EFG Hermes - Thoughts on Valuation - April 2016

PRIME INVESTMENT RESEARCH AUTOMOTIVE |EGYPT

GB AUTO – INITIATION OF COVERAGE JANUARY, 14TH

2016

PRIME INVESTMENT RESEARCH

FINANCIAL SERVICES |EGYPT EFG HERMES – THOUGHTS ON CURRENT VALUATION STATUS

APRIL 24TH, 2016

WE INITIATE COVERAGE ON … HRHO … ASSIGNING A “BUY” RATING

EFG HERMES …

REMAINS EGYPT`S MARKET LEADER AND ON TOP OF MOST PLAYERS PARTICIPATING IN THE GCC

REGION.

CONTINUOUS SEARCH AND EFFORTS FOR VALUABLE GROWTH OPPORTUNITIES THROUGH

PENETRATING NEW BUSINESSES TO CONSISTENTLY ADD TO ITS SHAREHOLDERS` WEALTH.

IN 2015, WE SAW EFG HERMES ADDING THE LEASING BUSINESS TO ITS STRUCTURE, AND IN

2016 IT PENETRATED THE MICRO FINANCE BUSINESS THROUGH ONE OF THE WIDEST SPREAD

CHAINS IN EGYPT ACQUISITION. MARKING NON-CYCLICAL BUSINESSES ADDITION FOR RISK

DIVERSIFICATION … ANTICIPATE IMPRESSIVE FIGURES!

EFG HERMES SEEKS GROWTH IN ITS WELL ESTABLISHED SEGMENTS THROUGH ADDING MORE

MARKETS TO ITS FOOTPRINT ACROSS THE BOARD; SENDING POSITIVE VIBES.

HOWEVER, DURING CURRENT HIGH VOLATILITY TIMES WE REMAIN SKEPTICAL CONCERNING

SHORT TERM PATH FOR ORDINARY BUSINESS, BUT PE IS GOING ON TRACK.

WE INITIATE COVERAGE ON EFG HERMES, SETTING FAIR VALUE AT EGP

17.54/SHARE IMPLYING 73.8% UPSIDE POTENTIAL.

HENCE, WE ASSIGN HRHO A “BUY” RATING.

2

PRIME INVESTMENT RESEARCH EFG HERMES – THOUGHTS ON VALUATION

APRIL, 2016

We valued EFG Hermes at EGP 17.54/share driven from a sum of the parts valuation; comprised of a P/BV multiple median of 0.84 estimated for the entity`s standalone book value. Added to the company`s estimated sale value for commercial banking operations through Credit Libanais bank and micro finance investment; which yielded a 73.8% upside over market price of EGP 10.09/share, after adding net cash position and non-core assets market value. EFG Hermes is Egypt`s and among the GCC leading investment banks, with operations executed almost across the whole Arab world. The company continues to target creating shareholders` wealth through enlarging its structure through new businesses penetration. Recently the company penetrated the leasing business through a fully owned subsidiary that showed impressive performance and ranking in a matter of half an operating year, being inaugurated in June 2015. EFG continued its diversification through an acquisition for the widespread and successful microfinance enterprise “Tanmeyah”. such additions mark a new less volatile revenue generating streams, in time the region`s investment banking industry are suffering from the bearish outlook. Yet, EFG Hermes` size and reputation continues to secure deals backlog, while competing in a downtrend to book highest execution shares through its brokerages operations. The company is also known to possess an active asset management division, and a tactical private equity team, with recent focus directed towards the ever growing renewable energy investments.

In our case, EFG operates in what can purely be defined as a cyclical industry. However, in order to apply a DCF valuation, we would then need to go through forecasting;

1) Brokerage revenues, through for instance setting our expectations for GDP in each market the company operates within, in order to link their respective stock exchanges performance to GDP, which is justified given empirical evidence that over long term aggregate equity market valuation coincide to an extent with GDP changes. Going from such point, we would then be required to set assumptions for EFG Hermes market share in each market, and hence, the company`s fees levied over executions for the wide range of clients` types; which requires executions value projections.

2) Asset management revenues, through setting projections for the company`s under management assets performance relative to tracking indices, which requires setting assumptions for how AuMs grow or shrink in size, incentive and performance revenues as a result of performance.

3) Private Equity revenues, through assuming new investments; requiring expectations for sectors, deals values, returns and deals terms and conditions (seed financing, jurisdiction and partnerships).

4) Investment banking revenues, through anticipating Equity, Debt and M&A new deals to be acquired, their values and hence fees and coverage and markets of executions.

But is it reasonable to anticipate indices levels and hence total executions value during such highly volatile times? To anticipate the IB division deals types, count and values beyond what the company announce it has in its backlog? to forecast the PE`s active hunt for new investment opportunities? At what planned exit IRR? In what sector? At what value? What about jurisdictions and partners? If yes, how? we believe that in such times where volatility is low in comparison with the current ups and downs we see, such forecasts can be fulfilled with only including absolute subjectivity based on historical records. And since historical records are never good indicative in highly cyclical industries not only correlating positive or negative events but also accounting for politics, that all together narrow down to investors` sentiments, their risk tolerance, required returns and investment styles and overlook over anticipated risk/reward matrix. We hence decided that a trailing multiple based on fundamental is the best indicative of where EFG`s valuation might be standing from its current market price.

EFG HERMES … HEDGING VOLATILITY AHEAD THROUGH NEW NON-CYCLICAL BUSINESSES PENETRATION

Stock Data Outstanding Shares [in mn] 614.8 Mkt. Cap [in mn] 6,204.3 Bloomberg – Reuters HRHO EY / HRHO.CA 52-WEEKS EGP 6.37 – EGP 14.14 YTD AV. DAILY TURNOVER EGP 37.1MN

Ownership Bank of New York (GDRs) 10.5% Dubai Financial Group 11.8% Abdel Moneim Al Rashed 8.7% Free Float 69.0%

Stock Performance

Source: Bloomberg

0

2

4

6

8

10

12

14

16

HRHO EGX 30 - rebased

“BUY” MARKET PRICE EGP 10.09 FAIR VALUE EGP 17.54 POTENTIAL 73.8% UPSIDE

INVESTMENT GRADE “VALUE”

Report Content Valuation 4

Risks & Catalyst 5 Company Synopsis 6

1- Brokerage Operations 8 2- Asset management 10 3- Investment Banking 11 4- Private Equity 13

Two New Pillars

1- Leasing Business 14 2- Microfinance 15

Financial Summary 16 Disclaimer 18

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APRIL, 2016

Although we strongly believe in FCF valuation methodologies` (FCFF or FCFE) abilities to unlock and breakdown uncertainties to the most reasonable level. But only to the extent of cases where short term visibility over market dynamics is assumed, in other words, in cases we believe that as deeper we dig we get closer to reality and away from being pure subjective. We did not find the idea appealing to apply a DCF valuation for such industry, especially in current times when even setting a base year for projection becomes unrealistic; as the MENA region, EFG Hermes` core focus up till now, have been very volatile with too much politics and unexpected economic events currently priced in within the region`s indices, but yet with no visibility where or when it ends. Instead of setting assumptions setting risk adjustments through premiums and set reasonable growth projections that can be correlated with other multifactor fundamental or macro-models; we see multiple based valuation as the most suitable in our case.

