fortune favors the bold · 2018. 8. 20. · egypt, bringing us one step closer to dominating the...

Raya Annual Report 2014 | CORPORATE OVERVIEW 1

FORTUNE FAVORSTHE BOLD

ANNUAL REPORT 2014

In the course of the last 15 years, we at Raya have dreamed big and achieved more. Following the advice of an ancient Latin proverb once

favored by Julius Caesar, “Fortuna Audaces luvat” (“fortune favors the bold”), we realized the importance of taking calculated risks while collaborating as a team to excel. At moments when no one dared to step closer, we straightened our backs and took a leap of faith, seizing

opportunities and subsequently reaching milestones that were once thought unattainable. Since we understood that risk-taking was a

critical component of achievement, every failure was also a success. This philosophy enabled us to dare, to conquer markets and to expand our presence and in order to fly and become more sustainable. We see our

destination clearly, but our means of reaching it have remained flexible, for we believed that to define is to limit. In a decade and a half as a company, we have dared to trespass our boundaries and surpassed all our goals.

The possibilities for the next 15 years are infinite.

EXECUTIVE SUMMARY

COPORATE GOVERNANCE

CORPORATE OVERVIEW

FINANCIAL REVIEW

BUSINESS REVIEW

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Bold Enough To Fly


The secret of every successful, century-old company lies in its corporate values. These fundamental pillars of doing business begin with senior executives and managers and trickle all the way down through the corporate structure to entry-level associates and interns. This shared set of core values, rooted in daily habits, promotes a sense of enduring trust that enables these businesses to survive the lean times as well as well as the days of plenty.

Our vision for Raya is no different. Through an ongoing process of evolution, we have become a strong and unique organization committed to market leadership in the businesses in which we operate and invest. Over the last decade, our focus was on nourishing the unique seeds we first planted more than 15 years ago, which would ultimately blossom into a fruitful corporate culture that enabled us to expand, diversify and spread beyond the borders of Egypt. As every firm is defined by its culture, our corporate identity is built on a sacred quadrant of respect, customer focus, teamwork and excellence - four corporate pillars that have shaped our operations and marked every day of our success. We are building and fostering a corporation that will survive and thrive for many coming generations.

In the past year, our value-based operations and employees have achieved remarkable milestones in almost all our lines of business. Raya Smart Buildings’ recently-opened Galleria40 - the first commercial/retail development in Egypt with gold pre-certification from the Leadership in Energy and Environmental Design

(LEED) from the U.S. Green Building Council (USGBC) - has attracted even more prominent international brands and a wider customer base. Galleria40 is also home to our new restaurant chains. In just six months, Ovio and Cachimba have managed to put down strong roots in the food and beverage industry, taking us a step closer to realizing our plan to turn them into local and international franchises.

Working successfully toward its global vision, Raya Contact Center has successfully launched three new facilities in Hurghada, Dubai and Poland, adding 1,730 call center seats for a total capacity of 4,750 seats across eight sites. In another inspiring quantum leap, Raya Trade has won the sole distribution rights for Microsoft Lumia and Nokia phones in Egypt, bringing us one step closer to dominating the consumer electronics market.

For most of our rivals, the last few years have been some of the toughest in recent memory. For us at Raya, however, the challenging economic climate has been a blessing in disguise, consistently raising the bar and motivating us to work harder to stay ahead of the pack. We now count more than 6,500 proud employees, 10 booming and sustainable lines of business and a diverse customer base that spans multiple continents.

Fostering Raya Corporation...Strong Focus on Basic Business Virtues and Values

Medhat KhalilChairman & CEO

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Our strong focus on a basic business creed of quality and cooperation will sustain Raya through demanding challenges for many generations to come.

