Al-Alamein

Petrochemicals
Complex
1
PROJECT SUMMARY

Acting as Project General Partner, Shard AIDA will deliver and oversee the creation of a profitable and sustainable high-
margin Petrochemicals business based upon:

• Strong feedstock arrangements for the supply of domestic Egyptian Western Desert Crude (WDC), a “light sweet” with a
high Naphtha content - particularly suited to the production of high-value petrochemical derivatives.
• Construction of a new optimised state-of-the-art combined refinery/production complex built in the Al-Alamein Industrial
Zone, New Alamein City. It will receive crude feedstock by pipeline direct from the WDC oil fields, close to the port of El
Hamra (giving easy access to the targeted European, Asian and African markets), and close to the centre of Egypt’s premier
industrial development zone.
• The Complex will produce high-margin offtakes: addressing rising demand for speciality petrochemicals used in plastics,
artificial rubber, packaging, construction, adhesives and a host of other consumer and industrial applications.
• There is Government support across multiple ministries and a 6% shareholding held by The Egyptian Petrochemicals
Holding Company (“ECHEM”), an entity of the Egyptian Ministry of Petroleum (“EMPC”).
• The offshore ownership and English law structure of the project is supported by Government policies to enable and
encourage international investment.
• A highly experienced management team based in Cairo will oversee the project and ensure the return of capital to Limited
Partners. An experienced technical team is in place to oversee construction and EPC. A world class O&M contractor will be
engaged to run the Complex on completion. (Full org-charts are in data-room).
• Pre-FEED survey is underway with EPC and Project Management Team lined up for Fixed Price delivery contract.
• The project has been fully scoped and tested and by IHS Markit to confirm demand & supply metrics, infrastructure
requirements, and the optimal key products. The full report is available in the transaction data-room.
• Ernst & Young to generate their independent financial report indicating investments and total returns.
• ESG and CSR compliant – aim to abide with United Nations, IFC and European Taxonomy standards.
• Plant expected to enter full production and operation in Q4 2024.
• Exit from Investment 2028/2030.
• All development costs incurred by GP until pre-feed completion are non-recoverable

2
INVESTMENT SUMMARY (Based on IHS detailed feasibility study)

• Total Installed Cost of the project is expected to be $6.8 billion.

• $1.5 billion investment in OBSL development is under MoU. $5.3 billion investment in IBSL development and construction is
required.

• The investment format is unleveraged – pure equity.

RETURNS

• The objective of the General Partner overseeing the development is to ensure the prompt and early return of capital to the
Limited Partners.

• Based on a conservative 20 year long-term investment hold the project will achieve a Project IRR in excess of 15% (6.1 years
payback period).

• An exit strategy will be focused on a trade sale following full operational stage targeting an equity IRR in the range of 18% to
20% based on 15x P/E multiple and 9x EV / EBITDA multiple of comparable producers such as Yanbu, Sahara International
and Saudi Kayan starting from 2028 to 2030 assuming commissioning in end of 2024.

Project Economics 2025 2026 2027 2028 2029 2030 2031

Revenues ($MM) 2,501 3,221 3,912 4,183 4,375 4,534 4,686

EBITDA ($MM) 395 742 1,003 1,165 1,247 1,310 1,399

EBITDA Margin 16% 23% 26% 28% 29% 29% 30%

3
EXIT SCENARIO IRRs

Assumed P/E Multiple 15.0x

Exit Scenarios 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
2027 Exit @ P/E Multiple (1,304) (1,824) (2,085) 167 576 6,884
2028 Exit @ P/E Multiple (1,304) (1,824) (2,085) 167 576 815 9,221
2029 Exit @ P/E Multiple (1,304) (1,824) (2,085) 167 576 815 965 10,340
2030 Exit @ P/E Multiple (1,304) (1,824) (2,085) 167 576 815 965 1,037 11,173
2031 Exit @ P/E Multiple (1,304) (1,824) (2,085) 167 576 815 965 1,037 1,092 12,408
Gross Exit IRR 10.7% 17.0% 18.1% 18.3% 18.3%
Gross Investment Multiple 1.5x 2.1x 2.5x 2.8x 3.3x

Assumed EV / EBITDA 9.0x

Exit Scenarios 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
2027 Exit @ EV/EBITDA Multiple (1,304) (1,824) (2,085) 167 576 9,352
2028 Exit @ EV/EBITDA Multiple (1,304) (1,824) (2,085) 167 576 815 10,889
2029 Exit @ EV/EBITDA Multiple (1,304) (1,824) (2,085) 167 576 815 965 11,658
2030 Exit @ EV/EBITDA Multiple (1,304) (1,824) (2,085) 167 576 815 965 1,037 12,246
2031 Exit @ EV/EBITDA Multiple (1,304) (1,824) (2,085) 167 576 815 965 1,037 1,092 13,086
Gross Exit IRR 19.0% 20.5% 20.0% 19.5% 19.5%
Gross Investment Multiple 1.9x 2.4x 2.7x 3.0x 3.4x

4
RISK MITIGATION

• Limited technology risk – the industrial processes to create high value petrochems are well understood but have not been
combined into a single modern site before.

