March 2017

Obour Land For Food Industries

Analyst Highlights Presentation

3

Disclaimer

This presentation is being provided to you on a confidential basis and may not be distributed or reproduced in any form.

This presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation or

solicitation of an offer to subscribe for or purchase securities of any kind and neither this document nor anything contained herein shall form the basis

of any contract or commitment from any party whatsoever.

This presentation has been prepared by Obour Land for Food Industries SAE (“Obour Land”) and reflects the management’s current expectations or

strategy concerning future events and are subject to known and unknown risks and uncertainties.

Some of the statements in this presentation constitute "forward-looking statements" that do not directly or exclusively relate to historical facts. These

forward-looking statements reflect Obour Land’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject

to risks, uncertainties and other factors, many of which are outside Obour Land’s control. Important factors that could cause actual results to differ

materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Obour Land undertakes no

obligation to revise any such forward-looking statements to reflect any changes to its expectations or any change in circumstances, events, strategy or

plans.

Because actual results could differ materially from Obour Land’s current intentions, plans, expectations, assumptions and beliefs about the future, you

are urged to view all forward-looking statements contained in this presentation with due care and caution and seek independent advice when

evaluating investment decisions concerning Obour Land.

No representation or warranty, express or implied, is made or given by or on behalf of Obour Land or any of its respective members, directors, officers

or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in or discussed at this

presentation.

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you have read and agree to comply with the contents of this disclaimer.

4

Table of Contents

I. Industry Overview

II. Obour Land In Depth

III. Historical Financials and Business Plan

IV. Contact IR

I. Industry Overview

6

8%

5% 5% 5%4%

4% 4%3% 3% 3%

3% 3%

2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Lib

ya

Moro

cco

Nig

eria

Egypt

Tun

isia

Qa

tar

Alg

eria

Un

ited

Ara

b E

mira

tes

Turk

ey

Le

ba

no

n

Sau

di A

rab

ia

Kuw

ait

Sou

th A

fric

a1,035

1,193

1,450

1,623

1,894

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2010 2011 2012 2013 2014

Egypt Boasts a Highly Supportive Demographic Profile and Resilient Consumption Patterns

Population in Perspective (mn) Egypt Population Age Brackets - 2014 Urban Population Growth (mn, %) Private Consumption (EGP bn)

GDP Per Capita (2015-2020 CAGR) Disposable Income (EGP bn) Consumption (% GDP)

89

78

40

35 3431

11 107 6 5 4 4 2

2.0%

1.0%

1.7%

2.6%

0.9%

2.0%

1.0%

2.9%

2.2%

1.4%

1.0%

2.8%

3.1%

2.9%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0

10

20

30

40

50

60

70

80

90

100

Population (mn) 2015-20 CAGR (%)

171

185

214 213221

90

110

130

150

170

190

210

230

2010 2011 2012 2013 2014

< EGP 3K20%

EGP 3K-4K25%

EGP 4K-5K20%

EGP 5K-6K12%

EGP 6K-8K12%

EGP 8K-12K7%

> EGP 12K5%

Expenditure Brackets

95%89%

84% 82% 80% 78%

59% 56% 56%

48%

29%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Egypt Turkey MoroccoSaudi ArabiaUnited Arab EmiratesQatar

▲16%

2010-2014 CAGR%

35 36

37

38

39

1.9%2.1%

2.2%2.3% 2.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

33

34

35

36

37

38

39

2010 2011 2012 2013 2014

0-14 Yrs32%

15-24 Yrs18%

25-54 Yrs38%

55-64 Yrs7%

65 Yrs +5%

Source: Euromonitor, IMF, World Bank and CAPMAS

▲7%

7

13.8

9.4

5.75.1

3.53.0

2.5 2.3 2.31.6

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

France Italy USA Egypt Turkey Saudi Arabia South Africa UAE Algeria Morocco

Cheese is an

Egyptian household

staple and an

affordable source of

protein and as

such, Egypt’s

cheese per capita

consumption is

above the world

average

Unprocessed soft

cheese remains the

largest and the

fastest growing

subcategory in the

cheese market

Cheese Consumption per Capita (Kg)

Cheese Market Overview

Source: Euromonitor

Cheese Market Size (EGP mn)

6,9277,758

8,742

9,801

11,022

12,930

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2010 2011 2012 2013 2014 2015

