1Beltone Financial Credentials | February 2015
LeadingTransformation
CREDENTIALS February 2015
2Beltone Financial Credentials | February 2015
Our Mission
Beltone is a catalyst in the MENA region, innovatively leveraging synergies to benefit stakeholders
Our VisionEnriching individual, corporate and community wealth by engaging in transformational relationships
3Beltone Financial Credentials | February 2015
Our Values
Beltone’s culture is the source of empowerment that drives transformation in our clients and the financial community we serve
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Our Company
* Affiliate of
Beltone Financial
Holding
Cairo
Cairo
Cairo
Dubai
Cairo
London
Cairo
Tripoli Benghazi
Cairo
New York
Cairo
BeltoneInvestment Banking
Beltone Fund AdministrationCompany
BeltoneAsset Management
BeltoneFinancial Emirates
Beltone Fixed Income
BeltoneFinancial UK
Beltone Private Equity*
BeltoneFinancial Libya
Beltone Securities Brokerage
Beltone Financial USA
BeltoneSecurities Holding
Beltone Financial Holding
5Beltone Financial Credentials | February 2015
Our Business
• Fastest growing AUM in Egypt
• Invests in attractive industries with capable management characterized by a sustainable competitive advantage
• Unique MENA focus for advisory and capital raising
• Expert regional knowledge• Expanding coverage of companies
and key industry sectors across MENA
• Multiple MENA markets access• MiFID compliant institutional offering
• Client’s assets held under direct operational control for rapid and seamless execution
• Fastest growing AUM in Egypt
Asset Management
Private Equity*
Investment Banking
Research
Brokerage
Custody
Fund Administration
More than
29 bnE£ under management
More than
2.8 bnE£ in asset value
More than
98.5 bnE£ in transactions
Research covering
Over 70companies
In Egypt
Rank #1In Trading 1H 2014
15.2 bnE£ in Custody
More than
5.5 bnE£ in Administration
Full range of investment banking services
* Affiliate of Beltone Financial
6Beltone Financial Credentials | February 2015
Our Reach
30.95%
24.48%
19.20%
11.74%
3.95%
9.68%
Egypt Financial Investors
Management
Private Equity Investor
GCC Financial Investors
Other Investors above 1%
Free Float
...Supported by a solid shareholder baseA collaborate shareholder base with a common interest of business growth and development
Firm wide reachA network of offices linking clients from every corner of the world to every market in MENA
Beltone offices Spanning the Globe
• Cairo•Dubai
•NewYork•Tripoli
•Benghazi•London
Head Quarter Offices
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Investment Banking
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Investment Banking
E£ 98.5 billion* in 50 transactions closed over the past seven years• Unparalleled MENA market expertise
• Financial advisory and capital-raising services
• Scrupulous state-of-the-art investment banking practices
• Expertise advising and supporting family groups in strategic transformation
• Assisting clients on cross-border initiatives: International players seeking opportunities in MENA or MENA-based companies looking for international expansion or funding
M&A transactions
• Mergers
• Acquisitions
• Divestitures
• Corporate restructuring
• Leveraged buyouts
Capital and debt-raising transactions
• Initial Public Offerings
• Private placements
• Debt-structuring
Investment Banking growth 2004 to dateTransaction volumes in E£ billion
* As of January 31st, 2015
2004 0.4
2005 0.8
2006 2.6
2007 4.0
2008 20.8
2009 14.1
2010 12.9
2011 1.2
2012 20.3
2013 20.8
2014 0.5
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Landmark Transactions
E£ 16.7 bn tender offer by Orascom Development Holding AG resulting in 98% acquisition of Orascom Hotels & Development via a share swap with a cash option. Beltone acted as the sole financial advisor for the company in the tender offer in the largest tender offer in Egypt with around 98% of shareholder opting for the swap thus reducing the financing burden on the company
Orascom Development Holding AG
16.7bnE£ Acquisition
• The global offering of Amer Group, a leading real estate developer in Egypt. Beltone, as the Sole Global Coordinator and Bookrunner, advised the business on a complete corporate and organizational restructuring culminating in raising USD 200 million in expansion capital and secondary share sales.
• Beltone succeeded in attracting significant western institutional demand for the offering, demonstrating strong placement capabilities with international investors.
Initial Public Offering of Amer Group
1.1bnE£ Initial Public Offering
• E£ 20.2 bn tender offer by France Telecom resulting in 94% acquisition of Egyptian Company for Mobile Services - Mobinil.
• Beltone was responsible for transaction structuring advisory on behalf of France Telecom. The transaction represented the largest equity deal executed in the MENA region during 2012.
