Al Ezz Steel Rebars S.A.E.Al Ezz Steel Rebars S.A.E.FY 2008 Financial Results Presentation22 April 2009

DisclaimerAl Ezz Steel Rebars S.A.E. (“ezzsteel” or “ESR”) give notice that:

The particulars of this presentation do not constitute any part of an offer or a contract.

The information contained in this presentation may contain certain projections and forward-lookingh fl h ’ i i h f d fi i lstatements that reflect the company’s current views with respect to future events and financial

performance. These views are based on current assumptions which are subject to various risks andwhich may change over time. No assurance can be given that future events will occur, thatprojections will be achieved, or that the company’s assumptions are correct. Actual results maydiff t i ll f th j t ddiffer materially from those projected

None of the statements contained in this presentation is to be relied upon as a statement orrepresentation of fact.

All ti t ti f th l t th t f h f th t t t t i d i thiAll parties must satisfy themselves as to the correctness of each of the statements contained in thispresentation.

ezzsteel do not make or give, and neither it’s subsidiaries nor any of their directors or officers orpersons in their employment or advisors has any authority to make or give, any representation orpersons in their employment or advisors has any authority to make or give, any representation orwarranty whatsoever in relation to this presentation.

This presentation may not be stored, copied, distributed, transmitted, retransmitted or reproduced, inwhole or in part, in any form or medium without the permission of ezzsteel.

2

Key highlightsKey highlights

2008 was an exceptional year2008 was an exceptional year

First 9 months enjoyed record demand and prices

L t t i d d t d d li i i d lLast quarter experienced unprecedented decline in prices and volumes 

l j d d l d fi bili i 2008 d i Q4 b lEzzsteel enjoyed record sales and profitability in 2008 despite Q4 turbulence

Strength of growing Egyptian market, where we are market leader

Robust financial position

Operational flexibility and technology allowed us to swiftly adapt to changing market conditions

h

3

Continue to pursue our growth strategy to emerge even stronger

Steel market overviewSteel market overview

Total world crude steel output rose strongly during the first nine months of 2008Total world crude steel output rose strongly during the first nine months of 2008

Widespread production curtailment during fourth quarter, in response to global economic downturn, lead to an

overall 1.1 per cent decline for 2008

h d l d d l dThis decline was most pronounced in developed economies

269 2 2721200

1400

1 143

1,3431,239.5

1,329.6

423489.2 502203.1

213.3

225242

243.5

269.2 272

800

1000

1200

Million Source: World Steel Association

847.7 850.5

1,1431,068.9

970904.1

98.5 99 7 101 2 106.5 113.4 113.2 119.7 124 114.1

106.4 102.9 107.7 110.5 112.7 112.5 116.2 120.2118.7

127.2 150.9 182.2222.4

282.8 352.4423

188.3 190.8

400

600

800Million Tonnes

Source: World Steel Association

*Preliminary

193.3 187.5 188.3 192.5 202.3 195.5 206.9 210.3 198.6

134 118.7 121.6 124.8 132.7 126.4 130.2 130.1 124.2

99.7 101.2

0

200

4

2000 2001 2002 2003 2004 2005 2006 2007 2008*

EU 27 NAFTA CIS Japan China Other Countries

Overview of domestic steel marketOverview of domestic steel market

2007 Finished Steel Consumption Per Capita

Despite the global slowdown, local demand remains very strong, particularly in respect of private home building 556 626300

400

500

600

(kg)building

Government stimulus package includes large steel f

69 115 123 173 280 292 315 354

463 556 626

-

100

200

300

gypt

razi

l

outh

fri

ca

aine ssia

Iran

rkey

U.S

.

man

y

pain

apan

(

Local Consumption (‘000 Tonnes) – Long Products Local Consumption (‘000 Tonnes) – Flat Products

intensive infrastructure investments Eg B So Af

Ukr

a

Ru

Tu

U

Ger

m S J a

Source:  World Steel Association

600

800

1,000

35574157

3504 34624124

50012,000

3,000

4,000’04‐’08 CAGR: 8.3%

’04‐’08 CAGR: 16.7%

676 591 617 569 524 635 696 7711024 1043 958

0

200

400

600

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

3557 3216 3390 3117 3055 27003504 3462

0

1,000

,

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

5

Source:  Company estimates. Source:  Company estimates.