▲13%

2010-2015 CAGR%

Cheese Market Value Breakdown by Type (%) Growth by Cheese Type (2010-2015 Value CAGR) (%)

5,084 5,837 2,008 12,9302010 2015

2015 Total Value (EGP mn)

52%

31%

17%

Unprocessed Hard Cheese Unprocessed Soft Cheese Processed Cheese

45%

39%

16% 19%

10%12%

13%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Unprocessed SoftCheese

Unprocessed HardCheese

Processed Cheese Total Cheese

8

Cheese Market Categories

Soft Unprocessed Cheese (White Cheese) Hard Unprocessed Cheese Processed Cheese

Description

Natural/white cheese; fastest growing

category

Prepared with natural ingredients

(fresh/powder milk), hence perceived as

healthy

Targets the mass market due to

affordability and product varieties

Multipurpose product used as snack or

main meal component

Most popular segment

Artisanal production

Distinctive smell, varying according to

stage of age

Has several forms including: Roumy,

Gouda, Cheddar, Emmental, among

others

Niche product, targeting consumers with

westernized eating habits

51% natural cheese, includes

preservatives, salt and artificial

ingredients

Characterized as less fatty and salty than

other cheeses

Premium pricing due to lower mass

appeal

Popular for sandwiches and as a cooking

ingredient

Market Value and Growth Profile

(EGP mn, %)

Product types/Packaging

Artisanal production (plastic tubs/buckets

only)

Organized production (carton packs,

plastic tubs/buckets)

Blocks

Slices

Shredded

Triangles, jars (glass & plastic)

Sales Channels

Traditional/unorganized grocery retail

outlets dominate

Modern trade penetration is low (no

access to remote areas, etc)

Tubs/buckets mainly limited modern trade

due to refrigeration needs, restricting their

growth

Carton packs (no refrigeration, longer

shelf life) driving growth

Both traditional and modern outlets and

require special storage section

Largely limited to modern retail outlets as

it typically requires refrigeration in

transport and storage

Accordingly, segment’s growth is

constrained by under penetration of

organized retailers but that could change

as modern trade chains expand

Key Players

Local labs especially for Roumy, and

other imported brands such as Frico

3,598 3,927 4,313 4,702 5,130 5,837

3,000

3,500

4,000

4,500

5,000

5,500

2010 2011 2012 2013 2014 2015

2,175 2,555 3,007 3,518 4,137 5,084

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

2010 2011 2012 2013 2014 2015

1,154 1,276 1,422 1,581 1,756

2,008

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2010 2011 2012 2013 2014 2015

▲10%▲19% ▲12%

Source: Euromonitor

2010-2015 CAGR%

9

White Cheese Market Competitive Landscape

Company OverviewBrandsCarton Pack

Market Share1 (%)

Obour Land is the

fastest growing

white cheese

producer in Egypt,

growing its market

share in the carton

pack from 23% in

2013 to 39% as of

9M 16

White Cheese Market – Competitive Landscape

Established in 1997, Obour Land is a leading producer of white cheese offering

27 different SKUs with an extensive distribution network supported by a fleet of

201 vehicles and 10 distribution centers. The Company has a total head count of

1,361 employees

39% EGP 1,054mn

Established in 1990, Domty offers a wide range of products and flavors, with a

family of nearly 200 SKUs. Domty boasts a distribution fleet of 327 trucks

operating from 27 sub strategically located distribution hubs across the country.

Domty was listed on EGX and started trading on March 22nd, 2016 with a current

market capitalization of EGP 1,283mn

43% EGP 981mn

Greenland Group for Food Industries was founded in Egypt in 1995 and was

acquired by the Americana Group in 2005. Greenland was the uncontested

market leader in the white cheese market in 2007 with a total market share of

43%, however, the company did not adapt to the changing consumer

preferences, and hence lost market share to Obour Land and Domty

5% NA

Founded in 1985, Arab Dairy has grown to become a major exporter of cheese

to the Middle East offering 24 SKUs. In 1995, the company started the

production of Panda Feta plastic tubs. In 1998, the company introduced Panda

and Dairy Feta cheese and Panda Istanbully cheese in Tetra Pak packages. The

company was acquired by Pioneers Holding in 2015

6% EGP 422mn2

Best Cheese Company was founded in 1995 and has grown to be one of the

largest processed cheese manufacturers in Egypt. The company produces

processed cheese including the Teama Milk and President brands, as well as 18

private label brands spread across the Middle East. The company operates as a

subsidiary of Lactalis International

2% NA

Source: Nielsen Retail Audit, Company financials1 9M 16 market share by value2 Revenues include processed cheese revenues

