DISCLAIMER
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.
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Elsewedy Electric Investor Presentation 9M-2014
AGENDA
An Integrated Energy Solutions Company
Corporate Timeline
Strategy
 Full Service Integration
 Geographic Presence
 Advanced Technology
Business Line Review
Recent Financial Performance
Appendix I: Economic Environment
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Elsewedy Electric Investor Presentation 9M-2014
AN INTEGRATED ENERGY SOLUTIONS COMPANY
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 insight into
local markets set the ground work for first mover advantage into
new markets and sectors.
The Elsewedy family began what is today Elsewedy Electric in 1938 as an electrical
equipment trading company.
In 1960, after developing deep market understanding and local presence, the
company became Egypt’s first specialized cables distributor.
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.
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Elsewedy Electric Investor Presentation 9M-2014
FULL-SERVICE INTEGRATION
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 through competitively advantaged wind technology.
Wires
and Cables
Transformers
Engineering
and
Contracting
Energy
Measurement
and Management
Electrical
Products
Wind Energy
Generation
Elsewedy Electric provides integrated solutions through six
divisions to four main markets.
Energy / Infrastructure
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Industrial
Commercial
Residential
Elsewedy Electric Investor Presentation 9M-2014
FULL-SERVICE INTEGRATION
Elsewedy Electric delivers full energy solutions
through six business lines
Wires
and Cables
Transformers
 Power cables
 Power transformers
 Special cables
 First and only
producer of power
(step up) transformers
in the region
 Winding wires
 Raw materials
 Oil immersed
distribution
transformers
 Cast resin
transformers
Engineering
and Contracting
Energy Measurement
and Management
 Transmission and
distribution
 Meters
 Engineering and
generation
 Software
Communication
Electrical Products
Wind Energy
Generation
 Porcelain insulators
 Wind turbines
 Cables accessories
 Wind towers
 Explosion proof
equipment
 Wind farm
development
 Fiber glass poles
 Operation and
maintenance
 Balance of plant
 Modular Solutions
 Service
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Elsewedy Electric Investor Presentation 9M-2014
CORPORATE TIMELINE
Elsewedy Electric believes that the key to thriving in a competitive
marketplace is remaining at the fore of the increasingly complex landscape.
The company seeks to transform as an adaptive organization strategically
evolving and responding to an ever-changing global and industry
environment.
1984
ARAB CABLES
Egypt’s 1st special cables
production plant
1996
1997
EGYTECH
UNITED INDUSTRIES
Power cables manufacturer Special cables producer
(instrumentation cables, low
SEDPLAST
smoke halogen free, control
PVC compounds and Master cables, co-axial cables,
Batch plant – raw materials automotive wires)
1998
2002
UNITED METALS
Copper rods manufacturer
GIAD ELSEWEDY CABLES
Sudan’s first cables plant
ELSEWEDY SEDCO
Cable joints and
terminations pioneer in
Egypt
ELASTIMOLD
Fully integrated cables
accessories plant
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Elsewedy Electric Investor Presentation 9M-2014
CORPORATE TIMELINE
2003
SUDANESE EGYPTIAN
ELECTRICAL INDUSTRIES
Transformers manufacturer
in Sudan – extends Sudan
presence beyond cables
2004
ITALSMEA
Specialized explosion
proof equipments
producer
2005
ELSEWEDY CABLES SYRIA
Cables production facility in
Syria to serve the Levant
markets
2006
ELSEWEDY ELECTRIC
GHANA
Road Lighting Poles
facility in Ghana
2007
ELSEWEDY ELECTRIC SYRIA
Full service and fully
integrated cables and
transformers facility to
service demand across the
Middle East
UNITED WIRES
Production facility
specialized in galvanized
steel wires
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Elsewedy Electric Investor Presentation 9M-2014
CORPORATE TIMELINE
2008
ELSEWEDY CABLES ALGERIA
Fully localized cables production facility filling domestic
demand
ELSEWEDY ELECTRIC ZAMBIA
The group’s transformer manufacturing company in Africa,
serving regional demand (Elsewedy is Africa’s only
transformer producer)
ECMEI
70% stake in The Egyptian Company for Manufacturing
Electric Insulators – secures the manufacturing technology
for electrical porcelain insulators and remains the sole
producer in Africa and the Middle East
ISKRAEMECO
100% share of the worldwide manufacturer of energy
measurement and management systems; a global
technology leader, the third largest player in the European
market and the seventh largest globally
M. TORRES OLVEGA INDUSTRIAL
30% holding of the wind energy division of the Spanish
technology group, allowing Elsewedy to establish SWEG
(Elsewedy for Wind Energy Generation – a company 100%
owned by Elsewedy Electric)
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2009
EL SEWEDY CABLES KSA
Fully localized cables
production facility filling
domestic demand
EL SEWEDY CABLES
ETHIOPIA
Fully localized cables
production facility filling
domestic demand
EL SEWEDY CABLES YEMEN
Fully localized cables
production facility filling
domestic demand
EL SEWEDY
TRANSFORMERS EGYPT
First and only producer of
power (step up) transformers
in the region
2010
RENAMED ELSEWEDY ELECTRIC
Institutionalization and integration continues as Elsewedy
builds its full service platform
M. TORRES OLVEGA INTERNATIONAL STAKE INCREASE
Renegotiates agreement with M. Torres to acquire an
additional 60% of the Spanish wind turbine manufacturer, for a
total 90% stake, reducing per share acquisition price
significantly
SIAG ELSEWEDY TOWERS (SET).
