INVESTOR PRESENTATION - FY 2021 - Amazon S3
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1 INVESTOR PRESENTATION FY 2021 W W W . E L S E W E D Y E L E C T R I C . C O M elsewedyelectric.com @elsewedyelectric
Disclaimer 2 Certain information contained in this document consists of forward-looking statements reflecting 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 achievements of the Company to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, including worldwide economic trends, the economic and political climate of Egypt and the Middle East and changes in business strategy and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in such forward-looking statements. Recipients of this document are cautioned not to place any reliance on these forward-looking statements. The Company undertakes no obligation to republish revised forward-looking statements to reflect changed events or circumstances. W W W . E L S E W E D Y E L E C T R I C . C O M
3 AGENDA I. An Integrated Energy Solutions Global Provider II. Investment Highlights • Full-Service Integration • Long Track Record • Strong Geographical Presence • State-of-the-art Facilities • Experienced Leadership • Prestigious Client Base III. Business Line Review IV. Recent Financial Performance V. Corporate Social Responsibility W W W . E L S E W E D Y E L E C T R I C . C O M
An Integrated Energy Solutions Global Provider 4 Power...Build…Develop Sustainable Value.. Elsewedy Electric is an energy player structured to face the challenges of the world’s fastest growing markets and the complexity of the critical electricity industry. From its start, deep product and sector specialization and unprecedented • The Elsewedy family began what is today Elsewedy Electric in 1938 insight into local markets set the ground work for first mover advantage into new as an electrical equipment trading company. markets and sectors. • In 1960, after developing deep market understanding and local presence, the company became Egypt’s first specialized cables distributor. Our Core Values & Beliefs • In 1984, Arab Cables – as the company was then called – built the country’s first private sector cables factory. The event marked the beginning of Elsewedy Electric’s corporate identity. Ownership, Customer Commitment Integrity Innovation Excellence Satisfaction & Collaboration Vision To become a global leader in delivering energy, services and value Purpose provided with exceptional expertise and service to our customers and communities safely and efficiently. W W W . E L S E W E D Y E L E C T R I C . C O M
Full-Service Integration 5 Elsewedy Electric is a fully integrated energy solutions provider: From raw materials such as metals and plastics to inputs across the spectrum of wires, cables and electrical products, to contracting and turnkey infrastructure projects and electricity generation. Elsewedy Electric provides integrated solutions through five divisions. Industry EPC Technology Investment Development W W W . E L S E W E D Y E L E C T R I C . C O M
Summary of Main Financial & Performance Indicators 6 Total Revenue Revenue by Segment – FY 2021 (EGP bn) EGP 60,541 mn 1% FY Revenues 3% 1% ▲ 30.5% y-o-y 4% Wires & Cables 60.5 Turnkey Meters EGP 3,534 mn 46.6 46.4 49% FY Income 42.9 42.5 Transformers 42% ▲ 16.7% y-o-y Electrical Products 24.6 Renewables - IPP 2016 2017 2018 2019 2020 2021 >15,000 No. of Employees EBITDA Net Income EBITDA EBITDA Margin Net Income after Minority Net Income Margin 38 Years of Operation (EGP bn) (EGP bn) 15% 18% 12% 7.8 14% 6.1 14% 6.4 11% 10% 6.3 6.4 5.0 9% 28 Production Facilities 5.3 7% 6% 4.0 3.5 3.0 110 Export Countries 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 W W W . E L S E W E D Y E L E C T R I C . C O M
Fully Integrated Energy Solutions Provider 8 Elsewedy Electric’s integrated energy solutions provide a full range of offerings to produce, distribute, manage and safely use electrical power Integration across the value chain supports Fast track Ability to offer Cross-Selling Quality guarantees Cost leadership Brand advantages capabilities turnkey solutions Opportunities Industry EPC Technology Investment Development • Wires and Cables • Power Generation • Smart Energy • Independent Power Plants • Industrial • Transformers • Electricity Transmission Management • Utilities Development • Logistical • Electrical Products and Distribution • Data Centres • Renewable Energy (Solar, Wind, Hydro) • Water Treatment & Desalination • Oil and Gas • Transportation W W W . E L S E W E D Y E L E C T R I C . C O M
