Corporate Summary

3

Introduction: An Egyptian exporter

Split of sanitary ware and tiles1Split of domestic and export1

* All production facilities are owned and controlled by Lecico

Alexandria

KhorshidBorg El-Arab

Cairo

Established 1997

Sanitary ware capacity

2.0 million pcs 2005

4.4 million pcs end 2007

Tiles capacity

6.4 million m2 mid – 2011

12.8 million m2 mid – 2013

Brassware capacity

0.3 million pcs mid – 2010

Borg El-Arab

Established 1975

Sanitary ware capacity

2.5 million pcs 2005

1.8 million pcs (inc FC) end 2008

Tiles capacity

17.0 million m2 2005

21.4 million m2 mid - 2007

Khorshid

Established 1959

Sanitary ware capacity:

350,000 pcs 2007

Tiles capacity

1.1 million m2 2005

Kfarchima

Kfarchima Beirut

Lecico Egypt S.A.E. – one of the world’s largest sanitary ware

producers – was founded in 1959 and has been majority owned by

the Gargour family since 1969

The company has a global competitive advantage making European

quality sanitary ware at Egyptian costs

c45% of Lecico’s sanitary ware sales volume is exported to Europe

Lecico finished expansions in sanitary ware in 2007 which boosted

capacity to 6.5m pieces of sanitary ware and fired clay

In Summer 2010, Lecico began brassware production with a 300,000

piece per annum capacity factory

In 2011 Lecico opened a new tile factory in Borg El Arab which

reached 12.8m sqm capacity in 2013 (Total tile capacity 35m sqm)

In mid-2014, Lecico faced a 133% increase in gas prices driving a

20% increase in production costs

Note: (1) FY 2015 3

A major sanitary ware exporter

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A major sanitary ware exporter to Europe

Growth in group’s exports

Export focus on Europe

• Sanitary ware export volumes grew at 1.9% CAGR (2005-2015)

• Sharp slowdown in Middle East exports in 2014 onwards

• Average of over 75% of exports are to Western Europe

• Percentage has risen in the last two years as Middle Eastern

markets have weakened and regional competition increased

Lecico’s total export volumes (sanitary ware) Egypt’s leading sanitary ware exporter

Europe as percentages of total exports Growth of Lecico brand sanitary ware market share in UK

• Lecico exports c56% of its sales vs. 20% for local peers

• Lecico sells to over 50 countries (including OEM sales)

• Approximately 26% of exports (15% of sanitary ware

sales volumes) are for other brands

• Lecico represents over 50% of Egypt’s sanitary ware

exports with the balance split among 9 manufacturers

• UK estimated c16% market share in Lecico-branded sales

• A further c3% market share in OEM and white label sales to

the UK

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Significant cost advantage

International cost advantage

Lecico produces sanitary ware at an all-in average cost of US$15.50/piece

– In Egypt, manufacturing cost averages US$11.24/piece of sanitary ware

– The difference reflects higher packing costs for EU-destined exports and significantly higher industrial cost in Lebanon

– Costs have risen in the past few years due to energy cost inflation in 2014 and reduced production utilisation

– Our information suggests other low cost producers’ manufacturing cost averages US$15-30/piece

– While European producers average US$30+/piece depending on their market

Why is Lecico able to produce so competitively?

– Egypt: Low energy costs, low labour cost, low investment costs, low effective taxes

– Size: Economies of scale, standard global plant size: 1m pieces

– Experience: Over 50 years manufacturing experience

– Efficiency: Production per employee is over twice that of our local competitors

Investment, distribution and overheads benefit from regional economies of scale

– Sanitary ware investment cost approx US$30-40/piece vs. US$35-55/piece global standard

– Low shipping cost to Europe: US$1.50 per sanitary ware piece vs. approx US$8+ for Asian manufactures

Cost increases 2014

Energy price increases add LE 200 million in costs

Item Increase Impact

Natural Gas 133% from USD 3.0/mbtu to USD 7.0/mbtu 70% of energy costs, energy is 20% of cogs

Electricity 33% from EGP 0.33/KwH to EGP 0.42/KwH 30% of energy costs, energy is 20% of cogs

Diesel petrol 64% from EGP 1.10/ltr to EGP 1.80/ltr All goods and materials will face inflation

Cheapest (80 Octane) petrol 78% from EGP 0.90/ltr to EGP 1.60/ltr General inflation in Egypt

In July 2014, the government announced an massive increase in energy prices which will have a

profound effect on Lecico’s financials:

Lecico estimates that these changes increase cost by at least LE 200 million per year:

– Change raise COGs to about LE 200 million assuming volumes unchanged and no improvement in production/cost structure

– Approximately LE 11 (USD 1.55) extra cost per piece of sanitary ware (c 30% of the LE 200 million plus increase in costs)

– Approximately LE 4 (USD 0.55) extra cost per square meter (c 70% of the LE 200 million increase in costs)

– In 2H 14 and 1H 15, Unit cost increases have matched forecasts despite significant squeeze on volumes as a result of:

– Better energy recuperation and continued efficiency/de-bottlenecking improvements

The additional LE 200 million in costs is more than our annualised profit

– Net profit for the 12 months from 3Q13-2Q14 was LE 120.1 million

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Lecico enacted significant price increases in 08/14…

On average Lecico needs around a 15% price increase to cover the cost inflation

– By segment we need a 9% increase in sanitary ware and a 20% increase in tiles average group consolidated prices

– This would only absorb costs and would still result in lower margins (%)

– To date, we have only agreed increased prices of Sanitary ware in Egypt and some export markets

– Price increases done to Middle East markets and Egyptian tiles in 2H 2014 have been rolled back due to competition

So far, Lecico has raised average prices by around 3%:

– Tile average prices have been reduced 1% from 2014 levels, reducing the price raising the average price USD 0.02/sqm vs the USD 0.55

increase needed.

– Sanitary ware average prices have increased 6% from 20134 levels, raising the average price USD 1.10/pc vs USD 1.55 needed

Increases cover approximately 20% of the LE 200 million or more forecasted cost increase

– Lecico has also improved energy utilisation to reduce the impact of the increase and COGS have increased 10% compared to revenues year-

on-year in 2015.

– However the drop in volumes has meant that annualised gross profits are down approximately LE 170 million if we compare 2015 to 2014

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…but oversupply has sharply hit sales volumes

Consumer demand in Egypt squeezed since 2H 14

– Consumer inflation squeezed spending on tiles and sanitary ware from 2H 2014 onwards with sales in Egypt falling 8% in 2015 year-on-year

– Added competition particularly in tiles and sluggish economy

Exports to Libya also limited and fragile

– The Middle East in general and Libya in particular have been sharply affected by regional instability

– Sales to Libya were down 62% year-on-year in 2015

– Combined with slowing sales to Egypt this creates an even greater gap between production and sales capability for Lecico and peers

particularly in tiles which were primarily a domestic and regional export business

Egyptian market facing surplus capacity of around 30% in tiles

– Informal market data suggests that installed tile capacity in Egypt reached 490 million square meters per day while actual production is around

340 million square meters

– Lecico Egypt tile sales are down 19% year-on-year

Increased price competition as manufacturers fight for market share

– Price competition and aggressive bargaining to shore up market share have been common in 2H 2015, forcing Lecico to reduce prices in tiles

Higher costs and lower sales have taken Lecico from most profitable first half ever (1H 2014) to the

significant losses in 2015

2016 is likely to be an even more challenging year given the reduction in volumes and tile prices over the

course of 2015.

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Cost increase and slowdown since 2H14

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Lecico Group 2013 2014 2015

Sanitary Ware Analysis 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Q1 Q2 Q3 Q4 FY FY FY

Volume (000's pieces)

Egypt 670 668 511 645 473 645 533 415 470 555 464 507 2,494 2,066 1,995

Lebanon 36 83 52 21 25 39 76 10 18 29 35 27 192 150 109

Exports 655 779 794 763 796 845 711 766 751 766 613 600 2,990 3,118 2,730

Total Volume 1,361 1,530 1,357 1,428 1,294 1,530 1,319 1,191 1,239 1,350 1,112 1,134 5,676 5,335 4,835

Average Selling Price 123.8 130.9 137.2 127.5 133.2 137.3 146.8 143.1 142.1 143.7 163.3 146.9 129.8 140.0 148.5

Revenue 168.5 200.3 186.1 182.0 172.4 210.1 193.6 170.5 176.0 194.0 181.6 166.5 737.0 746.6 718.2

Cost of Sales 134.9 157.9 143.9 139.2 130.0 154.4 165.3 143.0 134.3 157.5 140.9 149.8 575.9 592.7 582.6

Average Cost Per Piece 99.2 103.2 106.1 97.5 100.5 100.9 125.3 120.0 108.5 116.7 126.7 132.1 101.5 111.1 120.5