Tender Offer by France Telecom
20.2bnE£ Acquisition
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Landmark Transactions
The global offering of GB Auto, the leading automotive player in the Middle East. Beltone advised the family business on a complete corporate and organizational restructuring culminating in raising E£ 1.27 billion in expansion capital in 2007’s most successful IPO in Egypt
Initial Public Offering of GB Auto
1.27bnE£ Capital Increase
Beltone advised on the sale of 99.6% of Samcrete Egypt Contractors & Engineers to Samcrete for Engineering Investments through a share swap for a total consideration of E£ 4.1 bn
Samcrete Egypt
4.1bnE£ Acquisition
Beltone jointly advised ENPC, a fully owned entity by Misr Fertilizer Production Company, on the project finance syndicated facility of USD 1.1 billion for the construction and operation of 2 urea/ammonia production trains. It is considered to be the largest transaction to be fully underwritten by local Egyptian banks. Signing of the loan agreement and drawdown occurred in Dec.09
ENPC
5.8bnE£ Project Financing
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Landmark Transactions
CHF 190 million initial public offering for Orascom Development Holding AG. Beltone is the first Egyptian company to co-manage a global public offering for a European based company, Beltone also was the sole listing advisor for the company in Egypt
Orascom Development Holding AG
969mE£ capital increase
Abraaj Capital Ltd acquired Cairo Medical Tower Laboratory S.A.E (Al Borg Laboratories) for a total consideration of EGP 778 million. Beltone counseled Abraaj on a strategy to pre-empt a rival bid and executed in a notably short time period
Abraaj Capital/Al Borg Laboraties
778mE£ Acquisition
The bond offering of GB Auto, the leading automotive player in the Middle East. Beltone advised the publicly listed company on the issuance and listing of an EGP 1.0 billion non-convertible bond
Bond Offering of GB Auto
1.0bnE£ Bond Offering
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Landmark Transactions
E£ 403 million sale of National Drilling Company, an Egyptian drilling company with operations in Libya, to Al Safat Investment. Beltone represented the selling shareholders in divesting 60% of the business
National Drilling Company
403mE£ Share sale
E£ 440 million investment in a joint venture with Al-Kasid Group, Hyundai Motor Company’s agent in Iraq. The 50-50 joint venture will act as a vehicle for importing and distributing Hyundai cars and spare parts in Iraq as well as building Iraq’s leading after-sales service franchise.
GB Auto Joint Venture with Al-Kasid Group
440mE£ Investment
E£ 734 million share swap between Amwal Arabia and Arabia Cotton & Ginning Company. Beltone engineered a complex capital markets solution to the shareholders of both companies, which created the leading integrated textiles player in the Middle East
Amwal Arabia and Arabia Cotton & Ginning Company
734mE£ share swap
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E£ 20,250,000,000(USD 3,375,000,000)
Acquisition and Tender Of Mobinil
Financial Advisor
May 2012
Acquisition of 58% of AMECO Medical Industries via a mandatory tender offer
Sole Financial Advisor
December 2014
The sale of 100% of Nakhla Tobacco Group to Japan Tobacco International
Financial Advisor
March 2013
E£ 100,000,000(USD 16,752, 383)
Debt Raising for Samcrete for Real Estate Development
Sole Financial Advisor
October 2011
E£ 1,130,000,000(USD 189,597, 315)
Rights Issue
Exclusive Financial Advisor
September 2011
E£ 1,315,000,000 & USD 212,800,000
Egyptian Chemical Industries KIMA
Syndicate Facility
Exclusive Financial Advisor
September 2013
E£ 1,150,000,000(USD 200,000,000)
Initial Public Offering
Sole Global Coordinator and Bookrunner
November 2010
Financing Transactions Capital Markets, M&A and Corporate Advisory
E£ 506,074,105 (USD 70,288,105)
Public Offering
Joint Global Coordinator and Bookrunner
December 2014
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E£ 5,775,000,000(USD 1,050,000,000)
ENPC Project Financing
Financial Advisor
December 2009
E£ 4,069,656,000(USD 735,372,795)
Merger with Samcrete for Engineering Investments
Sole Financial Advisor
December 2009
E£ 14,052,600,000(USD 2,532,000,000)
EAgrium’s merger with MOPCO
Exclusive Financial Advisor
January 2009
E£ 671,132,400(USD 120,000,000)
ENPC Bridge Finance
Financial Advisor
January 2009
Financing Transactions Capital Markets, M&A and Corporate Advisory
E£ 440,000,000(USD 80,000,000)
Joint venture between GB AUTO and Al-Kasid Group of Companies
Exclusive Financial Advisor
February 2010
E£ 1,000,000,000(USD 181,818,182)
Bond Offering
Financial Advisor
May 2010
E£ 312,000,000(USD 56,727,273)
Capital Raising
Exclusive Financial Advisor
May 2010
E£ 222,580,449(USD 38,709,643)
Acquisition of 50% of Kandil Glass by North Africa Holding Company
Financial Advisor
November 2010
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E£ 778,299,525(USD 143,978,364)
Acquisition of 76.9% of Cairo Medical Tower Laboratory (Al Borg
Laboratories) Via a tender offer
Sole Financial AdvisorMay 2008
E£ 308,000,000(USD 56,850,640)
Capital Raising
Sole Financial Advisor
March 2008
E£ 734,242,283(USD 131,036,539)
Acquisition of Amwal al Arabia by Arab Cotton Ginning via
share swapExclusive Financial Advisor
October 2007
E£ 150,000,000(USD 26,769,748)
Acquisition of Cougar Capital Management
Exclusive Financial Advisor
October 2007
R. Ghabbour
Financing Transactions Capital Markets, M&A and Corporate Advisory
E£ 16,725,103,579(USD 3,093,992,711)
Acquisition of 98.1% of Orascom Hotels and Development via a
tender offerSole Financial Advisor
May 2008
E£ 969,000,000(CHF 190,000,000)
Global Public Offering and dual listing in Egypt and SwitzerlandCo-Manager on the offering and sole