2014

2013

REVENUE BREAKDOWN

0.41%

74.12%11.74%

5.96%

2.4%1.63%0.87%2.88%

0.42%

0.08%

72.46%

11.46%

5.86%

4.06%

1.93%1.49%

2.24%

TradeITContact CenterSmart BuildingsInternational ServicesOstoolData CenterBariQRestaurants

* The revenue breakdown is adjusted to intercompany balancesFIN

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4,069

503.2

205.7

47.7

20.67% 15.10%21.92% 14.92%

REVENUE

REVENUE

EBITDA

EBITDA

GROSS PROFIT

GROSS PROFIT

NET INCOME

NET INCOME

Million

Million

Million

Million

EGP

EGP

EGP

EGP

4,069.3

503.2

205.7

2014

2014

2014

2014

2013

2013

2013

2013

2012

2012

2012

2012

2011

2011

2011

2011

47.7

2,967.6

334.9

147.6

50.6

3,372.3

412.7

178.7

56.1

2,646

334.6

152.4

35.8

* All Values are in Million EGP

KEY FINANCIAL HIGHLIGHTS

07RAYA ANNUAL REPORT 2014 | EXECUTIVE SUMMARY


Egyptians

Free Float

Al Tawil Family

Foreigners

Medhat Khalil & Family

Others

Retail

Arab & Africans

FINANCIAL HOLDINGSINTERNAIONAL LTD

Institutions & Funds

SHAREHOLDING STRUCTURE

SHAREHOLDERS’ BREAKDOWN

21.68%

6.12%

5.45%

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4%

29%

67%

56%

44%

12.05%

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Cash Dividends

Stock Dividends

COUPON INFORMATIONCAPITAL STRUCTURE

Authorized Capital

EGP 1,000,000,000

Issued & Paid-in Capital

EGP 420,520,695

Share Par Value

EGP 5

Outstanding Shares

84,104,139

TradingRaya Holding is traded on the Egyptian Stock Exchange (EGX) under the symbol

RIC: RAYA.CA

Market Capitalization

EGP 471,000,000(as of December 31st, 2014)

17/04/200715/08/2007

29/03/2010

20/12/2011

07/05/2013

29/03/2009

11/09/2012

16/12/2007

21/04/2010

19/12/2011

08/10/2013

0.40 EGP

0.75 EGP

0.25 EGP

0.20 EGP

0.25 EGP

0.21 EGP

0.20 EGP

0.48 EGP

1:11

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1:6.5


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Bold EnoughTo Take A Risk

13RAYA ANNUAL REPORT 2014 | CORPORATE OVERVIEW

23.44% 28.87%

3.39%20%

RAYA HOLDING INVESTMENTS

RAYA Offices

RAYA Coverage

Over

Investment To Date Million EGP

Continents Customers Over

Lines Of Business

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Employees

Offices, Sites, Outlets & Centers150

176,50010


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E RAYA Achievers travel to Rome, Italy

GALLERIA40 launches its soft opening

JULY

RAYA RESTAURANTS inaugurates Cachimba & Ovio

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RAYA TRADE becomes Microsoft’s sole distributor for mobile phones

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CONTACT CENTER launches its Poland call center site

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RAYA TRADE launches its Raya Megastore in Faisal, Giza

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RAYA SMART BUILDINGS develops Egypt’s first LEED Gold Certified Green Office Complex in New Cairo

RAYA TRADE launches its Raya Megastore in Loran, AlexandriaM

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commits to the Egyptian Junior Business Association Integrity Pledge

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H RAYA HOLDING'S annual Kick Off Meeting takes place in Bait El Wadi


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REALIGNING RESOURCESRecognizing the need to maximize operational efficiency, three CEOs were appointed to lead Raya’s three lines of business, taking the group’s operations to higher levels of operation effectiveness. local players.

EXPANSIONExpanding Raya Group’s portfolio, Raya ventured into new markets of smart buildings’ development, leveraging on its strong IT expertise in smart buildings.

PORTFOLIO DIVERSIFICATIONWith a strong commitment to a portfolio diversification strategy, Raya Group launched two new subsidiaries, penetrating markets that add to Raya’s diversified portfolio. By 2010 & 2011, BariQ and Ostool were Raya’s newest subsidiaries.

DEVELOPING MARKET RESILIENCEDespite the post-revolution deeply damaged economy, along with unstable political conditions, Raya Group managed to solidify strategies and explore new realms of business, following with its vigorous expansion plan.

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MERGER7 national IT companies decide to merge, establishing Raya Holding to cater to a gap between multinational market players and local companies

DIVERSIFICATIONThe company’s initial strategy was to diversify into more IT and IT-related activities, acquiring 3 subsidiaries and founding 7 others.

