#1K2 L3 M4 ibnsinapharma Investor Presentation January 2018 *Egypt's fastest growing pharmaceutical distributor 2nd largest pharmaceutical distributor with a market share of c.19.2% Over 35k clients served annually through a network of 55 operational sites and a fleet of c.600 vehicles 5-year revenue CAGR of 31% compared to market CAGR of c.17% www.ibnsina-pharma.com#2Disclaimer IN THIS DOCUMENT CONTAINS STATEMENTS THAT ARE, OR MAY BE DEEMED TO BE, "FORWARD-LOOKING STATEMENTS” WHICH ARE NOT HISTORICAL FACTS BUT RATHER ARE STATEMENTS OF FUTURE EXPECTATIONS AND PROJECTIONS BASED ON MANAGEMENT'S VIEWS AND ASSUMPTIONS REGARDING TRENDS IN THE EGYPTIAN, MIDDLE EASTERN, EUROPEAN AND INTERNATIONAL FINANCIAL MARKETS AND REGIONAL ECONOMIES, THE POLITICAL CLIMATE IN WHICH THE COMPANY OPERATES AND OTHER FACTORS. THESE FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY, INCLUDING THE WORDS "ANTICIPATES,” “BELIEVES,” “ESTIMATES,” “EXPECTS,” “INTENDS,” “MAY" OR "SHOULD,” OR, IN EACH CASE, THE NEGATIVE OR OTHER VARIATIONS OR COMPARABLE TERMINOLOGY OR BY DISCUSSIONS OF STRATEGIES, PLANS, OBJECTIVES, GOALS, FUTURE EVENTS OR INTENTIONS. FORWARD-LOOKING STATEMENTS APPEAR IN A NUMBER OF PLACES THROUGHOUT THIS DOCUMENT AND INCLUDE STATEMENTS REGARDING MANAGEMENT'S INTENTIONS, BELIEFS OR CURRENT EXPECTATIONS CONCERNING, AMONG OTHER THINGS, THE COMPANY'S RESULTS OF OPERATIONS, FINANCIAL CONDITION, LIQUIDITY, PROSPECTUS, GROWTH, STRATEGIES AND DIVIDEND POLICY AND THE DEVELOPMENT OF INDUSTRIES IN WHICH THE COMPANY OPERATES. THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES, MANY OF WHICH MAY BE BEYOND THE COMPANY'S CONTROL. THEREFORE, IMPORTANT FACTORS MAY BE OF CONSEQUENCE TO THE COMPANY'S ACTUAL FUTURE RESULTS INSOFAR THAT THEY MAY DIFFER MATERIALLY FROM EXPECTATIONS. ALL FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS DOCUMENT. NEITHER THE COMPANY, THE SHAREHOLDERS NOR THE SELL-SIDE ADVISOR UNDERTAKE ANY OBLIGATION TO UPDATE, REVISE, OR STATE PUBLICLY ANY CHANGE IN FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS, OR OTHERWISE. ALTHOUGH THE COMPANY BELIEVES THAT THE PLANS, INTENTIONS, AND EXPECTATIONS REFLECTED IN, OR SUGGESTED BY, THE FORWARD-LOOKING STATEMENTS MADE IN THIS DOCUMENT ARE REASONABLE, THE COMPANY MAY NOT ULTIMATELY ACHIEVE SUCH PLANS, INTENTIONS, OR EXPECTATIONS. THESE CAUTIONARY STATEMENTS QUALIFY ALL FORWARD-LOOKING STATEMENTS ATTRIBUTABLE TO THE COMPANY OR ANY PERSON(S) ACTING ON ITS BEHALF. BY ACCEPTING RECEIPT OF THIS DOCUMENT, THE INVESTOR ACKNOWLEDGES ITS STRICT CONFIDENTIALITY. THIS DOCUMENT MAY NOT BE COPIED, REPRODUCED, OR DISTRIBUTED TO OTHERS AT ANY TIME WITHOUT PRIOR WRITTEN CONSENT OF THE COMPANY. ibnsinapharma 2#3Agenda 1 Introduction to the Company ⑪Key Investment Highlights III Appendix IV Contact Information ibnsinapharma IN 3#4EAR SOLID Introduction to the Company 8 (CO)#5II Introduction to the Company The Company in numbers 17+ years Experience in pharmaceutical distribution #1 Growing pharmaceutical distributor in Egypt 2nd Largest pharmaceutical distributor with c.19.2% market share' in 2017 Over 35k Retail pharmacies, hospitals & wholesalers served annually Over 325 Multinational & local pharmaceutical suppliers, covering over 91% of the market value 5,500+ Employees 55 Operational sites² including distribution hubs and warehouses c.600 Distribution vehicles EGP 9.1bn LTM Revenues as of Sep 2017³ EGP 341mn LTM EBITDA as of Sep 2017 31% Revenue CAGR from 2012-2016 46% Net Profit CAGR from 2012-2016 (1) Market share covers pharmacy retail sales which represent the majority of Egypt's pharmaceuticals market; (2) expected by end of 2017; (3) Pro forma ibnsinapharma Source: IMS Health, Company Management IN 5#6II Introduction to the Company Ibnsina Pharma, Egypt's fastest growing pharmaceutical distributor... Company Overview Established in 2001, Ibnsina Pharma "ISP" is the fastest growing, and 2nd largest, pharmaceutical distributor in Egypt with a market share of c.19.2% Nationwide distribution network with 55 operational sites including distribution hubs and central warehouses, supported by a fleet of c.600 vehicles serving over 35k retail pharmacies, hospitals & wholesalers across Egypt Pioneer in introducing value added services for its customers including telesales, same-day-delivery and creative commercial activities, in addition to third party logistics services for its suppliers including; warehousing, transportation, data analytics, packaging and relabeling, and quarantine inspections Shareholding Structure 1 Key Suppliers Market Share¹ 2009 9.9% 19.2% ibnsinapharma 2017 EBRD 10.10% Abdel Gawad & Family 16.54% Key Financial Highlights Faisal Pfizer U NOVARTIS gsk Revenue & GPM | EGP mn, % EBITDA & Margin | EGP mn, % Islamic Bank 12.58% SERVIER SANOFI Others 7.22% AIKMA AstraZeneca QUALITY EIPICO GNP Mahgoub Group 16.25% Free Float 37.31% Quality Organization Standardization ISO 9001:2015 Abbott 6.8% 6.8% 7.7% 7.3% 7.2% 8.2% 9,134 3.7% 2.4% 2.7% 2.9% 2.9% 3.1% 7,372 PHARCO 5,439 CORPORATION 341 3,361 4,302 229 2,535 62 89 122 155 AMOUN EVAPHARMA Securing Your Health Certifications Environmental onal Internatio Organization ISO 14001:2015 Road Safety Health & Safety 2012 2013 2014 2015 2016 LTM³ Net Profit & Margin | EGP mn, % 2012 2013 2014 2015 2016 LTM ROE % 1.8% or Standa 1.4% 166 ndarization 49% OHSAS ISO 1.0% 1.1% 41% 0.9% 0.9% 102 36% 32% 36% 32% 57 35 38 23 18001:2007 39001 2012 2013 2014 2015 2016 (1) Post IPO & Capital Increase; (2) Pro forma gross revenue includes part of 3PL revenue that was stated as other income until 2016; (3) Oct 2016 - Sept 2017; (4) Normalized ibnsinapharma Source: IMS Health, Company Management LTM 2012 2013 2014 2015 2016 LTM CO 6#7II Introduction to the Company ...with a proven track record of success... Launch: 2001-2005 Established in 2001 under the name "Ibnsina Laborex" in partnership with Pinault Printemps Redoute ("PPR") through its subsidiary Eurapharma Operational Sites 7 12k Clients 2005 7.0% EGP 665mn Revenue Expansion: 2009-2012 Investment to add 15 distribution centers & 5 offices, and enhance efficiency through standardizing operational processes Operational Sites 27 30k Clients EGP 2.5bn Revenue 2012 10.5% 2015 の European Bank for Reconstruction and Development IBNLaborex SINA HARMA إبن سينا لابوركس فارما In partnership with PPR KERING cfao EURAPHARMA IBN Pharma ابن سينا فارما SINA RIGHT ON TIME Turnaround: 2006-2008 Management buy-out of PPR shares, name changed to “Ibnsina Pharma"; optimized cost structure & turned the Company profitable Operational Sites ibnsinapharma Growth: 2013-Present Capture market share through implementing value-base differentiation strategy & launch of new revenue streams focusing on enhancing margins 55 +35k EGP 9.1bn Operational Sites Clients LTM Revenue 2017 19.2% Market Share 7 16k Clients EGP 1.0bn Revenue ibnsinapharma Source: IMS Health; Company Management 2008 8.8% IN 7#8II Introduction to the Company …..leveraging a nationwide distribution network to access over 35k clients Distribution Network Revenue by Geography 5 Platforms (Inbound Logistics) 42 Distribution Centers (DC) 11.1% 1 Tender DC 3 3PL1 Warehouses 2 Reverse Logistics Warehouses 2 Personal Care DC MATRUH ° 10 Person per square kilometer 100 1,000 DAMIETTA KAFR EL-SHEIKH e DAKAHLIA ALEXANDRIA BEHERIA SHARA ASHARA PORT SAID ISMAILI NORTH SINAI 44.2% 18.9% 9M 2017 Revenue by Business Line 3.0% 0.3% 3.0% 9.0% 9M 2017 14.0% 71.0% OALYUBIA 25.7% CAIRO 00 SUEZ I Cairo & Canal Delta Pharmacies Wholesale Tenders FAIYUM SOUTH SINAI Upper Egypt Alexandria Hospitals Personal Care 3PL & Other GIZA BENI SUEF MINYA ASYUT SOHAG NEW VALLEY QENA LUXOR 5,000 and above ASWAN 0 26 259 2,590 12,950 and above Person per square mile ibnsinapharma (1) Third Party Logistics Source: Company Management Number of Clients 35,612 32,052 30,425 28,231 28,524 RED SEA 30 Number of Operational Sites 42 22 38 49 55 54 2013 2014 2015 2016 9M17 2013 2014 2015 2016 2017e Strictly Private & Confidential 80#9Key Investment Highlights#10III Key Investment Highlights Key Investment Highlights 1 Solid Demographic Profile IN A rapidly growing population coupled with a growing middle class and increasing healthcare awareness, positions Egypt as one of the most attractive consumer markets in the region 2 Attractive Industry 3 Dynamics Strong Market Share A highly defensive sector with significant room for continued growth driven by recent regulatory reforms, increasing incidence of chronic disease, and a surge in generic uptake Fastest growing & 2nd largest player in the market with nationwide geographical coverage and access to over 35k retail pharmacies, hospitals & wholesalers 5 6 Efficient Business Model Operational efficiency driven by best in class supply chain processes Resilient Supply Chain Multi-site operations with highly diversified supplier/client base, covering over 80% of the market SKUs, mitigating any supply chain disruptions and ensuring business continuity Robust Financial Performance Significant top and bottom line growth on the back of recent regulatory reforms and enhanced operational efficiency 7 New Revenue Streams 8 Expansion into higher margin diversified revenue streams to further enhance profitability Experienced Management Team Highly experienced management team that has delivered strong results during challenging times, coupled with strong corporate governance