Gross Profit 33.5 42.4 42.2 42.9 42.3 55.7 28.4 27.5 41.7 36.5 40.7 16.7 161.0 153.9 135.5

Gross Profit Margin 20% 21% 23% 24% 25% 27% 15% 16% 24% 19% 22% 10% 22% 21% 19%

Lecico Group 2013 2014 2015

Tile Analysis 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Q1 Q2 Q3 Q4 FY FY FY

Volume (000's sqm)

Egypt 5,070 5,992 5,898 6,950 6,525 6,764 7,247 4,921 4,877 6,164 4,964 4,575 23,910 25,457 20,581

Lebanon 424 695 378 409 521 398 611 73 210 359 303 202 1,906 1,603 1,074

Exports 1,714 1,955 2,116 1,891 1,744 1,887 652 1,702 1,011 1,353 625 1,142 7,676 5,985 4,132

Total Volume 7,208 8,642 8,392 9,250 8,790 9,049 8,510 6,697 6,098 7,876 5,892 5,919 33,492 33,045 25,786

Average Selling Price 21.1 21.8 21.8 21.5 22.7 22.6 24.2 25.5 23.2 24.0 24.9 21.7 21.6 23.6 23.5

Revenue 152.4 188.7 182.7 198.6 199.4 204.1 206.2 170.7 141.3 188.7 146.9 128.4 722.4 780.5 605.4

Cost of Sales 96.6 116.8 117.8 129.4 128.9 130.1 150.7 122.0 115.1 149.3 118.4 127.6 460.7 531.7 510.4

Average Cost Per sqm 13.4 13.5 14.0 14.0 14.7 14.4 17.7 18.2 18.9 19.0 20.1 21.6 13.8 16.1 19.8

Gross Profit 55.7 72.0 64.8 69.1 70.5 74.1 55.5 48.7 26.2 39.4 28.6 0.8 261.7 248.8 95.0

Gross Profit Margin 37% 38% 35% 35% 35% 36% 27% 29% 19% 21% 19% 1% 36% 32% 16%

2013 2014 2015

2013 2014 2015

Cost increase and slowdown impact since 2H 2014

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Lecico Group 2013 2014 2015

Profit & Loss (LE Million) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY FY

Sanitary Ware 168.5 200.3 186.1 182.0 172.4 210.1 193.6 170.5 176.0 194.0 181.6 166.5 737.0 746.6 718.2

Tiles 152.4 188.7 182.7 198.6 199.4 204.1 206.2 170.7 141.3 188.7 146.9 128.4 722.4 780.5 605.4

Brassware 11.0 11.0 9.2 10.4 12.0 11.2 11.4 11.6 11.9 12.1 10.3 12.6 41.6 46.1 46.9

Net Revenues 331.9 400.0 378.0 391.0 383.8 425.4 411.3 352.8 329.2 394.9 338.9 307.6 1,500.9 1,573.2 1,370.5

Cost of Sales 240.8 282.5 268.0 275.8 267.6 291.8 323.0 271.4 256.2 314.3 266.2 288.2 1,067.1 1,153.7 1,124.8

Gross Profit 91.0 117.5 110.0 115.2 116.2 133.6 88.3 81.4 73.0 80.6 72.7 19.4 433.8 419.5 245.7

% of Sales 27% 29% 29% 29% 30% 31% 21% 23% 22% 20% 21% 6% 29% 27% 18%

Selling expenses 17.3 20.6 18.1 20.7 14.6 18.8 15.8 16.6 17.8 20.0 20.3 24.8 76.7 65.8 83.0

Administration expenses 31.3 33.2 32.4 36.0 30.4 33.7 33.0 29.8 32.4 33.1 36.0 31.6 133.0 126.9 133.1

Overheads 48.7 53.7 50.6 56.7 45.0 52.5 48.8 46.4 50.2 53.1 56.3 56.4 209.7 192.7 216.0

% of Sales 15% 13% 13% 15% 12% 12% 12% 13% 15% 13% 17% 18% 14% 12% 16%

Operating Profit (EBIT) 42.4 63.8 59.5 58.5 71.2 81.2 39.5 35.0 22.8 27.4 16.4 (37.0) 224.1 226.8 29.6

% of Sales 13% 16% 16% 15% 19% 19% 10% 10% 7% 7% 5% -12% 15% 14% 2%

Net Financial Expenses (23.0) (27.9) (28.1) (27.0) (22.1) (23.2) (22.2) (23.8) (19.8) (20.1) (20.1) (19.3) (106.0) (91.3) (79.3)

