Juhayna Food Industries - Initiation of Coverage - 22 February 2016

PRIME INVESTMENT RESEARCH AUTOMOTIVE |EGYPT

GB AUTO – INITIATION OF COVERAGE JANUARY, 14TH 2016

PRIME INVESTMENT RESEARCH FOOD & BEVERAGE |EGYPT

JUHAYNA FOOD INDUSTRIES – INITIATION OF COVERAGE FEBRUARY, 22ND 2016

WE INTIATE COVERAGE FOR JUHAYNA FOOD INDUSTRIES ASSIGNING A “HOLD” RATING

WE INITIATE COVERAGE FOR JUHAYNA FOOD INDUSTRIES AT A FAIR VALUE OF EGP 6.98/SHARE IMPLYING A 3% UPSIDE POTENTIAL. HENCE, WE ASSIGN JUFO A “HOLD” RATING.

♦ THE MOST ROBUST AND RESILIENT SECTOR IN THE EGYPTIAN MARKET POST-2011.

♦ FAVORABLE MACRO-ENVIRONMENT; RISING POPULATION

AND IMPROVING GDP PER CAPITA.

♦ CONSUMPTION LEVELS GROWING FROM A LOW BASE.

♦ EGYPTIANS SPEND 40% OF THEIR INCOME ON FOOD

♦ JUHAYNA, A MARKET LEADER AND PIONEER WITH HIGH BRAND EQUITY.

♦ FIRST-MOVER ADVANTAGE IN BACKWARD & FORWARD INTEGRATION.

♦ THREATENED BY VERY FIERCE COMPETITION FROM REGIONAL & INTERNATIONAL COMPETITORS.

♦ HIGHLY EXPOSED TO FLUCTUATIONS IN RAW MATERIALS’ COSTS.

♦ DCF VALUATION SHOWS MINIMAL POTENTIAL, YET

RELATIVE VALUATION TO GLOBAL PEERS SHOWS IT IS UNDERVALUED

PRIME INVESTMENT RESEARCH JUHAYNA FOOD INDUSTRIES - INITIATION OF COVERAGE

FEBRUARY, 2016

Valuation: We initiate our coverage for Juhayna Food Industries with a “Hold” rating driven from an upside potential of 3%; driven from our estimated Fair Value of EGP 6.98. Using the DCF valuation methodology for Juhayna, we utilized an average WACC over our forecasted horizon of 14.73%, a risk free rate of 9.70%, and a market risk premium of 8%. We used the average F&B Sector Beta which is equivalent to 0.68. We applied a perpetual growth rate of 5%, driven by the sector’s ability to outperform the GDP; supported by the population growth coupled with increasing disposable income and spending power over the medium-term.

JUHAYNA FOOD INDUSTRIES … WHEN THERE’S ROOM FOR EVERYONE …..

Stock Data Outstanding Shares [mn] 941.4 Mkt. Cap [Bn] 6.38 Bloomberg – Reuters JUFO EY / JUFO.CA 52-WEEKS LOW/HIGH 6.60 – 10.90 DAILY AVERAGE TURNOVER (‘000S) 4,041

Ownership Pharon Investments 52.22% BoD 0.85% Free Float 46.93%

Financial Highlights

EGP mn 2015 2016E 2017E 2018E Revenues 4,231 4,845 5,587 6,388 GPM (%) 40% 40% 39% 38%

EBITDA 863 960 1053 1169 N.Income 280 418 487 581 NPM (%) 7% 9% 9% 9% EPS 0.30 0.44 0.52 0.62 P/E 22.81x 15.28x 13.12x 11.00x DPS 0.15 0.16 0.18 0.22 BV/S 2.57 2.82 3.14 3.52

Source: Juhayna, Prime Estimates Prices are as 21 February 2016

5

6

7

8

9

10

11

12

-02-

2015

-03-

2015

-04-

2015

-05-

2015

-06-

2015

-07-

2015

-08-

2015

-09-

2015

-10-

2015

-11-

2015

-12-

2015

-01-

2016

JUFO EGX Rebased

“HOLD” MARKET PRICE EGP 6.78 FAIR VALUE EGP 6.98 POTENTIAL 3% UPSIDE

INVESTMENT GRADE “VALUE”

Report Content Valuation 2 Financial Statements 4 Preface 5 Macro Overview on Egypt 6 Egypt’s F&B Sector 18 The Food & Beverage on the EGX 19 Juhayna Food Industries Co.: 25 I. MANUFACTURING 29 II. AGRICULTURE & FARMING 37 III. Distribution, Sales and Marketing 38 Main Events in 2015 for Juhayna 38 Financial Overview 40 Disclosure 48

Source: Bloomberg

• The F&B sector is among the most stable sectors in Egypt. Despite the political and economic turmoil that has been in Egypt specifically and the MENA in general since 2011, the F&B sector has proven to be quiet robust and resilient. Egypt’s demographics (population of 90 mn and more than 60% is under the age of 30) show a very good prospect for the sector.

• Bullish outlook on the Egyptian economy and the Consumer Goods markets in the medium-term. Continued political stability and economic reforms are expected to persist in the medium-term. A boom is expected in the consumer goods market / F&B sector, on the back of the rising population, rising GDP Per Capita and the tendency of Egyptians to spend around 40% of their income on food.

• Regional and International players have shown interest in the Egyptian F&B sector throughout the last several years. Such producers usually have extensive experience and the know-how of penetrating emerging markets.

• The Egyptian Dairy market witnessed lots of changes in the last decade. The dairy market in

Egypt grew at a CAGR rate of 10% in 2010-2015 The conversion rates from Loose Milk to Packaged Milk accelerated, where in 2015 the share of loose milk stood at 60% against the 40% for packaged milk.

• Juhayna Food Industries is a leading producer and distributor of milk, juice and yoghurt products. Production began in 1987 with a total production capacity of 35 tons per day and annual sales of EGP 2.4mn. Since 1983 and for more than 3 decades Juhayna has embarked a journey full of developments and expansions that distinguished it as a leading Egyptian producer of juice and dairy products. Each year, Juhyana introduces 10-15 new products to its diverse consumer base.

• Currently, its holds the largest market share in all of its products – plain milk (63%) – flavored

milk (64%) – juice (20%) – drinkable yoghurt (35%) – spoonable yoghurt (33%) . Throughout the years, Juhayna invested heavily in backward and forward integration, where it was able to build a business-model that is very hard to replicate by competitors.

• In the last decade, Juhyana has suffered from the deterioration of its market shares.

International companies, such as Al Marai and Danone were able to grab market shares that used to belong to Juhayna.

• Juhayna’s main risk lies within the fluctuating prices of raw materials; namely powder milk.

Powder milk represents 30% of the total raw materials. 30% of the raw materials is imported and subject to FX risks.

2


FEBRUARY, 2016

DCF Valuation shows that Juhayna has a minimal upside potential of 3%. However, Valuation based on Multiples would imply that Juhayna is considered relatively undervalued and justify trading at a premium. Juhayna has a lower Leading P/E ratio (11.65x) than its global (16.56x) and regional (13.6x) peers. Using the leading P/E multiple for global peers, Juhayna’ FV would stand at EGP 7.31, implying a 7% upside potential. From the below table, we can see that the F&B sector is traded at a high P/E ratio, regionally and globally. This can be attributed to the defensive nature of the sector that should be represented in the investors’ portfolios, especially in a country like Egypt which is featured with strong domestic demand. Consequently, investors opt to allocate a portion of their portfolios towards the F&B sector regardless of the upside potential driven from DCF method.

Value (EGP / Share) Upside Potential

100% DCF 6.95 3% 100% P/E Multiple 7.29 7% 50% DCF / 50% P/E Multiple 7.13 5%

In EGP mn 2016E 2017E 2018E 2019E 2020E

FCF 145,276 719,765 762,886 869,424 979,443 PV - FCF 129,303 557,889 513,882 509,660 502,594

Terminal Value 8,329,505 Average WACC 14.73% Perpetual Growth 5% Entity Value 8,507,149 Equity Value 6,573,916 No. of Shares (mn.) 941.41 DCF Value/share 6.98

GLOBAL P/E – Trailing P/E – Leading (NY) P/B

Median 18.13x 16.56x 1.29x

JUFO.CA 22.82x 11.65x 2.64x

REGIONAL P/E – Trailing P/E – Leading (NY) P/B

Median 13.27x 13.6x 1.27x

JUFO.CA 22.82x 11.65x 2.64x

Upside Risks:

1) Further backward integration to secure a higher portion of raw milk.

2) Major success and solid performance of Arju. 3) Ability to pass higher percentage of increase in

COGS to end-consumers than our estimation 4) Faster conversion from loose to packaged milk. 5) Further increase in consumption per capita levels. 6) Faster recovery in export markets.

Downside Risks:

1) Higher than estimated costs of raw materials

2) Higher / faster rate of devaluation. 3) Worsening FX shortage and Juhayna’s

inability to secure its required FX needs. 4) Faster deterioration of market shares.

3


FEBRUARY, 2016

SOURCE: JUHAYNA, PRIME ESTIMATES

Financial Statements … Historical & Forecasts

Income Statement Brief Historical Forecasts In EGP `000 2014 2015 2016E 2017E 2018E

Revenues 3,684,060 4,231,162 4,845,014 5,586,978 6,388,174

COGS 2,520,314 2,558,806 2,914,728 3,418,673 3,935,939

Depreciation & Amortization 186,988 204,275 235,575 272,450 304,507

Gross Profit 1,163,746 1,672,356 1,930,285 2,168,305 2,452,235

GPM 32% 40% 40% 39% 38%

EBITDA 571,047 863,384 959,900 1,052,526 1,169,274

EBITDA Margin 16% 20% 20% 19% 18%

Net Income After MI 169,964 279,829 417,647 486,392 580,390

Net Attributable Income 169,964 279,829 376,440 438,402 523,126

NPM 5% 7% 8% 8% 8%

Balance Sheet Brief Historical Forecast

In EGP `000 2014 2015 2016E 2017E 2018E

Assets

Total Current Assets 1,178,264 1,589,805 1,112,284 1,297,291 1,629,170

Total Non-Current Assets 3,336,738 3,405,458 3,770,877 3,642,307 3,496,312

Total Assets 4,515,002 4,995,263 4,883,160 4,939,598 5,125,482

Liabilities & Equity

Total Current Liabilities 1,352,962 1,307,020 1,381,895 1,382,883 1,431,693

Total Non-Current Liabilities 877,584 1,265,298 845,742 602,183 377,095

Total Liabilities 2,230,547 2,572,317 2,227,637 1,985,066 1,808,787

Total Equity

2,284,455 2,422,945 2,655,523 2,954,532 3,316,695

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FEBRUARY, 2016

SOURCE: MASLOW’S HIERARCHY OF NEEDS

SOURCE: CAPMAS & CBE & MINISTRY OF INVESTMENT

SOURCE: CAPMAS

MASLOW’S HIERARCHY OF NEEDS

EGYPT’S POPULATION BREAKDOWN BY GENDER

REAL GDP GROWTH RATES

Preface:

Food is considered the most basic need for life. A very traditional list of basic needs would include food (including water), shelter and clothing. All governments around the work have been very attentive to the importance of providing food to their people. No matter the downturn in any country/ region or even on a global level, the food and beverage sector has always been among the most stable and resilient sectors.

The Egyptian economy is one of the most developed and diversified economies in Africa and the Middle East. It has a population of around 90 mn (87.96 mn on 1/1/2015), where approximately 60% is under the age of 30 and only 5% above the age of 60. This extremely young and dynamic population is a powerful catalyst for social and economic development.

On the political front, Egypt is progressing steadily towards building its democratic institutions and political system. The political roadmap that was initiated by the Egyptian president Abdel Fattah El Sisi on July 2013 was completed in January 2016 where the House of Representatives convened for the first time. The political stability and the recent economic reforms implemented by the Egyptian government drove the real GDP growth in the last several years. Egypt achieved real GDP growth rates of 2.10%, 2.20% and 4.20% for FY2012/13, FY2013/14 and FY2014/15 respectively.