practices backed by notable institutional shareholders ibnsinapharma Source: Company Management & IMS Health Strictly Private & Confidential 10#11III Key Investment Highlights 1 Solid Demographic Profile Egypt's demographic profile makes it the region's largest consumer market Population I mn Population (mn) • Growth Rate Age Pyramid Urban Population Disposable Income | EGP bn Egypt has seen a growth in health awareness on the back of a growing middle class and rising GDP per capita and decreased government spending 60+ yrs 8% 1.8% 1.9% 1.9% 1.9% 1.7% 1.7% 43% 45-59 yrs 12% 57% 45% 102 25-44 yrs 29% 55% 101 99 15-24 yrs 17% 4,966 4,445 3,914 3,381 2,931 2,380 97 4-14 yrs 20% 95 93 0-4 yrs 13% 2025f 2015 2016 2017e 2018e 2019e 2020e 2021e An increasingly aging, more urbanized demographic profile drives an increase in health awareness 2016 2017e 2018e 2019e 2020e 2021e 2.1% Population CAGR I 2015-2020 1.9% 1.7% 1.5% 1.5% 1.4% 1.4% 1.1% 1.0% ibnsinapharma Source: BMI, WHO Population Age 65+ as % of Total Population | 2020 8.1% 5.8% 5.2% 3.7% 3.5% 3.5% 3.2% 2.4% ecc 0.8% 4.0% 3.8% Urbanization CAGR I 2015-2020 2.4% 2.2% 2.0% 1.9% 1.9% 0.7% 0.2% Strictly Private & Confidential 11#12III Key Investment Highlights 2 Attractive Industry Dynamics A highly defensive sector with significant room for continued growth Health Expenditure CAGR 2013-2017 Pharmaceutical Sales | EGP bn IN Total Number of Pharmacies | '000 Egypt's healthcare market is the fastest growing in the region driven by significant growth in the pharmaceuticals market Given the under-penetration of healthcare insurance, pharma sales are mainly driven by out-of-pocket expenditure as consumers find self- medication to be the cheapest form of treatment 60 60 56 57 56 56 12% CAGR 17% 50 10% 9% 41 8% 2012 2013 2014 8% 32 28 5% 5% 25 2015 Total Pharmacists | 2016 '000 2016 2017e 5% 22 19 212 3% 23 10 3 12 7 1 Pharma Market Share Public Sector 3% 2011 2012 2013 2014 2015 2016 2017 Market Segmentation I Market Share 1H2017 SHAIN Growth Drivers Novartis 8% ISP 19% Higher Priced Drug Replacements GSK 6% Sanofi 5% Pharco 5% 2017 H1 Others 56% Manu. Amoun 5% Others 32% Dist.1 Other Retail Ezaby 4% Seif 2% Roushdy 2% Misr 1% Pricing Adjustment Waves Increasing Generic Uptake UCP 33% 92% Increase of Chronic Diseases Eipico 4% Eva 4% Pfizer 3% Hikma 2% Global Napi 2% POS 16% Multinational 48% Private Sector 49% The distribution space is the most consolidated segment, with the 3 largest players processing 68% of the market sales Industry Regulated Margins Ageing & Growing Population New Products - New Markets Low Price Regime Market Price Evolution Regulated Price 25 20% 8% Distributors operate on a fixed margin set out by the Ministry of Health (MOH), and is marked down from the regulated price of the SKU 18 37% 15 13 14 9% 10% 20% 6% Which significantly mitigates any risks related to bargaining power of suppliers/clients 2013 2014 Average price per unit 2015 2016 2017 2017 2016 Growth rate % Distributors Retailers ibnsinapharma (1): Data for full year 2017 Source: IMS Health, BMI, WHO Increase in price of medicine that cost less than EGP 30 by 20% due to increase in production costs Increase in distribution margin from 7% to 8.1% for non-essential locally manufactured products Retail price increase of 30-50% for over 3k SKUs Price increase of c.50% for MoH's tenders Strictly Private & Confidential 12#13III Key Investment Highlights 3 Strong Market Share Exceptional profitable growth on the back of a solid value-based differentiation strategy ISP is the fastest growing distributor in the Egyptian market Sales CAGR 2012-2016 33% ucp 31% 32.7% 29% 25% 21% 17% Market Growth: 17% 17% 16% 13% 9% ibnsinapharma pharmaoverseas ucp ISP has been constantly outperforming the market... Egypt Pharma Market Growth 12% Others ISP Sales1 Growth y-o-y 42% 42% Others 43.7% 32.9% 2011 9.9% ibnsinapharma 19.2% 2017 13.6% Others 31.8% 16.1% pharmaoverseas The distribution market has been experiencing a trend of consolidation towards larger market players, as both manufacturers and pharmacies prefer to deal with fewer number of distributors with larger capabilities and more value-add ...while increasing its profitability | Net Profit Margin % Over 100% increase 31% 30% 1.4% 26% 26% 26% 23% 1.1% 18% 1.1% 14% 13% 0.9% 0.9% 10% 2012 2013 2014 2015 2016 9M17 2.1% 2012 2013 2014 2015 2016 9M17 (1) Based on ISP's pharmacies sales value as per IMS Health data which is based on retail selling price Source: IMS Health, Company Management ibnsinapharma 13#14III Key Investment Highlights 4 Efficient Business Model Operational efficiency driven by best-in-class supply chain processes Sourcing Commercial team sources