Our choice for multiple-valuation was based on our view as early stated for the highly volatile scene, whether for estimating markets` executions, market shares, fees, deals prospectus, that are dependent variables at the end for the same one independent variable “Investors Sentiment” with its coefficients being news on economic event and political status. And since we drove our multiple based valuation from comparables across the world, from markets to some degree in imitating EFG Hermes client base, we then be indirectly accounted for the sentiment variable, through being priced in already in comparables price-to-book multiple; the picked sample was also narrowed down by market capitalization in respective currencies as much as reasonable to match EFG relevant size.

Validity of Price to Book value empirically can be extracted from:

1) According to the Bank of America Merrill Lynch Institutional Factor Survey, 53% of respondents considered P/BV when making an investment decision, a matter strengthening the use of P/BV multiple valuation concept as a viable one.

2) Intuitively, book value attempts to represent, on a per share basis, the investment that common shareholders have made in the company. Book Value is a cumulative balance sheet amount, which is generally positive even when EPS is approaching zero and being not indicative or turns negative, P/E for such cases becomes meaningless in comparison within multiple choices. In same essence, book value per share is more stable than EPS; P/B may be more meaningful than P/E when EPS is abnormally high or low or is highly in periods of volatility.

3) In adjusting P/BV, the multiple also shows a derivation of a very important fundamental forecast methodology, driven from the Gordon growth model, that it can directly be related to valuation based on forecasted fundamentals:

Estimating a company`s adjusted P/BV based on forecasted fundamentals, for instance assuming the Gordon growth model and using the growth, retention and ROE leads to a justified measure of the most recent BV in terms of anticipated fundamentals as

B

R

Such equation without getting the hustle of derivation basis, states that simply such justification is directly dependent on the relation between ROE to the required return.

Among the advantages of the BV multiple also is its ability to be linked to the present value of expected future residual earnings; stating that if the expected earnings has a zero present value, only covering its required return period by period, then we should see a justified multiple of 1. While if the discounted residual earnings are positive in that case we should see a multiple of above 1 or vice versa.

B

V

B

4


APRIL, 2016

SOURCE: BLOOMBERG, PRIME

SOURCE: EFG HERMES, PRIME

Valuation 1- Investment Bank Valuation

We used EFG Hermes` standalone total equity as a reference for our multiple calculations, We chose to apply a multiple based valuation for EFG Hermes to appropriately reflect the value it should have been trading at as per 2015`s book value. We applied a P/BV multiple of 0.84 driven from the median value of the list of comparables we chose. We used the standalone equity value as it is believed to reflect contribution to the IB, Asset Management, Brokerage, Private Equity, and Leasing business which was established during 2015. It is worth mentioning that, P/BV for the sector showed sharp drop across the world`s markets suffering from higher volatility.

Sample Ticker Name P/BV - 2015 Market Cap - Respective CCYS

USA LM US Equity LEGG MASON INC 0.856 3,670

SF US Equity STIFEL FINANCIAL 0.828 2,140

KCG US Equity KCG HOLDINGS-A 0.774 1,035

Sweden CATB SS Equity CATELLA AB 1.196 1,514

ECEX SS Equity EAST CAPITAL EXP 0.743 1,744

England III LN Equity 3I GROUP PLC 1.192 4,669

France ROTH FP Equity ROTHSCHILD & CO 1.063 1,494

FFP FP Equity FFP 0.542 1,692

Italy EXO IM Equity EXOR 0.800 7,576

Spain ALB SM Equity ALBA 0.598 1,982

India NINV IN Equity NALWA SONS INVES 1.006 3,285

PGLT IN Equity PNB GILTS LTD 0.749 4,401

CGCL IN Equity CAPRI GLOBAL CAP 0.549 4,848

BENG IN Equity BENGAL & ASSAM C 0.330 4,268

OSCR IN Equity OSCAR INVESTMENT 0.213 3,802

Malaysia OSK MK Equity OSK HOLDINGS BHD 0.551 2,313

Pakistan OLPL PA Equity ORIX LEASING 1.427 3,893

Thailand KGI TB Equity KGI SECURITIES T 1.351 7,210

CNS TB Equity CAP NOMURA SECS 0.951 5,075

Philippines V PM Equity VANTAGE EQUITIES 0.753 6,677

Sri Lanka TAP SL Equity TAPROBANE HOLDIN 0.779 4,713

CFVF SL Equity FIRST CAPITAL HL 1.212 2,521

Botswana LETSHEGO BG Equity LETSHEGO HOLDING 1.5710 5,513

South Africa AEE SJ Equity African Equity E 1.863 4,250

ZED SJ Equity ZEDER INVESTMENT 0.988 9,518

Egypt BTFH EY Equity BELTONE FINANCIAL 1.187 3,377

PIOH EY Equity PIONEERS HOLDING 0.940 5,860

UAE DIC UH Equity DUBAI INVESTMENT 0.764 9,516

Median 0.842

Standalone Shareholders Equity Outstanding Shares BV/Share EGP 6,756mn 614.8mn EGP 10.99/share

Comparables Median 0.84

Implied Standalone Value EGP 9.25/share

2- Commercial Bank Proceeds In March 2016, EFG Hermes announced exiting its 63.7% stake; the sale of a 9.4mn shares representing 40% in Credit Libanais at a price of USD 33/share to a consortium of Lebanese and Arab investors, subject to legal procedures including the Central Bank of Lebanon approvals; with execution stated at no later than end of June 2016. Beside, selling the remaining stake of 5.5mn shares indirectly owned with execution taking place at same pricing terms, up to end of May 2017. The sale would generate proceeds of EGP 2.7bn in 2016 added to proceeds of EGP 1.6bn in 2017 discounted for 1-period at a cost of equity of 23.2%, utilizing an equity risk premium of 8%, risk free of 14.4% and a statistically adjusted beta of 1.11.