STREAMLININGRaya’s operations entailed merging smaller companies with similar operations. Raya Holding launched three lines of business: Information Technology, Telecom and Retail & Distribution.

GOING INTERNATIONALExpanding into the international sphere, Raya started seizing opportunities in different countries, establishing Raya Gulf, Raya Saudi, Raya USA and Raya Algeria.

GOING PUBLICIn May 2005, an IPO worth 400 million Egyptian pounds was launched to list Raya Holding shares in the Egyptian Stock Exchange.


RESPECT FOR PEOPLETEAMWORK

Excellence in every aspect of our lines of business is our means to maintain our position as “a market leader no matter where we are”. Raya encourages excellence by rewarding skill and performance. With an unyielding desire to triumph and unbending will to succeed, Raya has unlimited potential to improve the quality of all the services that it currently has to offer. The company benchmarks itself according to international quality standards.

Respect for people is a deeply entrenched value in our culture. Our people are devoted employees, trusting shareholders and essentially each and every customer. Respect for people is the value that we consider day by day and upon which we build all connections and relations in or outside the company.

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ESDespite our high levels of adaptability and ability to change, we have kept our values fixed and untouched. The opportunities we consistently seize and the new markets we aggressively penetrate, have only been lit through with the aid of our beliefs. The four values upon which we base all operations have been the foundation that holds our head up high and strong against some of the toughest prevailing economic winds. Through them, we shall continue to follow our dreams and realize a stone-carved legacy to thrive and last.

Raya realizes the significance of teamwork on many levels. The company is continually promoting the concept, by seeking to bring together personnel with a diversity of backgrounds, skill levels and varied areas of expertise. We believe that working in teams guarantees fresh perspectives and provides more efficient outcome and more comprehensive delivery of results.

Raya is committed to offer its customers an exceptional experience and unparalleled quality of service. Every task, from the sales pitch to the after-sales support, is customized to suit customer needs. It is customer focus that is consistently guiding us to higher levels of achievements and success.

CUSTOMER FOCUS


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accordance to the essential foundation of Raya’s corporate governance guidelines, committed to comply with the mandates of the Capital Markets Authority (‘CMA’) in Egypt.

The Corporate Governance Committee periodically reviews the guidelines and proposes modifications to the Board for consideration as appropriate. Board meetings are held at the company headquarters upon the call of the Board Chair or the demand of one third of the board members. Under no circumstances should there be less than one meeting every quarter.

Following the end of each fiscal year, the Board conducts an annual performance evaluation to assess the Board’s performance effectiveness overseen by the Corporate Governance Committee. The Nomination and Governance Committee is responsible for establishing evaluation criteria and implementing the process for such evaluation, as well as considering

other corporate governance principles subject to consideration by the board.

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Subject to the disclosure and listing rules set by the Egyptian Stock Exchange (EGX) and approved by the Egyptian Capital Market Authority (CMA) under license number 273 dated 16/06/1999, Raya Holding complies with the code of best practices in corporate governance, financial reporting, disclosure regulations and listing rules.

With a strong commitment to abide by the highest standards of corporate governance, the board of directors (the “Board”) attributes strong emphasis to identifying and implementing appropriate corporate governance practices to ensure transparency, accountability and effective internal controls. Raya’s board of directors routinely meets at least four times annually to align and discuss the group’s business performance and strategy. The

board reserves the right to discuss major strategic and financial decisions related to new investments, divestment decisions, approval of significant alliances, major capital investment transactions and the compensation of the executive management of the company.

Under Raya’s Articles of Association, all directors of the board are required to run for re-election every three years. With a board performance evaluation, the elected board of directors’ biographical background and their expertise are disclosed in the explanatory notes of the notice during the annual general meeting.

With firm creed in sound corporate governance practices, Raya’s board of directors fulfills its responsibilities in

INTRODUCTION

23RAYA ANNUAL REPORT 2014 | COPORATE GOVERNANCE

CORPORATE GOVERNANCEMembers: Malek Sultan, Ahmed Khalil, Reem Asaad

The Committee shall:• Develop for the board’s approval and annually review the

company’s corporate governance code.

• Consider possible conflicts of interests of directors and any related party transactions of directors and make relevant proposals to the board in accordance with the company’s corporate governance code.