SIAG Elsewedy Towers (SET)— a joint venture with SIAG, a
leading German company specialized in wind mill tower
construction (part of SWEG). SET production facility opens in
Ain Sokhna, Egypt
DOHA CABLES
Fully localized cables production facility filling domestic and
near-regional demand
ELSEWEDY ELECTRIC NIGERIA
Nigeria’s first and only transformers plant with production
capacity of 750 MVA
3W NETWORKS
A majority stake in 3W Networks, a technology based
communications contractor and systems integrator
Elsewedy Electric Investor Presentation 9M-2014
STRATEGY
Our strategy is driven by a unique corporate structure
that allows Elsewedy Electric to act as both a global
company with multi-national operations and export
markets, and as a truly local market player with deep
roots in domestic economies.
Aggressive positioning across product,
services and geography
Full-Service
Integration
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Geographic
Presence
Advanced
Technology
Elsewedy Electric Investor Presentation 9M-2014
FULL-SERVICE INTEGRATION
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Elsewedy Electric Investor Presentation 9M-2014
Wind Energy
Generation
Electrical Products
Energy Measurement
and Management
Engineering
and Contracting
Sector Exposure:
 Utilities – power generation and distribution
 Utilities – water treatment
 Transportation infrastructure – airports and tunnels
Transformers
Elsewedy Electric designs, develops and operates generating,
transmitting and distributing infrastructure. Additionally, the
company’s production divisions supply external generation,
T&D and utilities players and projects. Moving forward,
Elsewedy Electric expects to assume equity stakes in power
generation and distribution assets, including wind and
traditional generation sources.
Wires
and Cables
FULL-SERVICE INTEGRATION: ENERGY AND INFRASTRUCTURE
Integrated Offerings:
 EPC – engineering, procurement, construction – and
development of traditional source power plants
 Transmission and distribution (T&D)
 Supply of complete cabling solutions for power production,
transmissions and distributions
 Utilities management – lighting, access control, monitoring
and safety
 Electricity pre-payment systems
 Windmill manufacturing, wind farm development and wind
energy generation and distribution
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Elsewedy Electric Investor Presentation 9M-2014
FULL-SERVICE INTEGRATION: INDUSTRIAL
Wind Energy
Generation
Electrical Products
Energy Measurement
and Management
Engineering
and Contracting
Transformers
Sector Exposure:
 Industrial parks
 Manufacturing across segments
 Automobile
 Cement, aluminum and steel
 Food and beverage packaging
 Pharmaceuticals
 Chemicals
Wires
and Cables
Elsewedy Electric supplies raw materials, designs and builds
infrastructure and distributes electricity to industrial clients
across a range of sectors. The company also develops and
manages internal systems and measures and optimizes
consumption at production facilities.
Integrated Offerings:
 Complete cabling solutions (including raw materials and
installation) for power and special cables (control,
instrumentation, fiber optics, winding and data)
 Optimization of process energy performance
 Control and monitoring systems for machines
 Process automation
 Electrical distribution – protection and installation systems
 Electricity metering and supply quality management
 Fire alarm solutions
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Elsewedy Electric Investor Presentation 9M-2014
FULL-SERVICE INTEGRATION: COMMERCIAL
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Wind Energy
Generation
Electrical Products
Engineering
and Contracting
Energy Measurement
and Management
Integrated Offerings:
 Complete cabling solutions (including raw materials and
installation) for power and special cables (control,
instrumentation, fiber optics, winding and data)
 Power supply and distribution
 Utilities management – lighting, access and control of
electricity
 Energy measurement and management
 Multi-site remote management
 Data exchange – voice-data-image , power line carrier
technology, radio
 Fire alarm solutions
Transformers
Sector Exposure:
 Offices
 Shopping centers
 Industrial and warehouse complexes
 Hotels
 Hospitals
Wires
and Cables
Elsewedy Electric produces, distributes, installs and manages fullservice electricity solutions for commercial space development
and renovation and ongoing service provisions.
