Slide 1: Forty Years: Weaving the Threads of Innovation – Earnings Presentation
Squall agebuill OrientalWeavers ———==_ J ; Forty Years Weaving the Threads of Innovation 2 Earnings Presentation
Slide 2: Oriental Weavers International Facility
Oriental Weavers International Facility
Slide 3: Group's Key Milestones
Brief Profile M t Nv xpor rogress Fina Perform E WW Subs i L Group’s key Milestones — 1979 * Setting up Oriental Weavers and MAC + 1981-87 . -..tabiishment of Egyptian Fibers Co. (EFCO) * Opening of the OW showroom in the USA 1991-92 _ «Establishment of Sphinx, the U.S. distribution arm * Opening of
Slide 4: Oriental Weavers in Numbers
Brief Profile Oriental Weavers in Numbers EGP 10.4 bn World Largest producer by volumes Record Turnover in 2018 Oriental Weavers F 85% in Numbers Export contribution in 2Q 2019 Market share in Egypt c. 80% Utilization rate Backlog of export incentives * SLIDE 4
Slide 5: Main Segments of OW
Brief Profile Main segments of OW Description Subsidiaries % of Revenues Tax rate Capacity mn sqm (Dec 2018) *Capacities vary by grade ven Surface yarn is woven simultaneously with the backing. Then a latex com- pound is added. OW! & ow owc OwT OWUSA China 32% 23% 23% 1% 22.5% Exempted 25% 17% 21 44
Slide 6: A Vertically Integrated Business Model
Brief Profile Market Overviev x Local Progres Fin ai Performanc Cost Breakdown Capex Export Subsidi % [ A Vertically Integrated Business Model ogi OrientalWeavers ental Weavers has complete c | over the manufacturing process. Raw material procurement : The wool is sourced from suppliers in Egypt, Ne
Slide 7: Positive Triggers for OW
Market Overview Positive triggers for OW 1 The US Tit for Tat tariffs on imports from China should open more room for growth. Pending export subsidy collection (EGP 546 million). * SLIDE 7
Slide 8: Global Macro Fundamentals
Market Overview = Export/Loc >rogress rcial Performa t 2 w Car Export Su 4 | Global Macro Fundamentals oailogla OrientolWeavers es ee ee er © US economy continues to move , Paar 7 forward, albeit at a slower rate in the © Slower path of growth in ¢ Strong potential in African second half of 2019. Eu
Slide 9: Global Carpets & Rugs Market
Ogyipfillagealusll OrientalWeavers Global Carpets & rugs market by value (USD bn) Global Carpets & rugs market by bn sqm (5 yr CAGR) © North America: 2.6% IB Europe: 1.1% @ Asia & pacific: 3.2% B others: 3.8% 5 year CAGR 4.1% 5 year CAGR 2.6% 2016 2021 2016 2021 Source: Freedonia group Source: Freed
Slide 10: US Carpet Market
=== Carpet Market THE UNITED STATES IS THE SINGLE LARGEST MARKET FOR CARPETS FEW COMPANIES CONTROL LARGE US FLOOR COVERING MARKET SALES VOLUME Ranvarnaes “ (TOTAL: 2 BILLION SQM) ne { { BIGGEST ONES ARE } } 4 BASED IN GEORGIA CARPET&AREA Y RUGS 53% BEAULIEU ‘ 1 1 BILLION SQUARE FEET OF . 3% 1S PROJE
Slide 11: European Carpet Market in 2016
Market Overview = Exp: European Carpet Market In 2016 — DEMAND BRINTONS 9 Ea 698 Qe inne MILLION METERS? 39% - NI LANDS NON- RESIDENTIAL BUILDING 9 o— - DESO | CARPET DEMAND BY SECTOR 55% RESIDENTIAL BUILDING 6% OTHERS — = og fa) El ae fa CR 0 40 p_—_& FRANCE iia PROJECTED GROWTH OF THE EU CARPET MA
Slide 12: Demand Drivers in Egypt
