Valmore Holding · EGX:VLMR
Valmore — Egypt Kuwait Holding — Q3 2022 Earnings Presentation
34 slides from Valmore's earnings presentation, December 2022
Slide 1: Integrated Investments Generating Superior Returns
Integrated Investments Generating Superior Returns Investor Presentation 3Q 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
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 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 > 6,000 Professionals employed Petrochemicals, by the holding company 44% 53% fertilizers, gas 326 and its subsidiaries 833 849 distribution, electricity 300 generation & 563 603 590 distributi
Slide 8: Growth Drivers
GROWTH DRIVERS
Slide 9: 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 9M 2022: 34% 10th of Ramadan over 88,000 m2. 43% 2,811 2,632 49% 100% +50 countries 2,086 1,993 1,963 958 Effective EKH Ownership Export Destina
Slide 10: 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 2Q 2022 Production Additional
Slide 11: 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 9M 2022: 37% Nubaria, Kahraba and Gas Chill. 17% 2,201 2,020 > 1.9 mln > 11,800 1,819 1,593 1,859 14% Households served by Commercial Clients 1,393
Slide 12: 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 13: 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 14: 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 9M 2022: 63% area of 108,000 m2. 94% 380 164% 650 ktpa 180 ktpa 239 Urea Production ammonium sulphate 280 85% Capacity capacity 188 195 194 195
Slide 15: 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. 1% 59 10% 5+3 50 mmscf/day 55 41 42 35 44 44 44 34 Operative wells + 3 daily production 3Q 22 38 30 31 newly drilled wells -8% -7% 14 13 10 9 US$ 74 mln 100%
Slide 16: Offshore North Sinai Concession: Overview 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 17: Offshore North Sinai Concession: Production Facilities
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 17
Slide 18: 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 49% 186 ▪ Leading Life, Property & Casualty Insurance Company ▪ Delta Insurance is currently among th
Slide 19: 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. 15% 46% 34,430 3,850 Bedayti Q3 2022 Performance CAGR: 32.8%
Slide 20: Non Banking Financial Services: Bedayti
Non Banking Financial Services: Bedayti Egypt Kuwait Holding | Investor Presentation 20
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 c. EG
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) Returns Adjusted for Dividends EKHO Share on EGX and EGX 30 Index Share Information ▪ Number of Shares: 1.126 bln ▪ Market Cap as of 13th Dec 2022: US$ 1.52 bln (EGP 36.58 bln) ▪ EKH ranked 4th largest company by Market Cap on EGX +350% EGX 30 74% Return
Slide 26: 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 +349% Kuwait All Share Price Index Returns +109% ▪ 2016-2022: EKHOLDIN up 349% vs 109% for
Slide 27: EKH's Financials
EKH’S FINANCIALS Total Assets (USD Mn) Total Equity of the owners of the Parent Company (USD Mn) 2,166 2,143 674 653 651 575 553 1,621 1,620 503 1,371 1,117 2018 2019 2020 2021 9M 2021 9M 2022 2018 2019 2020 2021 9M 2021 9M 2022 Attributable Net Profit (USD Mn) Return on Equity (ROE)* 37% 207 171 25
Slide 28: EBITDA & Debt Overview
EBITDA & DEBT OVERVIEW Attributable EBITDA (In ‘000 USD) 9M 2021 9M 2022 Fertilizers and Petrochemicals 92,809 95,398 Energy & Energy Related 65,253 68,542 Diversified 54,277 66,346 Attributable EBITDA 212,339 325,683 Net Debt (Cash) (In ‘000 USD) 9M 2022 Long-term interest-bearing debt 419,741 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. 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) Mrs. Heba Nasser Al Sheikh Mubarak Abdulla Eng. Ibrahim Mahlab
Slide 31: Management Team
MANAGEMENT TEAM Mr. Ayman Laz Mr. Medhat Bonna Mr. Khaled El- Eng. 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 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: 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