Nielsen’s retail audit does not include plastic tubs sales in the calculation of market shares, in addition they track sales only in large supermarkets / hypermarkets, therefore some of the companies’ sales are not accounted for

9M 16 White

Cheese Sales Value

II. Obour Land In Depth

A. Production

11

Location and Facility Overview

Production Facilities Overview

Area 12 Area 13 Area 14 Area 15 Area 16 Area 14 (2) Area 7&8

Acquisition Date 2007 2011 2013 1998 2012 2015 2015

Land Area (sqm) 3,060 3,060 3,060 3,060 3,060 5,000 6,112

BUA (sqm) 6,512 7,704 6,453 5,738 4,251 3,074 7,102

Status Fully utilized Under-utilized Under construction Under construction Under construction Under construction Under construction

Usage

Eight production

lines of soft cheese

125g, 250g & 500g

Head office +

four production lines

of soft cheese 80g,

125g & 250g + three

new production lines

of soft cheese

Will be utilized for

the production of

juices and fresh milk

Being revamped to

be utilized for the

production of

spreadable cheese

Ground floor is used

as storage space

Ground floor is used

as storage space

Ground floor is used

as storage space

12

Obour City Location Plants Location

14 15

7 & 8

13 16

14 (2)

12

Planning

In light of the monthly sales targets set by the senior

management, the Company formulates a production plan

Strategic as well as safety stocks of each material are

determined to provide the Company with the flexibility to

respond to changes in the demand pattern without any

interruption to production operations

Production Value Chain

Raw Material Procurement

Inspection

Raw Material Inventory ManagementProduction

Warehousing

Planning

Raw Material Procurement

A diversified list of suppliers is used for main raw

material requirements in order to limit concentration

risk and ensure better raw material quality/cost

efficiency, hence enabling the Company to mitigate

fluctuations in raw material prices

Inspection

The inspection process occurs simultaneously

with the ongoing purchasing process

Materials are inspected according to the

Company’s internal standards as well as strict

international quality standards

Any raw material items below set standards are

returned to their respective suppliers

Warehousing

The products are then transported to the

Company’s warehouses

In the local market, products are distributed to

consumers through any one of the Company’s

distribution channels

Production

An experienced and highly trained production team

thoroughly monitors the entire production process to

ensure minimal waste levels and uniformity of final

products

The production process has proven to be efficient in

reaching final product quality with minimal human

intervention

Raw Material Inventory Management

Following inspection, raw materials are transferred to

storage warehouses

Raw materials are then allocated to the production process

depending on the anticipated demand

Usage patterns are calculated based on a thorough

historical trend analysis that combines both financial and

operational parameters

1 2

3

45

6

13

Production Process

White Cheese Production Process

Receiving Raw Materials

Cooling &

Distribution

Raw Materials Inspection Powder Milk Mixing HomogenizationFirst Round of

Pasteurization

UltrafiltrationSecond Round of

PasteurizationAdditives Packaging Incubation

1 2 3 4 5

6 7 8 9 10 11

Tetra Pak supplies the

packaging materials used

for carton pack products

Obour Land imports skimmed milk

powder, milk protein concentrate

and natural butter, the main raw

materials used in the production

process

The Company operates two

laboratories, chemical lab and

microbiology lab, for quality

inspection of raw materials

using the sampling method

Skimmed milk powder is then

mixed with milk protein

concentrate, natural butter,

vegetable oil and water at a

regulated temperature to form

input mixture used in the

production process

Concentration of each raw

material in input mixture would

vary in accordance to the type

of final white cheese product

Input mixture is pumped into

tanks to homogenize the

mixture through the breakdown

and spread of fat

Within 15 seconds,

temperature in tanks is raised

to 85 degrees Celsius to kill all

the bacteria that could spoil the

cheese

The standard temperature for

pasteurization is 72 degrees

Celsius, however, the

Company raises it to 85 as a

measure of precaution

Water is separated

through filters and

disposed of, to produce a

concentrated mixture

A second round of

pasteurization takes

place in order to ensure

no bacteria remains in

the mixture

Salt, calcium and

potassium are added to

the mixture; additionally,

glucono delta lactone is

used to reduce the

mixture’s pH levels to

create the acidic taste of

cheese

Final product cheese is

cooled in fridges with a

temperature of 3 – 5

degrees Celsius awaiting

distribution

Cheese sold in plastic

tubs is cut into smaller

pieces, filled into trays,

and placed in

temperature controlled

incubators for four hours

There are three quality check points throughout the process in addition to quality checks of random samples on various production lines at ten minute intervals;

following the production of each batch, all machines and tanks are cleansed to eliminate any leftover bacteria