• Review any change in status (including fulfillment of independence requirements) and professional affiliation of current directors and make relevant proposals to the board in accordance with the company’s corporate governance code.

• Oversee the development and implementation of a board induction process for new directors and a program of continuing director development as needed.

• Develop a process for evaluating board effectiveness and co-ordinate the annual board effectiveness evaluation.

• Review corporate governance policies and practices in major subsidiaries and make relevant proposals to the board.

• Monitor trends and the best practices in corporate governance and nomination practices in order to properly discharge its duties.

• Perform any other activities relevant to this charter, at the request of the board or as required by the company’s corporate governance code.

NOMINATIONThe Committee shall:• Prepare the criteria and procedure for selecting board members

and by which the board makes nominations for members.

• Assess - at least once a year - the size and composition of the board.

• Assess - at least once a year - the performance of individual board members and report their findings to the board.

• Make proposals for the re-election or termination of board members and, if required, the appointment of replacement members.

• Report to the board on the advisability of permitting a member of the board to become a member of another company’s board and develop a policy on whether and how to cap the number of directorships a director may hold; and

• Report to the board any conflicts of interest that may arise if a member of the board accepts a position on another company’s board.

Chaired byYasser Hashem

Purpose• The purpose of the committee

is to assist the board in ensuring that its composition, structure, policies and processes meet all relevant legal and regulatory requirements.

• To strive to achieve global corporate governance best practices standards and to facilitate the board and management’s objective of increasing the long-term value of the company recommending qualified directors and committee nominees to the board.

• To review HR policies.

• To identify any additional skills and experiences that might be required to enhance the performance of the board, to interview candidates and to recommend appointments to or removals from the board.

• To review the performance of any director seeking re-election at the forthcoming annual general meeting.

• To ensure/monitor the implementation of the Corporate Governance Code and that all items are covered under all committees.

AuthorityIn order to fulfill its purpose, the committee shall have the following authorities and responsibilities:

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Relations with Shareholders The company maintains regular contact with shareholders, institutional investors, the financial community and the media through a structured investor relations program including regular formal announcements and publications relating to material events and financial results, a bi-annual institutional investors’ event as well as meetings with the chairman, chief executive officers and the chief financial officer.

Private shareholders are also encouraged to attend the annual general meeting and to express their views and questions prior to the meeting, which is reported to the Board and responded to in the Chairman’s address.

Going ConcernAfter making inquiries, the directors consider that the company has adequate resources to continue operating for the foreseeable future. For this reason the going concern basis has been adopted in program the accounts.

THE REMUNERATION COMMITTEEMembers : Amr El Tawil, Yasser Hashem

Authority• To establish the company policy on remuneration for the

executive directors, executive management, chairman, and CEOs of the different lines of business.

• To make recommendations to the board on the Group’s framework of executive remuneration and its cost.

• To approve for the members of the Executive Leadership Team or other senior executives, as it considers, the entire individual recruitment terms, remuneration benefits, employment conditions, pension rights, compensation payments and severance terms, individual bonus plans and targets and the subsequent achievement of performance against targets.

• To approve the remuneration of the chairman.

• To propose for the approval of the Board and for recommendations by the Board to shareholders all new long-term incentive schemes.

• To approve the rules and associated guideline for granting awards under the Company’s long-term incentive plans.

Chaired byAshraf Sabry

THE AUDIT COMMITTEEMembers: Yasser Hashem, Ashraf Sabry, Malek Sultan, Ahmed Khalil

PurposeTo assist the Board of Directors in fulfilling its oversight responsibilities for the financial and operational reporting processes, risk management, the system of internal control, the audit process, and Raya’s process for monitoring compliance with laws and regulations and the code of control.

Authority

The audit committee has authority to conduct or authorize investigations into any matters within its scope of responsibility. It is empowered:

• To recommend the appointment and compensation of the external auditor/s to be employed by Raya to the Board of Directors and to the General Assembly.

• To oversee the work of any external auditor/s employed by Raya.

• To approve the appointment, compensation, removal, or replacement of the Chief Audit Executive.

• To oversee the operations of the Internal Audit Department

• To resolve any disagreements between management and the auditor regarding financial reporting.

• To pre-approve all audit and non-audit services.

• To retain independent counsel, accountants, or others to advise the committee or assist in the conduct of an investigation.