• Limited construction risk – the appointment of highly experienced EPC and project management team.

• Cost Overruns risks – EPC Lump Sum Turn Key Contract and contingency in financial planning.

• Fully mitigated project insurance and liquidated damages.

• Operations risk – Support from EPC contractor in terms of extended warranties and start up personnel, hiring of
experienced PMC to manage process from construction to operations with the EPC contractor, hiring of experienced O&M
contractor that has experience in operating similar facilities

• Long-term Feedstock contracts - Letters of intent from producers and supported by government

• Long-term offtake markets - commodity pricing well established with LoI’s in place to purchase entire production.

5
PROJECT PARTNERS
Government Agreements & Approvals

Utilities
CSR & Environmental

Financial, Legal Feedstock

& Insurance
Al Alamein

Refining &
Petchem
Complex Process & Petchem
Technology Providers

Offtake

Technical & Contracting

6
GOVERNMENT SUPPORT

Ministry of MOU with Land permit

Environment EGAS from New
approval letter (Egyptian Urban
for the project Natural Gas Communities
Holding Co.). Authority,
including
Ministry of
petrochemical Housing,
units Utilities &
Urban
Communities.

EGPC EEHC MOU with

(Egyptian (Egyptian WEPCO for
General Electricity El-Hamra port
Petroleum Holding Co.) upgrade.
Corporation) approval
letter
approval letter
confirming
confirming 3.1 the availability
MTPA of WD of the
crude oil required
power for the
project.

7
AL-ALAMEIN PETROCHEMICALS COMPLEX SCHEMATIC

Polypropylene – 830 KTA

MEG - 800 KTA

HDPE - 510 KTA

Propylene

WD Crude LDPE – 400 KTA

3100 KTA FEED Mixed Feed
Refinery Steam
Cracker ACETIC ACID – 258 KTA
Ethylene

VAM – 169 KTA

EPDM – 70 KTA

PVA – 30KTA
INVESTMENT STRUCTURE

9
PROJECT LOCATION

10
 Project Owner & Study Houses

Project Owner & Legal Counsels

PROJECT TIMELINE
Project Owner, Contractors &
PMCs

MILESTONES COMPLETED * Feb 2021 ………………………….. Jul 2021……………………………… Mar 2022 ……………………. Q4 2024

8 MONTHS 4 MONTHS 5 MONTHS 8 MONTHS 30 MONTHS

(Initially planned 3 mths, however (Initially planned 2 mths, however
extended to 8 mths due to COVID-19) extended to 4 mths due to COVID-19)

Comments and revisions

FSR - Detailed Feasibility

Study Report Reviewing
FSR
1. Marketing study
2. Configuration + list of
potential licensors (&
Final
EPCs)
configuration
3. Financial model and
Indicators
Pre-FEED Detailed
Procurement
Agreement with PMC Engineering Design
EPC + Licensor
EPC + Licensor
(Basic Engineering
Design) open book ‘cost+’
basis ±20% inaccuracy
Licensor Selection Construction

List of Validate
Licensors and Commissioning and
commercial
EPCs for Start-Up
viability and
indicative Freeze EPC
approval
basis

Cost Estimate Updating

financial
Investment Vehicle model Project Company
Approval

Release funding 11

* All development costs incurred by GP until pre-feed completion are non recoverable
DEAL TEAM

AIDA Engineer Development Team

John Craig Skipper: Mr Skipper is the project in-house counsel after 30 years at BP. He trained as a solicitor in
Aberdeen, Scotland. He held several positions within BP’s legal department and has extensive experience in
legal matters related to the petroleum industry.

