#1ibnsinapharma Investor Presentation Q1 2018 Audited Results Egypt's fastest growing pharmaceutical distributor ■ 2nd largest pharmaceutical distributor with a market share of 19.5% ■ c.41k clients served annually through a network of 56 operational sites and a fleet of 625 vehicles ☐ 5-year revenue CAGR of 31% compared to market CAGR of 17%#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 ①Introduction to the Company ⑪ Key Investment Highlights III Appendix IV Contact Information ibnsinapharma IN 3#4II Introduction to the Company The Company in numbers 17+ years Experience in pharmaceutical distribution 2nd #1 Growing pharmaceutical distributor in Egypt Largest pharmaceutical distributor with c.19.5% market share' in Q1 2018 c.41k Retail pharmacies, hospitals & wholesalers served in Q1 2018 Over 350 Multinational & local pharmaceutical suppliers, covering over 93% of the market value 5,600+ Employees 56 625 Operational sites in Q1 2018, including distribution hubs and warehouses Distribution vehicles in Q1 2018 EGP 2.9bn Q1 2018 Gross Revenues EGP 92.3mn Q1 2018 EBITDA 31% Gross Revenue CAGR from 2012-2017 50% Net Profit CAGR from 2012-2017 ibnsinapharma (1) Market share covers pharmacy retail sales which represent the majority of Egypt's pharmaceuticals market Source: IMS Health, Company Management IN 4#5II 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.19.5% Nationwide distribution network with 56 operational sites including distribution hubs and central warehouses, supported by a fleet of c.600 vehicles serving c.41k 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 Market Share1 2009 9.9% 19.5% Q1 2018 ibnsinapharma Abdel Gawad & Family 16.5% Mahgoub Group 16.2% Quality Drganization Standardization ISO 9001:2015 ibnsinapharma Key Suppliers Key Financial Highlights EBRD 10.1% Faisal Islamic Bank 12.6% novo nordisk NOVARTIS Abbott gsk Gross Revenue² & GPM | EGP mn, % EBITDA & Margin | EGP mn, % 8.6% SERVIER ANOFI Pfizer 7.9% 4.2% 6.8% 6.8% 7.2% 7.3% 9,818 2.7% 2.9% 2.9% 3.2% 2.4% 406 AIKMA 7,372 PHARCO 5,439 EVAPHARMA AMOUN QUALITY CORPORATION 3,361 4,302 229 Securing Your Healthy 2,535 89 122 155 62 Senior Management & Others 44.5% EIPICO GNP AstraZeneca 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Environmental Organization onal Internation ISO Certifications Net Profit & Margin | EGP mn, % ROE % Road Safety Health & Safety for Standa 1.8% andarization 47% OHSAS ISO 1.4% 41% 36% 0.9% 1.0% 1.1% 170 32% 32% 33% 18001:2007 23 35 0.9% 38 102 57 14001:2015 39001 2012 2013 2014 2015 2016 2017 (1) Post IPO & Capital Increase; (2) Pro form a gross revenue includes part of 3PL revenue that was stated as other income until 2016 Source: IMS Health, Company Management 2012 2013 2014 2015 2016 2017 5#6II 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 IBNLaborex SINA HARMA إبن سينا لابوركس فارما In partnership with PPR KERING IBN Pharma ابن سينا فارما SINA RIGHT ON TIME 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 S European Bank for Reconstruction and Development ibnsinapharma Growth: 2013-Present Capture market share through implementing value-base differentiation strategy & launch of new revenue streams focusing on enhancing margins Operational Sites cfao EURAPHARMA Turnaround: 2006-2008 Management buy-out of PPR shares, name changed to “Ibnsina Pharma“; optimized cost structure & turned the Company profitable Operational Sites 56 c.41k Clients 2017 Revenue EGP 9.6bn Market Share 7 16k Clients EGP 1.0bn Revenue ibnsinapharma Source: IMS Health; Company Management 2008 8.8% 1Q18 19.5% IN 6#7II Introduction to the Company ...optimally expanding our distribution network to unlock value.... Distribution Network No. of Sites (Rev/Site - EGP mn) Revenue by Business Line 5 Platforms (Inbound