Valmore Holding · EGX:VLMR
Valmore — Egypt Kuwait Holding — H1 2021 Earnings Presentation
34 slides from Valmore's earnings presentation, Oct 25, 2021
Slide 1: Integrated Investments Generating Superior Returns
Integrated Investments Generating Superior Returns Investor Presentation 2Q/H1 2021
Slide 2: 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
Slide 3: Agenda
AGENDA EKH Overview Growth Drivers & Recent Developments • Sprea Misr • NatEnergy • AlexFert • Offshore North Sinai • Insurance and NBFS • Nilewood - MDF Project Financial Highlights Appendix 1: Organization & Governance
Slide 4: EKH Overview
EKH OVERVIEW
Slide 5: 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 6: 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 7: EKH at a Glance
EKH AT A GLANCE Recurring Revenues in US$ mln Recurring Attributable EBITDA in US$ mln 5 strategic sectors > 5,000 professionals employed petrochemicals, 603 by the holding company 563 fertilizers, gas and its subsidiaries distribution, electricity 480 22% generation & 364 378 distribution, upstream
Slide 8: Recent Developments
RECENT DEVELOPMENTS Trading on EKH’s shares in EGP on Increased EKH’s Ownership in EGX AlexFert Trading on EKH’s EGP dominated shares on Sept EKH increased its stake in AlexFert to 57.4% in 1Q 19th 2021 after 68.4% of Shareholders whose 2021. shares are trading on EGX opted for the conversion the tr
Slide 9: Growth Drivers
GROWTH DRIVERS
Slide 10: Sprea Misr
SPREA MISR Founded in 1989 and acquired by EKH in 2007 Revenues in EGP mln State of the art Petrochemicals Plant located in 10th of Ramadan over 88,000 m2. > 85% +38 countries 2,049 2,086 Market Share in Egypt Export Destinations 1,993 > 144 ktpa > 102 ktpa 1,625 Formaldehyde & glues and melamine fo
Slide 11: Sprea Misr: Projects in Progress
SPREA MISR Projects in Progress Formica Sheets Production Line SNF Production Line Sulfuric Acid Production Line Capacity Additional 3 mln sheets p.a. Capacity Additional 90 ktpa Capacity 165 ktpa Doubling capacity to 6 mln sheets Doubling capacity to 180 ktpa Production 2Q 2022 Production Additiona
Slide 12: NatEnergy
NATENERGY NatEnergy is a holding company with ownership Revenues in EGP mln EBITDA in EGP mln stakes in 5 subsidiaries: NATGAS, Fayum Gas, EBITDA margin H1 2021: 36% Nubaria, Kahraba and Gas Chill. 2,020 1,819 > 1.7 mln > 8,500 1,393 722 9% Households served by Commercial Clients 1,066 1,027 8% 714
Slide 13: NatEnergy: NATGAS & Fayum Gas
NATENERGY: NATGAS & Fayum Gas Existing Concessions Haya Karima On 2nd January 2021, HE President Abdel Fattah El-Sisi launched the imitative Haya Karima to improve the living conditions and daily life of the Egyptian citizen, as well as an immediate and urgent intervention to honor the Egyptian pers
Slide 14: NatEnergy: Kahraba
NATENERGY: Kahraba ▪ Kahraba owns and operates 2 power One of Kahraba’s Power Generation Plants In Borg El Arab generation plant with an installed capacity of 85 MW in Borg Al-Arab Industrial Zone in Alexandria, in addition to 2 smaller power generation facilities. ▪ In 2021, NatEnergy succeeded in
Slide 15: 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 H1 2021: 42.6% area of 108,000 m2. 188 195 194 177 26% 650 ktpa 180 ktpa 129 16% 62% Urea Production ammonium sulphate 68 66 65 102 60 Capacity
Slide 16: Offshore North Sinai Concession (ONS)
OFFSHORE NORTH SINAI CONCESSION (ONS) 355 km2 concession located offshore 50 Km Revenues in US$ mln EBITDA in US$ mln North East of Port Said. 55 44 6% 5 50 mmscf/day 38 28 30 20% 41 Operative wells daily production 2Q 21 34 30 6% 14 16 22 21 11 12 US$ 75 mln 100% CAPEX spent in 2021 to Effective EK
Slide 17: Offshore North Sinai Concession (ONS)
OFFSHORE NORTH SINAI CONCESSION (ONS) Overview of Concession and CAPEX Plan Concession Terms ▪ Offshore, located 50 Km North East of Port Said. ▪ Operated through NOSPCO JV after take over from Perenco mid 2014. 20 year concession started in 2009, with a possible extension to 2034. ▪ Two Development
Slide 18: Offshore North Sinai Concession (ONS)
OFFSHORE NORTH SINAI CONCESSION (ONS) ONS Production Facilities Progress on Kamose Project Onshore CPF Site Rumana CPF Office Camp in Rumana Platform Fabrication Platform Sail Away Platform Installation CPF Egypt Kuwait Holding | Investor Presentation 18
Slide 19: Insurance: Delta & El Mohandes
Insurance: Delta & El Mohandes Significant increase in attributable net profit to EKH Attributable Net Profit in EGP mln from its insurance subsidiaries. Delta Insurance 104 ▪ Leading Life, Property & Casualty Insurance Company 3 ▪ In 2019, EKH increased its stake in Delta Insurance from 33% to 55%.
