Valmore Holding · EGX:VLMR
Valmore — Egypt Kuwait Holding — EFG Investor Conference 2023
34 slides from Valmore's conference presentation, February 2023
Slide 1: Integrated Investments Generating Superior Returns
Integrated Investments Generating Superior Returns EFG Investor Conference Feb 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 > 6,000 Professionals employed Petrochemicals, by the holding company 33% fertilizers, gas 29% and its subsidiaries 1,104 distribution, electricity 388 generation & 833 300 distribution, upstre
Slide 6: Recent Developments
RECENT DEVELOPMENTS Winning 10th Ramadan Power Increasing Stake in Alex Fert Distribution Substation ( S13) EKH is in final stages of finalizing the acquisition Tender From NUCA of 10 million shares in Alex Fert increasing its EKH’s power generation and distribution direct and indirect stake from 60
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 State of the art petrochemicals plant located in EBITDA margin FY 2022: 28% 10th of Ramadan over 103,000 m2. 48% 3,903 48% 100% +50 countries 1,094 Effective EKH ownership Export destinations 2,632 742 2,086
Slide 9: Sprea Misr Recent Developments
SPREA MISR Recent Developments 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 Q4 2022 Production Additional
Slide 10: NatEnergy
NATENERGY NatEnergy is a holding company with ownership Revenues in EGP mln EBITDA in EGP mln stakes in 5 subsidiaries in Egypt: NATGAS, Fayum EBITDA margin FY 2022: 34% Gas, Nubaria, Kahraba and Gas Chill and Shield 24% 2,730 Gas in UAE 13% 2,201 939 c. 2 mln > 10,953 1,819 2,020 714 722 831 Househ
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 2 Central power One of Kahraba’s Power Generation Plants In Borg El Arab generation plants with an installed capacity of 115 MW in Borg Al-Arab Industrial Zone in Kahraba’s Actual Electricity Distribution Volume Alexandria and 2 smaller Independent powe
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 FY 2022: 60% area of 110,000 m2. 73% 107% 486 291 650 ktpa 180 ktpa Urea Production ammonium sulphate 280 Capacity capacity 140 188 195 194 68 6
Slide 14: Offshore North Sinai Concession (ONS)
OFFSHORE NORTH SINAI CONCESSION (ONS) 445 km2 concession located offshore 50 Km Revenues in US$ mln EBITDA in US$ mln North East of Port Said. 4% 59 61 6 57 MMSCFd 55 41 42 47 44 Operative wells daily production 2022 38 34 30 +140 km2 100% A presidential decree Effective EKH ownership 2018 2019 2020
Slide 15: 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 16: 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 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 35% ▪ Delta Insurance is currently among the to
Slide 18: Non Banking Financial Services: Bedayti
Non Banking Financial Services: Bedayti Bedayti Microfinance Egypt’s Total Micro Finance Loans EGP mln No. of Microfinance Loan Beneficiaries in Egypt ‘000 ▪ EKH‘s fully owned microfinance subsidiary Bedayti started operations in Q1 2022. 16% 50% 37,500 3,950 Bedayti Q4 2022 Performance CAGR: 32.8%
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: 1.126. bln ▪ Market Cap as of 28th Feb 2023: US$ 1.405 bln (EGP 43.03 bln) ▪ EKH ranked 5th largest company by Market Cap on EGX on 28th Feb 2022 +341
Slide 25: Share Performance & Shareholder Returns (Kuwait)
SHARE PERFORMANCE & SHAREHOLDER RETURNS (KUWAIT) Returns Adjusted for Dividends EKHOLDIN Share on Boursa Kuwait and BKM50 Index Share Information ▪ Number of Shares Listed on Kuwait Bourse in Dinars: 573 mln +350% Kuwait All Share Price Index Returns +103% ▪ 2016-2023: EKHOLDIN up 350% vs 103% for B
Slide 26: EKH's Financials
EKH’S FINANCIALS Total Assets (USD Mn) Total Equity of the owners of the Parent Company (USD Mn) 650 2,141 575 1,960 553 564 503 1,621 1,371 1,117 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Attributable Net Profit (USD Mn) Return on Equity (ROE) 241 43% 171 25% 115 116 20% 21% 95 19% 2018 201
Slide 27: EBITDA & Debt Overview
EBITDA & DEBT OVERVIEW Attributable EBITDA (In ‘000 USD) FY 2021 FY 2022 Fertilizers and Petrochemicals 127,550 224,953 Energy & Energy Related 87,856 90,292 Diversified 84,866 72,871 Attributable EBITDA 300,272 388,115 Net Debt (Cash) (In ‘000 USD) FY 2022 Long-term interest-bearing debt 413,465 Sh
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 Mr. Medhat Bonna Mr. Khaled El- Eng. Sherif El Zayat Chief Human Resources Group Chief Financial Demerdash Chief Executive Officer & Communication Officer Group Legal Counsel Officer Mr. Alaa El Banna Mrs Angie Helmi Mr. Ahmed Boghdady Mr. Hany Ezzat Senior Sector H
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