Valmore Holding · EGX:VLMR
Valmore — Egypt Kuwait Holding — 9M 2023 Earnings Presentation
34 slides from Valmore's earnings presentation, Nov 27, 2023
Slide 1: Integrated Investments Generating Superior Returns
Integrated Investments Generating Superior Returns Investor Presentation 9M 2023 November 2023
Slide 2: EKH Overview
EKH OVERVIEW
Slide 3: Egypt Kuwait Holding "EKH"
EGYPT KUWAIT HOLDING “EKH” Hands-on investor and Create synergies between Secure strategic partnerships with operator different group companies leading international value added industry players Long-term investor with Develop greenfield operations to Expand industry expertise to opportunistic exit
Slide 4: EKH's Main Portfolio Companies
EKH’S MAIN PORTFOLIO COMPANIES Insurance & Non-Banking Financial Fertilizers and Petrochemicals Energy and Energy-Related Services Sprea Misr NatEnergy Delta Insurance Petrochemicals Plant Gas Distribution and Electricity Life, Property & Casualty Insurance Generation & Distribution Holding Company
Slide 5: EKH at a Glance
EKH AT A GLANCE Recurring Revenues in US$ mln Recurring Attributable EBITDA in US$ mln 6 strategic sectors c. 6,500 Professionals employed EBITDA margin 9M 2023: 45% Petrochemicals, by the holding company fertilizers, gas and its subsidiaries 1,104 433 distribution, electricity generation & 388 833
Slide 6: Recent Developments
RECENT DEVELOPMENTS Kahraba Awarded EPC and O&M Power Distribution Agreement with Increased Direct and Indirect Centamin Ownership Stake in Alexfert to EKH’s downstream energy player ‘Kahraba’ won 75.13% the tender issued by Centamin, the operator the EKH recently announced increasing its stake in S
Slide 7: Growth Drivers
GROWTH DRIVERS
Slide 8: Sprea Misr
SPREA MISR Founded in 1989 and acquired by EKH in 2007 Revenues in EGP mln EBITDA in EGP mln A state of the art petrochemicals production EBITDA margin 9M 2023: 45% facility located in 10th of Ramadan over 103k m2. 3,903 3,887 100% +50 countries 1,786 Effective EKH ownership Export destinations 2,63
Slide 9: Sprea Misr Recent Developments
SPREA MISR Recent Developments Dry SNF Powder & Liquid Glue Formaldehyde Line Capacity Additional 15 KTPA to reach 37.6 Capacity Powder Glue: Additional 10 KTPA Capacity Additional 50 KTPA KTPA to reach 34 KTPA Liquid Glue: Additional 56 KTPA to Production Q3 2023 reach 121 KTPA Production Q3 2023 S
Slide 10: NatEnergy
The largest private sector operator of natural gas pipelines in the MENA region. NATENERGY Developed, installed, and currently operating and maintaining over 13,200km of pipelines NatEnergy is a holding company with ownership Revenues in EGP mln EBITDA in EGP mln stakes in 5 subsidiaries in Egypt: N
Slide 11: NatEnergy: NatGas & Fayum Gas
NATENERGY: NATGAS & FAYUM GAS Existing Concessions Haya Karima On 2nd January 2021, HE President Abdel Fattah El-Sisi launched the initiative Haya Karima (Decent Life), with the aim of improving the living conditions of millions of Egyptians. The initiative seeks to provide everything from education
Slide 12: NatEnergy: Kahraba
NATENERGY: KAHRABA ▪ Kahraba owns and operates two central One of Kahraba’s Power Generation Plants In Borg El Arab power generation plants with an installed capacity of 115 MW in Borg Al-Arab Industrial Kahraba’s Actual Electricity Distribution Volume Zone in Alexandria and 2 smaller Independent (m
Slide 13: AlexFert
ALEXFERT Established by EKH in 2003. It operates a Revenues in US$ mln EBITDA in US$ mln fertilizer production facility in Alexandria over an EBITDA margin 9M 2023: 44% area of 110,000 m2. 486 291 640 ktpa 180 ktpa 380 239 Urea Production ammonium sulphate 280 Capacity 140 capacity 194 192 84 65 55
Slide 14: Offshore North Sinai Concession (ONS)
OFFSHORE NORTH SINAI CONCESSION (ONS) 440 km2 concession located 56 Km offshore of Revenues in US$ mln EBITDA in US$ mln Port Said. Facilities include pipeline to shore + processing facilities (Romana) 59 61 5 50 MMSCFd 55 44 44 41 42 47 Operative wells Daily production 2023 35 36 14 14 12 12 443 km
Slide 15: Offshore North Sinai Concession (ONS)
OFFSHORE NORTH SINAI CONCESSION (ONS) Overview of Concession and CAPEX Plan Concession Terms ▪ Offshore, located 63 Km North East of Port Said. ▪ Operated through NOSPCO JV after take over from Perenco mid 2014. 30 year concession started in 1998, ending at 2028 (Currently working for 10 years exten
Slide 16: Offshore North Sinai Concession (ONS)
OFFSHORE NORTH SINAI CONCESSION (ONS) ONS Production Facilities Phase3A Platform fabrication and installation Onshore CPF Site Rumana CPF Office Camp in Rumana Platform Fabrication Platform Sail Away Platform Installation CPF Egypt Kuwait Holding | Investor Presentation 16
Slide 17: Insurance: Delta & Mohandes
