Investment Themes• A robust business model, which serves almost all the clients’ needs• A big free float of 59.2%• Entering a high-margin LoB in Land and River Transport industries• Failure to secure the required debt for financing the EGP530mn capex plan could

jeopardise planned operations.• Delay in River Transport industry’s infrastructure development will strongly curb the

company’s potential growth.

Upside Catalysts• Faster-than-expected recovery from the current political and economic unrest.• Improved separate YoY earnings by 41%. • Entry into untapped River Transport industry remains on schedule.• Benefits of river transport (time & cost savings, safety & lower CO2 emissions).• Well -integrated supply chain.

Downside Risks• Continued political & economic instability.• Obstacle or default in sourcing the required debt to finance the EGP530mn capex

plan may negatively impact Egytrans’ future business plans, considered a key driver to forecasted growth.

• Current delay in developing River Transport industry’s infrastructure could curb potential growth.

Egyptian Transport & Commercial Services – Egytrans

Company Profile

The Egyptian Transport and Commercial Services Company (Egytrans) [ETRS] was established in December 1973 under Egypt’s open door policy. However, its transport activities and experience date back to 1939 and Gamal El-Din Leheta & Co. Following its nationalization in 1976, Egytrans became one of Egypt’s largest companies, offering shipping, tourism and other transport services.

Shareholder Structure

• Leheta Family 16.8%• National Investment Bank 24.0%• Free Float 59.2%

52-Week Performance & Share Data (*EGX suspended between 27th Jan – 23rd Mar 2011)

ETRS.CA/ETRS EY | Hold Recommendation | High Risk | LTFV EGP11.2 | Target Price EGP12,4 | Analyst: Sherif Helmy

Key Performance IndicatorsEGP mn/ FY End:December 2007a 2008a 2009a 2010a 2011e 2012e

Revenue 150.2 195.5 201.5 134.4 242.3 392.3 Growth Rate (%) 24.2 30.2 3.0 -33.3 80.3 61.9

EBITDA 8.4 8.3 11.4 (4.9) 14.2 30.8 Growth Rate (%) 10.5 -0.9 36.4 -143.0 n/m 116.2EBITDA margin (%) 5.6 4.3 5.6 -3.6 5.9 7.8

Net Income 5.4 11.0 11.4 9.9 15.3 24.3 Growth Rate (%) n/m 104.0 4.2 -13.4 54.3 59.3Net margin (%) 3.6% 5.6% 5.7% 7.4% 6.3% 6.2%

P ER 33.7x 16.5x 15.9x 18.3x 11.9x 7.5xP /BV 3.1x 2.6x 3.3x 1.1x 1.0x 0.6xEV/EBITDA 26.6x 26.0x 18.7x NM 20.2x 9.8xNet debt/EBITDA 5.0x 4.2x 2.8x NM 7.5x 3.9xDividend Yield N/A N/A -6.2% N/A N/A N/A

Source: CICR Database

Sector: Transport & LogisticsISIN: EGS42051C010

Last P rice (EGP ) 11.63

52 Week High 16.8452 Week Low 7.60

100-day Av. Volume 193 (000' shares per day)

No. of Shares (mn) 15.6

Market Cap (EGP mn) 182

*P rices as at close on 30th May 2011

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