This strategic audit document provides an overview of the Sewedy Electric Wind Group (SWEG) including its corporate structure, vision, mission, strengths, weaknesses, opportunities, threats, and recommendations. SWEG is the first wind energy components manufacturer in Egypt and the Middle East with a strong financial position backed by its parent company El Sewedy Group. The document analyzes SWEG's internal and external environments and provides recommendations to modify its organization structure to support scalability, ensure corporate governance is applied, focus on development in Egypt and the Middle East, focus on innovation management, and plan using a twofold gaze of perception and sightedness.

1. Strategic Audit Ahmed Moussa Aly El Sherei Mohamed Awad Mohamed ElSayed Rehab Wahsh

2. OUTLINE

3. CORPORATE OVERVIEW

4. The group Established in 1984 Headquarters: Cairo, Egypt (SWDY.EY) Publicly Traded Since 2006 Leading integrated cables & electrical products manufacturer in the Middle East 23 Industrial facilities in 12 countries Exporting to more than 110 countries

5. VISION To be one of the top five brand names worldwide in energy solutions and its related services

6. MISSION Manufacturing & marketing safe energy products in order to exceed market expectations and positively contribute in developing our society & environment.

7. VALUES CULTURE Innovation during Recession

8. DIVERSIFICATION STRATEGY From Constrained to Linked

9. Expansion & DiversificationTimeline April 2010 - Acquired a majority stake in 3W Networks, a technology based communications contractor and systems integrator.

10. Diversification - Integrated Energy Solutions

11. Geographic Presence

12. Strategic policies

13. corporate structure

14. Ownership & Board of Directors Ownership Structure

15. BOD Internal Audit CEO Ahmed EL Sewedy Cables Ahmed EL Sewedy CFO Wael Khalil Transformers Ashraf EL Aseal CIO Mohamed Radwan Meters Dieter Brunner Treasury & Business Development Hazem El Haddad Turnkey Wael Hamdy IT HalaSakr Wind Hassan Abdel Salam Others Elec Products Mohamed El Sewedy

16. CORPORATE PERFORMANCE Analyst & Investor Reports

17. 100 Emerging Multinationals

18. First Half 2010

19. Segments & Regions Contribution

20. External environment

21. General environment

22. Political

23. Economical (Global) Economically 2010 is a year of transition from economic recession to recovery The oil barrel price is expected to reach $140 again after 5 years and to reach $200 in 2020 High initial investment costs 1.3 – 1.5 M Euro/MW for wind farm Energy Comparison1 ton of coal = 6,182 KWH1 barrel of oil = 1,699 KWH1 cubic foot of gas = 0.3 KWH Energy Costs1 ton of coal costs $36 = $0.006 per KWH1 barrel of oil costs $70 = $0.05 per KWH1 cubic foot of gas $0.008 = $0.03 per KWH

24. Economical (Egypt)

25. Social (Global)

26. Social (Egypt)

27. Social Electric power consumption (kWh per capita)

28. technological

29. Environmental

30. Legal (Egypt) It has not been licensed to either generate or distribute the electricity by private sector but it is going to be permitted Egypt enacted the anti-trust law

31. Energy Policy in Egypt

32. Industry analysis

33. Industry definition

35. Wind power (Grid Connected)

36. Biomass (very limited scale)

38. Provides institutional frame work for implementing RE

39. Act to introduce & promote RE technologies on a commercial scale

41. substitutes U.S. Average Levelized Costs (2008 $/megawatthour) for Plants Entering Service in 2016

42. competitor analysis

44. new start-ups licensing proven technology from other regions.The industry is becoming ever more globalised. Wind turbine sales and supply chain strategies will take on a more international dimension as volumes increase. Source: http://www.wind-energy-the-facts.org/en/part-4-industry--markets/chapter-3-industry-actors-and-investment-trends/

45. Competitive landscape

46. Competitive landscape

47. domestic Competitive environment Track of MW Wind installed in Egypt Zafarana MW Breakdown by Company Company Breakdown of MW Installed

48. Competitive intelligence

49. Source: Vestas Annual Report 2009

50. Source: Gamesa Annual Report 2009

51. internal environment

52. SWEG OVERVIEW

53. Wind farm development LOW capital intensity (3 to 4 years) HIGH capital intensity (1 year)

54. Structure

55. management

56. VISION Take responsibility for our energy resources and the environment we live in through availing and exploiting the power of wind as a clean energy source wherever we are present.

57. MISSION Help our customers fully realize their future wind energy potential…today! We will grow to lead the way for rapid wind power developmentlocally and regionally.

58. OBJECTIVES Grow from our existing local platform to be a leader in wind power development, and a hub of expertisein the region within 3-5 years (35-40% Domestic Market Share) Start the business taking advantage of our strengths with respect to the opportunities in the domestic market and the region we operate in

59. GOAL Reduce Demand/Supply Gap in the Region by offering our customers high quality products (e.g. turbines), specialized services (e.g. contracting), complete solutions (e.g. control/switchgear) for wind applications

60. Commitment to Priority Stakeholders Stakeholders

61. SWEG Resources

63. analysis opportunities threats weaknesses strengths

64. strengths First Wind Energy components manufacturer in Egypt and MEA Strong Financial position backed by El Sewedy Group Experience inmanufacturing of electrical energy components Fully Integrated manufacturer and supplier of Wind Energy components Offers EPC solutions Lower cost & development risk

66. Strategic alliances with technology leaders

67. MTorres for turbines manufacturing

68. SIAG for towers manufacturing

69. Existence of Regional and International Operations

71. WEAKNESSES Postponed establishment of Turbines plant in Egypt

72. WEAKNESSES Delay in revenue generation due to lack of finance for wind farm projects.

73. opportunities Global energy security concern: Depleting conventional resources Global warming imposes new requirements and regulations for all energy industry actors

74. opportunities Wind power is the fastest growing energy technology needed to achieve sustainable development worldwide. MEA Regional wind projects potential Electrical interconnections existing in the region

76. THREATS (Global) Reduction in conventional energy costs ($140/ barrel) Increased competition from major suppliers and potential entrants

78. Political instability.

79. Nuclear energy substitution.

80. The new electricity law does not include feed-in tariffs.

81. Subsidies on conventional resources.

82. Competition from the government (NREA) with IPPs

83. Bird Migration routes in Egypt.

85. alternatives

86. Start: Strategic Decisions

88. recommendation

90. Ensure Corporate Governance is applied

91. Focus on Developmentin Egypt and Middle East

92. Focus on Innovation Management