ABUK Model Update Re-initiation of Coverage - October 2016 (2)

We Re-Initiate our coverage for Abu Qir Fertilizers Company (ABUK.CA) with a “HOLD”
rating; with an upside potential of 6.8% driven from a Fair Value of EGP 107.85/share. We
applied the Discounted Cash Flow (DCF) valuation methodology to value Abu Qir’s opera-
tions, reflecting our assumptions for the company during the forecast .
In our model we utilized an after tax risk free rate of 13.2%, risk premium of 8% and a per-
petual growth rate of 2.0%. In addition we applied a liquidity risk premium of 2% and a sta-
tistical beta of 0.5 leading to a WACC of 19.0% .
At current price levels, ABUK stock is being traded at FY-17 P/E of 11.0x, however it is ex-
pected to drop in FY-18 to reach 9.7x on the back of expected higher earnings.
Market leader in the nitrogenous fertilizers industry in Egypt controlling 70% of total mar-
ket supply: The company is 85% owned by the government as it was established by the gov-
ernment in 1976 to supply the Egyptian agriculture sector with the required fertilizers. Abu
Qir 1 was the first plant and was established in 1976 to produce prilled urea Abu Qir Fertil-
izers remains the largest producer of nitrogenous fertilizers in Egypt supplying various prod-
ucts, including granulated urea, prilled urea, ammonium nitrate, NPK and liquid UAN (the
last two are exported). The company has lacked control over its profit margins due to the
pricing scheme set by the government as well as its dependence on the government for
natural gas supply.
Unfavourable FX exposure: The expected devaluation/floatation is set to have a negative
effect on the company due to its effect on natural gas prices. Natural gas , which represents
50-60% of the company’s total COGS is supplied by the government at USD 4.5/mmbtu. The
devaluation/floatation would result into increase in COGS while the company maintains its
inability to pass this increase on. Export revenues would ease the devaluation effect, how-
ever, it will not offset the full effect of the natural gas cost increase as it only accounts for 20
-30% of the total revenues.
Government pricing limits Abu Qir’s profitability: Due to its importance to the agricultural
sector in Egypt the fertilizer industry has been controlled by the government through a pric-
ing control system. Abu Qir is obligated to supply a certain quota of its production to the
Principle Bank for Development and Agriculture Credit (PBDAC) at lower prices which are set
by the government. This disables the company’s ability to pass on any cost increase to its
selling price which is almost completely out of the company’s control. A plan for a pricing
formula linking fertilizer prices to natural gas prices was approved in 2014 but was later
abandoned. Implementing such a decision would have enabled the company to maintain its
margins and pass on the cost increase to the selling price.
Removing subsidy and export ban would create a great opportunity for Abu Qir: The gov-
ernment’s set prices for Abu Qir’s products has limited the company’s potential margins due
to the significant difference between global prices and the local selling prices. Amid recent
talk of implementing cash subsidies, removing subsidies would allow the company to
achieve much higher margins. Furthermore, lifting the export ban would also allow the com-
pany to export its products at the global prices, which would increase the company’s gross
margin significantly.
PRIME INVESTMENT RESEARCH
ABU QIR FERTILIZERS - RE-INITATION OF COVERAGE
OCTOBER 27TH , 2016
ABU QIR FERTILIZERS …
Unexploited potential under government pricing system
“HOLD”
MARKET PRICE EGP 101.01
FAIR VALUE EGP 107.85
POTENTIAL 6.8% UPSIDE
INVESTMENT GRADE
“VALUE”
1
Stock Data
Outstanding Shares [in mn] 81.1
Mkt. Cap [in mn] (EGP) 8,497
Bloomberg – Reuters ABUK.EY / ABUK.CA
52-WEEKS EGP 99.5/EGP150.0
DAILY AVERAGE TURNOVER (2016) EGP 0.07MN
Ownership
National Investment Bank 25%
Egyptian General Petroleum 19%
Industries Development Authority 13%
Al Ahly Capital Holding 8%
Chemical Industries Holding 6%
Nasser Social Bank 6%
Misr Insurance Co. 5%
Free Float & Others 18%
Source: ABUK
Source: ABUK, Prime Research
All prices are as of 26th
October 2016
0
20
40
60
80
100
120
140
160
180
26-10-2015
26-11-2015
26-12-2015
26-01-2016
26-02-2016
26-03-2016
26-04-2016
26-05-2016
26-06-2016
26-07-2016
26-08-2016
26-09-2016
26-10-2016
ABUK EGX 30-rebased

2
Valuation
We applied the Discounted Cash Flow (DCF) valuation methodology to value ABUK’s operations, reflecting our
assumptions for the company during the forecast period.
Utilizing an after tax risk free rate of 13.2%, a market risk premium of 8%, a beta of 0.5 and liquidity risk premium
of 2.0% which translated to a WACC of 18.9%, and a perpetual growth rate of 2.0%. We arrive at a Fair Value of
107.85.
We applied 2.0% liquidity risk premium on the back of the low average trading volume of 738. Furthermore, we
applied a growth rate of 2.0% with the fertilizer industry being correlated with the population growth.
It is worthy to mention that, the current hike in risk free rate witnessed in Egypt has caused a depression in our
fair value.
We applied 5.0% annual growth rate for the company’s local selling prices on the back of the expected devalua-
tion and inflation pressure. Holding prices constant throughout our forecast period would result in our fair value
changing to EGP 79.43/share.
Moreover, Abu Qir Fertilizers’ valuation is strongly dependant on natural gas prices, as they represent 50-60% of
the company’s cash COGS. The increase in natural gas prices would weigh aggressively on our fair value. The fol-
lowing table shows sensitivity of our fair value to change in prices of natural gas.
Upside & Downside Risk
OCTOBER , 2016
Upside Risk Downside Risk
 Removing fertilizers subsidy by the government to
allow producers to sell at global prices.
 Increase in natural gas prices beyond USD 4.5/
mmbtu.
 Removing export ban on urea and ammonium nitrate
products.
 Continuity of fluctuation in natural gas supply.
 More than expected recovery in Urea prices to in-
crease the company’s export prices for UAN & Am-
monia.
 Further drop in international Urea & Ammonia
prices, which would affect ABUK’s export sales
prices.
Natural Gas Price, USD/mmbtu 4.50 5.50 6.50 7.50
Fair Value, EGP/share 107.85 87.17 66.00 50.96
Potential 5.4% -14.8% -35.5% -50.2%

