Cotton Trading Overview

Modern Nile is ACGC's cotton trading arm, giving it a strong presence in the market

Modern Nile

Established in 1994, Modern Nile is the largest cotton trading company in Egypt accounting for 25% of Egyptian cotton exports and 25% of the highly fragmented import market It maintained its standing in the market despite total exports declining from EGP 589 million in 2012/2013 to EGP 314 million in 2013/2014 and managed to honor its commitments ending the year with a positive balance Modern Nile has a strong international presence, with trade partners in the United States, South America, Africa, Europe and Asia It has a solid presence in China, one of the largest textiles markets, and is registered with the AQSIQ/CIQ Modern Nile has experienced and qualified management. Its CEO is on the board of the International Cotton Association which regulates over 95% of the world's cotton trade Modern Nile is involved in research and product development and is working on the organic cotton cultivation It also has a good relationship with customers who receive semi-annual visits from senior management members

Cotton Trading Market and Group's Strategy

Effect of Economic Crisis The Group's Unique Position The Economic Crisis led to cotton prices falling dramatically As a result, cotton farmers reduced production thus causing lower volumes of cotton trade Egypt's exports declined, this season, dramatically by 81% Globally 8 of the world's 22 largest merchants declared bankruptcy due to low cotton prices and yarn production However, Modern Nile managed to maintain its standing and honor its commitments Market leader Solid credit standing and market credibility Competent management with over 20 years of experience Strong track record of performing all contracts Only cotton trader with ginning facilities through ACGC Only cotton trader with R&D, providing clients with top quality products Located in Egypt in close proximity to Europe, thus reducing lead time in trade Strong relations with top textiles markets globally Good footing in China Strong relationship with clients

Company Strategy Maintain Number One standing in the Cotton Trading business in Egypt. Position company to capture profits of a rebounding market. Maintain strong credit standing and financial credibility in the market. Maintain strong relations with trade partners and clients.