Total Sale Proceeds Discounted proceeds Outstanding Shares EGP 4.33bn EGP 4.03bn 614.8mn

Implied Value EGP 6.55/share

5


APRIL, 2016

SOURCE: EFG HERMES

3- Microfinance Business – Investment Value at BV Tanmeyah was acquired at a total investment cost of EGP 423mn, equivalent to EGP 0.69/share added to total valuation.

4- Non-core assets We valued the company`s 4.7% investment in SODIC at April 21st, 2016 closing price of EGP 11.1/share, which yields a total value of EGP 176.8mn equivalent to EGP 0.29/share.

5- Finally we added the standalone net cash position of EGP 469.1mn equivalent to EGP 0.76/share.

Valuation Summary Sum of Parts Share Outstanding Per Share Standalone Equity Valuation EGP 5.69bn 614.8mn EGP 9.25

Bank Proceeds EGP 4.03bn

EGP 6.55

Non-core - SODIC Market Value EGP 0.176bn

EGP 0.28

Micro-finance Investment Value EGP 0.423bn

EGP 0.69

Net Cash (debt) EGP 0.469bn

EGP 0.76 Total EGP 10.79bn

EGP 17.54

Upside Risks Stability in oil prices, before showing upward trends; hence enhancing investors` sentiments in markets

especially in GCC.

End to the current geopolitical tension in MENA region, incentivizing foreign investors` sentiments further than current levels.

EFG Hermes replicating 2015 investment banking performance or book more deals during 2016.

Regaining Incentive fees over better performance for the asset management division.

More successful exits for current investments under the PE division management at high IRRs.

Successful and further brokerage operations expansions throughout Asia and Africa as early planned.

Further EGP devaluation, is additive to proceeds from regional operations and commercial bank stake sale.

Downside Risk

The CBE to continue limiting MMFs percentage to deposits in Egypt, impacting AuMs.

Continuity of adopting contracting monetary policy by the CBE in attempts to curb inflation through further hikes in interest rates; seen adverse empirically on stock returns and valuation.

Any manufactured appreciation, would adversely hurt proceeds from regional operations and bank stake sale.

Investment Catalyst

We are awaiting impressive performance from EFG Hermes lease and the micro finance business in 1Q2016.

Concluding Credit Libanais stake sale successfully, benefiting from the EGP devaluation, while opening up for funding more growth opportunities.

Acquisition in non-cyclical businesses; likewise leasing and microfinance that support non-cyclical in nature financing are anticipated utilizing the bank`s sale proceeds.

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APRIL, 2016

EFG HERMES BOD

SOURCE: EFG HERMES

EFG HERMES OWNERSHIP STRUCTURE

SOURCE: EFG HERMES

FG H m … A t c

EFG Hermes S.A.E was established in 1984, as the Egyptian Financial Group that was later incorporated into EFG Hermes. Since inception, the company has struggled to diversify its business through adding more investment arms consistently and penetrating new areas of growth to become a fully fledged investment bank with a portfolio of stakes in the most rapidly growing businesses.

One of the main positive attributes for EFG Hermes, is that it has always been characterized by a professional management, that shall always be considered as a premium over valuation when looking for the company`s upcoming horizon. As EFG Hermes with currently around 870 professionals, has been able to continuously expand operations overseas and regional. A prestigious track record of regional markets` penetration and a global outlook, grabbing global clients` attention to the GCC markets, led EFG Hermes to become among the globally recognized leading investment banks, with current aggregate assumed GCC leadership.

EFG Hermes is a fully fledged investment bank, capitalizing on several divisions complementing each other to preserve the company`s ongoing operations and market share in some of the MENA leading countries by turnover. EFG execute in 10 of the MENA region`s most active markets, Egypt, UAE, KSA, Qatar, Oman, Jordan, Kuwait, Bahrain, Lebanon and Morocco through its securities brokerage arms. EFG executes transactions for investors from over 11 different nationalities going from the GCC to Europe and USA. A leading investment banking division, has been able to locally differentiate its offering, beside being strongly present in the regional scene through mega Equity, M&A and Debt transactions; with the support of the brokerage arm through its wide reach and diversified client base exceeding 100k investors across the globe. EFG Hermes also has an active asset management arm through which it competes over capital markets strongly supported by 50 professionals. The company`s private equity division has also been successful in conducting valuable partnerships and getting involved in successful investments with proven profitable exits with high multiples when the business matures.

EFG Hermes has also penetrated the commercial banking business through a 63.7% majority stake acquisition in 2010 in Credit Libanais (CL) Bank - Lebanon for USD 577.8mn. The bank is among the top 5 leading banks in Lebanon with reach extending to 290k customers in Lebanon, Cyprus, Senegal, Bahrain and Iraq. CL specialized in commercial banking, offering the wide spectrum of services including retail banking, checking and savings accounts, debit and credit cards, personal loans and commercial retail loans, insurance, corporate banking, international banking services, SME banking, private banking and asset management. The bank has 73 branches, 69 of which are located in Lebanon, 2 in Iraq, 1 in each of Cyprus and Bahrain beside a representative office in Canada and a subsidiary in Senegal. The bank used to contribute impressively to EFG Hermes top line representing 59.9% in 2015 out of total EGP 2,616mn.

Diversifying its revenue streams; EFG concluded the leasing and microfinance businesses penetration successfully in June 2015 and February 2016 respectively. Through establishing its leasing arm, EFG devoted EGP 100mn of capital as the arm`s seed funding. The leasing business in Egypt is currently seen as one of the most promising areas to currently be involved in. The company in continuance for its diversification away from traditional volatile revenue streams, acquired a 76.7% stake in “Tanmeyah” a well established microfinance company in a EGP 345mn transaction, to open up the road for the high revolving lower income financing business, and recently in April acquired EGB stake to raise its holding to 94%.

Board Members

Mona Zulficar Chairman/ Non-Executive

Karim Awad CEO/ Executive

Yasser El-Mallawany

Y

Non-Executive

Takis Arapoglou Non-Executive

Robert Eichfekd Non-Executive

Thomas S. Volpe Non-Executive

Marwan Elaraby Non-Executive

Joseph Iskander Non-Executive

Jonathan Cimino Non-Executive

Charles Mcveigh III Non-Executive

10.5%

11.8%

8.7%

69.1%

Bank of New York (GDRs)

Dubai Financial Group

Abdel Moneim Al Rashed

Free Float

7


APRIL, 2016

Clean-up measures to optimize growth prospects

The company`s regional diversified model did not help prevent the adverse impact of to the 2011-2013 Arab Spring period on investors` sentiments. By May 2013, EFG decided to take measures for the purpose of mitigating the probability of likewise shocks hitting the markets in which it operates. EFG Hermes launched a 2-phase strategy aiming for structural reforms. Phase 1 targeted a micro-restructuring plan, through cleaning up its balance sheet by non-core assets divestiture and operational cost base optimization. To pave the road for phase 2 with core focus on new businesses` and markets` penetration to augment revenue streams through looking for value additive opportunities beyond and within Egypt`s borders.

