Cleopatra Hospitals Group Roadshow Presentation

Disclaimer This presentation is being provided to you on a confidential basis and may not be distributed or reproduced in any form. This presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation or solicitation of an offer to subscribe for or purchase securities of any kind and neither this document nor anything contained herein shall form the basis of any contract or commitment from any party whatsoever This presentation has been prepared by Cleopatra Hospitals Group (“CHG”) and reflects the management’s current expectations or strategy concerning future events and are subject to known and unknown risks and uncertainties. Some of the statements in this presentation constitute "forward-looking statements" that do not directly or exclusively relate to historical facts. These forward-looking statements reflect CHG’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside CHG’s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. CHG undertakes no obligation to revise any such forward-looking statements to reflect any changes to its expectations or any change in circumstances, events, strategy or plans. Because actual results could differ materially from CHG’s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this presentation with due care and caution and seek independent advice when evaluating investment decisions concerning CHG. No representation or warranty, express or implied, is made or given by or on behalf of CHG or any of its respective members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in or discussed at this presentation. These materials are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. By attending the presentation to which this document relates or by accepting this document you will be taken to have represented and warranted that you have read and agree to comply with the contents of this disclaimer.

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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Rights Issue - Overview

Offer Type

Rights Issue

Trading of Rights

Rights will be tradable on the EGX

Offer Size

EGP 700mn, divided into 1.4bn shares

Outstanding No. of Shares

200,000,000

Post Capital Increase Number of Shares

1,600,000,000

Pre/Post Capital Increase Paid-in Capital

100,000,000 / 800,000,000

Offer Price

EGP 0.5 (Par), excluding issuance fees

Subscription Ratio

7.0x (Each shareholder as of the record date is entitled to subscribe to 7 new shares)

Subscription Period

Early Nov – Early Dec 2017 (1)

Trading of Rights Exercise Period

Early Nov – End of Nov 2017(1)

Use of Proceeds

≡ The proceeds will be mainly directed towards financing new hospital acquisitions – EGP 580mn ≡ Proceeds are also intended to partially repay the Group’s outstanding debt – EGP 120mn

Syndicate

≡ Lead Manager & Sole Bookrunner : EFG Hermes Investment Banking ≡ Legal Counsel: Matouk Bassiouny ≡ Subscription Bank: Arab African International Bank

Note(1): Expected dates; Subject to change based on regulatory approvals

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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Rights Issue - Key Dates

October

Dates

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• EGM Approved Rights’ Issue

• Investor Roadshow

• Publish Public Subscription Notice(1)

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• Round 1 Subscription Period(1)

Mid Dec 2017

• Round 2 Subscription Period(1)

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Complete

In Progress

Note(1): Expected dates; Subject to change based on regulatory approvals

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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Today’s Presenters

Dr. Ahmed Ezzeldin

Khaled Hassan

Hoda Yehia

Chief Executive Officer

Chief Financial Officer

Investor Relations Director

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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Introduction to Cleopatra Hospitals Group

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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Cleopatra Hospitals Group at a Glance • Cleopatra Hospitals Group (the “Group” or “CHG”), is the largest private hospital group in Egypt and consists of four operational hospitals all in Cairo, namely: • Cleopatra Hospital (“CHC” or “Cleopatra”) • Cairo Specialized Hospital (“CSH”) (53.2% ownership) • Nile Badrawy Hospital (“NBH” or “Nile Badrawy”) (99.9% ownership) • Al Shorouk Hospital (“ASH” or “Al Shorouk”) (99.9% ownership) • The Company went public on the Egyptian Stock Exchange (EGX) in June 2016, and currently has a market cap of EGP 5,420mn(1) (USD 307 mn)(1) • The platform was formed by The Abraaj Group, a leading private equity investor operating in global growth markets, in partnership with leading developmental and financial institutions • The Company’s revenue went from EGP 413.4mn in 1H16 to EGP 523.9mn in 1H17, and net profits increased from EGP 30.8mn in H116 to EGP 52.6mn in 1H17

4

+20

Operational hospitals across our platform

Years of subsidiary track record

635

+2,000

Patient beds including 400 rooms /wards and 120 ICU beds

Total medical staff including c. 650 resident doctors and c. 1400 nursing staff

1,000 Consultants mostly University Professors and international renowned physicians

EGP

524 mn

Consolidated revenues in 1H17 with 27% growth vs. 1H16

c.1,000,000 Cases served LTM

EGP

108 mn

EBITDA in 1H17 with a 21% margin

Shareholder Structure and Share Performance Share Information(2)

