Egyptian Strategy Towards Electric Vehicles About the Egyptian Ministry of Public Business Sector Companies Under Management

8 Holding Companies

118 Subsidiaries

299 Joint Ventures About the Egyptian Ministry of Public Business Sector Sectors of Activity

Chemical Industries : Fertilizers, Tobacco, Tires, Shoes, Springs, Salt, Paper, Manganese Metallurgical Industries : Steel, Aluminum, Cars and Trucks and Busses, Glass, and Porcelain; Mining Pharmaceuticals Production, Packaging, Trading, and Distribution Cotton : Trading, Ginning, Spinning, Weaving, Dyeing and Finishing

Touristic Services, Hospitality & Hotels Development, and Retail Stores Real Estate, Construction, Agriculture, and Cattle Raising and Slaughtering Containers Handling, Shipping, Warehousing, Passenger and Goods Intra City Transport, and Foreign Trade Business Development Services Insurance, Re-insurance, Real Estate Assets Management, and Strategic Investments About the Egyptian Ministry of Public Business Sector Companies` Structure About the Egyptian Ministry of Public Business Sector The Reform Program

In June 2018, the Ministry of State Owned Enterprises of Egypt has embarked on a reform program for the entire 8 holdings and 118 subsidiaries.

The beginning was a SWOT analysis done for companies and discussed in lengthy meetings with companies` boards, with the objective of setting priority sectors and companies for reform, to stop the drainage of public money caused by major loss making companies, some of which already reaching negative net worth.

Those included 24 companies accounting for more than 90% of the entire sector losses. Reform plans for around 40 companies have been designed, and are under implementation. Reforms are taking place in three main areas:

1. Restructuring companies and rehabilitation of factories 2. Availing resources to finance reform, through the utilization of unutilized assets 3. Regulatory, managerial, governance, capacity building and business reforms About the Egyptian Ministry of Public Business Sector The Reform Program

Revision of Charter of Digital Transformation and Centralized Marketing Accounts & Criteria for automation of business and sales departments Cost Based Pricing processes (ERP) in Holding Companies

Reviewing Wage Tailored training Developing Reviewing wage Performance Structures & programs to raise Companies` structure for Evaluation for Standardizing labor human resources organizational Executives Executives skills Structures Regulations

Efficient use Determining the for Assets Laws Amendments to Law 203 and Partnership with needed & Regulations the Private Sector Requirements for Resources Restructuring Reviewing basics for Reviewing basis for Changing land selecting and Debt settlements Database of Remuneration in use in rewarding Board of and financing Unutilized Companies (Profits Residential Directors in Joint development Assets Share) to enhance Areas Ventures motivation www.mih.eg 5, Tolombat St., Garden City, Cairo, Egypt Tel: (202) 27954844 - 27954833 Fax: (202) 27957221 - 27962079 • AL- Nasr automotive company Incorporated on 824k m2 Inauguration the automotive industry in Egypt in 1960. it Introduced commercial vehicles, buses and tractors shortly after passenger cars production commenced. • In 1999 the company was split segregating the commercial vehicles operation under a new entity Engineering Automotive Company EAMCO, and the rest of operations under NASCO.

8 Al-Nasr Automotive Manufacture CO. (NASCO)

9 Al-Nasr Automotive Manufacture CO. (NASCO) Overview o Al-Nasr Automotive Manufacture Company specialized in the production & sale of passengers cars and manufacture of spare parts and manufactured many components like sheet metal forming pressed parts, drivetrain parts, gearboxes, seats and trim parts, etc.. o Operated under different license agreements with OEMs like Fiat, and Tofas and manufacture assembly for others customer.

10 Al-Nasr Automotive Manufacture CO. (NASCO) Facts & figures o Paid in capital of EGP350 Mn, fully owned by the Metallurgical Industries Holding (Ministry of Public Business Sector) o Land: 482,000 m2 o Built up area: 155,301 m2 o Work force: 118 (reached 12,000) o Location: Helwan 24 km south east of Cairo

11 Al-Nasr Automotive Manufacture CO. (NASCO) Premises

12 Al-Nasr Automotive Manufacture CO. (NASCO)

Premises

: Tool Room Room Tool :

5 Factory No. Factory

13 Al-Nasr Automotive Manufacture CO. (NASCO) Premises

Factory No.6: Parts Machining Factory Covered area: 32,813 m2

Machines mechanical parts related to gearboxes, axels, engines, etc.

14 Al-Nasr Automotive Manufacture CO. (NASCO) Premises

Covered area: 14,733 m2 Factory No.7: Pressing Factory Presses automotive body panels, differential casings, other non- automotive parts (whitegoods bodies) Press up to: 1000 tons

15 Al-Nasr Automotive Manufacture CO. (NASCO) Product Lineup historical amounts

Nasr Nasr Nasr 1500 Nasr 4X4 1100 1300 & 2300

12,094 6,270 2,096 515

Yearly Production Product Max. Capacity 16 Al-Nasr Automotive Manufacture CO. (NASCO) Product Lineup historical amounts

Nasr Nasr Nasr Nasr 125 131 133 128

15,553 10,783 28,244 142,991

Yearly Production Product Max. Capacity

17 Al-Nasr Automotive Manufacture CO. (NASCO) Product Lineup historical amounts

Nasr Nasr Sahin Nasr Nasr Tempra & Dogan 126 Florida

2,352 80,240 3,261 342

Total amount: 304,741

Current Capacity for production lines on 3 shifts basis 36 K/year, expandable up to 72 K/year Al-Nasr Automotive Manufacture CO. (NASCO) Ghamra Service Center o NASCO is offering Repairing and maintenance services for all types of cars including the reforming processes in Ghamra with covered area 10.877 M2

19 Engineering Automotive Manufacturing CO. (EAMCO)

20 Engineering Automotive Manufacturing CO. (EAMCO) Overview o EAMCO was founded in 2000 on activity of Lorry, buses, diesel engines and agricultural tractors manufacturing. o EAMCO is specialized also in the production and sale of spare parts and Vehicle Service maintenance.