orders from 325+ suppliers while focusing on maintaining market competitiveness and managing inventory levels Monthly demand forecasting for over 9.5K SKUs *Expired inventory risk fully borne by suppliers Ordering Suppliers G Delivery to platforms Distribution Value Chain Overview Processing Over 200 platform operations employees handle and dispatch inbound deliveries to distribution centers c.860 telesales agents communicate daily with over 35k clients, processing over 500k orders monthly Distribution *Dynamic route optimization to enhance delivery performance A fleet of c.600 vehicles handles order delivery from distribution centers to over 35k clients nationwide 1.5k warehouse staff perform order picking & packaging Over 4.5mn drops completed per annum Information Flow Demand Planning ibnsinapharma Order Preparation Product Flow Highly efficient supply chain utilizing advanced technology ibnsinapharma الرقاقات Mobile Racks Enhances capacity management and increases shelf space by approximately 2.5x Order Picking Error proofing tool, decreases order fix time and speeds up shelf replenishment process Fleet Tracking Sets geo-fence to support route optimization and ensure efficient product delivery In-progress Enhancements Transportation Management System Enhances inbound shipments, collects data for route optimization, facilitates sales, collections and returns Data Processing Delivery to clients Field Force Mobility Solutions Ability to manage schedule, track visits, create orders, process returns, and receive customer feedback Clients PHARMACY Enterprise Asset Management Ability to manage procurement & warehousing processes, in addition to tracking maintenance for equipment & vehicles Call Center Management Manages call scheduling and handling, utilizing a newly improved sales interface B2B Module Customer order management tool includes features such as placing & tracking orders with further integration into an online sales platform Work Flow Module Enhances internal communication and optimizes internal approval cycles ibnsinapharma Source: Company Management 14#15III Key Investment Highlights 5 Resilient Supply Chain Highly diversified supplier/client base significantly mitigating supply chain risks Geographic Concentration¹ Alexandria 11% Cairo & Canal 30% Alexandria 11% Cairo & Canal 44% Upper Egypt 19% % of Sales Upper Egypt 25% c.35k Clients Supplier Concentration¹ Sanofi Aventis 7% Amoun 5% Novartis 4% Pfizer 3% Mina Pharm % of Sales 3% SKUs Coverage¹ % of Market Sales Distributed by ISP 91% Delta 26% Delta 34% Low client concentration risk due to small number of pharmacy chains in Egypt Cairo & Canal region has the highest sales contribution due to higher purchasing power NOVARTIS gsk PHARMACEUTICALS Key Suppliers SANOFI Pfizer AstraZeneca PHARCO SERVIER PHARMACEUTICALS Others 79% Not Distributed by ISP 9% IN Minimal supplier concentration with the top five supplier representing less than 25% of sales Product portfolio covers 85% of the SKUs available in the market, collectively representing 91% of the market sales value SKU Concentration | # of SKUs per Revenue Decile Abbott Roche 6,596 ISP distributes over 9.5k SKUs with 20% of revenue generated from over 60 products which is in line with the market's SKUs distribution SEDICO ש سيديكو MINAPHARM AIKMA PHARMACEUTICALS QUALITY MUP Medical Union Pharmaceuticals GNP EIPICO AMOUN Marcyrl ibnsinapharma (1) As of Sep 2017 Source: IMS Health; Company Management 1,473 615 map 18 44 78 118 162 241 366 EVAPHARMA Bull-Apax Pharma Securing Your Health 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 15#16III Key Investment Highlights 6 Robust Financial Performance Robust financial performance with double digit top line and bottom line growth Revenue | EGP mn CAGR 31% 5,439 4,302 3,361 2,535 7,372 9,134 Gross Profit | EGP mn, % CAGR 35% 8.2% 7.7% 7.2% 7.3% 6.8% 6.8% 747 565 394 307 228 172 EBITDA & Margin | EGP mn, % CAGR 39% IN 3.7% 3.1% 2.9% 2.9% 2.7% 341 2.4% 228 155 122 89 62 2012 2013 2014 2015 2016 LTM' 2012 2013 2014 2015 2016 LTM 2012 2013 2014 2015 2016 LTM Net Profit & Margin | EGP mn, % CAGR 47% 1.8% 166 1.4% 1.1% 1.0% 102 0.9% 0.9% 57 35 38 23 ROE % 41% 36% 36% 32% 32% 49% Return on Fixed Assets | % 48% 42% 42% 37% 63% 96% 2012 2013 2014 2015 2016 LTM 2012 2013 2014 2015 2016 LTM 2012 2013 2014 2015 2016 LTM ibnsinapharma (1) Oct 2016- Sep 2017; (2) Normalized figure Source: Company Management 16#17III Key Investment Highlights 6 Robust Financial Performance Effective working capital management has been a key success factor to ISP's performance DOH 2014 2015 2016 September 20161 September 20171 Inventory 35 Days Receivables Payables CCC 85 Days 32 Days 85 