Cleopatra Hospitals Group Stock Performance Volume

CLHO (Rebased to 100)

EGX30 (Rebased to 100)

Listing Venue Listing Date

350

201%

250

84%

Market Capitalization Initial Share Price

150 50 Jun-16

Ticker Symbol

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Source : Bloomberg Note (1): As of 3 Oct 2017 @ USD / EGP 17.64 Note (2): As of 3 Oct 2017

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

Jun-17

Aug-17

Oct-17

Share Performance (Since Trading | YTD) Index Inclusion

Shareholder Structure Free Float, 20%

June 2016 CLHO EY EGP 5,420| USD 307 EGP 9.0 201% | 60%

Care Healthcare, 80%

EGX 70 | EGX 100

7

Presence in Attractive Catchment Areas Across Greater Cairo

Location Built-up Area Date Established # of Beds

Mohandsein, Giza 5,270 sqm 1996 121

Location Built-up Area Date Established # of Beds

Heliopolis, Cairo 7,380 sqm 1984 167

Location Built-up Area Date Established # of Beds

Heliopolis, Cairo 14,600 sqm 1976 204

West Cairo Acquisition(1) Location Built-up Area

Dokki, Giza 6,500 sqm

Date Established

1946

# of Beds

92(2)

Status

Documents signed, pending closing

Location Built-up Area Date Established # of Beds

Maadi, Cairo 10,980 sqm 1985 143

Note (1): This acquisition is still pending the completion of certain condition precedents and may not be completed for the above mentioned or any other reason Note (2): expected to increase to 108 beds post expansion

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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Integration, Optimization of Operations

Key Group Achievements Since 2016’ IPO Capitalizing on Economies of Scale

Integrating and Institutionalizing the Group Standard Organizational Chart

Internal Audit Function

Umbrella Brand (One Cleopatra)

Business Segments KPIS and Reviews

Quality Improvement

Elevated Patients’ Food Standard

Infrastructure / Technology Upgrade

New Hospitals’ MDs

Key Employee Incentive Schemes

Employees Reward Policy

Central Laundries

Call Center

Optimize Capacity and Patient Flow

Procurement Department

ERP / HIS system

NBH and CSH facelift

One Stop Shop

Nurse Training Program

Referral Pathway

Drug Formulary

ASH In-Patient Wards

CSH Physiotherapy

Renal Transplantation

COEs

Medical Tourism

ER / ICU

Cath Labs / ORs

State of the Art Imaging Center

Complex Surgeries

New Insurance Companies

JCI Accreditation Roadmap

Cleopatra Club Meetings

Package Surgery Bundles

Standardization of SKUs Unified Contractual Agreements

PACS System

Global Insurance Agreements New Corporate Team

Service Quality / Offering

Pricing Strategy / Credit Terms

New Corporate Clients

Centralized Collection Function

Health Insurance Schemes

Expanding The Group’s Feeder Network

Introducing the 1st Member of the Hub and Spoke Network  As Part of CHG’s strategy, the Group’s 1st polyclinic will be located in New Cairo, and is earmarked for operations by Q4 2017  The Group is also in the process of site identification for the 2nd polyclinic in the West Cairo area

The East Cairo Polyclinic Clinics across all specialties fully equipped with latest technology

+300 12 Clinics

ER / Pharmacy / Ambulance

X-Ray / Ultrasound

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

Slots

Hot Lab

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Key Group Achievements Since 2016’ IPO (Cont’d) Broadening Group’s Reach and Expanding its Capacity Through Greenfield / Brownfield Expansion and Acquisitions

Al Shorouk Expansion 



Cleopatra Expansion 

The Group received several proposals for the construction of Al Shorouk extension, and is currently in the process of selecting the contractor Al Shorouk extension is expected to commence operations in early 2019

The Group is still involved in an administrative lawsuit for rezoning the existing villa, which the Group intends to develop into an extension of the hospital

West Cairo Hospital Acquisition(1)    

During September 2017, CHG signed definitive agreements to acquire the real estate assets and the operational assets of a new hospital in West Cairo Founded in 1946, the hospital was founded by a group of doctors, which was then restructured and established as a new company in 2013, for the purpose of operating and managing general hospitals and medical centers After its re-opening in June 2014 with a capacity of 27 beds, the hospital increased its capacity in 2015 and 2016, reaching 53 beds The hospital is also undergoing an additional expansion in order to reach 108 beds, as is expected to contribute around EGP 35mn(2) of EBITDA to CHG over the coming period