Logistics) 42 Distribution Centers (DC) 144 174 37 51 3.4% 0.3% 2.4% 1 Tender DC 2 Reverse Logistics Warehouses 9.5% 55 4 3PL1 Warehouses 2 Personal Care DC 49 52 56 MATRUH CAPEX Breakdown 30.3% 29.3% Sites □Vehicles 0 10 0 26 Q1 2018 ALEXANDRIA ПАМЕТТА KAFR EL-SHEIKH DAKAHLIA SHARPA ALSARA MONDA BEHERIA OALYUBIA PORT SAID 2016 2017 1Q17 1Q18 ISMAILIA NORTH SINAI No. of Vehicles (Rev/Vehicle - EGP mn) CAIRO • SUEZ FAIYUM SOUTH SINAI BENI SUEF 34.2% MINYA ASYUT SOHAG NEW VALLEY QENA 6.2% LUXOR Technology Maintenance Person per square kilometer 100 259 1,000 2,590 Person per square mile 5,000 and above ASWAN 12,950 and above ibnsinapharma (1) Third Party Logistics Source: Company Management RED SEA 15.0% Q1 2018 69.4% Pharmacies Wholesale Tenders 13.2 16.0 3.2 4.6 Hospitals Personal Care 3PL & Other 601 590 625 546 2016 2017 1Q17 1Q18 No. of Employees (Rev/Emp - EGP 000s) Number of Clients 1,310 1,692 357 495 32.1 30.4 5.5K 5.7K 5.8K 28.5 5.3K 41.2 39.9 2016 2017 1Q17 1Q18 2014 2015 2016 2017 1Q18 7#8II Introduction to the Company ...and leveraging our network to serve our c.41k customers nationwide Alexandria 14.9% Cairo & Canal 30.6% Upper Egypt 26% Delta 28.5% 41,210 Total Customers ibnsinapharma 26.0% Clients by Geography (Q1 2018) 14.9% 30.6% 13.1% 11.4% 31.0% 28.5% 38,673 Retail Pharmacies 726 Wholesale Clients 44.5% 22.6% Cairo & Canal Delta Upper Egypt Alexandria 13.6% 23.8% 40.0% 1,811 Hospital Clients 8#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 41k retail pharmacies, hospitals & wholesalers 4 Efficient Business 5 6 Model Operational efficiency driven by best in class supply chain processes Resilient Supply Chain Robust Financial Performance 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 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 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 Population CAGR I 2015-2020 Population Age 65+ as % of Total Population 1 2020 Urbanization CAGR I 2015-2020 2.1% 1.9% 1.7% 1.5% 1.5% 1.4% 1.4% 1.1% 1.0% close CO ibnsinapharma Source: BMI, WHO 8.1% 5.8% 5.2% 3.7% 3.5% 3.5% 3.2% 2.4% ecc 0.8% 4.0% 3.8% 2.4% 2.2% 2.0% 1.9% 1.9% 0.7% 0.2% 11#12III Key Investment Highlights 2 Attractive Industry Dynamics (I/II) A highly defensive sector with significant room for continued growth Health Expenditure CAGR 2013-2017 Egypt's healthcare market is the fastest growing in the region driven by significant growth in the pharmaceuticals market Pharmaceutical Sales | EGP bn 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 12% 10% 9% 8% 8% 5% 5% 5% 22 22 19 3% Regulated Price 8% Industry Regulated Margins CAGR 17% Total Number of Pharmacies | '000 60 60 57 56 56 56 50 2012 2013 2014 2015 2016 2017e 41 32 28 25 Total Pharmacists | 2016 '000 212 2011 2012 2013 2014 2015 2016 2017 Market Price Evolution 25 37% 20% 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 15 14 13 9% 10% 20% 6% Which significantly mitigates any risks related to 2013 2014 2015 2016 2017 bargaining power of suppliers/clients Distributors Retailers ibnsinapharma Source: IMS Health, BMI, WHO Average price per unit Growth rate % 2017 2016 23 10 3 12 7 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 IN 12#13III Key Investment Highlights 2 Attractive Industry Dynamics (II/II) A highly defensive sector with significant room for continued growth Pharma Market Share Public Sector 3% Novartis 8% GSK 6% Market Segmentation | Market Share FY2017 ISP 19.2% Multinational 48% FY 2017 Others 56% Manu. GENERIC Private Sector 49% Sanofi 5% Pharco 5% Amoun 5% Others 31.8% Dist.1 UCP 32.9% Retail Other 92% Eipico 4% Eva 4% Pfizer 3% Hikma 2% Global Napi 2% POS 16.1% The distribution space is the most consolidated segment, with the 3 largest players processing 68% of the market sales Higher Priced Drug Pricing