3
Fertilizer Industry Overview
The fertilizer industry is governed by three main nutrients characterized as primary nutrients; nitrogen, phos-
phorous, and potassium. Fertile soil is generally rich in nutrients which play an important role in plant growth and
development. Geographically, soils are rich in different minerals; meaning that different soils require different
fertilizers. Plants typically take the nutrients they need from the soil to grow; with the result that soils can be-
come impoverished if there is no process to replace these nutrients. Impoverished soils reduce crop yields, and
ultimately the economic viability of the land itself. Traditionally, rotation of crops and regular fallow periods, to-
gether with spreading of animal manure, allowed the land to recover some of its fertility, but today the main
method used to restore nutrients to soil and to increase crop yields is the application of mineral fertilizers. Apply-
ing an excess of nutrients can pose a threat for both the environment and the soil itself.
Nitrogen (N) Fertilizers:
Nitrogen is considered the main source of protein and is essential for plant growth and development, while also
contributing to the plants vigor, color, and yield. All nitrogen fertilizers are made from ammonia (NH3), which is
produced by the Haber-Bosch process. In this energy-intensive process, natural gas (CH4) supplies the hydrogen
and the nitrogen (N2) is derived from the air. Generally ammonia is used as a feedstock for all other nitrogen
fertilizers.
Phosphate (P) Fertilizers:
Phosphate is vital for root development and aids the plant in resisting drought, it is also important for growth and
development for the ripening of seeds and fruits. All phosphates are obtained by extraction from minerals con-
taining the anion mixing with sulfuric acid (produced from sulfur). In rare cases, fields are treated with the
crushed mineral, but most often more soluble salts are produced by chemical treatment of phosphate minerals.
The most popular phosphate-containing minerals are referred to collectively as phosphate rock.
Potassium (K) Fertilizers:
Potassium helps with the photosynthesis process for high yielding crops; it also improves crop resistance to dis-
ease and drought. Potash is a mixture of potassium minerals used to make potassium fertilizers. The main effort
in producing this nutrient from theore involves some purification steps to remove sodium chloride (common
salt).The other types of fertilizers include; Compound Fertilizers, Organic Fertilizers, Calcium Fertilizers and Mag-
nesium Fertilizers.
OCTOBER , 2016

4
Global Industry
The global nitrogen fertilizer market has been suffering from low pricing since 2015 mainly due to oversupply and
fall in energy and commodity prices:
Oversupply: The increase in capacities since 2012 especially in China and North America has put significant
pressure. It is reported that nitrogen inventory has been filling warehouses (especially in UK & Europe)
and needs to be cleared first.
Drop in natural gas prices: Natural gas prices dropped severely in 2015 flattening the global nitrogen cost
curve and shifting the nitrogen industry floor price down. The drop in oil prices to its lowest levels di-
rectly affected feedstock items like natural gas whose prices tend to track oil prices.
The demand weakness in addition to the oversupply has pushed prices downwards with energy prices standing at
very low prices. Moreover, Urea oversupply following the decline in prices has also impacted pricing applying
downward pressure.
In Africa, fertilizer demand is also expected to witness slow growth as the expected little change in low farmer
incomes, which are the main trigger for fertilizers demand. The dependence on government policies and subsidies
hinder any significant growth in farmer incomes. However, increased grain prices could be a key to increase
farmer incomes, which would in turn create increased demand for fertilizer.
OCTOBER , 2016
-20%
-15%
-10%
-5%
0%
5%
0
50
100
150
200
250
300
350
400
450
Urea Growth %
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
0
100
200
300
400
500
600
Ammonia Growth %
GLOBAL UREA PRICE & FORECAST, USD/MT GLOBAL AMMONIA PRICE & FORECAST, USD/MT
SOURCE: BLOOMBERG & PRIME RESEARCH

5
Local Industry
Egypt's fertilizer sector, which utilizes the country's considerable gas reserves and imported LNG, is growing in
importance, both within the petrochemicals industry and the wider economy. The value of exports in Egyptian
pounds is also growing due to EGP depreciation, but volumes are also rising due to rising capacity.
In Egypt, the two most widely used fertilizers are nitrogen and phosphate fertilizers. While nitrogen is more
essential for plant growth and development ,phosphate fertilizers aids the plant and helps with resisting drought.
As we mentioned before, phosphate fertilizers are also essential for development for the ripening of seeds and
fruits. Although fertilizers are known to be subsidized, currently, only nitrogen fertilizers are under state subsidy.
Due to the fact that a) the use of nitrogen fertilizers is imperative in Egyptian soil, while phosphate is optional. b)
Producing nitrogen fertilizers requires natural gas as a raw material and natural gas is subsidized by the Egyptian
government, hence, the subsidy is passed on to the consumer in turn. Unlike nitrogen that requires natural gas as
a raw material, phosphate fertilizers use phosphate rock and Sulfur as main raw materials. Currently nitrogen
fertilizer producing companies face difficulties in obtaining natural gas. However, that is not the case for phos-
phate fertilizer producing companies.
The agriculture sector, which is considered the main driver for fertilizer demand, represented 11.2% of Egypt’s
total GDP in FY2014/15 dropping from 14.5% a year earlier. The sector witnessed a 3% y-o-y growth with invest-
ments in agriculture and irrigation sector growing by 10.8% to reach USD 1.8bn in FY2014/15. The sector remains
a priority for the Egyptian government as it contains a high percentage of the employment force and is consid-
ered the fourth largest contributor to the GDP.
OCTOBER , 2016
Company Name Products Capacity
EFIC
PSSP, GSSP, Ammonium Sulfate, Sulfuric Acid,
2.3mn tons
Dicalcium Phosphate, NPK
Abu Zaabal Fertilizers
Ammonium Sulfate, NPK, Sulfuric Acid, PSSP,
3.5mn tons
GSSP, TSP, Concentrated Sulfuric Acid
EFC Ammonia, Urea 1.3mn tons
Abu Qir Fertilizers Ammonia, Urea, Ammonium Nitrate, NPK, UAN liquid 2.2mn tons
Helwan Fertilizers Urea 0.7mn tons
Alexandria Fertilizers Urea 0.7mn tons
Suez Ammonium Sulfate 0.3mn tons
SEMADCO - Al Nasr Company Ammonia, Ammonium Sulfate, Ammonium Nitrate 0.4mn tons
KIMA Ammonia, Urea, Ammonium Nitrate, Methanol 0.3mn tons
Al Delta Fertilizers Ammonia, Urea, Ammonium Nitrate, Methanol 0.8mn tons
MOPCO Ammonia, Urea 3.1mn tons
KEY MARKET PLAYERS
SOURCE: CBE, CAPMAS, PRIME RESEARCH

