THE ROLE OF THE SELL SIDE

Egyptian IR Training, July 2009

STRICTLY PRIVATE AND CONFIDENTIAL

July 2009

English_General

This presentation was prepared exclusively for the benefit and internal use of the J.P. Morgan client to whom it is directly addressed and delivered (including
such clients subsidiaries, the Company) in order to assist the Company in evaluating, on a preliminary basis, the feasibility of a possible transaction or
transactions and does not carry any right of publication or disclosure, in whole or in part, to any other party. This presentation is for discussion purposes only
and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by J.P. Morgan. Neither this presentation nor
any of its contents may be disclosed or used for any other purpose without the prior written consent of J.P. Morgan.
The information in this presentation is based upon any management forecasts supplied to us and reflects prevailing conditions and our views as of this date, all
of which are accordingly subject to change. J.P. Morgans opinions and estimates constitute J.P. Morgans judgment and should be regarded as indicative,
preliminary and for illustrative purposes only. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy
and completeness of all information available from public sources or which was provided to us by or on behalf of the Company or which was otherwise reviewed
by us. In addition, our analyses are not and do not purport to be appraisals of the assets, stock, or business of the Company or any other entity. J.P. Morgan
makes no representations as to the actual value which may be received in connection with a transaction nor the legal, tax or accounting effects of
consummating a transaction. Unless expressly contemplated hereby, the information in this presentation does not take into account the effects of a possible
transaction or transactions involving an actual or potential change of control, which may have significant valuation and other effects.
Notwithstanding anything herein to the contrary, the Company and each of its employees, representatives or other agents may disclose to any and all persons,
without limitation of any kind, the U.S. federal and state income tax treatment and the U.S. federal and state income tax structure of the transactions
contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to the Company relating to such tax treatment and
tax structure insofar as such treatment and/or structure relates to a U.S. federal or state income tax strategy provided to the Company by J.P. Morgan.

THE ROLE OF THE SELL SIDE

J.P. Morgans policies prohibit employees from offering, directly or indirectly, a favorable research rating or specific price target, or offering to change a rating or
price target, to a subject company as consideration or inducement for the receipt of business or for compensation. J.P. Morgan also prohibits its research
analysts from being compensated for involvement in investment banking transactions except to the extent that such participation is intended to benefit investors.
IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters
included herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing
or recommendation by anyone not affiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S.
tax-related penalties.
J.P. Morgan is a marketing name for investment banking businesses of JPMorgan Chase & Co. and its subsidiaries worldwide. Securities, syndicated loan
arranging, financial advisory and other investment banking activities are performed by a combination of J.P. Morgan Securities Inc., J.P. Morgan plc,
J.P. Morgan Securities Ltd. and the appropriately licensed subsidiaries of JPMorgan Chase & Co. in Asia-Pacific, and lending, derivatives and other commercial
banking activities are performed by JPMorgan Chase Bank, N.A. J.P. Morgan deal team members may be employees of any of the foregoing entities.

This presentation does not constitute a commitment by any J.P. Morgan entity to underwrite, subscribe for or place any securities or to extend or arrange credit
or to provide any other services.

EGYPTIAN IR TRAINING

The flow of capital and information

Listed Company / IPO Candidate

Flow
of

The Sell-Side / Investment Bank

capital
Investment Bank

Research, Sales, Trading

Client executive

Buy-Side

Research
Flow of
information

Corporate
broking
Sector advice

CIO

Generalist sales

PM

Specialist sales

Analyst

Sales trading

Trader

Syndicate

THE ROLE OF THE SELL SIDE

ECM

Chinese Wall

Country advice

DCM

Trading

Leveraged Finance

Derivatives

Ratings Advisory

Stock borrow / loan

EGYPTIAN IR TRAINING

The role of the Sell-Side

The Client Executive is the key

company relationship manager

Senior management dialogue at a

strategic level (Chairman, CEO,

CFO, Head of Strategy)
Deep understanding of the industry,

the region & the key players

Understand & formulate strategy

and aid its implementation

Acquisition / divestiture

opportunities / balance sheet

restructuring
Supports strategy formulation with

THE ROLE OF THE SELL SIDE

financing opportunities
Plug in all other IB products as

appropriate

Finance

Research, Sales & Trading

Financing presented at appropriate

moment by the Client Executive

Bank

Credit agreements

Strict and well regulated Chinese

Equity Capital Markets - IPO,

walls

rights issue, follow-on, ABB,

convertibles, exchangables,
mandatories
Debt Capital Markets
Leveraged Finance
Financing teams also have stand

alone dialogue - often with CEO,

CFO or Head of IR
Operate as a team or alone
Considerations include - feasibility,

size, speed, cost, tenure, message,

WACC
Target minimised WACC or exploit

market opportunities

EGYPTIAN IR TRAINING

Independent from the Investment

Key functions are Advice and

Execution

Chinese Wall

Advisory

Advise comprises Research and

Sales - price targets &

recommendations communicated to
clients
Execution comprises Sales Trading

and Trading - provision of best

execution (time & price)
Growing electronic platforms

Program Trading, DMA &

Algorithms

Working with the sell side - Research & Sales

Research & Sales understanding the P&L
Cash Equity trading is based on attracting trades from investors - higher volume = higher commissions
A growing second revenue stream is from 'unbundling' where advice is paid for by cheque - 'better' research = higher

revenue
Research, Sales & Trading to some degree are compensated relative to these two revenue streams