14

19.9

32.7

9.6

-

3.6

65.7

26.1

44.4

12.6

0.33.4

86.7

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

500g 250g 125g 80g Plastic Tubs Total Unprocessed Cheese

2014 2015 Weighted Max Capacity1 (ktpa)

Manufacturing Operations at a Glance

Production Volumes (ktpa)2Tetra Pak Ties

Relaxed Payment Terms for

Equipment: Obour Land enjoys

preferential terms on equipment

purchased such as installments over 4-

5 years

Packaging material rebates: Obour

Land receives discounts on packaging

material volume procured. These

rebates amounted to 15.6% of the total

Tetra Pak expenditure in 2015

Cash discount: Obour Land receives a

discount for early payment for

packaging materials procured; the

Company has been increasing cash

purchases to benefit from this discount

Growth support: The Company

negotiates packaging material discount

arrangements at the time it purchases a

new machine from Tetra Pak. These

discount arrangements are generally

linked to the volume of packaging

material to be procured for use in the

machine, and are typically negotiated

separately for each machine. Any such

discount arrangements would reduce

cost of sales

Marketing support: Obour Land

receives annual marketing support from

Tetra Pak to support its marketing

campaigns of Tetra Pak packaged

products. This support is based on a

percentage of the marketing budget

1 Weighted maximum capacity is calculated assuming that no. of working days per year is 300 and number of working hours per day is 20 and is weighted by the number of operational months 2 Excludes line 12, which was introduced in July 2016

33.0 36.0 47.3 51.9 11.3 14.1 1.8 4.1 4.1

60% 73% 69% 85% 85% 90% 15% 88% 83%

95.6 107.9

69% 80%

Weighted Utilization Rate

II. Obour Land In Depth

B. Marketing Strategy

16

Marketing Strategy Overview (1/2)

Commercial Strategy

Brand Development Product Development Pricing Promotion

Strategic Guidelines

Adapting to Structural Shifts

in the Market

Obour Land seeks to

continuously understand

the wider market landscape

and adapt to the rapidly

changing consumer

preferences

The Company sets high-

level marketing guidelines

that govern its marketing

mix

Diversification

Obour Land relies on its

management’s extensive

expertise in the F&B market

and seeks to diversify from

its core cheese products

and enter into

complimentary product

segments / markets that

can leverage existing

platforms

Strong Brand Equity

Obour Land is one of the most

recognized brands in the local

market, boasting one of the

highest awareness levels

The Company has been

investing in advertising

campaigns to cement the

brand in consumers’ minds

Additionally, it continuously

adapts to the market’s needs,

introducing its carton pack

product line in 2007 to

capitalize on the increasing

hygiene awareness, enabling

it to hold and maintain a

leading market position

Moreover, the Company is in

the process of introducing

new product packaging

New Sizes

Offering packages smaller

than the industry norm,

80gm SKU, helps the

Company price products

more efficiently,

capitalizing on the “on the

go” consumption trend

New Flavors

Obour Land continuously

researches flavors to

reach an optimum product

mix that suits consumer

preferences

New Products

The Company is investing

in new subcategories of

the cheese market

(mozzarella and

spreadable cheese) and

is venturing into new

product categories (juice

and milk)

Strong Ability to Adjust Pricing

The Company adopts pricing

strategy, whereby it prices its

products at a premium to its

competitors, capitalizing on

its premium quality product

offering and its robust brand

equity to implement its long

term strategy of profitable

growth

Advertising Strategy

The Company focuses on

spending efficiently by keeping

costs in line with market average,

without sacrificing exposure. This

is done through directing

marketing communication at

targeted segments, thus

maximizing cost efficiency

Obour Land maintains a strong

level of advertising to increase

brand awareness and adds

product or promotion specific

advertising

17

Marketing Strategy Overview (2/2)