6
The main obstacle for nitrogen fertilizer producers over the past years was the natural gas supply, which is con-
sidered feedstock. Following electricity cuts the government channelled all required natural gas to power plants
for household consumption, which caused supply cuts for industries like fertilizers, cement, steel and ceramics,
which are all dependent on natural gas. This affected production for nitrogen fertilizers, which unlike the cement
companies could not substitute natural gas as it is feedstock. By the end of 2Q2016 Egyptian Natural Gas Holding
Company (EGAS) announced the resumption of natural gas supply to all nitrogen fertilizer plants at an average of
90% of the total contracted amount (600mn cubic feet per day). However seasonality of natural gas by power
plants has affected EGAS’ fulfilment of its supply agreement with the company. Power plants increased natural
gas consumption due to the demand for air conditioning with power plants demand being considered as the gov-
ernment’s main priority. However, we expect supply for fertilizer plants to resume following the summer espe-
cially with the fertilizer industry being highly appreciated by the government due to its exporting potential. As a
result of rising capacity, Egyptian fertiliser exports grew 131% y-o-y to EGP2.05bn (USD231mn) in the first five
months of 2016 and by end-May represented 20% of the value of Egypt's total exports, according to the Egyptian
Chemical Export Council (CEC).
Natural gas supply remains a risk factor for fertilizers: We expect growth to remain volatile due to the natural
gas supply concerns. Despite efforts by companies and the government to increase natural gas supply, which saw
a 12.6% y-o-y drop in 1Q2016. We expect the production recovery in early 2017 with the start up of the West Nile
Delta project. Natural gas price have always been set by the government in USD for all energy intensive industries
which includes the fertilizer industry. With the natural gas being the main component of fertilizer production cost
(50-60%) price hikes as well as devaluation have had a negative effect on the margins of public fertilizer produc-
ers, with prices being mostly set by the government as well limiting the companies’ ability to pass on the increase
in production costs.
OCTOBER , 2016
AGRICULTURE % OF GDP INVESTMENT IN AGRICULTURE, USD MN % TOTAL OF GDP
SOURCE: CBE, CAPMAS, PRIME RESEARCH
NATURAL GAS PRICE USD/MMBTU HISTORICAL
SOURCE: PRIME RESEARCH
Pre FY-09
NG Price: USD
1.25/mmbtu
FY-09 to FY-13
NG Price:USD
3.00/mmbtu
Since FY-14
NG Price: USD
4.50/mmbtu

7
Further reasons behind losses recorded by governmental fertilizer producers: Apart from increased natural gas
prices, there were some other factors that contributed to losses recorded by fertilizer producers. First, producers
are obliged by law to sell almost 55% of their supply to the government, which sets the selling prices, for the Prin-
ciple Bank for Development and Agriculture Credit (PBDAC). The government has valued selling prices at an USD
exchange rate of EGP 8.88, despite rate being recorded at EGP9.25 in the government budget. As a result , com-
panies sell at a huge discount to market and export prices . Furthermore, plants have to halt operations for
longer periods for maintenance with most companies operating 330 days/year at most.
Pricing set by the government: Nitrogen based fertilizers are essential to Egypt’s agriculture sector. As a result
the government has implemented a price control system, whereby producers are obliged to sell at a certain price
regardless of international prices of urea and ammonia to ensure the farmers can afford the product. The compa-
nies supply their products through a quota system. Principle Bank for Development and Agriculture Credit
(PBDAC) , which is considered the intermediary between producers and farmers and is supervised by the Minis-
try of Agriculture and the Central Audit agency, is assigned a certain quota at a subsidized price to distribute to
farmers.
Government raise fertilizer prices by 33% in 2014: In October 2014 the Ministry of Trade and Industry an-
nounced raising the prices of subsidized fertilizers by 33%. Thus, average prices of urea fertilizers increased to an
average of EGP 2000/mt from EGP 1500/mt, while Nitrate prices reached EGP 1900/mt from EGP 1400/mt. This
came as result of the huge difference between subsidized and unsubsidized and privately sold products . How-
ever, due to the FX effect as well as the increase in natural gas prices governmental fertilizer producers still suf-
fered from compressed margins.
Reasons behind the price decline: The decline in urea prices as well as the slow demand has been main reasons
behind the decline in fertilizer prices pushing producers towards the export markets. It is noteworthy that, in
2014 the government’s decision to hike locally subsidized fertilizers by 33% had benefited fertilizer producers
especially state-owned which deliver the highest quantities of subsidized fertilizers.
Devaluation/ flotation effect on fertilizer producers: Fertilizer producers would suffer from higher production
costs due to natural gas (main feedstock) being valued in USD (USD 4.5/mmbtu). However, the fertilizer exports
could help ease the negative fx exposure post the devaluation/flotation effect. Egyptian Fertilizers Company
(EFC) was the largest exporter with its exports reaching EGP 490mn with 25% of total fertiliser exports. MOPCO's
exports totalled EGP 317mn and AlexFert Company's exports hit EGP 297mn. France was the main export desti-
nation with EGP506mn of fertiliser products sold on the French market, followed by Italy (EGP 353mn) and Turkey
(EGP 318mn). It is noteworthy that state-owned companies are only allowed to export certain products as they
are obligated by the government to supply a certain quota locally.
Recent additions to the total fertilizer capacity: MOPCO is adding significantly to Egypt’s fertilizer capacity after
has adding 2mn tonnes per annum (tpa) of new fertiliser capacity on-stream in 2016. Meanwhile, E-Chem is also
targeting the addition of 2mn tpa. It is noteworthy that consistent natural gas output is essential to operate the
new capacities with MOPCO already operating at low utilization due to low natural gas volumes received.
OCTOBER , 2016

