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Investor Presentaiton

30 Transportation (3% of 1H2018 COGS) Financial Overview Egyptian Macro Update The Egyptian government is implementing policies that will restore the country's financial health, but not without corporations feeling some of the burden of economic reforms P Utilities (c.2% of 1H2018 COGS) A Value Added Tax (VAT) % In July 2018, the Ministry of Electricity and Renewable Resources raised gasoline prices 50%. This follows earlier increases in previous fiscal years as part of the government's gradual phase-out of energy subsidies Also in July 2018, electricity prices began to climb 26% on average, following a July 2017 hike of 42% and an August 2016 increase of 40% on average across the country. As of 1 July 2017, the VAT tax increased to 14% from 13%; notably, services such as, but not limited to, accounting and advertising were subject to the VAT for the first time in July 2016. 19.75% 17.75% 15.75% 11.75% 12.75% 10.25% Despite the latest increases in energy prices, inflation has eased as the country surpassed the base effect following the float of the Egyptian pound. As such, the Central Bank began cutting interest rates with two 100 basis points cuts thus far in 2018 Central Bank of Egypt Lending Rates Evolution from 2016 to Date | % Positive Impact Following the rate cuts, our cost of debt will be lower on our medium-term loan granted in April 2017 to finance our new corporate headquarters. Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 INTEGRATED DIAGNOSTICS HOLDINGS Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 18.75% 17.75% Negative Impact The banks decrease call accounts and time deposit rates, which negatively affects interest income on the large cash balances we carry on our balance sheet. Mar-18 The impact of all new government policies is reflected in Company guidance.
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