Hospital Beds

Kidney Specialist offering a complementary service

2,264m2 Land Area hosting two buildings with a total BuA of 6,500m2

KPI Growth(2)

Services & Specialties ICU

92(3)

Urology

Cardiac Cath

Neurology

Nephrology

Plastic Surgery

Urinary Tract

Orthopedics

Emergency

Oncology

Outpatient Clinics

Hematology

Endoscopy / Radiology

Prostate Treatment

+21,000 Outpatient visits In 2016, with 118% growth vs. 2015

+4,000

+5,000

Inpatients

ER Patients

In 2016, with 52% growth vs. 2015

In 2016, with 85% growth vs. 2015

Targeted Hospital In Pictures

Note (1): This acquisition is still pending the completion of certain condition precedents and may not be completed for the above mentioned or any other reason Note (2): based on management accounts, and is to subject to diligence and audit, and involve a number of risks, uncertainties and assumptions that could cause actual results and performance to differ materially Note (3): expected to increase to 108 beds post expansion

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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Key Investment Highlights

Key Investment Highlights

I

II

III

IV

V

VI

VII

Resilient and underpenetrated market with structural demand growth

Leading position in a market with high barriers to entry

Capitalizing on established brand equity and subsidiary track record

Leverage on integrated platform and scale to extract synergies

Solid financial performance with potential for enhanced profitability

Seasoned management team with strong track record backed by strong corporate governance

Clearly defined growth strategy focused on CHG’s key pillars

CHG’s solid market backdrop and resilient company performance have propelled its ability to identify high quality assets at attractive valuation levels, which resulted in an overall improvement in the Group’s quality of service

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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Resilient & Underpenetrated Market with Structural Demand Growth

I

Operating in an underpenetrated and growing market

Prevalence of Diseases in Egypt

Hospital Beds / (1,000 people) (2013)

Hepatitis C Prevalence (2012) (‘000 cases)

Healthcare Expenditure per Capita (USD)(2014) 6,023

9,403 8.2

New constitution that was passed in January 2014 stipulates that the government must spend a minimum of 3% of GDP on healthcare

5,006 3.5

2.9

3,403 1,473 1,215 254

2.5

2.1

2.1

1.8

1,611 1.1

0.9

1,147

569

0.5

568

359

305

190

43

25

16

7

6

178

Cancer Prevalence (2012) (‘000 cases) Estimated Incidence

Historical Growth in Number of Beds in Egypt (‘000s)

% of Population Aged 65+ 5.0%

5.1%

5.2%

5.2%

Public

5.5%

129 86

88

90

92

101

27

103

128 29

99

128 29

99

32

97

Public

131 33

98

83 53 30

2012

2013

2014

2015E

Source: Business Monitor International (BMI)

2020F

2009

2010

2011

Source: LOGIC, WHO, CAPMAS

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

2012

Prevalence (3-years)

3 2 6

6 4 9

9 6 14

12 7 17

17 10 26

34 21 54

105 59 146

Healthcare Expenditure (EGP bn)

Private

128

145 83 208

With strong demographics and rising demand for healthcare services Population Growth (million)

Prevalence (1-year)

931

Source: World Bank

492 358

Source: World Bank

2013

96 60 36

Private

113 70 43

131

137

149

163

178

194

% Diabetes Prevalence in 20-79 years age group (2013) 23.9 19.0

81

83

90

50

55

59

98

65

107

71

117

16.6

14.9

14.8 11.5

9.4

9.4

7.9

7.9

77

2012 2013 2014 2015 2016f2017f2018f2019f2020f Source: Business Monitor International (BMI) 1Q17

Source: LOGIC, WHO, International Agency for Research on Cancer, National Center for Biotechnology Information

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Leading Position in a Market with High Barriers to Entry

II

Largest institutional hospital group in Egypt by number of beds(1)…

…Capturing the largest share of the top 10 large private hospitals in Cairo

…And by number of hospitals(1) … 4

635

41%

3(4) 200(2)

300

(3)

145(2)

241(4)

1(2)

1(2)

4 out of top 10 private hospitals in Cairo

1(3)

59%

204

CSH

200

AS Salam

177

167

Dar el Sheffaa

152

Cleopatra

El Do'aat

145

143

Dar el Fouad

Nile Badrway

121

120

110

Shorouk

Dar el Hekma

Nozha Hospital

80+

El Katib

Top Private Hospitals in Cairo - Existing number of beds (2016)

…With significant barriers to entry Brand Equity and Track Record

Economies of Scale

Wide Geographic Coverage

Employer of Choice

Track record and reputation are key to patients’ selection

Large investments on medical infrastructure, equipment and real estate are required to build scale through network expansion and achieve economies of scale.