Days 29 Days 83 Days 30 Days 87 Days 96 Days 114 Days 112 Days 111 Days +9 Days +5 Days Supplier contracts have the option of credit terms ranging from 120-150days or a cash discount of 5-6% Net Debt to Equity Ratio 215% 65% 22% 2014 2015 2016 179% 71% -2 Days Interest Coverage Ratio² 3.3x 3.5x 3.1x 2.8x 2.5x 9M16 9M17 2014 Net Debt | EGP mn 237 163 68 522 2015 2016 9M16 Financial Lease Expense | EGP mn 65 66 58 279 2014 2015 2016 9M16 9M17 ibnsinapharma +21 Days 32 Days 83 Days 106 Days +9 Days Facilities Breakdown | % of Authorized Limit Arab Bank Others United Bank CIB 4% 5% 5% 19% Bank Audi 6% 9M17 QNB 6% EGP 1.6bn as of Sep-2017 13% Ahli United Bank 6% Barclays 27 28 2014 2015 2016 9M16 9M17 (1) Represents working capital over the LTM to date; (2) Calculated as EBITDA over interest expense Source: Company Management 8% 9% 8% 9% HSBC Mashreq Credit Agricole National Bank Strictly Private & Confidential 17#18III Key Investment Highlights 7 New Revenue Streams Expansion into high-margin diversified revenue streams to further enhance profitability Warehousing Transportation Owned Portfolio Warehousing services for suppliers which allows them to save significant CAPEX. ISP invested in a mega- warehouse in 2017, adding a capacity of 11k pallets with plan to start operation by Q1 2018. The warehousing business is a key area for growth going forward. Revenue | EGP '000 8,958 7,716 6,249 4,641 3,657 Capitalizing on a growing need for specialized transportation services, ISP invested in providing high quality services to pharma manufacturers and notable FMCG brands; such as Unilever and P&G. This business complements the warehousing activity. Revenue | EGP '000 4,133 1,691 85 3,511 ISP is planning to procure OTC pharmaceutical files to be toll manufactured and distributed through its vast network and leverage on placement capabilities. IN PROGRESS 2012 2013 2014 2015 2016 9M17 2012 2013 2014 2015 2016 9M17 Overprinting, Relabeling, and Repacking Exports Z Other ISP offers overprinting and re-packaging of pharmaceutical products to comply with national regulations and to support manufacturers for promotional needs. This business complements the warehousing activity. Revenue | EGP '000 Given Egypt's low drug price regime and current FX rates, the export business is a significant prospect. Currently ISP is in the process of signing with 8 manufacturers and 5 potential importers. Revenue | EGP '000 1,886 Includes fleet advertising, market micro-research for manufacturers, bulk SMS, and various service-oriented business lines. Revenue | EGP '000 4,642 3,891 3,757 2,599 724 3,005 2,277 2,031 132 293 2012 2013 2014 2015 2016 9M17 2012 2013 2014 2015 2016 9M17 2012 2013 2014 2015 2016 9M17 ibnsinapharma Source: Company Management 18#19III Key Investment Highlights 8 Experienced Management Team Highly experienced management team with strong track record Mahmoud Abdel Gawad Co-Founder & Co-CEO 28 years of pharmaceutical industry experience with focus on commercial operations, IT, quality assurance and administration. Prior to Ibnsina, Mahmoud held several senior-executive positions at various pharmaceutical companies in Egypt and abroad. B.S in Pharmacy from Cairo University and a MBA from the Arab Academy for Science and Technology. Omar Abdel Gawad Co-Founder & Co-CEO *17 years of pharmaceutical industry experience with focus on finance, sales, marketing and human resources. Prior to becoming Co-CEO, Omar has held various positions including marketing manager, sales manager and general manager. B.A in Economics from the American University in Cairo and a MBA from the Arab Academy for Science and Technology. Momen Gomaa CFO 19 years of corporate finance and treasury experience with focus on financial management, treasury, accounting, budgeting and credit. Prior to Ibnsina, Momen spent 4 years as an accountant at the Egyptian Pharmacists Company (EPC), a local pharma distributor. B.A in Commerce from Ain Shams University. Rabeea Marzouk Sales Director 23 years of pharmaceutical industry experience with focus on pharmaceutical sales. Rabeea has played a key role in increasing Ibnsina's market share and surpassing market growth rates over the past 6 years. B.S in Veterinary Medicine from Alexandria University and a MBA from the Arab Academy for Science and Technology. Mohamed Adel Operations Director 17 years of pharmaceutical industry experience with focus on operations management. Mohamed is responsible for management of all warehouses, purchasing, technical development and third-party logistics activities. B.A in Commerce from Ain Shams University and a MBA from the Arab Academy for Science and Technology. Ibrahim Emam Commercial Director 