51% 49% Males

Females

7%

32%

30%

20%

11%

60+

30 - 59

15 -29

5 -- 14

0 --4

1,207 1,372

1,576 1,844

2,102 2,430

5.10%

1.80%

2.20% 2.10% 2.20%

4.20%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%

0

500

1,000

1,500

2,000

2,500

3,000

FY10a FY11a FY12a FY13a FY14a FY15a

GDP at market prices Real GDP Growth (%)

EGP Bn

5


FEBRUARY, 2016

SOURCE: POPULATION REFERENCE BUREAU - 2015

SOURCE: CBE & PRIME ESTIMATES

EGYPT’S POPULATION

FERTILITY RATES – BIRTHS PER 1,000 POPULATION

Macro Overview on Egypt:

Various factors determine the attractiveness of the F&B sector in any given country. Egypt has many favorable factors that make it a perfect destination for existing companies to expand and for new entrants to penetrate. On the other hand, Egypt has many pitfalls from the economic, social and regulatory perspectives that may impede the development of any sector, including the F&B.

The following factors show why Egypt has one of the most attractive and promising F&B sectors on a regional and international scale.

1) Large, Young and Dynamic Population:

Egypt is the most populous country in the MENA region and the third in Africa, after Nigeria (179 mn) and Ethiopia (101 mn). Egypt had approximately 87.96 million citizens living in Egypt in January 2015 with a historical average growth rate of 2.3% since 2005.

70.00 71.35

72.94 74.44 76.10 77.84

79.62 81.57

83.67 85.78

87.96

2.0% 1.9%

2.2% 2.1%

2.2% 2.3% 2.3% 2.4% 2.6% 2.5% 2.5%

1.0% 1.2% 1.4% 1.6% 1.8% 2.0% 2.2% 2.4% 2.6% 2.8%

65

70

75

80

85

90

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

Population (mn) Growth Rate

Year 2010 2011 2012 2013 2014 2015* 2016 f 2017 f 2018 f 2018 f 2019 f 2020 f

Population (mn) 77.840 79.618 81.567 83.667 85.783 87.963 90.127 92.373 94.692 97.052 99.469 101.945

Growth Rate (Prime Estimates) 2.30% 2.30% 2.40% 2.60% 2.50% 2.50% 2.46% 2.49% 2.51% 2.49% 2.49% 2.49%

Egypt has one of the highest fertility rates when compared to many other developing or developed countries, with an average of 31.3 births per 1,000 of the population. (Source: CAPMAS).

Moreover, Egypt has a rising rate of natural increase - the difference between Births and Deaths. It is expected that Egypt’s population will reach 100 mn by 2019/2020.

11

20

22

31

34

0 10 20 30 40

More Devloped

World

Less Developed

EGYPT *

Least Developed

11

12

18

18

18

31

36

0 10 20 30 40

Europe

North America

Latin America

Asia

Oceana

EGYPT *

Africa

Mn

6


FEBRUARY, 2016

SOURCE: CAPMAS

EGYPT’S POPULATION BREAKDOWN – BY AGE

NATURAL INCREASE IN EGYPT’S POPULATION

URBANIZATION RATE IN EGYPT

15

17

19

21

23

25

27

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Number Rate

Egypt is witnessing an increase in the urbanization rate as a result of the rising income levels and most of the job opportunities being located mainly in the greater Cairo and Alexandria.

33

35

37

39

41

43

45

1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

35

38

41 42

43 44 44

43 43 43 43 43

Egypt has one of the world’s most youthful populations, where approximately 60% is under the age of 30 and only 5% is above the age of 60. This extremely young and dynamic population gives the country’s future prospects an undeniable strength.

1%

1%

2%

3%

4%

4%

5%

5%

6%

8%

10%

10%

10%

9%

11%

11%

75 ++

70 -- 74

65 --69

60 -- 64

55 --59

50 --54

45 --49

40 --44

35 --39

30 --34

25 --29

20 -- 24

15 -- 19

10 --14

5 -- 9

0 -- 4

7%

32%

30%

20%

11%

60+ 30 - 59 15 -29 5 -- 14 0 --4

Per 1,000 of Pop. Per 1,000 of Pop.

%

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FEBRUARY, 2016

SOURCE: REUTERS & PRIME ESTIMATES

REAL GDP GROWTH RATES

Political Events in Egypt

Jan-11 * Egypt erupted in large-scale anti-regime demonstrations. * The resignation of President Hosni Mubarak * The collapse of the regime that had been in power for 30 years

Jun-12 * Dr. Mohamed Morsi, the candidate of the Freedom & Justice Party was elected as Egypt’s 5th president and the 1st from outside the military.

Jul-13 *President Morsi was removed. *Interim President Adly Mansour was sworn in.

Jun-14

*Presidential elections were held and Abdel Fattah El-Sisi was elected with almost 97% of the votes. * El-Sisi was sworn into office as president on June 8, 2014.

2) Slightly Improving Economy:

The Egyptian economy has struggled severely in the last several years. This has been the result of the political turmoil that has started in 2011. Since mid-2014, the economic and political scene started to witness some improvement. This has been reflected in all aspects of the economy. Real GDP growth rates started to improve, where it recorded 2.20% and 4.20% for FY2013/14 and FY 2014/15 respectively.

S&P Long-term Issuer Rating (Foreign)

S&P Long-term Issuer Rating (Domestic)

Moody's Long-term

Issuer Rating (Foreign)

Moody's Long-term

Issuer Rating (Domestic)

Fitch Long-term Issuer

Default Rating (Foreign)

Fitch Long-term Issuer

Default Rating (Domestic)

B- 15-Nov-2013 B- 15-Nov-2013 B3 07-Apr-2015 B3 07-Apr-2015 B 19-Dec-2014 B 19-Dec-2014

CCC+ 09-May-2013 CCC+ 09-May-2013 Caa1 21-Mar-2013 Caa1 21-Mar-2013 B- 05-Jul-2013 B- 05-Jul-2013

B- 24-Dec-2012 B- 24-Dec-2012 B3 12-Feb-2013 B3 12-Feb-2013 B 30-Jan-2013 B 30-Jan-2013

B 10-Feb-2012 B 10-Feb-2012 B2 21-Dec-2011 B2 21-Dec-2011 B+ 15-Jun-2012 B+ 15-Jun-2012

B+ 24-Nov-2011 B+ 24-Nov-2011 B1 27-Oct-2011 B1 27-Oct-2011 BB- 30-Dec-2011 BB 30-Dec-2011

BB- 18-Oct-2011 BB- 18-Oct-2011 Ba3 16-Mar-2011 Ba3 16-Mar-2011 BB 03-Feb-2011 BB+ 03-Feb-2011

BB 01-Feb-2011 BB+ 01-Feb-2011 Ba2 31-Jan-2011 Ba2 31-Jan-2011 BB+ 14-Dec-2005 BBB- 18-Aug-2008

BB+ 22-May-2002 BBB- 22-Aug-2003 Ba1 28-Jul-1999 Ba1 23-Jun-2008 BBB 14-Dec-2005

BBB- 15-Jan-1997 BBB 22-May-2002 Baa1 28-Nov-2001

BBB+ 22-Jun-2001

A- 15-Jan-1997

Furthermore, the international credit ratings agencies started to upgrade the ratings for Egypt and its long-term sovereign debt. The government started to announce many initiatives (1 mn houses), reforms and mega-projects (EEIC - The New Suez Canal – The New Tax System – The Investment Law –SMEs Initiative, New Monetary & Fiscal Policies) that enhanced the sentiment locally and globally.

1206.6

2429.80 5.10%

4.20%

1.50%

3.00%

4.50%

6.00%

0

500

1000

1500

2000

2500

3000

FY10a FY11a FY12a FY13a FY14a FY15a

GDP at market prices Real GDP Growth (%)

EGP Bn. %

8


FEBRUARY, 2016

SOURCE: CAPMAS, CBE, REUTERS, BLOOMBERG, PRIME ESTIMATES

SUEZ CANAL REVENUES

It is worthy to note that 2015 was not a very pleasant year for Egypt; decreasing Suez Canal revenues, declining Tourism revenues, FX shortage, Energy Crisis. On the bright side, FDIs increased in 2015, on the back of the EEIC and the huge support by the GCC countries; namely Saudi Arabia, Kuwait and the UAE.

The FX shortage and the Energy crisis were the main two dilemmas that had a huge impact on the economy. Many factories were shut down as they were not supplied by natural gas and many producers could not purchase any of their imported raw materials, whether from the official market or the parallel market.

The top sectors that were affected by the Energy crisis were Cement, Steel and Fertilizers. Pharmaceuticals and F&B were mainly affected by the FX Shortage. Some sectors, such as Automotive were unfortunately affected by both, the energy crisis and FX shortage.

The CBE tried to manage the FX shortage by giving priorities to some sectors. The CBE gave the top priorities to: 1) Pharmaceuticals 2) Food & Beverage and 3) Raw Materials.

Large food producers were able to obtain the required FX to a large extent, however according to some officials it took them almost double the time to get it. For Example, Juhayna and Edita have very good connections with banks and they were able to get the required FX in 2015, however it took them 4 weeks instead of 2 to get the required amounts.

Suez Canal Revenues:

Tourism Revenues:

Foreign Direct Investments - FDI:

434.8

382

420.1

422.1

449.6

431.6 437.7

462.1 448.8 449.2

408.4

429

350

370

390

410

430

450

470

Jan. 2015 Feb. 2015 Mar. 2015 Apr. 2015 May. 2015 Jun. 2015 Jul. 2015 Aug. 2015 Sep. 2015 Oct. 2015 Nov. 2015 Dec. 2015

Suez Canal Revenues (USD Mn.) USD Mn.

5175

5465

5,000

5,100

5,200

5,300

5,400

5,500

2015 2014

Revenues (USD Bn.)

17483

17148

16,000

16,500

17,000

17,500

18,000

2015 2014

No. of Passing Ships No.

678 640

835

924 895

820

912 915

802

909

559 642 617

755

860

768 786

886

998

884

1003

898

782

400

500

600

700

800

900

1000

1100

Jan. Feb Mar Apr May Jun Jul Aug Sep Oct Nov* Dec* 2015 2014

Number of Tourists Arrivals ('000s) '000s

1,656 509 428 701

407

3,902

6,111

11,053

13,237

8,113 6,758

2,189

3,982

3,005

4,119

6,371

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000 Direct Investment in Egypt (Net FDIs - USD Mn)

USD Bn.

USD Mn.

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FEBRUARY, 2016

SOURCE: PRIME ESTIMATES

SOURCE: IMF

Growth of real GDP should be around 4% per year in the medium-term as political stability improves, economic reform progresses and investment rises. As for the long-term, Egypt is expected to have quiet solid real growth rates such as that of pre-2011 (6-8% per annum) in the 2020-2025 period.

GDP Breakdown by Expenditures

EGP billion FY10a FY11a FY12a FY13a FY14a FY15a FY16f FY17f FY18f

GDP at market prices 1206.6 1371.8 1576 1843.80 2101.90 2429.80 2805.45 3237.16 3744.07

Real GDP Growth (%) 5.10% 1.80% 2.20% 2.10% 2.20% 4.20% 3.70% 3.89% 4.55%

Private Consumption 899.8 1035.9 1271.0 1486.1 1738.5 1998.3 2298.0 2619.8 3012.7

Real Growth (%) 4.10% 4.50% 6.50% 7.83% 4.06% 2.77% 3.56% 3.15% 3.18%

Government Consumption 134.7 155 179.0 211.2 252.4 287.4 330.5 373.5 418.3

Real Growth (%) 4.50% 3.80% 3.10% 8.66% 6.63% 7.04% 6.85% 6.35% 5.08%

Investment 235.3 234.5 258.0 264.4 290.6 349.2 408.6 478.0 559.3 Real Growth (%) 8.00% -4.40% 5.80% -4.77% 1.71% 8.60% 7.40% 10.26% 9.92%

Net Exports (63.2) (53.6) (132.0) (117.9) (179.6) (205.1) (231.7) (234.1) (246.2) Real Growth (%) -10.03% 29.42% 1.88% 13.17% 11.25% 3.16%

Exports 257.6 282.0 275.0 316.6 303.4 320.9 304.9 329.2 362.2 Real Growth (%) -3.00% 4.60% -2.30% 5.61% -11.86% -0.35% -22.05% -3.01% 5.00%

Imports 320.8 335.6 407.0 434.5 483.0 526.0 536.5 563.3 608.4 Real Growth (%) -3.20% 7.50% 10.80% 0.52% 0.17% 0.49% -8.60% 3.73% 4.07%

Figures are nominal and in billion of Egyptian pounds, growth rates are real

3) Growing GDP Per Capita:

GDP per Capita has always been a more reliable indicator than GDP, as it reveals the true picture of the country’s economic health and is far better when comparing the country’s economic health over time.