Long Track Record (1/3) 9 The Elsewedy Electric name has existed in the market since 1938 as a distributer of electrical equipment, becoming Egypt’s first specialized cables distributor by 1960 and Egypt’s first private manufacturer of cables with the establishment of a production plant in 1984. Over the next 30+ years, Elsewedy Electric would expand both organically and inorganically through the establishment of plants and the acquisition of companies across the value chain both domestically and abroad. 1938 1984 1996 1997 1998 2002 2003 2004 2005 2006 STARTING ARAB CABLES EGYTECH UNITED UNITED METALS GIAD ELSEWEDY SUDANESE ITALSMEA ELSEWEDY CABLES EGYPTIAN ELSEWEDY CABLES SYRIA LISTED IN Egypt’s 1st Special Power Cables. INDUSTRY Copper rods El Sewedy’s family started Cables Special cables, manufacturer. Sudan’s first cables ELECTRICAL Specialized explosion Cables production EGX Production Plant. Fiberglass poles, plant. INDUSTRY proof equipment facility in Syria to ELSEWEDY as a trader in SEDPLAST electrical Enameled copper wire. ELSEWEDY Oil Transformers producer for Oil & serve the Levant ELECTRIC PVC Compounds. Gas. markets. equipment's SEDCO ELSEWEDY manufacturer in GHANA ELASTIMOLD Cable joints and CABLES BRAND Sudan, extends Road Lighting terminations pioneer Sudan presence poles facility in Fully integrated cables beyond cables. in Egypt. Ghana. accessories plant. . 2021 2019 2018 2017 2014 2011 2010 2009 2008 2007 ACQUISITION PT ELSEWEDY STA 2 (PIP) SLP - ELSEWEDY ELSEWEDY ELSEWEDY RENAMED CABLES KSA, ALGERIA, ELSEWEDY CG POWER TECHNOLOGY LOGISTICS ELECTRIC PSP TECHNICAL ELSEWEDY ETHIOPIA, ZAMBIA, ECMEI, ELECTRIC SYRIA SYSTEMS ELSEWEDY PROPERTIES ACADEMY (STA) ELECTRIC YEMEN, DRY ISKRAEMECO - Fully Integrated Indonesia UTILITIES RF SIAG ELSEWEDY TRANSFORMERS M. TORRES service. ENERGY TOWERS (SET) EGYPT ACQUISITION ACQUISITION UNITED WIRES DOHA CABLES VALIDUS REACHED Production facility. ELSEWEDY ENGINEERING COMMERCIAL Pakistan +80 YEARS OF SUCCESS ELECTRIC OPERATION AT Starting from 1938 NIGERIA ELSEWEDY BENBAN SOLAR 3W NETWORKS ELECTRIC T&D PV POWER PLANTS TOTAL Revenues 2021 USD 3.8B In EGP 60.5 Billion I In EUR 3.3 Billion ROWAD RME ELSEWEDY Acquisition of 51% ELECTRIC POWER W W W . E L S E W E D Y E L E C T R I C . C O M
Long Track Record (2/3) 10 Elsewedy Electric has developed a strong track record in the execution of fast-track projects across Africa. The Group has repeatedly demonstrated its ability to secure high profile contracts both domestically and regionally with local governments Recent Notable Projects Beni Suef Combined Cycle Power Plant Al Layyah Combined Cycle Power Plant, UAE LARGEST POWER PLANT FIRST EPC PLUS FINANCE PROJECT BUILT IN ONE-PHASE WORLD-WIDE Beni Suef 4,800 MW (Fast-track) Combined Cycle Power Plant Al Layyah (Sharjah) 1,026 MW Combined Cycle Power Plant Owner The Egyptian Electricity Holding Company EEHC, Egypt Owner Sharjah Electricity & Water Authority Sewa, UAE Value EUR 2.1 bn Value USD 558 mn Capacity 4.8 MW Capacity 1.0 MW Location Egypt Location UAE Engineering, procurement, construction, testing, commissioning, start-up and Engineering, procurement, construction, testing, commissioning, start-up and civil works for 4 x 1,200 MW Power Blocks, WCT, Combined Cycle Power Plant. civil works for 1,026 MW Power Block, Once-through Cooling, Combined Cycle Scope Scope Nos. 8 Siemens SCCP5-8000H in 4 x (2+2+1) Combined Cycle. Power to grid Power Plant. Nos. 2 Mitsubishi Power M701F in 2+2+1 Combined Cycle , with (2,400mw) in 11-months, completion (4,800mw) in 27.5 months 400kV AIS substation. W W W . E L S E W E D Y E L E C T R I C . C O M
Long Track Record (3/3) 11 Julius Nyerere Hydropower Project New Babil Substation Egyptian Highway ITS LAYING FOUNDATION STONE, 26 DURATION 18 MONTHS JULY 2019 Julius Nyerere 2,115 MW HPP RCC-Dam New Babil 400/132 KV Substation Intelligent Transportation System 7 Main Hydropower Project High Roads The Tanzania Electric Supply Company ،Tanesco, Owner Owner Iraq Ministry of Electricity Value USD 90 mn Tanzania Value USD 2.9 bn Value EUR 94 mn Coverage 1,187 km Capacity 2.1 MW Capacity 400/132 KV Substation Location Egypt Location Tanzania Location Iraq ITS for highways in Egypt includes Traffic Management System (TMS) and Toll Collection Engineering, procurement and construction (“EPC”) System (TCS), in addition to the main control A Joint Venture of Elsewedy Electric and Toyota of Rufiji Hydropower Project at Stiegler’s Gorge Scope rooms in the New Administrative Capital, owned Tsusho Corporation has recently been awarded the along the Rufiji River in United Republic of and operated by Administrative Capital For Urban contract of ‘New Babil 400 KV Substation’. Scope Tanzania. 134m RCC-dam, 34 billion m3 reservoir, Scope Development (ACUD). The project will cover six Elsewedy Electric scope of works covers the 3-power tunnels, a powerhouse incl. 9 x 235 MW important highways extending over 1,187 km in design, manufacturing, procurement and Vertical Francis Hydro-Turbines and a 400kV total length. construction of the 400 KV substation, EPC basis. substation W W W . E L S E W E D Y E L E C T R I C . C O M
Business Line Review
Strong Geographical Presence & Deep Market Insight 13 AFRICA 21 FACTORIES IN AFRICA ASIA 5 FACTORIES IN ASIA EUROPE 2 FACTORY IN EUROPE TOTAL OF 28 PRODUCTION FACILITIES 48 INTERNATIONAL OFFICES CABLES & RENEWABLE PROJECTS & ACCESSORIES ENERGY DEVELOPMENT 110 TRANSFORMERS METERS EXPORT EXPORT MARKETS W W W . E L S E W E D Y E L E C T R I C . C O M