Communication Channels

Obour Land adopts an

efficient communication

strategy enabling it to

strengthen its brand

positioning and maintain

a high level of

awareness of its

products

The Company

consolidates all its

products under the

“Obour Land” brand

name to maximize scale

All communication

channels used target A,

B and C income

brackets

Above The Line Media Campaigns Below The Line Media Campaigns

TV Ads Activations in Sports Clubs

Sponsorship

Obour Land Cup & Egyptian Premier League

Social Media

Facebook Page

“Moving Billboards”

Distribution Vehicles

The Company regularly engages with reputable advertising

agencies to launch ATL media campaigns, including television,

radio, internet and print advertisements, that target a wide

consumer audience

In an effort to raise awareness of existing products and introduce

new products, the Company engages in one on one media

campaigns using BTL activities covering on the ground presence

and activations where customers receive brochures and free

samples of products

Obour Land launches large and extensive marketing campaigns, mainly using above the line (“ATL”) and below the line (“BTL”) communication

channels complemented by social media campaigns and sponsorships, to maintain strong brand awareness and loyalty among consumers

Print Ads

Obour Land sponsors one of the most

viewed sports events in Egypt, the

Egyptian Football Cup, which has

substantially raised awareness as it is

now called the Obour Land Cup

In 2016, Obour Land started sponsoring

the Egyptian Premier League

Obour Land has an active Facebook

account, with more than 157K likes,

which it utilizes to maintain its customer

relationships and raise awareness about

new promotions and products

Obour Land’s trucks are considered to

be a source of communication to

consumers as they are used as moving

billboards depicting pictures of the

Company’s different product offerings

II. Obour Land In Depth

C. Sales & Distribution

19

70%

60%66%

71%

27%

37%29%

26%

3% 3% 5% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 9M 2016

Wholesalers Retailers Key Accounts

Sales Channels

Sales Breakdown by Channel Branches Overview

Branch

# of

Sales

Rep

#

Fleet

Storage Capacity

# Carton

Packs

# Plastic

Tubs

Al Sharkeya 13 13 3,500 350

Al Mansourah 5 5 3,350 400

Kafr Al Sheikh 3 3 2,400 125

Al Beheira 6 6 4,320 600

Al Menoufeya 5 5 4,000 500

Tanta 6 6 1,800 250

Menya 5 5 3,500 220

Assiut 6 6 2,000 525

Alexandria 19 19 5,000 2,200

6th of October 18 18 18,000 600

Total 86 86 47,870 5,770

# FleetMaximum Handling Capacity

(Tons/Day)

161

191201 201

90

110

130

150

170

190

210

2013 2014 2015 9M 2016

479

555

605 605

250

300

350

400

450

500

550

600

650

2013 2014 2015 9M 2016

▲12% ▲12%

Wholesalers

Retailers

Key

Accounts

Wholesalers, representing the Company’s

indirect sales, purchase the products from

Obour Land’s production facility and sell

them to smaller groceries and supermarkets

Retailers represent the sales carried out by

the Company’s sales representatives who

distribute the products through the

Company’s branches spread across Egypt

Key accounts represent the chains and

hypermarkets and makes up the smallest

contribution of the Company’s sales as it

implements a strict policy to control products’

pricing and to sell on a cash basis

Obour Land’s

management controls

the pricing of its

products through:

- Down payments by

wholesalers to lock

in prices

- All wholesalers

have to sign a

contract at the

Company’s

premises

- Manages pricing

regionally by

controlling

quantities supplied

to retailers through

sales

representatives and

branches

- The Company

minimizes sales

through chains and

hyper markets,

which typically

command high

discounts and credit

terms, attracting

traders who stock

up at deep

discounts and

manipulate the

price of the product

in the market

2013-2015 CAGR%

Sales

ChannelOverview

Average

Discount1

5%

2%

10%

1 Average discount offered to each sales channel

20

Sales Division Structure

Development and Planning Committee

Composed of the Chairman, CEO, and

General Manager of the Production Facility

Sales Division Structure

Sales Director (11)