The GDP per capita in Egypt is considered very low, compared to other countries in the MENA region and Africa. From a “real” GDP per capita perspective, Egyptians have suffered from a drop during the 2011-2014 period. On a positive note, the IMF predicts a clear improvement in the GDP per capita for the period 2015-2020.

Qatar

Kuwait United Arab Emirates

Bahrain Saudi Arabia Oman Lebanon

Libya Iraq Algeria Jordan Tunisia Morocco Egypt Sudan Yemen 0

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

100,000

0 2 4 6 8 10 12 14 16

GDP Per Capita - USD - 2014 - MENA

Angola

Botswana

Cabo Verde

Cameroon Chad

Republic of Congo

Gabon

Kenya

Nigeria

Seychelles

Swaziland

Zimbabwe

Egypt

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0 2 4 6 8 10 12 14

GDP Per Capita - USD- 2014 - Africa

USD

USD

10


FEBRUARY, 2016

SOURCE: IMF

SOURCE: IMF

SOURCE: IMF & WORLD BANK & CAPMAS

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

GDP per Capita, Constant Prices - EGP 19,237 19,170 19,121 18,992 18,955 19,363 19,792 20,272 20,806 21,409 22,045

y-o-y Change

-0.35% -0.26% -0.67% -0.19% 2.15% 2.22% 2.43% 2.63% 2.90% 2.97% GDP per Capita,

Current Prices - EGP 15,326 17,053 19,120 20,700 23,040 26,126 29,097 32,893 36,825 40,748 44,889

y-o-y Change

11.27% 12.12% 8.26% 11.31% 13.39% 11.37% 13.05% 11.95% 10.65% 10.16%

4) Slightly Improving Disposable Income … Yet Still Weak Social Justice:

Egypt is considered a middle-income country. More than 22% of the total population live in poverty. Poverty is more dominant in certain regions of the country; almost 50% of the people residing in Upper Egypt cannot provide the basic needs of food. Egypt suffers from income inequality as they highest 20% of the population earns more than 40% of the country’s total income.

The disposable income has slightly improved in the last several years, however sometimes the effect of rising inflation surpasses the rise in income. Egyptians place a high priority on food, as they spend around 38% of their income on food, which represents the highest threshold.

224,196

250,082

271,270

284,593

293,030

200,000

210,000

220,000

230,000

240,000

250,000

260,000

270,000

280,000

290,000

300,000

2012 2013 2014 2015 2016

Annual Disposable Income (USD million) USD Mn.

40.33%

13.01% 16.37%

21.04%

9.25%

Income Distribtuion by Quintiles - Egypt 2008

1st 20%

2nd 20%

3rd 20%

4th 20%

5th 20%

Annual Average of Household Expenditure by Expenditure Groups %

Food & Non-Alcoholic Beverages 38%

Alcholic Beverages & Tobacco 4%

Clothing & Footwear 5%

Housing, Electricity, Water, Gas & Other Fuels 18%

Furniture & Equipment 4%

Health 9%

Transport 5%

Communication 2%

Recreation & Culture 2%

Education 4%

Restaurants & Hotels 4%

Others 3%

13,458 20,254 25,353 30,492

0 10,000 20,000 30,000 40,000

Total Urban Rural Total Urban Rural Total Urban Rural Total Urban Rural

2004/2005 2008/2009 2010/2011 2012/2013

Annual Average of Household Income EGP/Annum

11


FEBRUARY, 2016

SOURCE: CBE

5) High Consumption & Expenditure on Food:

Food consumption is rising rapidly from a quiet low base. Demand for food is expected to rise as income rises. Most of the sub-sectors offer very strong potential, as the per capita consumption in Egypt is relatively low compared to other countries. Food consumption is expected to grow rapidly (at a double-digit rate) in the medium-term. The rapid increase is mainly driven by high inflation. The increase will also be fueled by favorable demographic trends and investments by local, regional and international investors.

On the other hand, one of the main threats that food producers face is that the consumer base is very price-sensitive and is quiet inelastic. Producers are sometimes not able to transfer any increase in costs to the consumers, leading to the shrinkage of their margins.

Food Consumption Indicators - Historical Data & Forecasts, 2011-2018

2011 2012 2013e 2014f 2015f 2016f 2017f 2018f

Food Consumption EGP Bn 256 299 335 378 431 491 555 621

Food Consumption,Food consumption, EGP, % chg y-o-y 14 17 12 13 14 14 13 12

Food Consumption,EGP per capita 3,220 3,705 4,082 4,532 5,084 5,709 6,362 7,016

Food Consumption,EGP per capita, % chg y-o-y 12 15 10 11 12 12 11 10

SOURCE: BMI

6) Globalization of Food Tastes:

The consumption and lifestyle trends have changed dramatically in Egypt in the last decade. This change is more obvious in the youth, as they are more aware of the international trends through the internet and social media. This is referred to as “The Westernization of Lifestyles”. Also the concept of “Dining Out” has been more common than before, given that income has been on the rise, more women have entered the workforce and people have much busier lifestyles. High income segments are becoming increasingly brand conscious and thus some brands are starting to benefit from “Brand Loyalty” This gives food producers and food chain a great opportunity to grab new and larger shares of this growing sector.

7) Slow Recovery of Tourism:

Tourism is of great importance to the Egyptian economy. In FY2014/15, tourism contributed around 2% to the GDP. Tourism is one of the main sources of FX, besides the Suez Canal and Oil Exports. Also tourism employs a large share of the population. Egypt attracts tourists from around the world; however Europeans and Arabs are on top of the list.

Tourism has been hit severely after the 2011 revolution, on the back of the political instability and the lack of security, Tourism started to pick up mid-2013 due to the political stability and the government carrying out several international campaigns with international agencies, urging tourists from all over the world to come visit Egypt.

11%

13%

17%

2%

Tourism , 2%

56%

GDP FY2014/2015 - By Sector - %

Agriculture, Forests & Fishing

Extractions (Oil & Gas)

Manufacturing Industries

Electricity

Tourism

Others

12


FEBRUARY, 2016

SOURCE: CBE

SOURCE: REUTERS

In general, the F&B sector is not directly affected by Tourism, as the majority is consumed domestically. Even the political turmoil has not affected the consumption patterns of Egyptians; as Hypermarkets and retail outlets reported higher sales during the peak of the political instability – 2011- 2013.

It is worthy to note that there are a few sub-sectors that are strongly-correlated with tourism, such as Alcoholic Beverages.

76%

13%

5% 3% 3% 0.2%

Natioanlity of Tourists - 2013/2014 - %

European Countries

Middle East Countries

African Countries

Americas

Asia & the Pacific

Egypt started 2015 with positive growth in y-o-y arrival numbers from January to July; however the tourism sector was slightly affected by the decline in the purchasing power of Russian tourists (main users of Egypt’s RED Sea resorts and hotels).

Arrivals started to weaken in August. Since September, 3 main incidents occurred – 2 domestic and 1 international – that had an extremely negative outcome on tourism.

These incidents led to a drop in the annual revenues from tourism to reach USD 6.1bn in 2015, as compared to USD 7.4bn in 2014; a 15% drop. Also the number of tourists’ arrivals dropped in 2015 by 6% reaching 9.3mn, against 9.9mn in 2014. The December official figures are not yet announced, however the estimates show that revenues dropped by almost 50% and December could be considered the third weakest month with respect to tourism revenues since January 2011. Egypt has lost around EGP 2.2bn per month as a result of the Russian and British airline bans.

We believe that tourism will start to pick up gradually in the coming years, however at a slow rate and that it would take several years till it gets back to the pre-2011 levels.

Incidents that Affected Tourism in Egypt

Sep. 15

The Egyptian military accidentally attacked a convoy of Mexican tourists in the Western Desert, killing 12 people.

Nov. 15

A Russian passenger plane crashed in the Sinai peninsula, killing all 224 people on board. The attack was claimed by the Islamic State, and Russia and several other countries concluded the crash was due to terrorism, although Egypt has denied the airplane was brought down by foul play.

Nov. 15

A series of coordinated terrorist attacks occurred in Paris. Three suicide bombers struck near the Stade de France in Saint-Denis, followed by suicide bombings and mass shootings at cafés, restaurants and a music venue in central Paris. The attackers killed 130 people.

200

400

600

800

1000

1200

No. of Tourist Arrivals - 2011-2015 - '000s

‘000s

13


FEBRUARY, 2016

SOURCE: REUTERS, CBE, PRIME ESTIMATES

SOURCE: CAPMAS

9,751.8

5,073.3

7,370

5,900

7,800

4,000.0

5,000.0

6,000.0

7,000.0

8,000.0

9,000.0

10,000.0

11,000.0

FY12/13a FY13/14a FY 14/15a FY 15/16f FY16/17f

Tourism Revenues - USD Million

678 640

835

924

895

820

912 915

802

909

559 642 617

755

860

768 786

886

998

884

1003

898

782

400

500

600

700

800

900

1000

1100

Jan. Feb Mar Apr May Jun Jul Aug Sep Oct Nov* Dec*

2015 2014

Number of Tourists Arrivals ('000s) '000s

8) Geographic Location & Trade Agreements:

Egypt benefits from an outstanding geographic location that helps it act as a major player in carrying out regional and international agreements. Egypt has favorable free-trade agreements with neighboring countries from the MENA region, Africa and most of the EU countries. Egypt is a major exporter of fruits, vegetables, juices, herbs and processed foods. Egypt has a balance of trade deficit in general and in the F&B sector in specific.

Other than the outstanding location, Egypt has a relative low cost of labor which makes many multinational companies consider Egypt as a key hub for regional exports. Exports to the Euro-countries – EU – have been on the rise, as a result of the very flexible trade agreements between the 2 groups. According to the terms of the free trade agreements, the EU has free access to the Egyptian market for around 90% of their agricultural and fisheries exports, while around 70% of Egyptian agricultural products have free entry to the EU. The political turmoil in many of the neighboring countries has had an effect on Egypt export markets, such as Libya, Iraq and Sudan.

-400,000 -300,000 -200,000 -100,000

0 100,000 200,000 300,000 400,000 500,000 600,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Exports Imports Trade Balance

Exports, Imports & Trade Balance - EGP mn - 2004 - 2014

-15,000

-10,000

-5,000

0

5,000

10,000

15,000

20,000

25,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Exports Imports Trade Balance

Exports, Imports & Trade Balance - Food & Beverage & Tobacco - EGP mn - 2004 - 2014

USD Mn.

EGP Mn.

EGP Mn.

14


FEBRUARY, 2016

SOURCE: BLOOMBERG, CBE & PRIME ESTIMATES

SOURCE: CAPMAS

Despite the opportunities prevailing in the Egyptian market, there are some risks that may impose some obstacles in the F&B Sector:

1) High Inflation:

Egypt suffers from high inflation. The average CPI rate in 2014 and 2015 was a double-digit figure, 10.2% which is relatively high. Food and Beverages represent around 40% of the CPI rate. Food & Beverages prices are known for being very volatile as they are affected by seasonality and climatic conditions (fruits & vegetables). Even though the CBE and the government prioritize curbing inflation, we expect that the Egypt will pertain to suffer from double digit inflation rates till FY2017.

2

4

6

8

10

12

14

8/1/2

010

12/1/

2010

4/1/2

011

8/1/2

011

12/1/

2011

4/1/2

012

8/1/2

012

12/1/

2012

4/1/2

013

8/1/2

013

12/1/

2013

4/1/2

014

8/1/2

014

12/1/

2014

4/1/2

015

8/1/2

015

Annual Consumer Inflation %

%

40%

Headline CPI Constituents - % Food and Beverages

Housing, Water, Electricity, Gas and other Fuels Medical Care

Transportation

Clothing and Footwear

Education

Cafes and Restaurants

Hotels Furnishings, Household Equipment

Miscellaneous Goods and Services

Communications

Recreation and Culture

Tobacco and Related Products

11.0%

8.7%

6.9%

10.1% 11.0%

9.9%

10.5%

9.8%

10.5%

9.0% 9.5%

10.1% 10.4%

10.5%

9.9% 9.7%

6.50%

7.50%

8.50%

9.50%

10.50%

2011a 2012a 2013a 2014a 2015a 2016f 2017f 2018f CPI Inflation Anuual Average (Fiscal Years) CPI Inflation Anuual Average (Calendar Years)

%

2) High Unemployment:

High unemployment remains a threat to the local market development. Unemployment hiked after the 2011 revolution, as many companies had to downsize and terminate some workers/employees, or even close their operations and file for bankruptcy. Egypt’s unemployment reached a double-digit figure in 2011 and remained in the same category since then.