Adjustment Replacements Waves ibnsinapharma (1): Data for full year 2017 Source: IMS Health, BMI, WHO Growth Drivers IN Ezaby 4% Seif 2% Roushdy 2% Misr 1% Increasing Generic Uptake Increase of Chronic Diseases Ageing & Growing Population New Products - New Markets 13#14III 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 Others 43.7% 32.7% пер 32.9% ISP Market Share Progression 19.2% 19.5% 2011 9.9% ibnsinapharma 19.5% 16.9% Q1 2018 15.4% 13.9% 12.6% 13.6% pharmaoverseas Others 32.1% 10.5% 9.9% 15.5% 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 ISP has been constantly outperforming the market... Egypt Pharma Market Growth ISP Sales Growth y-o-y Largest spread since 2013 --- 50% 42% 37% 31% 30% 31% 26% 26% 26% 20% 18% 14% 13% 10% 2012 2013 2014 2015 2016 2017 1Q18 2011 2012 2013 2014 2015 2016 2017 1Q18 ...while increasing its profitability | Net Profit Margin % Over 100% increase 1.1% 0.9% 0.9% 1.1% 1.4% 1.8% 2012 2013 2014 2015 2016 2017 (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 14#15III Key Investment Highlights 4 ◆ Efficient Business Model Operational efficiency driven by best-in-class supply chain processes Sourcing Commercial team sources orders from 350+ 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 Suppliers Ordering 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 c.41k clients, processing over 450k orders monthly Distribution Dynamic route optimization to enhance delivery performance A fleet of 625 vehicles handles order delivery from distribution centers to c.41k clients nationwide *1.5k warehouse staff perform order picking & packaging Over 5.5mn 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 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 Work Flow Module 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 Enhances internal communication and optimizes internal approval cycles ibnsinapharma Source: Company Management delivery 15#16III Key Investment Highlights 5 Resilient Supply Chain Highly diversified supplier/client base significantly mitigating supply chain risks Diversified Geographical Presence NORTH SINAL Alexandria 14.9% Cairo & Canal 30.6% Minimal Supplier Concentration Sanofi Aventis 7% Amoun 5% Novartis 4% Expansive SKUs Coverage Distributed by ISP 93% MATHUH GIZA MINYA SURZ ASSUT SOHAG NEW VALLEY QENA LUXOR SOUTHSINA Minimal operational risk 56 sites with 56 lifetime Upper Egypt 26.0% % of Sales Mina Pharm 3% Glaxo Smith Kline 3% % of Market Sales IN 2000 1250 and abo licenses Delta 28.5% 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 Others 79% No FX Risk Minimal supplier concentration with the top five supplier representing less than 25% of sales Not Distributed by ISP 7% Product portfolio covers 85% of the SKUs available in the market, collectively representing 93% of the market sales value V NOVARTIS PHARMACEUTICALS Multiple Contracts with Key Suppliers gsk Pfizer AstraZeneca PHARCO PHARMACEUTICALS SERVIER ibnsinapharma MUP Medical Union Pharmaceuticals SEDICO ய سديك SANOFI Abbott Roche MINAPHARM AIKMA Marcyrl QUALITY GNP EIPICO AMOUN EVAPHARMA Securing Your Health Source: IMS Health; Company Management No SKU Concentration (Each SKU ≤0.5% of sales) map Multi-Apex Pharma 16#176 Robust Financial Performance Robust financial performance with double digit top line and bottom line growth ibnsinapharma IN 1Q18 Net Revenues EGP 2.9 BN h 1Q18 Gross Profit EGP 216 MN 1Q18 EBITDA EGP 92 MN ** 1Q18 ibnsinapharma Net Profit EGP 28 MN 1Q18 Norm. Net Profit¹ EGP 36 MN ▲ 51.1% y-o-y ▲ 44.9% y-o-y ▲ 69.4% y-o-y ▲ 46.3% y-o-y ▲ 88.4% y-o-y ibnsinapharma Source: Company Management (1): Normalized net profit factors out a one-time capital increase expenses of EGP 7.5 million and a general provision of EGP 3.5 million 17#18III Key Investment Highlights 6 