Valmore Holding · EGX:VLMR
Valmore — Egypt Kuwait Holding — 9M 2020 Earnings Presentation
33 slides from Valmore's earnings presentation, 2020
Slide 1: An Integrated Portfolio of Investments
An Integrated Portfolio of Investments Investor Presentation 3Q/9M 2020
Slide 2: Cautioning and Forward Looking Statements
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 othe
Slide 3: Agenda
AGENDA EKH Overview Growth Drivers & Recent Developments • NatEnergy • Sprea • Offshore North Sinai • AlexFert • Delta & El Mohandes Insurance Future Expansion • Nilewood - MDF Project Financial Highlights Appendix 1: Organization & Governance
Slide 4: EKH Overview
EKH OVERVIEW Egypt Kuwait Holding | Investor Presentation 4
Slide 5: EKH and its companies benefit from a clear strategy and investment philosophy
EKH AND ITS COMPANIES BENEFIT FROM A CLEAR STRATEGY AND INVESTMENT PHILOSOPHY Hands-on investor and Develop greenfield operations to Secure strategic partnerships with operator leverage operational expertise leading international value added industry players Long-term investor with Create synergies
Slide 6: Primary Portfolio Investments
PRIMARY PORTFOLIO INVESTMENTS Fertilizers and Petrochemicals Segment Energy and Energy-Related Segment Insurance Segment Sprea Misr (Chemicals Plant) Effective Ownership Delta Insurance Offshore North Sinai 100.00% (Life and General Insurance Company) (Gas Upstream) Effective Ownership Effective Own
Slide 7: EKH at Glance & Key Financial Highlights
EKH at GLANCE & KEY FINANCIAL HIGHLIGHTS Recurring Revenue (USD mn) Recurring Attributable EBITDA (USD mn) 5 > 5,000 strategic sectors, ranging 563 professionals employed by 172 from fertilizers , 480 the holding company and 457 148 petrochemicals to gas 414 133 its subsidiaries 364 121 distribution
Slide 8: Growth Drivers & Recent Developments
GROWTH DRIVERS & RECENT DEVELOPMENTS Egypt Kuwait Holding | Investor Presentation 8
Slide 9: Growth Drivers - NatEnergy
GROWTH DRIVERS - NATENERGY Revenue (EGP mn) EBITDA (EGP mn) c. 1.66 mn > 19% household clients market share in Egypt 1,819 714 1,554 1,393 1,352 540 539 526 607 953 458 491 217 353 167 183 > 8,400 > 718 commercial clients industrial clients 2016 2017 2018 2019 9M 19 9M 20 3Q 19 3Q 20 2016 2017 2018
Slide 10: NatEnergy Concessions
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 10
Slide 11: Growth Drivers - Sprea
GROWTH DRIVERS - SPREA > 85% 100% Revenue (EGP mn) EBITDA (EGP mn) market share in Egypt effective ownership 38+ > 132 ktpa 2,049 2,086 1,993 export courtiers Formaldehyde & form-urea 592 579 591 1,602 capacity 1,319 451 483 456 1,248 > 102 ktpa > 3.7mn/sheets 546 373 163 147 glues and melamine pa 2
Slide 12: Growth Drivers - AlexFert
GROWTH DRIVERS - ALEXFERT Revenue (USD mn) EBITDA (USD mn) > 98% 45.3% utilization rate in 3Q 20 effective ownership 68 66 188 195 177 60 149 145 51 49 396 ktpa 136 32 650 ktpa 44 43 13 15 urea capacity ammonia capacity 2016 2017 2018 2019 9M 19 9M 20 3Q 19 3Q 20 2016 2017 2018 2019 9M 19 9M 20 3Q 1
Slide 13: Growth Drivers - Offshore North Sinai Concession (ONS)
GROWTH DRIVERS - OFFSHORE NORTH SINAI CONCESSION (ONS) Revenue (USD mn) EBITDA (USD mn) 6 100% operative wells in 3Q 20 effective ownership 44 42 34 38 32 30 30 14 13 21 10 10 60 mmscf 2.1 tcf daily production 3Q 20 GIIP total potential gas resources 2018 2019 9M 19 9M 20 3Q 19 3Q 20 2018 2019 9M 19
Slide 14: Growth Drivers - Offshore North Sinai Concession (ONS)
GROWTH DRIVERS - OFFSHORE NORTH SINAI CONCESSION (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
Slide 15: Offshore North Sinai Rumana Production Facilities
GROWTH DRIVERS - OFFSHORE NORTH SINAI CONCESSION (ONS) Offshore North Sinai Rumana Production Facilities Office Camp in Onshore CPF Site Rumana CPF Rumana CPF Egypt Kuwait Holding | Investor Presentation 15
Slide 16: Kamose Project's Progress
GROWTH DRIVERS - OFFSHORE NORTH SINAI CONCESSION (ONS) Kamose Project’s Progress MOPU Mini-Deck Installation The Rig Egypt Kuwait Holding | Investor Presentation 16
Slide 17: Offshore North Sinai Concession - Plateau Update
GROWTH DRIVERS - OFFSHORE NORTH SINAI CONCESSION (ONS) Total reserve is Plateau Update TAO Flow line 110.2 BCF 22” 65 KM ▪ Phase 3 project will be developed as follows: – Phase 3a NW1/KSW1/KSW3 (3 wells) Kamose NW, – Phase 3b KSW2/KNW2/TAO 11/KSE1 (4 wells). 34.5 BCF 2 wells (NW1 / ▪ Estimated Inves