listing advisor in EgyptMay 2008
E£ 371,000,000(USD 70,000,000)
Joint venture between GB AUTO and Marco Polo
Exclusive Financial Advisor
June 2008
EGP 402,704,224(USD 74,640,927)
Sale of 60% of National Drilling Company to Al Safat Investment
Exclusive Financial Advisor
June 2008
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E£ 387,464,000(USD 66,829,602)
Sale of Sprea Misr and Plastichem to IFI, a subsidiary of EK Holding
Exclusive Financial Advisor
March 2007
E£ 210,000,000(USD 36,220,698)
GB Auto’s acquisition of a 49% stake in CITI
Exclusive Financial Advisor
March 2007
E£ 1,350,000,000(USD 232,161,006)
Structuring and capital raising for a Greenfield sugar manufacturing plant
Exclusive Financial Advisor
December 2006
E£ 464,069,650(USD 79,806,575)
Acquisition of a 26% stake in NCHD by a consortium led by
Beltone CapitalExclusive Financial Advisor
December 2006
Financing Transactions Capital Markets, M&A and Corporate Advisory
Value Not Disclosed
El Nasr Clothing (Kabo) acquisition of Wave for Trading and Agencies
Exclusive Financial Advisor
April 2007
E£ 103,000,000(USD 17,798,514)
Pre-IPO financing via convertible loan
Exclusive Financial Advisor
May 2007
E£ 1,270,870,293(USD 221,284,923)
Initial Public Offering
Global Coordinator, Lead Manager and Sole Bookrunner
July 2007
E£ 278,619,625(USD 49,723,848)
Acquisition of 28.9% of Semiramis Hotels via a tender offer
Sole Financial Advisor
October 2007
Rolaco Hotels
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Financing Transactions Capital Markets, M&A and Corporate Advisory
E£ 44,426,466(USD 7,665,022)
Modern Nile Cotton bid for El Nasr Clothing and Textiles (KABO)
Exclusive Financial Advisor
September 2005
E£ 350,000,000(USD 60,242,415)
Placement of equity piece in Weather Investment’s
acquisition of WindLead Placement Agent
August 2005
Weather Investments
E£ 340,000,000(USD 58,262,476)
Initial Public Offering
Lead Manager and Sole Bookrunner
May 2005
E£ 375,857,349(USD 60,006,506)
Sale of Celtel International’s shares in Vodafone Egypt
Lead Placement Agent and Bookrunner
September 2004
E£ 90,000,000(USD 15,495,201)
The sale of Enjoy to a strategic investor
Exclusive Financial Advisor
October 2005
E£ 70,000,000(USD 11,971,419)
Acquisition of a global Swiss trademark and subsequent
capital raisingExclusive Financial Advisor
June 2006
E£ 100,000,000(USD 17,220,922)
Capital Increase in Mena for Touristic and Real Estate Development
Exclusive Financial Advisor
August 2006
E£ 575,000,000(USD 99,071,656)
Capital Increase in Orascom Hotels and Development
Co-advisor and Placement Agent
November 2006
18Beltone Financial Credentials | February 2015
Financing Transactions Significant Transactions in KSA
SAR 200,000,000(E£ 309,250,000)
Initial Public Offering
Financial Advisor and Arranger
February 2007
E£ 40,000,000(E£ 61,729,200)
Initial Public Offering
Financial Advisor and Arranger
May 2007
SAR 105,000,000(E£ 157,664,850)
Initial Public Offering
Financial Advisor and Arranger
October 2007
SAR 80,400,000(E£ 120,726,228)
Initial Public Offering
Financial Advisor and Arranger
October 2007
SAR 40,000,000(E£ 61,729,200)
Initial Public Offering
Financial Advisor and Arranger
May 2007
SAR 40,000,000(E£ 61,729,200)
Initial Public Offering
Financial Advisor and Arranger
May 2007
SAR 70,000,000(E£ 108,237,500)
Capital Increase
Financial Advisor
February 2007
SAR 357,000,000(E£ 511,420,350)
Sale of 55% of Al Sawani to
Global Investment House
Financial Advisor
July 2008
Trade Union Cooperative Insurance Al Sagr Cooperative Insurance Saudi Arabian Cooperative Insurance
Al-Ahlia Cooperative Insurance
19Beltone Financial Credentials | February 2015
Asset Management
20Beltone Financial Credentials | February 2015
Strong Track Record
Beltone Asset Management is the leader in its industry, with assets under management in excess of E£ 29 billion*, driven by our capacity to continuously introduce innovative products
Wide range of product offeringsThrough our knowledge in launching and managing funds, we have gained the experience of the regional asset management business which enabled us to develop innovative products that cater to varying risk-return profiles
* As of January 31st, 2015
• From Money Market to leveraged Equity • From Plain Vanilla to Structured Products • From Morocco to Oman • From Conventional to Islamic
Money Market
Fixed Income
Capital Guaranteed
Balanced
EquityLeveraged Equity
Risk
Retu
rn
Remarkable industry experience catering to all investor profiles
More than 15 years of regional expertise
• Bahrain • Egypt • Libya • Lebanon • Jordan • KSA • Kuwait • Morocco • Oman • Qatar
• Tunisia • UAE
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Milestones
Assets under management grew at a CAGR of 35% becoming the largest manager in Egypt
More than
29bnE£ under management
Largest Money Market player in Egypt with a market share of 44%
Banque Misr MM Fund awarded best treasury & cash management provider 5 times in a row
Product innovation, offering the 1st money market account, technical fund & ESSP
Advised CBE on the est. of its RMU & managed our first MENA portfolio for one of the largest SWF
Others
56%
BAM
44%
22Beltone Financial Credentials | February 2015
Fund Offerings
• Provides daily liquidity while preserving capital• Cash flow management tool• Daily subscriptions & redemptions• Interest accumulated daily• Invest in secure short term interest bearing securities• Low initial subscription with minimum thereafter and no maximum• Accessibility benefits similar to current accounts• Returns are tax exempt
• Provides daily liquidity while preserving capital• Cash flow management tool• Daily subscriptions & redemptions• Interest accumulated daily• Invest in secure short term interest bearing securities• Low initial subscription with minimum thereafter and no maximum• Accessibility benefits similar to current accounts• Returns are tax exempt