State-of-the-art Facilities Utilizing Advanced Technology 14 Advanced technology acquisition and development places Elsewedy Electric at the forefront of world electricity trends, positioning the group to supply the most cost effective, clean technology to regional developing nations. Group-wide sharing of the most advanced production technology extends significant efficiency gains across the group's activities, while effective brand development boosts the group’s profile as a leading energy player. Wires and Cables Meters Transformers (Total Capacity) EGYPT (54%) SLOVENIA EGYPT Certifications Cables Capacity: 149,657 tons Electrometers Capacity: 5.4 mn meters Transformers Capacity: 11,400 MVA Copper Rod Capacity: 121,000 tons PVC Capacity: 132,000 tons EGYPT SAUDI ARABIA (12%) Electrometers Capacity: 4.7 mn meters ZAMBIA Cables Capacity: 32,448 tons Transformers Capacity: 260 MVA QATAR (17%) Cables Capacity: 48,027 tons PAKISTAN Transformers Capacity: 5,500 MVA ALGERIA (12%) Cables Capacity: 33,600 tons ALGERIA ETHIOPIA (2%) Transformers Capacity: 2,880 MVA Cables Capacity: 5,400 tons INDONESIA TANZANIA (2%) Transformers Capacity: 10,000 MVA Cables Capacity: 5,775 tons W W W . E L S E W E D Y E L E C T R I C . C O M
Experienced & Dynamic Leadership 15 Management Pillars of Success Elsewedy Electric’s management structure facilitates quick decision-making and the careful monitoring of developments around the world. The Group ensures that the highest level of management remains in touch with its core activities Efficiency Innovation Quality Elsewedy Electric has a As a global energy As a global energy The Board of Directors track record of completing solutions leader we realize solutions leader we realize critical national and the need of innovation the need of innovation international projects that within the renewable within the renewable Mr. Sadek Ahmed Sadek Elsewedy Non-Executive Chairman require a return to service energy sector. We work energy sector. We work within an extremely tight hard to develop alternative hard to develop alternative Mr. Ahmed Ahmed Sadek Elsewedy Managing Director schedule. energy solutions for future energy solutions for future generations. generations. Mr. Mohamed Ahmed Sadek Elsewedy Board Member Mr. Amr Mohamed Ahmed Labib Board Member Mr. Abdul Rahman Ahmed Ahmed Sadek El-Sewedy Board Member Mr. Ahmed Sadek Ahmed El-Sewedy Board Member Customer-Driven Safety Skill Development We strive to anticipate We boast a track record of Elsewedy Electric ensures Mr. Ahmed Saad El Din Abdo Abu Hendia Independent Board Member customer needs during new positive contributions in hiring employees of the product development; we manufacturing safe highest caliber while Ms. Shahinaz Nabil Amin Fouda Non-Executive Board Member are in constant contact with products. We ensure constantly investing in skill clients, seeking their input consistent safety and enhancement and to further tailor our products quality through strong development. Mr. Sherif Samy Ebada Youssef Non-Executive Board Member to their needs. governance and compliance to applicable Ms. Azza Ahmed Sadek El-Sewedy Non-Executive Board Member regulations and standards. W W W . E L S E W E D Y E L E C T R I C . C O M
Prestigious Client Base 16 Elsewedy Electric boasts an impressive list of both global and regional clients spanning Energy, Telecom, Technology and other industries. The repeat business of large regional government entities and global industry giants is testament to the exceptional quality, speed and service provided by the Group to its clients W W W . E L S E W E D Y E L E C T R I C . C O M
Industry: Wires & Cables 17 Product Range Capacity Split by Country (%) – December 31, 2021 2% 2% Comprehensive range of cabling solutions for residential, industrial, commercial and energy sectors 12% Egypt Saudi Arabia Power Special Fiber Optic Winding Raw Qatar Cables Cables Cables Wires Materials 17% 54% Algeria Ethiopia Production Facilities 12% Tanzania Largest capacity in the MENA region with access to markets with underdeveloped infrastructure creating opportunities Egypt Ethiopia Volume (000 tons) • El Sewedy Cables Ethiopia • Egytech Cables • United Industries KSA 154 156 149 • El Sewedy Cables • El Sewedy Cables KSA 133 122 124 127 121 • Egyplast Qatar • Elsewedy SEDCO • Doha Cables • United Metals • United Wires Algeria • UEIC • El Sewedy Cables Algeria Tanzania • El Sewedy Cables Tanzania 2014 2015 2016 2017 2018 2019 2020 2021 Elsewedy Electric has significantly extended its core wires and cables capacity in recent years, more than doubling its annual capacity since 2007 to approximately 275,000 tons as of December 31st 2021 W W W . E L S E W E D Y E L E C T R I C . C O M