17 years of pharmaceutical industry experience with focus on commercial operations and business development. Ibrahim leads the development of strategic supplier partnerships as well as import and export activities. *B.A in Commerce from Ain Shams University and a MBA from the Arab Academy for Science and Technology. ibnsinapharma Source: Company Management IN 19#20IN III Key Investment Highlights 8 Experienced Management Team Seasoned board of directors with diverse experience across various industries Mohsen Mahgoub Executive Chairman *Over 40 years of experience across various industries including healthcare, FMCG, and financial services with focus on all investment activities pursued by the Company Mohsen was the co-founder of several successful businesses in Egypt including; Chipsy (later acquired by PepsiCo), Al Shorouk Hospital (later acquired by Abraaj Group), Al-Masreyin Dairy (later acquired by Citadel Capital), and Incolease - Egypt's largest leasing company. Moshen is the Chairman of the Arab International Investment Group, currently serves on the boards of Faisal Islamic Bank of Egypt and Dar El Eyoun Hospital, and has served on the boards of SAIB Bank and Incolease. Mahmoud Abdel Gawad Executive Director *28 years of pharmaceutical industry experience with focus on commercial operations, IT, quality assurance and administration. *Prior to Ibnsina, Mahmoud has held several senior-executive positions at various pharmaceutical companies in Egypt and abroad. B.S in Pharmacy from Cairo University and a MBA from the Arab Academy for Science and Technology. Omar Abdel Gawad Executive Director *17 years of pharmaceutical industry experience with focus on finance, sales, marketing and human resources. Prior to becoming Co-CEO, Omar has held various positions including marketing manager, sales manager and general manager. *B.A in Economics from the American University in Cairo and a MBA from the Arab Academy for Science and Technology. Lindsay Forbes Independent Director 41 years of experience in finance and banking across several countries. Lindsey has held several positions with EBRD, until 2017, where he managed multiple equity investments in excess of EUR 2.5bn. Prior joining EBRD in 1994, he spent 13 years with the British Linen Bank. *B.A in Jurisprudence from Oxford University and a MBA from INSEAD. Mohamed Mahgoub Non-Executive Director 11 years of experience across multiple industries including financial services, consulting and consumer products. Mohamed is the founder of Sky Supplies; serves on the boards of Dar El Khebrah Consultancy and Mediterranean Securities Brokerage. B.A in Marketing and International Business from Middlesex University. ibnsinapharma Source: Company Management 20 20#21III Key Investment Highlights 8 Experienced Management Team Seasoned board of directors with diverse experience across various industries Ahmed Abdel Gawad Non-Executive Director 28 years of pharmaceutical industry experience with focus on pharmaceutical sales. Ahmed has held various sales positions at multinational companies including Glaxo Smith Kline and Bristol Myers Squib. B.A in Business Administration from Ain Shams University. IN Hany Badr Independent Director 42 years of experience in finance and banking. His experience included serving as Head of Treasury at Faisal Islamic Bank, until 2016, and Assistant General Manager at Delta Bank. B.A in Economics from Cairo University. Abdel Aziz Ali Non-Executive Director *38 years of experience across various industries including healthcare, agriculture, FMCG, and financial services, where he co-founded various successful businesses including Chipsy, Al Shorouk Hospital, and Al-Masreyin Dairy. Currently serves as the Chairman of the Egyptian Agricultural Production Company. B.A in Commerce from Cairo University. Abdel Rehim Omar Non-Executive Director *Over 35 years of experience in finance and banking. Abdel Rehim has spent his entire finance career at Faisal Islamic Bank where he currently serves as General Manager. He also heads the bank's internal audit function. B.A in Finance and Commerce from Ain Shams University. Mohamed Zaki Non-Executive Director ibnsinapharma Over 10 years of experience in consulting and social services. Mohamed is currently a research analyst at the United Nations Migration Agency in Egypt. Prior to that, he was a consultant at PricewaterhouseCoopers. B.A in Business Administration from the American University in Cairo, M.S and PhD in Social Anthropology from London School of Economics (LSE). Source: Company Management 21 21#22III Key Investment Highlights 8 Experienced Management Team Organizational Structure Board Committees Audit Committee