21 Engineering Automotive Manufacturing CO. (EAMCO) Facts & figures

o Paid in capital of EGP 64,5 Mn, fully owned by the Metallurgical Industries Holding (Ministry of Public Business Sector) o Land: 342,000 m2 o Built up area: 295 m2 o Work force: 1257 o Location: wadi Hof – Helwan – Cairo

22 Engineering Automotive Manufacturing CO. (EAMCO) Premises

Assembling of different types of light, medium and heavy trucks, buses Chassis and agricultural tractors. Factory No.1: Trucks & Agri. Tractors Factory

Covered area: 49k M2

23 Engineering Automotive Manufacturing CO. (EAMCO) Premises

Production , assembling and testing of air-cooled engines for lorries and buses Factory No.2: Engines Factory

Covered area: 52k M2

24 Engineering Automotive Manufacturing CO. (EAMCO) Premises

Build of different types of buses bodies such as: tourist, heavy, inter city, within cities buses, mini-buses, midi-buses Factory No.3: and microbus Buses Factory

Covered area: 90k M2

25 Engineering Automotive Manufacturing CO. (EAMCO) Product Lineup current capacity

Bus capacity 43-47, with 3 shifts 900 per year.

Mini Bus capacity 29, with 3 shifts 1800 per year. All Buses

Midi Bus capacity 33, with 3 shifts 1800 per year. 4500

Yearly Production Product Max. Capacity

26 Engineering Automotive Manufacturing CO. (EAMCO) Product Lineup current capacity

Heavy trucks, with 3 shifts 900 per year.

medium trucks, with 3 shifts 1800 per year.

Agricultur Light trucks, with 3 shifts 1800 per year. al Trucks Tractors pickup trucks, with 3 shifts 3600 per year.

3600 8100 Agricultural tractors , with 3 shifts 3600 per year.

Yearly Production Product Max. Capacity

27 Engineering Automotive Manufacturing CO. (EAMCO) Service Centers (Helwan branch)

o EAMCO is offering Repairing and maintenance services for all types of cars, buses and trucks including the reforming processes in Helwan and Alexandria Branches.

First Helwan branch

28 Engineering Automotive Manufacturing CO. (EAMCO) Service Centers (Alexandria branch)

o Second Alexandria Branch

29 Engineering Automotive Manufacturing CO. (EAMCO) Alexandria branch Services

Upholstery Works AC Works

The Paint Electricity Works Works

Mechanics Overhauls Works engines 30 Service centers and Showrooms

The metallurgical industries holding (MIH), its Holding sister companies and their subsidiaries own various service centres and showrooms in Cairo and Alexandria governorates .

Cairo Alex

Service Service Show rooms Show rooms centres centres 22 19 6 5

31 Service centers and Showrooms

32 Service centers and Showrooms

33 ALKAN OVERVIEW

34 ALKAN OVERVIEW

ALKAN holding was founded in 1974. Growing since then to become one of Egypt’s leading business corporation ALKAN holding owns several subsidiaries aggressively engaged in multiple business fields.

FIELDS OF OPERATION → ALKAN - Aviation HOLDING - Automotive - Construction - Earth Moving - Engineering CIT REAL ESTATE MANUFACTURING TOURSIM & TRADING - Geographic Information System OPERATIONS OPERATIONS OPERATIONS AVIATION OPERATIONS - Information Technology - Marine - Material handling ALKAN ALKAN ALKAN - Medical ALKAN AIR EIM GROUP - Power TELECOM REALESTATE TEXTILE - Real Estate development - Spinning ALKAN CITADEL - Telecom & Network NETWORK PLAZA - Travel & Tourism ESRI NORTHEAST AFRICA

35 ALKAN HOLDING PARTNERS

36 ALKAN OVERVIEW 16 COUNTRIES SUBSIDIRIES

ALKAN HOLDING

ALKAN ALKAN ALKAN ALKAN & ALKAN SIERRA ALGERIA CIT LIBYA IRAQ UAE LEONE

ALKAN M. ALKAN ALKAN ALKAN ALKAN NOSSEIR OMAN GHANA KENYA SUDAN (SAUDI)

ALKAN ALKAN ALKAN ALKAN ALKAN BURKINA TANZANIA NIGER SENEGAL JORDAN FASSO

EII NIGERIA

37 EIM OVERVIEW

EIM Group was established in 1. Grand Cairo : 8 Branches + 1979 (HQ) 2. Alexandria : (5 Branches) 3. Mansoura It hosts more than 2,500 4. Wadi El Natroon 5. Suez employees 6. Arish 7. Sharm El-Sheikh (2 Branches) EIM exists in 16 8. Hurghada 9. Marsa Allam Governorates with more 10. El Menya than 28 locations around 11. Asyut the nation (517,000 sqm 12. Sohag 13. Luxor of work space) 14. Edfo With its exceptional 15. Aswan nationwide Geographical 16. South Valley (Toshka) penetration EIM has provided one of the fundamental tools of market penetration to all it’s brands

38 EIM GROUP SUBSIDARIES

EIM GROUP

EIM CO. EIT

EII ALKAN MEDICAL

ALKAN TRAVEL AIM JORDAN

39 EIM GROUP BUSINESS DIVERSITY

Automotive: Power Systems: Materials Handling: -Cummins “Power Generation (CPG)” -TCM -Renault Egypt - EIM -Cummins Engines -BP Battioni & Pagani -KIA Motors – EIT -Renewable Energy -Renault Jordan - AIM

Marine & Light Vehicles: Construction Machinery: EIM Turbo & Oil Supply: -Komatsu -Garrett -Yamaha -Bomag -Cummins Turbo Technologies (Holset) -Doosan -Dowin -BorgWarner Turbo Systems -Twin Disc -Mustang -Cummins Filtration (Fleet guard) -Cummins Onan -EIM-Shell Oil Commercial Vehicles ALKAN Medical: Travel & Tourism -Hyundai Commercial Vehicles -GE -ALKAN Travel -Yutong Busses -Xerox -Stryker -Sirona

40 EIM GROUP PARTNERS

41 EIM GROUP VISION, MISSION & VALUES

VISION Our vision is to be the first and best choice for consumers and a benchmark in customer’s satisfaction.