Wide geographic presence through multiple facilities spread across different areas allows for better access to a larger target market and more customer reach

Ability to attract renowned doctors / resident physicians and the highest nursing talent in the market given operational competency, quality of infrastructure and reliability of patient flows

Source: Logic, company public information Note (1): As of December 31, 2015, except for Saudi German; Note (2): Dar El Fouad and As Salam are managed as one group; Note (3): Saudi German started operations in 2016 (not fully operational yet); Note(4): Andalusia group has 3 hospitals that are all less than 100 beds each, two of which are in Alexandria and 1 in Cairo

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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III

Capitalizing on Established Brand Equity and Subsidiary Track Record Individual Subsidiary Track Record

Est. 1984

Est. 1976 • Reputable brand in East Cairo area • 40 years of track record • Centrally located in East Cairo with easy accessibility

• Largest footprint with potential for enhanced utilization

• 173 resident doctors and 336 nursing staff • 206 practicing physicians / consultants(2) • Majority of consultants are university professors

• Reputable brand in East Cairo area • Over 30 years of track record • Centrally located in East Cairo with easy • • • • • • •

accessibility Offers all major medical specialties One of the best staffed ERs 209 resident doctors and 473 nursing staff 283 practicing physicians / consultants(2) Majority of consultants are university professors In 1999, Cleopatra acquired a new adjacent building, expanding the hospital’s land area to a total of 1,727 m2 Quality accreditations:

ISO 10002 As of March 31, 2017 Note (1): Includes OR beds Note (2): Approximate figures

Est. 1996

ISO 22000

Customer Food Safety Satisfaction

Est. 1985

• Reputable brand in West Cairo area • 20 years of track record • Founded as a multi specialty, fully equipped

• Reputable brand in West Cairo area • More than 30 years of track record • In addition to offering all specialties, NBH is

therapeutic hospital

• 138 resident doctors and 319 nursing staff • 221 practicing physicians / consultants(2) • Majority of consultants are university • • •

professors Acquisition of adjacent building in 2005, increasing capacity from 96 to 120(1) beds Serving GAMCA patients Quality accreditations:

• • • • •

ISO 9001

ISO 9001

Quality

Quality

recognized for complex treatments as IVF, neonatal care, organ transplant and open heart surgery One of the first private hospitals to introduce radiotherapy in Cairo, positioning it as an oncology center Oncology department with state of the art linear accelerator (Varian) 117 highly qualified resident doctors and 255 nursing staff 269 practicing physicians / consultants(2) Serves GAMCA patients

All hospitals are located in catchment areas benefiting from high demand from these locations’ affluent target markets

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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IV

Leverage on Integrated Platform and Scale to Extract Synergies

Institutionalized Group Management

Centralized Procurement

Unified Business Development Function

• Centralized functions including quality control, IT, HR, finance, legal, business development and supply chain • Bottom-up business planning

• Centralized procurement strategy and function

• Leverage Group position to forge win-win agreements with leading corporate, and insurance clients • Centralized relationship with contract clients • One-stop-shop approach

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

• Shared cost benefits • Standardized and improved quality • Improve collection / billing • Enhanced operations / management • Stronger bargaining power • Significantly enhanced margins

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V

Solid Operational and Financial Performance with Potential for Enhanced Profitability

Group Revenue(1) (EGP mn)

543 99 87 114

16%

16%

17%

Group Gross Profit(1) (EGP mn, Margin) 865

748 639

144 156

139 128 149

118 107 123

31%

290

332

380

2013

2014

2015

2016

33%

27%

525 413

185

243

31%

69 77 88 179 1H16

229

167 28 27 35 78

1H17

2013

88 92 116

30%

243

262

39 41 40

35 41 46

92

123

139

2014

2015

2016

195 35 32 36

Group EBITDA(1) (EGP mn, Margin) 32%

132 19 23 23 68 1H16

30%

21%

159 19 23 32 86

111 13 13 27 58

1H17

2013

24%

22%

177 23 25 30

194 21 27 36

72

99

110

2014

2015

2016

23%

146 21 26 27

23%

21%

95 11 16 18 50

108 9 9 20 70

1H16

1H17

Cleopatra CSH NBH Al Shorouk

Number of Inpatients (‘000s)

46.9

2014

45.8

2015

Outpatient Visits (‘000s)