Research & Sales looking for timely and clean communication

Research & Sales are exceptionally busy and under pressure from investor clients, especially in results season
Analysts and sales people want:
Transparent, clean, consistent, easy to understand, concise press releases, financial statements and results

presentations
Timely, concise and clear articulation from IR and Management around results calls or company events
Guaranteed and timely access to IR and quick detailed answers
Providing these elements generates good-will and more 'air-time'; not doing so generates bad-will and reduced coverage

THE ROLE OF THE SELL SIDE

Research & Sales looking for direct access to Management and Non Deal Roadshows (NDRs)
Moreover, Research & Sales want direct access to Management and IR for their investor clients
Access is granted through Conferences, Conference Calls, NDRs, Investor Trips and less so through Sales Force Teach-ins
This access is valuable as investors pay for access - it can also improve the quality and the perception of the quality of the

research coverage
NDRs in particular with management are highly valued by the sell side

EGYPTIAN IR TRAINING

The Sell Side cleaning & amplifying the message

Using the sell side effectively will increase volumes, decrease volatility, decrease cost of equity, increase conviction and size

of positions
Situation A

Situation B
Company

Company
Company Information

Company
Information

Q&A

Company
Information

Q&A

Local Brokers

Global Brokers

Adjusted, cleaned, normalised

information

THE ROLE OF THE SELL SIDE

Ratings, Recommendations,
Target Price

Investors

Investors

Low awareness

Increased awareness breadth and depth

Low volumes

Higher volumes virtuous cycle of coverage

Low conviction

Higher volumes, lower volatility

Marginalised

EGYPTIAN IR TRAINING

J.P. Morgans Equity distribution platform a global reach

Global research platform and sales platform

North
America
1,442

Equities covered

Asian
sales force:
124

CEEMEA
584
CEEMEA sales force:
104
US sales force:
223

Japan
261
Asia-ex Japan
855

3,541
887
201
673
256
469
469
277
163
146

Coverage by market cap.

Micro cap.
12%

Latin America
149

Small cap.
27%

No. of companies covered

No. of sales people

Total coverage
Consumer
Energy
Financials
Healthcare
Industrials
Information Tech
Materials
Telecom Services
Utilities

Large cap.
31%

Australia
180

S. Africa
70

Mid cap.
30%

Our distribution business keeps us in the flow of information

THE ROLE OF THE SELL SIDE

J.P. Morgan is one of the leading Equities trading businesses

We have over 450 sales people covering 90% of total global assets under management

We maintain Top 3 relationships with a large number of major institutions across the investment style and market cap spectrum
We are talking with the investors that matter on a daily basis and are fully in the flow of information

Our size and breadth ensures excellent access to investors and information
EGYPTIAN IR TRAINING

J.P. Morgans non-deal roadshow experience

In 2007 2009 J.P. Morgan executed over 1200 days of roadshows for more than 300 EMEA corporates
Emerging Markets - Selected Non-deal Roadshows in 2007 - 2009

Sberbank

Turk Telekom

Rosneft

Garanti

Gold Fields

Efes

Lewis Group

Gazprombank

Roadshow:
UK

Roadshow:
US

Roadshow:
US
Europe

Roadshow:
UK
US

Roadshow:
US
Canada

Roadshow:
UK
Europe

Roadshow:
US

Roadshow:
US

THE ROLE OF THE SELL SIDE

Emerging Markets - Selected Non-deal Roadshows in 2007 - 2009

Dana Gas

ADCB

Akbank

Halkbank

Aldar
Properties

Bank
Asya

SABMiller

Yapi Kredi

Roadshow:
Middle East

Roadshow:
UK

Roadshow:
US

Roadshow:
UK

Roadshow:
UK

Roadshow:
US
UK
Canada

Roadshow:
US
UK
South Africa

Roadshow:
Turkey

Other Corporates - Selected Non-deal Roadshows in 2007 - 2009

LUKOIL

E.ON

Danone

Iberdrola

AB InBev

Nokia

Volvo

Lafarge

Nestle

Novartis

Roadshow:
Europe
US
Canada

Roadshow:
US
UK

Roadshow:
US
UK
France

Roadshow:
US
UK

Roadshow:
US
UK
Belgium

Roadshow:
US
UK
Germany

Roadshow:
US

Roadshow:
US
UK

Roadshow:
US

Roadshow:
Italy
France

EGYPTIAN IR TRAINING