Phase 1: May 2013/M ch 2 4 … the company`s management went through its 4-axis phase, targeting financial strength, and appreciation.

As the company experienced a harsh year in 2013, leading to a net loss on the back of high operating expenses; the implementation of the cost optimization aims at reducing the Investment Bank`s operational expenses to around EGP 500mn; and targets a 50% employees` expenses-to-revenues ratio as a benchmark to reach. The purpose behind setting such goals is to maintain the IB`s profitability in times the markets turn unfavorable; mainly on the back of the vacillating political and economical theme in the MENA region.

Phase 2: aimed to take phase 1 reforms to the next level of expanding

- During this phase, EFG targeted to maintain its leading position. - Maintaining GCC penetrations and expansions. - Incorporating new investments, negotiations were taking place for an alliance in the consumer finance

business; looking for synergies. - Penetrating sub-sahara countries, and establishing a new eastern Africa hub servicing the region growth.

While Phase 2 is still in process, fruits are being collected. Through the successful inauguration for a microfinance company added to the self-funding leasing business launch with purposes to consistently enhance both businesses capital for enlarging capital available for financing through high leverage multiples.

I. Cost Optimization II. Non Core Assets III. Clean Balance Sheet V. Returns to Shareholders

- Restructuring Senior

Management Contracts.

- Layoff expensive &

unproductive staff.

- Combination &

Elimination of functions.

- Minimize non-employees

expenses.

- Sale of Old Headquarter

in Dokki.

- Sale of the majority of

HRHO ownership in

SODIC with only 4.7%

remaining currently.

- Renting and/or utilizing

other unsold assets; as

was the case with the Nile

City Towers office space

leased for 15 years.

- EFG cleaned its balance

sheet to fruit fair

representation starting

2014.

- To do so, EFG had to

impair all investments

that have deteriorated in

value whether in Syria,

Oman or Kuwait.

- An EGP 425mn share

buyback, retained at one

of the company`s

subsidiaries.

- Studying new lines of

businesses.

EFG Hermes – Office Presence – Egypt 1984

Investment Banking

Brokerage Asset

Management

Private Equity Leasing Arm

Micro-finance

Lebanon – 2010 - Commercial Banking – Credit Libanais (CL) … currently pending Lebanon Central Bank approval for Divestiture

UAE - 2002

KSA - 2006

Oman - 2008

Kuwait - 2008

Jordan - 2010

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APRIL, 2016

SOURCE: EFG HERMES

I v tm t B k … 4-Operating Pillars 1- Securities brokerage

The Arab world leading brokerage firm by aggregate position, catering services to a wide spectrum of investors; foreign, Arab and local institutions and high net worth clients with the region`s largest brokerage team comprising around 120 sales and traders personnel specialized by client type and geography. The securities brokerage division offers a wide range of services, including phone-execution orders, online trading platform providing multimarket functionality in addition to margin trading for Egyptian retail investors. Services are complemented by custody services, fundamental and technical research products and insights and an ATM facility for Egyptian retail investors.

EFG Hermes is differentiated by its extensive client reach tool, offering face-to-face contact through representative branches. Beside the virtual communication taking place through the company`s advanced online trading platform accessing multiple markets simultaneously. A call center and an institutional and high net worth desks are also available, for continuous support. EFG Hermes knock regional doors, through its prestigious conferences held annually for valuable networking opportunities and discussion panels. During March 2015, EFG held its 11

th annual one-on-one

conference in Dubai, which grabbed the attention of 450 fund managers representing over 200 financial institutions from 28 countries with assets under management exceeding USD 10tn. In September 2015, London 5

th annual conference held, where 250 fund managers attended representing 117 financial

institutions from 26 countries with aggregate assets under management exceeding USD 8tn. Both meetings witnessed over 10k meetings as per EFG Hermes.

A growing track record and reputation has led to stability in Egypt`s leadership, while continuously competing to trend upwards in ranking over all other operational markets, with the exception of KSA and Jordan which both saw 1-rank drop in 2015 in comparison with 2014. In 2015, EFG Hermes leadership and apparently investor sentiments towards the company were translated in capturing an average of 1-quartile from aggregate executions in the wide span from Egypt to Oman. We remain optimistic concerning the intention for acquiring a controlling stake of approximately 51% of Invest & Finance Securities Ltd. for USD 1.9mn operating in Pakistan`s Karachi Stock Exchange, as it indicates the company`s expansion path and its direction geographically rather than straight forward add in prospectus to valuation, in other words, EFG Hermes active management maintains markets test. Securities brokerage

Regional Presence, Market Share, Ranking 2013 2014 2015

Country Ranking Market Share ranking Market share ranking Market share

Egypt 1 29.1% 1 27.4% 1 32.7%

Dubai – DFM 6 10.8% 6 12.1% 5 14.7%

Abu Dhabi - ADX 6 10.9% 3 17.4% 2 27.4%

Nasdaq Dubai - - - - 1 52%

Kuwait 3 23.3% 2 25.6% 1 27.3%

Oman 7 14.0% 4 18.7% 3 21.7%

KSA 7 0.7% 5 1.0% 6 1.1%

Jordan 12 5.3% 3 8.8% 7 6.6%

Qatar NA 9.8% NA 10.0% NA 13.0%

Bahrain NA 3.5% NA 9.4% NA 3.6%

Lebanon NA 3.5% NA 3.9% NA 2.5%

Morocco NA 1.9% NA 2.3% NA 1.4%

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APRIL, 2016

EFG HERMES CLIENTS` DIVERSIFICATION DAILY AVERAGE COMMISSION PER QUARTER – USD `000

SOURCE: EFG HERMES

SOURCE: EFG HERMES

SOURCE: EFG HERMES SOURCE: EFG HERMES

The daily average commissions reached USD 160k in 2015 registering a downfall of approximately 33% y-o-y, driven from weaker markets and lower sentiments over the impact of oil prices drop in the region; lending to some governmental tightening measures. While in 4Q2015 the average commissions over the quarter reached USD 173k/day registering 29% over 3Q2015 due to relatively higher q-o-q aggregate liquidity in markets, but were 16% down y-o-y. The drop in average commissions was driven by a drop in executions, taking revenues down across the board of operating markets. Still EFG Hermes, managed to account for total executions of USD 32.4bn, although the figure indicates the company`s well establishment it was 31% lower y-o-y; but still managed to be translated into revenues of EGP 344mn which was 24% lower y-o-y compared to EGP 451mn,. Although markets were in turmoil, institutions` executions favoring EFG Hermes were the main drivers in accounting for the improvement in ranking across most markets; as the company enjoys a well diversified client base from developed and developing nations.