Business Development Committee Remuneration Committee Internal Audit Manager Osama Bakr 8 ibnsinapharma Co-CEO Mahmoud Abdel Gawad Executive Chairman Mohsen Mahgoub Board of Directors Co-CEO Omar Abdel Gawad Management Committees Executive Committee Business Review Committee Investment Committee IT Director Amro Khorshid Commercial Director Ibrahim Emam Operations Director Mohamed Adel CFO Mo'men Gomaa Sales Director Rabeea Marzouk Quality Manager Mohamed Hosny 8 ☑☑ 91 51 Administration Manager Mohamed Hasan Source: Company Management 378 2,257 381 2,153 IN HR Director Ahmed Refaat Marketing Manager Mostafa Salama 18 206 22 22#23Appendix#24IV Appendix A significantly complex industry with high barriers to entry Inventory Management Highly complex inventory management to maintain healthy levels without over stocking or running short in a large number of branches A Variety of SKUS 9k unique drug therapies with a variety of handling requirements including fragile containers, liquids, and refrigerated products Working Capital Management Dealing with a large client base, with significant geographic disbursement, emphasizes the complexity of credit control management. Pharmaceutical distributors must aggregate client credit history to be able to minimize bad debts, which requires significant on the ground experience Ease of Operations Both manufacturers and pharmacies prefer to deal with few distributors which in return significantly reduces order processing and management costs; large distributors then redistribute to the smaller players ibnsinapharma Barriers to Entry Operational Complexity High Variability of Demand Short-notice, short-turn deliveries occur frequently and require rapid response from distributers ibnsinapharma A number of factors protect Ibnsina Pharma from new market entrants Economies of Scale A human resource based business accustomed with a large workforce leads to significant fixed costs. Additionally, the aggregation of delivery volume reduces delivery costs therefore the total cost per shop does not increase significantly with volume. Source: IMS, Bloomberg, Company Management Labor Intensive Business To become a nationwide distributor, new entrants need to recruit, train, and manage a workforce of over 5,000 personnel Time to Build Scalable Operations 8+ Years Nationwide distributors require a minimum of 50 sites and over 500 vehicles. New entrants will not be able to manage opening more than 6 branches a year Difficulty Contracting with Suppliers 325+ suppliers with rigorous contracting requirements, including quality audits, disables new entrants from obtaining credit lines Investment EGP 1.5bn+ The business requires a significant amount of infrastructure to be able to cater to geographically dispersed clientele. Geographically Dispersed Client Base Over 60k outlets and locations are geographically disbursed across the Country Low Margin Business 1.6% Both developed and emerging market peers have an average net profit margin of 1.6%; reducing the attractiveness of venturing into this market space A Crowded Market Space A large number of players targeting different segments of the market (in terms of client quality and demand size) with the three largest players controlling 68% of the market Strictly Private & Confidential 24#25IV Appendix Income Statement IN In EGP Gross Revenue Net Revenue Cost of Revenue 2014 2015 2016 9M16 9M17 4,301,431,071 4,197,291,157 (3,889,571,576) 5,437,428,208 5,326,037,025 (4,931,515,024) 7,368,955,861 7,202,471,767 (6,636,864,499) 5,110,598,478 5,004,538,429 (4,584,670,320) 6,872,056,337 6,715,209,995 (6,117,421,392) Gross Profit 307,719,581 394,522,001 Total General & Administrative (43,965,382) (54,746,924) 565,607,268 (86,392,050) 419,868,109 597,788,603 (58,157,217) (74,191,616) Recurring & Operational General & Administrative (37,275,415) (49,634,827) (86,305,323) (55,518,802) Non-operational & Non-recurring Balances included in General & Administrative (6,689,967) (5,112,097) (86,727) (2,638,415) Selling & Marketing (144,135,752) (188,349,279) (246,444,706) (175,266,069) (74,064,392) (127,224) (235,780,087) Provisions on Doubtful Receivables (5,776,118) (6,475,000) (13,338,388) (9,880,388) (2,065,497) Fixed Assets Depreciation Total Other Income Other Income Penalties on Returned Checks Transportation Income Capital Gain Impairment for Debtors & Other Debit Balances Provisions for Claims FX Gain/Loss Non-recurring Expense EBIT Interest Expense Working Capital (10,328,474) (17,721,410) Amortization of Company Share in Finance Leased Assets (708,637) (1,071,088) (24,713,506) (2,076,237) (18,051,022) (1,516,474) 2,158,942 5,330,849 9,704,719 3,664,314 282,250 