Slide 18: Growth Drivers - Delta Insurance
GROWTH DRIVERS - DELTA INSURANCE Consolidated Premiums (EGP mn) (1) EGP 840 • Established in 1981 EGP 623 EGP 652 • +19 branches EGP 357 EGP 392 EGP 387 • Holds c.3% share of the Egyptian insurance market • Publicly listed since 1996 2015 2016 2017 2018 2019 2020 Net Profit (EGP mn) (1) Activities:
Slide 19: Growth Drivers - El Mohandes Insurance
GROWTH DRIVERS - EL MOHANDES INSURANCE Consolidated Premiums (EGP mn) (1) EGP 612 EGP 592 • Established in 1980 EGP 518 EGP 408 • +19 branches EGP 317 • Holds c.3% share of the Egyptian insurance market • Publicly listed since 1995 2016 2017 2018 2019 2020 Net Profit (EGP mn) (1) Activities: The Com
Slide 20: Insurance Segment - Profitability Impact
INSURANCE SEGMENT – PROFITABALITY IMPACT Attributable Net Profit (EGP mn) (1) EGP 104 EGP 3 EGP 101 EGP 75 EGP 51 EGP 28 EGP 7 EGP 10 2015 2016 2017 * 2018 2019 ** 2020 Delta El Mohandes 1) Fiscal year ended as of June 30. * Increased EKH stake in Delta Insurance to 55% up from 33%. ** Increased EKH
Slide 21: Nilewood MDF Project
NILEWOOD MDF PROJECT Egypt Kuwait Holding | Investor Presentation 21
Slide 22: Capitalizing Upon Key Macro and Micro Factors
CAPITALIZING UPON KEY MACRO AND MICRO FACTORS Favorable Logistics Higher reliability Trading Hub via seaports and inland access enabling through installation of top notch MDF for commercial activities in Africa and easy access to the MENA Region and industrial equipment the Middle East Africa +400,0
Slide 23: Project Highlights & Updates
PROJECT HIGHLIGHTS & UPDATES Key Highlights: EGP793 mn facility granted at 8% interest , 8Y tenor, and L.C opened. 20% enhancement in design capacity compared to the initial plan. 13000 faddans targeted plantation to accommodate for future expansion on track. • The factory is set to be built in Sada
Slide 24: Project Highlights & Updates
PROJECT HIGHLIGHTS & UPDATES Project Update… Sadat Forest 1420 Faddans Egypt Kuwait Holding | Investor Presentation 24
Slide 25: Financial Highlights
FINANCIAL HIGHLIGHTS Egypt Kuwait Holding | Investor Presentation 25
Slide 26: EKH's Financials Are Solid
EKH’S FINANCIALS ARE SOLID Total Assets (USD Mn) (1) Total Equity Book Value (USD Mn) (1) 2,288 2,076 869 1,858 1,750 764 740 724 1,679 1,673 1,603 1,528 651 1,371 569 562 575 531 522 503 479 974 1,007 1,050 1,117 396 275 528 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2006
Slide 27: EBITDA & Debt Overview
EBITDA & DEBT OVERVIEW Attributable EBITDA Segmented EBITDA (In ‘000 USD) 3Q 2020 9M 2020 Fertilizers and Petrochemicals 16,161 50,985 Energy & Energy Related 19,613 61,669 Diversified 13,733 35,393 Attributable EBITDA 49,508 148,047 Net Debt (Cash) (In ‘000 USD) 9M 2020 Long-term interest-bearing d
Slide 28: Appendix 1: Organization & Governance
APPENDIX 1: ORGANIZATION & GOVERNANCE Egypt Kuwait Holding | Investor Presentation 28
Slide 29: Board of Directors
BOARD OF DIRECTORS Mr. Moataz Al-Alfi Mr. Loay Jassim Al- Mr. Ibrahim Mahlab Chairman of the Board Kharafi Mr. Sherif El Zayat Member of the Board and Chief Executive Vice Chairman of the CEO (Executive) (Non-Executive) Officer (Executive) Board (Non-Executive) Mr. Abdel Mohsen Al- Mr. Marzouk Al- M
Slide 30: Management Team
MANAGEMENT TEAM Mr. Moataz Al-Alfi Mr. Medhat Bonna Mr. Ayman Laz Chairman of the Board Mr. Sherif El Zayat Group Chief Financial Advisor to the Chairman and Chief Executive CEO Officer and CEO Officer Mr. Tamer Badrawi Mr. Khaled El- Mr. John Baracat Chief Human Resources Mr. Hany Ezzat Demerdash C
Slide 31: Key Milestones
KEY MILESTONES 1997 1998 1999 2002 2003 2004 Establishment of Establishment of • NatGas commences Acquisition of majority stake in • Establishment of AlexFert (nitrogen fertilizer plant) Acquisition of an Egypt Kuwait NatGas (gas distribution operations Egyptian Glass Company (EGC) • Acquisition of
Slide 32: Corporate Citizenship
CORPORATE CITIZENSHIP 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 initiat
Slide 33: Investor Relations Contact
Haitham Abdel Moneim Investor Relations Director Telephone : +202-3363300 Fax : +202-3358989 E-mail : [email protected] Website : www.ekholding.com Egypt Kuwait Holding | Investor Presentation 33