Investment case A robust business model, which provides both EPC as well as energy solutions.

1. El Sewedy Electric – SWDY SWDY.CA/SWDY EY | Hold Recommendation | Moderate Risk | LTFV EGP56.8 | Target Price EGP45.4 | Analyst: Muhammad El Ebrashi Investment case • A robust business model, which provides both EPC as well as energy solutions. • SWDY’s segmental nature provides a logistical advantage and will enable the company to leverage on its extensive footprint in the MEA region. • SWDY’s management aims to reduce GCC competition risk for the wire and cable LoB via expansion into African countries i.e. Ethiopia. • Turnkey’s segmental revenue growth to benefit from MENA governments’ heavy investment in infrastructure. • Upside Catalysts • SWDY has a cost advantage over other regional cable producers. This is because SWDY production facilities are located in countries that have cheap labor, energy, and S G&A costs. • Continuing with the M&A activities, we expect that SWDY might further benefit from increasing its market share as well as more distribution channels. • Should MENA’s governments’ tax shelters increase (as suggested by the Qatari government) the construction LoB’s earnings should improve. Downside Risks • The GCC area could experience an overcapacity in 2011. Such net additions might increase competition which, in turn, could negatively impact SWDY, decreasing it’s absolute gross profit per ton. • SWDY operates in emerging markets of MENA region, which expose it to riskier business environments. • Shareholder Structure • El Sewedy Family 73% • Hassan A Salam 2% • Free Float 25% • 52-Week Performance & Share Data(*EGX suspended 27th Jan – 23rd Mar 2011) Key Performance Indicators Company Profile El Sewedy Electric is a integrated cables and electrical products manufacturer in the Middle East, with the specialty in providing complete and integrated energy Solutions in sectors as diverse as: telecom, energy management, transformers, EPC, electrical products and wind energy generation.