Industry: Transformers 18 Product Range Capacity (MVA) Elsewedy Electric produces a full range of low, medium and high voltage 30,040 transformers -- including power and distribution (step up and step down) transformers Power Installation & Cast Resin Dry Oil Immersed 11,400 Transformers Maintenance 10,000 5,500 260 2,880 Production Facilities Egypt Indonesia Zambia Pakistan Algeria Total The Group utilizes a state-of-the-art set-up to solidify its position as a leader of integrated energy solutions in MENA and Sub-Saharan Africa Backlog (USD mn) Egypt Indonesia • Elsewedy Transformers - Egypt • Elsewedy Electric - Indonesia Zambia Pakistan 119 • Elsewedy Electric - Zambia • Elsewedy Transformers - Pakistan 90 79 78 Algeria • Elsewedy Electric - Algeria FY 2018 FY 2019 FY 2020 FY 2021 Elsewedy Electric is the first and only producer of power and distribution (step up and step down) transformers in the region up to 220KV. The Group benefits from access to untapped markets and low-cost manufacturing bases W W W . E L S E W E D Y E L E C T R I C . C O M
Industry: Electrical Products 19 Project Range Revenue (EGP mn) Cable Accessories Elastimold Egypt is cable accessories manufacturer resulting from a joint venture with Elastimold USA and Elsewedy SEDCO. Services range from engineering, design and correct accessory selection to supplying, training, installation and supervision. 841 823 761 726 Insulators In June 2008, Elsewedy Electric acquired The Egyptian 519 Company for Manufacturing Electric Insulators (ECMEI), a 372 Middle East-based manufacturer of electric ceramic insulators. Others 2016 2017 2018 2019 2020 2021 Explosion Proof Equipment Elsewedy Electric has been manufacturing explosion proof equipment since 1998 through Elsewedy Sedco , which specializes in supplying distinguished Electrical Bulk Materials (Explosion Proof) for the petroleum sector in Africa and Middle East Fiber Glass Poles Elsewedy Electric manufactures fiber glass up to a height of 14m. Through strategic alliances and acquisitions, Elsewedy Electric has become a one-stop shop, offering comprehensive solutions in the field of Electricity & Energy W W W . E L S E W E D Y E L E C T R I C . C O M
EPC: Turnkey Solutions 20 Product Range Revenue (EGP bn) Elsewedy Electric’s Turnkey Solutions segment delivers electricity generating assets and transmission and distribution (T&D) networks on an EPC basis. 25.4 Electricity Construction 22.7 Power Telecom Transmission & 18.9 Generation Solutions & Distribution Infrastructure 15.4 13.2 6.4 9.5 Geographical Reach 2015 2016 2017 2018 2019 2020 2021 The Group focuses on the power sector with strong capabilities that extend to large and complex infrastructure, industrial and commercial projects with an emphasis on turn-key contracting. Backlog – FY 2021 Power PSP Transmission & Distribution • Iraq • Egypt • Algeria • Rwanda • Yemen • Iraq • Chad • Zambia • Cameroon • KSA 27% 29% • Egypt • Angola 35% • Libya • Qatar • Cameroon • Ethiopia EGP 70 bn EGP 70 bn • UAE • Equatorial • Tanzania Guinea 7% 66% • Ghana 36% • Mozambique • Niger Power Generation Egypt GCC Other Transmission & Distribution HV Civil & Networks Elsewedy Electric is a leading engineering, procurement and construction contractor active across the MENA and Sub-Saharan African regions W W W . E L S E W E D Y E L E C T R I C . C O M
EPC: Turnkey Solutions 21 Division | 1 Division | 2 Division | 3 Division | 4 Power Generation Power Transmission & Distribution Construction & Infrastructure Projects Development & Renewable Energy Considered one of the emerging EPC Elsewedy Electric T&D aspires to be a One of Egypt’s most reputable Develops, designs, builds, owns and contractors with an extensive global leader in providing safe & contractors with a strong reputation and operates assets in the field of power experience in the business of Power environment friendly energy solutions to growing business in Algeria, North industry, whether in Power Generation Generation and HV substation projects, the growing infrastructure needs of its Africa, Chad, and Mozambique. or in Transmission & Distribution, Elsewedy PSP provides engineering, valued clients across the Middle East. Through alliances with major outsourcing the corporate capabilities procurement, manufacture and We have the in-house capability to international civil engineering and and expertise and cooperating with construction services, demonstrating its undertake design, engineering, specialist contractors, we are able to major & experienced developers, EPC dominant presence within the Egyptian procurement & management of undertake multidisciplinary projects of contractors & equipment suppliers and market and successful expansion installation activities for electrical power high scale and complexity. focusing in emerging and growing across the MENA Region; backed by transmission & distribution projects on markets, especially in which the Group the Group’s corporate global activities. turnkey basis. has established a strong market position and special relations within. Sectors Served Sectors Served Sectors Served Sectors Served • Power • Power (Transmission Distribution) • Infrastructure • Power • Industrial • Utilities • Industrial • Renewable energy • Infrastructure • Infrastructure • Power • Utilities • Commercial W W W . E L S E W E D Y E L E C T R I C . C O M