MONEY MARKET
CURRENCY MM
صندوق إستثمار “كل يوم”
إستثمار ص��ن��دوق “الشركة المصرفية
العربية الدولية”
صندوق إستثمار “ح��ص��ن الأم����ان
اليومي”
إستثمار صندوق ظبى ابو “مصرف الاسلامى - مصر”
صندوق إستثمار “ي�وم�ات�ى”
صندوق إستثمار“م�����زاي������ا”
GOLDSILVER
USD Euro
ح������ص������ن أم���������������ان ل����ل����م����لاي����ي����ن
23Beltone Financial Credentials | February 2015
Fund Offerings
• Investing in companies listed in Egypt
• Exposure to Egypt which is positioned for long term growth
• A minimum of 70 % of the fund to be invested in listed securities
• Daily subscriptions & weekly redemptions
• No minimum initial subscription
• Invests in Egyptian equities & Fixed Income
• Exposure to Egypt; positioned for growth
• Benefit from diversification and smoothing of market volatility
• Weekly subscriptions & redemptions
• Minimum initial subscription of EGP 10,000
• Periodical distribution of dividends
• Invests in companies listed in MENA
• Exposure to MENA which is positioned for long term growth
• Invests up to 10% in pre-IPOs
• Safe Haven provision• Low minimum entry of USD
10,000 • Weekly subscription &
redemptions
• Invests in companies listed in Egypt
• Exposure to Egypt which is positioned for long term growth
• A management style dependent on technical views to benefit from market trends
• Weekly subscriptions & redemptions
• Minimum initial subscription of EGP 5,000
EQUITY / BALANCED
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Saving Plans
• Improve employees’ safety net• Attract & retain calibre employees• Simple structure & easy implementation• Flexibility in customizing corporate
contribution• Flexible plan by-laws and vesting rules• Off balance sheet• Reduce or limit corporate liability and
obligations• Ability to meet new labor law requirements
• Maximize net-worth at retirement• Tax-deductible savings• Tax-free payment at end of service• Gain of company contributions• Capital protection and return maximization• Employee involvement and oversight by
BOT• Simple to understand• Individual accounts, semi-annual reporting
• Offering expertise in managing a diverse portfolio of insurance products for more than 4 years
• Building and protecting the wealth and security of individuals and businesses
• Launching innovative savings products aimed at satisfying client needs
EMPLOYER BENEFITS EMPLOYEE BENEFITS
INSURANCE SAVING PRODUCTS
END OF SERVICE SAVING PLAN
...a matter of life
Egyptian Cement Company
25Beltone Financial Credentials | February 2015
Portfolio Offerings
EQUITY LONG TERM CAPITAL APPRECIATION
FIXED INCOME CAPITAL PRESERVATION
Country Specific Investing in securities on any regional stock exchange of a specific country
Sector Specific Investing in securities on any regional stock exchange of a specific sector
Regional Investing in securities on any regional stock exchange of the MENA region or a sub-set of the MENA region
Sharia’a compliant Investing only in Shari’a compliant securities listed and traded on the stock exchanges
Indexed Investing entirely in equities listed in an acceptable index
Technical Investing in securities using a technical and momentum driven trading systems
Duration Specific Investing in fixed income instruments with a catered duration (short - long term)
Corporate Bond Investing conventional MENA corporate bond issues of credible issuers
Sukuk Investing in corporate and government Sukuk issues of credible issuers
Money Market A current account with competitive daily interest investing in secure, high yielding, short-term interest bearing instruments denominated in (EFG,USD, Euro)
26Beltone Financial Credentials | February 2015
Portfolio Offerings
OTHER
DEFINING THE CLIENT PROFILE BENEFITS
Balanced Investing 40-60% of funds to equity holdings and 40-60% in fixed income vehicles
Dynamic Asset Allocation Periodic shifting of assets between stocks, bonds, and cash based on a quantitative process
Capital Protected Investing in a regional equity index and capital preservation through dynamic asset allocation (Delta Hedging)
Protected Returns Perpetual rolling structure combined with dynamic asset allocation strategies to continuously lock in client returns
Risk and return objectives and constraints are defined and subject to Client’s specific requirements
INVESTMENT OBJECTIVE
INVESTMENT CONSTRAINTS
OPTIMAL CLIENT MANDATE
• Risk
• Return
• Time horizon
• Tax consideration
• Legal & regulator
• Liquidity constraints
• Unique requirements
RELATIONSHIPMANAGEMENT
CATERED REPORTING
FREQUENT REVIEWS
EXTENDED FLEXIBILITY
27Beltone Financial Credentials | February 2015
Diligent Investment Process
Specialization and focus, combined with Beltone’s Country-Country-Sector (CCS) value added fundamental process result in lucrative stock selection and exceptional performance
FUNDAMENTAL APPROACH WITH THE MAIN ALPHA DRIVERS
SPECIALIZATION AND FOCUS DILIGENT INVESTMENT PROCESS
Specialized independent departments supporting a focused Portfolio Manager, scrutinized by internal audit and compliance
Country focused portfolio managers & sector driven analysts create a ‘top down’ approach with a ‘bottom up’ over-lay implemented and monitored through daily, weekly and monthly meetings
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Securities Brokerage
29Beltone Financial Credentials | February 2015
Securities Brokerage
Beltone Securities focuses on institutional investors located in the US, Europe and the Middle East region. The company has created two segregated teams to focus on Wealth Management for high-net-worth individuals, and equity execution for retail clients. Beltone Securities provides seamless execution and settlement in several markets by leveraging a strong proprietary network as well as its strategic partnerships across the globe.
