#1GRITZNER Arafa HOLDING Investor Presentation FY 2021#2Arafa Holding at a Glance OVERVIEW ☐ Publicly traded since 2006 with a 38.5% free float and the rest is owned by Arafa Family. Stock is traded in USD. 3 Operational activities: Textiles, Apparel & Tailoring, Retail & Distribution. +10% of Egypt's total garment exports. Industrial facilities at 10th of Ramadan & Beni Suef city Brands: CONCRETE EST. 1989 TED BAKER LONDON THE ORIGINAL Ben Sherman By Appointment to Her Majesty The Queen Talora Alexandre of England 1908d Loeds ALEXANDRE OF ENGLAND JEFF BANKS LONDON RACING GREEN BRITISH STYLE Gibson LONDON Arafa HOLDING +13,000 employees. Manufacturing home for luxury garments. Homegrown luxury brand "CONCRETE" with +40 retail stores across Egypt. 15% of the UK suits market. In March 2012 inaugurated Camegit a 50:50 JV with "Ermenegildo Zegna" in Egypt. Clients: Offering customers World-Class Quality and Global Competitiveness for more than 100 years Massimo Dutti Brooks Brothers MANGO JOSEPH AB BO D Ermenegildo Zegna DEBENHAMS BYTOM SZTUKA KRAWIECTWA OD 1945 M MEN'S WEARHOUSE W AL ARAFA FOR INVESTMENT & CONSULTANCIES | FY 2021 Investor Presentation AX Walmart⭑macy's ARMANI EXCHANGE PEERLES VRG ZARA CLOTHING INTERNATIONA VISTULA RETAIL GROUP EMPORIO ARMANI Dillard's SLIDE 2#3Vertically Integrated Business Model OVERVIEW Within each of the three key segments, operations are further vertically integrated across the 3 main activities: Textiles, Apparel & Tailoring and Retail & Distribution. The Vertical Integration of the 3 Business Activities provides a buffer against market swings Retail & Distribution THE BAIRD Λ A GROUP CONCRETE EST. 1989 Apparel & Tailoring Textiles SG C ETC SC G SWISS GARMENTS CO. EGYPT TAILORING CO. Swiss Company for Cotton Garments GoldenTex SINCE 1982 euromeo CRISTALL FOR MAKING SHIRTS Arafa AL ARAFA FOR INVESTMENT & CONSULTANCIES | FY 2021 Investor Presentation HOLDING Camegit SLIDE 3#4Strong Retail business with substantial market share Baird Group (UK & EU) Concrete (Egypt) RETAIL BUSINESS Euromed (Egypt) • More than 50 of multiple stores and online channels in UK. • Significant market share of formal menswear in UK market. Online business 17% of turnover. • Turnover USD 87.7 million in FY 2021. • 38 stores in Egypt. Homegrown luxurious brand in Egypt inspired by Italian designs and materials. • 20% market share regulated market. of • Offering Made to Measure service with exclusive Italian fabrics. • Turnover USD 24.6 million in FY 2021. • 8 stores in Egypt. • Homegrown wholesale and uniform business in Egypt. • Owner of group's specialized online platform for Apparel, Leather products and Accessories. • Turnover USD 8.5 million in FY 2021. CONCRETE Arafa HOLDING EST. 1989 Gibson LONDON TED BAKER LONDON Ö JEFF BANKS LONDON THE ORIGINAL Ben Sherman RACING GREEN BRITISH STYLE AL ARAFA FOR INVESTMENT & CONSULTANCIES | FY 2021 Investor Presentation Suit DIRECT By Appointment to Her Majesty The Queen Tailors Alexandre of England 1988 Ltd. Loodz ALEXANDRE OF ENGLAND SLIDE 4#5Egypt's Unique Value Proposition Proximity to End Markets ■ " Egypt's location allows a competitive lead time on shipments and relatively low transportation costs. Close proximity to end markets enables Arafa Holding to respond quickly to seasonal shifts in demand and changes in consumer tastes. بالمهورية مصر العربية EGYPT ADVANTAGE Egypt offers advantages including proximity & low-cost to end markets and a basket of beneficial trade agreements Low-Cost Environment Egypt offers a sizeable young labor force, with over 50% of the population under the age of 30, at a relatively low cost compared to other emerging markets that operate in the labor-intensive Apparel & Tailoring segment. Costs of inputs for infrastructure and utilities are among the least