Valmore Holding · EGX:VLMR
Valmore — Egypt Kuwait Holding — Q3 2021 Earnings Presentation
34 slides from Valmore's earnings presentation, November 2021
Slide 1: Integrated Investments Generating Superior Returns
Integrated Investments Generating Superior Returns Investor Presentation 3Q 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 29% petrochemicals, 603 by the holding company 563 590 fertilizers, gas and its subsidiaries distribution, electricity 480 457 generation & 43% distribution, upst
Slide 8: Recent Developments
RECENT DEVELOPMENTS Trading on EKH’s shares in EGP on Increased EKH’s Ownership in Delta EGX Insurance Trading on EKH’s EGP dominated shares began EKH increased its stake in Delta Insurance to on Sept 19th 2021 with 68.4% of Shareholders 63.2% in 3Q 2021 from 61.05% in 2Q 2021. opting to convert the
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 EBITDA in EGP mln State of the art Petrochemicals plant located in 49% EBITDA margin H1 2021: 36% 10th of Ramadan over 88,000 m2. 2,049 2,086 1,993 1,963 > 85% +38 countries 1,625 1,319 41% Market Share in Egypt Export Destin
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 1,554 1,593 14% Households served by Commercial Clients 16% 714 72
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 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 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 105 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 34% EBITDA margin 9M 2021: 46% area of 108,000 m2. 188 195 194 195 177 650 ktpa 180 ktpa 145 86% 16% 91 Urea Production ammonium sulphate Capacity capacity 60
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. 5% 55 44 42 44 5+3 50 mmscf/day 38 2% 41 Operative wells + 3 daily production 2Q 21 34 32 31 newly drilled wells 30 13 14 10 10 US$ 74 mln 100% CAPEX spent i
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 & Mohandes
Insurance: Delta & Mohandes Significant increase in attributable net profit to EKH from Attributable Net Profit in EGP mln its insurance subsidiaries. + 37% Y-o-Y 133 Delta Insurance Growth ▪ Leading Life, Property & Casualty Insurance Company 21 ▪ In 2019, EKH increased its stake in Delta Insurance
Slide 20: Non Banking Financial Services: Bedayti
Non Banking Financial Services: Bedayti Total Micro Finance Loans EGP mln Number of Microfinance Loan Beneficiaries ‘000 Bedayti Microfinance ▪ In Q1 2021, EKH established Bedayti to be positioned as 44% 8% 23,560 a leading microfinance company in Egypt. 3,368 ▪ Bedayti has obtained the initial lice
Slide 21: Nile Wood
Nile Wood Forest 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 another 3,
Slide 22: Nile Wood – MDF Production Process
Nile Wood – MDF PRODUCTION PROCESS Chipping Line Refining Glueing Egypt Kuwait Holding | Investor Presentation 22
Slide 23: Nile Wood – MDF Production Process
Nile Wood – MDF PRODUCTION PROCESS Forming Line Press System Sanding Line Cutting Line 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 EKHO Share on EGX and EGX 30 Index Share Information ▪ Number of Shares: 1.126. bln ▪ Market Cap as of 9thth November 2021: US$ 1.5 bln (EGP 23.3 bln) +296.7% Returns* EGX 30 ▪ 2016-2021: EKHO up 296.7% vs 23.1% for
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 +336.0% MSCI Returns* Kuwait All Share ▪ 2016-2021: EKHOLDING up 336% vs 91.4% for
Slide 27: EKH's Financials
EKH’S FINANCIALS Total Assets (USD Mn) (1) Total Equity Book Value (USD Mn) (1) 2,288 869 2,076 764 740 1,858 1,750 724 1,679 1,673 651 1,603 1,528 1,621 569 562 575 531 522 553 1,371 479 503 974 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) 9M 2020 9M 2021 Fertilizers and Petrochemicals 50,985 92,809 Energy & Energy Related 61,669 65,253 Diversified 35,393 54,277 Attributable EBITDA 148,047 212,339 Net Debt (Cash) (In ‘000 USD) 9M 2021 Long-term interest-bearing debt 446,379 Shor
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. Moataz Al-Alfi Mr. Ayman Laz Mr. Medhat Bonna Mr. Sherif El Zayat Chairman Advisor to the Chairman Group Chief Financial Chief Executive Officer and CEO Officer Mr. Tamer Badrawi Mr. Khaled El- Chief Human Resources Demerdash Mrs Angie Helmi Mr. Hany Ezzat & Communication Group L
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, Tarek Yehia contacts
Angie Helmi Tarek Yehia Chief Investment Officer Investor Relations Director Telephone : +202-3363300 Telephone : +202-3363300 Fax : +202-3358989 Fax : +202-3358989 E-mail : [email protected] E-mail : [email protected] : [email protected] Website : www.ekholding.com Website : www.ekholding