The Company’s sales division is headed by the steering committee which sets

sales targets and plans of the Company and establishes performance goals for

the department on a regular basis

Obour Land has 10 branches spread across Egypt, specifically in Al Sharkeya, Al

Mansourah, Kafr El Sheikh, Al Beheira, Al Menoufeya, Tanta, Menya, Assiut,

Alexandria and 6th of October, excluding the production facility in Obour city

These branches successfully directly distribute the Company’s products to 23 of

Egypt’s governorates; the remaining four (Suhag, Luxor, Aswan and North Sinai)

are serviced through indirectly through retailers

Key Responsibilities Sales Support Functions

Obour Land also employs two customer

service representatives in charge of client

management whereby they ensure

customer satisfaction and efficient delivery

of products

They also address clients’ questions and

concerns, resolve any issues, and

communicate major issues to the sales

director of the respective branch

A dedicated sales director oversees the Company’s sales operations,

communicates the overall sales strategy and supervises the realization of the

sales plan and the profitability objectives

Sales Accountant (101) Each branch has a dedicated sales accountant who monitors the inflow and

outflow of products and cash collection on a daily basis

Sales Representative (861)

Obour Land employs a total of 86 sales representatives who sell its products to

current and prospective customers and arrange shipping schedules

Moreover, each sales representative is allocated a truck and driver to fulfill the

delivery of merchandise

Customer Service Representative

The Company utilizes two GPS tracking

systems, one for the direct distribution

vehicles in Cairo and one for the vehicles

in the 22 other governorates

The system enables the sales director and

the steering committee to monitor their

overall distribution speed and reach, and

to help track any inefficient shipping route

overlaps

GPS Tracker

Regional Manager (21) A regional manager is assigned to the Delta region and another to the Upper Egypt

region who are in charge of implementing the sales plan communicated to them

1 Represents the number of employees in the specific position

Area Manager (41)

Branch Manager (101)

Each region is split into two areas and each area is managed by an area manager

who reports to his respective regional manager

A branch manager is assigned to each of the 10 branches to ensure that their

respective sales plan is implemented with the utmost efficiency and quality

II. Obour Land In Depth

D. Human Resources

22

Recruitment

Obour Land has developed a standardized

recruitment process which includes testing material and

training requirements

The typical interviewing process is divided into two stages:

- HR interview, where the candidate’s general skills

are examined

- Committee interview, where the HR head and the

relevant department head examine the candidate’s

capabilities and skills that are needed to fulfill the designated role

The recruitment function coordinates among different

departments to gauge their recruitment needs and

accordingly match these departments with the highest quality

human capital available in the market

Compensation & Benefits

The function is responsible for budgeting responsibilities as well as

the execution of the compensation and benefits policies, in addition to

monthly payroll, transactions entry, and administrating sales

incentives quarterly & annually

HR Operations & Administrations

The HR Operations function is responsible for all administrative

operations of the department that include keeping records of insurance

coverage, personnel transactions, hires, promotions, transfers, and terminations

Responsible for handling of medical and social insurance for all workers and filing of

relevant claims

Training

The Company strives to conduct dynamic training and organizational

development programs to ensure that new employees are up to speed with the

Company’s practices as well as to ensure that existing employees are

consistently up-to-date with the industry’s best practices

Employees receive various training courses covering different areas

including operations, accounting, and safety

Plant employees receive a special training that is offered by an ex

Tetra Pak engineer in order to carry out machinery maintenance in

the future and eliminate the need for outsourcing

Human Resources

Operations47%

Sales & Distribution

44%

HR & Adminstration

7%

Finance 2%

# of Employees by Department

Total

1,361

III. Historical Financials and Business Plan

24

Historical Income Statement

EGP 2013 2014 2015 9M 2016

Revenues 528,868,362 926,979,665 1,169,837,613 1,054,286,976

Cost of sales1 (467,487,279) (835,651,737) (985,062,271) (827,319,660)

Gross Profit 61,381,083 91,327,928 184,775,342 226,967,316

Gross Profit Margin 12% 10% 16% 22%

Selling and marketing expense1 (19,906,976) (26,702,550) (46,645,944) (68,898,303)

General and administrative expense1 (2,963,581) (3,945,846) (4,674,091) (4,759,170)

EBITDA 38,510,526 60,679,532 133,455,307 153,309,843

EBITDA Margin 7% 7% 11% 15%

Depreciation 5,762,866 8,042,793 10,044,891 9,699,818

EBIT 32,747,660 52,636,739 123,410,416 143,610,025

EBIT Margin 6% 6% 11% 14%

Other income (loss) (263,085) 201,794 2,522,059 1,907,961

Provision for expected claims (4,386,485) (6,028,106) (5,730,770) (1,767,597)