Elsewedy Electric Investor Presentation 9M-2014
FULL-SERVICE INTEGRATION: RESIDENTIAL
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Wind Energy
Generation
Electrical Products
Energy Measurement
and Management
Engineering
and Contracting
Integrated Offerings:
 Complete cabling solutions for power and special cables
(control, instrumentation, fiber optics, winding and data)
 Electrical distribution, protection and installation systems
 Home automations and data exchange
 Monitoring and safety
 Electricity metering and supply quality management
 Communication and multimedia networks – voice-data-image
and power line carrier networks providing access in all rooms
to telephone, TV, internet and other connection via electrical
wiring systems
Transformers
Sector Exposure:
 New and renovated single family residences
 New and renovated apartment complexes
Wires
and Cables
Elsewedy Electric produces and distributes a full range of products
that bring electricity, energy measurement and communications
to regional households.
Elsewedy Electric Investor Presentation 9M-2014
FULL-SERVICE INTEGRATION
Elsewedy Electric’s integrated energy solutions provide
a full range of offerings to produce, distribute, manage and safely use electrical power
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Elsewedy Electric Investor Presentation 9M-2014
FULL-SERVICE INTEGRATION
A full-service, vertically integrated product line:
Diversification across production, engineering and
generation with focused electricity specialization
Raw and intermediate materials and export hub in Egypt
leverages low cost production, a favorable trade environment
and a central geography.
Global production distributes operations strategically —
Elsewedy enters a market where it sees opportunity and
expands to other activities in the market organically …
…Local entities facilitate and organize the group’s various
activities — one division’s presence allows a group-wide
foothold in new markets.
Full-service energy solutions model maintains the ability to
cross-sell products and grow long term customer relationships,
crucial in developing a leading market position.
Integration across the value chain supports:
– Fast track capabilities
– Quality guarantees
– Cost leadership
– Brand advantages
– Ability to offer turnkey solutions
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Elsewedy Electric Investor Presentation 9M-2014
GEOGRAPHIC PRESENCE
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Elsewedy Electric Investor Presentation 9M-2014
GEOGRAPHIC PRESENCE
Today, Elsewedy Electric is a global integrated
cables and electrical products manufacturer
and a turnkey services provider with more
than 10,000 employees working at 30
production facilities in 15 countries
Wires and Cables (Total Capacity)
EGYPT
• Cables Capacity: 156,000 tons
• Copper Rod Capacity: 120,000 tons
• PVC Capacity: 81,000 tons
SAUDI ARABIA
• Cables Capacity: 39,000 tons
QATAR
• Cables Capacity: 24,000 tons
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ALGERIA
• Cables Capacity: 30,000 tons
SUDAN
• Cables Capacity: 12,000 tons
ETHIOPIA
• Cables Capacity: 9,600 tons
Transformers
EGYPT
• Transformers Capacity: 8,500 MVA
SUDAN
• Transformers Capacity: 450 MVA
ZAMBIA
• Transformers Capacity: 450 MVA
Algeria
• Transformers Capacity: 400 MVA
Electrical Products
Wind Energy Generation
SLOVENIA
• Electrometers Capacity: 3 mn meters
EGYPT
• Electrometers Capacity: 1 mn meters
MALAYSIA
• Electrometers Capacity: 250,000 meters
GHANA
• Road Lighting Poles
SPAIN
• Wind turbines
EGYPT
• Wind towers
Elsewedy Electric Investor Presentation 9M-2014
GEOGRAPHIC PRESENCE
Elsewedy Electric’s
comprehensive worldwide
distribution network reaches
around the globe
Main Export Market
Ethiopia
Austria
Finland
Bahrain
France
Belgium
Germany
Brazil
India
Bulgaria
Iraq
Congo DRC
Italy
Cyprus
Jordan
Equatorial
Kazakhstan
Guinea
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Engineering & Contracting
Kenya
Kuwait
Libya
Madagascar
Malawi
Malaysia
Morocco
Mozambique
Oman
The Netherlands
Qatar
Russia
Rwanda
Saudi Arabia
South Africa
Spain
Tunisia
UAE
Uganda
United Kingdom
Uruguay
Zimbabwe
Algeria
Chad
Cameroon
Egypt
Equatorial Guinea
Ethiopia
Iraq
Ghana
Mozambique
Niger
Nigeria
Rwanda
Saudi Arabia
Yemen
Zambia
Elsewedy Electric Investor Presentation 9M-2014
GEOGRAPHIC PRESENCE
Our structure is our strategy:
A closely aligned federation of fully localized production and
distribution centers with a global coordination center
Economies of scale without compromising local producer
advantages
– Elsewedy considers production and distribution decisions
holistically — fully localized global entities are integrated
extensions of Elsewedy’s Cairo-headquartered operations
Domestic recognition – with nearly 100% local staffing – allows:
– Tax benefits
– Lower cost financing
– Ultimately, better margins and secure market share
Local insight establishes:
– Intelligence on local conditions and players
– Key relationships
– Position to anticipate market demand
Considerable investment in scalability of ICT infrastructure to link
geographically dispersed factories and offices (investment
continues):
– Shares data and knowledge
– Reduces costs and lead times
– Improves management operational processes
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Elsewedy Electric Investor Presentation 9M-2014
ADVANCED TECHNOLOGY
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Elsewedy Electric Investor Presentation 9M-2014