48.8

2016

23.1

22.6

1H16

1H17

Revenue per Inpatient (EGP)

472.3

554.8

2014

2015

Number of ER Patients (‘000s)

253.5

607.2

2016

333.7

327.6

1H16

1H17

Revenue per Outpatient (EGP)

42%

2014

254.1

2015

130.1

119.3

1H16

1H17

Revenue per ER Patient (EGP)

8%

6,430

33.9

254.3

2016

2014

35.1

2015

209

148

36.5

2016

17.6

16.4

1H16

1H17

Revenue per Surgery (EGP)

34%

4,513

Ramadan Effect(2)

Number of Surgeries

34%

197

4,707

6,288

194 1H16

1H17

1H16

1H17

1H16

1H17

1H16

1H17

Despite the seasonality effect on the operational figures of 1H17 vs 1H16, CHG was able to enhance its revenue mix, coupled with a price increase, which resulted in an overall increase in revenues and an improvement in the service offering Note(1): based on pro-forma accounts Note(2): The month of Ramadan came in June 2017 vs July 2016, which accordingly affected the H1 2017 volumes

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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VI

Seasoned Management Team with Strong Track Record Backed by Strong Corporate Governance Board of Directors

Audit Committee Ola Ahmed

Dr. Ahmed Ezz El Din – Chief Executive Officer

Internal Audit Manager

Khaled Hassan – Chief Financial Officer Dr. Amani Adeeb

Amr El Ashkar

Marketing Director

Information Technology Director

Hoda Yehia

Hassan Fikry

Investor Relations Director

Corporate Strategy Manager

Marwa El Abassiry

Haitham Naiel

Human Resources Director

Legal Director

Dr. Sherif Abdel Fattah

Tamer Salah

Supply Chain Director

Business Development Manager

Prof. Moharam El Badawy

Recently Hired

Chief Operating Officer (West Cairo)

Chief Operating Officer (East Cairo)

Dr. Khaled Noury

Dr. Hamada A.Hamid

Prof. Hassan Shaker

Dr. Mohamed Ibrahim

Dr. Hamdy Tawfik

NBH MD

ASH MD

CSH MD

CHC MD

Polyclinics MD

Prof. Nagwa Al Husseiny Quality Director

Amr Sherif

Vacant Position

Head of Engineering

Patients Experience Manager

Well Structured BoD(1) Healthcare Experts Dr. Mohamed Awad Tag El Din

Dr. Tarek Zahed Non-Executive Chairman

Financial and Investment Experts

Dr. Ahmed Ezzeldin

Sameh Mohsen

Nabil Kamhawy

Executive Member & Group CEO

Founder / Previous CEO Cleopatra Hospital

Former Head of Ernst & Young Egypt

Ahmed Badreldin Partner - Abraaj

Former Minister of Health

General Omar Kinawy Former Deputy Head of Intelligence

Omar Ezz Al Arab Director - Abraaj

Lobna El Dessouky Senior Advisor - EBRD

Active Board Committees Audit

Remuneration

Medical Ethics & Quality

Nabil Kamhawy, Chairman

Ahmed Badreldin, Chairman

Dr. Mohamed Awad Tag El Din, Chairman

Note(1): Non-independent directors, excluding Sameh Mohsen, are appointed on behalf of Care

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

Independent members

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VII

Clearly Defined Growth Strategy Focused on CHG’s Key Pillars

I

II Enhancing utilization and optimizing existing capacity

Integrating the platform to achieve higher efficiencies

Centralized Procurement

III

Enhancing efficiency of underperforming assets through proper management and targeted investments

Institutionalizing Group Management

Unlocking Potential Attracting Insurance & Corporate Clients

Comprehensive Service Platform

Upgrading and Enhancing Medical Staff Standard

Upgrading Equipment and Facilities

Patient Care Quality & Management

Expanding hospital capacities and feeder network  336.5 m2 plot of land adjacent to Al Shorouk  Multi-specialty general hospital adjacent to Al Al Shorouk Shorouk, with a focus in ICU

Extension  1,176 m2 plot of land adjacent to Cleopatra  This land is planned to host an extension of the hospital, to serve the overflow of patients Cleopatra  The Group is still involved in an administrative lawsuit for rezoning the existing villa Extension  1st Polyclinic in New Cairo is earmarked for operation before the end of the year  Site identification for CHG’s second Polyclinic in Polyclinics West Cairo is ongoing

1.

Renovation and upgrade of the facilities

2.

Negotiating better deals with contractual clients and attracting better contractual clients profiles

3.