0

5000

10000

15000

20000

25000

30000

Labor Force Employed Unemployed

27686 24122

3564

‘000s

15


FEBRUARY, 2016

SOURCE: BLOOMBERG, CBE & PRIME ESTIMATES

Employed

Males

Females

Unemployed

Males

Females

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

Q1 F

Y08

Q2

FY08

Q3F

Y08

Q4

FY08

Q1 F

Y09

Q2

FY09

Q3F

Y09

Q4

FY09

Q1 F

Y10

Q2

FY10

Q3F

Y10

Q4

FY10

Q1 F

Y11

Q2

FY11

Q3F

Y11

Q4

FY11

Q1 F

Y12

Q2

FY12

Q3F

Y12

Q4

FY12

Q1 F

Y13

Q2

FY13

Q3F

Y13

Q4

FY13

Q1 F

Y14

Q2

FY14

Q3F

Y14

Q4

FY14

Q1 F

Y15

Q2

FY15

Q3F

Y15

Q4

FY15

Q1 F

Y16

Q2

FY16

8.90%

11.90% 12.77%

Unemployment Rate % %

In January, 2016, Al- Sisi pledged to reduce unemployment to 10 % over the next five years, while announcing the SME initiative. Furthermore, the participation ratio in Egypt is very low compared to other countries due to the fact that most of the population is below the age of 30. In the medium-term the participation rate will gradually rise as new generations will join the workforce, in addition to a large share of women joining the workforce as well.

3) Ambiguity in the Monetary Policy, Exchange Rates & FX Unavailability:

The FX shortage and the Energy crisis were the main risks that hindered the Egyptian economy in 2015. Egypt relies heavily on imports as in raw materials and finished goods. Reserves stood at about USD 36bn before the 2011 revolt that ousted Hosni Mubarak. Foreign international reserves reached USD 16.44bn in Dec. 2015. This had a negative impact on the economy, as investors feared to penetrate the market and businesses could not import any of the imported raw materials which halted their operations. Another impediment that affected the Egyptian economy is the “lack a clear monetary policy” in general and the devaluation of the Egyptian Pound in specific. Many emerging markets have devaluated their currencies against the USD in 2015, such as China and Vietnam. The CBE devaluated the EGP against the USD several times in 2015. In the medium-term, we expect that the CBE will have to further devaluate the EGP in order to attract investors, curb imports and flourish exports.

5.96 6.01 6.6

7.15 7.63

8.53 9.04

9.4

5 5.5

6 6.5

7 7.5

8 8.5

9 9.5 10

FY11a FY12a FY13a FY14a FY15a FY16f FY17f FY18f

EGP/USD Rate

7.00 7.20 7.40 7.60 7.80 8.00 8.20

EGP / USD Rate 2015

16


FEBRUARY, 2016

SOURCE: BLOOMBERG

4) Reliance on Imported Raw Materials in the Production Process:

Egypt relies heavily on importing raw materials. Many commodity prices have declined severely in 2015 such as crude oil, sugar, copper, steel and powder milk. The rise of commodity prices represents a huge risk for producers. Sometimes the severe drop in international prices can lead to unfair competition between local and international producers, where local producers are not able to compete with the extremely new prices – e.g. Sugar.

160

170

180

190

200

210

220

230

240

CRB Index - 2015

5) VAT Tax & Higher Cost of Living:

Egypt's government has announced on several occasions since 2007 that it is going to implement the VAT in order to increase fiscal revenues, but the decision has been repeatedly postponed. Egypt’s government is expected to finalize a bill on a value added tax (VAT) by the end of 1Q 2016 and present it to the House of Representatives. The VAT will be fixed at a unified rate between 10 - 12 % and will be imposed on all goods and services with a few exceptions such as subsidized food stuffs like oil , dairy and wheat. The application of the VAT is expected to lead to inflation as the price level of most goods will increase. Consequently, this will lead to lower disposable income and people would have less money to spend on goods and services.

Egypt’s F&B Sector:

The F&B sector has witnessed lots of changes in 2015, as 2015 has been referred to as “The year of M&As”. Another important event was the very successful IPO of Edita Food Industries. In the coming years, the food & beverage industry will change even further. We expect it to become more concentrated and many regional and international players will penetrate the market, benefiting from their large capital and extensive know-how.

Date Transaction

Jan-15 Kellogg acquired Bisco Misr for USD 87mn.

Feb-15 Qalaa announced that it is willing to sell Dina Farms and it put it on the auction block for an estimated value of EGP 700mn. Abraaj, Savola, Al Marai have shown interest.

Mar-15 Pioneers acquired Arab Dairy for EGP 257 mn. The company is best known for its “Panda Cheese”.

Apr-15 Edita Food Industries held its IPO on the EGX and the London Stock Exchange. The share rose 16.2% in the 1st month. The institutional offering was covered 13.4x and the retail offering was covered 4.5x.

May-15 Juhayna Food Industries annoucned it will form a VC with Denmark's Arla Foods that will be 51% owned by Juhayna and managed by Arla. The VC, ArJu Food Industries, will add cheese, butter and infant formula to Juhayna's existing product lines.

Jun-15 Arabian Food Industry Co. - best known for owning Domty - announced that it is planning to list 40% of its shares on the EGX in 1Q 2016.

17


FEBRUARY, 2016

Date Transaction (Cont’d)

Sep-15 Kellogg acquired Mass Food for USD 50mn. Mass Food is the sole producer of Temmy's Cereal and Nutrifit Brands.

Nov-15 Olayan Financing Co. acquired Rashidi El Mizan for EGP 518mn, which was owned by Qalaa Agrifoods Business Unit Gozour

Dec-15

Kamal Hagag acquired Misr October for Food Industries (El Misrieen) for EGP 50mn. El Misrieen was owned by Qalaa Agrifoods Business Unit Gozour

Qalaa announced that it is willing to sell Enjoy. It hired Pharos as the advisor for the transaction and it started the due diligence process.

Danone acquired Halayeb Company for Dairy Products for EGP 120mn. The company owns the Kateelo Milk Brand.

Beyti announced its plans to invest EGP 4bn to build a new juice plant and two dairy farms.

Lulu hypermarkets, which owns 118 hypermarkets in the region, opened a new 170,000 square feet branch in New Cairo. The retailer announced that it will open another 10 branches in Egypt at a total investment cost of EGP 3bn investment in the coming 5 years.

- SWOT Analysis for the F&B Sector in Egypt:

STRENGTHS WEAKNESSES

* Egypt is the largest and most-dynamic country in the region, with a population of around 90mn. * Low absolute figures of consumption per capita for food.

* Food consumption is increasing from a very low base. * Majority of the population are considered poor.

* Very good location with respect to Europe, Asia and Africa. * Tourism is at one of its lowest periods, where a slow recovery is expected and it could last several years.

* Favorable trade agreements with the EU, GCC and African countries.

* Competition is very high between companies, it could lead to fierce price wars and consequently companies would have to shrink their margins.

* Low labor costs

* F&B on top of income expenditure

*Low self-sufficiency in majority of sub-sectors. This may lead to an unfair competition with international markets that may offer their products at prices lower than the domestically produced, eg. Sugar

* Rising GDP per capita and disposable income.

* Development of new niche markets, where higher margins can be attained. *Reliance on imported raw materials.

* Youth are increasingly becoming brand consciousness and they are aware of international trends. * Low barriers to entry make it difficult to attain long-term profits.

18


FEBRUARY, 2016

SOURCE: EGX – PRICES AS OF FEB 18TH 2016

OPPORTUNITIES THREATS

* Increasing consumption per capita for most food items. * Prices of commodities / raw materials may rise and consequently shrink the producers' margins.

* Income is expected to rise as well as demand for food. * Persistence of high inflation

* High income segments tend to associate food, cafes, dining places with class and public image.

* Political turmoil in the neighboring countries which represent a large share of the export base.

* Rising health awareness will have an effect on consumer choices

* Devaluation would make the imported raw materials more expensive for the producers.

* Application of the VAT Tax may lead to inflation, which will consequently decrease the disposable income.

* High unemployment.

The Food & Beverage on the EGX:

The F&B Sector on the EGX is a quiet small sector, compromising around 9% of the total value, 2% of the total volume and 8% of total market cap. The sector has a P/E ratio of 17.15x and a Dividend Yield of 11.51%. The sector is considered non-cyclic and will further expand in the coming years. The F&B sector has a low beta (0.69) as it is less volatile than the market, thus we believe investors should be exposed to it.

Sector Name % of Total Value % of Total Volume % of Total Market Cap

Banks 9.08 0.89 26.80

Real Estate 25.69 24.57 15.49

Telecommunications 17.34 33.00 11.51

Financial Services excluding Banks 17.16 22.57 9.17

Food and Beverage 8.77 2.14 8.15

Industrial Goods and Services and Automobiles 6.50 5.44 7.79

Construction and Materials 3.54 3.42 6.55

Personal and Household Products 2.56 2.56 4.29

Basic Resources 4.27 1.71 3.14

Travel & Leisure 3.36 2.55 2.73

Chemicals 0.71 0.39 2.62

Oil and Gas 0.24 0.15 0.70

Technology 0.42 0.23 0.55

Media 0.02 0.02 0.16

Healthcare and Pharmaceuticals 0.16 0.34 0.12

Utilities 0.07 0.01 0.12

Retail 0.12 0.02 0.10

19


FEBRUARY, 2016

Since 2010, the F&B Sector has had 2 of the most successful IPOs; Juhayna Food Industries & Edita Food Industries (EFID.CA). In 2H 2015, Arabian Food Industry Co., best known for Domty announced that it is planning to list 40% of its shares on the EGX by 1Q 2016.

Major IPOs – 2010 – 2015:

- Orascom Construction – (ORAS.CA) - IPO - March 2015:

Stock Return - 6M After IPO (%) -1% Stock Return - Since Inception (%) -50%

EGX 30 Return - 6M After IPO (%) -17.%

EGX 30 Return - Since Stock Inception (%) -38%

80

90

100

110

120

130

140

ORAS.CA EGX 30 Rebased

- Emaar Misr for Development - (EMFD.CA) - IPO - July 2015:

Stock Return - 6M After IPO (%) -27.16%

Stock Return - Since Inception (%) -45%

EGX 30 Return - 6M After IPO (%) -16.80%

EGX 30 Return – Since Stock Inception (%) -27%

2

2.5

3

3.5

4

4.5

EMFD.CA EGX 30 Rebased

EGP

EGP

20


FEBRUARY, 2016

- Juhayna Food Industries – (JUFO.CA) - IPO - June 2010:

Stock Return - 6M After IPO (%) 28.75%

Stock Return - Since Inception (%) 107%

EGX 30 Return - 6M After IPO (%) 7.04%


2.5

2.7

2.9

3.1

3.3

3.5

3.7

3.9

4.1

4.3

JUFO.CA EGX 30 Rebased

- Qalaa Holding - (CCAP.CA) - IPO - December 2009:





6

8

10

12

14

16

18

CCAP.CA EGX 30 Rebased

EGP

EGP

21


FEBRUARY, 2016

- Palm Hills Development Company – (PHDC.CA) – April 2008:





4

5

6

7

8

9

10

PHDC.CA EGX 30 - Rebased

- Arabian Cement (ARCC.CA) – May 2014:

Stock Return - 6M After IPO (%) 67.69% Stock Return - Since Inception (%) -12%

EGX 30 Return - 6M After IPO (%) 3.98% EGX 30 Return - Since Stock Inception (%) -30%

6

7

8

9

10

11

12

13

14

15

16

ARCC.CA EGX 30 - Rebased

EGP

EGP

22


FEBRUARY, 2016

- Talaat Mostafa Group (TMGH.CA) – IPO – November 2007:





9

10

11

12

13

14

15

16

TMGH.CA EGX 30 - Rebased

- Amer Group (AMER.CA) – IPO – November 2010:





0.2

0.3

0.4

0.5

0.6

0.7

0.8

AMER.CA EGX 30 - Rebased

EGP

EGP

23


FEBRUARY, 2016

SOURCE: BLOOMBERG, PRICES AS OF 21/2/2016

SOURCE: BLOOMBERG, PRICES AS OF 21/2/2016

- Edita Food Industries (EFID.CA) – IPO –April 2015:

Stock Return - 6M After IPO (%) 44.63%

Stock Return - Since Inception (%) 32%



15

20

25

30

35

40

EFID.CA EGX 30 - Rebased

- Relative Valuation of Egypt’s F&B: As mentioned earlier, DCF Valuation for F&B stocks would usually show minimal potential, however comparing the stocks with its Regional and Global Peers would yield different results.