Graham Scotton : Mr. Scotton has 43 years’ senior management experience in Europe, the Americas, Middle
East, Africa, and in the former Soviet Union leading the development and operation of new energy
businesses.​

David Clarkson: Mr. Clarkson is a chartered engineer with over 40 years extensive experience in the oil and gas
Industry. He spent 30+ years with BP rising to Senior Vice President for Projects and Engineering. He brings
extensive experience of major oil field developments in frontier areas and in leading their associated
Environment and Social Governance programmes.​

Eng. Ahmed Amin: Eng. Amin joins the team as consultant overseeing the process technology providers and
EPC. He has led several mega projects in Egypt. He is the Managing Director of the Integrated Consulting
Bureau (ICB), a leading firm in Projects developments, management and technology transfer in the Egyptian
Refining and Petrochemicals sector. He acted as a senior consultant for UOP, the leading Petrochem advisory
firm, for over 30 years. -​

12
DEAL TEAM

Owner Engineer Development Team

Dr. Mohamed Salheen: Dr. Salheen is advising the project on CSR and ESG matters. He is an advisor to three
Egyptian government ministries, using his experience to advise and guide on high level national projects. He is also
closely involved with international academic cooperation projects with Europe and is chairman of the EU Higher
Education Reform Experts (HEREs) team. ​

Sherif Saleh: Mr. Saleh is leader of the Project Management Team. He brings a wealth of expertise from his 30-years
in industrial, commercial, medical, and hospitality sectors where he led areas including tendering, resource
management, conflict resolution, budget management and engineering..​

Eng. Sayed Elgharbawi: Eng. Elgharbawi is the project’s corporate affairs specialist. He has held senior position at
several large Egyptian institutions including Chairman of Xceed, Vice President of Telecom Egypt and Motorola
Country Manager. He has played key roles in project delivery and transformation during his 30+ years career.​

Hesham Raafat: Mr. Rafaat is the project’s lead product’s specialist, project consultant and coordinator with EPC,
Process Technology provider and PMC. He has a successful track record of over 30 years in the industry holding key
managerial and executive roles with industry giants such as Dow Chemical on several continents. Mr. Rafaat boosts
the project with his extensive experience as well as key knowledge in the petrochemical industry,

13
DEAL TEAM

Owner Investment Team

Mohamed Soukar: 25 years experience in PPP Oil & Gas downstream ventures with an excess of $1.2 Billion of FDI. CEO
of OCTAGON Dynamics and a Shareholder in SHARD Capital Advisors since 2016. His career began with a project to
cultivate 4,000 hectares of land with wheat in Uganda using Egyptian cultivation technology. An investment driven
mindset and capitalistic up-bringing, he hails from an Egyptian family with a strong entrepreneurial history.

James Lewis: has worked in Capital Markets since leaving the British Army in 1989 at the age of 24. Various roles in
predominately broking firms led him to found Shard Capital Partners LLP in 2011. A second regulated entity was later
formed as required by the AIFM directive providing a home for Alternative Fund management aspirations. Shard Group
now has over USD 1 billion of AUA out of London with offices in Geneva and Cairo and Ireland with nearly 100 personnel

Bill Blain: Mr. Blain is Shard Capital’s head of Capital Markets and lead Investment Banker. His 35-year career includes
senior positions at leading investment banks including Bear Stearns and HSBC. He is a well-known market commentator
with an unmatched range of clients and contacts across banks and institutional investors.

Christos Argyriou: A senior investment professional with 14+ years’ experience in project finance, project management,
private equity, fund raising, corporate development, corporate lending and corporate governance, with a focus on energy
and infrastructure investments. He joined Qalaa Holdings in 2006 and has been directly involved in delivering projects
worth in excess of USD 5bn, including the Egyptian Refining Company (ERC) project delivered in December 2019.​

Konstantinos Tampakakis: Mr. Tampakakis is an insurance professional and risk management expert. He spent more
than a decade underwriting in Lloyd’s of London insurance market after joining the Tokio Marine Kiln syndicate. In 2018,
Mr. Tampakakis co-founded Amphirite Underwriting Limited, based in the City of London, offering tailor-made risk
management and project insurance.​
14
CONTACT DETAILS

For general enquiries, please email [email protected]. For specific enquiries, please use the details below.

• Christos Argyriou – Technical and Financial Queries

- Email: [email protected]
- Office Number: +202 2736 3208
- Mobile Number: +201 0000 63321

• Bill Blain – Investment Queries

- Email: [email protected]
- Mobile recorded line: +44 (0)77 7088 1033

• Hisham Sallam – Dataroom Access and General Queries

- Email: [email protected]
- Office Number: +971 4341 1337
- Mobile Number: +9715 8973 0204

15