expensive in the region. Preferential Trade Agreements ■ A number of preferential trade agreements - including agreements with the United States, the European Union, COMESA, Turkey and the GCC countries position Egypt as a prominent hub for export- oriented companies. Gov't Incentive Programs Egypt's free zones offer tax incentives to export- oriented manufacturers; Arafa's manufacturing facilities in free zone areas allow it to benefit from these incentives (Duty free zones). ■ The government maintains the long-encouraged export activity through offering incentives programs in support of export-oriented manufacturers. Arafa HOLDING AL ARAFA FOR INVESTMENT & CONSULTANCIES | FY 2021 Investor Presentation SLIDE 5#6Backed by World-Class Manufacturing and Exporting Capabilities Arafa Holding industrial facilities serve a variety of markets from Casual Wear segment to Luxury Wear segment through large capacities of well diversified product range: MANUFACTURING Wool Fabrics Jackets Formal Trousers Casual Pants Shirts • 2.3 Million Meters • 1.4 Million • 1.1 Million • 2.4 Million . • 900,000 GoldenTex SG C A ETC A SCG SINCE 1982 SWISS GARMENTS CO. EGYPT TAILORING CO. Swiss Company for Cotton Garments Arafa HOLDING AL ARAFA FOR INVESTMENT & CONSULTANCIES | FY 2021 Investor Presentation A CRISTALL FOR MAKING SHIRTS Camegit SLIDE 6#7Overview on Egypt's Ready-Made Garments (RMG) Industry ■ RMG sector is the key player within the textile & apparel sector with the majority privately owned. ■ Main export regions include USA & Europe contributing 59.2% & 17.8% respectively of total RMG exports during March 2022. ■ Swiss Garment Company (SGC) -Arafa Holding subsidiary for exporting formal menswear largest Egyptian exporters of ready-made garments to USA & Europe. - - is one of the RMG Sector ■ Sector benefits from government support due to being a labor-intensive sector and a source of foreign currency inflows. RMG Sector Contribution (USD in millions) 2016 RMG Exports Growth Rate % 2017 2018 2019 2020 2021 March 2022* 640.4 47.4% 1,274 1,459 1,604 1,697 1,455 2,080 -8.08% 14.52% 9.94% 5.36% -14.26% 42.76% Regional Breakdown of RMG as of March 2022 Rest of the world 11% Arabs 12% Europe 18% USA 59% *March 2022 growth rate is calculated in relation to March 2021 Source: Apparel Export Council of Egypt Report dated March 2022 Arafa HOLDING AL ARAFA FOR INVESTMENT & CONSULTANCIES | FY 2021 Investor Presentation SLIDE 7#8Group Financials Overview FINANCIALS Income Statement Balance Sheet FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021 (USD 000's) (USD 000's) Net Revenues 224,997 116,765 183,872 Cash & Marketable Securities 85,404 76,644 64,568 % change (4.9%) (48.1%) (57.5%) Net Receivables 9,989 14,621 (6,459) Gross Profit 79,999 31,393 74,697 Inventory 108,344 98,589 98,901 Gross Profit Margin 35.6% 26.9% 40.6% Fixed Assets 54,307 48,886 48,099 EBITDA 12,968 5,989 11,298 Total Assets 411,987 385,683 373,873 % EBITDA Margin 5.8% 5.1% 6.1% Operating Profits (EBIT) 7,273 443 730 Total Liabilities 317,287 310,928 309,151 % EBIT Margin 3.2% 0.4% 0.4% Total Shareholder's Equity 94,699 74,755 64,722 Net Profit After Tax 15,205 (6,364) (5,346) % Net Profit Margin 6.8% -5.5% -2.9% Total Liabilities & Shareholder's Equity 411,987 385,683 361,470 FY 2021 Arafa HOLDING ■ Arafa Holding reported Consolidated Net Revenues of USD 183.9 million during FY 2021 compared to USD 224.9 million during FY 2019. The group local retail arm sales (Concrete & Euromed) hiked by 21.9% compared to 2019, whereas the UK retail arm and the formal wear manufacturing arm were negatively affected due to markets instability and forcing lockdown many times during the year, in addition to the global supply chain bottleneck which caused delay of raw materials. ■ Arafa Holding recorded Net