ADVANCED TECHNOLOGY: ELSEWEDY ELECTRIC’S APPROACH TO GLOBAL MARKETS
Elsewedy Electric’s Approach to
Emerging and Global Markets
An organization that combines global-scale and world-class
technology with deep roots in local markets
Our structure is our strategy
 A premium on rationalizing production and distribution decisions — Elsewedy seeks select, tactical access to attractive energy
and infrastructure demand in both developed and developing markets
 Operations structured to push regional and international economies of scale
 Distributed national and business cycle risk
Global yet local
 An organization that understands and respects how different countries operate and utilizes organizational learning and
knowledge transfer to push the limits of culture and find opportunities to innovate
 First-mover advantages in underdeveloped infrastructure markets in the Middle East and Africa, many of which are rolling out
sizable infrastructure spending plans with little or no domestic supply
Investing in technology
 An understanding of which core technologies to master and aggressive investment in these opportunities
 Recognizes the limits to specialization
 Leverages deep specialization and accrued competitive advantages with broader diversification
Dynamic management
 Elsewedy is progressing toward a management structure that facilitates quick decision-making and carefully monitors
developments around the world: Each executive committee member is increasingly responsible for a business, region,
function or industry segment, placing the highest level of management in touch with core activities
 Human capacity remains a challenge for all operators in Elsewedy Electric’s main markets: The company continues to focus on
hiring and training the region’s most talented managers and employees
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Elsewedy Electric Investor Presentation 9M-2014
ADVANCED TECHNOLOGY
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: Elsewedy Electric’s state-of-the-art cable manufacturing
factories are equipped with premier technology.
Transformers: Elsewedy Transformers is the first and only producer of
power (step up) transformers in the region up to 220KV.
Meters: Through Iskraemeco – a Slovenia based metering products, systems and
services company established in 1945 and acquired in 2007 – Elsewedy Electric has
gained the world’s most advanced residential and corporate utilities measurement
technology
Wind: With the acquisition of a majority stake in M. Torres Olvega Industrial, Elsewedy Electric is
offering complete wind solutions: manufacturing and developing wind farms and selling electricity to
third parties with a strategy of owning early stage gearless turbine technology that makes wind farms
cheaper to maintain.
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Elsewedy Electric Investor Presentation 9M-2014
Business Line Review
BUSINESS LINE REVIEW: WIRES AND CABLES
Elsewedy Electric has significantly extended its core wires and cables capacity in recent years,
more than doubling capacity since 2007 to approximately 272,400 tons as of December 31st
2013, as Elsewedy Electric positions itself to supply significant regional energy demand.
Egypt
 Elsewedy is the sizable market leader
 Low cost manufacturing and raw material base
 Export hub
Algeria
 15% import tariffs
 Market deficit – consumption increase of app. 40%
from 2005 to 2010
 Under-developed infrastructure
Saudi Arabia
 Largest cable market in the Middle East – expected
$140.3 billion needed on electricity projects over
the next decade
Sudan
 First and only producer
 Net import nation
 Government partnership
 Under-developed infrastructure
Ethiopia
 First producer
 Under-developed infrastructure
Qatar
 First cable producer
 Solid economic growth
 Under-developed infrastructure
Cables Production Capacity and Sales Volume
( ‘000 tons)
282
282
272
250
203
147
125
Existing Capacity (‘000 tons)
156
39
88
24
30
12
9.6
Qatar
Algeria
Sudan
Ethiopia
2007
135
151
157
26 of 44
Saudi
Arabia
159
100
2008
2009
2010
2011
Cables Production Capacity (tons)
Egypt
163
2012
2013
Sales (tons)
Elsewedy Electric Investor Presentation 9M-2014
BUSINESS LINE REVIEW: ENGINEERING AND CONTRACTING
Elsewedy Electric’s Engineering and Construction groups
deliver electricity generating assets and transmission and
distribution (T&D) networks on an EPC basis.
The company also expects to own and operate assets
across the power generation and distribution sector.
Engineering and Construction
Elsewedy Power
Elsewedy Power develops,
designs, builds and operates
power assets. The unit acts as
Elsewedy Electric’s Engineering
and Construction operations
integrator – directing contracts
to Elsewedy Electric T&D and
PSP as well as internal
suppliers. As a distinct entity,
Elsewedy Power also works
with experienced developers,
EPC contractors and suppliers
based around the world.
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Elsewedy T&D
Elsewedy T&D supplies, installs
and commissions overhead
transmission lines and
substations on a turnkey basis for
national utilities companies
across the Middle East and Africa.
Power System Projects
Egytech
Power System Projects
(PSP) provides EPC solutions
to power generating and
high voltage substation
projects.
Through Egytech – a wholly
owned production facility
leveraging the most advanced
processes and technologies –
Elsewedy Cables supplies stateof-the-art power cables to
generation and T&D projects
worldwide.