Executions - USD mn 2012 2013 2014 2015 Egypt 5,672 4,710 9,425 6,839 DFM 1,636 4,658 12,547 6,075 ADX 837 2,511 6,799 4,514

Nasdaq Dubai - - 1,044 1,401 KSA 1,460 2,935 5,765 5,039

Kuwait 6,494 9,269 5,466 3,662 Oman 373 823 1,096 780 Jordan 167 228 280 317

Revenues - EGP mn 2012 2013 2014 2015 Egypt 179 159 252 209

Change 13.3% -11.2% 58.5% -17.1% UAE 15 49 125 75

Change -11.8% 226.7% 155.1% -40.0% KSA 7 12 23 17

Change -22.2% 71.4% 91.7% -26.1% Kuwait 30 45 30 25

Change 20.0% 50.0% -33.3% -16.7% Oman 5 12 14 11

Change -16.7% 140.0% 16.7% -21.4% Jordan 4 6 7 8

Change -20.0% 50.0% 16.7% 14.3%

132

99 121

98 125

167

131 147

282 285

184 206

156 176

134

173

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

0

50

100

150

200

250

300

1Q20

12

2Q20

12

3Q20

12

4Q

2012

1Q20

13

2Q20

13

3Q20

13

4Q

2013

1Q20

14

2Q20

14

3Q20

14

4Q

2014

1Q20

15

2Q20

15

3Q20

15

4Q

2015

Daily Average q-o-q change %

49.26

19.93

23.39

5.68 5.31

0.33 0.01 0.98

Egypt

UAE

Kuwait

Jordan

Oman

Saudi Arabia

Qatar

Others

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APRIL, 2016

EFG HERMES CLIENTS` DIVERSIFICATION – USD BN

FUNDS CLIENTS CONTRIBUTION BY DESTINATION – 4Q2015

SOURCE: EFG HERMES

SOURCE: EFG HERMES

2- Asset Management

EFG serves a well diversified client base including sovereign wealth funds, endowments, foundations, and pension funds; with a team of 50 professionals across Egypt, UAE and KSA. The division currently manages equity and fixed income funds, beside single country, sector and region specialized strategy funds, as well as managing shariah compliant and absolute return and indexed funds.

EFG had USD 2.6bn of AuM by 2015 end, on a y-o-y basis AuM dropped by 16.1% in comparison with 4Q2014 USD 3.1bn. Looking at quarters average 2015 dropped only by 11.02% versus a year earlier. Same adverse impact of lower sentiments and hence weaker markets headlined the decline, as 4Q2015 AuMs represents the historical low level for the company`s under management assets. Historically, the ups and downs were caused by gains versus losses in AuMs values; however, recently redemptions were of a major factors enlarging declines, as out of 2015 average 11% decline, redemptions represented 3.8%.

The drop came across the different vehicles EFG Hermes manages, although there were new inflows from the company`s capture of a new equity portfolio in Egypt beside flow injection in an existing KSA equity fund, and 3 new equity funds in KSA in addition to new institutional equity portfolios, outflows surpassed inflows. However, as the company noted that more than 50% of AuM is denominated in EGP while the reported figures are in USD which shows the devaluation effect on AuM values, a matter enlarging aggregate AuM declines in USD relative to each fund/portfolio respective currency.

One major reason for the drop in Money Market Funds (MMFs) was the recent CBE`s decision to lower maximum amounts allowed by banks for investment in MMFs to 2.5% of banks total local currency deposits from 5%, and/or 50x of 2% of banks tire 1 capita, whichever is lower. Similar to 2014 regulatory actions that negatively impacted asset managers in Egypt, however, MMFs are already characterized by relatively lower fees. Although 2015 was a tough year across GCC and Egypt, we believe EFG Hermes asset management was active relative to others, as the division`s revenues came 21% lower in 2015 standing at EGP 215mn in comparison with EGP 272mn in 2014, driven by the company`s diversified AuMs. A drop of only 12% in regional AuM revenues standing at EGP 176mn in 2015, adjusted a 46% drop in Egypt`s AuM revenues that came in at EGP 39mn.

3.3 3.4 3 3.1

2.6

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

0

0.5

1

1.5

2

2.5

3

3.5

4

2011 2012 2013 2014 2015

AUM % Change

0.1 0.2 0.2 0.2 0.1 0.6 0.6 0.7 0.7 0.7

2 1.8 1.2 1.1

0.9

0.6 0.8

0.9 1.1 0.9

0

2

4

2011 2012 2013 2014 2015

Egypt Equity Funds Regional Equity Funds

Money Market & Fixed Income Portfolios

41.00%

15.00%

30%

11.00%

2% 2% Foundation/ Pension/ Insurance

Sovereign Wealth Funds

Institutions

High Net Worth/Families

Private Banks

Others

72.00%

28.00%

MENA

Europe

11


APRIL, 2016

SOURCE: EFG HERMES

AGGREGATE EQUITY OPERATIONS USD 20.5BN IMPRESSIVE ADVISORY OPERATIONS ON M&A – USD 53.5BN USD 4.3BN IN DEBT OPERATIONS

3- Investment Banking

EFG leverages its wide reach of serving around 102k investors in MENA, US and Europe already through its brokerage operations, a winning card in capturing large sized deals, in anticipation from companies for high coverage ratios for their high profile equity placements. EFG Hermes has a long track record showing excellence in advising on over 200 different transactions, divided between Equity, Debt and Mergers & Acquisitions totaling over USD 78bn; from which some of the largest regional deals was booked in favor of EFG Hermes. Beside equity placements, debt raising and restructuring and M&A seeking clients pursue EFG services, being known for negotiation skills and ability for securing needs, plus deal closures in timely manner across the region.

Although brokerage and asset management divisions fell in revenues in 2015, the year closure was in good shape with revenues increasing to EGP 163mn, to record 18% increase over 2014. On contrary to the asset management stream, domestic operations showed almost 2 folds increase in revenues to end the year at EGP 142mn over EGP 48mn in 2014. While regional revenues fell by 77% to EGP 21mn down from EGP 90mn in 2014.

