#1GRITZNER Arafa HOLDING Investor Presentation Q1 2021#2Arafa Holding at a Glance ☐ ☐ OVERVIEW Publicly traded since 2006 with a 40% 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. +13,000 employees. Manufacturing home for luxury garments. In March 2012 inaugurated Camegit a 50:50 JV with "Ermenegildo Zegna" in Egypt. Homegrown luxury brand "CONCRETE" with +40 retail stores across Egypt. 15% of the UK suits market. Offering customers World-Class Quality and Global Competitiveness for more than 100 years Brands: CONCRETE EST. 1989 By Appointment to Her Majesty The Queen To bra Alecandrent England 1983 Lid Leedy ALEXANDRE OF ENGLAND TED BAKER LONDON Gibson LONDON THE ORIGINAL RACING GREEN Ben Sherman BRITISH STYLE Arafa HOLDING Clients: Massimo Dutti Brooks Brothers ZARA Ermenegildo Zegna GIORGIO ARMANI MANGO DEBENHAMS JASPER CONRAN M MEN'S WEARHOUSE W the of macy's GHERARDI s.r.l. PAL ZILERI PEERLESS CLOTHING INTERNATIONAL JOSEPH ITAAIII jcp BANANA REPUBLIC ITOCHU Walmart PERRY ELLIS AB BOUD JEFF BANKS LONDON VRG GAP VISTULA RETAIL GROUP AL ARAFA FOR INVESTMENT & CONSULTANCIES | Q1 2021 Investor Presentation 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 CONCRETE EST. 1989 Apparel & Tailoring Textiles ETC SG C SCG EGYPT TAILORING CO. SWISS GARMENTS CO. Swiss Company for Cotton Garments GoldenTex SINCE 1982 THE BAIRD A GROUP CRISTALL FOR MAKING SHIRTS Camegit Arafa AL ARAFA FOR INVESTMENT & CONSULTANCIES | Q1 2021 Investor Presentation HOLDING SLIDE 3#4Egypt'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 | Q1 2021 Investor Presentation SLIDE 4#5Strong Retail business with substantial market share Baird Group (UK & EU) • 235 stores in UK. • 15% market share of formal menswear in UK market. Managing Debenhams menswear concessions across UK. • Standalone shops & department stores. • Online business 17% of turnover. • Turnover USD 42 million in FY 2020. Concrete (Egypt) • 38 stores in Egypt. • Homegrown luxurious brand in Egypt inspired by Italian designs and materials. • 20% market share of regulated market. Offering Made to Measure service with exclusive Italian fabrics. • Turnover USD 19 million in FY 2020. RETAIL BUSINESS Euromed (Egypt) • 8 stores in Egypt. • Homegrown middle segment family stores & wholesale business in Egypt. • Owner of group's specialized online platform for Apparel, Leather products and Accessories. • Turnover USD 7.1 million in FY 2020. By Appointment to Her Majesty The Queen Tailors Alexandre of England 1988 Lid Leeds ALEXANDRE OF ENGLAND RACING GREEN BRITISH STYLE Suit DIRECT THE ORIGINAL Gibson LONDON Ben Sherman Arafa HOLDING AL ARAFA FOR INVESTMENT & CONSULTANCIES | Q1 2021 Investor Presentation CONCRETE EST. 1989 TED BAKER LONDON SLIDE 5#6Backed by World-Class Manufacturing and Exporting Capabilities MANUFACTURING 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: In "1 minute" Arafa Holding industrial facilities produce 14 Jackets 14 Formal Trousers 12 Casual Pants & 7 Shirts Wool Fabrics Jackets Formal Trousers Casual Pants Shirts Casual Shorts Vests • 2.2 Million Meters • 2.0 Million • 2.0 Million • 1.8 Million • 1.0 Million • 500,000 • 500,000 GoldenTex A SGC A ETC Λ SCG CRISTALL SINCE 1982 SWISS GARMENTS CO. EGYPT TAILORING CO. Swiss Company for Cotton Garments FOR MAKING SHIRTS Arafa HOLDING AL ARAFA FOR INVESTMENT & CONSULTANCIES | Q1 2021 Investor Presentation Camegit SLIDE 6#7Overview on Egypt's Ready-Made Garments (RMG) Industry RMG Sector ■ RMG sector is the key player within the textile & apparel sector with the majority privately owned. ■ Main export regions include USA & Europe contributing 54% & 23% respectively of total RMG exports during April 2021. ■ Swiss Garment Company (SGC) – a Arafa Holding subsidiary for producing and exporting formal menswear - is one of the largest Egyptian