Elsewedy Electric Investor Presentation 9M-2014
BUSINESS LINE REVIEW: ENGINEERING AND CONTRACTING
Power Systems Projects (PSP) integrates Engineering, Procurement and Construction
services with complete project management, tailoring services to meet a broad
range of client projects and business activities across the region – from coal and gasfired plants to complete wind farm development and construction
PSP is structured vertically along functional business lines
and integrated by project management professionals
Engineering
 Determine all facility,
equipment and material
requirements
 Produce all technical
deliverables required to
execute the project
 Review vendor proposals
 Ensure safety in designs
Procurement
 Globally source material and
equipment from proven
manufacturers, including
Elsewedy Electric subsidiaries
 Manage logistics of material
and equipment delivery,
ensuring projects are
completed on schedule
Construction
 Provide a range of services
from overall construction
management to actual
construction and
commissioning
 Ensure facility is completed on
time, on budget and to
specification
PSP
PSP invests in equity stakes of construction, operation
and maintenance of electrical systems including
generation and T&D projects
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Elsewedy Electric Investor Presentation 9M-2014
BUSINESS LINE REVIEW: ENGINEERING AND CONTRACTING
Africa is well endowed with the potential for cost-effective energy resources on a
large scale: Regional power trade is the solution to the continent’s high-cost and
low-efficiency environment.
But making regional power trade work is a considerable challenge, in part because
of the many missing links in the continental power-transmission network. Elsewedy
Electric’s T&D services arm is building these networks across the continent.
Elsewedy Electric T&D
 Design, engineering, procurement, installation, testing and commissioning of low and
medium voltage overhead transmission lines
 Design, engineering, procurement, installation, testing and commissioning of low and
medium voltage substations
 Design, engineering, manufacture and procurement, installation, testing,
commissioning and startup for rural distribution systems
 Design and installation of industrial electrical power and distribution systems
 Complete rural electrification schemes
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Elsewedy Electric Investor Presentation 9M-2014
BUSINESS LINE REVIEW: ENGINEERING & CONTRACTING
Clients




Public Utilities
Independent power producers (IPPs)
Governmental and public facilities
Industrial facilities
(mines, plants, mills and others)
 Private developers
(malls, villages, hotels, hospitals , high rises)
Capabilities
 EPC – Engineering,
Procurement & Construction
 EES – Engineering, Equipment Supply
 ES – Equipment Supply
 O&M – Operation and Maintenance
Generation Types






Wind
Diesel (LFO)
Heavy Fuel Oil (HFO)
Gas
Dual Fuel (LFO/HFO)
Bio Fuel
Financials





SC – Supply credit
EPC Credit
BLT – Build, lease, transfer
BOT – Build, operate, transfer
BOOT – Build, own, operate, transfer
Elsewedy Electric’s engineering and
construction teams have completed
projects throughout Africa.
Elsewedy T&D
Algeria
Chad
Egypt
Ethiopia
Equatorial Guinea
Ghana
Mozambique
Niger
Rwanda
Zambia
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PSP
Egypt
Algeria
Ethiopia
Nigeria
Elsewedy Power
Iraq
Yemen
Cameroon
Elsewedy Electric Investor Presentation 9M-2014
BUSINESS LINE REVIEW: ENGINEERING & CONTRACTING
Elsewedy Electric’s engineering and contracting solution offers
regional clients a single solution to full generation and
distribution needs.
Engineering & Contracting Revenues (EGP mn)
2,525
Turnkey Gross Profit Margin
2,120
1,880
1,690
38%
1,787
24%
23%
1,162
21%
14%
860
2009
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20%
2010
2011
2012
2013
9M-2013
9M-2014
2009
2010
2011
2012
2013
14%
9M-2013 9M-2014
Elsewedy Electric Investor Presentation 9M-2014
BUSINESS LINE REVIEW: TRANSFORMERS
Elsewedy Transformers is the first and only producer of
power (step up) transformers in the region up to 220KV.
The group produces a full range of low, medium and high
voltage transformers -- including power (step up) and
distribution (step down) transformers .
Power
Transformers
— First and only producer in the
region
— Power plants
— T&D substations
— Industrial facilities
— Subway, metro and other
transportation systems
Egypt
 First and only producer of power (step
up) transformers up to 220KV
 First and only producer of dry type
transformer up to 10 MVA
 Low cost manufacturing base
 Export hub
—High-rise buildings
—Hospitals
—Wind farms
—Airports
—Commercial complexes
Distribution
Transformers
Sudan
First and only transformers producer
Partnership with the government
Under-developed infrastructure
Existing Capacity
(MVA)
Zambia
8,500
First and only transformers producer
Access to highly untapped markets
Partnership with the government
Under-developed infrastructure
450
Egypt
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Sudan
450
400
Zambia
Algeria
Elsewedy Electric Investor Presentation 9M-2014
BUSINESS LINE REVIEW: ELECTRICAL PRODUCTS
In June 2008 Elsewedy Electric acquired the Egyptian Company for Manufacturing
Electric Insulator (ECMEI), the Middle East’s leading ceramics insulators
manufacturer.