Robust Financial Performance Robust financial performance with double digit top line and bottom line growth Gross Revenue¹ | EGP mn CAGR 31% 9,818 7,372 5,439 4,302 3,361 Gross Profit | EGP mn, % CAGR 37% 8.6% 7.9% 7.8% 7.5% 7.2% 7.3% 826 6.8% 569 YOY↑ 51% 394 2,958 307 1,953 228 EBITDA & Margin | EGP mn, % CAGR 46% 4.2% IN 406 3.2% 3.2% 2.9% 2.9% 2.9% 2.7% 229 YOY↑ 45% YoY 69% 155 122 216 89 92 149 55 2013 2014 2015 2016 2017 1Q17 1Q18 2013 2014 2015 2016 2017 1Q17 1Q18 2013 2014 2015 2016 2017 1Q17 1Q18 Net Profit & Margin | EGP mn, % ROE | % CAGR 50% 1.8% Includes one-time capital inc. expenses of EGP 7.5 mn& general provision of EGP 3.5 mn 41% 36% 1.4% 32% 33% 170 1.1% 1.0% 1.0% 1.0% 0.9% 102 YoY 46% 57 35 38 28 19 47% Return on Fixed Assets | % In equity from IPO proceeds 48% 42% 37% 7% 5% 63% 89% 11% 13% 2013 2014 2015 2016 2017 1Q17 1Q18 2013 2014 2015 2016 2017 1Q17 1Q18 2013 2014 2015 2016 2017 1Q17 1Q18 ibnsinapharma Source: Company Management (1): Pro forma gross revenue includes part of 3PL revenue that was stated as other income until 2016 18#19III Key Investment Highlights 6 Robust Financial Performance Effective working capital management has been a key success factor to ISP's performance DOH Inventory 32 days Receivables Payables CCC +5 days 2015 85 days 112 days 29 days -2 days 2016 83 days 114 days 29 days -11 days Supplier contracts have the option of credit terms ranging from 120-150 days or a cash discount of 5-6% Net Debt to Equity Ratio 215% 65% 17% 2014 2015 2016 2017 83 days 128 days Interest Coverage Ratio¹ 3.5x 3.1x 2.9x 2.8x 2.5x 2.4x 96% 15% -30% 2017 1Q17 1Q18 2014 2015 2016 2017 Net Debt | EGP mn 237 163 54 1Q17 Financial Lease Expense | EGP mn 404 65 58 111 31 days +15 days Q1 2017 85 days 100 days 32 days +5 days Q1 2018 80 days 107 days Facilities Breakdown | % of Authorized Limit Arab Bank Others Mashreq 5% 3% CIB 6% 18% Bank Audi 6% 1Q18 7% QNB Mar-2018 EGP 1.7 bn 12% Credit Agricole 7% Ahli United Bank 12% 8% United Bank 8% 9% Barclays HSBC National Bank 60 66 36 9 8 2014 2015 2016 (133) 2017 1Q17 1Q18 2014 2015 2016 2017 1Q17 1Q18 ibnsinapharma (1) Calculated as EBITDA over interest expense Source: Company Management 19#20III 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 10,747 8,958 3,657 4,641 6,249 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 6,121 3,511 1,691 85 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 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 Exports Other 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. 高 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. Other revenue also includes fleet advertising, market micro-research for manufacturers, bulk SMS, and various service-oriented business lines. Revenue | EGP '000 1,886 2,892 856 Revenue |EGP '000 8.465 7,647 5,922 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 ibnsinapharma Source: Company Management 20 20#21III Key Investment Highlights 8 Experienced Management Team Highly experienced management team with strong track record Mahmoud Abdel Gawad Co-Founder & Co-CEO Omar Abdel Gawad Co-Founder & Co-CEO Momen Gomaa CFO Rabeea Marzouk Sales Director Mohamed Adel Operations Director Ibrahim Emam Commercial Director Mohamed Shawky IR Manager 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 MBA from the Arab Academy for Science and Technology. 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 MBA from the Arab Academy for Science and Technology. 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. 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 MBA from the Arab Academy for Science and Technology. 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 MBA from the Arab Academy for Science and Technology. 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 MBA from the Arab Academy for Science and Technology. 