
Egyptian students in more than 451 public schools and 21 universities in 26 governorates since its establishment in 2003. Injaz Egypt is a
member nation of Junior Achievement, a global economic education organization with a presence in over 100 countries, impacting over 8
million youth worldwide
Egypt Kuwait Holding (EKH) prides itself on actively participating in sustainable development, focusing on improving communities in the
emerging economies in which it does business and working diligently to create a better future for coming generations. From educational
initiatives and contributions to NGOs and charities, to stringent measures aimed at minimizing its environmental footprint, EKH remains
deeply committed to ensuring a sustainable future.
Egypt Kuwait Holding | Investor Presentation 44
Haitham Abdel Moneim
Senior Investor Relations Manager
Telephone : +202-3363300
Fax : +202-3358989
E-mail : [email protected]
Website : www.ekholding.com