Slide 1: 4Q 2018 Earnings Presentation
Slide 2: Oriental Weavers International Facility
Ligyipill geal OrientalWeavers “en ; Ms je q "an “te, | oem wa foiga es tal a SoHE Ba ns | tel ee eee * Ee p ify BIR 5 5 PB "Oe by foie mF =. Oriental Weavers International Facility
Slide 3: Group's key Milestones
Group’s key Milestones pose are 1981 * Establishment of Oriental Weavers & MAC 1987 F * Establisment of Egyptian Fibers Co. (EFCO) * Opening of the first OW showroom in the USA 1992 * Establisment of Sphinx, the US distribution arm * Opening of the OW showroom in Atlanta 1998 * Establishment of a ma
Slide 4: Oriental Weavers in Numbers
Oriental Weavers in Numbers oalogelal EGP 10.4 bn World Largest producer by volumes Record Turnover in 2018 Oriental Weavers z 85% in Numbers Export contribution in 4Q 2018 Market share in Egypt c. 80% EGP 490 mn Utilization rate Backlog of export incentives * SLIDE 4
Slide 5: Main segments of OW
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 compound is added. Owl & ow owe OWT OWUSA China 32% 27% 20% 1% 22.5% Exempted 25% 17% 21 44 NA 3.4 Tuf The
Slide 6: A Vertically Integrated Business Model
Brief Profile Market Overviev xport/Local Progress Financial Performance Cost Breakdown _ Capex Export Subside & [ A Vertically Integrated Business Model inligal OrientalWeavers ental Weavers has complete c | over the manufacturing process. Raw material procurement : The wool is sourced from supplie
Slide 7: Global Macro Fundamentals
Market Overview = Export/Lo rogress ancial Perf anc Cost Breakdow Capex Export Subsid & Global Macro Fundamentals dalla eee ee ee ® US economy continues to move "| Sts A forward, albeit at a slower rate in the © Slower path of growth in © Strong potential in African second half of 2019. Europe © bes
Slide 8: Industry overview: Global carpets & rugs market
Market Overview xport/Local Progress ina formanc Cost Bre: wn Capex Export Subside & L Industry overview | Global carpets & rugs market Caeatccvee Global Carpets & rugs market by value (USD bn) Global Carpets & rugs market by bn sqm (5 yr CAGR) ) North America: 2.6% WB Europe: 1.1% BS Asia & pacific
Slide 9: Carpet Market
Ugydipiill ugobuill OrientalWeavers Carpet Market THE UNITED STATE ARE THE SINGLE BIGGEST MARKET FOR CARPETS FEW COMPANIES P CONTROL LARGE y US FLOOR COVERING MARKET SALES VOLUME SHARE OF THE f (TOTAL: 2 BILLION SQM) MARKET AND THE BIGGEST ONES ARE r : f BASED IN GEORGIA CARPET&AREA RUGS 53% | BEAUL
Slide 10: European Carpet Market
Market Overview = Export/L J s ine r akdi xport & _ European Carpet Market cas CARPET DEMAND BY SECTOR 55% RESIDENTIAL BUILDING |g DEMAND NET REVENUE ~ Ey |: «698 | $47 bas Bio! es MILLUON METERS? BILLION 9° 39% : IETHERLANDS NON- RESIDENTIAL BUILDING 3 9g co ° BELGIUI 6% 9 OTHERS ft Sl ae fal OS ma
Slide 11: Demand Drivers in Egypt
Market Overview = Export/Local Progres Financial Performance Cost Breakdow Capex Expo side & L_ Demand Drivers in Egypt ene A GDP is expected to grow by 5-6% annually up to G 2020 as per the IMF. Sizeable youth population 50% of the Egyptian population are near the marriage with around one million m
Slide 12: 4Q2018 Revenue Summary
Export/Local Progress = Financ erformanc Cost Breakdowr Capex Export Subsid & Ugyipill ugsbuill 4Q2018 Revenue Summary seal Volume (sqm) Value (EGP million) FY 2018 FY 2017 % Change FY 2018 FY 2017 % Change Epes 5,977 5,834 2% 56 55 2% ow USA 2,134 1,958 9% "1 "1 6% OW China 81 164 -51% 1 1 -36% Tuf
Slide 13: Export Market development
Export/Local Progress = Financial Perf anc Cost Breakdown Capex Export Subsid & L Export Market development Ese Performance by region in 4Q2018 a a ie € — £ 95% 11% 38% Revenue contribution by regions Asia Africa& GCC Europe Egvet. Americas * SLIDE 13
Slide 14: Export Market Development in 4Q2018
Export/Local Progress Financial Performance Cos "I Capex Export Subside & [ Liga ogeatul Export Market Development in 4Q2018 Onentalicever Percentage A Volume Value Average Price Contribution to Export Revenues 4Q 2018 4Q 2017 Woven Vv 1% a3 A 4% 77% 79% Tufted 4 21% 416% V4% 20% 18% Non-woven Felt
Slide 15: Export performance overview
Export/Local Progress Financial Performa: ost Jow! ax Export Subside & = Export performance overview cee Export revenues (EGPbn) Export vs. Local Revenue volume % Export volumes (mn sqm) D Export © Local 2014 2015 2016 2017 2018 2015 2016 2017 2018 2014 2015 2016 2017 2018 * SLIDE 15
Slide 16: Longstanding relationship with major customers
rview Export/Local Progress Longstanding relationship with major customers . a % 1 7 a ) Se oN ay fa > ‘ZN Qo ES) 4 ets an aS mm) GEE) wo) f MASS’ ie )) } ~ f>—. : \y y H 4* 4 y a NaN, «cm « ~ tai )\ Dd GW) ca . . p yr a —~ aX ye - * lay | mae | f 6 LGD i (& Ny © Zz 2 € <q “e.IDE 16 a a