• To seek any information it requires from employees- all of whom are directed to cooperate with the committee’s requests- or external parties.

• To meet with company officers, external auditors, or outside counsel as necessary.

THE INVESTMENT COMMITTEEMembers: Medhat Khalil, Ashraf Sabry, Malek Sultan, Amr El Tawil

Authority• To set the overall investment guidelines in line with the Board’s strategy.

• To prepare investment cases and report to the Board recommendations of investment opportunities/ activities and time horizon for the Board’s approval.

• To review and monitor investments (post investments audits).

• To set the due-diligence criteria.

• To review investment performance with appropriate indexes and preset KPLs/IPS with the Board.

Chaired bySeif Coutry


Rania SolimanBusiness Development Director – Sky Investments

Ahmed Khalil CEO – Raya Venture Investments & Raya Smart Buildings

Ashraf SabryCEO – Fawry

Samer El WaziriCFO – Raya Holding

Mustafa AbdallahPresident – Al Rajhi Holding Investments

Amr El TawilCEO – Triangle Group

Mohamed Moawed President & CEO – Coldwell Banker Egypt & Coldwell Banker Intercontinental Affiliates

Yasser HashemManaging Partner – Zaki Hashem & Partners

Malek Sultan Operations Manager – Watheeqa, Egypt

Seif CoutryChairman – Capital Trust

Ashraf KheireldinCEO – First for Distribution & Trading

Medhat KhalilChairman & CEO – Raya Holding

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Hesham Abdel RassoulCEO - Raya IT

Samer El WaziriCFO - Raya Holding

Hazem Abdel HadyChief HR Officer - Raya Holding

Mohamed WahbyCEO - Raya International Services & Raya Social Media

Bassem MgahedCEO - Raya Trade

Usama ZakiCEO - BariQ

Karim HassanCIO - Raya Holding

Ahmed Khalil CEO – Raya Venture Investments & Raya Smart Buildings

Ahmed ImamCEO - Raya Contact Center

Khaled ShashPresident - Industrial Sector Reem AsaadCEO - Raya Data Center

Tamer BadrawiCEO - OSTOOL

Medhat KhalilChairman & CEO – Raya Holding

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“EL KHAIR” CAMPAIGNIn collaboration with Misr El Kheir Foundation, Raya launched “El Khair” campaign during Ramadan - an initiative that aimed to help unprivileged families in five governorates in Upper Egypt. The campaign managed to donate and distribute a sum of 1000 Ramadan boxes – 200 boxes in each governorate – under the theme “Share Happiness: Feed a Family in Ramadan”. This initiative aimed to contribute to remote areas of Upper Egypt through the entire month of Ramadan.

RAYA’S BLOOD CHAMPIONSRaya’s socially devoted employees, along with “the Triple Effect” team, have demonstrated remarkable contributions to the wellbeing of society, carrying out a blood donation campaign that helped save more than 900 lives, gaining a triumph award on this year’s World Blood Donor Day. Amongst BariQ factory, Abbasia call center, Maadi Park facility and the 6th of October Headquarters, Raya’s Blood Champions –employees- have collected a total of 301 blood bags.

RUN FOR YOUR HEARTAugmenting its contribution to a healthier life and physique, Raya has also launched “Run for your Heart” campaign, joining a growing number of running community across Egypt. Raya’s first run was taken out in cooperation with Cairo Runners in 6th of October city. Not only did the run bring employees and their friends and families together, but also helped raise funds to improve the living conditions and quality of life of Egyptian Youth through Nebny Foundation.

Despite its outstanding achievements and contributions, Raya’s complete plan of commitments to CSR is yet to be realized. With a concentration on sustainable development, along with a special focus on health sector and education, Raya Holding aims to initiate a development that makes a positive change and marks a progressive effect on society. Through unconventional CSR projects, the company aims to build calibers that shall later serve as a strong base for the community. The bigger picture, when realized, shall render Raya as an activist within society, empowering its employees towards social activities participation.

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As a member of the UN Global Compact and with active social involvement, Raya Holding reinforces socially responsible business conduct, contributing to surrounding communities and protecting indispensable values to stakeholders. The commitments taken by Raya are multi-leveled and aim to interact meaningfully and contribute to society, preserve the ecosystem creating a sustainable progressing society, and carry out business to the highest ethical standards. This standard of behavior and performance is sustained in dealings with employees, customers, suppliers, and all other stakeholders.