343,663 614,231 1,791,692 3,296,186 5,579,494 307,646 3,356,666 (20,717,219) (1,892,261) 9,932,542 897,206 9,035,336 85,000 1,691,000 3,510,994 7,119,374 1,376,700 2,750,360 693,691 1,989,503 (937,396) (200,000) (1,000,000) (600,000) (2,500,000) (90,086) 152,369 5,772,434 1,360,152 111,056,052 132,218,407 207,369,983 162,715,096 42,109 (4,111,579) 270,994,498 (48,879,962) (56,330,766) (74,272,012) (55,788,855) (83,916,773) (47,677,527) (53,533,569) (70,136,656) (52,826,089) (77,059,546) Medium Term Loans (1,202,435) (2,797,197) (4,135,355) (2,962,766) (6,857,227) Interest Income EBT 79,404 62,255,494 75,887,641 133,097,972 106,926,241 187,077,725 Deferred Tax (2,379,078) 3,034,600 4,792,756 Income Tax (Expense) Benefit (22,335,421) (21,563,921) Net Profit 37,540,995 57,358,320 (36,142,877) 101,747,851 In EGP Pro Forma Revenue¹ Cost of Revenue Gross Profit Gross Profit Margin (%) EBITDA EBITDA Margin (%) Net Profit Net Profit Margin 2014 2015 2016 4,301,516,071 (3,889,571,576) 307,804,5812 7.16% 122,408,988 2.85% 37,540,995 0.87% 5,439,119,208 (4,931,515,024) 396,213,1902 7.28% 155,050,271 2.85% 57,358,320 1.05% 7,372,466,698 (6,636,864,499) 569,118,3512 7.72% 228,609,428 3.10% 101,747,850 1.38% 182,559,516 3.57% 81,675,136 294,913,963 1.60% 4.29% 143,079,626 2.08% 4,102,477 (29,353,582) 81,675,136 9M 2016 5,110,598,478 (4,584,670,320) 419,868,109 8.22% (409,305) (43,588,794) 143,079,626 9M 2017 6,872,056,337 (6,117,421,392) 597,788,603 8.70% Source: Company Management (1) Pro forma gross revenue includes transportation revenue that was stated as other income until 2016; (2) Includes transportation revenue ibnsinapharma 25#26IV Appendix Balance Sheet IN In EGP Cash & Cash Equivalent Accounts & Notes Receivable Inventories Debtors & Other Debit Balances Supplier Advances Due from Related Parties Total Current Assets Fixed Assets, net Projects Under Construction Deferred Income Taxes Other Assets Total Long-term Assets Total Assets Working Capital Facilities Provisions for Claims Accounts & Notes Payable 2014 16,367,823 1,127,421,416 427,636,583 90,214,055 12,390,885 371,035 1,674,401,797 2015 32,865,900 1,379,306,986 456,212,484 2016 43,879,849 135,713,784 30,652,464 371,035 2,035,122,653 1,946,303,807 614,350,464 153,602,223 9M 16 31,521,034 1,889,197,939 581,707,431 9M17 193,453,075 2,201,244,241 103,579,719 887,203,020 125,275,465 59,951,169 371,635 2,818,459,147 104,681,801 371,635 2,606,377,758 371,635 3,512,229,237 118,665,534 152,479,284 171,326,679 164,923,147 182,849,658 25,864,360 13,787,246 47,639,424 44,875,278 148,744,781 3,876,370 6,910,970 11,703,726 2,839,753 5,307,263 6,666,637 151,246,017 1,825,647,814 206,501,191 178,484,763 2,213,607,416 237,336,466 3,055,795,613 1,389,369,884 156,685,745 600,000 1,678,860,117 Consumers Advance Payments Creditors & Other Credit Balances Land Purchase Creditors Accrued Short-term Loan Installments - CPLTD 4,756,561 43,206,215 401,324 25,211,634 6,002,767 44,251,022 Total Current Liabilities 1,669,446,809 Accrued Long-term Loan Installments Long-term Notes Payable Long-term Land Purchase Creditors Other Non-Current Liabilities Total Long-term Liabilities Total Liabilities Paid In Capital Share Premium Legal Reserve General Reserve Retained Earnings Total Shareholders' Equity Total Liabilities & Shareholders Equity Source: Company Management 1,001,324 24,865,804 1,912,266,779 21,978,215 23,880,110 212,013 14,768,161 35,861,139 29,631,705 20,312,360 141,439 46,070,338 1,715,517,147 50,770,739 1,963,037,518 70,865 11,250,992 61,265,922 2,744,024,494 20,000,000 24,000,000 148,000,000 24,000,000 6,334,368 8,211,418 12,000,000 24,000,000 148,000,000 11,079,334 168,000,000 12,000,000 147,079,334 3,079,334 83,796,299 110,130,667 1,825,647,814 70,358,477 250,569,895 2,213,607,413 128,691,785 108,619,069 206,059,588 311,771,119 3,055,795,613 291,698,403 389,138,922 2,833,680,699 3,863,949,791 68,643,994 3,100,000 2,519,984,745 6,324,384 71,491,865 101,324 13,112,260 2,682,758,572 227,302,941 2,833,680,699 524,342,643 600,000 1,870,677,051 95,331,077 401,324 13,112,260 2,504,464,354 16,225,398 21,151,105 141,439 37,517,941 2,541,982,295 11,294,421 8,831,693 351,720,553 3,863,949,790 415,193,901 2,066,773 2,882,952,257 2,594,770 89,039,520 70,574 25,793,648 3,417,711,443 31,531,742 9,279,330 70,865 16,217,489 57,099,426 3,474,810,869 11,013,447 6,491,069 ibnsinapharma 26#27harma ibnsinapharma Hotline 16017 2 www.ibnsina-pharma.com Contact Information * ibnsinapharma 3 Hotline 16017 www.ibnsina-pharma.com ibnsinapharm#28V Contact Information Contact Information ibnsinapharma Mohamed Mahmoud Shawky Investor Relations Manager Tel.: +2010 00852771 Email: [email protected] ibnsinapharma IN 28