Elsewedy Electric’s acquisition of Iskraemeco establishes a global metering and
measurement giant with the technological strength to build tomorrow’s smart
products and the production and distribution base to capture worldwide market
share
Electrical Products
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ECMEI
Fiberglass Poles
Explosion Proof Products
ECMEI was established in 2004
and today produces 7,000 tons of
different electric ceramic
insulators, with a particular
expertise in high tension with
various applications.
In Egypt and Ghana – through
United Industries and Elsewedy
Electric Ghana, respectively – the
company produces fiberglass
poles for various electricity
purposes, including street lighting
and overhead transmission lines.
In 2008 the company established
ITALSMEA, a group specializing in
explosion proof products for the
petroleum sector. ITALSMEA
supplies bulk electricity goods to
the local Egyptian and
international petroleum sector.
Elsewedy Electric Investor Presentation 9M-2014
BUSINESS LINE REVIEW: METERS
In 2007 Elsewedy Electric acquired
Slovenia’s Iskraemeco, one of the
world’s most technologically
advanced producers of metering
equipment and services. The
acquisition establishes a global
metering and measurement giant
with the technological strength to
build tomorrow’s smart products and
the production and distribution base
to capture worldwide market share.
Energy Measurement and Management
Iskraemeco
Iskraemeco is one of the
world’s most technologically
advanced producers of
metering equipment.
Iskra Amesi
Iskra Amesi, an engineering
service provider and holding
of Iskraemeco, provides
services and equipment for
testing metering equipment
and industrial automation
Iskraemeco currently supplies
over 2 million meters, mostly to
countries in Europe and the
Gulf
Iskraemeco group production plants and offices
Iskraemeco references (customer locations)
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Elsewedy Electric Investor Presentation 9M-2014
BUSINESS LINE REVIEW: WIND
Elsewedy for Wind Energy Generation (SWEG) integrates the world class technology and
production expertise of Germany’s SIAG Group, Spain’s M. Torres Olvega Industrial (MTOI) and
Elsewedy Electric. The business line constitutes a significant step forward for wind power in
Africa & the Middle East.
SWEG – Elsewedy for Wind Energy Generation
M. Torres Olvega
Industrial (MTOI)
Gearless Wind Turbines
MTOI currently produces
TWT turbines (1.65 MW)
in Spain.
Wind Towers – SET
Wind Farm Development
– Elsewedy Power
SIAG Elsewedy Towers (SET)
is a joint venture between
SIAG - Schaaf Industrie
Aktiengesellschaft, a leading
German steel manufacturer,
and Elsewedy Electric, to
build wind towers for the
MEA region and the South
European market.
SWEG coordinates with
Elsewedy Power as developer
and co-developer of wind farm
developments.
SWEG’s Solutions :
Wind Turbines Supply
• TWT’s direct drive gearless technology is a unique contribution to the wind
energy industry in terms of reliability, performance, maintenance costs.
Operation and Maintenance
• SWEG operates and services all critical wind energy components: Wind turbines,
wind towers and rotor blades.
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Operations and
Maintenance – Elsewedy
Power
With the acquired
know-how of industry
leading MTOI, SWEG
continues to focus on
expanding its
operations and
maintenance offerings.
Balance of plant – Elsewedy
Cables, Elsewedy Transformers,
Elsewedy Electrical Products
(ECMEI), Iskraemeco
SWEG, along with Elsewedy
Engineering and Contracting
companies, acts as system
integrator, executing
balance of plant projects
with support from across
Elsewedy operations
Turnkey Solutions & EPC
• SWEG is integrating and utilizing all capacities within Elsewedy Electric to
provide specialized and complete services to the wind energy sector (like
additional cables, switchgears, transformers and other products and services).
Wind farm Co-development
• SWEG explores Development & IPP business opportunities to support clients
and ensure successful projects.
Elsewedy Electric Investor Presentation 9M-2014
Recent Financial Performance
MANAGEMENT REVIEW
Consolidated Results for 9M-2014 ended September 30th, 2014
Consolidated revenues increased by 14%
to reach EGP 12.8 billion for 9M 2014,
versus EGP 11.2 billion in 9M 2013.
Gross profit increased by 18% to reach
EGP 1,985 million during 9M 2014, versus
EGP 1,677 million in 9M 2013.
Revenue
(LE million)
15,169
14,512
15,099
Gross Profit
Net Profit
(LE million)
(LE million)
1,988
12,902
Net profit after Minority Interest increased
by 63% reached EGP 310 million in 9M
2014 versus EGP 190 million for 9M 2013.