Using the Trailing P/E and P/B multiples, Juhayna is

considered an over-priced stock. Median global and

regional P/E stands at 18.13x and 13.27x, significantly

lower than Juhayna’s 22.82x. Also Juhayna is relatively

over-priced from the P/B perspective; Median global

and regional P/B stands at 1.29x and 1.27x,

significantly lower than Juhayna’s 2.64x. Leading

multiples are used more often than trailing multiples,

as they more indicative for the future prospect of the

company. Using the Leading P/E multiple, Juhayna is

found to be an under-valued stock as its 11.65x P/E

multiple is lower than that of the global (16.56x) and

regional peers (13.6x)

EGP

GLOBAL P/E – Trailing P/E – Leading (NY) P/B

Median 18.13x 16.56x 1.29x

JUFO.CA 22.82x 11.65x 2.64x

REGIONAL P/E – Trailing P/E – Leading (NY) P/B

Median 13.27x 13.6x 1.27x

JUFO.CA 22.82x 11.65x 2.64x

24


FEBRUARY, 2016

Juhayna Food Industries Co.:

Juhayna Food Industries is a leading producer and distributor of milk, juice and yoghurt products. The company was established in 1983 by Safwan Thabet along with a number of other founders, with a paid-in-capital of EGP 1.3mn. Production commenced in 1987 with a total production capacity of 35 tons per day and annual sales of EGP 2.4mn. Since 1983, and for more than 3 decades Juhayna has embarked a journey full of developments and expansions that distinguished it as a leading Egyptian producer of juice and dairy products. According to a study by Nielsen released early 2014, Juhayna holds Egypt’s highest brand-equity-index score, higher than the other leading multinational household and FMCG Brands in Egypt. Currently, its holds the largest market share in all of its products – plain milk (63%) – flavored milk (64%) – juice (20%) – drinkable yoghurt (35%) – spoonable yoghurt (33%) . Dairy is the largest contributor to Sales Revenue, followed by yoghurt, where they represented 52% and 25% respectively in 2015. The juice segment showed the highest y-o-y growth in sales (24%), due to the launching of the new juice brand – Premium-. Juhayna’s competitive edge is its strong brand equity, solid backward and forward integration and diverse set of products. Its main risks are the increasing competition from other companies (local, regional and international) and the rise in raw materials cost, namely powder milk.

- Ownership Structure:

Juhayna Food Industries started trading on the EGX in June 2010. On the IPO, the offering was up to 164,778,105 ordinary shares, each with a nominal value of EGP 1. The combined offering included a domestic offering to the public in Egypt, up to 41,194,527. These shares were offered through public (20%) and private placements (80%) and both were fully covered.

52.22% 46.93%

0.85%

JUFO Ownership Structure

Pharon Investments

Free Float

BoD

Currently the company has a paid-up-capital of EGP 941,405,082 distributed over 941,405,082 shares. As for the ownership structure, Pharon Investments holds 52.22%, the BoD holds 0.85% and the Free Float represents the remaining 46.93%

- BoD Structure & Management:

Safwan Thabet - Chairman & CEO -

Yasser

El Mallawany

Ziad

Bahaa El Din

Ahmed El Abin

Seif El Din Thabet

Mohamed El Dogheim

( Pharon Investments Ltd)

Akil Beshir

(Pharon Investments Ltd)

Heba Thabet ( Pharon

Investments Ltd)

Mariam Thabet ( Pharon

Investments Ltd)

25


FEBRUARY, 2016

- Timeline for Juhayna:

Timeline

1983 * Juhayna began operations in 1983 with a state-of-the-art manufacturing facility in the 6th of October City. * Juhayna was the first Egyptian company to partner with the global packaging giant, Tetra Pak (called Alfa-Laval at the time) and thus became a market pioneer in the market in producing packed milk, yoghurt and juice.

1987 * Juhayna introduced its first dairy and juice products in the Egyptian market, produced with global quality standards.

1988 * Juhayna began exporting its products and established a wide customer base in Europe and the Middle East.

1990 * Juhayna started the leadership and innovation journey by launching digestive drinkable yoghurt under the brand name “Rayeb”.

1991 * Juhayna became the exclusive supplier of dairy products to McDonald’s Egypt and entered into supply agreements with a number of leading global fast-food chains including Burger King, KFC and Pizza Hut. Juhayna is also the supplier of choice for hotels and airlines, such as Lufthansa & Egypt-Air.

2000 * Juhayna introduced the new Whipping Cream product, as one of its new innovations, for the first time in the Egyptian market.

2001 * Juhayna introduced the first fruit-flavored drinkable yoghurt product in the Egyptian market, under the name of “Zabado”

2005 * Juhayna started its vertical integration expansion plans & developing its manufacturing facilities in addition to establishing new facilities. The Group acquired El Masreya Company for Dairy and Juice Products, a factory that Juhayna enhanced to become solely devoted to producing its dairy products.

2010 * Juhayna’s shares were first traded on the Egyptian Exchange Market (EGX). The IPO was named the “Best African IPO” in 2010 by a leading international investment and communications group “Africa Investor”; in a joint summit with the New York Stock Exchange to promote investment on the continent.

2015 * Juhayna signed a strategic partnership agreement with “Arla Foods” – a Danish leader in dairy products –to form a VC under the name of “ArJu for Food Industries”. The new venture aims at improving the domestic distribution and production capacity of cheese, butter, infant milk and other high-quality products.

26


FEBRUARY, 2016

- Group Structure & Subsidiaries: The group operates a highly integrated business model through Juhayna Food Industries SAE and its 8 subsidiaries. The business is divided into 3 main arms. It operates through 5 segments: Dairy, Yoghurt, Juice, Concentrates and Agriculture.

Juhayna Food Industries S.A.E

Manufacturing Commercial & Distribution

Agriculture & Farming

Juhayna Food Industries SAE

Product Divisions

Dairy

Juhayna Food Industries

Masreya Dairy & Juice Company (El Masreya)

Yoghurt The Egyptian Company for Food Industries (Egyfood)

Juice International Company for Modern Food Industries

(El Dawleya)

Concnetrates

El Marwa Food Industries (El Marwa)

The Modern Concentrates Company

Centralized Business Divisions

Agriculture & Farming

Enmaa for Livestock Company

Enmaa for Reclamation and Agriculture

Milky's for Milk Production

Distribution, Sales &

Marketing Tiba for Trade & Distribution

27


FEBRUARY, 2016

Subsidiaries

1) Masreya Dairy and Juice Company – El Masreya - (Dairy):

- Authorized Capital: EGP 500mn. - Paid-Up Capital: EGP 100mn. - Juhayna Ownership: 99.9%.

2) International Company for Modern Food Industries – El Dawleya - (Juice): - Authorized Capital: EGP 1bn. - Paid-Up Capital: EGP 500mn. - Juhayna Ownership: 99.9% - Exempted from the Corporate Tax till

31/12/2018.*

3) The Egyptian Company for Food Industries (Egyfood) - (Yoghurt):

- Authorized Capital: EGP 1bn. - Paid-Up Capital: EGP 250mn - Juhayna Ownership: 99.9% - Exempted from the Corporate Tax till

31/12/2018.*

4) El-Marwa Food Industries (El-Marwa) - (Concentrates): - Authorized Capital: EGP 250mn. - Paid-Up Capital: EGP 100mn. - Juhayna Ownership: 99.9%

5) The Modern Concentrate Company - (Concentrates) - Authorized Capital: EGP 100mn. - Paid-Up Capital: EGP 100mn. - Juhayna Ownership: 99.8% - Exempted from the Corporate Tax till 31/12/2018.

6) Tiba for Trade & Distribution (Sales, Marketing & Distribution Activities): - Authorized Capital: EGP 500mn. - Paid-Up Capital: EGP 150mn. - Juhayna Ownership: 99.9%

7) Al-Enmaa for Agriculture Development and Live Stock Company: (Reclamation / Cultivation of Agricultural Land & Establishment of Dairy Farms): - Authorized Capital: EGP 1bn. -Paid-Up Capital: EGP 350mn. - Juhayna Ownership: 99.9% - Exempted from the Corporate Tax till 31/12/2018.* - 3 Main Subsidiaries:

i. Enmaa for Livestock Company – (Dairy Farm): 1. Authorized Capital: EGP 500mn. 2. Paid-Up Capital: EGP 100mn 3. Al-Enmaa for Agriculture Development and Live Stock Company Ownership:

99.9% ii. Enmaa for Reclamation and Agriculture (Reclaims land for the cultivation of fruits / cattle

feed and other agri. crops. 1. Authorized Capital: EGP 500mn. 2. Paid-Up Capital: EGP 100mn 3. Al-Enmaa for Agriculture Development and Live Stock Company Ownership:

99.9% iii. Milky’s for Milk Production: (Breeding cows for milk production)

1. Authorized Capital: EGP 500mn. 2. Paid-Up Capital: EGP 90mn 3. Al-Enmaa for Agriculture Development and Live Stock Company Ownership: 40 % 4. Juhayna Ownership: 39.9%

28


FEBRUARY, 2016

SOURCE: CAPMAS & IMF

- Some of the group’s subsidiaries (El Dawleya, EgyFood, and Modern Concentrates) benefit from a 10-year tax holiday that

was offered to some companies conducting business in designated Industrial Zones and New Urban Communities in Egypt. Enmaa is subject to a tax exemption for the following activities, as per the Income Tax Law: Land Reclamation and cultivation, livestock breeding, chicken production. It is also a 10-year tax holiday.

Production Plants Date of Establishment Main Products Capacity

Juhayna 1987 Dairy and other intermediate products. 1,000 tons per day.

El Masreya 2005 Dairy. 1,000 tons per day. El Dawleya 2009 Juice. 750 tons per day

El Marwa 1998 Concentrates – (mango, guava, peach and apricot) 300 tons per day

Modern Concentrates 2007 Concentrates – (citrus: lemon and orange) 720 tons per day

Egy Food I 2013 Yoghurt - (Spoonable & Drinkable) 80 tons per day

Egy Food II 2014 Yoghurt - (Spoonable & Drinkable) 700 tons per day

I. MANUFACTURING: The manufacturing segment is considered Juhayna’s main segment, where it is divided into 4 main sub-sectors: Dairy, Yoghurt, Juice and Concentrates.

1) Dairy Sector:

- Overview of the Egyptian Milk Market:

• The Egyptian dairy industry has witnessed a strong consumption growth rate since 2007. (CAGR 2007 – 2015: 14%). It is estimated that Egypt’s Dairy sales reached 432,123 tons in 2015.

• The Egyptian dairy market is underpenetrated as

Egyptians spend little of their income on dairy products – 13% on Milk, Cheese and Eggs.

• Egyptians tend to have very unhealthy diets, as they tend to have high levels of consumption per capita of unhealthy food items such as sugar, while on the other hand they tend to have relatively low levels of consumption per capita of healthy food items such as milk and yoghurt.

13%

29%

7% Milk, Cheese & Eggs , 13%

7%

7%

15%

4% 2% 4%

Annual Average of Household Expenditure on F&B - %

Bread & Cereals

Meat

Fish & Sea Food

Milk, Cheese & Eggs

Oils & Fats

Fruits

Vegetables

Sugar, Jam, Honey , Choc. & Conf.

Others

Sugar Consumption Per Capita

(KG / Annum)

Milk Consumption Per Capita

(KG/Annum)

Egypt 4 24

World 25 108

29


FEBRUARY, 2016

SOURCE: FAPRI

SOURCE: JUHAYNA

• Consumption per capita of milk is quiet low compared to other

countries.

91

88

68

64

44

32

25

13

0 20 40 60 80 100

United States

Russia

European Union

Brazil

India

Japan

Egypt

China

Fluid Milk Consumption Per Capita - 2015 - kg/annum

• Egyptian consumers are relatively more elastic to dairy than other countries. This imposes a huge risk for dairy producers.