Dividend Income (0.0) 3.4 (0.2) (103.0) (0.0) 2.5 0.0 0.1 0.0 2.4 0.0 0.0 (99.7) 2.6 2.5

Exchange Variances 8.2 6.2 (4.6) 5.3 0.5 9.5 (0.3) (0.5) 7.6 2.9 2.3 (1.2) 15.2 9.2 11.6

Profit before tax 27.6 45.5 26.7 (66.2) 49.6 69.9 17.0 10.7 10.6 12.7 (1.4) (57.4) 33.6 147.3 (35.6)

% of Sales 8% 11% 7% -17% 13% 16% 4% 3% 3% 3% 0% -19% 2% 9% -3%

Taxes , profit share & minorities (11.3) (11.9) (9.0) (19.4) (14.6) (20.1) (11.7) (9.2) (8.4) (8.8) (7.3) (5.0) (51.6) (55.7) (29.5)

Net Profit after tax 16.3 33.6 17.6 (85.5) 35.0 49.8 5.3 1.5 2.2 3.9 (8.7) (62.4) (18.0) 91.6 (65.1)

% of Sales 5% 8% 5% -22% 9% 12% 1% 0% 1% 1% -3% -20% -1% 6% -5%

2013 2014 2015

Strategy for 2016: Gain volumes and cut costs

Lecico enacting aggressive pricing solutions to gain volumes in Egypt and export

– Lecico decreased tile prices by c 12% through three price reductions enacted over 2015.

– Lecico introducing new lowest cost/lowest price tile and sanitary ware solutions

– Lecico pushing for expanded retail footprint in Egypt, increasing independent and direct sales showrooms dramatically

– Lecico looking for new export opportunities in tile and sanware with aggressive pricing to replace lost sales in Egypt and Libya

Lecico taking defensive measures to shore up P&L and cash flows

– Lecico has mothballed 30% of tile capacity and 12% of sanitary ware capacity from the start of the year reducing fixed costs

– Lecico has unwound part of its long FX position reducing interest expense by an estimated LE 21 million per year

– Lecico is looking reduce working capital and expenses in 2016 to deliver best possible cash flow and relative earnings in this difficult period

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Financial overview

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Profit and loss

Net sales Cost of sales breakdown (9m 2015)

EBIT Net Profit *

* = 2013 net profit excludes write-off for France

16

Quarterly P&L Trends

Net sales Gross profit*

EBIT* Net Profit*

* = 4Q 2013 net profit excludes write-off for France

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Segmental analysis

Sanitary ware – sales volumes and revenue Sanitary ware – gross profit and marginSanitary ware – selling price and cost per piece

Tiles – sales volumes and revenues Tiles – selling price and cost per sqm Tiles – gross profit and margin

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Quarterly Segmental trends

Sanitary ware average price, cost and profit per piece Sanitary ware sales volume

Tile Average Price, Cost and Profit per sqm Tile sales volume

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Balance sheet and cash flow

Working capital

Returns and leverage Capital expenditures 2016f

Maintenance Capex and tile diversification investment LE 60.0m

Share performance and data

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Shareholding structure and performance

Lecico valued at a market cap of US$ 31 million with a 51% free float

– All activity is in the local share

– Local share trades circa US$ 13,000 per day and on 70% of trading days (FY 2015)

Share liquidity overview (Local)

Liquidity has moved to local share and improved Lecico share price

Lecico trades at a EV/EBITDA multiple of 7.8x 2015 results

– Price to book value of 0.3x

– With a net loss the company does not have a PER for 2015

Shareholding structure

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Thank you

For additional information, please contact:

Taher G. Gargour

Telephone: +203 518 0011

Fax: +203 518 0029

E-mail: tgargour@lecico.com

Visit our website at: www.lecico.com

Forward-looking statements:

This presentation may contain certain “forward-looking statements”, relating to Lecico Egypt S.A.E. business, which can be identified by the use of forward-looking terminology such as “will”, “planned”, “expectations”, “forecast” or similar expressions, or by discussions of strategy, plans or intentions. Such statements may include descriptions of investments planned or currently under development by Lecico Egypt S.A.E. and the anticipated impact of these investments. Such statements reflect the current views of Lecico Egypt S.A.E. with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of Lecico Egypt S.A.E. to be materially different from any future results that may be expressed or implied by such forward-looking statements.