MISSION Customer satisfaction is our primary commercial principle we obtain it through providing and developing “integrated solutions”. “operational efficiency”, And “delivering the highest levels of performance excellence”.

EIM is developing sophisticated, efficient distribution and servicing networks. Moreover, delivering solutions that fits and suits our client’s requirements at a commercially competitive and financially viable price. Thus, expanding its market, and securing the desired return on investment for its shareholders and principles.

VALUES We are committed to invest and develop our employees as they are the company’s most valuable resource, our clients satisfaction & Our Corporate Social Responsibility (CSR) role towards our community & country development.

42 EIM AUTOMOTIVE SALES PERFORMANCE

43 EXECUTIVE SUMMARY

EIM GROUP:

• EIM was assigned as Renault official importer in Egypt since 1979; Renault is the No. 1 European brand in Egypt Offering: ✓ Range of 7 models ✓ Competitive Prices ✓ A network of 68 Outlets nationwide ✓ Premium Service • EIT was assigned as KIA official importer in Egypt since 2006; KIA is the No. 1 selling brand in Egypt Offering: ✓ Range of 5 models ✓ Competitive Prices ✓ A network exceeding 53 Outlets nationwide ✓ Premium Service Sales:

• FY18 RENAULT sales was 18,400 units and MS is 12.6% +3.1 pts Vs. FY17 9.5%, mainly coming from (Kadjar & Duster models) overachievement

• FY18 KIA sales was 9,398 units and MS is 6.4% +0.6pts Vs. FY17 5.8%, mainly coming from (Cerato model) overachievement Products:

• Heavily depended on Duster, Logan and Sandero/Stepway which represent xx% of total sales in FY18. → Kadjar is a key model as a Hero car for Renault and SUV segment.

• Satisfying market demand by introducing lineup in each segment starting with Pegas (B-Sedan) till Sorento (D-SUV) and Carnival (D-MPV)

44 44 RENAULT SALES PERFORMANCE – 9 YEARS

Models 2011 2012 2013 2014 2015 2016 2017 2018 Total

LOGAN 4171 6004 4017 5619 10665 11472 2281 4093 48322

SANDERO 727 1565 1940 571 852 1822 498 486 8461

STEPWAY 204 1126 802 1633 4123 5361 1153 3136 17538 MEGANE PLAY 308 100 408

MEGANE GC 60 617 936 1613

MEGANE HB 121 45 48 161 38 128 58 599

CAPTUR 4 24 814 347 843 2032

DUSTER 800 563 235 852 1810 1653 2265 4007 12185 KADJAR 1 973 2077 4838 7889

MCV 503 433 91 24 79 47 1177

FLUENCE 1717 1609 1089 2644 2139 1367 10565 ESPACE 4 4

TWIZZY 2 2

DOKKER 103 103

SCALA 698 698 LODGY 1 187 134 3 325

OTHERS 58 58 Total 8,999 11,345 8,222 11,508 20,002 23,900 9,500 18,503 45 KIA SALES PERFORMANCE – 9 YEARS

Models 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total

PICANTO 2,379 1,195 2,794 2,150 1,685 1,151 765 435 60 12,614

RIO 1,609 242 3,163 1,955 3,640 2,294 935 265 219 14,322

CERATO 9,286 3,655 5,213 2,418 3,578 3,822 3,665 3,085 3,716 38,438

OPTIMA 1 7 9 3 48 28 96

Cadenza 47 18 1 66

K900 8 1 1 10

Ceed 652 681 49 350 1,732

Sportage 124 808 3,327 3,125 4,456 4,379 4,043 1,557 4,678 26,497

Sorento 107 33 25 11 31 19 6 4 5 241

Mohave 92 47 139

Soul 410 356 492 173 424 688 815 125 120 3,603

Carens 8063 5045 5236 2680 2521 1698 900 204 191 26,538

Carnival 53 22 46 8 27 31 11 21 30 249

Total 22,171 11,428 20,305 12,532 16,410 14,734 11,821 5,746 9,398 46 TOTAL NETWORK OUTLETS & FACILITIES

3S Showroo Service Parts Total Facilities ms Centers Outlets

EIT 4 12 3 - 19 Ain Sokhna

Dealer 2 13 26 6 47

Total 6 25 29 6 66

47 August 2019 Egypt at a glance

2015/2016 2016/2017 2017/2018 2018/2019

Real GDP growth rate 4.3% 4.2% 5.3% 5.6%

Inflation rate (CPI urban) 10.9% (Jan. 2016) 28.1% (Jan. 2017) 17.1% (Jan. 2018) 8.7 % (July 2019)

Population 89 Mn (Jul 2015) 91 Mn (Jul 2016) 97.6Mn (Sep. 2018) 99.079 Mn (Aug.2019)

Net FDI (USD bn) 6.9 7.9 7.7 4.6 (Jul.-Mar.2018/19)

International Reserves (USD bn) 17.5 (Jun. 2015) 31.3 (Jun. 2016) 44.5 (Oct. 2018) 44.9 (July 2019)

Unemployment Rate (%) 12.5 (2016) 11.8 (2017) 8.9 (2018) 8.1 (Q1 2019)

Doing Business Rank 122 (2017) 128 (2018) 120 (2019) 120 (2019)

Global Competitiveness 115 (2016) 100 (2017) 94 (2018) 94 (2018) Report Rank

2 WhyEgypt?

▪ Central location & proximity to the global market ▪ Access to a large consumer base in Egypt and beyond

▪ Large pool of trained and skilled labor ▪ Revamped infrastructure base

▪ Abundance in natural resources Location ▪ Competitive tax rates ▪ Gate to Africa & the Middle East ▪ Growing economy ▪ Center of the World

5 0 WhyEgypt?