-0.2

-0.2

-0.15

-0.12

-0.08

-0.06

-0.05

-0.04

-0.25 -0.2 -0.15 -0.1 -0.05 0

Brazil

Egypt

Russia

Argentina

China

European Union

Japan

India

Fluid Milk - Elasticity - Own Price

Egypt Fluid Milk Demand Income 0.4

Own-price -0.2

- The Egyptian milk market is highly fragmented, and till recently was mainly dominated by non-packaged (loose) products. Loose milk is transported to consumers via a milk peddler, who obtains milk directly from one of the small scale farms in rural areas and delivers it by a bicycle or a small van to the consumer. Before 2009, loose milk accounted for around 88% of the total supply of Egyptian milk. Research associated the consumption of loose milk with several health and hygiene issues. The government (Ministry of Health) has carried out several awareness campaigns to educate people of the health risks of consuming loose milk and encouraging healthier packaged milk. These campaigns have been quiet successful as by 2015, the consumption of packaged milk represented around 40% of the total milk consumption. Between 2010 and 2015, packaged milk consumption in Egypt grew by a CAGR rate of 15%

The acceleration of the conversion to packaged products will mainly depend on low to middle income families. Factors that will affect the conversion include GDP Per Capita, disposable income and family formation rates. Moreover, the availability of low-priced packaged milk is crucial.

0%

20%

40%

60%

80%

100%

2008/2009 (Before

Campaigns)

2010 2015 2020

88% 80%

60% 50%

12% 20%

40% 50%

Loose Milk Packaged Milk

30


FEBRUARY, 2016

SOURCE: FAPRI

- Raw Milk vs. Powder Milk: Both raw milk and powder milk are used by dairy producers in Egypt. This is mainly due to the low rates of milk production by local herds. Local herds in Egypt are known to have low fertility rates, poor breeding and low yields. The rate of growth in the cow herds is far less than the growth in population and in the dairy consumption patterns. This implies that Egypt will remain a net importer of dairy and the self-sufficiency rates will keep declining.

91

820

1,699

7,188

8,938

16,610

22,980

24,090

40,053

0 10,000 20,000 30,000 40,000

Saudi Arabia

Japan

Egypt

Russia

U.S.

China

European Union

Brazil

India

Milk Cow Numbers (Thousand Head) - 2015

Egyptian Dairy Supply and Utilization 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

*Milk Cow Numbers - Thousand Heads 1,647 1,650 1,665 1,669 1,679 1,699 1,717 1,741 1,760 1,782 1,802

*Milk Production per Cow – Kilograms 1,004 1,043 1,095 1,147 1,207 1,270 1,340 1,405 1,471 1,537 1,603 *Cow Milk Production - Thousand Metric Tons 1,654 1,721 1,824 1,914 2,026 2,157 2,301 2,446 2,590 2,739 2,889 *Fluid Milk Consumption - Thousand Metric Tons 1,763 1,869 1,985 2,059 2,125 2,183 2,235 2,293 2,350 2,408 2,469

*Per Capita Milk Consumption (Kg/Annum) 21.9 22.8 23.7 24.1 24.5 24.7 24.8 25.0 25.2 25.4 25.6

1,270 1,405 1,458

2,243 3,924

6,000 9,589

10,236 22,501

0 5,000 10,000 15,000 20,000 25,000

Egypt India

Brazil China

Russia European Union

Japan U.S.

Saudi Arabia

Milk Production per Cow - (Kilograms) - 2015

Despite the increasing modernization of the dairy industry and entrance of new products and farms focused on the production of packaged products, the majority of dairy production is still of loose products.

31


FEBRUARY, 2016

SOURCE: JUHAYNA

Juhayna Dairy Products

Plain Milk

Juhayna Bekhero

Flavoured Milk

Mix Jino

- Juhayna Dairy Products: The group produces packaged milk in two categories: plain milk and flavored milk. Juhayna has the largest market share in both.

63%

19%

5%

5%

8%

0% 20% 40% 60% 80%

Juhyana

Al Marai

Lamar

Sabaho (Faragello)

Others

Plain Milk

64%

17%

13%

4%

2%

0% 10% 20% 30% 40% 50% 60% 70%

Juhayna

Dango

Al Marai

Faragello

Others

Flavored Milk

-Plain Milk: The group has been the long-standing market leader in the Egyptian plain packaged milk market. It has a 63% market share. It was among the first products that were produced by the company back in 1987 and it has been the leading product group in terms of sales. It is worthy to note that Juhayna was the first company to introduce packaged milk to Egyptians and it used to dominate the market of packaged milk (market share of 95%+). Increasing competition from local, regional and international producers have had a strong effect on the market share of Juhayna, shrinking its share to 63%. The group has 2 plain milk brands: Juhayna Milk and Bekhero Milk. Juhayna Milk: it is available in many varieties: full cream, half cream, skimmed milk (0.04% fat), no fat milk (0.00%) and foam milk. It is considered a premium brand. It targets consumers that are concerned with health aspects of milk and are willing to pay for a premium. Bekhero Milk: The group launched Bekhero Milk in 1999 in pouch packing as an affordable quality product, targeting mainly rural and urban females that are typically mothers in the low and middle income segments. This consumer is more cost conscious than the typical Juhayna milk consumer. There are 2 varieties of Bekhero Milk: full fat and skimmed.

32


FEBRUARY, 2016

It is worthy to note that both packaging products were developed by the same global packaging company, Tetrapack. The main difference between the two packaging methods is that the regular Juhayna Milk pack has a 6-month expiration date, whereas the Bekhero pouch has a 3-month expiration date, this is due to the difference in the number of layers in the packaging. The price differential between the Juhayna brand and the Bekhero brand is around 15%; Juhayna Milk is EGP1 more expensive than Bekhero in the 1ltr package (Juhayna EGP8-8.5 / Bekhero EGP7-7.5).

- Flavored Milk: The group began producing flavored milk in 1997.Juhyna is a market leader with having 2 brands; Mix and Jino. It targets children aged eight and above whose parents belong to the upper and middle income segments. -As for the Dairy raw materials, Juhayna uses 2 main raw materials for dairy: Raw milk and Powder Milk. Both compromise around 65-70% of the raw materials.

Raw Materials: %

Powder Milk 30%

Raw Milk 35-40%

Packaging 18-22%

Concentrates 6- 15%

Others 2%

- The average rate of using raw and powder milk differ significantly throughout the year. The average rate is 70% raw milk and 30% powder milk. The milk yield per cow declines in the summer due to the hot weather leading to rise in the costs of raw milk. Juhayna uses the 70-30% rate, however it can reach up to 50-50% during the summer.

Raw Milk: Throughout the years, Juhayna has invested heavily in its backward integration. 10-15% of its raw milk needs is provided by 2 of its subsidiaries (Enmaa & Milky’s). More than 80% of the raw milk is supplied by 117 dairy farms. Raw milk prices are set by a committee formed of dairy farmers, manufactures and officials from The Ministry of Agriculture. The committee meets 4 times throughout the year to set the prices of raw milk. Several factors affect the pricing of raw milk, including competition between dairy producers, feed prices, milk-to-feed ratio, comparable market prices and international powder milk prices. The government does not subsidize any dairy farms. Juhayna has an outstanding relation with many farmers and thus may obtain more favorable prices. In order to secure the company’s need of raw milk, Juhyana initiated a project in 2014, named “The Farms Upgrade Program” where it distributed 1,120 German Holstein Heifers across 70 local farms. Moreover, Juhayna developed a 500 feddan dairy farm where it targets to have a cow herd of 4,000 cows by 2017.

Powder Milk: Juhayna uses powder milk as one of its main raw materials. It represents 30% of the group’s raw materials. Powder milk is imported and it is not locally produced, thus it makes the company subject to FX fluctuations. Juhayna was not severely harmed in 2015 by the FX shortage, as the F&B is considered one of the top sectors with respect to FX demand fulfillment. (F&B, Pharmaceuticals and Raw Materials get the highest priority). In addition to that, Juhayna has solid relations with banks and financial institutions and they are constantly supplied with the required FX. Juhayna purchases its powder milk through auctions, where prices are determined based on demand and supply. Previously, auctions were held every year during the period of April-September. Currently auctions are held throughout the year on online platforms such as “Frontera”, which covers around 40% of the global transactions. Juhayna usually secures its needs of powder milk for 6-months ahead. The rise in powder milk prices and devaluation of the EGP imposes a huge threat to Juhayna and both would affect the dairy margins. Raw Milk Supply %

Enmaa for Livestock Company 5%

Milky’s for Milk Production: 8%

117 Small / Medium Farms 87%

33


FEBRUARY, 2016

SOURCE: JUHAYNA

2) Yoghurt Sector: The Egyptian yoghurt market is currently very competitive. International and local players have shown interest in the underpenetrated yoghurt market in Egypt, such as Danone, Lactel, Nestle and Dina Farms.

280

220.8

122.4

105.6

88

65.6

61.6

19.2

0 50 100 150 200 250 300

France

Saudi Arabia

Russia

Japan

Canada

Mexico

U.S.

Egypt

Yoghurt Cups / Year/ Capita Egyptians consume very little amounts of yoghurt compared to other countries. Egyptians are very elastic with respect to yoghurt as they consider it non-essential in their diets. Till the early 2000s, the “baladi” yoghurt was dominant in the yoghurt market, however in 2009, yoghurt consumption was divided equally between packaged yoghut and baladi yoghurt. Consumers were encouraged to convert to packaged products mainly due to the minimal price differential between the two types. Currently most of the yoghurt market is packaged and branded. The baladi yoghurt is rarely available and can be found at even higher prices than the branded yoghurt. Per capita yoghurt consumption was around 2.6 kg/annum in 2009 in Egypt, which is considered low compared to other countries ; at that time Saudi Arabia, Tunisia and Oman had consumption per capita of 4.9kg/annum, 6.6kg/annum and 7.2kg/annum respectively. Consumption of yoghurt is expected to increase in the near term; however Egypt will remain to have a low-consumption per capita compared to other countries.

Egypt's Yogurt Market 2010 2011 2012 2013 2014 2015f 2016f 2017f 2018f 2019 2020 Per Capita Yoghurt Consumption (Kg / Annum) 2.7 2.8 3.0 2.8 2.6 2.7 2.9 3.0 3.0 3.1 3.1

y-o-y Change - 3.6% 6.9% -7.3% -6.3% 5.7% 4.4% 3.3% 1.9% 1.5% 1.6%

Total Yogurt Market 206,600 222,727 244,000 232,000 222,950 241,752 258,695 273,994 286,203 297,922 310,227

y-o-y Change - 7.8% 9.6% -4.9% -3.9% 8.4% 7.0% 5.9% 4.5% 4.1% 4.1%

Packaged Yogurt 116,200 147,000 169,000 171,000 165,000 186,120 204,732 221,111 234,377 246,096 258,401

y-o-y Change - 26.5% 15.0% 1.2% -3.5% 12.8% 10.0% 8.0% 6.0% 5.0% 5.0%

Loose Yogurt 90,400 75,727 75,000 61,000 57,950 55,632 53,963 52,884 51,826 51,826 51,826

y-o-y Change - -16% -1% -19% -5% -4% -3% -2% -2% 0% 0%

0%

20%

40%

60%

80%

100%

2007 2008 2009 2010 2015

40% 40% 50% 59%

90%

60% 59% 50% 41%

10%

Packaged Yoghurt Baladi Yoghurt

It is worthy to note that the Yoghurt market was severely harmed in 2013 and 2014, as the producers increased the prices of their products. Consumers were very inelastic as they reduced their yoghurt consumption to a large extent. Since 2015, the yoghurt market started to grow on the back of the producers’ fast response to lowering the prices.

Demand for yoghurt is quiet cyclical and is subject to seasonal fluctuations. It typically increases during the summer months and almost doubles during Ramadan where there can be a shortage of supply of yoghurt products.

34


FEBRUARY, 2016

SOURCE: JUHAYNA

Juhayna Yoghurt Products

Spoonable

Plain Yoghurt Mix Yoghurt Acti-Life

Drinkable

Rayeb Zabado Judo

35%

22%

19%

15%

9%

0% 10% 20% 30% 40%

Juhayna

Lactalis

Nestle

Danone

Others

33%

33%

12%

12%

10%

0% 10% 20% 30% 40%

Juhayna

Danone

Nestle

Lactalis

Al Marai

Spoonable Yoghurt Drinkable Yoghurt

Juhayna introduced packaged yoghurt to the Egyptian market in 1987. Two main types of yoghurt are produced; spoonable and drinkable. Juhayna is a market leader in both.