8
Abu Qir Fertilizers
Abu Qir fertilizers (ABUK.CA) is the largest producers of
nitrogen based fertilizers in Egypt controlling almost 70%
of the local market supply. The company is 85% owned by
the government. It was established by the government in
1976 to supply the Egyptian agriculture sector with the
required fertilizers. Abu Qir 1 was the first plant and was
established in 1976 to produce prilled urea. The com-
pany’s main products are: Prilled Urea, Ammoium Nitrate,
Granulated Urea, NPK blend, Liquid UAN and Ammonia.
The Egyptian government has banned Abu Qir from ex-
porting its products as it is considered the main supplier of
the local market. However, liquid UAN excess ammonia
has been approved to be sold at international prices. As
we mentioned earlier, the price of locally sold products
are determined by the government with the company
forced to supply a set percentage of its production to the
Principle Bank for Development and Agriculture Credit
(PBDAC).
OCTOBER , 2016
ABUK BOD & SHAREHOLDERS STRUCTURE
Capacity (mtpd)
Primary Products
Abu Qir 1
Prilled Urea 1,550
Abu Qir 2
Ammonium Nitrate 2,400
Abu Qir 3
Granulated Urea 1,750
Secondary Products NPK Blend 1,000
Export Products
UAN Liquid 2,000
Rem Ammonia 1,000
Board Members
Saad Maaty Chairman & MD
Madiha El Refaei Board Member
Hassan Jalil Board Member
Mohamed Hussein Board Member
Ehab Aziz Board Member
Syad El Bahey Board Member
Mohamed Shouman Board Member
Ismail Jaber Board Member
SOURCE: ABUK
25%
19%
13%
8%
6%
6%
5%
18%
National InvestmentBank
EgyptianGeneral Petroleum
IndustrialDevelopment Authority
AlAhly Capital Holding C
ChemicalIndustries Holding
NasserSocialBank
MisrInsurance Co
Free Float & Other

9
Abu Qir Fertilizers dynamics...
Largest producer of nitrogenous fertilizers in the local market: Abu Qir Fertilizers remains the largest producer of
nitrogenous fertilizers in Egypt supplying various products, including granulated urea, prilled urea, ammonium
nitrate, NPK and liquid UAN (the last two are exported). Despite being a market leader, the government owned
company has suffered in the past from unstable margins due to its little control over pricing and cost compo-
nents.
Natural gas supply was a main concern for the company: Natural gas is essential for fertilizer production as it is
considered a main feedstock. In FY-14 the country was facing a n power problem causing electricity cuts. As a
result , the government has opted to re-allocate most of the natural gas supply to be used for household electric-
ity, cutting of natural gas supply for fertilizer as well as cement, steel and ceramics producers. This caused the
shutdown of operations for Abu Qir due to the lack of required feedstock making the company unable to supply
its quota to the Principle Bank for Development and Agriculture Credit (PBDAC). The natural gas supply problem
is expected to disappear following the Zohr discoveries which are expected to increase the natural gas supply in
Egypt.
Lack of control over pricing and feedstock prices remain a risk for Abu Qir: Due to its importance to the agricul-
tural sector in Egypt the fertilizer industry has been controlled by the government through a pricing control sys-
tem. Abu Qir is obligated to supply a certain quota of its production to the Principle Bank for Development and
Agriculture Credit (PBDAC) at lower prices which are set by the government. This disables the company’s ability to
pass on any cost increase to its selling price, which is almost completely out of the company’s control. The in-
crease in natural gas prices in FY-15 to USD 4.5/mmbtu, which is 60-70% of the company’s total cash COGS, has
caused an obvious margin compression for the company. The suspended plan for urea-gas pricing equation,
which was set to be implemented in FY-14 would have created a more flexible pricing scheme for Abu Qir and to
enable the company to restore its margins. Instead, the government opted to raise selling prices by 33% in late
2014 in an attempt to ease the effect of the natural gas price increase. However, the lack of natural gas supply
was also another factor which affected the company’s capacity utilization. It is noteworthy that, the government
has valued selling prices at an USD exchange rate of EGP 8.88, despite exchange rate being recorded at EGP 9.25
in the government budget.
OCTOBER , 2016
53%
55%
41%
39%
35%
0%
10%
20%
30%
40%
50%
60%
FY-12 FY-13 FY-14 FY-15 FY-16
ABUK GROSS MARGINS AFFECTED BY NG PRICES, %HISTORICAL NATURAL GAS PRICES (USD/MMBTU)
3.00 3.00
4.50 4.50 4.50
0.00
1.00
2.00
3.00
4.00
5.00
FY-12 FY-13 FY-14 FY-15 FY-16
SOURCE: ABU QIR FERTILIZERS, PRIME RESEARCH