▪ Central location & proximity to the global market ▪ Access to a large consumer base in Egypt and beyond

▪ Large pool of trained and skilled labor ▪ Revamped infrastructure base

▪ Abundance in natural resources Population ▪ Competitive tax rates 99.1million ▪ Growing economy

5 1 WhyEgypt?

▪ Central location & proximity to the global market ▪ Access to a large consumer base in Egypt and beyond

▪ Large pool of trained and skilled labor ▪ Revamped infrastructure base

▪ Abundance in natural resources FTAs ▪ Competitive tax rates ▪ COMESA ▪ Aghadir ▪ Growing economy ▪ GAFTA ▪ EFTA ▪ EU Egypt ▪ Egypt Mercosur ▪ QIZ ▪ Egypt Turkey FTA 6 WhyEgypt?

▪ Central location & proximity to the global market ▪ Access to a large consumer base in Egypt and beyond

▪ Large pool of trained and skilled labor ▪ Revamped infrastructure base

▪ Abundance in natural resources Labor Force ▪ Competitive tax rates ▪ Over 29million ▪ Growing economy ▪ 60% under 30

▪ Competitive wages 7 WhyEgypt?

▪ Central location & proximity to the global market ▪ Access to a large consumer base in Egypt and beyond

▪ Large pool of trained and skilled labor ▪ Revamped infrastructure base

▪ Abundance in natural resources Transportation

▪ Competitive tax rates ▪ 20 Airports ▪ Growing economy ▪ 191 Railway stations ▪ 15 Seaports & SuezCanal

▪ Subway network 8 WhyEgypt?

▪ Central location & proximity to the global market ▪ Access to a large consumer base in Egypt and beyond

▪ Large pool of trained and skilled labor ▪ Revamped infrastructure base

▪ Abundance in natural resources Transportation ▪ Competitive tax rates ▪ 174.6 km Road Network ▪ Growing economy ▪ CommunicationNetworks

9 WhyEgypt?

▪ Central location & proximity to the global market ▪ Access to a large consumer base in Egypt and beyond

▪ Large pool of trained and skilled labor ▪ Revamped infrastructure base

▪ Abundance in natural resources ▪ Competitive tax rates Mineral & Renewable ▪ Growing economy Resources

56 WhyEgypt?

▪ Central location & proximity to the global market ▪ Access to a large consumer base in Egypt and beyond

▪ Large pool of trained and skilled labor ▪ Revamped infrastructure base

▪ Abundance in natural resources Income Tax ▪ Competitive tax rates %22.5 ▪ Growing economy

57 WhyEgypt?

▪ Central location & proximity to the global market ▪ Access to a large consumer base in Egypt and beyond

▪ Large pool of trained and skilled labor ▪ Revamped infrastructure base

▪ Abundance in natural resources ▪ Competitive tax rates ▪ Economic Indicators ▪ Growing economy ▪ International Ranking

58 EconomicIndicators

GDP Growth Rate FDI in Egypt

billion USD

Source: CBE Source: Ministry of Planning Sovereign CreditRating

Revised Egypt’s Sovereign Credit outlook being “Positive” in Nov. 2016 & “B”(Stable) in May 2018

Last rated Egypt’s Sovereign Credit outlook as “B2” (Stable) in April 2019

Last rated Egypt’s Sovereign Creditoutlook as “B+” (Positive) in May 2019

15 Investment ClimateReforms

Reforms are underpinned by actions aimed at improving the legislative framework of investment… Legal / Regulatory Reforms

▪ The legislative reforms are pivotal in any economy reform process, in order to complement the macro-economic ongoing reforms. Hence, full-fledged Legislative Reform plan is taking place, of which some laws are amended and some were newly decreed such as : - New Investment Law. - Insolvency & Debt restructuring law. - Sole Partnership Companies. - Commercial Registry Law. - Commercial Companies Law. - Mortgage Law and Capital Market's Law. - Bankruptcy law. Highlight of the new Investment Law

Investment Protection Guarantees

Tax and Non-Tax Incentives

Facilitated Licensing Procedures

Transparent Rules for Allocation of State- owned Land

Out-of-courts Forums to Settle Investor- state Disputes

62 InvestmentIncentives

General Incentives ▪ All investment projects, except free zone projects, shall enjoy the following general incentives for a period of • 5 years: ▪ Exemption from Stamp Duty Tax and Notary Public Fees on: - Registration of the constitutional documents of a company. - Loan agreements. - Pledge contracts. ▪ Exemption from Land RegistrationFees. ▪ Unified Flat Customs Duty Rate fixed of 2% on equipment and machines required for setup. Special Incentives

▪ The new investment projects and the expansions for companies established according to the investment law, shall be allowed to a special incentive represented in a tax redemption according to the following criteria;

63 Investment Incentives –Cont’ Reduction shallnot exceed 80% of the paid-up capital at ZoneA- TaxDeductionof 50% the project start date. ▪ projects located in the areas that are much in need for development .(upperEgypt, Red Sea , golden triangle, Sinai, New valley ,& SEZONE) ▪ The 50% shall be calculated of the Investment cost of theproject. Incentive period will not exceed 7 ▪ The 50% will be deducted from the taxable net profit Over 7years. years from project start date.

