Valmore Holding · EGX:VLMR
Valmore — Egypt Kuwait Holding — 9M 2024 Earnings Presentation
35 slides from Valmore's earnings presentation, November 2024
Slide 1: Integrated Investments Generating Superior Returns
Integrated Investments Generating Superior Returns Investor Presentation 9M 2024 November 2024
Slide 2: EKH Overview
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Slide 3: Strategic Approach
STRATEGIC APPROACH Create shareholder value through Leverage expertise and track record Enter new sectors and industries to active recycling of capital to competitively grow international unlock new opportunities for growth footprint Optimize current portfolio to Maximize synergies between portfolio
Slide 4: Sectors and Portfolio Companies
SECTORS AND PORTFOLIO COMPANIES Chemicals Building Materials Utilities Energy Financials Oil & Gas Natural Gas Fertilizers MDF Exploration & Insurance Distribution Production Electricity Oil & Gas Petrochemicals Cement Production & Storage & Microfinance Distribution Transportation Consumer District
Slide 5: 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 Gas Distribution and Electricity Life, Property & Casualty Insurance Generation & Distribution Effective EKH Ownershi
Slide 6: EKH at a Glance
EKH AT A GLANCE Revenues in USDmn Attributable EBITDA in USDmn 6 strategic sectors +7,900 Professionals employed Petrochemicals, by the holding company fertilizers, gas and its subsidiaries 1,104 distribution, electricity 388 generation & 833 320 801 300 distribution, upstream oil & gas and non- 603
Slide 7: Recent Developments
RECENT DEVELOPMENTS Continued Improvement in Urea NOSPCO Awarded Approval to Prices Extend Concession by an additional Urea prices rebounded following the recent 10 Years drop observed during 2Q24 , which saw global The Egyptian Petroleum Corporation (EGPC) has prices fall to an average of USD302/to
Slide 8: Growth Drivers
GROWTH DRIVERS
Slide 9: AlexFert
ALEXFERT Established by EKH in 2003, Alexandria Fertilizers Revenues in USDmn Attributable EBITDA in USDmn Company “AlexFert” operates a state-of-the-art EBITDA margin 9M24: 42% 110,000 m2 fertilizer facility in Alexandria, Egypt. 268 640 ktpa 180 ktpa 486 Urea production Ammonium sulphate capacity
Slide 10: Sprea Misr
SPREA MISR Founded in 1989 and acquired by EKH in 2007 Revenues in USDmn EBITDA in USDmn A state of the art downstream petrochemicals EBITDA margin 9M24: 38% production facility located in 10th of Ramadan over 103k m2. 100% +50 countries 168 203 68 161 57 57 Effective EKH ownership Export destinatio
Slide 11: Sprea Misr (EGP)
SPREA MISR Founded in 1989 and acquired by EKH in 2007 Revenues in EGPmn EBITDA in EGPmn A state of the art downstream petrochemicals EBITDA margin 9M24: 38% production facility located in 10th of Ramadan over 103k m2. 100% +50 countries 4,913 4,273 2,061 3,903 3,887 Effective EKH ownership Export d
Slide 12: Sprea Misr Recent Developments
SPREA MISR Recent Developments Dry SNF Powder & Liquid Glue Formaldehyde Line Capacity Additional 15 KTPA to reach 30 Capacity Powder Glue: Additional 10 KTPA Capacity Additional 50 KTPA KTPA to reach 34 KTPA Liquid Glue: Additional 56 KTPA to Production 1Q24 reach 121 KTPA Production 4Q23 Start Dat
Slide 13: Sprea Misr Operational Overview
SPREA MISR Operational Overview Sulfuric Acid • Formaldehyde • Phenol FD Resin & Urea Liquid Sulfonated Melamine FD Liquid Urea Formaldehyde Resin Naphthalene Melamine Molding Formaldehyde •• Compound ••• •• •• •• Impregnated Kraft Impregnated Urea Molding Novolac Powder Glaze Urea FD Liquid Glue Pa
Slide 14: NatEnergy
The largest private sector operator of natural gas pipelines in the MENA region. NATENERGY Developed, installed, and currently operating and maintaining over 14,500km of pipelines NatEnergy is a holding company with ownership Revenues in USDmn Attributable EBITDA in USDmn stakes in 5 subsidiaries in
Slide 15: NatEnergy (EGP)
The largest private sector operator of natural gas pipelines in the MENA region. NATENERGY Developed, installed, and currently operating and maintaining over 14,500km of pipelines NatEnergy is a holding company with ownership Revenues in EGPmn Attributable EBITDA in EGPmn stakes in 5 subsidiaries in
Slide 16: 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 17: NatEnergy: Kahraba