Attracting the right consultants and doctors

4.

Upgrading / adopting new and advanced medical technologies

 CHG signed definitive agreements to acquire the real estate assets and operational assets of a leading hospital in West Cairo, which is expected West Cairo Acquisition(1) to close in 4Q2017

Beni Suef Project

 An investment in a brownfield hospital project in Beni Suef, expected to contribute to revenues by 2018

Note (1): This acquisition is still pending the completion of certain condition precedents and may not be completed for the above mentioned or any other reason

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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VII

Clearly Defined Growth Strategy Focused on CHG’s Key Pillars (Cont’d)

IV

V Strengthening unified brand Creating an Umbrella Brand Synonymous with Quality Patient Care

Phase 1 Corporate Positioning

Phase II Promoting Umbrella Brand

 Upgrading equipment / standardize quality of all services across the Group  Attract best-in-class doctors  Standardize staff levels and skills  Creating the Group’s brand identity  Retain individual brands, while positioning the individual hospitals under the new umbrella brand

Target Unified Group Brand Identity

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

VI Leveraging stronger position with insurance and contract clients

Establish centers of excellence and achieve international accreditation Establish Centers of Excellence (CoEs) to Drive Higher Margins

MetLife Insurance Pricing Classification MetLife Gold Card  Hospitals included solely in this group are considered of premium quality  Relatively more expensive services  Exclusively available for the highest insurance package holder

MetLife Silver Card  2nd tier hospitals included  Midsized insurance packages

 The Group is laying the groundwork to expand its Centers of Excellence (CoEs) network, focusing on the provision of tertiary services based on each asset’s unique strengths Cleopatra CSH

Orthopedic

Micro-invasive Surgeries

Cardiology

NBH

Oncology

ASH

Neuroscience

Radiology

Spine Surgery Bariatric

Renal Transplantation Urology

Achieve Joint Commission International (JCI) Accreditation  CHG has undergone an in-house accreditation assessment in Q1 2017, and is currently implementing its roadmap to accreditation  The assessment identified key gaps across JCI’s different assessment criteria, as well as guidelines for a readiness roadmap  CHG’s hospitals are scheduled to undergo a mock survey by Q1 2018  The Group’s goal is to have CHC and NBH accredited by Q4 2018

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Use of Proceeds

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Key Terms and Use of Proceeds – Rights Issue

CHG’s Rights Issue • On the 30th of September 2017, CHG’s EGM convened and approved an EGP 700mn capital increase at par value of EGP 0.5 • The EGM also approved the trading of subscription rights with existing shareholders having the right to either subscribe to the capital increase or sell their subscription rights in the market • The subscription period is expected to open by early-November 2017 for 30 calendar days(1)

Use of Proceeds 170 Beds Hospital Acquisition(2)

• CHG has signed exclusivity to acquire – subject to conducting due diligence – a hospital to the north of Cairo, its first expansion into this area • The 170 beds hospital acquisition will equip the Group with a new asset within a one-hour radius of Cairo

Deleverage CHG’s Balance Sheet

• On the back of the high interest rate environment that is currently being witnessed, CHG is planning to improve its profitability by retiring EGP 120 million of its existing debt

Note(1): Exact dates are subject to change and may vary as per the approvals process Note(2): This acquisition is still in the due-diligence phase and the management may opt to not pursue the acquisition for any reason

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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Positive Operational Impact on CHG(1)

170 Beds Hospital Acquisition

H1 2017 Pro-forma Cases Served (‘000s) c.15

c.63 544

466

CHG (Actual)

• CHG aims to expand from capital cities to Tier 2 cities to reach an underserved population of c.16.6 million through the acquisition of a premium hospital (the “Target”) • Currently, the Target has 170 beds and an attractive set of KPI’s increasing CHG’s market dominance and scale throughout Egypt

• The target has an adjacent plot of land for an envisaged expansion which would increase the total bed capacity to c. 300 beds 170 Hospital Beds

30+ | 5+

West Cairo Acquisition

(2)

(2)

Target

H1 2017 Pro-forma # of Beds c.92

c.170 897

635

CHG (Actual)

West Cairo Acquisition

(2)

(2)(3)

Target

Built-up Area over an area of 2,500m2

CHG (Pro-Forma)

Positive Financial Impact on CHG(1) H1 2017 Revenue per Bed (EGP ‘000s)

ICU Beds | Emergency Beds

825

10,000m2

CHG (Pro-Forma)

c.680 c.500

10+ Operating Rooms CHG

Blood Bank

+95%

Ownership

Occupancy Rate

(2)