ZoneB- TaxDeductionof 30% Establish a new company during the 3 years following the ▪ Projects located in the rest of the country. executive regulation.. ▪ 30% of the investment cost of the project. ,Shall granted for the following activities: Labor-intensive projects. - SMEs Not to use the assets - Renewable energy projects. of any existing company. - Tourism projects as specified by the SIC. - Electricity projects specified by the SIC. - Vehicle and related feeders industry projects. - Wood, furniture, printing, packaging and chemical industries. - Antibiotic, cancer treatment and cosmetics. Keeping regular - Food and agricultural products as well as agricultural wasteprojects. and - Engineering, mineral, textile and leather projects. accurate books.

64 Streamlining InvestmentProcedures

▪ Special ‘Investor State ▪ Private sector service ▪ Strategic projects ▪ 120 days from Center’ in GAFI to providers licensed by and PPP project in receiving function as a one-stop- GAFI to assist infrastructure, liquidation request. shop. investors to review renewable energy, ▪ Establish/liquidate and apply for transportation or be ▪ Concerned companies. project’s licenses ports can and authorities are and permits. established required to advise of ▪ Ratify BOD, OGM operated by virtue and EGM ▪ It will issue any liabilities which

Center of a single license Offices

certificate that License are due. ▪ Issue all kind of investor is to be issued by the licenses Capital Cabinet. ▪ If no such financially and Procedures increase/reduction. notification has

Service technically Golden ▪ Representatives from compliant. Exit been received then relevant authorities ▪ GAFI will accept the the company is will exist in this Accreditation certificate and issue discharged of any Investor Investor center, and will have required license liabilities powers to issue within 60 days. approvals. Facilitating ▪ Non-reply will be ▪ The Law provides for considered an the automation of such implied approval. services ASAP.

65 Investors ServiceCenter As part of Egypt's Investment Law's new reformist measures to cut red tape and improve the ease of doing business. The Investor Service Center operates as a resource hub that offers a complete package of consultations, advice and information about available investment opportunities in Egypt.

ISC services include: ¬ Company Establishment Services: The ISC provides services related to establishing companies and their branches, approving the minutes of their boards of directors and their general assemblies, issuing approvals and permits, and allocating the necessary real estate for the establishment of projects.

¬ Government Relations: The ISC will act as a liaison between entrepreneurs and governmental entities providing resources, advice and procedural assistance to start-ups.

¬ Legal Services: The ISC provides legal advice and notary services for investors.

¬ MIIC and GAFI have launched e-establishment, e-signature and call center to facilitate establishing companies; i.e., companies to be completely established online.

¬ There are 8 branches in Cairo, Alexandria, Asiut, Ismailia, 10th of Ramadan, 6th of October, Sohag and Gamasa.

66 InvestmentRegimes InvestmentLandscape The new Law grants the establishment of investment zones, private free zones, as well as technologyand specialized economic zones by Cabinet decree.

Free Zones Investment Zones Technology Zones Special Economic Zones ▪ No taxes and customs ▪ Investment clusters in ▪ Technological zones can be ▪ The Suez Canal Economic ▪ No import / export regulations. different fields and sectors, created for specialized Zone (SE Zone) is a world- where investors are granted activities in the fields of class free zone and trade ▪ All equipment, machinery and services to serve the local industry, logistics, and hub. essential means of transport market , where GAFI shall information and necessary for business ▪ It is considered as zone A be responsible to obtain all communications. in the investment law operations are exempted from licenses , permits and all customs, import duties and ▪ Free customs. which enjoys 50% tax approvals on behalf of the deduction . sales taxes. investors. ▪ Free Customs. KeySectors

Agribusiness Engineering HealthCare Logistics Mining ICT Petrochemicals and Electronics

Pharmaceuticals Real Estate & Retail Textile Tourism Renewable Automotive Construction Energy

68 Vote of Confidence

69 InvestmentMap

http://www.investinegypt.gov.eg/English/Pages/explore.aspx?map=true ▪ 360-degree view on the investment climate and investment opportunities in Egypt ▪ Present public and private investment opportunities in Egypt ▪ Present overall investment climate in Egypt ▪ Present existing investments and highlight success stories ▪ The Ministry of Investment and International Cooperation launched the second edition of Egypt's investment map.

70 Egypt Mega Projects

New Administrative Capital The new administrative capital will strengthen and diversify the country’s economic potential by creating new places to live, work and visit for 7 million people.

1.5 Million Acres To restore Egypt's status as a major agricultural state, this project will expand agricultural land by 20% in an effort to achieve full self-sufficiency of crops.

The Golden Triangle The Golden Triangle, a new economic zone located between Qena, Safaga and Al Qusair, is considered one of the richest areas in mining sources accounting for 75% of Egypt’s mining minerals.

71 Egypt Mega Projects

New Alamain City The Al-Alamein region is now being developed to become a second Alexandria and will offer investment opportunities in tourism, healthcare, logistics, agriculture, industry, education and energy.

Damietta Furniture City Damietta Furniture Complex is set to boost the furniture industry in Egypt, which is currently one of the fastest growing sectors.

El Galala City The development of Al Galala City is one of the largest Egyptian development projects. The city is located on the highest mountain plateau between Ain Sokhna and Zafrana and overlooks the Red Sea Coast .