10
Subsidy removal would present a great opportunity for Abu Qir: The imposed pricing as well a s quota to Princi-
ple Bank for Development and Agriculture Credit (PBDAC) have limited Abu Qir’s profitability significantly. The
difference between market price and subsidized price has squeezed the company’s margin. For example, Nitrate
based NPK is supplied to PBDAC at EGP 1,434/mt compared to its unsubsidized price of EGP 2,402/mt. The gov-
ernment is currently considering replacing the current subsidy system with a cash subsidy. This would enable
the company to absorb the expected negative effect from the devaluation, which would increase its cost signifi-
cantly and would help the company achieve much higher margins with higher prices pushing towards in-
creased revenues. The only problem remains the low global urea prices which would affect Abu Qir pricing even
after subsidy removal.
Lifting the export ban would present a further opportunity to achieve higher margins: The government forces
Abu Qir Fertilizers to sell almost all of its products locally due to the need for fertilizers in the agriculture sector.
The company is only allowed to export liquefied UAN as well as the unused ammonia from the production proc-
ess. Removing the ban imposed on urea and ammonium nitrate exports at international prices would enable to
the company to achieve higher revenues. More importantly, export revenues would increase in value due to the
expected devaluation/floatation and would offset a part of the negative FX exposure caused by the natural gas
cost.
Unfavorable FX exposure for Abu Qir Fertilizers: Natural gas , which represents 50-60% of the company’s total
cash COGS, is currently valued at USD 4.5/mmbtu. It is worthy to mention that one ton of ammonia requires 32
mmbtu of natural gas whereas a ton of urea requires 5.2 mmbtu. The expected increase in FX rates would in-
crease the cost of natural gas significantly as prices remain controlled by the government with the company be-
ing unable to pass on the cost increase. Despite the export revenues (UAN & remaining ammonia) benefitting
from the devaluation/floatation, they represented a historical average of 25% of total revenues (EGP 65.9mn in
FY-16), whereas natural gas is the main cost component for Abu Qir Fertilizers.
OCTOBER , 2016
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
EGP/USD Estimates 7.63 8.88 10.81 11.50 11.25 10.75 10.50
Natural Gas Price, USD/mmbtu 4.50 4.50 4.50 4.50 4.50 4.50 4.50
Change % 0% 0% 0% 0% 0% 0% 0%
Natural Gas Price, EGP/ mmbtu 34.34 39.96 48.64 51.75 50.63 48.38 47.25
Change % 7% 16% 22% 6% -2% -4% -2%
DEVALUATION/FLOATATION EFFECT ON NATURAL GAS PRICE PER MMBTU

11
Financial Performance in FY2015/16:
Abu Qir Fertilizers recorded a net profit of EGP 1,020.1mn in FY-16, witnessing a 12.9% y-o-y increase compared
to EGP 903.2mn recorded in FY-15. The increase came on the back of strong revenue increase as well FX gain
recorded in FY-16.
ABUK’s total revenues increased by 11.0% y-o-y backed by the increase in total urea, ammonium nitrate and
exported ammonia revenues. Prilled Urea (Abu Qir 1) revenues witnessed 24.2% y-o-y increase on the back of
increased sales volume (+28.0% y-o-y) with the company selling 97% of its production volume. Furthermore,
granulated urea (Abu Qir 3) witnessed 24.2% y-o-y increase following a 19.9% y-o-y increase in sales volume.
Moreover, ammonium nitrate has increased by 5.8% y-o-y backed mainly by sales volume increase. It is worthy
to mention that prices for subsidized urea and ammonium nitrate have witnessed almost no change with the
government setting the selling prices. While exported ammonia revenues in EGP increased by 86.1% backed by
strong sales volume increase as well as EGP devaluation, which increased ammonia sales value in EGP, Liquefied
UAN revenues in EGP dropped 26.0% y-o-y. This could be attributed to the drop in UAN selling prices, which
dropped 26.4% y-o-y following the drop in global urea prices with both products being strongly correlated.
In terms of COGS, ABUK witnessed 17.4% y-o-y increase mainly due to a 14.1% y-o-y increase in raw material cost.
Wages also grew by 11.1% y-o-y, which however has less effect due to raw materials contributing to almost 80%
of total COGS. Natural gas cost, which represents an average of 40-50% of the company’s total cash COGS, is con-
sidered the main reason behind the increase in raw material cost. The government supplies Abu Qir Fertilizers
with natural gas at USD 4.5/mmbtu, which meant that the devaluation of EGP directly increased the natural gas
cost, which is required as feedstock for all of the company’s products. It is worthy to mention that natural gas
price EGP/mmbtu increased by 16% y-o-y.
Abu Qir Fertilizers’ gross profit in FY-16 grew by a mere 1.1% y-o-y on the back of the stronger increase of the
company’s production costs compared to revenues. Gross margin dropped significantly to reach 35% (versus 39%
in FY-15). Meanwhile, EBITDA dropped 5.4% y-o-y on the back of higher provisions and increase in SG&A, which
increased on the back of higher wages (+18.0% y-o-y).
Net profits witnessed 12.9% y-o-y increase backed by the decline in taxes as well as recorded FX gain in FY-16
with net margin growing slightly to reach 25.9% compared to 25.5% in FY-15.
OCTOBER , 2016

12
Valuation Assumptions:
Revenues:
 Abu Qir 1
Abu Qir 1 plant, which operates an average 330 days per year, has a capacity of 530,000 mtpa of prilled urea and
380,000 mtpa of ammonia. Ammonia is mainly used for the production of prilled urea with one ton of urea re-
quiring 0.58 tons of ammonia.
We expect total prilled urea sales to grow at a 5-year CAGR of
4.4% to reach EGP 1.1bn by FY-21. Prilled urea is divided into
normal and zink prilled urea with both being sold at a price
variation with the average price however maintained at EGP
2,000mt since the increase by the government in FY-14. Vol-
umes are expected to drop in FY-17, according to Abu Qir’s
estimates on the back of limited demand due to the farmers’
financial inability to buy large amounts of fertilizers. Volumes
are expected to pick up starting FY-18 with utilization reaching
110% (historical high) by FY-21. In terms of prices we expect
average prices for prilled urea (normal & zink) to grow at a 5-
year CAGR of 5.0% due to inflation pressure. It is noteworthy
that, any decision towards subsidy removal would increase
prices significantly the prices which would in turn affect prilled
urea revenues.
 Abu Qir 2
Abu Qir 2 plant, which also operates 330 days per year, has a capacity of 792,000 mtpa of ammonium nitrate with
ammonia capacity standing at 330,000 mtpa. Ammonia is used for the production of ammonium nitrate with one
ton requiring 0.27 tons of ammonia.
OCTOBER , 2016
784
974
815
903
998
1,100
1,210
-
200
400
600
800
1,000
1,200
1,400
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
TOTAL PRILLED UREA REVENUES, EGP MN
TOTAL PRILLED UREA VOLUME, (000) TONS & UTILIZATION %
1,666 1,666 1,749 1,836 1,928 2,025 2,126
2,570 2,570 2,699 2,834
2,976
3,124
3,281
-
500
1,000
1,500
2,000
2,500
3,000
3,500
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Normal Zink
PRILLED UREA SELLING PRICES, EGP/MT
SOURCE: ABU QIR FERTILIZERS & PRIME RESEARCH
429
549
437
462
486
510 535
0%
20%
40%
60%
80%
100%
120%
-
100
200
300
400
500
600
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Prilled Urea Volume Prilled Urea utilization