Domestic market shareDomestic market share

2008 flat products 2008 long products

Market size: 958k tonnes Market size: 5,001k tonnes,

Imports20%

Others14.4%

Makaby2.5%20% 14.4%2.5%

Bourieni2.7%

EISCO

ezzsteel58%

Attal5.5%

Beshay

ezzsteel62.4%

23% Beshay12.5%

6

Key highlights

Revenue

y g g

ProductionProduction

16,159

21,792

20,000

lions

4,834 4,608

4000

5000

6000

nes

5,000

10,000

15,000

EGP

Mill

1000

2000

3000

'000

s To

nn

EBITDA Net Income

02007 2008

02007 2008

3,9914,468

4,000

5,000

lions

1,122

1,223

1 150

1,200

1,250

Mill

ions

1,000

2,000

3,000

EGP

Mil

,

1,000

1,050

1,100

1,150

2007 2008

EGP

M

7

2007 2008 2007 2008

Full year 2008 productionFull year 2008 production

1,759

1,367

1,812

1,3731,500

2,000

nes

775932

695 729

500

1,000

'000

Ton

n

0EZDK Long EZDK Flat ESR Long EFS Flat

2007 2008

8

2008 sales breakdown2008 sales breakdown

By product

Export

By market

ExportEGP 4,302m

20%Flat

EGP 6,777m31%

DomesticEGP 17 489m

LongEGP 14,867m

69% EGP 17,489m80%

Ezzsteel generates the largest portion of its revenues in its growing domestic market, 

9

where it enjoys a leading position 

Full year 2008 revenuesFull year 2008 revenues

Consolidated revenues

EGP M EGP Mn ESR/ESM EZDK EFS ezzsteel

Long 6,565 8,302 14,867

Flat 3,145 3,633 6,778

Others 0.4 142 5 148

Total 6 565 11 589 3 638 21 792Total 6,565 11,589 3,638 21,792

Standalone Sales 6,566 11,639 3,848

10

Full year cost breakdowny

EGP Mn 2007 2008

Sales 16,159 21,792

COGS 12,511 17,493

90%

100%

COGS/Sales 77% 80%

60%

70%

80%

90%

30%

40%

50%

0%

10%

20%

2007 2008

11

2007 2008

Raw Materials Energy Labour Depreciation & Overheads

Profitabilityy

5 000

3 6483,990

4,2994,467

4,000

4,500

5,000

3,648

3,000

3,500EG

P

2,000

2,500

Gross Profit EBITDA

2007 2008

12

Profitability per tonney p

9651,000

815

929965

800

900

1,000

745

600

700

800

EG

P

500

600

Gross Profit Per Tonne EBITDA Per Tonne

2007 2008

13

R b t b l h tRobust balance sheet

Successful completion of the EGP1.1 billion bond issue in June

Capital increase of EGP1 8 billion by way of a rights issue in SeptemberCapital increase of EGP1.8 billion by way of a rights issue in September

Stake in EZDK increased from 50.28% to 53.24%

Cash on hand at the end of the period amounted to EGP 4.1 billion

ezzsteel’s net debt at end of the period was EGP 3.6 billion

Conservative gearing levels:Conservative gearing levels:Net Debt / Equity = 0.5xNet Debt / EBITDA = 0.8x

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Commitment to growth strategyCommitment to growth strategy

ezzsteel’s expansion to continue

Vertical integrationVertical integration

Capacity expansion

Prioritisation of projects to ensure optimal economic returns

Ultimate objective is to ensure that EZDK’s performance is replicated at all other business units business units

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OutlookOutlook

VolumesVolumes

Local demand remains very strong, in particular private home building and

infrastructure projects

Government stimulus package expected to support demand for long products

Flat steel exports remain ezzsteel’s only exposure to weak global markets

Prices

Domestic prices linked to global finished steel prices

Raw material prices move in line with finished steel prices

Expect to continue to outperform the global steel sector

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SummarySummary

Record sales and profitability

Buoyant local market demand for long product off setting weaker export markets

Healthy balance sheet with high levels of cash and low gearingHealthy balance sheet with high levels of cash and low gearing