Suez Canal Region The Suez Canal Economic Zone is aimed at becoming a global trade hub and is projected to generate US$ 12 billion annually. 72 AUTOMOTIVE MARKET EVOLUTION

73 73 EGYPTIAN AUTOMOTIVE-LOCAL REQUIREMENT, A MUST TO SUCCEED

MARKET STANDARD CHARACTERIST SPECS ICS REQUIREMENTS AUTOMATIC HIGHLY CROWDED GEARBOX ROADS STRONG AIR- CONDITIONING HOT CLIMATE

ENTERTAINMENT ON BOARD VERY BAD ROAD CONDITIONS REINFORCED SUSPENSION

HIGH RUNNING COST OF FUEL PETROL RON 92

HIGH TAXATION < = 1.6 LITER ENGINE

74 TOP 30 IMPORTERS BY BRAND IN 2018

NO. BRAND Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 TOTAL 2018

1 HYUNDAI 1,388 356 1,765 988 1,373 1,571 1,256 1,683 2,086 3,090 1,304 1,113 17,973 2 RENAULT 777 1,123 1,450 975 1,547 1,204 1,186 1,815 556 1,738 1,547 3,047 16,965 3 KIA 733 93 582 676 123 243 805 649 1,097 1,477 1,587 1,304 9,369 4 TOYOTA 302 84 932 780 267 634 611 439 718 1,126 1,096 92 7,081 5 OPEL 0 922 548 316 674 319 708 189 300 299 586 945 5,806 6 MISTUBISHI 203 298 400 272 730 610 592 650 551 325 161 64 4,856 7 NISSAN 274 134 263 178 539 503 745 321 325 306 335 453 4,376 8 FORD 357 237 286 213 370 236 484 380 564 218 251 98 3,694 9 FIAT 263 260 200 232 60 585 167 189 458 364 421 340 3,539 10 SANYOUNG 0 290 0 247 295 0 496 355 350 394 193 529 3,149 11 MERCEDES 319 329 425 207 147 24 2 5 828 245 309 0 2,840 12 PEUGEOT 270 128 0 10 42 394 595 139 431 496 293 0 2,798 13 VW 263 100 178 165 103 139 213 305 190 222 30 90 1,998 14 MG 0 3 0 0 0 0 0 319 0 576 537 476 1,911 15 BAIC 598 48 508 0 505 0 0 80 0 0 0 0 1,739 16 SUBARU 50 58 129 167 139 90 183 194 253 72 115 266 1,716 17 GLORY 0 0 150 200 280 300 298 339 0 0 56 1,623 18 SEAT 60 236 22 119 175 83 217 0 335 77 180 9 1,513 19 JAC 0 153 0 101 152 104 148 48 240 60 168 168 1,342 20 SKODA 0 250 89 183 73 158 0 97 42 204 156 32 1,284 21 GEELY 0 0 0 0 0 0 0 0 504 499 250 0 1,253 22 JEEP 138 96 128 95 30 169 126 116 84 14 25 0 1,021 23 CHANGAN 69 0 182 67 55 50 0 100 204 50 182 48 1,007 24 SUZUKI 0 60 0 0 104 6 0 263 248 265 0 30 976 25 MAZDA 0 0 0 26 82 0 100 71 0 482 142 0 903 26 CHEVROLET 0 161 0 60 46 21 232 2 10 137 132 0 801 27 VOLVO 50 21 59 64 35 57 49 84 56 22 72 33 602 28 CITROEN 31 71 33 19 93 0 0 87 141 17 41 14 547 29 CHEERY 540 0 0 540 30 AUDI 124 72 23 1 0 32 23 6 12 53 6 62 414 Renault No. 2 KIA No. 3 in Importation from the CBU Total Importation year 2018 was 106,078 Units

Source: CUSTOMS 75 EIM 2nd LARGEST AUTOMOTIVE GROUP IN 2018

37,047 Total TIV PC - LCV : 127,246 Units Other Brands (18,640 Units /15%) 27,798 24,127 21,181

9,428 5,436 3,303

25.4% 21.6% 18.7% 15.6% 7.3% 4.2% 2.6%

80% CKD 59% CKD 20% CBU 47% CKD 41% CBU 100% CBU 53% CBU

100% CBU 97.7%CKD 100% CBU 2.3% CBU 100% CBU 96.3% CKD 6.2% CKD 100% CBU 93.8% CBU 3.7% CBU 100% CBU 100% CKD 100% CBU` 100% CBU 100% CBU 76 Source: AMIC Reports MARKET UNDERSTANDING

Segment mix: top segments (56% of TIV) dominated by Japanese & Korean brands

SUV-C 10,874 8,746 12,731 1,501 6,744

SD-B 10,489 13,814 9,764 4,834 -

SD-C 4,261 16,384 16,565 7,823 7,778

Others 7,239 2,845 981 2,424 89

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Europe Japan Korea US China

77 Source: AMIC Reports AUTOMOTIVE MARKET OVERVIEW TIV SALES 2018-2019

324,287 Revolution Years • PC market was down 294,806 294,806 by (31%) in 2011 due 268,006 to the revolution. 248,917 • PC market went up by 8% in 2012. 205,521 200,252 195,869 193,885 176,157 170,000 • TIV 2019 FC will be same as 226,589 2018 as an optimistic 205,990 205,990 forecast or lower down by 187,264 192,848 10 to 15% Vs. 2018 158,926 144,123 133,760 145,886 133,165 128,000

97,697 80,742 88,816 88,816 56,069 56,129 62,109 46,595 42,992 47,999 42,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (F) Total Industry Volumes 205,521 248,917 176,157 200,252 195,869 268,006 294,806 324,287 294,806 193,885 170,000 Passenger Cars 158,926 192,848 133,165 144,123 133,760 187,264 205,990 226,589 205,990 145,886 128,000 Commercial Vehicles 46,595 56,069 42,992 56,129 62,109 80,742 88,816 97,697 88,816 47,999 42,000

Source: AMIC Reports 78 AUTOMOTIVE MARKET OVERVIEW TIV SALES 2018-2019

Political Stability Zero % Customs

CBE New Regulation

1st Revolution 292,983 278,406 Devaluation of EGP 2nd Revolution 248,917 232,662

200,252 195,869 198,271

176,157 193,885 207,973 195,559 135,632 192,848 175,063 144,123 133,760 141,983 145,886 133,165 99,530