(Loss) gain from disposal of fixed assets 3,648 198,825 (51,050) 256,218

Foreign exchange difference (313,944) (178,319) 913,605 519,941

Interest income 143,607 177,642 1,253,987 1,455,929

Interest expense (1,032,770) (911,101) (2,258,525) (3,406,348)

EBT 26,898,631 46,097,474 120,059,722 142,576,129

Income tax (7,788,445) (14,014,480) (28,208,203) (32,463,677)

Net Profit 19,110,186 32,082,994 91,851,519 110,112,452

Net Profit Margin 4% 3% 8% 10%

The provisions for expected

claims are related to the

Company’s expected tax

claims

Source: Company Financial Statements1 Excludes depreciation expense

25

Historical Balance Sheet

EGP 2013 2014 2015 9M 2016

Fixed Assets 99,691,781 99,131,395 182,527,661 190,735,439

Projects Under Construction 8,691,932 40,886,437 34,865,836 100,181,733

Total Non-Current Assets 108,383,713 140,017,832 217,393,497 290,917,172

Inventories 74,722,292 55,982,298 131,297,821 250,124,081

Accounts & Notes Receivable 4,345,346 6,798,751 13,067,057 10,859,435

Prepayments & Other Debit Balances 14,696,369 11,661,405 29,725,286 71,260,821

Cash on Hand & at Banks 28,997,101 93,417,825 125,600,700 86,888,182

Total Current Assets 122,761,108 167,860,279 299,690,864 419,132,519

Total Assets 231,144,821 307,878,111 517,084,361 710,049,691

Provision for Expected Claims 6,241,124 12,269,230 17,826,168 19,477,995

Credit Facilities 1,324,520 2,723,993 31,384,204 97,879,732

Accounts & Notes Payable 44,903,919 43,410,684 17,981,042 100,995,120

Loan From Shareholders - - 95,000,000 -

Long Term Liabilities - Current Portion 12,530,029 15,315,071 18,451,657 4,120,706

Income Tax Payable 3,050,932 10,761,582 20,564,632 27,772,170

Dividends Payable 14,362,410 278,261 - -

Accrued Expenses & Other Credit Balances 48,430,553 55,583,194 11,876,752 13,136,291

Total Current Liabilities 130,843,487 140,342,015 213,084,455 263,382,014

Long Term Liabilities - Non-Current Portion 2,367,806 11,063,560 10,474,359 41,614,783

Deferred Tax Liabilities 6,591,103 6,722,374 10,348,538 11,763,433

Total Non Current Liabilities 8,958,909 17,785,934 20,822,897 53,378,216

Total Liabilities 139,802,396 158,127,949 233,907,352 316,760,230

Paid up Capital 42,500,000 100,000,000 200,000,000 200,000,000

Amounts Paid in Respect to Capital Increase 33,100,000 25,000,000 - -

Legal Reserves 1,199,780 1,926,912 3,068,074 7,660,650

Retained Earnings 14,542,645 22,823,250 80,108,935 185,628,811

Total Equity 91,342,425 149,750,162 283,177,009 393,289,461

Total Equity & Liabilities 231,144,821 307,878,111 517,084,361 710,049,691

Long term liability is related to

packaging machinery acquired

from Tetra Pak and is

discounted at an annual rate

of 4%

The loan from shareholders

was used to acquire two plots

of land adjacent to the

Company’s headquarters in

Obour City, as well as

purchase and pile up inventory

at low price points

Source: Company Financial Statements

26

Forecasted Income Statement

The provisions for expected

claims are related to the

Company’s expected tax

claims

1 Excludes depreciation expense

EGP 2016E 2017F 2018F 2019F 2020F 2021F

Revenues 1,436,292,000 2,088,582,190 2,752,644,648 3,421,231,788 4,017,204,106 4,545,223,667

Cost of sales1 (1,147,358,036) (1,667,131,821) (2,194,400,077) (2,730,050,168) (3,207,775,154) (3,631,030,561)

Gross Profit 288,933,964 421,450,369 558,244,571 691,181,620 809,428,952 914,193,105