Insurance: Delta & Mohandes Significant increase in attributable net profit to EKH from Recurring Attributable Net Profit in EGP mln its insurance subsidiaries over the last 4 years. Delta Insurance ▪ Leading life, property & casualty insurance company ▪ Delta Insurance is currently among the top 5
Slide 18: Non Banking Financial Services: Bedayti
Non Banking Financial Services: Bedayti Bedayti Microfinance Egypt’s Total Microfinance Loans EGP mln No. of Microfinance Loan Beneficiaries in Egypt ‘000 ▪ EKH‘s fully owned microfinance subsidiary Bedayti 28% started operations in Q1 2022. CAGR: 35.3% 43,900 3,940 3,850 3,820 Bedayti Q2 2023 Perfo
Slide 19: Non Banking Financial Services: Bedayti
Non Banking Financial Services: Bedayti Egypt Kuwait Holding | Investor Presentation 19
Slide 20: Nile Wood
Nile Wood Forest MDF Factory ▪ Raw materials are sourced from our forest located in Sadat City, just 5 km away from the factory. Production Facility ▪ The factory over an area of 150,000 m2 is under construction in Sadat City, 140 km away from Alexandria Port. ▪ Total investment cost stands at c. EG
Slide 21: Nile Wood – MDF Production Process
Nile Wood – MDF PRODUCTION PROCESS Chipping Line Refining Glueing Egypt Kuwait Holding | Investor Presentation 21
Slide 22: Nile Wood – MDF Production Process
Nile Wood – MDF PRODUCTION PROCESS Forming Line Press System Sanding Line Cutting Line Egypt Kuwait Holding | Investor Presentation 22
Slide 23: Shareholder Returns & Financial Highlights
SHAREHOLDER RETURNS & FINANCIAL HIGHLIGHTS Egypt Kuwait Holding | Investor Presentation 23
Slide 24: Share Performance & Shareholder Returns (EGX)
Share Performance & Shareholder Returns (EGX) Returns Adjusted for Dividends EKHO Share on EGX and EGX 30 Index Share Information ▪ Number of shares listed on both EGX & Boursa Kuwait : 1.126. bln ▪ Market Cap as of 25th Oct 2023: US$ 1.3 bln (EGP 41 bln) +217% EGX 30 3% Returns ▪ 2016 – Q3 2023: EK
Slide 25: Share Performance & Shareholder Returns (Boursa Kuwait)
Share Performance & Shareholder Returns (Boursa Kuwait) Returns Adjusted for Dividends EKHOLDIN Share on Boursa Kuwait and BKM50 Index Share Information ▪ Number of Shares Listed on Kuwait Bourse in Dinars: 572 mln +208% Kuwait All Share Price Index Returns +81% ▪ 2016 – Q3 2023: EKHOLDIN up 208% vs
Slide 26: Financial Highlights
Financial Highlights Total Assets (USD Mn) Total Equity of the owners of the Parent Company (USD Mn) 650 2,141 575 1,960 1,923 553 564 503 1,621 431 1,371 1,117 2018 2019 2020 2021 2022 Q3 2023 2018 2019 2020 2021 2022 Q3 2023 Attributable Net Profit (USD Mn) Return on Equity (ROE) 241 43% 207 171 1
Slide 27: EBITDA & Debt Overview
EBITDA & Debt Overview Attributable EBITDA (In ‘000 USD) Q2 2023 Q3 2023 Fertilizers and Petrochemicals 26,927 29,257 Energy & Energy Related 20,334 37,474 Diversified 14,944 15,245 Attributable EBITDA 62,206 81,976 Net Debt (Cash) (In ‘000 USD) Q1 2023 Long-term interest-bearing debt 557,124 Short-
Slide 28: Appendix 1: Management Team, Board Members, Timeline & Corporate Citizenship
APPENDIX 1: MANAGEMENT TEAM, BOARD MEMBERS, TIMELINE & CORPORATE CITIZENSHIP Egypt Kuwait Holding | Investor Presentation 28
Slide 29: Board of Directors
Board of Directors Mr. Loay Jassim Al- Mr. Adel Al-Alfi Eng. Sherif El Zayat Mr. Moataz Al-Alfi Kharafi Vice Chairman of the CEO Member of the Board Chairman of the Board Board (Non-Executive) (Executive) (Non-Executive) (Non-Executive) Ms. Heba Nasser Al Sheikh Mubarak Abdulla Eng. Ibrahim Mahlab M
Slide 30: Management Team
Management Team Mr. Tamer Badrawi Eng. Sherif El Zayat Mr. Medhat Bonna Mr. Khaled El- Chief Human Resources Chief Executive Officer Group Chief Financial Demerdash & Communication Officer Group Legal Counsel Officer Mr. Ahmed El -Chourbagy Mrs Angie Helmi Mr. Hany Ezzat Mr. Elhamy El Sheikh Senior
Slide 31: Key Milestones
Key Milestones 1997 1998 1999 2001 2002 2003 2004 2005 ▪ EKH Established ▪ Established ▪ NATGAS started ▪ Listing on ▪ Acquired majority ▪ Established Alexandria Fertilizer Company (Alex ▪ Increased Stake in ▪ Divested stake by prominent NATGAS with operation Boursa Kuwait stake in Egyptian Fert) De
Slide 32: Key Milestones
Key Milestones 2021 2016 2017 2018 2019 2020 2021 cont. ▪ Sprea Misr’s new SNF ▪ Divesting stake in EHC ▪ Launched MTO and ▪ Acquired Shield ▪ Acquired 24.99% ▪ Increased stake in AlexFert to 57.4% ▪ Delta Insurance extraordinary general production line started to Carbon Holding Increased stake in D
Slide 33: 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 34: Disclaimer
Disclaimer This presentation was prepared by Egypt Kuwait Holding S.A.E. (“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 pro