INTEGRITY IN BUSINESS: TACKLING CORRUPTION CHALLENGES IN EGYPT With solid creed that values and ethics are the first cornerstone of any social development, Raya Holding demonstrated and complied with one of the highest levels of corporate social responsibility. Participating in “Integrity in Business: Tackling Corruption Challenges in Egypt” Conference, Raya has joined the Egyptian Junior Business Association’s (EJB) Integrity Network. The initiative centers on the establishment of an anti-corruption and transparency standard (Integrity Pledge), an essential principle that Raya has long realized throughout its daily operations.



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OVERVIEWHeadquartered in Cairo, Egypt, yet unrepressed to cover operations in all continents, Raya Holding is an auspicious investment conglomerate managing a diversified investment portfolio. As the parent company for ten up-and-coming lines of business, Raya Holding operates in the fields of information technology, data center outsourcing, contact center, smart buildings, consumer electronics, social media development, food and beverage, land transport and PET remanufacturing.

Raya Holding shares are listed in the Egyptian Exchange (EGX) since 2005, while the company empowers 6,500 proficient employees, accommodating to a wide international customer base from offices based in Egypt, Saudi Arabia, UAE, Qatar, Poland and Nigeria.

CORPORATE HIGHLIGHTSRaya Holding introduces Sorenti and Makarony Polskie pasta to the Egyptian food and beverage marketPart of a strategic commitment to seize promising ventures, Raya Holding signed a contract with the Polish Makarony Polskie S.A. to distribute two of the latter’s pasta brands in Egypt. The contract was signed in the presence of the highest officials of both companies and is considered a strategic fulfillment, granting Raya sole distribution rights and allowing Makarony Polskie S.A. to establish presence in the Middle East. Operations are planned to launch during the second quarter of 2015.

Raya Holding organizes a discussion forum for the Egyptian Stock Exchange as a joint effort with the Egyptian Investor Relations Association (EIRA)Raya Holding led the initiative of holding a seminar and discussion forum on behalf of the Egyptian Stock Exchange (EGX) at its headquarters in 6th of October, in cooperation with the Egyptian Investor Relations Association (EIRA). The seminar - held in February 2014 - had the Egyptian Stock Exchange’s new listing and de-listing rules on top of its agenda. This comes in line with EIRA’s strategic vision to raise the public’s consciousness about EGX practices.

Raya Holding organizes its yearly Kick-off Meeting in Bait El WadiAccustomed to yearly ceremonial start-offs, Raya Holding organized its annual Kick-off Meeting that congregated 1,300 Raya employees, celebrating year 2013’s achievements and disclosing year 2014’s strategy and forecasted challenges. Themed “Boost Energy”, the Kick-off Meeting was held in Bait El Wady, an adventurous camping place at the heart of Wadi El Natroun, in March 2014.

Raya celebrates its top achieving employees in Rome, ItalyIn recognition of Raya’s 2013 top performers, Raya Holding held this year’s Raya Achievers’ Club (RAC) trip in Rome, Italy in June 2014. The 5-day-trip included historical excursions in the culture-rich city of Rome including the Vatican and the Coliseum. The RAC program is designed to distinguish Raya’s top performing employees every year in appreciation of their dedication, hard work and excellence during the year.

37RAYA ANNUAL REPORT 2014 | BUSINESS REVIEW

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OVERVIEWWith the philosophy of creating innovative, energy efficient and resource-saving office buildings in the new urban cities of Cairo, Raya Smart Buildings develops elegant smart commercial and office complexes, in partnership with world-renowned architectural and green building technology firms. Capitalizing on its decade-long experience as an information technology and telecom leader, the company blends its exquisite style with state-of-the-art technological and network infrastructure, with vivid real-time illustrations embodied in Raya Offices (New Cairo), Raya Headquarters (6th of October), Raya View (Smart Village), and Galleria40 (Sheikh Zayed). The genius blend rises up to the lifestyle expectations of today’s business professionals. The developments are located in prime locations in the new urban cities of sixth of October and New Cairo.