Slide 17: International Hospitality segment recorded 13% y-o-y growth in 2018
Export/Local Progress Financial Performane ost Breakdow ae Export Stibstte & L International Hospitality segment recorded Ghenaleaves 13% y-o-y growth in 2018: We installed the carpets at a number of projects worldwide, including: 1 Fountain View Towers 1, 2, and 3, Phase 2 of the Atlantis Hotel, an
Slide 18: Local Market Development in 4Q2018
Export/Local Progress Financial Performan: Cost Breakdown Capex f side & L_ Local Market Development in 4Q2018 Satere Percentage A Volume Value Average Price Contribution to Export Revenues 4Q 2018 4Q2017 Woven Vv 5% 41% 46% 78% 79% Tufted Vv 5% Vv 5% 41% 12% 13% Non-woven Felt Vv 15% Vv 4% 412% 5%
Slide 19: Local Market Overview
Export/Local Progress Financial Performan ost Breakdow! Capex Export Subside & L_ Local Market Overview Ere Growing Local revenues (EGPbn) Local Sales volume (mn sqm ) : . " + om " A - “f° ( EGPbn ) 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 * SLIDE 19
Slide 20: Revenue progress
Export/Local Progress = Fins 2 t t eakdowr sex x + Sut & Revenue progress savaged Revenues Sales volumes ( EGPbn ) (mn sqm ) © Export °o Local © Export o Local 10.4 3.7 W1 117 117114 58 68 10.2 1% 54 47 46 6.7 63 68 68 ( EGPbn ) (mn sqm) 2015 2016 2017 2018 2015 2016 2017 2018 3 -Year ( GAGR 21% ) *
Slide 21: 4Q 2018 Revenue Mix
Export/Local Progress Fir 1 Perf it Breakdow 3 xport Subs’ & gydipill ugsbuill OrientalWeavers 4Q 2018 Revenue Mix (by volume) OW China vues 40 2018 Revenue Mix (by value) 40 2018 Revenue Mix (by volume) OW China OW USA OWUSA Woven-Grade A === EGP328/sqm Tufted wall-to-wall == EGP49/sqm Woven-Grade
Slide 22: Hospitality segment recorded successful installations
Financial Performance Cos! Breakdown pex Export Subsid: & L_ Hospitality segment recorded: anata Successful installations in 2018 ® Galala Coastal Hotel, © Marriott Cairo Hotel, e The Four Seasons Nile Plaza, © the Intercontinental Citystars, in addition to e the New Capital’s 10,000 sqm mosque - th
Slide 23: 4Q 2018 Cost Breakdown
Cost Breakdown Capex Expo sid & 4Q 2018 Cost Breakdown teeter - 54% Raw Material Others 16% — x rN, 7 31% Polyproplene-Nylon _1 9% ) eecin Selling Deprectiation f 8% Finishing Material 9) ) 3 8% Wages Woo! = Source: Company = Almost 63% of costs are dollar based. * SLIDE 23
Slide 24: 4Q 2018 Cost Breakdown: PP Prices
Cost Breakdown Capex Export Subsid & CC 4Q 2018 Cost Breakdown Chenacever PP Prices ( USD/ton ) (UsD/Ton ) 990 1,363 1,629 1,456 1,585 1,584 1,218 993 1,130 1,275 1,113 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 * SLIDE 24
Slide 25: Recent Expansions
Recent Expansions Woven 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 016 2017 * 4new goblin looms * 9new looms * 2yarn production lines * Establishing a new factory * 10 new
Slide 26: Financial Summary
Financial Performance st Breakdow! xport Subside & L_ Financial Summary rosea EBITA Performance ( EGPmn) Net Income Performance Net Debt (EGPmn) © EBITDA © Net income © Net debt (EGP billion) © EBITDA margin © Net margin © Net debvEBITDA 1,600 ( EGPma ) (EGP) ‘(EGP mn) 16% a 2 15% 14.99% 700 : 6.7%
Slide 27: Impact of Energy Subsidy Reform on Costs
Liga get Impact of Energy Subsidy Reform on Costs OnentalUleaver Energy cost Natural gas (Us$/mmbtu) 2.25 5 5 5 Electrici: (ecrias 0.28 0.435 0.69 0.99 43% Transportation costs 11 1.80 3.65 55 55% (EGP Diesel/ /Liter) * Energy cost represents less than 4% of the company’s total cost * SLIDE 27
Slide 28: Export Incentive Program
Export Subsidies & i Export Incentive Program: pos are e@ EGP490 mn delayed disbursement till Feb 2019 ® OW collected EGP132 mn in 2018. Export Cash Documents Submitted Export Subsidies to Export % Of Exports in EGP proceeds Subsidy Fund * SLIDE 28
Slide 29: Government to launch new Export Incentive Program
Export Incentive Program bos od The Government to launch a new Export Incentive Program on March ist 1 Currently, the Ministry of Trade & Industry is preparing a new export incentive pro- gram for implementation on March 1st, 2019, replacing the current program. 2 The Egyptian Prime Minister meets s
Slide 30: Share Data
Export Subside + | Share Data oat OrientalWeavers ¢ 443.4 mn shares at par value of EGP 1 per share. e Issued and Paid-in Capital EGP 443.4 mn. 2.00 e Listed in EGX since September 1997. ¢ 3 Month average daily value EGP8.3mn. e Market Cap USD 304 mn (as of Feb 27, 2019). mmePps te Payout ratio 92%
Slide 31: Disclaimer
Liga get Disclaimer imal 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, perform
Slide 32: For More Information, please contact
For More Information, please contact Ingy El-Diwany, CFA Investor Relations Manager () +202-22685166 ieldiwany@orientalweavers.com © www.orientalweavers.com