Growth strategy to continueGrowth strategy to continue

17

Q&AQ&A

Divisional Review: EZDK Divisional Review: EZDK

EZDK (Alexandria)EZDK (Alexandria)Sales: FY 2008 FY 2007 % change

Value: EGP 11.6 bn EGP 8.8 bn +33%Volume:

Long: 1,785 thousand ton 1,824 thousand ton -2.1%%Flat: 687 thousand ton 770 thousand ton -10.8%

Exports as % of Sales:Long:

Flat: 1%

41%10%47%

EBITDA: EGP 4.3bn EGP 3.4bn +26.8%Production:

Long Products: 1,811 thousand ton 1,759 thousand ton +3.0%Flat Products: 694 thousand ton 775 thousand ton -10.5%

Bill t 1 911 th d t 1 869 th d t 2 2%

Egypt’s largest steel complexCapable of long and flat production to international standards including thin gauge flat steel

Billets: 1,911 thousand ton 1,869 thousand ton +2.2%

Capable of long and flat production to international standards, including thin gauge flat steelPrivately operated port that can dock ships of up to 150,000 dwt - few other producers have thisbenefitDRI for internal meltshop use is supplied by the plant’s MIDREX direct reduction units

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Divisional Review: ESR / ESM

ESR/ESM ( Sadat City & 10th of Ramadan)ESR/ESM ( Sadat City & 10 of Ramadan)Sales: FY 2008 FY 2007 % change

Value: EGP 6.6 bn EGP 4.5 bn +44.7%

Volume: 1,381 thousand ton 1,394 thousand ton -1%

Exports as % of Sales: 0% 8%

EBITDA: EGP 148 mn EGP 314mn -52.7%

Production:Long Products: 1,373 thousand ton 1,367 thousand ton +1%

Billets: 747 thousand ton 788 thousand ton -5.1%

Mini-mill in the strategic location of Sadat City, commissioned in 1995 Capacity to produce 1.4 million tonnes of long products per year Also operate a plant at the 10th Ramadan, which comprises of rolling mill and wire mesh factory

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Divisional Review: EFSDivisional Review: EFS

EFS (Suez)Sales: FY 2008 FY 2007 % change

Value: EGP 3.6 bn EGP 2.9 bn +24.3%

Volume: 770 thousand ton 891 thousand ton -13.6%

Exports as % of Sales: 80% 71%

EBITDA: EGP 21mn EGP 287 mn -92.7%

Production:Flat Products: 728 thousand ton 932 thousand ton -21.9%

Ownership in EFS increased to 75% in 2007 O f th f d i th ld t t thi l b ti t h l t One of the few producers in the world to operate thin slab casting technology, to produce thin gauges of steel sheets with a minimum thickness of 1mm

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ezzsteel at a Glance

Ezz Industries Free Float

The largest steel producer inthe Middle East and Africa

ith t t l t l it

Ezz Industries Free Float

34.8%65.2%

with a total actual capacityof 5.3mn tonnes per annum

3.1mn tonnes of longproductsp2.2mn tonnes of flatproducts

t l i li t d th G

90.7%

ezzsteel is listed on the EGXand the LSE (through a GDRprogram) and has a marketcapitalisation of EGP 5.0bn

53.24%75%

ESMas at April 21st 2009 ESM

22

Relative share performance vs EGX30Relative share performance vs EGX30

160 52 week high: 35 12 5 May 08

140

160

100)

52 week high: 35.12, 5 May 08

52 week low: 4.54, 9 Feb 09

Adjusted for rights issue, excluding dividends

Average daily volume: 2.2m

100

120

man

ce (r

ebas

ed to

g y

60

80

Rel

ativ

e pe

rfor

m

20

40

0

23

ezzsteel EGX 30

* Share price includes dividends (not reinvested): EGP 2.00 on 15 Dec 2008 and EGP 1.30 on 23 March 2009