12,813
796
2,065
1,912
1,985
1,832
1,677
11,239
509
310
190
2010
2011
Wires & Cables
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2012
2013
Electrical Products
9M-2013 9M-2014
2010
2011
2012
2013
9M-2013 9M-2014
2010
2011
117
97
2012
2013
9M-2013 9M-2014
Turnkey Projects
Elsewedy Electric Investor Presentation 9M-2014
MANAGEMENT REVIEW
Revenues and Gross Profit Contribution by Business Line
Revenues by
Business Line
9M-2014
0
Revenues by
Business Line
9M-2013
4% 2%
4%
7%
3% 2%
10%
17%
74%
78%
4% 2%
Gross profit
by Business
Line 9M-2014
Gross profit
by Business
Line 9M-2013
9%
5% 5%
13%
14%
14%
64%
70%
Wires & Cables
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Turnkey Projects
Meters
Transformers
Other Electrical Products
Elsewedy Electric Investor Presentation 9M-2014
MANAGEMENT REVIEW
Wire & Cables Segment
Meters Segment
Transformers Segment
Wires & Cables segment revenues increased by 8%
to reach EGP 9,508 million in 9M 2014 versus EGP
8,801 million in 9M 2013. In terms of volumes, the
segment sold 134,096 tons of cables in 9M 2014
versus 118,494 tons in 9M 2013, an increase of
13%.
Revenues from the meters segment decreased by
32% in 9M 2014 versus 9M 2013 to reach EGP 496
million versus EGP 731 million in 9M 2013. Gross
profit decreased by 18% to reach EGP 177 million
in 9M 2014 versus 217 million in 9M 2013.
Revenues from the transformers segment increased
38% in 9M 2014 versus 9M 2013 to reach EGP 465
million, whilst gross profit increased by 10% to
reach EGP 86 million in 9M 2014.
LE (000)’s
Q3-2014
Q3-2013
% Change
9M-2014
9M-2013
% Change
Revenues
4,302,230
3,541,772
21%
12,812,898
11,239,168
14%
Wire & Cables
2,844,073
2,858,613
-1%
9,508,054
8,801,494
2,844,073
Turnkey Projects
1,112,187
309,761
259%
2,120,492
1,162,208
1,112,187
Meters
150,548
207,765
-28%
496,189
731,439
150,548
Transformers
120,845
102,937
17%
464,905
335,847
120,845
Other Electrical Products (Including Wind)
74,578
62,695
19%
223,259
208,181
74,578
686,878
443,130
55%
1,985,003
1,676,783
18%
Wire & Cables
462,345
276,140
67%
1,393,930
1,066,532
31%
Turnkey Projects
145,401
63,522
129%
286,113
233,755
22%
Meters
58,824
53,893
9%
177,482
217,305
-18%
Transformers
31,437
24,853
26%
86,402
78,731
10%
Other Electrical Products (Including Wind)
-11,128
24,722
-145%
41,076
80,459
-49%
Gross Profit Margin
16%
13%
15%
15%
16%
Wire & Cables
16%
10%
-
15%
12%
-
Turnkey Projects
13%
21%
-
13%
20%
-
Meters
39%
26%
-
36%
30%
-
Transformers
26%
24%
-
19%
23%
-
Other Electrical Products (including Wind)
-15%
39%
-
18%
39%
-
Gross Profit
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Elsewedy Electric Investor Presentation 9M-2014
MANAGEMENT REVIEW
Turnkey Projects
Other Electrical Products Segment
Debt
Turnkey revenues witnessed an 82% increase,
reaching EGP 2,120 million in 9M 2014 versus EGP
1,162 million during 9M 2013. Gross profit
increased by 22% to reach EGP 286 million in 9M
2014 versus EGP 234 million in 9M 2013.
.
Revenues from the Electrical products segment
increased by 7% in 9M 2014 versus 9M 2013, to
reach EGP 223 million, whilst gross profit
decreased by 49 % to reach EGP 41 million.
.
Net debt as of September 30th, 2014 remains flat at
EGP 3,344 million versus EGP 3,327 million as of
June 30th, 2014.
