1Q 2023 BUSINESS REVIEW

CAIRO, EGYPT: 15 July 2023

Qalaa Holdings Experiences 1Q 2023 Outcomes

• Qalaa’s consolidated income grew 62% y-o-y to EGP 30.3 billion in 1Q23 and recurring EBITDA reached EGP 10.3 billion in comparison with EGP 3.9 billion in 1Q22, supported by robust performances throughout all subsidiaries;
• ERC was the first driver behind consolidated income progress, contributing c.77% to Qalaa’s complete income in 1Q23. ERC’s refining margins have remained robust through the quarter however have considerably tapered in 2Q23, heading in the direction of normalized margins.
• Regardless of ERC’s receivables from EGPC having reached USD 699 million as of 31 March 2023, EGPC continues to make funds which have since diminished the excellent stability to USD c. 510 million as of finish of June 2023. It is a constructive improvement that enabled ERC to pay USD 445 million in the direction of the settlement of debt and the funding of the Debt Service Reserve Account in June 2023;
• Excluding ERC, Qalaa’s income grew by 38% y-o-y and recurring EBITDA elevated by 105% y-o-y in 1Q23, pushed by constructive performances throughout Qalaa’s subsidiaries, which noticed improved outcomes on the again of the Group’s long-standing technique of specializing in import substitution, export-oriented companies, and companies with very excessive native worth added;
• TAQA Arabia’s stable prime line outcomes had been primarily pushed by a powerful efficiency at its gasoline division (TAQA Fuel), together with the rise in CNG volumes offered on account of the enlargement in CNG station numbers. Income was additionally supported by the rise in gasoline costs at TAQA Arabia’s petroleum product distribution division (TAQA Petroleum);
• ASEC Holdings delivered a 26% y-o-y income progress on the again of the depreciation of the EGP towards foreign currency echange during which the revenues of among the platform’s subsidiaries are denominated;
• Nationwide Printing’s income was up throughout all its product traces. The section benefitted from a mix of upper costs and improved quantity;
• ASCOM’s progress was principally pushed by the impression of the EGP devaluation on the USD denominated companies reminiscent of Ascom for Chemical compounds and Carbonates Manufacturing, and insulation materials producer GlassRock;
• Dina Farms’ income grew y-o-y supported by improved operations throughout all enterprise segments; ICDP, the dairy and juice producer, benefited from promoting worth will increase throughout the board, coupled with new product launches;
• The Group’s export proceeds reached c. USD 24.2 million in 1Q23, whereas native overseas foreign money income recorded c. USD 798.4 million. Transferring ahead, Qalaa will proceed specializing in exports to profit from the fee benefit obtainable to native producers;
• Finalizing debt restructuring at Qalaa Holdings stays a precedence. A few of the money owed associated to Qalaa and its subsidiaries have been efficiently settled or restructured. Furthermore, Qalaa is negotiating the settlement of different debt obligations utilizing the shares of its lately listed subsidiary TAQA Arabia, with the choice of repurchasing these shares sooner or later. Qalaa could proceed to make use of this technique with different property going ahead, because it reaches agreements with its collectors round debt settlement and restructuring. Going ahead, Qalaa may divest a couple of small non-core or under-performing companies and property;
• The aforementioned debt settlement/restructuring may even see Qalaa acknowledge beneficial properties within the coming interval, pushed by capital beneficial properties from the sale of some property;

1Q 2023 BUSINESS REVIEW

CAIRO, EGYPT: 15 July 2023

• Qalaa has been resilient regardless of extremely difficult macroeconomic situations. The Group will proceed driving progress by making small incremental investments in its subsidiaries, increasing its cashflows, and thereby lowering debt to money movement ratios. Administration is assured this technique will proceed to ship;
• Qalaa is presently learning a number of new medium-sized, export oriented, predominantly inexperienced, and excessive native value-added investments, to be executed by its subsidiaries;
• The workers and property of Qalaa’s Sudan affiliate Takamol Cement are protected and proceed to function at a restricted capability. Qalaa continues to carefully monitor the continued developments inside the nation;
• Beginning 1Q23, Qalaa utilized the optionally available distinctive accounting therapy launched to the Egyptian Accounting Requirements which permits for the FX beneficial properties/losses incurred following the devaluation of the EGP to be reclassified into different complete earnings (OCI) underneath fairness on the stability sheet. 1Q22 financials had been restated accordingly for ease of comparability.

1Q 2023 BUSINESS REVIEW

CAIRO, EGYPT: 15 July 2023

1Q 2023 Consolidated Earnings Assertion Highlights

Income		Income (excluding ERC)
EGP 30.3 bn		EGP 6.9 bn
vs. EGP 18.7 bn in 1Q22		vs. EGP 5.0 bn in 1Q22
EBITDA*		EBITDA (excluding ERC)
EGP 10.3 bn		EGP 1.6 bn
vs. EGP 3.9 bn in 1Q22		vs. EGP 783.4 mn in 1Q22
Web Earnings After Minority**		Web Earnings After Minority (excluding ERC)**
EGP 73.0 mn		EGP (475.6) mn
vs. EGP 468.9 mn in 1Q22***		vs. EGP 255.1 mn in 1Q22***
Highlights from Consolidated Stability Sheet at 31 March 2023
Consolidated Belongings		Consolidated Debt
EGP 184.2 bn		EGP 95.2 bn
At present ebook worth vs. EGP 144.9 bn in FY22		Of which EGP 61.9 bn associated to ERC

*Recurring EBITDA excludes one-off promoting, common and administrative bills

**In 1Q23 QH utilized the optionally available distinctive accounting therapy of reclassifying the FX to the Different Complete Earnings (OCI). Comparative figures of 1Q22 have been restated accordingly.

***Together with a one-off acquire of EGP 842 million booked on account of debt restructuring on the Transportation and Logistics sector

ERC’s debt consists of the USD Equal of EGP 37.57 billion in Senior Web Debt (Senior Debt – Money) and EGP 16.6 billion in Mezzanine Debt

Qalaa Holdings, a frontrunner in vitality and infrastructure (CCAP.CA on the Egyptian Trade), launched immediately its consolidated monetary outcomes for the primary quarter ending 31 March 2023. The Group recorded a 62% y-o-y improve in income to EGP

30.3 billion in 1Q23, and recurring EBITDA of EGP 10.3 billion in comparison with EGP 3.9 billion in 1Q22. The stable efficiency displays stable refining margins at ERC and powerful performances throughout all subsidiaries.

It’s price noting that ERC’s refining margins remained robust in 1Q23 regardless of starting to taper, averaging USD 3.7 million per day through the quarter in comparison with USD 2.7 million per day in 1Q22 and USD 4.9 million per day in 4Q22. Refining margins continued to taper in 2Q23 as they head in the direction of normalized margins. Excluding ERC, Qalaa’s income grew by 38% y-o-y to EGP 6.9 billion in 1Q23 and recurring EBITDA elevated by 105% y-o-y to EGP 1.6 billion in 1Q23.

At Qalaa’s backside line, the Group recorded a internet earnings after minority of EGP 73.0 million, down 84% from the EGP

468.9 million recorded in the identical interval final 12 months. It’s to be famous that in 1Q22, the Transportation & Logistics section underwent a debt restructuring course of which led to a one-off acquire of EGP 842 million throughout that quarter. Moreover, 1Q23 Web Revenue was negatively affected by the considerably greater finance prices following globally elevated rates of interest, in addition to greater taxes through the interval.

Monetary and operational highlights observe, as do the administration’s feedback and overview of the efficiency of various enterprise models. Full financials are actually obtainable for obtain at ir.qalaaholdings.com.