13
We expect ammonium nitrate sales to grow at a 5-year CAGR
of 4.3% to reach EGP 929.4mn by FY-21. The company is ex-
pected to maintain an average utilization rate of 100-102%
throughout our forecast period maintaining the average sales-
to-production rate of 57%. In terms of prices, we expect a 5-
year CAGR of 5.0% with average selling price reaching EGP
2,023/mt in FY-21. This growth is also expected as a result of
inflation pressure which would lead the government to gradual
increase of its set prices.
 Abu Qir 3
Abu Qir 3 plant, which also operates 330 days per year, has a
capacity of 578,000 mtpa of granulated urea with ammonia
capacity of 438,000mtpa. Ammonia is used for the production
of granulated urea with one ton requiring 0.58 tons of ammo-
nia.
We expect granulated urea sales to grow at a 5-year CAGR of
2.5%. According to the company forecasts, utilization rate is
expected to drop in FY-17 to reach 94% due to the farmers’
financial inability to buy large amounts of fertilizers. We expect
volumes to recover to reach historical average of 105% by FY-
21 following the expected demand as well as consistency in
natural gas supply which would ensure stable supply levels.
OCTOBER , 2016
713
755 752
789
843
885
929
-
100
200
300
400
500
600
700
800
900
1,000
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
450
476
451 451
459 459 459
94%
96%
98%
100%
102%
104%
106%
435
440
445
450
455
460
465
470
475
480
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
AN Volume AN Utilization
1,585 1,585 1,665 1,748 1,835 1,927 2,023
-
500
1,000
1,500
2,000
2,500
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Ammonim Nitrate
TOTAL AMMONIUM NITRATE REVENUES, EGP MN
TOTAL AMMONIUM NITRATE VOLUM, (000) TONS & UTILIZATION AMMONIUM NITRATE SELLING PRICES, EGP/MT
827
1,027
858
955
1,053
1,105
1,160
-
200
400
600
800
1,000
1,200
1,400
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
TOTAL GRANULATED UREA REVENUES, EGP MN

14
 Other Products
NPK is used as a fertilizer, and contains three elements that
are of great importance to plants; namely, Nitrogen, Phospho-
rus, and Potassium. Nitrogen helps plants grow quickly, while
also increasing the production of seed and fruit, and bettering
the quality of leaf and forage crops. Phosphorus supports the
formation of oils, sugars, and starches. Potassium, the third
essential nutrient plants demand, assists in photosynthesis,
fruit quality, the building of protein, and the reduction of dis-
ease. Unfortunately, the company has stopped its operations
and sales of the NPK for the past years. Abu Qir has NPK ca-
pacity of 330,000 mtpa, which varies between urea and nitrate
NPK. While urea NPK is unsubsidized and is supplied freely to
the market, nitrate NPK is divided into unsubsidized and subsi-
dized volumes, which are sold to PBDAC.
OCTOBER , 2016
457
548
436
462 485 485 485
85%
90%
95%
100%
105%
110%
115%
-
100
200
300
400
500
600
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
G. Urea Volume G. Urea Utilization
1,701 1,701 1,786 1,875 1,969 2,068 2,171
2,568 2,568 2,696 2,831
2,972
3,121
3,277
-
500
1,000
1,500
2,000
2,500
3,000
3,500
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Special Magnesium
TOTAL GRANULATED UREA VOLUME, (000) TONS & UTILIZATION GRANULATED UREA SELLING PRICES, EGP/MT
520
422
390
479
532
590
652
-
100
200
300
400
500
600
700
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
TOTAL NPK, EGP MN
338
246 240
281
297
314 330
0%
20%
40%
60%
80%
100%
120%
-
50
100
150
200
250
300
350
400
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
NPK Volume NPK Utilization
TOTAL GRANULATED UREA VOLUME, (000) TONS & UTILIZATION GRANULATED UREA SELLING PRICES, EGP/MT
1434 1434 1506 1581 1660 1743 1831
2402 2402 2522 2648 2780
2919
3065
2495 2495 2619 2750
2888 3032 3184
0
500
1000
1500
2000
2500
3000
3500
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Nitrate Sub Nitrate Unsub Urea Unsub

15
We expect NPK sales to grow at a 5-year CAGR of 9.1%. Currently, subsidized NPK is sold at almost EGP 1,440/mt,
whereas unsubsidized (Nitrate & Urea) is sold at an average price of 2,400/mt. We expect prices to grow at a 5-
year CAGR to reach EGP 1,831/mt for subsidized and an average EGP 3,100/mt for unsubsidized NPK. In terms of
utilization we expect the company to increase gradually from the expected 75% (according to company forecasts)
to reach average historical utilization of 100% by FY-21.
 Export Products
Due to the restrictions imposed by the government on exporting urea, the company is only allowed to export
liquefied UAN and the remaining ammonia from the production of urea and nitrate. Abu Qir has a UAN capacity
of 660,000 mtpa. Historically, export revenues accounted for an average of 29% of total Abu Qir revenues, how-
ever, this dropped to 17% in FY-16 on the back of lower produced volumes. In FY-16 total export revenues stood
at USD 74.2mn ( EGP 659.1mn).
Liquefied UAN revenues in USD to grow at a 5-year CAGR of 7.3% to reach USD 71.4mn by FY-21. Meanwhile,
revenues in EGP are expected to grow at a 5-year CAGR of 10.9% to reach EGP 749mn on the back of the ex-
pected devaluation/floatation, which would have a positive effect on the company’s export sales. According to
Abu Qir expectations, UAN sales volume is expected to remain low at 300mt in FY-17. However, we expect sales
volume to increase to reach 425mt by FY-18 and maintain this level until FY-21. In terms of pricing, we expect
prices to increase in correlation with global urea prices by a 5-year CAGR of only 0.5% on the back of the further
expected drop in prices in FY-17 before the recovery starts in FY-18.
Furthermore, ammonia revenues in USD are expected to grow at a 5-year CAGR of 10.8%, with revenues trans-
lated in EGP are expected to grow at a 5-year CAGR of 14.5%. Despite the expected drop in global ammonia prices
on the back of the drop in crude oil prices ammonia revenues are expected to grow on the back of increased sold
volume, according to company forecast. Abu Qir expects ammonia volume sold to be 100mt in FY-17, which we
expect to be maintained throughout our forecast period due to its positive effect on the company’s total reve-
nues following the expected devaluation/floatation.
OCTOBER , 2016
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Export Revenues, USD mn
Liquefied UAN 79.0 50.2 46.4 67.4 68.9 70.5 71.4
Change% -36.9% -36.4% -7.5% 45.1% 2.3% 2.4% 1.2%
Ammonia 15.0 24.0 37.7 38.4 39.0 39.6 40.0
Change% -52.7% 59.9% 57.4% 1.6% 1.6% 1.7% 0.9%
Total Export Revenues 94.00 74.21 84.18 105.72 107.85 110.14 111.37
Change% -40.1% -21.0% 13.4% 25.6% 2.0% 2.1% 1.1%
Export Revenues, EGP mn
Liquefied UAN 603 446 502 775 775 758 750
Change% -32.7% -26.0% 12.5% 54.3% 0.0% -2.2% -1.1%
Ammonia 114 213 408 441 438 426 420
Change% -49.6% 86.1% 91.6% 8.1% -0.6% -2.8% -1.5%
Total Export Revenues 717.22 659.02 909.92 1,215.80 1,213.29 1,184.00 1,169.36
Change% -8.1% 38.1% 33.6% -0.2% -2.4% -1.2%
EXPORT REVENUE BREAKDOWN