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Elsewedy Electric Investor Presentation 9M-2014
FINANCIAL PERFORMANCE: CONSOLIDATED INCOME STATEMENT
2010
2011
2012
2013
9M-2013
9M-2014
Wires & Cables
9,828,543,544
11,306,127,679
11,118,283,671
11,733,985,741
8,801,493,626
9,508,054,323
Electrical Products
1,383,376,706
1,338,459,408
1,513,953,044
1,578,382,507
1,275,466,745
1,184,352,417
Turnkey Projects
1,690,100,136
2,524,616,623
1,880,070,432
1,786,624,669
1,162,207,535
2,120,491,696
12,902,020,387
15,169,203,711
14,512,307,147
15,098,992,917 11,239,167,906 12,812,898,436
(Figures in LE )
Sales
Total Sales
COGS
(10,914,190,218) (13,257,512,379) (12,680,791,224) (13,034,117,023) (9,562,384,972) (10,827,895,704)
1,987,830,168
1,911,691,332
1,831,515,923
2,064,875,894
1,676,782,934
1,985,002,732
15.4%
12.6%
12.6%
13.7%
14.9%
15.5%
SG & A
(851,159,144)
(900,599,128)
(973,720,780)
(1,062,912,959)
(758,657,410)
(775,628,393)
Other Operating Income / (Expenses)
(49,439,537)
43,069,439
(121,239,490)
(206,920,729)
(121,475,263)
(469,665,372)
1,366,317,365
1,384,827,512
1,084,735,660
1,182,215,144
1,080,115,388
1,020,686,620
10.6%
9.1%
7.5%
7.8%
9.6%
8.0%
(279,085,878)
(330,665,869)
(339,532,720)
(387,172,938)
(283,465,127)
(280,977,653)
Fx Gain / ( Loss)
(12,717,369)
(110,732,805)
(96,847,851)
(11,390,697)
(43,490,152)
32,115,885
Provisions
(3,257,001)
730,814
(41,617,456)
(132,744,721)
(116,447,898)
(102,759,519)
EBIT
1,071,257,118
944,159,652
606,737,632
650,906,787
636,712,211
669,065,333
Interest Expense
(220,797,854)
(371,671,108)
(426,460,972)
(434,721,035)
(321,972,239)
(190,834,388)
Interest Income
57,319,589
61,193,380
48,048,786
24,417,366
14,614,372
35,491,040
EBT
907,778,853
633,681,924
228,325,446
240,603,118
329,354,344
513,721,984
Tax
(91,142,132)
(97,134,033)
(82,389,733)
(106,074,477)
(103,681,453)
(179,844,304)
Net Income
816,636,721
536,547,891
145,935,713
134,528,641
225,672,891
333,877,681
Minority Interest
(21,107,572)
(27,429,195)
(29,394,891)
(38,026,848)
(35,379,094)
(23,491,559)
Net Income After Minority Interest
795,529,149
509,118,697
116,540,822
96,501,795
190,293,798
310,386,122
Gross Profit
Gross Profit Margin
EBITDA
EBITDA Margin
Depreciation & Amortization
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Elsewedy Electric Investor Presentation 9M-2014
FINANCIAL PERFORMANCE: CONSOLIDATED BALANCE SHEET
(Figures in LE)
Fixed Assets
Investments
Other Long Term Assets and Goodwill
Total Long Term Assets
31-12-13
31-03-14
30-06-14
3,350,493,168
22,973,473
201,841,704
3,575,308,346
3,302,369,051
23,444,082
187,974,896
3,513,788,029
3,180,465,322
23,582,548
184,779,122
3,388,826,993
30-09-14
3,085,259,802
51,273,173
166,627,922
3,303,160,897
Inventories
Receivables
Other Debt Balance
Due from Related Parties
Cash and Cash Equivalents
3,699,178,762
4,180,729,048
1,182,227,888
192,873,358
1,528,874,240
3,203,412,162
4,456,290,141
1,294,962,293
203,985,677
1,578,909,178
3,964,448,499
4,371,580,693
1,216,807,670
355,749,433
1,945,068,439
3,969,970,224
3,827,468,403
1,506,651,743
463,594,694
1,933,690,932
Total Current Assets
10,783,883,296
10,737,559,450
11,853,654,733
11,701,375,996
Bank Overdraft and Short Term Loans
Accounts Payable
Other Credit Balance
Due to Affiliates
Provisions
Total Current Liabilities
Working Capital
Total Investments
4,918,073,216
1,315,833,852
1,789,747,011
172,680,187
219,829,699
8,416,163,964
2,367,719,332
5,943,027,677
4,405,409,388
1,452,074,148
1,997,647,735
176,283,261
248,730,882
8,280,145,415
2,457,414,035
5,971,202,064
4,918,251,839
1,487,334,790
2,352,759,319
197,789,161
228,371,941
9,184,507,050
2,669,147,682
6,057,974,675
4,897,092,048
1,551,843,802
1,923,857,586
181,749,739
304,231,562
8,858,774,737
2,842,601,259
6,145,762,156
Issued and Paid Capital
Retained Earnings
Net Profit of the year
Others
Total Equity
2,234,180,000
1,900,996,805
96,501,795
1,055,361,465
5,287,040,065
2,234,180,000
1,988,833,580
105,081,480
1,115,363,652
5,443,458,712
2,234,180,000
1,973,344,144
215,034,750
1,131,110,114
5,553,669,002
2,234,180,000
1,945,464,832
310,386,122
1,071,488,908
5,561,519,862
Long Term Loans
Other Long Term Liabilities
Total Long Term Liabilities
Total Long Term Liabilities and Equity
504,689,446
151,298,168
655,987,614
5,943,027,676
358,972,469
168,770,884
527,743,353
5,971,202,061
353,353,906
150,951,754
504,305,660
6,057,974,675
381,035,279
203,207,014
584,242,294
6,145,762,156
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Elsewedy Electric Investor Presentation 9M-2014
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Elsewedy Electric Investor Presentation 9M-2014