West Cairo Acquisition

Target

(2)

The West Cairo Acquisition and the Target have a similar profitability profile as Cleopatra Hospital

Note (1): The West Cairo Acquisition is still pending the completion of certain condition precedents and may not be completed for the above mentioned or any other reason, and the Target acquisition is still in the due-diligence phase and the management may opt to not pursue the acquisition for any reason Note(2): all figures are based on management accounts, and is to subject to diligence and audit, and involve a number of risks, uncertainties and assumptions that could cause actual results and performance to differ materially Note(3): Expected to increase to 108 beds post expansion

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23

Deleverage CHG’s Balance Sheet by Fully Repaying MTL1 Facility Overview – MTL 1 Commercial International Bank

Lender

Type

Medium Term Loan

Purpose

Finance Hospitals’ Acquisition

Total Amount

EGP 203.0mn

Outstanding Amount(1)

EGP 121.8mn

Interest Rate

The aggregate of: i. The Margin plus; ii. CBE Corridor Lending Rate

Margin

2.4%

Rationale Corridor Rate (%)

 CHG’s interest expenses are calculated as a spread over the corridor rate

19.25%

21.0%

 Hence, CHG has witnessed a significant increase in interest expenses on the back of the recent interest hikes that has been taking place over the past 2 years in Egypt

1,010 BPs cumulative increase in the past 2 years

16.0%

11.0%

 In order to enhance profitability, CHG is planning to partially repay part of its existing debt, accordingly decreasing its yearly interest expenses

6.0% Aug-15

Dec-15

Apr-16

Aug-16

Dec-16

Apr-17

Aug-17

Interest Expense Savings Following EGP 120mn Debt Repayment H1 2017 Assumed Net Profit before Tax(2)

Estimated Full Year Effect of MTL 1 Interest Expense(4)

11.2

24.7

Tenor

5 Years

31.2

80.5

69.3

6.5

Remaining Years(1)

3 Years

(3)

NPT (Actual)

Interest Expense Saving

(2) (3)

NPT (Assumed)

MTL 1 Interest Expense 2017E

Interest Expense Saving

Interest Expense (Assumed)(4)

Note(1): As of December 2017 based on the debt schedule; Note(2): Assuming the EGP 120mn for debt repayment were paid 1/1/2017 Note(3): NPT – Net Profit before Tax; Note(4): Assuming the EGP 120mn for debt repayment were paid 1/1/2017

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

24

Appendix I: Financial Statements & Management Commentary

Consolidated Income Statement All figures in EGP mn Revenues

FY15

FY16

change

1H16

1H17

change

411.5

864.4

110%

413.4

523.9

27%

Cost of sales

-271.8

-614

126%

-286.61

-370.2

29%

Gross profit

139.8

250.4

79%

126.8

153.7

21%

34%

29%

31%

29%

-40.7

-107.5

164%

-55.9

-75.1

34%

-3.4

-4.1

21%

-9.2

-4.6

-50%

2.5

6.3

152%

3.9

2.6

-34%

EBIT

98.2

145.0

48%

65.6

76.6

17%

EBIT Margin

24%

17%

16%

15%

Interest income

6.3

32.3

413%

5.3

26.9

406%

Interest expense

-8.5

-57.4

575%

-28.8

-34.2

19%

Profit before tax

96.0

119.9

25%

42.1

69.3

65%

PBT Margin

23%

14%

10%

13%

Income tax

-24.9

-31.1

25%

-14.4

-17.7

23%

Deferred tax

-2.2

0.5

-123%

3.1

1.0

-68%

Net profit after tax

68.9

89.4

30%

30.8

52.6

71%

Net Profit Margin

17%

10%

7%

10%

Gross Profit Margin G&A Expenses Provisions Other income

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Consolidated Balance Sheet All figures in EGP mn

31 December 2016

30 June 2017

All figures in EGP mn

31 December 2016

30 June 2017

Non-current liabilities Non-current assets

Long term debt

Fixed assets

396.7

Intangible assets

246.4

Total non-current assets

643.1

429.8

326.0

301.1

Share Base Payment

-

6.4

243.6

Deferred tax liability

60.0

59.0

673.4

Total non-current liabilities

386.0

366.5

24.9

25.9

175.2

215.4

CPLTD

52.2

68.2

Current Income tax

31.6

17.5

Current assets

Current liabilities -

0.0

46.1

45.7

125.9

161.7

25.6

46.0

Cash

439.6

415.2

Total current liabilities

283.9

326.9

Total current assets

637.3

668.6

Total liabilities

669.9

693.4

1,280.4

1,342.1

1,280.4

1,342.1

Share capital

100.0

100.0

Reserves

298.0

298.0

Retained earnings

168.7

202.4

Equity attributable to the parent company

566.7

600.4

43.8

48.3

610.5

648.7

Investments held to maturity Inventory Accounts receivables Debtors and other debit balances

