Sagasse Investment Company

1. Company Overview & Earnings Context

Sagasse Investment Company PLC is an ADX-listed investment holding company based in Abu Dhabi Global Market. The company was listed on ADX on 28 August 2025. Its subsidiary, Electra Investment Holding, holds equity and non-equity assets, while Sagasse's principal underlying investment is an 18.87% stake in Egypt-listed Elsewedy Electric Company.

Sagasse reported higher H1 2026 profit, with profit for the period increasing to USD 28.83 million from USD 25.70 million, representing growth of approximately 12.2% YoY. However, significant foreign currency translation losses resulted in a total comprehensive loss for the period.

2. Financial Performance Snapshot

• Interest & Other Income: USD 1.87 Million, vs. USD 20K

• Share of Associate's Net Results: USD 33.58 Million (-2.2% YoY)

• General & Administrative Expenses: USD 6.62 Million, vs. USD 0.30 million

• Profit for the Period: USD 28.83 Million (+12.2% YoY)

• Other Comprehensive Loss: USD 30.25 Million, vs. USD 9.48 million income

• Total Comprehensive Loss: USD 1.42 Million, vs. USD 35.18 million income

• EPS: USD 0.07, unchanged YoY

The increase in reported profit was helped by the absence of the USD 8.34 million loss on partial disposal of an associate recorded in H1 2025.

3. Elsewedy Electric Investment & Earnings Contribution

Sagasse's financial performance is heavily linked to its 18.87% ownership in Elsewedy Electric, an Egyptian company operating across power cables, electricity poles, towers, transformers and related electrical infrastructure.

Sagasse recognised USD 33.58 million as its share of Elsewedy Electric's profit during H1 2026, compared with USD 34.32 million in H1 2025.

The carrying value of the investment stood at USD 793.51 million at the end of June, compared with USD 804.60 million at the end of 2025. Sagasse also received USD 14.41 million in dividends from the associate during H1.

4. Key Performance Drivers

Although Sagasse's share of associate earnings declined slightly, overall profit increased because H1 2025 included an USD 8.34 million loss on the partial disposal of the associate, which did not recur in H1 2026.

At the same time, general and administrative expenses jumped to USD 6.62 million from USD 0.30 million. The biggest contributor was a USD 5.56 million foreign exchange loss, alongside higher professional, legal and other expenses.

Foreign exchange movements also had a major impact outside reported profit. Sagasse recorded a USD 26.33 million negative foreign currency translation adjustment, which contributed to the USD 30.25 million other comprehensive loss and pushed total comprehensive income into a USD 1.42 million loss.

5. Balance Sheet, Cash Flow & Capital Position

Sagasse ended June 2026 with:

• Total Assets: USD 808.07 Million

• Total Equity: USD 804.96 Million

• Total Liabilities: USD 3.11 Million

• Investment in Associate: USD 793.51 Million

• Cash & Cash Equivalents: USD 14.56 Million

• Retained Earnings: USD 87.47 Million

The balance sheet is therefore almost entirely equity funded, with liabilities representing less than 1% of total assets.

Cash declined substantially from USD 66.89 million at the end of 2025 to USD 14.56 million. The main factor was the USD 62.30 million repayment of additional capital contribution during H1. The Group generated USD 16.37 million from investing activities, including USD 14.41 million of dividends received from its associate, while operating activities used USD 6.41 million of cash.

6. Investor Takeaway

Sagasse's H1 2026 results show higher reported profit but considerable exposure to Elsewedy Electric and currency movements. Profit increased 12.2% to USD 28.83 million, despite the Group's share of associate earnings declining slightly.

The key point is that Sagasse operates primarily as an investment company rather than a conventional operating business. Management reports only one operating segment, and the USD 793.5 million Elsewedy Electric investment represents approximately 98% of Sagasse's total assets.

Therefore, Sagasse's future financial performance will be closely tied to Elsewedy Electric's profitability and dividends, Egyptian currency movements and the valuation of its investment.

The auditor issued an unmodified review conclusion, stating that nothing had come to its attention indicating that the H1 financial information was not prepared, in all material respects, in accordance with IAS 34.

Key areas to monitor in H2 2026 are Elsewedy Electric's earnings, foreign exchange movements, dividend income, cash levels and the value of Sagasse's investment in its associate.