Loss after tax of USD 5.3 million in FY 2021 including losses of USD 4.4 million, representing the impact of applying the accounting standards 47 and 49 on the consolidated financial statements, compared to Net Profit After-tax of USD 15.2 million in FY 2019, due to incurring lots of fixed costs during H1 2021 as a result of weakened export orders with the continuation of precautionary measures. AL ARAFA FOR INVESTMENT & CONSULTANCIES | FY 2021 Investor Presentation SLIDE 8#9Group Financials Overview Income Statement (USD 000's) Net Revenues Q4 2019 Q4 2020 Q4 2021 65,083 30,881 63,929 % change 4.4% (52.6%) 107% Gross Profit 23,480 5,454 36,063 Gross Profit Margin 36.1% 17.7% 56.4% EBITDA 6,337 (1,263) 13,644 EBITDA Margin 9.7% -4.1% 21.3% Operating Profit (EBIT) 4,249 (2,584) 8,718 EBIT Margin 6.5% -8.4% 13.6% Net Profit After Tax 4,356 (7,851) 6,974 Net Profit Margin 6.7% (25.4%) 10.9% FINANCIALS Q4 2021 Arafa ■ Arafa Holding recorded Consolidated Net Revenues of USD 63.9 million in Q4 2021, compared to USD 65.1 million in Q4 2019, which reflects the recovery of a large portion of pre-pandemic sales volumes despite the outbreak of the Omicron variant during Q4 2021 that pushed many countries to re-impose partial lockdown, which led to less exporting orders in the fear of imposing full lock down. ■ Arafa Holding recorded Net Profit after tax of USD 5.3 million in Q4 2021 marking an uptick of 21.4% compared to Net Profit after tax of USD 4.4 million in Q4 2019. Thanks to the exerted efforts during the Covid crisis, the group's results improved gradually to conclude net profits starting from Q3 2021 after re-opening the markets by H2 2021 and earning the benefits of restructuring the retail and manufacturing sectors, along with upping investments in e-commerce, reducing industrial expenses, and selling non- profitable assets. AL ARAFA FOR INVESTMENT & CONSULTANCIES | FY 2021 Investor Presentation SLIDE 9 HOLDING#10THANK YOU! For further inquiries please contact: Investor Relations [email protected] www.arafaholding.com#11Disclaimer LEGAL Al Arafa for Investment and Consultancies (the "Company" or "Arafa Holding") gives notice that: ■This document is the property of Al Arafa Holding and it may contain confidential information solely for use as an investor presentation. ■ It must be treated confidentially and should not be reproduced, redistributed or passed to any other person. ■ The information contained in this presentation may contain certain projections and forward-looking statements that reflect the Company's current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and which may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. Actual results may differ materially from those projected. ■ No statement contained in this presentation is to be relied upon as a statement or representation of fact. All parties must satisfy themselves as to the correctness of each of the statements contained in this presentation. Arafa Holding does not make or give, and neither its subsidiaries nor any of their directors or officers or persons in their employment or advisors has any authority to make or give, any representation or warranty whatsoever in relation to this presentation. ▪ This presentation may not be stored, copied, distributed, transmitted, retransmitted or reproduced, in whole or in part, in any form or medium without the permission of Arafa Holding. ■This document is provided for informational purposes only. It is not an offer to buy or sell, or a solicitation to buy or sell Al Arafa Holding's shares. Readers should take into account factors of uncertainty and risk when basing their investment decisions on information provided in this document. Arafa HOLDING AL ARAFA FOR INVESTMENT & CONSULTANCIES | FY 2021 Investor Presentation SLIDE 11