Technology: Meters 22 Product Range Revenue (EGP mn) The acquisition of Iskraemco establishes a global metering and measurement giant with the technological strength to build tomorrow’s 3,200 3,258 smart products 2,945 2,723 2,395 Induction Residential Industrial Smart Meters 1,072 Meters Meters Meters 2016 2017 2018 2019 2020 2021 Production Facilities With the production and distribution base to capture worldwide market share, Iskraemeco currently supplies over 3 million meters, mostly to countries in Europe and the Gulf. Distribution Network Slovenia • ISKRAEMECO - Slovenia Egypt EUR 152 mn • ISKRAEMECO - Egypt Backlog – December 31st 2021 In 2007, Elsewedy Electric acquired Slovenia’s Iskraemeco, one of the world’s most technologically advanced producers of metering equipment and services Production Capacity (Meters) ● Iskraemeco group production plants and offices Slovenia Egypt Total ● Iskraemeco references (customer locations) 5,400,000 4,700,000 10,100,000 W W W . E L S E W E D Y E L E C T R I C . C O M
Investment 23 Product Range Elsewedy Electric, jointly and equally with Électricite De France’s EDF Renewables, developed, financed, built, owns and operates two solar PV power plants in Benban, Aswan, developed as part of Egypt’s Round II of the renewable energy feed-in-tariff program launched by the Egyptian government 130 MWp 140,000 120,000 Tons Capacity Households Connected CO2 Saved/Year Benban Solar PV Plant Elsewedy Electric’s Benban Solar PV power plants commenced operations in August 2019, with an in-place Power Purchase Agreement and Network Connection Contract Project Value • USD 140 million Project Location • Benban, Kom Ombo, Aswan Governorate, Egypt Elsewedy Electric contributes to and fully supports the Egyptian government’s plan to generate 20% of the country’s electricity from renewables by 2022 W W W . E L S E W E D Y E L E C T R I C . C O M
Investment 24 Product Range Elsewedy Electric completed the acquisition of 3 wind and 1 hydroelectric energy companies in Greece in June 2019 34,000 63.6 MWp 102,000 Tons Households Capacity CO2 Saved/Year Connected Renewable Energy Assets Public utility off-taker “DAPEEP” (Diacheiristis Ananeosimon Pigon Energias kia Eggyiseon Proelefsis S.A.) guarantees the purchase of all the energy produced at the parks. Acquisition Value • EUR 55 million Project Location • Ermioni, Argolida, Greece • Tsouka, Arcadia, Greece • Kilkis, Macedonia/Achaia, Greece Elsewedy Electric is committed to seeking investment opportunities to provide added value and sustainable solutions W W W . E L S E W E D Y E L E C T R I C . C O M
Development 25 Product Range Industrial Development At Elsewedy Industrial Development, we create fully functional and customizable integrated industrial developments. Over the past decade and a half, we have successfully developed over 25 million square meters of industrial parks, encompassing a multitude of diverse and fully operational large-scale factories, with local and international manufacturers. We have projects in different cities in Egypt and Africa, such as Industria West, Industria East, Al Oula, Industria Sokhna, Industria Asher,Industria Sadat and Tanzania (Dar Elsalam). Logistics Development Elsewedy Logistics Properties originated from Elsewedy’s successes in the industrial development of Pi Parks and Al Oula. Located in Industria West with 14,000 SQM of warehouse ambient and temperature-controlled space, SLP #One will be operated in partnership with DB Schenker Egypt. This joint operation is part of SLP’s strategic partnership agreement with DBS, one of the world’s three largest logistics service providers, will see the two jointly develop innovative and sizeable logistics assets in Egypt and the MENA region. Lately, There is a great interest in establishing logistics facilities in Egypt and other African countries. Through our subsidiary Elsewedy Logistics Properties (SLP) we develop warehousing, distribution hubs, and dry port facilities and FTZs (free trade zones). Our existing projects cover a diverse range of strategic locations. W W W . E L S E W E D Y E L E C T R I C . C O M
Financial Performance
Income Statement Highlights 27 Segmental Analysis Revenues Gross Profit 1% 1% 1% 4% 2% 3%3% 3% 1% 3% 4% 6% 4% 6% 9% 10% 33% 37% 40% FY 2021 49% FY 2021 FY 2020 FY 2020 42% 49% 44% 45% ◼ Wire & Cables ◼ Turnkey Solutions ◼ Meters ◼ Transformers ◼ Electrical Products Renewables – IPP ▲YoY Revenue ▲ Gross Profit Gross Profit Margin (FY 2021) Wires & Cables ▲59.9% ▲36.6% 10.6% Turnkey Solutions ▲11.5% ▲16.5% 14.5% Meters ▼12.0% ▲ 2.0% 29.9% Transformers ▲36.7% ▼19.0% 18.3% Electrical Products ▲39.8% ▲43.9% 46.1% Renewables – IPP ▼ 2.1% ▼ 5.6% 49.9% W W W . E L S E W E D Y E L E C T R I C . C O M