Juhayna is expected to have a boost in the yoghurt segment. Currently Egyfood I & II are both operational with production capacities of 80 and 700 tons per day respectively. Juhayna is threatened in the yoghurt sector to a large extent, taking into account Danone’s successful penetration of the Egyptian yoghurt market.

In 2015, Juhayna , in conjunction with Danone held a successful campaign named “Eat a cup of yoghurt a day” to urge people to consume more of yoghurt. Also Juhayna held other awareness campaigns, TV ads and billboards as it aims to benefit from any increase in market base.

35


FEBRUARY, 2016

SOURCE: JUHAYNA

3) Juice Sector:

The juice market in Egypt is fragmented with more than 300 producers. The juice industry has very low barriers to entry, where some brands are produced in small houses in rural areas. Egyptians are considered highly elastic for juice as it is considered non-essential and luxurious. Juhayna started producing juice since 1987. Juice can be divided into 3 main types according to the fruit concentration levels.

20%

20%

20%

11%

3%

26%

0% 5% 10% 15% 20% 25% 30%

Juhayna

Beyti

Faragello

Rani

Cappi

Others

Juhayna Juice Products

100% Pure Nectar Drinks

“100% Pure”: 100% pure fruit concentrate with no added sugar. “Nectar”: 20-50% fruit concentrate. “Drinks”: 10% fruit concentrate.

Egyptians tend to consume very little amounts of juice. In 2009, the consumption per capita Egypt was quiet low – 2.8 litres/annum, compared to the consumption per capita in the MENA region - 13 litres/annum this low consumption can be justified by the Egyptians preferences of tea, coffee and other soft drinks.

Over the last several years, international players such as Coca-Cola and Pepsi (through Al Marai) have shown huge interest in the juice market and both have been quiet successful in penetration the market. The Egyptian juice market is well-positioned for future growth, yet the very fierce competition awaits Juhayna.

Juice Segment 2010 2011 2012 2013 2014 2015f 2016f 2017f 2018f 2019 2020

Per Capita Juice Cons. (ltr) 3.5 4.41 5.82 5.82 5.82 5.90 5.99 6.08 6.20 6.36 6.55

y-o-y Change - 26% 32% 0% 0% 1% 1% 1% 2% 2% 3%

Total Juice Market 272,440 351,000 475,000 487,000 517,000 519,251 540,083 561,965 587,688 617,545 652,070

y-o-y Change - 29% 35% 3% 6% 0% 4% 4% 5% 5% 6%

Juice

36


FEBRUARY, 2016

VAT Tax on Dairy, Yoghurt and Juice: The VAT taxation system is expected to be applied during 2016. Essential food items will be exempted and they will be exposed to the current sales tax of 10%. According to the Juhayna’s management, the Dairy and Yoghurt products will be exempted from the VAT, however it is not yet decided whether juice will be exempted or not, as it not considered an essential food item. The rate differential between the VAT (10-12%) and the current sales tax (10%) is quiet minimal. A minute effect will occur if the applied rate exceeds 10% and it will be applied on all juice products, consequently Juhayna will not be adversely affected by the VAT. 4) Concentrates Sector – (Backward Integration): The concentrates segment is specialized in processing seasonal fruits into concentrates including mango, guava, peach, apricot and citrus. The 2 factories (Marwa & Modern) supply Juhayna with around 70% of its need for juice production. These factories assist in ensuring the constant supply of high-quality concentrates for the group’s juice production process. The group also sells concentrates to third-party business customers. II. AGRICULTURE & FARMING – (Backward Integration): The agricultural arm of Juhayna operates through 3 subsidiaries:

1) Enmaa for Livestock Company – (Dairy Farm) 2) Enmaa for Reclamation and Agriculture (Reclaims land for the cultivation of fruits / cattle feed and other agricultural

crops). 3) Milky’s for Milk Production

- Enmaa provides Juhyana with 5% of its raw milk requirements, where Milky’s provide it with another 8%. The rest is satisfied

by 117 small and medium farms.

*Cow Herds in Juhayna’s Dairy Farms:

Juhayna seeks to have a cow herd of 4,000 Holstein Heifers (German breed) cows by 2017. It received 2 shipments throughout 2015, where it received 650 and 950 respectively. It is worthy to note that Juhayna constantly supplies third-party farms with cows through its “Farms Upgrade Program”, where it had a cow herd of 1,120 Holstein heifers distributed among 70 farms in 2015.

*Land Cultivation and Reclamation: Up till now, Juhayna has cultivated and reclaimed 6,000 feddans. The company still has a large land bank that it can reclaim / cultivate in the future.

37


FEBRUARY, 2016

SOURCE: BLOOMBERG

2015

Distribution Centers 30

Retail Outlets 50,000

Trucks & Vans 1,000

SKUs 200+

III. Distribution, Sales and Marketing – (Forward Integration): The distribution, sales and marketing is carried out by Juhayna’s subsidiary, Tiba for Trade and Distribution that was established in 2007. The distribution network plays a major part in the product penetration in the Egyptian market and is very difficult for competitors to replicate. Juhayna is considered to have a first-mover advantage and it represents a barrier to entry for potential new competitors. Large competitors such as Al Marai and Lamar have started to build-up distribution networks; however it will take them several years to build a vast network as that of Juhayna. In 2015, Tiba owned 30 distribution centers located throughout Egypt. It announced its plans to build up 2 new centers and renovate another 2 in 2016, reaching a total number of 32 distribution centers. By end of 2015, Tiba operated a fleet of more than 1,000 trucks, which delivers the group’s products across a wide distribution network and it is able to reach remote areas in a timely manner. Currently, the products reach more than 50,000 retail outlets.

7.2

7.4

7.6

7.8

8

8.2

8.4

8.6

8.8

JUFO.CA - Price - August 2015

Main Events in 2015 for Juhayna and their effect on the Company’s Value & Stock Valuation: 1) Safwan Thabet, Juhayna’s Chairman and CEO

Assets Freeze on Alleged MB Ties:

In August, 2015, the committee tasked with accounting for Muslim Brotherhood (MB)-related assets has frozen the assets of Juhayna’s Chairman and CEO, Safwan Thabet. This decision covered his personal assets only and did not include Juhayna as it is a publicly-owned company. A week later, the EGX barred him for trading and all his trading codes were suspended. During this week, Juhayna’s stock (JUFO.CA) dropped by around 8%. At that time, Aberdeen Asset Management increased its stake in the company from 4.8% to reach 5.1% through buying 1.4 mn shares at the price of EGP 8.1/share. On the other hand, this decision has no effect on the operations of Juhayna as Thabet’s managerial role is still effective and there is no final ruling yet regarding his affiliation with the MB. The case has no tangible effect on Juhayna’s fundamentals and hence it is not taken into account with the company’s valuation.

38


FEBRUARY, 2016

2) Joint Venture between Juhayna and Arla Foods – ARJU-:

In May, 2015, Juhayna and a Danish company named Arla Foods announced that they formed a new VC in Egypt, called “Arju Food Industries”. Arju will focus mainly on three segments; cheese, butter and infant formula. Arju will be 51% owned by Juhayna and 49% owned by Arla. Arla will be in charge of the day-to-day operations and management. The JV will explore the expansion opportunities in other Middle East and African markets. The Arju VC will be carried out in 2 different phases: Phase 1: (2015-2017): It will focus on the distribution of Arla products, using Juhayna’s distribution platform. The distribution began in November 2015. The allocation of Arju profits will be divided according to ownership status (51% for Juhayna and 49% to Arla). The contribution to Juhayna’s profits was extremely minimal in 2015, yet it is expected to reach EGP 250 mn in 2016.

Phase 2: This phase will be concerned with manufacturing and it will probably begin in 2018. It has not been decided yet if they will build a new factory (greenfield plant) or will they buy an existing one (brownfield plant). The partnership is a very good match for both parties and is expected to yield positive results, due to the combination of Arla’s well-recognized brands and regional know-how and Juhayna’s massive distribution network. Arlais very well placed in the cheese and butter markets. They produce mainly premium-brands as they are most famous for Lurpack (butter), Puck (cheese) and Castello (cheese). They have a solid experience in emerging markets and they sell their products in more than 100 countries. Arla’s local revenues reached EGP 200mn in 2015 (Juhayna’s revenue in 2015 – EGP 4.2bn). It is worthy to note that Juhayna used to produce cheese in the past, yet it lacked the know-how and could not acquire a relevant market share so production stopped and Juhayna decided to seek a VC that would enable them to re-penetrate the market and benefit from the small yet growing market. Arju is not included in our forecasts and valuations. The announced plans are preliminary and are currently being tested. Arju is an un-modelled potential that will definitely hike the company’s value in the coming years if deemed successful.

39


FEBRUARY, 2016

Financial Overview:

The consolidated results for 2015 reported a magnificent increase in sales revenues, showing a 15% y-o-y increase. Revenues reached EGP 4.23bn in 2015, as compared to EGP 3.68 bn in 2014.

Gross Profit showed a huge improvement of 44% as it reached EGP 1.67bn in 2015 compared to EGP1.16 bn in 2014. The improvement in gross profit was mainly due to the continued decline in raw material prices, specifically powder milk.

Net profits rose by 65% in 2015 as it recorded EGP 279.83 mn versus EGP 169.96 mn in 2014.

Dairy and Yoghurt remained the main contributors to revenues, where they represented 52% and 25% respectively. Juice showed the strongest y-o-y growth as juice revenues increased by 24%% in 2015 due to the launch of its new Premium product line.

1.86 2.24

2.85 3.29

3.68 4.23

- 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50

2010 2011 2012 2013 2014 2015

Revenues - EGP Bn

0.70 0.76

1.03 1.14 1.16

1.67

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2010 2011 2012 2013 2014 2015

Gross Profit - EGP Bn

227.81

185.89

325.33 328.17

169.96

279.83

-

50

100

150

200

250

300

350

2010 2011 2012 2013 2014 2015

Net Income - EGP Mn

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FEBRUARY, 2016

1. Revenues:

Juhayna had an extraordinary performance in 2015. Juhayana proved to be a true market leader, despite all the pressure from local, regional and international competition. Revenues reached EGP4.23 bn in 2015, showing an annual increase by 15% as it reached EGP 3.68 bn in 2014.

Revenues for the Dairy, Yoghurt, Juice and Agriculture sectors showed y-o-y increases in Revenues; 13%, 12%, 24% and 32% respectively. The concentrates sector was the only sector that showed a y-o-y decline of 17% in 2015.

The main contributors to Juhayna remained Dairy and Yoghurt where they represented 52% and 25% of the total revenues. Juice sales hiked in 2015 due to the successful launch of a new product line named Premium. Premium juice represented around 80% of the total juice sales.

The contribution of the different segments to sales remained steady throughout the years. In 2011 and 2015, no major differences have occurred. We expect the segment contribution to remain steady in the medium-terms - +/- 1-2% may occur between segments.

Juhayna’s products are mainly consumed domestically, where export sales represented only 3.5% of the total revenues in 2015. Before 2011, export sales were much higher as they represented 14% of total revenues, where Libya represented around 70% of the export market. Currently the Export sales cover around 10% of required FX (mainly used to purchase powder milk).

In the short/medium term, Juhayna will focus mainly on the local market as it believes that the local market is very under-penetrated. However, in the long-term, it plans to penetrate new markets, such Jordan, Moritania, Russia and other European and African countries.

1.86 2.24

2.85 3.29

3.68 4.23

-

1.00

2.00

3.00

4.00

5.00

2010 2011 2012 2013 2014 2015

Revenues - EGP Bn

52%

25%

20%

1% 2%

2015 Revenue Breakdown %

Dairy

Yoghurt

Juice

Concentrates

Agriculture

51%

27%

19%

2%

1%

52%

25%

20%

1%

2%

0% 10% 20% 30% 40% 50% 60%

Dairy

Yoghurt

Juice

Concentrates

Agricuture

2015 2011

Segment Contribution

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

Local Export Local Export

Pre-2011 2015

86%

14%

96.50%

3.50%

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FEBRUARY, 2016

Juhayna has a diversified customer base. Sales come from Retailers (Super markets), Wholesalers, Hypermarkets, B2B and Exports. The business segment is comprised of Airlines, Restaurants/ Cafes, Schools & Universities (Public and Private). Juhayna products are not sold through government outlets.