30Beltone Financial Credentials | February 2015
Securities Brokerage
Single broker contact available in markets with Beltone presence
Brokerage clients• US• UK• Ireland• Germany• Switzerland
• Egypt• France• Kuwait• KSA• UAE
• Bahrain • Qatar • South Africa
over 1,200 clients worldwide
GEOGRAPHIC REACH
•Egypt
•UK
•Dubai
•USA
•Libya
31Beltone Financial Credentials | February 2015
Geographic Exposure
Beltone Financial operations extend across the MENA region, Africa, Europe and North America. Expansion plans exist to tap into the US and UK markets
Physical presence
Execution presence
32Beltone Financial Credentials | February 2015
2009Beltone Financial´s
1st MENA Conference inNewYorkMiddle East & North Africa Investments18th - 19th May, 2009
2010Beltone Financial´s
1st MENA Conference in QatarMiddle East & North Africa InvestmentsDoha, 22nd - 23rd February, 2010
2010Beltone Financial´s
2nd MENA Conference inNewYorkMiddle East & North Africa Investments24th - 25th May, 2010
2012
2008Beltone Financial´s
First Egypt Day inNewYorkMiddle East & North Africa Investments4th - 5th February, 2008
2008Beltone Financial´s
Future Trends in EgyptMiddle East & North Africa InvestmentsLondon, 23rd - 24th June, 2008
Four Seasons Nile plaza, Cairo September 24-26, 2012
A New Dawn
Corporate Access
Worldwide Events and Roadshows
Beltone Financial hosted a series of widely acclaimedinvestmentconferencesinNewYork,London and Doha. The company has held three conferencesincoordinationwithNewYorkStockExchange, three corporate access days in London, in addition to two investor’s conferences in Doha sponsored by the Qatar Exchange focusing on investment opportunities across MENA region. The events allowed investors to meet with the heads of listed companies from the Middle East on a one-on-one basis to demonstrate the fundamentals for strong, long-term growth and profitability.
Moreover, Beltone arranges for road-shows around the globe to reach both its current and potential clients. In addition, the research department arranges for periodic client conference calls with sector analysts and the management teams of listed companies, and along with the sales team, continuously meet with the management of the listed companies
33Beltone Financial Credentials | February 2015
Landmark Transactions
E£ 11.6bnJune 2014
BARWA Egypt Real Estate
E£ 372mDecember 2009
Heinz
E£ 16.6bnMarch 2013
Qatar National Bank
E£ 1.1bnNovember 2010
AMER Group Holding
E£ 20bnMay 2012
France Telecom
E£ 1.0bnMay 2010
GB Auto
34Beltone Financial Credentials | February 2015
Landmark Transactions
E£ 2bnDecember 2009
Orascom Development Holding AG
E£ 4.1bnDecember 2009
Samcrete Egypt
E£ 15bnNovember 2009
Lafarge Building Materials Holding
E£ 15bnNovember 2009
Lafarge Cement Egypt
E£ 300mAugust 2009
Brawa Real Estate
E£ 3.5bnJune 2009
Egyptian Fertilizer Company
35Beltone Financial Credentials | February 2015
Landmark Transactions
E£ 1.1bnMarch 2009
Bank of Alexandria
E£ 15bnJanuary 2009
EAgrium merger with MOPCO
E£ 387mJune 2008
Sprea & Plastichem
E£ 483mJune 2008
El Nasr Clothing (Kabo)
E£ 778mMay 2008
Abraaj Capital/Al Borg Laboraties
E£ 16.7bnMay 2008
Orascom Development Holding AG
36Beltone Financial Credentials | February 2015
Landmark Transactions
E£ 9.2bnOctober 2006
Bank of Alexandria
E£ 340mMay 2005
RAYA Holding
37Beltone Financial Credentials | February 2015
Beltone Securities Holding
Currently more than E£15.2 billion* Investors benefit from fast execution and settlement through the efficient receipt, delivery and safekeeping of securities, cash and foreign exchange
Beltone Securities Holding gives clients the benefit of their assets held under direct operational control for rapid and seamless exectution
The Custody team comprises highly qualified industry specialists with experience in leading regional and international investment banks.
Beltone Securities Holding is regulated by the Egyptian Capital Market Authority. Assets and processes are in compliance with all regulations in the diverse markets in which Beltone operates.
• Safe custody of assets
• Income and dividends collection
• Corporate action processing
• Proxy voting processing
• Standard custody reporting
* As of January 31st, 2015
38Beltone Financial Credentials | February 2015
Research
39Beltone Financial Credentials | February 2015
Reports
Beltone’s Research Department is acknowledged as the authoritative source for qualitative and quantitative information on the MENA region’s rapidly expanding capital markets. By the end of 2014, coverage will extend across the different sectors within the region, to reach more than 75 stocks.