Market Overview = Ex, cal Progre Financial Performance Cost Breakdow Capex Export Subsidies : [_ Demand Drivers in Egypt —— A GDP is expected to grow by 5-6% annually up to Gi 2020 as per the IMF. Sizeable youth population 50% of the Egyptian population are near the marriage with around one million
Slide 13: 2Q 2019 Revenue Summary
Export/Local Progress 2Q 2019 Revenue Summary Value (EGP million) Volume (sqm) 2Q 2019 2Q 2018 % Change 2Q 2019 2Q 2018 % Change Woven- abs 4,494 4,488 0% 14.0 13.9 1% OWUSA 589 511 15% 3.7 27 35% OW China 21 30 -29% 0.2 0.4 -43% Tufted 419 391 7% 75 i 5% Non-woven Felt 94 71 33% 4.2 3.4 25% Other 1
Slide 14: 1H 2019 Revenue Summary
Export/Local Progress 1H 2019 Revenue Summary Value (EGP million) Volume (sqm) 1H 2019 1H 2018 % Change 019 1H 2018 % Change Faire 2,904 2,952 2% 27 28 2% Ow USA 1,195 1,032 16% 7.4 5.6 31% OW China 36 46 -21% 0.4 0.5 -32% Tufted 856 818 5% 15 15 6% Non-woven Felt 188 144 31% 9 7 16% Other 57 41 38%
Slide 15: Export Market Development – Performance by Region in 2Q 2019
Export/Local Progress = Financial Performance Cost Breakdow Capex Export Subsidies | Export Market development — Performance by region in 2Q 2019 A 11% es, Revenue Breakdown by region in 2Q 2019 Asia Arabregion Africa Europe Egypt Americas (local sates * SLIDE 15
Slide 16: Export Market Development in 1H 2019
Export/Local Progress = Financial Pert Export Market Development in 1H 2019 A Pri Percentage A Volume Value race ee en 1H Volume 1H Value 2Q 2019 2Q2018 Woven 4 9% 4 4% v4% 78% 80% A 2% Vv 1% Tufted A 18% 412% v5% 19% 18% 415% A 6% Non-woven Felt 4 43% A 44% A1% 3% 2% 479% A 55% Total 414% 47% Vv 6%
Slide 17: Export Performance Overview
Export/Local Progress = Fin) al Performan Cost Break Capex Export Subside % Export performance overview spall OrientalWeavers Export revenues (EGPbn) Export vs. Local Revenue volume % Export volumes (mn sqm) 9 Export © Local ah oy 2014 2015 2016 2017 2018 2015 2016 2017 2018 2014 2015 2016 2017 2018
Slide 18: Longstanding Relationship with Major Customers
Export/Local Progress —_ Financial Performance Cost Breakdown Capex Export Subsidies & | Longstanding relationship with major customers Seneblogelad OrientalWeavers =a oa ee a ot a * SLIDE 18
Slide 19: International Hospitality Segment
Brief Profile | Market Overview — Export/Local Progress —_ Financial Performanc Cos' wr x XP dies Pa ae International Hospitality segment recorded ssutllogolal OrientalWeavers OW completed a number of projects including: e@ OWcompleted a number of projects in the US including Renaissance Montgomery,
Slide 20: Local Market Development in 1H 2019
Export/Local Progress Fir Local Market Development in 1H 2019 Percentage A Volume Value Average Price Contribution to Export 1H Volume 1H Value Revenues 2Q 2019 2Q 2018 Woven A 2% A 3% A1% 83% 82% A4% 4 5% Tufted Vv 26% 46% 427% 11% 11% VY 16% a 1% Non-woven Felt 4 19% A 25% A5% 5% 4% y 6% A 13% Oth
Slide 21: Local Market Overview
Export/Local Progress Financial Performance Cost Breakdown Capex Export Subsid : LL Local Market Overview inpigtal Growing Local revenues (EGPbn) Local Sales volume (mn sqm ) o yr (N a > a & Aa za { | { | 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 ¢ SLIDE 21
Slide 22: Revenue Progress
Export/Local Progress Revenue progress Revenues Sales volumes ( EGPbn ) (mn sqm ) O Export °o Local © Export o Local 10.4 111 117 115 114 3.7 5.8 6.8 10.2 47 46 6.7 68 68 2015 2016 2017 2018 2015 2016 2017 =. 2018 3 -Year ( GAGR 21% ) © SLIDE 22