14 years of experience in investor relations and corporate and family governance. IN Prior to joining Ibinsina Pharma, he served as Head of IR at Mezzan Holding, Kuwait and Senior Manager of IR at Egyptian Resorts Co. (ERC). B.A. in Economics and MBA from Arab Academy for Science and Technology, Certified Investor Relations from UK IR Society ibnsinapharma 21#22IN III Key Investment Highlights 8 Experienced Management Team Seasoned board of directors with diverse experience across various industries Mohsen Mahgoub Executive Chairman Mahmoud Abdel Gawad Executive Director Omar Abdel Gawad Executive Director Lindsay Forbes Non-Executive Director Amr Abdallah Independent Director Ahmed Elnawawi Independent Director ibnsinapharma *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. 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. 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. 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. *Extensive experience in technology and entrepreneurial investment. Mr Abdallah is on the board of several companies and is one of the founding members of Raya Holding, holding the posts of Managing Director, CFO, and finally CEO of the company. Prior to that, he served as Chief Business Officer for Vodafone Egypt. MBA from Aston Business School in Birmingham, UK. Decades-long track record of success in brand building and strategy development. Mr. Elnawawi held prominent posts at Procter & Gamble (PG) Company and Reckitt Benckiser (RB), leveraging superior consumer insight and strategic thinking at both posts. He currently serves as Director, Consumer & Market Insight, Developing Markets at RB *Global Executive MBA from Tsinghua - INSEAD, China-Singapore, Post Graduate Degree in Feasibility Studies and Project Appraisal from Cairo University and a BA in Economics from Cairo University. Source: Company Management 22 22#23IN III Key Investment Highlights 8 Experienced Management Team Seasoned board of directors with diverse experience across various industries Hany Badr Independent Director Abdel Aziz Ali Non-Executive Director Abdel Rehim Omar Non-Executive Director Mohamed Zaki Non-Executive Director Mohamed Mahgoub Non-Executive 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. *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. 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. 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). 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. 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. ibnsinapharma Source: Company Management 23 23#24III Key Investment Highlights 8 Experienced Management Team Organizational Structure Board Committees Audit Committee Business Development Committee Remuneration Committee Investment 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 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 HR Director Ahmed Refaat IR Manager Mohamed Shawky Marketing Manager Mostafa Salama 1 18 206 IN 24 24#25Appendix#26IV 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 350+ suppliers with rigorous contracting requirements, including quality audits, disables new entrants from obtaining credit lines Investment EGP1.5bn+ 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 26#27IV Appendix Income Statement In EGP Gross Revenue 1 Net Revenue 2014 2015 2016 2017 4,301,516 5,439,119 7,372,467 9,818,405 1Q2017 1,953,189 1Q2018 2,958,341 YoY Change (1Q17-1Q18) 51% 4,197,376 5,327,728 7,205,983 9,586,344 1,906,746 2,881,099 Cost Of Revenue (3,889,670) Gross Profit 307,706 Gross Profit Margin 7.2% (4,931,515) 396,213 7.3% (6,636,864) (8,759,914) 569,118 Selling, General & Administrative (187,399) Penalties On Returned Checks 1,792 EBITDA 122,099 (244,459) 3,296 