Slide 20: Non Banking Financial Services: Bedayti
Non Banking Financial Services: Bedayti Total Microfinance Loans EGP mln Number Microfinance Loan Beneficiaries in 000s Bedayti Microfinance ▪ In Q1 2021, EKH established Bedayti to be positioned as 15% 3,318 a leading microfinance company in Egypt. 22,531 3,114 3,163 3,105 44% 2,781 ▪ Bedayti has o
Slide 21: Nile Wood
Nile Wood Forest The Plantation in Sadat City Area ▪ Acquired a forest of 1,420 feddans ▪ Secured an additional 1,250 feddans in Sadat City (of which 800 feddans have been grown) to reach a total land bank of 2,670 feddans in Sadat area; 5 km away from the factory . ▪ In the process of adding anothe
Slide 22: Nile Wood – MDF Production Process
Nile Wood – MDF PRODUCTION PROCESS Chipping Refining Glueing Egypt Kuwait Holding | Investor Presentation 22
Slide 23: Nile Wood – MDF Production Process
Nile Wood – MDF PRODUCTION PROCESS Forming Press System Sanding Cut To Size Egypt Kuwait Holding | Investor Presentation 23
Slide 24: Shareholder Returns & Financial Highlights
SHAREHOLDER RETURNS & FINANCIAL HIGHLIGHTS Egypt Kuwait Holding | Investor Presentation 24
Slide 25: Share Performance & Shareholder Returns (EGX)
SHARE PERFORMANCE & SHAREHOLDER RETURNS (EGX) 5 year Returns Adjusted for Dividends EKH0 Share on EGX and EGX 30 Index Share Information ▪ Number of Shares: 1.126. bln ▪ Market Cap as of 13th October 2021: US$ 1.5 bln (EGP 23.3 bln) +350.4% Returns* ▪ 2016-2021: EKHO up 350.4% vs 47.9% for EGX30* EG
Slide 26: Share Performance & Shareholder Returns (Kuwait)
SHARE PERFORMANCE & SHAREHOLDER RETURNS (KUWAIT) 5 year Returns Adjusted for Dividends EKHOLDIN Share on Boursa Kuwait and BKM50 Index Share Information ▪ Number of Shares Listed on Kuwait Bourse in Dinars: 451.3 mln +308.0% Returns* MSCI Kuwait All ▪ 2016-2021: EKHOLDING up 308% vs 83.36% for Share
Slide 27: EKH's Financials
EKH’S FINANCIALS 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 1,621 651 1,371 569 562 575 553 531 522 503 479 974 1,007 1,050 1,117 396 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2007 2008 20
Slide 28: EBITDA & Debt Overview
EBITDA & DEBT OVERVIEW Attributable EBITDA (In ‘000 USD) 1H 2020 1H 2021 Fertilizers and Petrochemicals 43,823 61,862 Energy & Energy Related 42,056 43,015 Diversified 21,660 27,443 Attributable EBITDA 98,539 132,320 Net Debt (Cash) (In ‘000 USD) 1H 2021 Long-term interest-bearing debt 204,950 Short
Slide 29: Appendix 1: Management Team, Board Members, Timeline & Corporate Citizenship
APPENDIX 1: MANAGEMENT TEAM, BOARD MEMBERS, TIMELINE & CORPORATE CITIZENSHIP Egypt Kuwait Holding | Investor Presentation 29
Slide 30: Board of Directors
BOARD OF DIRECTORS Mr. Moataz Al-Alfi Mr. Loay Jassim Al- Mr. Sherif El Zayat Mr. Ibrahim Mahlab Chairman of the Board Kharafi CEO (Executive) Member of the Board (Non-Executive) Vice Chairman of the (Non-Executive) Board (Non-Executive) Mr. Khaled Waleed Al Eng. Amin Abaza Mr. Hussein Al-Kharafi Mr
Slide 31: Management Team
MANAGEMENT TEAM Mr. Medhat Bonna Mr. Ayman Laz Mr. Moataz Al-Alfi Mr. Sherif El Zayat Group Chief Financial Advisor to the Chairman Chairman Chief Executive Officer Officer and CEO Mr. Tamer Badrawi Mr. Khaled El- Chief Human Resources Mrs Angie Helmi Mr. Hany Ezzat Demerdash & Communication Chief I
Slide 32: Key Milestones
KEY MILESTONES 1997 1998 1999 2001 2002 2003 2004 2005 ▪ EKH Established ▪ Established ▪ NATGAS started ▪ Listing on ▪ Acquired majority stake in ▪ Established Alexandria Fertilizer Company (Alex ▪ Increased Stake in ▪ Divested stake by prominent NATGAS with operation Boursa Kuwait Egyptian Glass Co
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: Angie Helmi, Chief Investment Officer
Angie Helmi Chief Investment Officer Telephone : +202-3363300 Fax : +202-3358989 E-mail : [email protected] Website : www.ekholding.com Egypt Kuwait Holding | Investor Presentation 34