Total assets

Provisions Creditors and other credit balances

Total Liabilities & shareholders’ equity

Equity

Non-controlling interest Total equity

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

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Consolidated Cash Flow Statement All figures in EGP mn

FY15

FY16

1H17

Cash flow from operating activities: Profit before tax

96.0

119.9

69.3

All figures in EGP mn Cont’d Cash flow from investment activities:

FY15

FY16

1H17

0.0

-

0.3

(10.4) -

(44.6) -

(29.5) (22.4) -

(306.9)

(235.1)

-

6.2

25.6

26.6

(62.9)

(332.3)

38.6

(374.0)

(586.4)

13.6

203.0 (8.5) 194.5

20.0 208.7 (32.7) 340.0 (43.9) 492.1

12.0 (13.0) (14.0) (20.8) (35.9)

Net change in cash & cash equivalents during the period

(6.6)

(2.6)

14.3

Cash & cash equivalents at the beginning of the period

53.6

47.0

44.4

Cash & Cash Equivalents at the End of the Period

47.0

44.4

58.6

Proceeds from sale of fixed assets Adjustments for: Depreciation Fixed assets write off Amortization of intangible assets Allowance for impairments of receivables no longer required Allowance for impairments of receivables Allowance for impairments of inventories Allowance for impairments of receivables – written off Provisions Provisions no longer required Other utilized provisions Capital gain Employee incentive plan Interest and commissions Income tax paid Credit interest Operating Profits before changes in working Capital Changes in working capital: Change in inventory Change in trade & notes receivable Change in other debit balances Change in due from related parties Change in trade and other credit balances Net cash flow from operating activities

9.4 -

26.7 5.3

15.3 3.3 2.7

-

(8.0)

(6.8)

7.9 -

25.6 -

13.9 0.2

-

(6.8)

(3.5)

3.4 (6.8) 8.5 (21.4) (6.2)

10.9 (6.7) (11.2) 57.4 (35.7) (25.6)

5.5 (0.9) (3.6) (0.1) 6.4 33.6 (21.2) (26.9)

90.8

151.8

87.1

(2.0) (12.4) 29.0 67.4 172.8

Cleopatra Hospitals Group | Roadshow Presentation Excellence in Healthcare

(21.9) (26.4) (50.5) 38.7 91.6

0.2 (39.4) (30.6) 19.2 36.5

Fixed assets and PUC purchased Payments for projects under construction Intangible assets purchased Payments to acquire subsidiaries, net of cash acquired Interest received Time deposits with maturity more than 3 month Collected from housing bonds Net cash flow from investment activities Cash flow from financing activities: Payment to increase share capital Proceeds from borrowings Interest paid Dividends paid Share premium collected Repayment of borrowings Net cash flow from financing activities

28

Appendix II: Egypt Macro Update

Egypt Macro Update Comprehensive Reform Program Government Reform Program Key Milestones Energy Subsidy Cuts

EGP Flotation

Fiscal & Monetary

Stamp Duty Tax

Eurobond Issuance Summary VAT

Eurobond Issuance Date

Social Support Net

Egyptian Pound (“EGP”) Performance

Round 1

Round 2

17/01/2017

24/05/2017

12 Month NDF

EGP:USD

20 EGP Floatation

Principle Amount Civil Service Law

Investment Law

Bankruptcy Law

Ongoing Capital Controls Easing

Legislative

Tranches Subscription

USD 4.0bn

USD 3.0bn

Triple Tranche

Triple Tranche

3.1x

4.0x

15 10 5 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17

Recovery in Macroeconomic Conditions and Equity Markets Foreign Reserves (USD bn)

Credit Default Swap

Reserves jumped to a record confidence surged since the country embarked on the IMF economic program

35.0 30.0 25.0

Foreign reserves drop significantly on the back of 25-Jan Revolution

20.0

EGX 30 Performance EGX 30 Index hikes as it adjusts to the floatation of the EGP and restore investors’ confidence

CDS reaches record levels following period political turmoil and economic uncertainty

15.0 10.0 5.0 0.0

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Source : Bloomberg

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