155,050 7.9% (346,502) 826,430 8.6% (431,815) (1,757,869) 148,878 7.8% (95,903) (2,665,364) 215,734 45% 7.5% (125,923) 5,579 228,195 11,241 1,538 2,524 405,856 54,513 92,335 69% EBITDA Margin 2.8% 2.9% 3.1% 4.1% 2.9% 3.2% Depreciation & Amortization (11,037) (18,792) (26,790) (31,097) (7,124) (9,759) EBIT 111,062 136,258 201,406 374,760 47,389 82,576 74% EBIT Margin 2.6% 2.5% 2.7% 3.8% 2.5% 2.8% Financial Expenses (48,880) (56,331) (74,272) (115,830) (18,806) (38,256) Other Expenses (7,408) (5,912) (3,173) (37,559) (56) (11,781) Other Income 7,481 1,873 9,137 6,326 344 6,368 EBT 62,255 75,888 133,098 227,697 28,871 38,906 35% EBT Margin 1.4% 1.4% 1.8% 2.3% 1.5% 1.3% Differed Tax (2,379) 3,035 4,793 (600) 150 296 Income Tax (22,335) (21,564) (36,143) (56,960) 9,615 (11,249) Net Profit 37,541 57,358 101,748 170,137 19,105 27,954 46% Net Profit Margin 0.9% 1.1% 0.90% 1.10% 1.00% 1.00% ibnsinapharma Source: Company Management (1) Gross revenue includes transportation revenue 27#28IV Appendix Balance Sheet In EGP 2014 2015 2016 2017 1Q2017 1Q2018 Property & Equipment, net 118,666 152,479 171,327 210,264 180,215 221,731 Other Assets 2,840 5,307 6,667 8,804 6,481 8,804 Project Under Construction 25,864 13,787 47,639 161,267 111,402 276,755 Deferred Income Taxes 3,876 6,911 11,704 11,104 11,704 11,400 Total Long Term Assets 151,246 178,485 237,336 391,438 309,802 518,637 Inventories 427,320 455,770 611,993 1,050,549 774,600 Incoming Documents for Collection 316 442 2,357 273 1,527 971,748 527.517661 Trade & Notes receivable, net Supplier Advances 1,127,421 12,576 1,379,307 1,946,304 2,459,296 1,982,090 2,706,771 30,652 59,951 101,360 218,127 201,573 Debtors & Other Debit Balance, net 90,029 135,714 153,602 165,718 164,377 131,417 Due from Related Parties 371 371 372 372 371 Cash & Cash Equivalent 16,368 32,866 43,880 164,791 39,134 Total Current Assets 1,674,402 2,035,123 2,818,459 3,942,358 3,180,228 372 41,718 4,054,128 Total Assets Paid In Capital Share Premium General Reserve 1,825,648 2,213,607 3,055,796 4,333,796 3,490,031 4,572,765 20,000 24,000 24,000 168,000 24,000 180,500 0 148,000 0 0 0 277500 0 0 147,079 3,079 147,079 3,079 Legal Reserve 6,334 8,211 12,000 12,000 12,000 20,507 Retained Earnings 46,255 13,000 26,944 62,980 122,785 224,610 Net Profit For The Year 37,541 57,358 101,748 170,137 28,870 27,954 Total Shareholders' Equity 110,131 250,570 311,771 416,196 334,735 734,150 Non-current portion of medium term loan 21,978 14,768 29,632 25,083 33,636 59,339 Non-current notes payable 23,880 35,861 20,312 7,660 13,887 6,090 Other Non-current liabilities 0 0 11,251 20,815 11,251 24,939 Non-current portion of land creditors 212 141 71 0 71 0 Total Long-term Liabilities 46,070 50,771 61,266 53,559 58,845 90,368 Credit facilities Contingency provision 206,501 156,686 68,644 6,952 409,350 93,711 0 600 3,100 24,067 2,067 27,567 Customers Advance Payments 4,757 6,003 6,324 6,453 10,214 5,178 Current portion of land creditors 401 1,001 101 71 Trade and notes payable 1,389,370 1,678,860 2,519,985 3,700,786 101 2,622,246 Current portion of medium term loan 25,212 24,866 13,112 25,794 13,733 71 3,523,678 30,496 Creditors & other credit balances 43,206 44,251 71,492 99,919 38,740 67,545 Total Current Liabilities 1,669,447 1,912,267 2,682,759 3,864,041 3,096,451 Total Liabilities & Shareholders Equity 1,825,648 2,213,607 3,055,796 4,333,796 3,490,031 3,748,247 4,572,765 ibnsinapharma Source: Company Management 28#29Contact Information harma ibnsinapharma Hotline 16017 2 www.ibnsina-pharma.com * ibnsinapharma 3 Hotline 16017 www.ibnsina-pharma.com ibnsinapharm#30V Contact Information Contact Information ibnsinapharma Mohamed Mahmoud Shawky Investor Relations Manager Tel.: +2010 00852771 Email: [email protected] ibnsinapharma 30 30 IN