85,010 82,847 62,109 56,069 56,129 56,288 47,999 57,599 42,992 36,102

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (F)

Commercial Vehicles Passenger Cars Total Industry Volumes

Source: AMIC Reports 79 AUTOMOTIVE MARKET OVERVIEW

80 TOTAL MARKET IN JULY 2019 VS. JULY 2018

Total Market volume for the month of July 2019 was lower than July 2018 sales by -5.61% from 16,907 to 15,958 units The passenger cars segment had a volume decrease of -8% in units, when comparing July 2018 to July 2019 The Buses segment had a volume decrease of -13.7% The trucks segment had a volume increase of 9.9%

Source: AMIC Reports 81 TOTAL MARKET SPLIT YTD 2019 VS. YTD 2018

Total Market volume YTD 2019 was lower than YTD 2018 sales by -6.58% from 16,907 to 96,381 units TO 90,042 The passenger cars segment had a volume decrease of almost -10% in units, comparing YTD 2019 vs. YTD 2018 The Buses segment had a volume increase of 0.1% The trucks segment had a volume increase of 4%

Source: AMIC Reports 82 TOTAL MARKET JULY 2019 SALES ANALYSIS IN VOLUME

Performance in July 2019 sales is higher than 2019 YTD average, 2018 YTD average and June 2019 sales. But lower than 2018 average and July 2018 sales. 2018

Source: AMIC Reports 83 TOTAL MARKET BY BRAND – JULY 2019 VS. JULY 2018 IN VOLUME (TOP 13)

Source: AMIC Reports 84 TOTAL MARKET BY BRAND – JULY 2019 VS. JULY 2018 IN MARKET SHARE (TOP 13)

Source: AMIC Reports 85 TOTAL MARKET BY BRAND – YTD 2019 VS. YTD 2018 IN VOLUME (TOP 12)

Source: AMIC Reports 86 TOTAL MARKET BY BRAND – YTD 2019 VS. YTD 2018 IN MARKET SHARE (TOP 12)

Source: AMIC Reports 87 PASSENGER CARS MARKET

88 PC MARKET SPLIT JULY 2019 VS. 2018 IN VOLUME

In the month of July 2019, the overall total PC market decreased by -8% from 12,471 to 11,499 units

Source: AMIC Reports 89 PC MARKET SPLIT YTD 2019 VS. YTD 2018 IN VOLUME

The overall total PC market decreased by -10% from 69,901 units to 62,810 units

Source: AMIC Reports 90 PC MARKET JULY 2019 SALES ANALYSIS IN VOLUME

Performance in July 2019 sales is higher than 2019 YTD average, 2018 YTD average and June 2019 sales But lower than 2018 average and July 2018 sales

Source: AMIC Reports 91 PC MARKET YTD JULY 2018 VS YTD JULY 2019 JULY VSYTD 2018 JULY YTD MARKET PC Source:AMICReports

Passenger Cars Passenger Cars

CBU CBU

CKD CKD - 10%

Passenger Cars Passenger Cars - CBU 4% CBU - CKD 19% CKD 92 PC MARKET YTD 2019 VS 2018 BY BRAND ORIGIN BRAND BY 2019 2018 VS YTD MARKET PC Source:AMICReports

Passenger Cars Passenger Cars

CBU CBU

CKD CKD

Passenger Cars Passenger Cars CBU CBU

CKD CKD 93 SEGMENTS MARKET SHARE YTD JULY VS YTD JULY 2019

YTD (July) 2018 (69,901 Units) YTD (July) 2019 (62,810 Units) -10%

• C-Sedan Segment continues to decrease in number of units but still has the same market share and Analysis C-SUV Segment increased by 2%.

Source: AMIC Reports 94 PC MARKET RANKING YTD JULY 2018 VS YTD JULY 2019

-30% -45%

-1% 47%

-7% -16% 372% -14%

3% -31% -56% -37%

M/S 16% 15% 12% 12% 9% 6% 5% 5% 3% 3% 2% 2% 2% 8%

Source: AMIC Reports 95 PC MARKET RANKING YTD JULY 2018 VS YTD JULY 2019 CBU ONLY

-1% 55% -23%

372%

-19%

27%

3% -47% -56% -37% -72%

M/S 19% 18% 17% 10% 8% 4% 4% 4% 3% 3% 2% 2% 6%

Source: AMIC Reports 96 PC SALES BY BRAND YTD DEC 2018- CBU+CKD

• PC Market YTD DEC 2018: 145,886 Units (+50%) • The overall total PC market increased by 47% from 99,530 units to 145,886 units Note: Passenger Cars Full Year 2018 of 145,886 units is including BYD & Lada Total Sales in 2018 of 8,927 units

97 Source: AMIC Reports PC SALES BY BRAND YTD DEC 2018- CBU ONLY

• PC CBU Market YTD DEC 2018 increased by 30% 68,726 Units

Source: AMIC Reports 98 PC SALES BY BRAND YTD DEC 2018- CBU BY M/S

Source: AMIC Reports 99 AUTOMOTIVE BRANDS CKD STATUS IN EGYPT

100 MERCEDES BENZ

• The CEO of Daimler Co. Markus Schafer & The Egyptian President Abdelfattah EL Sisi have announced a long term relation to start producing Mercedes Benz vehicles in Egypt again after it stopped in 2016 , it will start with a new Factory under it’s Sole Agent in Egypt to serve Several Models they are planning to introduce in Egypt to strengthen there lineup.

• Mercedes Benz said that they are looking forward for this partnership with Egypt and seeing it as a promising Market for them and want to increase the market share, return to the game again and restore it’s position which has been lost since years.

• Mercedes will produce 2 of their Models from The USA Factory in the New Egyptian Factory as a start Due to the high demand from Several Regions on there Models and they will secure the demand when they start production in Egypt.