GENERAL MARKET PRODUCTS COMPANY-SPECIFIC PRODUCTS
BELTONE RESEARCH PRODUCTS
SECTOR-SPECIFIC PRODUCTS
• MENA Morning Bell, that covers regional daily news
• MENA Closing Bell that covers regional markets’ daily performance
• MENA Weekly Screen
• Daily Traders Corner, that covers regional technical analysis
• Initial Coverage Reports
• Company Update Reports
• Company Newsflash Reports
* All reports on Egypt are produced in English
and Arabic
• Sector Reviews
• Regional Economic Research
• Regional Strategy Research
• Thematic Research
40Beltone Financial Credentials | February 2015
Strategy Macro Financials IndustrialsConsumer &
ServicesTelecom Real Estate TOTAL
Egypt 6 7 12 3 3 31
Saudi Arabia 8 5 3 2 -- 18
UAE 6 2 -- 2 1 11
Qatar 4 1 1 1 -- 7
Kuwait 2 -- -- -- -- 2
Oman 2 -- -- -- -- 2
Lebanon -- 2 -- -- -- -- 2
TOTAL -- 30 15 16 8 4 73
Company Coverage | MENA Region Research Publications
Coverage
2005 5 2005 5
2006 12 2006 44
2007 31 2007 69
2009 58 2009 131
2011 63 2011 272
2008 53 2008 92
2010 56 2010 147
2012 69 2012 310
2013 70
2014 73
2013 353
2014 531
* As of January 31st, 2015
2015 73* 2015 56*
41Beltone Financial Credentials | February 2015
Countries Covered and Distribution
Covered by research
Research distributed
•Algeria•Austria•Bahrain•Belgium•Canada•Chile•Cyprus•CzechRepublic•Denmark•Egypt• •Libya•France•Germany•Greece•HongKong•Italy•Japan•Jordan•KSA•Kuwait•Lebanon•
Malaysia•Netherlands•Norway•Oman•Pakistan•Philippines•Qatar•SouthAfrica•Switzerland•Syria• •Thailand•Turkey•UAE•UK•Ukraine•USA•Yemen•
33 countries
42Beltone Financial Credentials | February 2015
Beltone Private Equity
43Beltone Financial Credentials | February 2015
Introduction
Diligent Investment Approach
Successful Origination Platform
Innovative Investment Strategies
Unmatched Access to Proprietary Deal Flow
Wide-Ranging Investment Expertise
Best Investment Practices and Proven Track Record
Experienced Management Team
Strong Local Network and Infrastructure
Value Proposition• Established in 2006
• Affiliate of Beltone Financial Holding
• Over EGP 2.8 billion in assets under management across 6 investment vehicles
• Controls EGP 5.3 billion of investments
• Deployed more than EGP 1.9 billion across 14 portfolio investments
• 17 qualified investment and support professionals with more than 260 combined years of experience
44Beltone Financial Credentials | February 2015
Evolution
# of Investment Vehicles
Assets Under Management (EGP million)
2006
1
4661,202 1,582
1,8782,333 2,333 2,043
2,781
4 63 5 4 6
20092007 20102008 2011 2012 2013
• Established in 2006, Beltone Capital is BPE’s flagship vehicle investing opportunistically in Egyptian companies with strong, capable management and significant growth prospects. Investments are typically structured with control through majority stakes either alone or in partnership with co-investors
• Beltone Investment Group (“BIG”), a co-investment vehicle, was established in 2007 to invest alongside Beltone Capital in a controlling stake in Madinet Nasr for Housing and Development (MNHD.CA), a leading publicly-traded middle income real estate developer
• Beltone Retail is a specialized investment vehicle committed to consolidate successful retail operations and franchises with a focus on the Egyptian retail sector
• Established in 2008, Al Ismaelia for Real Estate Investment is a specialty real estate investment vehicle focused on acquiring, refurbishing and leasing prime real estate assets in Downtown Cairo
• Established in 2009, Beltone Midcap Fund targets investments in the SME sector in Egypt. It is co-managed with Siparex Group, a leading French private equity SME specialist
• Capital Partners for Tourism Ltd., a co-investment vehicle, was established in 2010 to invest alongside Beltone Capital in Pickalbatros Hotels and Resorts, a leading budget hotel owner and operator in Egypt and Morocco
•With the exit from Pickalbatros Hotels and Resorts in 2011, Beltone Private Equity exited Capital Partners for Tourism Ltd.
•Beltone Private Equity exited from Beltone Retail in 2011
•BPE Energy Ltd., a co-investment vehicle, was established in 2013 to invest alongside Beltone Capital in TOTAL Egypt, the leading oil and gas company in Europe
•BPE Power Ltd., an investment vehicle, established in 2013 to invest in PGESCo, a leading provider of engineering, procurement, project and Site management services to electric power plants
45Beltone Financial Credentials | February 2015
Assets Under ManagementCurrent Investment Vehicles
Generalist Investment Vehicles Specialized Investment Vehicles
MIDCAPBeltone
FUND
ــــــــمــــــــار الـــــــمـــــــبـــــــاشـــــــر ــــــــث ــــــــلإســــــــت ــــــــــون ل ــــــــــت ــــــــــل بBELTONE PRIVATE EQUITY
ــــــــــــــــون انــــــــــڤــــــــــســــــــــتــــــــــمــــــــــنــــــــــت جــــــــــــــــــــروب ــــــــــــــــت ــــــــــــــــل بBELTONE INVESTMENT GROUP
ـــــــــــــون كـــــــــابـــــــــيـــــــــتـــــــــال ـــــــــــــت ـــــــــــــل بBELTONE CAPITAL
E G Y P T
Beltone Capital Holding Midcap FundBeltone Investment
Group (“BIG”)Al Ismaelia BPE Energy Ltd. BPE Power Ltd.
Vintage 2006 2009 2007 2008 2013 2013
Committed Capital EGP 583mn USD 39mn EGP 418mn EGP 380mn USD 24 million EGP 78 million
Sector Focus General SMEs Real Estate Real Estate Oil & Gas Power Engineering
Description
An opportunistic investment vehicle
that seeks controlling stakes in businesses with solid management and
growth prospects
An SME-focused fund targeting strategic minority positions in private Egyptian
companies
A Beltone Capital co-investment vehicle invested in Madinet
Nasr for Housing and Development (MNHD.
CA), a leading publicly-traded middle income real estate developer
A specialty real estate investment vehicle focused on
acquiring, refurbishing and leasing prime
real estate assets in Downtown Cairo
A Beltone Capital co-investment vehicle
invested in TOTAL Egypt, the leading oil and gas company in
Europe
A BPE managedinvestment vehicle
invested in PGESCo, aleading provider of
engineering,procurement, projectand Site management
services to electricpower plants
Legal StructureEgyptian Joint Stock
CompanyLuxembourg LLP BVI Limited
Egyptian Joint Stock Company
Cayman Ltd. BVI Ltd.