46%

22%

15%

6% 3%

8%

Retail

Wholesalers

Hypermarkets

B2B

Exports

Others

We estimate that Juhyana’s Sales will increase in the medium-term at a CAGR rate of 14%. Population growth, Consumption per Capita, Conversion rates, Juhayna’s market share are the main demand drivers that we used to derive our forecasts.

2015 2016f 2017f 2018f 2019f 2020f CAGR 2016 -2020

Sales Revenues (EGP Mn.) 4,231 4,845 5,587 6,388 7,179 8,066 14%

y-o-y Change - 15% 15% 14% 12% 12%

Dairy (EGP Mn.) 2,184 2,526 2,922 3,379 3,837 4,355 15%

y-o-y Change - 16% 16% 16% 14% 14%

Juhayna Market Share - 61.00% 60.00% 59.00% 58.00% 57.00%

Yoghurt (EGP Mn.) 1,067 1,188 1,378 1,533 1,672 1,822 11%

y-o-y Change - 11% 16% 11% 9% 9%

Juhayna Market Share -

44.08% 45.08% 45.08% 44.58% 44.08%

Juice (EGP Mn.) 831 961 1,089 1,250 1,421 1,619 14%

y-o-y Change - 16% 13% 15% 14% 14%

Juhayna Market Share

22.22% 23.22% 24.22% 25.22% 26.22%

Concentrates (EGP Mn.) 63 73 80 88 97 106 10%

y-o-y Change - 15% 10% 10% 10% 10%

Agriculture (EGP Mn.) 77 97 118 138 153 163 14%

y-o-y Change - 26% 22% 17% 11% 6%

Others (EGP Mn.) 9 0 0 0 0 0 -

y-o-y Change - -100% - - - -

Juhayna’s Customer Base

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FEBRUARY, 2016

SOURCE: GLOBAL DAIRY TRADE

2. Cost of Goods Sold:

Juhayna’s COGS is mainly dominated by raw materials. Raw materials represent around 70% of the total COGS, where the rest comes from packaging and other costs.

• Raw Materials:

I. Powder Milk – 30% of Raw Materials:

Juhayna purchases its required powder milk through “Auctions” that are held throughout the year on an online trading platform called “Fronterra”. Juhayna always secures its inventory of powder milk that covers its needs for 6 months. Juhayna secured its needs for 1H2016, and consequently the effect of devaluation will be reflected in a later stage.

Raw Materials %

Powder Milk 30%

Raw Milk 35 - 40%

Packaging 18-22%

Concentrates 6-15%

Others 2%

The volatile costs of raw materials impose a huge risk for Juhayna. Powder Milk and Raw Milk are the 2 main materials used by the company. 30% of the raw materials is subject to FX risks. Juhayna was placed on the CBE priority list in 2015, which resulted in a notable improvement in securing its FX requirements. Devaluation will have an effect on the imported raw materials prices; however the company mentioned that the devaluation effect will be manageable. On average, a devaluation of 10% would increase Juhayna’s COGS by 2-3%, which the company believes that it can be transferred to the customers.

0

1,000

2,000

3,000

4,000

5,000

6,000

Jan-

10

Jul-1

0

Jan-

11

Jul-1

1

Jan-

12

Jul-1

2

Jan-

13

Jul-1

3

Jan-

14

Jul-1

4

Jan-

15

Jul-1

5

Jan-

16

WMP Average Price (USD/MT) In 2013, an epidemic was spread among the cow herds in China (China is among the highest consuming countries of milk and Dairy), so an increase in demand for powder milk occurred, leading to a rise in prices of around 50%. Prices started to slow down mid-2014 and continued to decline in 2015, where prices for WMP declined by 25% and 31% respectively in 2014 and 2015.

Juhayna’s margins are closely tied to the cost of powder milk; 2014 COGS hiked to a large extent as the company purchased its inventory of powder milk at the time where prices were at its peak in 2013. On the contrary, Juhayna benefited from the favorable prices in 2015 that led to the softening of its COGS.

According to management, Juhayna secured its inventory of powder milk that would cover its needs for 1H 2016 at favorable prices and it expects prices to remain at such low levels till the end of the year.

Year USD / MT y-o-y Change

Average 2012 3,095 -

Average 2013 4,677 51%

Average 2014 3,496 -25%

Average 2015 2,418 -31%

Year Juhayna's COGS - 000s Gross Profit – 000s GPM

2012 1825241.241 1029729 36%

2013 2148823.602 1144882 35%

2014 2520314.008 1163746 32%

2015 2558805.53 1672356 40%

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FEBRUARY, 2016

2. Raw Milk – 35-40% of Raw Materials:

The raw milk represents around 35-40% of the total raw materials. Enmaa and Milky’s provide Juhayna with 10-15% of their raw milk requirements; however by 2020 they will provide Juhayna with 15-20% of their requirements.

Juhayna aims to develop a dairy farm with a cow herd of 4,000 cows:

- It received 2 shipments in 2015 – 650 and 950 cows. - It expects to receive a shipment of 400 cows in 2016 - The final shipment will arrive in 2017 to complete the 4,000 herd.

In 2014, Juhyana bought 1,120 and distributed them across 70 farms. However the fierce competition remains in the raw milk market and farmers require higher prices each year.

• COGS Assumptions:

- Dairy & Yoghurt:

On average, Juhayna uses 70% raw milk and 30% powder milk for its Dairy and Yoghurt production. 1 ton of raw milk produces 1 ton of dairy/yoghurt and 1 ton of powder milk produces 7.5 tons of dairy/yoghurt. Juhayna’s reliance on Enmaa and Milky’s will grow till it reaches 18% in 2020.

DAIRY 2015 2016 2017 2018 2019 2020 Sold Volumes (Tons) 267,916 300,498 331,041 364,586 394,248 426,195

Raw Milk Contribution % 70% 70% 70% 70% 70% 70%

Tons Req. 187,541 210,349 231,729 255,210 275,973 298,337

Supplied by Enmaa & Milky's 13% 16% 16% 18% 18% 18%

Supplied by farmers 87% 84% 84% 82% 82% 82%

Price Per Ton 3,963 4,240 4,452 4,675 4,908 5,154

Total Raw Milk Cost 646,533,691 749,165,844 866,576,098 978,248,871 1,110,726,981 1,260,770,876

Powder Milk Contribution % 30% 30% 30% 30% 30% 30%

Tons Req. 10,717 12,020 13,242 14,583 15,770 17,048

Price Per Ton USD 2941 3029.23 3241.2761 3395 3444 3473

USD/EGP 7.74 8.2818 8.778708 9.2176434 9.033290532 8.852624721

Total Powder Milk Cost - USD 32,148,022 37,139,366 43,778,179 50,501,030 55,397,768 60,391,171

Total Raw Milk Cost - EGP 248,825,692 307,580,798 384,315,854 465,500,482 500,424,129 534,620,374

Processing (10% of Dairy COGs) 89,535,938 105,674,664 125,089,195 144,374,935 161,115,111 179,539,125

Total Dairy COGS 984,895,321 1,162,421,307 1,375,981,147 1,588,124,289 1,772,266,221 1,974,930,375

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FEBRUARY, 2016

YOGHURT 2015 2016 2017 2018 2019 2020 Sold Volumes (Tons) 83,903 90,246 99,677 105,657 109,710 113,903

Raw Milk Contribution % 70% 70% 70% 70% 70% 70%

Tons Req. 58,732 63,172 69,774 73,960 76,797 79,732

Supplied by Enmaa & Milky's 13% 16% 16% 18% 18% 18%

Cost of R. Milk supplied by farmers 87% 84% 84% 82% 82% 82%

Price Per Ton 3,963 4,240 4,452 4,675 4,908 5,154

Total Raw Milk Cost 202,473,896 224,990,000 260,926,742 283,496,905 309,088,663 336,948,243

Powder Milk Contribution % 30% 30% 30% 30% 30% 30%

Tons Req. 3,356 3,610 3,987 4,226 4,388 4,556

Price Per Ton - USD 2941 3120.1069 3241.2761 3395 3444 3473

USD/EGP 7.74 8.2818 8.778708 9.2176434 9.033290532 8.852624721

Total Powder Milk Cost - USD 10,067,743 11,488,331 13,181,644 14,635,218 15,415,869 16,139,887

Total Powder Milk Cost - EGP 77,924,334 95,144,062 115,717,805 134,902,222 139,256,026 142,880,359

Processing (10% of Yoghurt COGs) 28,039,823 32,013,406 37,664,455 41,839,913 44,834,469 47,982,860

Total Yoghurt COGS 308,438,053 352,147,468 414,309,001 460,239,039 493,179,158 527,811,463

- Juice

JUICE 2015 2016 2017 2018 2019 2020

Sales (tons) 115,984 126,323 138,817 153,052 169,288 187,882

Cost Per ton 5,231 5,545 5,933 6,348 6,856 7,405

JUICE COGS 606,721,632 700,450,715 823,614,403 971,633,553 1,160,683,280 1,391,225,056

- Concentrates:

CONCENTRATES 2015 2016 2017 2018 2019 2020

Sales (tons) 8,603 8,760 8,760 9,636 10,512 10,512

Cost Per ton 6,284 6,096 6,157 6,342 6,595 6,859

CONCENTRATES COGS 54,063,053 53,400,253 53,934,255 61,107,511 69,329,249 72,102,419

- Agriculture:

AGRICULTURE 2015 2016 2017 2018 2019 2020

Sales (tons) 71,812 86,864 100,728 111,767 118,429 119,566

Cost Per ton 1,227 1,166 1,108 1,063 1,021 990

CONCENTRATES COGS 88,135,413 101,278,165 111,570,053 118,846,205 120,892,261 118,391,242

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3. Debt:

In 2015, Juhayna secured 3 medium-term facilities totaling EGP 480mn to streamline finances. The aim of these loans is to improve the company’s working capital position and refinance existing debt with facilities whose tenor better matches the pace of its expansions.

The loans were as follows:

Bank Name Facility Purpose

Commercial International Bank - CIB EGP 250 mn. Enhance Egyfood’s working capital position

Egyptian Gulf Bank - EGB EGP 150mn. Expand Tiba for Trade & Distribution’s network

Arab African International Leasing - AAIL EGP 80mn. Renovate 3 of Tiba for Trade & Distribution’s logistics centers

4. CAPEX:

Juhayna announced its expansion plans for 2016, where it will inject EGP 600mn. The amount will be allocated in 1) completing the company’s new dairy farm, 2) buying new production lines to boost the production capacity of juice and 3) renovating 2 distribution centers and building 2 new distribution centers in the regions of Delta and Upper Egypt. CAPEX is expected to soften in the coming few years.

15.46% 18.25%

22.45%

36.03%

27.19% 30.24%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2010 2011 2012 2013 2014 2015

Debt/ Equity Ratio Juhayna Debt/Equity has increased since 2010 at a CAGR Rate of 14% as it reached 30.24% in 2015.

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38% 34% 36% 35%

32%

40%

0%

10%

20%

30%

40%

50%

2010 2011 2012 2013 2014 2015

GPM %

12.24%

8.29%

11.40% 9.97%

4.62%

6.62%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

2010 2011 2012 2013 2014 2015

NPM %

62% 66% 64% 65% 68% 60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2010 2011 2012 2013 2014 2015

COGS/Revenues %

24%

19% 20% 19%

16%

20%

0%

5%

10%

15%

20%

25%

2010 2011 2012 2013 2014 2015

EBITDA Margin

17%

13% 15%

14%

10%

16%

0%

5%

10%

15%

20%

2010 2011 2012 2013 2014 2015

EBIT Margin

1,163 1,481

1,825 2,149

2,520 2,559

0

500

1,000

1,500

2,000

2,500

3,000

2010 2011 2012 2013 2014 2015

COGS - EGP Mn

0.31 0.26

0.46 0.46

0.18

0.30

-

0.10

0.20

0.30

0.40

0.50

2010 2011 2012 2013 2014 2015

EPS (EGP/Share)

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HEAD OFFICE PRIME SECURITIES S.A.E. 2 Wadi El Nil St., Liberty Tower, 7th-8th Floor, Mohandessin, Giza, Egypt Tel: +202 33005700/770/650/649 Fax: +202 3760 7543

RESEARCH TEAM

research@egy .primegroup.org +202 3300 5728

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Juhayna Food Industries - Initiation of Coverage - 22 February 2016

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