• Ittihadiya welcomed the announcement, saying it is “a step that reflects the improvement of the investment environment and the performance of business in Egypt.”

101 CHERY

In 30th July, 2019- GB Ghabbour Auto has celebrated the production of Chery “Arrizo 5” through its manufacturing plant in Abu Rawash industrial zone. The local assembly of Chery “Arrizo 5” is part of the company’s expansion plans in the Egyptian auto sector and its commitment. GB Ghabbour Auto offers Chery Arrizo 5 in three trims: Baseline (Manual and Automatic) and Highline (Automatic). Chery Arrizo 5 is covered for 5-years or 100,000 km warranty, whichever comes first The locally assembled Chery Arrizo 5 relies on a DVVT 4-cylinder engine with a 1,499 cc engine capacity, producing 114 HP at 6150 rpm and 141-newton meter torque at 3800 rpm. The baseline is offered with a 5- speed manual transmission while the highline is equipped with a 7-speed automatic transmission.

102 KIA

After the Success of EIT The Sole Agent of Kia in Egypt with Korean side to start producing the Big SUV Kia Sorento (SUV – D) which in fact took less than 1 Week after Meeting the Egyptian Minister of Industry & The Model (Sorento) has been confirmed with the Kit & selling price as well, it was introduced in the Egyptian Market before End of 2018., EIT Succeeded to take it’s second Model which is a Small Car in Segment B to start producing during 2019 Year.

103 PROTON

• Proton Delegation has held Positive talks with The Minister of Industry Amr Nassar in the previous Week & they are willing to produce locally the Proton Saga with a Mass volume & Cheaper price. • Note: The Car has been introduced in the Egyptian Market December 2018.

104 MG

• MG has agreed with it’s Sole Agent Mansour last year to start producing MG ZS the competitor of Duster in Egypt during 2019 & they will start to assemble the CKD version in Egypt • Moreover the MG RX5 the competitor of the Kadjar will follow in the plan to be introduced as a CKD Model in the next year 2020 , as they are seeing that the SUV is a promising and very growing segment to invest in due to high market demand.

105 The Egyptian Strategy to Produce and Introduce Electric Vehicles

❑ In alignment with the United Nations Sustainable Development Goals (SDGs), and in accordance with Egypt’s Vision 2030. Egypt is committed to both reducing emissions of Green House Gases (GHG) to curb climate change and reduce local air pollution emissions for the sake of public health.

❑ The Egyptian government plans to increase the use of alternative fuels to reduce dependence on conventional fuels, such as gasoline and diesel, by introducing electric and hybrid vehicles in both public and private transportation.

❑ President Abdel Fattah El Sisi has requested the localization of Electric Vehicles industry.

❑ A national strategy for transformation to Electric Vehicles has been launched, with the contribution of various related ministries.

❑ A partnership agreement has been signed with China for manufacturing of 2,000 electric buses in Egypt by the Ministry of Military Production in cooperation with a Chinese company (Foton), and agreement has been made to deliver 50 electric buses to Egypt later this year. National strategy 4 Pillars implemented through 3 Strategic phases

Enabling Introducing Deeping Shifting to Renewable Infrastructure Incentives Manufacturing resources

Stage 2 Stage 3 Stage 1

Increasing local Expanding in Expanding Electric inputs to Export Markets cars manufacturing production The Supporting Infrastructure Needed to Enhance Demand The Revolta Case

Current status Expansion plan 87 charging stations; including: Targeting 1000 Charging 20 Fast Charging Point Point in 2020 (50 KW) Already signed for 400 new 67 Regular Charging Point locations (including 50 with (22 KW) Shell) RevoltaEgypt Government Investment Incentives

General incentives:

▪ All investment projects (except for free zone projects) benefit from general incentives under law 72.

▪ These incentives include:

1. A fixed 2% customs fees on all imported machinery and equipment.

1. Exemption from stamp tax and registration fees on all incorporation contracts, finance and mortgage contracts for 5 years from registration on the commercial registry. Government Investment Incentives

Special Incentives:

Investment projects established within three years after the issuing date of law no: 72 are entitled to: • A tax exemption of up to 50% on investment costs in the developing areas (zone A- underdeveloped geographical areas specified at the investment map). • A tax exemption equal of up to 30% of the investment costs in the more developed areas, up to a maximum of 80% Of The Paid Up Share Capital (ZONE B-ALL OTHER AREAS). • (Labor- intensive projects- small and medium- which depend or produce new or renewable energy- electricity production or distribution – tourism-export projects-industrial - etc.) Government Incentives for the First Investor in the Field

❑ Providing infrastructure needed for fast charging stations: It is proposed to provide a lump sum 25 thousand pounds per station to motivate Companies establishing the first 2000 charging stations, accurately distributed throughout the country.

❑ Encouraging supply and demand for locally manufactured electric vehicles: o It is proposed to provide a lump sum of $ 6,000 to $ 7,500 for the first 100,000 locally produced electric vehicles, to be distributed as follows:

o 66.7% of the owner of the car, after a distance of 20,000 km, spent in stages, in a period not exceeding two years.

o 33.3% for the factory, provided that the local component is not less than 40%. Guarantee the purchase of 4000-5000 cars annually to replace cars owned by ministries and government agencies, for a period of five years. o Setting a limit on the percentage of new licenses granted to gasoline taxis, and opening them to electric cars Ministry of the Public Business Sector seeks to localize the electric car industry By

❑ Cooperating with China in the field of electric cars Manufacturing, especially in light of their experience and advanced technology in the industry.

❑ Providing the necessary support for investments in the field to keep pace with the current global trends shifting towards environmentally friendly electric cars.

❑ Satisfying the domestic market and then export to the global market, benefiting from the agreements signed with other countries in this area.