The reason behind the overall solid performance can be attributed to the closure of 10 equity and M&A transactions in 2015. EFG managed the sale of El Rashidi El Mizan in a USD 95mn cross border transaction, also took charge for the USD 100mn sale of Egyptian electronic payment processor Fawry, as well as advising on selling Schweppes Egypt to Coca Cola company. EFG Hermes as the lead or joint book runner for 4 major IPOs (Orascom Construction, EDITA, Integrated Diagnostic Holding, and Emaar Egypt), the 4 IPOs were characterized by exceptionally high subscriptions and coverage, in addition to that IDH listing marked EFG`s 1

st operation in London stock exchange. During 2015, financial advisory was also provided for Palm

hills USD 216mn worth rights issue, GB Auto USD 126mn worth rights Issue, beside being in advisory joint role and underwriter on Amer group`s backed security offering of USD 28mn. By all measures 2015 was exceptional with a total worth of deals closure of USD 2.8bn. In 2016, EFG has YTD booked some major transactions through Domty EGX listing, with backlog for Cleopatra hospital acting as financial advisor.

The year performance outperformed consensus view which strengthens our valuation methodology for EFG Hermes. As although 2014 showed a regained momentum represented in 13 deals versus 5 deals in 2013 that was one of the lowest years in terms of deals closure and earned revenues; 2014 IB revenues were lower than in 2015. Although markets across the board showed a strong rally in returns and sentiments were high in 2014 before getting into the oil turmoil and geopolitical tension of 2015, in which EFG Hermes booked an impressive year versus all expectations. In 2014, EFG was able to regain market activity strongly, driven by the participation in 3 of UAE`s top IPOs during 2014; acting as a co-manager on the USD 201mn IPO on Emirates REIT, Joint Book-runner on the USD 1.6bn IPO of Emaar Malls Group and USD 690mn Dubai Parks & Resorts. Beside capturing GB Auto`s USD 70mn private placement, SODIC`s USD 140mn rights` issue beside acting as a joint book-runner for Arabian Cement USD 110mn IPO.

51

13

20

2.3

28

5.2

0

10

20

30

40

50

60

Count Values - USD bn

IPO Private Placements Follow on/Rights Issue

42

8.3

46 45.2

0

10

20

30

40

50


Buy Side Advisor Sell Side Advisor

17

3.6 3

0.7

0

2

4

6

8

10

12

14

16

18


Arrangement Bond Underwriting

12


APRIL, 2016

SOURCE: EFG HERMES

EFG Hermes IB Track Record Shows Excellence

Country Company Advisory On Value Date EFG Role Egypt Telecom Egypt IPO USD 891mn 2005 Joint Book runner

Talaat moustafa IPO USD 992mn 2007 Joint Book Runner

Juhayna IPO USD 176mn 2010 Coordinator & Book Runner

Paradise Capital Sale 52% in Olympic Group to Electrolux USD 452mn 2011 Fin. Advisor

Orascom Telecom Holding De-merger of OTMT SAE USD 2,592.4mn 2012 Fin. Advisor

Egyptian Refining Co. Private Placement USD 510mn 2012 Placement Managaer

Al Mokhtabr Labs Merger with Al Borg Group Undisclosed 2012 Fin. Advisor

Wadi Degla Private Placement USD 41.2mn 2013 Fin. Advisor

Japan Tobacco Int`l Acquisition of Al Nakhla Tobacco Undisclosed 2013 Fin. Advisor

Palm Hills Rights Issue USD 86mn 2013 Lead Arranger

Arabian Cement IPO USD 110mn 2014 Joint Book Runner

GB Auto

Placement of Secondary Stake followed by Capital Increase

USD 70mn 2014 Placement Manager

The Abraaj Group Sale of 100% stake of leading private hospital Undisclosed 2014 Sell Side Advisor

Consortium of Investors Establishing a retail chain - kazyon USD 76.6mn 2014

Fin. Advisor & Placement Manager

SODIC Rights Issue USD 139.8mn 2014 Book Runner & Joint Fin. Advisor

Amer Asset Backed Securities Bond USD 28mn 2015 Joint Fin. Advisor & Underwriter

Orascom Construction Ltd. Admission of Demerger Shares USD 185.4mn 2015 Joint Book Runner

Edita IPO USD 267.3mn 2015 Joint Coordinator & Book Runner

GB Auto Rights Issue USD 126.1mn 2015 Fin. Advisor

Palm Hills Rights issue Usd 216.4mn 2015 Fin. Advisor

Emaar Misr IPO USD 300mn 2015

Joint Global Coordinator & Book Runner

Qalaa Sale of its 100% stake in El Rashidi El Mizan USD 95mn 2015 Sell Side Advisor

Domty IPO USD 127.2mn 2016 Coordinator & Book runner

Saudi Arabia Saudi Communications and IT

Commission Sales of 2nd GSM & Data License USD 3,457mn 2004 Joint Fin. Advisor

Bank Audi

Acquisition of majority stakei n (undisclosed) Bank

Undisclosed 2007 Buy Side Advisor

UAE DU IPO USD 660.5mn 2006 Coordinator & Book Runner

Al Habtoor Sale of 45% stake to Leighton USD 862mn 2007 Sole sell Side Advisor

Mannai Corp/ EFG Hermes Advisory on Acquisition of 78% in Damas USD 445mn 2012 Buy Side Advisor

Dubai Group Advisory on Sale of 100% stake of Dunai First USD 164mn 2013 Sole Fin. Advisor

BLME Advisory on technical Listing on NASDAQ Dubai USD 500mn 2013

Corporate Broker & Listing Manager

EFG Hermes Capital Partners Sale of 19% Stake in Damas USD 28.5mn 2014 Sell Side Advisor

Consortium of Investors Advisory on Acquisition of 78.3% stake in MOS USD 151mn 2014 Sell Side Advisor

Abu Dhabi based F&B Player Advisory on Private Placement undisclosed 2014 Fin. Advisor

Abu Dhabi based Real Estate Player Advisory on Private Placement undisclosed 2014 Placement Advisor

Emirates REIT IPO USD 201mn 2014 Lead Arranger

Exceed Industries

Sale of 15% stake in National Feed & Flour Production

USD 41mn 2014 Sell Side Advisor

Emaar Group IPO USD 1,579.1mn 2014 Joint Book Runner

Dubai Parks IPO USD 689mn 2014 Joint Book Runner

Orascom Construction Ltd. Admission of Demerger Shares USD 1,400mn 2015 Sponsor & Coordinator

