Valmore Holding · EGX:VLMR
Valmore — Egypt Kuwait Holding — H1 2024 Earnings Presentation
33 slides from Valmore's earnings presentation, August 2024
Slide 1: Integrated Investments Generating Superior Returns
Integrated Investments Generating Superior Returns Investor Presentation 1H 2024 August 2024
Slide 2: EKH Overview
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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 Gas Distribution and Electricity Life, Property & Casualty Insurance Generation & Distribution Effective EKH Ownershi
Slide 5: EKH at a Glance
EKH AT A GLANCE Revenues in US$ mln Attributable EBITDA in US$ mln 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-
Slide 6: Recent Developments
RECENT DEVELOPMENTS Improvement in Urea Price Outlook NOSPCO Awarded Preliminary Urea prices rebounded following the recent Approval to Extend Concession by a drop observed during Q2 , which saw global Further 10 Years prices fall to an average of US$ 302/ton. Prices EKH received preliminary approva
Slide 7: Growth Drivers
GROWTH DRIVERS
Slide 8: AlexFert
ALEXFERT Established by EKH in 2003, Alexandria Fertilizers Revenues in US$ mln Attributable EBITDA in US$ mln Company “AlexFert” operates a state-of-the-art EBITDA margin 1H 2024: 45% 110,000 m2 fertilizer facility in Alexandria, Egypt. 268 640 ktpa 180 ktpa 486 Urea production Ammonium sulphate ca
Slide 9: Sprea Misr
SPREA MISR Founded in 1989 and acquired by EKH in 2007 Revenues in US$ mln EBITDA in US$ mln A state of the art downstream petrochemicals EBITDA margin 1H 2024: 40% production facility located in 10th of Ramadan over 103k m2. 100% +50 countries 168 203 71 161 57 Effective EKH ownership Export destin
Slide 10: Sprea Misr (EGP)
SPREA MISR Founded in 1989 and acquired by EKH in 2007 Revenues in EGP mln EBITDA in EGP mln A state of the art downstream petrochemicals EBITDA margin 1H 2024: 40% production facility located in 10th of Ramadan over 103k m2. 100% +50 countries 4,918 2,061 3,903 Effective EKH ownership Export destin
Slide 11: 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 Q1 2024 reach 121 KTPA Production Q4 2023 Sta
Slide 12: NatEnergy
The largest private sector operator of natural gas pipelines in the MENA region. NATENERGY Developed, installed, and currently operating and maintaining over 14,000km of pipelines NatEnergy is a holding company with ownership Revenues in US$ mln Attributable EBITDA in US$ mln stakes in 5 subsidiarie
Slide 13: NatEnergy (EGP)
The largest private sector operator of natural gas pipelines in the MENA region. NATENERGY Developed, installed, and currently operating and maintaining over 14,000km of pipelines NatEnergy is a holding company with ownership Revenues in EGP mln Attributable EBITDA in EGP mln stakes in 5 subsidiarie
Slide 14: 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 15: NatEnergy: Kahraba
NATENERGY: KAHRABA ▪ Kahraba owns and operates two central One of Kahraba’s Power Generation Plants In Borg El Arab power generation plants with an installed capacity of 135 MW in Borg Al-Arab Industrial Kahraba’s Actual Electricity Distribution Volume Zone in Alexandria and 2 smaller Independent (m
Slide 16: Offshore North Sinai Concession (ONS)
OFFSHORE NORTH SINAI CONCESSION (ONS) 443 km2 concession located 56 Km offshore of Revenues in US$ mln EBITDA in US$ mln Port Said. Facilities include pipeline to shore + processing facilities (Romana) 59 61 58 5 50 MMSCFd 55 41 42 47 47 Operative wells daily production 2023 30 28 25 23 14 13 12 11
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 46% 353 ▪ Delta Insurance is currently among th
Slide 18: Non Banking Financial Services: Bedayti
Non Banking Financial Services: Bedayti Bedayti Microfinance Egypt’s Total Microfinance Loans EGP mln No. of Microfinance Loan Beneficiaries in Egypt ‘000 ▪ EKH‘s fully owned microfinance subsidiary Bedayti 28% started operations in Q1 2022. CAGR: 35.3% 43,900 3,940 3,850 3,820 Bedayti 2024 Performa
Slide 19: 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 20: Shareholder Returns & Financial Highlights
SHAREHOLDER RETURNS & FINANCIAL HIGHLIGHTS Egypt Kuwait Holding | Investor Presentation 20
Slide 21: EKH Shares
EKH Shares EKH is listed on the Egyptian Stock Exchange and on Boursa Kuwait. On EGX shares trade under 2 tickers: ▪ 350 mln Share traded in Egyptian Pound EKHOA.CA ▪ 215 mln Share traded in US Dollar EKHO.CA On Boursa Kuwait Shares trade under 1 ticker: ▪ 561 mln Shares trade in Kuwaiti Dinar EKHOL
Slide 22: 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 31 st July 2024: US$ 824 mln (EGP 39.8 bln) ▪ Total number of shares listed on both EGX & Boursa Kuwait : 1,126 mln ▪ Number of shares listed on EGX :
Slide 23: 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 31 st July 2024: US$ 824 mln (EGP 39.8 bln) ▪ Total number of shares listed on both EGX & Boursa Kuwait : 1,126 mln ▪
Slide 24: 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 1,439 1,117 316 2018 2019 2020 2021 2022 2023 H1 2024 2018 2019 2020 2021 2022 2023 H1 2024 Attributable Net Profit (USD Mn) Return on Equity (RO
Slide 25: EBITDA & Debt Overview
EBITDA & Debt Overview Attributable EBITDA (In ‘000 USD) Q2 2023 Q2 2024 Fertilizers and Petrochemicals 26,334 24,672 Energy & Energy Related 20,334 15,778 Diversified 14,944 3,534 Attributable EBITDA 62,206 43,985 Net Debt (Cash) H1 2024 Long-term interest-bearing debt (385,452,281) Short-term inte
Slide 26: Appendix 1: Management Team, Board Members, Timeline & Corporate Citizenship
APPENDIX 1: MANAGEMENT TEAM, BOARD MEMBERS, TIMELINE & CORPORATE CITIZENSHIP Egypt Kuwait Holding | Investor Presentation 26
Slide 27: 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 28: 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 29: Key Milestones
Key Milestones 1997 1998 1999 2001 2002 2003 2004 2005 ▪ EKH Established ▪ Established ▪ NATGAS star ted ▪ Listing on ▪ Acquired majority ▪ Established Alexandria Fertilizer Company (A lex ▪ Increased Stake in ▪ Divested stake by prominent NATGAS with oper ation Boursa Kuwait stake in Egyptian Fert)
Slide 30: 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 31: 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 32: 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 33: Omar Nashaat, Investor Relations Director
Omar Nashaat Investor Relations Director Telephone : +202-3363300 Fax : +202-3358989 E-mail : onashaat@ekholding.com : ir@ekholding.com Website : www.ekholding.com Egypt Kuwait Holding | Investor Presentation 33