16
Overall, we expect Abu Qir Fertilizers revenues to grow at a 5-year CAGR of 5.5%.
COGS
Natural gas is considered the main component of the Abu Qir’s COGS as it represents 50-60% of the company’s
total cash COGS. As a result, the expected devaluation/floatation is expected to increase Abu Qir’s COGS due to
the higher natural gas cost, which is valued at USD 4.5/mmbtu.
Ammonia: Ammonia cost is expected to increase at a 5-year CAGR of
14.2%, on the back of increase in both ammonia cost and volume pro-
duced. The expected increase in volume is backed by the increase in
ammonia export sales which would enable the company to benefit from
the EGP devaluation/floatation. Meanwhile, ammonia cost itself is set to
witness increase as it requires 32mmbtu of natural gas per ton. Hence,
the increase in natural gas cost would be transferred further to ammonia
cost.
OCTOBER , 2016
-
1,000
2,000
3,000
4,000
5,000
6,000
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
P. Urea A.Nitrate G. Urea NPK UAN Ammonia
TOTAL REVENUES & BREAKDOWN, EGP MN
NG/Ammonia NG/Urea Ammonia/Urea Ammonia/AN Sulfur/NPK Phosphate Rock/NPK
mmbtu/mt mmbtu/mt mt/mt mt/mt mt/mt mt/mt
Conversion 32 5.2 0.58 0.27 0.09 0.19
IMPORTANT RATIOS FOR ABUK RAW MATERIALS COST
SOURCE: YARA FERTILIZERS HANDBOOK
TOTAL NPK, EGP MN
TOTAL NPK, EGP MN
71
90
169
190 186
178 174
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
-
50
100
150
200
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Ammonia Growth %

Prilled Urea: Despite the decline in sales volume, a 5-year CAGR of 4.3%
is expected for prilled urea cost. This also comes on the back of in-
creased natural gas cost with prilled urea requiring 5.2mmbtu per ton of
urea. Furthermore, the increase in ammonia cost also affects prilled urea
total cost as one ton of urea requires 0.58 tons of ammonia.
Ammonium Nitrate: Cost for ammonium nitrate is expected to grow at a
5-year CAGR of 2.7% despite sales volume expected to drop slightly in FY
-17. This also comes on the back of increased cost of ammonia which is
required for ammonium nitrate production (0.27 tons of ammonia
needed per ton).
Granulated Urea: This is a very similar case to prilled urea cost. Despite
the significant volume drop in FY-17 we expect granulated urea cost to
grow at a 5-year CAGR of 2.4%. The increase in cost comes on the back
of increased natural gas prices (5.2mmbtu per ton of urea) and ammonia
cost (0.58 tons per ton of urea).
NPK: Cost for NPK is expected to grow at a 5-year CAGR of 5.7% on the
back of increased volumes and cost for its components. NPK requires
ammonia, sulfur and phosphate rock. Increased global sulfur prices,
which are expected recover starting FY-17 as well as the expected de-
valuation/floatation are expected to increase sulfur cost for NPK produc-
tion. Moreover, phosphate rock is acquired locally which hedges the
company against the devaluation effect on phosphate. However, we
expect its prices to grow at 5% annually due to the inflation effect as was
the case historically. Ammonia cost increase also factors in the increase
in total NPK cost.
Liquefied UAN: Cost is expected to increase at a 5-year CAGR of 3.6% on
the back of increased sales volume as well as ammonia cost.
OCTOBER , 2016
432
630
584
704 735 748 777
-20%
-10%
0%
10%
20%
30%
40%
50%
-
200
400
600
800
1,000
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Prilled Urea Growth %
TOTAL PRILLED UREA COST EGP MN
TOTAL AMMONIUM NITRATE COST, EGP MN
161
190 206
233 232
222 216
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
-
50
100
150
200
250
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Ammonium Nitrate Growth %
465
637
590
715 745 722 716
-10%
0%
10%
20%
30%
40%
-
100
200
300
400
500
600
700
800
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
G. Urea Growth %
TOTAL GRANULATED UREA COST, EGP MN
227
224 232 279 291 291 295
-10%
0%
10%
20%
30%
-
100
200
300
400
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
NPK Growth %
TOTAL NPK COST, EGP MN
189
227 250 274 278 272 271
-10%
-5%
0%
5%
10%
15%
20%
25%
-
50
100
150
200
250
300
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Liquidfied UAN Growth %
TOTAL LIQUIFIED UAN COST, EGP MN
SOURCE: PRIME RESEAERCH
17