Income Statement Highlights 28 Total Revenue (EGP bn) Gross Profit (EGP bn) Gross profit Gross profit margin 24% 21% 17% 18% 14% 60.5 15% 9.0 8.2 46.6 8.4 42.9 46.4 7.2 42.5 7.1 5.9 24.6 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 • Revenues increased by 31% y-o-y to EGP 60,541 million in FY 2021 on the back of the strong performance of Elsewedy’s cables • Gross Profit increased by 19% y-o-y to EGP 8,435 million in FY 2021, driven mainly by the improved profitability of turnkey segment and the solid growth in turnkey projects. Aside from meters, all other segments showed promising growth for the projects coupled with the solid performance of the wires and cables segment. period. EBITDA (EGP bn) Net Income (after Minority Interest) (EGP bn) EBITDA EBITDA Margin Net Income after Minority 18% 18% 14% 16% 15% 14% 7.8 11% 10% 12% 6.4 6.4 5.0 9% 6.1 6.3 7% 6% 5.3 4.0 4.5 3.9 3.0 3.5 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 • EBITDA climbed by 18% y-o-y, registering EGP 6,267 million in FY 2021, with the EBITDA margin remaining relatively stable • Net Profit after Minority Interest grew 16.7% y-o-y to EGP 3,534 million in FY 2021, up from the net income of EGP 3,027 at 10.4% versus 11.4% in the previous year. million posted in FY 2020. Net profit margin came in at 5.8% in FY 2021 against 6.5% in the previous year. W W W . E L S E W E D Y E L E C T R I C . C O M
Balance Sheet Highlights 29 CAPEX (EGP bn) Dividend Per Share (“DPS”) (EGP) CAPEX CAPEX/Sales 6.3% 3.7% 2.9 1.6 3.3% 2.3% 2.4% 2.6% 1.8% 1.6 1.5 0.8 0.8 0.4 1.1 1.1 0.6 0.3 0.4 0.4 Retention 0 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 • Despite a significant growth revenue over the last 5 years, Elsewedy has maintained a relatively low CAPEX to sales (less than 4% between 2014 and 2018), with a slight uptick for 2019 and a reversion to trend from 2020 • Elsewedy declared a dividend of EGP 0.40 per share for 2020, opting to retain profits for 2021 as the Company onwards. continues on its expansion trajectory. Net Debt (EGP mn) Net Debt Ratios Net Debt/Equity Net Debt/EBITDA 1.0x 6,115.9 0.6x 0.3x 0.2x 0.13x 0.11x 497.0 (562.5) 0.06x (12.0) 0.04x 0.00x 0.96x 0.048x 0.001x (769.0) 0.03x 0.3x 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 • Elsewedy reported a net debt position of EGP 6,116 million as at 31 December 2021, as part of an effort to • Net debt to EBITDA rebounded to previous levels in comparison with 2015 as Elsewedy takes on another wave of curtail commodity delays and operational interruptions that could impact growth plans. The proceeds have been growth and expansion, while mitigating global operational challenges associated with disruption. used towards raw material stocking, related advance payments and the coverage of associated freight costs. W W W . E L S E W E D Y E L E C T R I C . C O M
Consolidated Income Statement 30 EGP Q4-2021 Q4-2020 % Change FY-2021 FY-2020 % Change Sales Wires & Cables 9,364,333,337 5,520,496,850 29,629,000,620 18,533,412,130 Electrical Products 1,431,663,829 1,234,616,384 5,148,322,060 4,725,506,025 Turnkey Projects 8,858,521,292 8,176,453,402 25,764,098,932 23,142,652,613 Total Sales 19,654,518,459 14,931,566,636 31.6% 60,541,421,612 46,401,570,767 30.5% COGS (16,734,470,696) (12,118,604,656) (52,106,121,564) (39,347,557,392) Gross Profit 2,920,047,763 2,812,961,980 3.8% 8,435,300,047 7,054,013,374 19.6% Gross Profit Margin 14.9% 18.8% 13.9% 15.2% SG&A (1,087,248,364) (760,011,228) (3,409,596,075) (2,812,885,615) Other Operating Income 155,501,802 129,620,540 470,252,797 497,104,317 Other Operating Expense (310,893,932) (429,229,454) (567,183,442) (704,279,904) Income from Investments 52,967,339 77,900,554 248,538,462 322,256,736 EBITDA 2,027,274,187 2,088,587,067 -2.9% 6,266,747,767 5,309,460,336 18.0% EBITDA Margin 10.3% 14.0% 10.4% 11.4% Depreciation & Amortization (296,899,578) (257,344,675) (1,089,435,978) (953,251,429) FX Gain / (Loss) (38,312,754) 14,797,447 (40,056,070) (23,052,455) EBIT 1,692,061,855 1,846,039,839 -8.3% 5,137,255,718 4,333,156,453 18.6% Interest Expense (243,410,239) (171,955,202) (729,230,425) (558,406,883) Interest Income 88,031,776 78,769,804 424,915,986 491,440,521 Interest Income / (Expenses) (155,378,463) (93,185,398) (304,314,439) (66,966,362) EBT 1,536,683,392 1,752,854,441 -12.3% 4,832,941,280 4,266,190,091 13.3% Tax (245,802,130) (381,935,109) (1,024,111,242) (959,865,299) Net Income 1,290,881,263 1,370,919,332 -5.8% 3,808,830,038 3,306,324,791 15.2% Minority Interest (50,470,512) (75,138,759) (274,968,512) (278,791,550) Net Income After Minority Interest 1,240,410,751 1,295,780,574 -4.3% 3,533,861,526 3,027,533,242 16.7% Net Income Margin 6.3% 8.7% 5.8% 6.5% W W W . E L S E W E D Y E L E C T R I C . C O M