NATENERGY: KAHRABA Kahraba owns and operates two central power One of Kahraba’s Power Generation Plants In Borg El Arab generation plants with an installed capacity of 135 MW in Borg Al-Arab Industrial Zone in Kahraba’s Actual Electricity Distribution Volume Alexandria and 2 smaller Independent powe
Slide 18: Offshore North Sinai Concession (ONS)
OFFSHORE NORTH SINAI CONCESSION (ONS) 443 km2 concession located 56 Km offshore of Revenues in USDmn EBITDA in USDmn Port Said. Facilities include pipeline to shore + EBITDA margin 9M24: 81% processing facilities (Romana) 59 61 58 5 50 MMSCFD 55 44 41 42 47 47 44 36 Operative wells daily production
Slide 19: Insurance: Delta & Mohandes
Insurance: Delta & Mohandes Significant increase in attributable net profit to EKH from Recurring Attributable Net Profit in EGPmn its insurance subsidiaries over the last 4 years. Delta Insurance ▪ Leading life, property & casualty insurance company 46% 353 ▪ Delta Insurance is currently among the
Slide 20: Non Banking Financial Services: Bedayti
Non Banking Financial Services: Bedayti Bedayti Microfinance Egypt’s Total Microfinance Loans EGPmn No. of Microfinance Loan Beneficiaries in Egypt ‘000 ▪ EKH‘s fully owned microfinance subsidiary Bedayti 28% commenced operations in 1Q22. CAGR: 35.3% 43,900 3,940 3,850 3,820 Bedayti 2024 Performance
Slide 21: 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 cEGP3
Slide 22: Shareholder Returns & Financial Highlights
SHAREHOLDER RETURNS & FINANCIAL HIGHLIGHTS Egypt Kuwait Holding | Investor Presentation 22
Slide 23: EKH Shares
EKH Shares EKH is listed on the Egyptian Stock Exchange and on Boursa Kuwait. On EGX shares trade under 2 tickers: ▪ 342 mn Share traded in Egyptian Pound EKHOA.CA ▪ 202 mn Share traded in US Dollar EKHO.CA On Boursa Kuwait Shares trade under 1 ticker: ▪ 583 mn Shares trade in Kuwaiti Dinar EKHOLDIN
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 ▪ Market Cap as of 30 September 2024: USD906mn (EGP44.0bn) ▪ Total number of shares listed on both EGX & Boursa Kuwait : 1,126mn ▪ Number of shares listed on EGX : 544mn
Slide 25: Share Performance & Shareholder Returns (Boursa Kuwait)
Share Performance & Shareholder Returns (Boursa Kuwait) Returns Adjusted for Dividends EKHOLDIN Share on Boursa Kuwait and Boursa Kuwait Indices Share Information ▪ Market Cap as of 30 September 2024: USD906mn (EGP44.0bn) ▪ Total number of shares listed on both EGX & Boursa Kuwait : 1,126mn ▪ Number
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 1,960 553 564 1,746 503 1,621 472 1,371 1,465 1,117 346 2018 2019 2020 2021 2022 2023 9M24 2018 2019 2020 2021 2022 2023 9M24 Attributable Net Profit (USD Mn) Return on Equity (ROE) 241
Slide 27: EBITDA & Debt Overview
EBITDA & Debt Overview Attributable EBITDA (In ‘000 USD) 3Q24 3Q23 Fertilizers and Petrochemicals 22,224 29,257 Energy & Energy Related 17,569 25,996 Diversified 3,259 27,566 Attributable EBITDA 43,052 82,819 Net Cash (Debt) 9M24 Long-term interest-bearing debt (366,207,806) Short-term interest-bear
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 Mr. Jon Rokk 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) Sheikh Mubarak Abdulla Mr. Talal Jassim Al- Mr. Saad Al-Saad Mr. Hussei
Slide 30: Management Team
MANAGEMENT TEAM Mr. Tamer Badrawi Mr. Jon Rokk Mr. Medhat Bonna Mr. Khaled El- Chief Human Resources Chief Executive Officer Group Chief Financial Demerdash & Communication Officer Group Legal Counsel Officer Mr. Wael El Hatow Mr. Hany Ezzat Mr. Hany Azzam Mr. Mohamed Wafaei Chief Investment Officer
Slide 31: Key Milestones
Key Milestones 1997 1998 1999 2001 2002 2003 2004 2005 2006 2007 ▪ Established ▪ NATGAS started ▪ Listing on ▪ Acquired majority ▪ Established ▪ Increased Stake in ▪ Divested stake ▪ Alex Fert ▪ Capital Increase of ▪ EKH Established NATGAS with operation Boursa Kuwait stake in Egyptian Alexandria De
Slide 32: Key Milestones
Key Milestones 2021 2021 2022 2023 cont. ▪ Increased stake in ▪ Delta Insurance ▪ Bedyati starts ▪ Increased stake in AlexFert to 57.4% EGM approv ed oper ations, Alexfert to 75.33% ▪ Secured final FRA capital increase opening 45 ▪ Bedayti adds new approval for Micro- from EGP126mn to branches branc
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
Slide 35: Investor Relations Contact Information
Investor Relations Contact Information Omar Nashaat Investor Relations Director [email protected] (+202)33363300 Maryam Saleh Investor Relations Associate [email protected] (+202)33363300 IR Website: ir.ekholding.com Egypt Kuwait Holding | Investor Presentation 35