Slide 23: Diversified Product Mix
Export/Local Progress = Fina’ Diversified Product Mix 20 2019 Revenue Mix (by volume) 20 2019 Revenue Mix (by volume) 20 2019 Revenue Mix (by value) Ow china -@ OW USA Woven-Grade A ———= EGP290/sqm Tufted wall-to-wall = EGP48sqm Woven-Grade B ————= EGP130/sqm Tufted pieces —— EGP58/sqm Woven-Grade €
Slide 24: Cost Breakdown
Cost Breakdown Capex xport Subsidies OgyBpilog-luatll OrientalWeavers 2) Polyproplene-Nylon el! sre) Beck Others || 15% Selling Deprectiation / Vd > 8% ) Finishing Material 10% Wages ae re Source: Company = Almost 63% of costs are dollar based. 4% * SLIDE 24
Slide 25: PP Prices
Cost Breakdown OX Expo ibsidies i 20 2019 Cost Breakdown Suployal PP Prices ( USD/ton ) ( USD/Ton ) 990 1,363 1,629 1,456 1,585 1,584 1,218 993 1,130 1,275 1,143 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 © SLIDE 25
Slide 26: Capex: Capacity Additions
Woven Tufted Non-woven 13 looms added increasing production capacity by 6% MAC penetrated the artificial turf segment following the addition of two new machines Two new machines added 017 * Establishing a new factory * 10 new looms * One Heatset yarn machine * 4new goblin looms * 9new looms » 2yarn
Slide 27: Financial Summary
Financial Performance Financial Summary a ane EBITDA Performance ( EGPmn) Net Income Performance Net Debt (EGPmn) Net income © EBITDA Bie: m4 © Net debt (EGP billion) © Net margin © EBITDA margin © Net debvEBITDA 16.5% — 44,99% 71% 6.7% 1.2x = . By 13.8% 1.1% . 10.8% = 4.8% 0.7x 6.1% 1.0 : 683 2015
Slide 28: Energy Cost
gudpillogolull OrientalWeavers Energy cost Natural gas (Us$/mmbtu) 2.25 5 5 5 5 5 eee 0.28 0.435 0.53 0.69 0.99 11 11% Transportation costs 11 1.80 2.35 3.65 5.5 6.75 23% (EGP Diesel /Liter) * Energy cost represents less than 4% of the company’s total cost * SLIDE 28
Slide 29: Export Subsidies
Export Subsidies Export Incentive Program: @ EGP 546 mn delayed disbursement till July 2019 @ OW collected EGP 93 mn in 1H 2019 Export Cash Documents Submitted Export Subsidies to Export % Of Exports in EGP proceeds Subsidy Fund * SLIDE 29
Slide 30: Export Subsidies: New Export Incentive Program
Export Subsidies Export Incentive Program The Government to launch a new Export Incentive Program soon 1 Currently, the Ministry of Trade & Industry is preparing a new export incentive program for implementation retroactively on July 1st, 2019, replacing the current program. 2 The Egyptian Prime Min
Slide 31: Share Data
Share Data ¢ 443.4 mn shares at par value of EGP 1 per share. e Issued and Paid-in Capital EGP 443.4 mn. e Listed in EGX since September 1997. e 3 Month average daily value EGP8.3mn. e Market Cap USD 292 mn (as of Aug 8, 2019). e 2018 DPS of EGP1.5. e Reuters; Bloomberg ORWE.CA; ORWE EY. Shareholder
Slide 32: Disclaimer
Disclaimer Certain information contained in this document consists of forward-looking statements re ecting the current view of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achiev
Slide 33: For More Information, please contact
For More Information, please contact ota ase Ingy El-Diwany, CFA Investor Relations Manager ( +202-22685166 ieldiwany@orientalweavers.com © www.orientalweavers.com * SLIDE 32