Invested Capital EGP 249mn USD 2.5mn EGP 418mn EGP 244mn USD 24mn EGP 78 million
Current Portfolio Companies
- MNHD- Giza Systems
- BEARD- Shams Industrial
- Bio Pharma Egypt- Shams Industrial
- MNHD- 20 buildings and
70,000 sqm acquired-TOTAL Egypt - PGESCo
Exited Portfolio Companies
- GB Auto- Al Nouran
- Pickalbatros Holding
46Beltone Financial Credentials | February 2015
Exited Investment Vehicles
Specialized Investment Vehicles
Beltone Retail Capital Partners for Tourism
Vintage 2007-2011 2010-2011
Committed Capital EGP 103mn EGP 313
Sector Focus Retail Hospitality & Tourism
Description
An investment vehicle focused on the burgeoning retail sector and aimed at capitalizing on the
partners’ expertise in the different segments of retail businesses in Egypt
A co-investment vehicle established to invest alongside Beltone Capital in Pickalbatros Holding,
a leading budget hotel & resort operator
Legal Structure Egyptian Joint Stock Company BVI Limited
Invested Capital EGP 103mn EGP 313mn
Current Portfolio Companies
Exited Portfolio Companies
- Al Sawani- Nile Stock and Red Tags - Pickalbatros Holding
Assets Under Management
47Beltone Financial Credentials | February 2015
FactsSeeks control through majority stakes either directly or in combination with co-investors
Maximum exposure of 20% per investment and 25% per sector
Vintage Year: 2006
Total Commitment: EGP 583 million
Total Investment: EGP 451 million
DescriptionBeltone Private Equity launched Beltone Capital in 2006 to invest predominantly in Egyptian companies with strong, capable management and growth prospects. The fund is invested in a variety of portfolio companies
MADINET NASR HOUSING & DEVELOPMENT:
Madinet Nasr Housing and Development is a leading Egyptian middle income real estate developer. The company is listed on the Egyptian Exchange and has a strong brand name and track record in the middle income housing segment
GIZA SYSTEMS:
The company is one of Egypt’s most prominent system integrators and the market leader in the Egyptian telecommunications and utilities IT space
BÉARD:
The Swiss company manufactures flatware and hollowware products and is a favourite among 5-star hoteliers worldwide. BÉARD has a manufacturing facility in Egypt that manufactures and distributes the BÉARD products worldwide
SHAMS INDUSTRIAL:
The company is the sole distributor and manufacturer of the Hisense home appliance products in Egypt. Since 2009, the Hisense brand controls 12% of the flat screen TV, and 3% of the air conditioning market. Beltone’s managed funds control 50% of Shams Industrial
TOTAL EGYPT:
TOTAL Egypt has grown to 71 service stations since establishment in 1998. The transaction will triple TOTAL Egypt’s size and add 150 service stations to its network
GIZA SYSTEMS BĒARDTOTAL MNHD
Beltone Capital
SHAMS INDUSTRIAL - HISENSE
48Beltone Financial Credentials | February 2015
FactsVintage Year: 2008
Total Commitment: EGP 380 million
Total Investment: EGP 252 million
DescriptionAl Ismaelia is a unique niche-based real estate development project, created in association with a dedicated project sponsor
It was co-founded in 2008 by Beltone Private Equity and Amwal al Khaleej, and is managed by Beltone Private Equity
Al Ismaelia vision is to acquire, manage space, and refurbish historic real estate assets in downtown Cairo, that are architecturally superior. Additionally, Al Ismaelia vision involves the creation of building clusters to develop commercial districts that are aesthetically congruent
The project will include a property development and property management function to optimize returns to shareholders
Al Ismaelia targets one million sqm in Cairo’s Downtown area, providing critical mass to enable the creation of an integrated commercial location, leading to asset appreciation
Project Phases
Company Assets
Al Ismaelia for Real Estate Investments
1. BUILDING ACQUISITION 2. SPACE MANAGEMENT 3. RENOVATION
Abdel Khalek Tharwat Cinema Radio Shourbagy Building Ghraib Morcos Building
49Beltone Financial Credentials | February 2015
Beltone MidCap Fund
Facts• Incorporated in Luxembourg
• Sub-Funds are closed-ended for a duration of 8 years each, extendable to 10 years
• General Partner is a partnership between Beltone Private Equity and SIGEFI Private Equity and Investment Manager is Beltone Private Equity
• Investment Period is 4 years with and investment size ranges between USD 2 – 4 million
• •Investsinsignificantminorityandselected majority stakes in companies with a successful operating history, with revenues of USD 5 - 50 million per annum with a maximum fund exposure of 10% per investment and 25% per sector
DescriptionThe Fund was created to capitalize on the underdeveloped status of the SME sector in Egypt, to fulfill funding requirements of this underserved segment, and to promote the SME role in economic development at large
The General Partner is Beltone MidCap Management S.A, a partnership between Beltone Private Equity (75%) and SIGEFI (25%), the private equity management arm of France’s Siparex Group. Founded in 1977, Siparex has a top-notch reputation recognizable by the most prominent French and international investors as a specialist in the investment management of SMEs
Sectors of interest identified for the Fund are those with competitive edge and export potential, including but not limited to pharmaceuticals, healthcare, food processing and agri-business, plastics and packaging, and services
Important criteria include companies of rapid growth potential, ambitious and dynamic management, clear competitive distinction, and ability to create value by focusing on core strengths of Beltone and SIGEFI, as well as potential upside in exit
Beltone MidCap Fund is currently invested in Bio Pharma, an Egyptian market leader in dietary supplements and Shams Industrial – Hisense, operating in the electric, and home appliance industry.
In August 2013, Beltone MidCap Fund successfully closed the investment in Cairo Kidney Center (CKC), a renowned specialized kidney for the diagnosis and treatment of kidney diseases, hospital located downtown Cairo .
