Investor Presentaiton

IV 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 31

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