Oman Alliance Housing Bank Sale of 35% stake to Ahli United Bank USD 132mn 2009 Sell Side Advisor

Bahrain Etisalat Acquisition of 2nd Bahraini GSM License NA 2003 Fin. Advisor

Dubai Financial Acquisition of 100% Stake in TAIB USD 171mn 2007 Fin. Advisor

Sudan Japan Tobacco Int`l Acquisition of 100% Stake in Haggar Cigarette &

Tobacco Factory USD 450mn 2011 Fin. Advisor

Jordan Jordan Cement Factories Sale of 33% Stake to Lafarge USD 100.5mn 1998 Sell Side Advisor

Zain Acquisition of 92% Stake in Fastlink USD 423.9mn 2002 Fin. Advisor

Kenya Al Futtaim Acquisition of 100% Stake in CMC East Africa USD 88mn 2014 Buy Side Advisor

Slovenia El Sewedy Cables Acquisition of 98% Stake in Iskraemeco USD 56mn 2007 Buy Side Advisor

Italy Arafa Holding Acquisition of 35% Stake in Forall Confezioni USD 34mn 2009 Buy Side Advisor

Wind Telecom Merger with Vimpelcom USD 25,700mn 2011 Fin. Advisor

Pal Zileri Ownership Restructuring & Recapitalization USD 68mn 2014 Fin. Advisor

Tunisia Orascom Telecom Sale of OT`s 50% stake in Qtel USD 1,200mn 2011 Sole Fin. Advisor

Amsterdam MOS Acquisition of 100% stack in Seafox Contractions Undislosed 2014 Fin. Advisor

Fawry Egypt Sale of 100% stake to PSI Netherlands USD 100mn 2015 Sell Side Advisor

USA Schweppes Egypt Sale of 100% stake to Coca Cola Undisclosed 2015 Sell Side Advisor

London IDH IPO USD 334mn 2015 Joint Coordinator & Book Runner

13


APRIL, 2016

PE AUMS – USD MN AUM INVESTMENT CLASSIFICATION PRE-VORTEX EXPANSION - 2015

SOURCE: EFG HERMES SOURCE: EFG HERMES

4- Private Equity The PE division is a well established with presence in Egypt and Dubai. The division provides investment management and advisory services, beside fund raising activities. Up to 2015, EFG was able to invest USD 960mn in 38 different investments through Horus 1, EFG CP 2 & 3 and Horus Agri. Fund. The company was able to successfully conduct 27 exits with proceeds totaling USD 507mn out of which, EFG realized gains equivalent to EGP 176mn; setting aggregate exit IRR at 17%, and USD cash on cash exit multiple at 1.5x. One of the remarkable exits that EFG was able to successfully conduct was Damas, in which EFG PE invested USD 85mn in March 2012 to account for a 19% acquisition alongside MANNAI corporations. Two years later, March 2014, EFG exited its position at USD 150mn, recognizing an IRR of around 38%. EFG PE`s AuM currently stand at USD 614mn, spread over several sectors, with risk diversification through including cyclical and non-cyclical investments. EFG PE is also one of 5 main global and regional sponsors for InfraMed fund, a EUR 385mn fund in investing in infrastructure with focus in the southern and eastern Mediterranean. Up to date the fund has invested around 40% of commitments in investments in Egypt, Turkey and Jordan. InfraMed investments in Egypt took place through ERC, in which a share of 15% was acquired at USD 100mn. Turkey`s investment was a 20% stake in Iskenerun Port Facility, while Jordon investment came represented in a 49% investment in Tafila Wind Farm which produces 114MW of electricity. In 2014, EFG was able to successfully close a 49% stake acquisition in a USD 208mn leveraged buyout along with co-investors, in partnership with EDP Renovaveis (EDPR) for a portfolio of wind farms encompassing 33 wind farms with total capacity of 334MW in France. EFG PE representation came through Vortex to partner with EDPR the 51% holder which takes responsibility for the operations and management of the assets, while EFG manages the investment vehicle. The deal came in an arrangement with the French government for a 15-year feed in tariff agreement. Recently, April 2016, Vortex a renewable energy platform managed by EFG PE announced entering into an agreement with a subsidiary of EDPR for the acquisition of EUR 550mn, 49% stake in an operational 664MW European wind assets, distributed over 23 farms in 4 different jurisdictions; Spain (348MW), Portugal (191MW), Belgium (71MW) and France (54MW). Vortex maintains plans for reaching 1GW of energy generation within the upcoming two years, while through the acquisition EFG succeeded in almost doubling its PE AuM to USD 1.16bn. EFG funded the transaction through a 40/60 equity/debt financing. The equity investment encompassed a 5% EFG seed investment beside 95% GCC sovereign capital, while the 40% remainder funding came from 5 European banks in a form of 13-years facility. The transaction takes Vortex under management net capacity to 457MW, after 2014`s added 132MW. In 2015, EDPR France distributed EUR 22mn to Vortex, a return on the 132MW investment, from which EUR 10.4mn were utilized in settling debt payments while EUR 8mn were distributed to investors

1125

980

665 692 734 614

1164

0

200

400

600

800

1000

1200

1400

2010 2011 2012 2013 2014 2015 2016 YTD

17%

17%

11%

50%

2%

3%

Construction & Real Estate

Oil & Gas

Food & Agriculture

Infrastructure

Utilities

Textiles

14


APRIL, 2016

SOURCE: EFG HERMES

Tw w … Ensuring growth through non-cyclical operations 1- L B … FG L

In June 2015, EFG Hermes announced launching its leasing business after acquiring regulatory approvals from EFSA, and ended 2015 with revenues of EGP 20mn. EFG Hermes Leasing became then a fully owned subsidiary established through an allocation of EGP 100mn from the mother company. In a matter of less than 6 months of operations through 2015 end, the leasing arm came in 8

th place with a market share of c.

5% driven from leased value of EGP 708mn; however, in 4Q2015 the arm was 5th

by lease value of EGP 450mn capturing 9% market share, headlining many well established competitors with vast track record of operations. The business has acquired a leverage buffer over capital of 8x, to maximize funding financial and/or operating lease to EGP 900mn, which supports growth in an underpenetrated segment. EFG Hermes model targets a 3% leasing margin. The leasing arm has a turnaround of 20days mainly targeting SMEs that still face difficulties in obtaining banking facilities. Although recent CBE regulations might bring the banking system deeper to the SMEs financing scene, we believe leasing arms with SMEs focus enjoy priorities in securing clients as a matter of being on the ground working hand in hand, plus enjoying a better tracking mechanisms through complementary services provided and credit and financial checks done.