Gross Profit Margin 20% 20% 20% 20% 20% 20%

Selling and marketing expense1 (86,979,395) (134,892,175) (163,878,751) (203,683,099) (218,875,413) (247,644,302)

General and administrative expense1 (8,737,168) (16,651,391) (22,243,593) (27,646,317) (32,462,255) (36,729,080)

EBITDA 193,217,401 269,906,803 372,122,227 459,852,204 558,091,284 629,819,724

EBITDA Margin 13% 13% 14% 13% 14% 14%

Depreciation (13,951,213) (24,396,153) (27,693,926) (29,327,627) (32,277,040) (32,878,923)

EBIT 179,266,188 245,510,650 344,428,301 430,524,576 525,814,244 596,940,801

EBIT Margin 12% 12% 13% 13% 13% 13%

Other income (loss) 2,236,547 - - - - -

Provision for expected claims (1,767,597) - - - - -

Interest income 2,000,000 2,208,642 5,228,259 10,584,859 16,817,579 16,817,579

Interest expense (5,310,736) (7,603,815) - - - -

EBT 176,424,402 240,115,476 349,656,560 441,109,435 542,631,822 613,758,379

Income tax (39,695,490) (52,683,425) (77,330,169) (97,907,065) (122,092,160) (138,095,635)

Net Profit 136,728,912 187,432,052 272,326,392 343,202,369 420,539,662 475,662,744

Net Profit Margin 10% 9% 10% 10% 10% 10%

27

Forecasted Balance Sheet

Payables of fixed assets

purchases relates to

machinery acquired from Tetra

Pak and is discounted at an

annual rate of 4%

EGP 2016E 2017F 2018F 2019F 2020F 2021F

Fixed Assets 309,815,291 312,941,541 331,067,529 328,024,738 357,336,854 351,876,477

Projects Under Construction 34,865,836 34,865,836 - - - -

Total Non-Current Assets 344,681,127 347,807,377 331,067,529 328,024,738 357,336,854 351,876,477

Inventories 272,023,426 274,049,066 300,602,750 336,581,528 395,479,129 447,661,302

Accounts & Notes Receivable 19,675,233 34,332,858 52,790,445 65,612,664 77,042,271 87,168,673

Prepayments & Other Debit Balances 90,674,475 137,024,533 180,361,650 224,387,685 263,652,752 298,440,868

Cash on Hand & at Banks 79,048,659 141,815,561 381,010,353 677,475,499 1,004,282,355 1,441,745,908

Total Current Assets 461,421,792 587,222,019 914,765,199 1,304,057,376 1,740,456,506 2,275,016,752

Total Assets 806,102,920 935,029,396 1,245,832,728 1,632,082,115 2,097,793,360 2,626,893,229

Provisions 19,477,995 19,477,995 19,477,995 19,477,995 19,477,995 19,477,995

Credit Facilities 101,384,204 - - - - -

Accounts & Notes Payable 136,011,713 205,536,800 270,542,475 336,581,528 395,479,129 447,661,302

Other Current Liabilities 14,362,920 20,885,822 27,526,446 34,212,318 40,172,041 45,452,237

Total Current Liabilities 271,236,832 245,900,617 317,546,917 390,271,840 455,129,165 512,591,534

Payables of Fixed Assets Purchases 101,826,846 74,624,408 47,421,970 23,710,985 4,025,244 0

Deferred Tax Liabilities 11,763,433 11,763,433 11,763,433 11,763,433 11,763,433 11,763,433

Total Non Current Liabilities 113,590,279 86,387,841 59,185,403 35,474,418 15,788,677 11,763,433

Total Liabilities 384,827,111 332,288,458 376,732,320 425,746,259 470,917,842 524,354,967

Total Shareholders Equity 421,275,808 602,740,938 869,100,408 1,206,335,856 1,626,875,518 2,102,538,262

Total Equity & Liabilities 806,102,920 935,029,396 1,245,832,728 1,632,082,115 2,097,793,360 2,626,893,229

IV. Contact IR

29

Contact IR

Ahmed Nour El-Din Hassan

Head of Investor Relations, Investments

& Corporate Finance

ir@obourland.com

Direct: +202 4881 2219

Mobile: +201 000 733337

Fax: +202 4881 2218

Headquarters

Obour City, 1st Industrial Zone

Block 13012

Greater Cairo, Egypt

Visit our IR website: ir.obourland.com