CKC
BELTONE PRIVATE EQUITY SIGEFI / SIPAREX
HISENSE BIO PHARMA
Vintage Year: 2009
Total Commitment: USD 39 million
Total Investment: USD 4.34 million
• SME experience
• Corporate governance and
• Technical support
• European business network
• Investment advisory
• Support
• Regional presence
• Access to deal flow
• Fund-raising capabilities
• Structuring expertise
• Understanding of domestic investment dynamics
50Beltone Financial Credentials | February 2015
FactsVintage Year: 2013
Type of Transaction: Buyout
Ownership: 40%
Description• BPE Power Ltd., a Beltone Private Equity (BPE) managed investment vehicle, has recently invested in the Power
Generation Engineering & Service Company SAE (PGESCo)
• PGESCo was formed initially as a joint venture between the Bechtel Corporation and the Egyptian Ministry of Electricity & Energy to realize the Egyptian government’s vision of supporting power generation projects to develop and localize industrial capabilities in Egypt
• The main services offered by PGESCo are the engineering & consulting services related to the design, management and monitoring of the manufacturing of electrical power plants
• PGESCo has a regional footprint of 52 projects with a total capacity of 30,631MW
PGESCo
51Beltone Financial Credentials | February 2015
1 . GB AUTO
INVESTMENT OVERVIEW
DIVESTMENT OVERVIEW DIVESTMENT OVERVIEW DIVESTMENT OVERVIEW
INVESTMENT OVERVIEW INVESTMENT OVERVIEW
2. AL NOURAN MULTITRADING CORPORATION 3. PICKALBATROS HOLDING
GB Auto is the leading player in the Egyptian automotive industry. The group assembles and distributes its diversified product mix to an extensive customer base that includes Egyptian retail consumers, transportation companies, private-sector companies, and various governmental authorities and agencies
Investment Date: 2006
Total Commitment: EGP 20.3m
Type of Investment: Pre-IPO
In 2006 GB Auto was undergoing a restructuring and institutionalization program prior to its initial public offering. Beltone Capital purchased 1.4 m shares from the original shareholders
ExitYear: 2007
Exit Type: IPO
ExitYear: 2009
Exit Type: Share buy-back at par by Founders
ExitYear: 2011
Exit Type: Share buy-back by Founder
InvestmentYear: 2006
Total Commitment: EGP35.8m
Total Funded: EGP 9m
Type of Investment: Greenfield
In 2006, Al Nouran was raising equity to build a new sugar beet production and refinery facility. Beltone Capital decided to invest in Al Nouran and paid up 25% of its commitment
InvestmentYear: 2009
Total Commitment: EGP 435m
Total Funded: EGP 435m
Type of Investment: Pre-IPO/Growth Capital
In 2009, Pickalbatros used the equity funding to buy out shareholders from partially-owned subsidiaries, expand room portfolio in Egypt and Morocco
A Greenfield investment in Egypt’s first integrated sugar group. The project involved the construction of a state-of-the art sugar beet production facility in Egypt in addition to a commodities trading business specialized in trading raw and refined sugar, both locally and imported, as well as planting and cultivating sugar beet using mono-germ seedlings and mechanization
Based in Egypt, Pickalbatros Group of Companies is a privately-owned resort and hotel property owner and operator that specializes in the development and management of a wide variety of hotel properties located in prime destinations in Egypt and Morocco. In 2009, Pickalbatros operated a local network of 13 hotels and resorts with 5,900 rooms. By end of 2011, Pickalbatros was operating 19 hotels and resorts with over 8,500 rooms
AL NOURAN MULTITRADING COPRPO-RATION PLC
1985 - 2005
Exited Portfolio Companies
52Beltone Financial Credentials | February 2015
1 . AL-SAWANI
INVESTMENT OVERVIEW
DIVESTMENT OVERVIEW DIVESTMENT OVERVIEW
INVESTMENT OVERVIEW
2. NILE STOCK AND RED TAGS
Al-Sawani Group, established in 1977, started the concept of department store in the Middle East. The company is considered one of the Middle East’s foremost fashion, accessories and home collection goods pioneer. With operations in 13 Arab countries (Egypt, KSA, Kuwait, UAE, etc.) the operates over 500 outlets
Investment Date: 2008
Total Commitment: EGP 52.25m
Type of Investment: Growth Capital
With the goal to become Middle East’s leading lifestyle retailer, Al-Sawani opened 146 selling outlets in 2007. Following the 2011 revolution, Beltone Retail sold its stake in Al Sawani Egypt to the Al Sawani Group (the mother company)
ExitYear: 2011
Exit Type: Sale to partners
ExitYear: 2011
Exit Type: Sale to original shareholders
InvestmentYear: 2008
Total Commitment: EGP 7m
Type of Investment: Growth Capital
Beltone Retail exited its minority stake of 38% in Nile Stock and Red Tags in late 2011 through a sale to the original shareholders
Nile Stock is one of Egypt’s first retail outlet concepts offering customers international branded sportswear, casual wear, and basics
Red Tags (subsidiary of Nile Stock) is an upscale outlet store with imported designer fashion sells overstocked and out-of-season collection
Exited Portfolio Companies
Beltone Retail Exits
53Beltone Financial Credentials | February 2015
Beltone Academy
54Beltone Financial Credentials | February 2015
Beltone Academy
The Beltone Academy, first established in 2007, ensures the constant flow of excellent talent into Beltone. Out of hundreds of applicants, only the top 20 are selected after rigorous testing and interviews. The academy courses are designed to develop their experiences and skills to pursue their careers in the financial services industry.
• Develop a world class financial services industry in the MENA region
• Taking a leadership role to develop a core of top-notch professionals
• Investing time and resources to identify and mentor future leaders
• Sharing Beltone’s global knowledge, skills and experience
• Offering young people unrestricted opportunities
• Contributing to MENA’s overall economic growth