Consolidated Balance Sheet 31 EGP 31/12/2020 30/09/2021 31/12/2021 Long Term Assets Fixed Assets & Goodwill 8,814,664,639 9,509,509,830 10,175,907,881 Investments 1,524,731,301 2,498,818,920 2,151,957,073 Other long-term Assets 436,434,058 274,084,979 262,400,576 Other long-term Receivables 2,360,964,510 2,525,747,897 1,202,254,015 Total Long-term Assets 13,136,794,508 14,808,161,626 13,792,519,545 Current Assets Inventories 7,490,676,915 11,315,334,021 13,320,680,704 Receivables 13,599,623,740 13,694,958,569 15,043,335,953 Other Debit balance 9,249,566,625 12,491,375,232 12,518,534,412 Due from Related Parties 645,776,969 826,765,441 1,175,912,475 Cash & Cash Equivalents 10,811,687,255 8,637,371,359 11,842,589,348 Total Current Assets 41,797,331,504 46,965,804,622 53,901,052,892 Total Assets 54,934,126,012 61,773,966,248 67,693,572,437 Current Liabilities Bank Overdraft & Short-term loans 8,268,089,866 11,781,160,771 15,032,238,908 Accounts Payable 5,733,816,805 6,787,623,173 8,678,197,095 Other Credit balance 16,783,796,473 17,101,046,005 16,185,004,870 Due to Affiliates 588,944,840 644,494,076 546,964,145 Provisions 1,497,155,181 1,484,466,083 1,960,889,007 Total Current Liabilities 32,871,803,165 37,798,790,108 42,403,294,025 Issued and Paid Capital 2,184,180,000 2,184,180,000 2,184,180,000 Retained Earnings 13,209,556,139 15,355,425,383 16,504,538,981 Others 1,628,194,204 498,112,032 422,339,981 Total Parent's Shareholders' Equity 17,021,930,343 18,037,717,415 19,111,058,962 Minority Interest 869,033,193 1,058,426,646 1,094,835,252 Total Equity 17,890,963,536 19,096,144,061 20,205,894,214 Long-term Loans 1,981,093,136 2,796,196,904 2,926,293,825 Other long-term Liabilities 2,190,266,175 2,082,835,175 2,158,090,373 Total Long-term Liabilities 4,171,359,311 4,879,032,079 5,084,384,198 Total Liabilities & Equity 54,934,126,012 61,773,966,248 67,693,572,437 W W W . E L S E W E D Y E L E C T R I C . C O M
Stock Information 32 Ownership Structure SWDY.CA/SWDY.EY (31/12/2021) Issued Shares Share Price 25.0 Mr. Sadek Ahmed Sadek Elsewedy 32.3% 2,184,180,000 Shares EGP 9.83 Mr. Ahmed Ahmed Sadek Elsewedy Mr. Mohamed Ahmed Sadek Elsewedy Listing Venue Market Cap 17.7 25.0 Free Float The Egyptian Stock Exchange EGP 21.5 bn Elsewedy Electric Stock Performance SWDY EGX 30 W W W . E L S E W E D Y E L E C T R I C . C O M
Corporate Social Responsibility
Corporate Social Responsibility 34 The communities that we operate in are at the center of our success. Elsewedy Electric is always striving to benefit those communities in Egypt and abroad, not only through its economic impact, but also by paying it forward. We recognize the importance of health and education, which has led us to take action on behalf of those in need throughout 2021. Over 15 CSR Initiatives Split Across 4 Categories Accessible Education Sports & Culture Select Accessible Education Initiatives Better Health Inclusive Development Improving Access to Higher Education Since 2017, Elsewedy Electric has been providing merit-based scholarships to students from universities across Egypt in cooperation with the American University in Cairo (AUC, Ain Shams University, German University in Cairo (GUC), Mansoura University, Nile University, Qasr Aini University Faculty of Medicine, and Zewail University. The program began as a pilot in 2016 with two students and has grown to 115 students per year in 2020. Applied Technology University Elsewedy Electric supports The University of Technology by establishing a laboratory and establishing conference rooms within the university. The institution plays a vital role in enhancing the quality of technical education in Egypt in line with the national and international market requirements. Elsewedy Technical Academy In 2011, Elsewedy Electric established the Elsewedy Electric Technical Academy, which aims to support technical and vocational schools to produce the skilled technicians that the industry needs STA aims to prepare students for the exponentially transforming world under the fourth industrial revolution, through introducing them to digital content and the increasing use of computers in the classroom and at work. School books are gradually replaced by digital copies, while we also integrate multimedia content into the teaching and the learning process. In 2020, STA collaborated with various ministries in Egypt, and signed agreements with Banque Misr Foundation. The Academy has also partnered with several telecom and technology companies, including Orange, Huawei, Cisco and Microsoft. 1.2k Students 13 Areas 4 Int’l Certificates 16 Specializations ~30% Female W W W . E L S E W E D Y E L E C T R I C . C O M
Corporate Social Responsibility 35 Select Better Health Initiatives Doha Cables Blood Donation Campaign On January 26, 2020, Doha Cables organized a voluntary blood donation campaign at Mesaieed Factory in partnership with Hamad Medical Corporation (HMC) to support the Blood Bank in Qatar and raise awareness of the importance of donating blood. Employees from various departments attended the campaign. First-of-a-Kind 3D Endoscopy Simulator The Group supported the establishment of the first-of-a-kind 3D Endoscopy Simulator Lab at Kasr Al Ainy Hospital, a lab that trains professionals and surgeons at the obstetrics and gynecology department. It is the only comprehensive surgery simulation center with 3D VR hysteroscopy in Egypt, offering trainees virtual surgical training before practicing what they have learned in real-life surgeries. The lab provides advanced training on laparoscopy and hysteroscopy. Ultrasonic Endoscope System to Zagazig Hospital Elsewedy Electric donated the newest Ultrasonic Endoscope system to Zagazig University Hospital. The ultrasonic endoscope system helps treat and provides correct diagnoses in the gallbladder, digestive system and tumor sampling. Medical Supplies to Healthcare Workers Elsewedy Electric donated more than 1.6 million masks & medical supplies to healthcare workers in Egypt to help combat the spread of the coronavirus. The donation included 1.5 million surgical respiratory masks, 100,000 N95 medical respirator masks, 20,000 protective medical suits, and 100,000 medical hand protectors. Elsewedy Hospital in Sudan Elsewedy Electric has developed a children’s hospital in Sudan focusing on newborns as it seeks to combat infant mortality, where children under the age of five suffer from the highest rates. W W W . E L S E W E D Y E L E C T R I C . C O M