Overall raw material cost, which represents an average 80%, is expected to grow at a 5-year CAGR of 3.9%.
Total COGS is expected to grow at 3.6% after the contribution of wages, manufacturing cost and other.
Gross Profit, EBITDA & Net Profit:
Abu Qir Fertilizer’s gross profit is expected to grow at a 5-year CAGR of 8.7% on the back of the expected in-
crease in revenues. Gross margin is expected to witness a compression starting FY-17 on the back of the increase
in natural gas price (the main COGS component) due to the expected devaluation/floatation. Gross margin drops
is expected to drop in FY-17 to 32% from 35% recorded in FY-16. 2HFY-17 is expected to witness the margin com-
pression with the devaluation expected to be in affect by then increasing in turn natural gas prices. We expect
gross margin to recover starting FY-19 to reach the historical levels following an expected appreciation in the
EGP , which is set to reduce natural gas cost in EGP.
Meanwhile, EBITDA is expected to grow at a 5-year CAGR of 10.4% following the growth in gross profit. EBITDA
margin is also expected to compress for the same reason as gross margin to reach 23% in FY-17. Recovery is also
expected for EBITDA margin as it is expected to reach the historical margins pre FY-16, where the devaluation
started to affect natural gas prices.
OCTOBER , 2016
-
500
1,000
1,500
2,000
2,500
3,000
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Ammonia Prilled Urea Ammonium Nitrate
G. Urea NPK Liquidfied UAN
-1000
0
1000
2000
3000
4000
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Raw Materials Wages Manufac.cost
Inventory change CO2&O2 sales Liquidfied UAN
TOTAL RAW MATERIALS COGS, EGP MN TOTAL COGS, EGP MN
1,380 1,395
1,182
1,460
1,663
1,900
2,116
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
-
500
1,000
1,500
2,000
2,500
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Gross Profit Gross Margin %
1,085 1,026
867
1,089 1,270
1,488
1,682
0%
5%
10%
15%
20%
25%
30%
35%
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
EBITDA EBITDA Margin %
GROSS PROFIT, EGP MN & GROSS MARGIN, % EBITDA, EGP MN & EBITDA MARGIN, %
18

Furthermore, net profit is expected to grow at a 5-year CAGR
of 5.4% with gross margin also set to drop in FY-17 to reach
21% (versus 26% in FY-16). However, net margin recovery is
also expected following gross and EBITDA margins to reach
25% by FY-21.
Debt
The company has recently acquired two loans almost worth USD 24mn for water treatment project to be re-used
“Zero liquid Discharge” divided into two loans with USD 8mn being a grant by the government . The first loan is
worth USD 12mn to be repaid over 60 monthly installments, which started in May 2016. The second loan is val-
ued in EGP and worth EGP 32.4mn to be repaid also over 60 monthly installments with the first installment to be
paid in October 2016. The company does not require any short term debt.
Working Capital
Abu Qir has followed a favorable working capital policy with the latest cash conversion cycle recording –10 days
on the back of higher payables DOH. We expect Abu Qir to maintain a favorable cash conversion cycle averaging
15 days. Receivables DOH is expected to average 30 days, while payables DOH is forecasted to average 148 days.
Meanwhile Inventory DOH is expected to average 130 days.
OCTOBER , 2016
903
1,020
783
886
985
1,153
1,303
0%
5%
10%
15%
20%
25%
30%
-
200
400
600
800
1,000
1,200
1,400
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Net Profit Net Margin
NET PROFIT, EGP MN & NET MARGIN, %
19
21
-10
15 15 15 15 15
-20
0
20
40
60
80
100
120
140
160
FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Payables DOH Receivables DOH Inventory DOH CCC
WORKING CAPITAL

20
OCTOBER , 2016
 Financial Statements … Historical & Forecast
Income Statement Brief Hist. Forecast
In EGP Mn FY-16 FY-17 FY-18 FY-19
Revenues 3,936 3,691 4,363 4,663
Change 11% -6% 18% 7%
COGS 2,540 2,509 2,903 3,000
Change 17% -1% 16% 3%
Gross Profit 1,395 1,182 1,460 1,663
EBITDA 1,026 867 1,089 1,270
EBITDA Margin 26% 23% 25% 27%
Net Income After MI 1,020 783 886 985
NPM 26% 21% 20% 21%
Balance Sheet Brief Hist. Forecast
In EGP Mn FY-16 FY-17 FY-18 FY-19
Cash 2,453 2,177 2,105 2,381
Net Receivables 287 303 359 383
Net Inventory 706 912 1,055 1,091
Total Current Assets 3,447 3,392 3,519 3,854
Net PPE 489 725 678 659
Projects Under Construction 256 0 0 0
Total Long Term Assets 1,391 1,370 1,323 1,304
Total Assets 4,837 4,763 4,842 5,158
Liabilities
CPLTD 29 32 35 34
Accounts Payable 960 1,017 1,177 1,216
Total Current Liabilities 1,442 1,087 1,212 1,250
LTD 81 93 67 32
Total Long Term Liabilities 371 354 342 321
Total Liabilities 1,813 1,441 1,553 1,571
Equity
Total Equity 3,024 3,322 3,289 3,587
Financial Ratios Hist. Forecast
FY-16 FY-17 FY-18 FY-19
GPM 35% 32% 33% 36%
EBITDA Margin 26% 23% 25% 27%
NPM 26% 21% 20% 21%
EPS 12.1 9.3 10.5 11.7
P/E 8.4x 11.0x 9.7x 8.7x
EV/EBITDA 6.3 7.7 6.1 5.0
ROA 21.5% 16.2% 18.6% 20.3%
ROE 32.7% 24.1% 24.9% 27.8%
Total Assets Turnover 0.8 0.8 0.9 0.9
BV/Share 35.9 39.5 39.1 42.6

21
OCTOBER , 2016

22
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Amr Saber Team Head – Institutions Desk  +202 3300 5659  asaber@egy.primegroup.org
Amr Alaa, CFTe Manager  +202 3300 5609  aalaa@egy.primegroup.org
Mohamed Elmetwaly Manager  +202 3300 5610  melmetwaly@egy.primegroup.org
Emad Elsafoury Manager  +202 3300 5624  eelsafoury@egy.primegroup.org
OCTOBER , 2016

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