Valmore Holding · EGX:VLMR
Valmore — Egypt Kuwait Holding — Q1 2022 Earnings Presentation
35 slides from Valmore's earnings presentation, May 31, 2022
Slide 1: Integrated Investments Generating Superior Returns
Integrated Investments Generating Superior Returns Investor Presentation Q1 2022
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
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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 adding 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 Delta Insurance Petrochemicals Plant NatEnergy Life, Property & Casualty Gas Distribution and Electricity Insurance Effective EKH Ownership Generation & Distr
Slide 7: EKH at a Glance
EKH AT A GLANCE Recurring Revenues in US$ mln Recurring Attributable EBITDA in US$ mln 6 strategic sectors > 5,500 professionals employed 833 EBITDA margin Q1 2022: 51% petrochemicals, by the holding company fertilizers, gas and its subsidiaries distribution, electricity 603 generation & 563 distrib
Slide 8: Recent Developments
RECENT DEVELOPMENTS Board of Directors Microfinance Subsidiary ‘Bedayti’ commences operations The Board of Directors appointed Mr. Loay Jassim Al Kharafi as chairman after Mr. Moataz Al-Alfi Following the receival of FRA approval in 2021, stepped down, with Mr. Adel Al-Alfi assuming EKH’s microfinan
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 EBITDA margin Q1 2022: 41% 10th of Ramadan City over 88,000 m2. 2,632 100% 50 countries 1,993 1,625 16% 742 Effective EKH ownership Export Destinations 43% 59
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 Q1 2022: 38% Nubaria, Kahraba and Gas Chill. 2,201 2,020 1,819 > 1.8 mln > 11,600 Households served by Commercial Clients 831 25% 714 722 NATGAS &
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 plants with an installed capacity of 115 MW in Borg Al-Arab Industrial Zone in Kahraba’s Actual Electricity Distribution Volume Alexandria, in addition to 2 smaller power (milli
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 Q1 2022: 62% 280 area of 108,000 m2. 650 ktpa 180 ktpa 195 194 90% Urea Production ammonium sulphate 140 191% 124 Capacity capacity 66 77 65 65
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. EBITDA margin Q1 2022: 80% 59 55 5+3 50 mmscf/day 44 Operative wells + 3 daily production Q1 12% 41 42 34 28% newly drilled wells 2022 14 15 10 12 US$ 74 mln
Slide 17: ONS: Overview of Concession and CAPEX Plan
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: ONS Production Facilities and Kamose Project
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 Recurring Attributable Net Profit in EGP mln its insurance subsidiaries over the last 4 years. 171 Delta Insurance Leading Life, Property & Casualty Insurance Company 26 Delta Insurance is currently among the
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 EKH‘s fully owned microfinance subsidiary Bedayti 12% 43% started operations in Q1 2022. 3,492 3,566 28,892 Bedayti Q1 2022 Performance 27,055 3,114 3,166 3
Slide 21: Non Banking Financial Services: Bedayti
Non Banking Financial Services: Bedayti Egypt Kuwait Holding | Investor Presentation 21
Slide 22: 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 1,
Slide 23: Nile Wood – MDF Production Process
Nile Wood – MDF PRODUCTION PROCESS Chipping Line Refining Glueing Egypt Kuwait Holding | Investor Presentation 23
Slide 24: Nile Wood – MDF Production Process
Nile Wood – MDF PRODUCTION PROCESS Forming Line Press System Sanding Line Cutting Line Egypt Kuwait Holding | Investor Presentation 24
Slide 25: Shareholder Returns & Financial Highlights
SHAREHOLDER RETURNS & FINANCIAL HIGHLIGHTS Egypt Kuwait Holding | Investor Presentation 25
Slide 26: 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 30th May 2022: US$ 1.503 bln (EGP 27.516 bln) EKH ranked 5th largest company by Market Cap on EGX on 30th May 2022 +40
Slide 27: 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: 469.1 mln +406.8% Kuwait All Share Price Index Returns* +112.6% 2016-2022: EKHOLDIN up 406.8% vs 1
Slide 28: EKH's Financials
EKH’S FINANCIALS Total Assets (USD Mn) Total Equity of the owners of the Parent Company (USD Mn) 2,166 2,145 678 1,688 575 553 555 569 1,621 503 1,371 1,117 2018 2019 2020 2021 Q1 2021 Q1 2022 2018 2019 2020 2021 Q1 2021 Q1 2022 Attributable Net Profit (USD Mn) Return on Equity (ROE)* 36% 171 25% 21
Slide 29: EBITDA & Debt Overview
EBITDA & DEBT OVERVIEW Attributable EBITDA (In ‘000 USD) Q1 2021 Q1 2022 Fertilizers and Petrochemicals 30,657 65,718 Energy & Energy Related 20,938 25,550 Diversified 12,846 21,752 Attributable EBITDA 64,440 113,019 Net Debt (Cash) (In ‘000 USD) Q1 2022 Long-term interest-bearing debt 499,126 Short
Slide 30: Appendix 1: Management Team, Board Members, Timeline & Corporate Citizenship
APPENDIX 1: MANAGEMENT TEAM, BOARD MEMBERS, TIMELINE & CORPORATE CITIZENSHIP Egypt Kuwait Holding | Investor Presentation 30
Slide 31: Board of Directors
BOARD OF DIRECTORS Mr. Loay Jassim Al- Mr. Adel Al-Alfi Mr. 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) Eng. Amin Abaza Mr. Ibrahim Mahlab Mr. Saad Al-Saad Mr. Hussein
Slide 32: Management Team
MANAGEMENT TEAM Mr. Ayman Laz Mr. Medhat Bonna Mr. Khaled El- Mr. Sherif El Zayat Advisor to the Chairman Group Chief Financial Demerdash Chief Executive Officer and CEO Officer Group Legal Counsel Mr. Tamer Badrawi Mr. Ahmed Boghdady Chief Human Resources Mrs Angie Helmi Mr. Hany Ezzat Sector Head
Slide 33: 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 34: 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 35: Contact
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