Contracts Booked - 2015 Lease Value (EGP mn) Market Share

1- Incolease 1,100 21% 2- Corplease 849 17%

3- Al Tawfik Lease 619 12% 4- Techno Lease 456 9% 5- EFG Hermes 450 9%

6- Al Ahly 433 8% 7- QNB 348 7%

8- GB Lease 135 3% 9- Orix 133 3%

10- Global Lease 131 3%

Contracts Booked - 4Q2015 Lease Value (EGP mn) Market Share 1- Incolease 2,067 14% 2- Corplease 2,025 14%

3- QNB 1,788 12% 4- Al Tawfik Lease 1,694 12%

5- Al Ahly 1,503 10% 6- GB Lease 1,130 8%

7- Techno Lease 979 7% 8- EFG Hermes 708 5% 9- Arab African 559 4%

10- Orix 493 3%

15


APRIL, 2016

2- M c c … T m y h

In February 2016, EFG Hermes concluded the purchase of a 76.7% stake of a leading microfinance player, 70% acquired from Qalaa Holding and 6.7% from the company`s management in a transaction worth EGP 345mn. In April 2016, EFG Hermes announced pursuing to enlarge its held stake at Tanmeyah through acquiring the Egyptian Gulf Bank stake in the company of 17.3% at EGP 77.9mn; which brings total held share to 94% for a total of EGP 422.9mn with the remainder held by the retained original dedicated management.

The acquisition marks EFG Hermes accomplishment in targeting businesses with the highest potential return over the upcoming horizon. Tanmeyah operates through lending to microenterprises operating in non-cyclical businesses, loans ranging EGP 4-30k with tenor of 4-12 months for financing cash flows and assets; hence guaranteeing low defaults and high turnovers. Besides, lending to very small enterprises operating in non-cyclical businesses to isolate economic cycle risks. Loans range falls within EGP 30-100k with tenors of 6-24 months for cash flow financing only. Tanmeyah is geographically all over Egypt, with 114 branches in total divided between, 53 in Delta, 7 in Greater Cairo and 54 in Upper Egypt; hence ensuring superiority in targeted clients reach in all governorates far away from the banking system sophistication. Outstanding repayments are also facilitated, whether through Fawry electronic platform in branches in case of micro-enterprises or through ATM widespread through branches or through western union transfers in case of very small enterprises. Tanmeyah has impressively grown its revenues by 45.7% in 2015, to stand at EGP 134mn, while booking a net profit margin of 31%. Since inception the micro finance chain has issued micro enterprise and very-small enterprise loans worth EGP 3bn, with average loan size of EGP 8k indicating the targeted clients being the most in need and the farthest from the banking arena which preserve high future potential. The company currently has active borrowers of 110.3k served by 1.5k employees.

16


APRIL, 2016

SOURCE: EFG HERMES

Summary

Investment Bank Revenues [EGP Million] 4Q15 3Q15 q-o-q 4Q14 y-o-y FY15 FY14 y-o-y Brokerage 92 68 35% 109 -16% 344 451 -24%

Contribution to Total IB Activity 29% 30%

37%

33% 37%

Egypt 60 40 50% 66 -9% 209 252 -17% Contribution to Segment 65% 59%

61%

61% 56%

Regional 32 28 14% 43 -26% 135 199 -32%

Contribution to Segment 35% 41%

39%

39% 44%

Asset Management 99 45 120% 109 -9% 215 272 -21% Contribution to Total IB Activity 31% 20%

37%

20% 22%

Egypt 10 12 -17% 17 -41% 39 72 -46%

Contribution 10% 3%

4%

2% 5%

Regional 89 33 170% 92 -3% 176 200 -12% Contribution 90% 97%

96%

98% 95%

Investment Banking 14 49 -71% 41 -66% 163 138 18%


14%

16% 11%

Egypt 14 49 -71% 10 40% 142 48 196% Contribution 100% 100%

24%

87% 35%

Regional 0 0

31

21 90 -77%

Contribution 0% 0%

76%

21% 65%

Private Equity (Egypt) 12 23 -48% 10 20% 86 90 -4% Contribution to Total IB Activity 4% 10%

3%

8% 7%

Leasing 12 7 71% 0

20 0


0%

2% 0%

Capital Market & Treasury Operations 89 35 154% 28 218% 221 269 -18%


9%

21% 22%

Total Operating Revenues 318 227 40% 297 7% 1,049 1,220 -14%

EFG Financial Highlights [EGP Million] 4Q15 3Q15 q-o-q 4Q14 y-o-y FY15 FY14 y-o-y Group Operating Revenues 708 668 6% 702 1% 2,617 2,610 0%

Investment Bank 318 228 39% 298 7% 1,050 1,220 -14% Contribution 45% 34%

42%

40% 47%

Commercial Bank 390 440 -11% 404 -3% 1,567 1,390 13%

Contribution 55% 66% 58% 60% 53%

Group Operating Expenses 494 395 25% 441 12% 1,622 1,552 5% Investment Bank 238 155 54% 218 9% 724 748 -3%

Contribution 48% 39%

49%

45% 48%

Commercial Bank 256 240 7% 223 15% 898 804 12% Contribution 52% 61% 51% 55% 52%

Group Net Operating Profit 215 273 -21% 261 -18% 995 1,058 -6% Investment Bank 81 73 11% 80 1% 326 472 -31%


31%

33% 45%

Commercial Bank 134 200 -33% 181 -26% 669 586 14% Contribution 62% 73% 69% 67% 55%

Group Net Operating Margin 30% 41%

37%

38% 41%

Investment Bank 25% 32%

27%

31% 39%

Commercial Bank 34% 45% 45% 43% 42%

Group Net Profit after Tax & Minority Interest 81 120 -33% 131 -38% 461 538 -14% Investment Bank 44 40 10% 54 -19% 200 304 -34%


41%

43% 57%

Commercial Bank 37 80 -54% 77 -52% 261 234 12% Contribution 46% 67% 59% 57% 43%

17


APRIL, 2016

18


APRIL, 2016

PRIME SALES TEAM

Hassan Samir Managing Director

+202 3300 5611 [email protected]

Mohamed Ezzat Head of Sales & Branches


Shawkat Raslan Heliopolis Branch Manager


Amr Saber Team Head-Institutions Desk


Amr Alaa, CFTe Manager


Mohamed Elmetwaly Manager


Emad Elsafoury Manager


RESEARCH TEAM

* [email protected]

+202 3300 5728

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Documents

EFG Hermes - Thoughts on Valuation - April 2016