Corporate Social Responsibility 36 Select Inclusive Development Initiatives 3W Networks Calendar Partnership Our partnership with Mawaheb from Beautiful People, a Dubai-based art studio for disabled adults and young people, has lasted since 2012 and continues to date. Every year we produce calendars featuring beautiful artworks of these talented individuals. We share Mawaheb’s focus on creativity, self-development and confidence to bridge the gap between determination and society. Our 2021 calendar draws inspiration from Japanese artist Yayoi Kusama, who is sometimes called ‘the princess of polka dots. Adding colorful all-over marks and dots as their inspiration, the Mawaheb artists exhibited artworks beautifully reflecting the artist’s world. Food Bank Partnership To eradicate hunger in Egypt, Elsewedy Electric has established a partnership with the Egyptian Food Bank (EFB). This partnership aims to support EFB in its mission to serve society through long-term development, awareness and feeding programs. Volunteer teams from Elsewedy Electric supported the program by packing cartons of food for families in need. W W W . E L S E W E D Y E L E C T R I C . C O M
Corporate Social Responsibility 37 Select Sports & Culture Initiatives Sponsorship for Distinguished Squash Champion Elsewedy Electric has signed a sponsorship contract for squash champion, one of the prominent champions in the squash game, who has won many world championships. Road to Tokyo Olympics 2021 RME sponsored Mohab Samer, Egyptian fencing champion, by supporting him in his journey to competing in four World cup tournaments in Egypt, Canada, Poland & Luxembourg until he made it to the Olympics qualified as the 1st place of African qualifiers and 10th Worldwide. RME also sponsored his closed training camp with internationally accredited coach Christian Bauer of France, recognized internationally as the best fencing trainer, to support Mohab in his challenging training phase. Galala Challenge I,II,III,IV RME proudly, for the fourth time, took part in the Galala Challenge together with Power Ride Sports. Galala Challenge is a 137km ride with around 1,300m of elevation, which requires inspiring, persistent and challenge-oriented participation. Trailmaster Race Recognizing sports as an important part of our culture, RME has always supported our athletes. In 2020 we partially sponsored RME people who wished to participate in the Trailmaster race event (Run Through Nature) in collaboration with The TriFactory. Tough Mudder RME proudly took part in the Tough Mudder event under the auspices of Emaar Misr, ensuring that challenging obstacles in the game were constructed following the highest safety and quality standards. W W W . E L S E W E D Y E L E C T R I C . C O M
Health, Safety & Environment
Health, Safety & Environment 39 We believe that our employees are our most important asset. The safety of our employees, subcontractors and stakeholders is our highest priority. We strive to create and maintain a safe operating culture by prioritizing safety in everything we do. We believe in earning the confidence of consumers, shareholders and the wider It is our belief that: society. We strive to be a good neighbor • Every incident can be prevented and contribute to sustainable development • Safety can be managed • Our management is responsible for ensuring the safe operations • Protecting the environment is our responsibility In Elsewedy Electric we are all committed to: • Pursue the goal of no harm to people • Train our employees on how to perform their jobs safely • Provide the necessary resources for a safe and clean workplace and environment • Plan for, respond to and recover from any emergency, crisis and business disruption • Promote best practice in our industry • Minimize our environmental impact through efficient use of materials and energy Our HSE Policy will be regularly reviewed • Encourage a culture in which all employees share our commitment to safety and environment to ensure ongoing suitability. The commitments listed are in addition to our • Continuously improve the way we manage safety and environment protection in our operations basic obligation to comply with Elsewedy standards W W W . E L S E W E D Y E L E C T R I C . C O M
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