exporters of ready-made garments to USA & Europe. ■ Sector benefits from government support due to being a labor intensive sector and a source of foreign currency inflows. Great Growth Opportunity in Garments industry with Egypt currently contributing less than 1% of global garments industry RMG Sector Contribution (USD in millions) 2015 2016 2017 2018 2019 2020 RMG Exports 1,386 1,274 1,459 1,604 1,697 1,455 Growth Rate % -3.15% -8.08% 14.52% 9.94% 5.36% -14.26% Regional Breakdown of RMG Exports as of April 2021 April.2021 588* 35.8%* *April 2021 growth rate is calculated in relation to April 2020 Source: Apparel Export Council of Egypt Report dated April 2021 Arafa HOLDING Arabs 14% Rest of the world 9% USA EU 23% 54% AL ARAFA FOR INVESTMENT & CONSULTANCIES | Q1 2021 Investor Presentation SLIDE 7#8Group Financials Overview Income Statement Balance Sheet FY 2018 FY 2019 FY 2020 FY 2018 FY 2019 FY 2020 (USD 000's) (USD 000's) Net Revenues 236,554 224,997 116,765 Cash & Marketable Securities 64,010 85,404 76,644 % change (1.4%) (4.9%) (48.1%) Net Receivables 57,224 55,996 86,004 Gross Profit 85,899 79,999 31,393 Inventory 115,014 108,344 98,589 Gross Profit Margin 36.3% 35.6% 26.9% Fixed Assets 50,832 54,307 48,886 EBITDA 13,028 12,717 5,142 EBITDA Margin 5.5% 5.7% 4.4% Total Assets 396,337 411,987 385,683 Operating Profits (EBIT) 7,145 7,022 (0,403) Total Liabilities 296,042 317,287 310,928 EBIT Margin 3.0% 3.1% -0.3% Total Shareholder's Equity 100,295 94,699 74,755 Net Profit After Tax 3,085 15,205 Net Profit Margin 1.3% 6.8% (6,364) -5.5% Total Liabilities & Shareholder's Equity 396.337 411,987 385,683 FINANCIALS FY 2020 ■ Arafa Holding reported Consolidated Net Revenues of USD 116.8 million during FY 2020 compared to USD 225.0 million during FY 2019. Retail sales in Egypt & the UK were negatively affected by the closure of malls & Shops due to COVID19 Pandemic. The manufacturing Sector was affected by fall back in export sales due to lockdowns all over the world resulting in many clients cancelled their orders and some of them declared their bankruptcy. ■ Arafa Holding recorded Net Loss after tax of USD (6.4) million in FY 2020, with net Loss margin of (5.5%) compared to a net consolidated profit of USD 15.2 million and net profit margin of 6.8% during FY 2019. Arafa HOLDING AL ARAFA FOR INVESTMENT & CONSULTANCIES | Q1 2021 Investor Presentation SLIDE 8#9Group Financials Overview Q1 2021 Arafa HOLDING Income Statement (USD 000's) Net Revenues Q1 2020 Q1 2021 40,277 28,773 % change (18.2%) (28.6%) Gross Profit 12,338 8,260 Gross Profit Margin 30.6% 28.7% EBITDA 967 (6,928) EBITDA Margin 2.4% -24.1% Operating Profits (EBIT) (1,057) (8,635) EBIT Margin -2.6% -30.0% Net Profit After Tax (144) (9,903) Net Profit Margin -0.4% -34.4% FINANCIALS ■ Arafa Holding recorded Consolidated Net Revenues of USD 28.8 million in the first quarter of 2021, compared to USD 40.3 million in 2020. The group sales tumbled in Q1 2021 post the outbreak of Covid-19 second wave in November 2020, which caused a lockdown in the EU and the UK markets in January 2021, driving down the manufacturing segment sales represented by the Swiss Garments Company and Egypt Tailoring Company. Along with a decrease in the UK retail sales represented by the Baird Group. ■ Arafa Holding recorded Net Loss after Tax of USD 9.9 million during the first quarter of 2021, compared to USD 144.0 K in 2020, the group bottom line was strongly affected by the lockdown renewal across the European markets. Nevertheless, the group management has initiated a strict cost reduction strategy, which is expected to reflect on the second half of 2021. AL ARAFA FOR INVESTMENT & CONSULTANCIES | Q1 2021 Investor Presentation SLIDE 9#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 | Q1 2021 Investor Presentation SLIDE 11