OPERATIONAL HIGHLIGHTSRaya Smart Buildings launches Galleria40 in summer 2014Galleria40, a multipurpose green commercial complex located in the heart of West Cairo, has been operating since July 2014. Designed to be a model for sustainability and energy efficiency, GALLERIA40 is among the first commercial complexes to comply with international business standards of green building through the LEED® program registration, by U.S. Green Building Council (USGBC). Closely planned and monitored by Johnson Controls as the LEED® certification consultants, the architectural, civil and electromechanical design used every possible measure to efficiently control energy, water, carbon emissions and waste.

GALLERIA40 is a true LUXURY SHOPPING DESTINATION, featuring exclusive boutiques and high end department stores. It offers a diverse collection of fine and casual dining includes numerous critically-acclaimed restaurants that are exclusive to the area in a sophisticated yet relaxed atmosphere.

GALLERIA40 OFFICES, spread over an extensive gross leasable area of up to 20,919 sqm, offer flexible floor plans which could be easily divided into various area sizes, meeting the requirements of tenants' business needs, team size and corporate policies. Ideal for prominent multinational and local businesses in top industries, the office space provides a professional, high-end workplace environment, with integrated capabilities and communication.

GALLERIA40 is a FULLY MANAGED COMPLEX SOLUTIONS. It features a unique infrastructure and a variety of state-of-the-art technologies including, but not limited to redundant infrastructure network, IP telephony, antenna satellite TV system, wireless Internet, public address system, security access control, surveillance system (IP Cameras and Closed Circuit TV), digital signage & video walls, and interactive digital screens.


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OVERVIEW Raya IT is the leading systems integration company in Egypt, providing IT business solutions that increase customers’ day-to-day productivity and operations management. Established in 1998, the company’s services range advanced network infrastructure solutions, IT security services, data centers & low current, enterprise management and Microsoft solutions. Crowned with special focus on made-to-order IT solutions, the company’s services are powered by highly accredited professionals and cater to the telecommunications, financial services, government, oil and gas, general business and the real estate industries. With a number of mega-scale projects delivered for renowned companies, Raya IT is committed to a client-centric paradigm across all sectors served.

OPERATIONAL HIGHLIGHTSRaya IT outlines the future of technology in Africa at ICT WeekOn the African Union’s 50th anniversary, Raya IT engaged in the “African Information and Communication Technology Week” that transpired at the African Union headquarters in Addis Ababa, Ethiopia. Emphasizing its mission to expand its business into African countries, Raya IT’s participation was essential with the company’s Business Development Manager Mohamed Abu Bakr’s appearance on Ethiopian television to discuss Raya IT’s services and future plans in Africa.

Raya Integration receives its ISO 9001:2008 accreditation Committed to quality control, Raya Integration successfully received its ISO 9001:2008 certification subsequent to a lengthy preparation process. Raya Integration’s achievement implements a robust quality management system to guide and govern their operations from top to bottom. The certification crowns the massive effort that Raya Integration staff has exerted the previous year to build the company’s quality management system, redesigning all business processes to meet the ISO 9001:2008 standards and consolidating all business units under the integration and services umbrella.

Etisalat Misr singles out Raya Networks Services for the design, implementation and preparation of its new data center infrastructure Etisalat Misr chose Raya Networks Services (RNS), Raya IT’s network infrastructure arm, to design its data center infrastructure, as well as the latter’s installation and preparation over an area of 1000 sqm and with a capacity of 145 IT racks. The scope of work includes civil works, mechanical system, power system, light current system and data center infrastructure management (DCIM) system that will be delivered on turnkey basis.


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OVERVIEWEstablished in 1997, Raya International Services offers Oracle and SAP technology, catering to the MENA region with offices in Egypt, Saudi Arabia, the United Arab Emirates and Qatar. Raya International Services has strong credentials in the Enterprise Resource Planning (ERP) business, providing the region’s most eminent entities across the government, health, banking and utilities sectors with top-notch business solutions.

OPERATIONAL HIGHLIGHTSRaya International Services successfully launches the first phase of Qatar Foundation’s e-tendering and asset management solutionsMarking yet another success with Qatar Foundation, Raya International Services successfully implemented and launched the first phase of Qatar Foundation’s e-tendering Solution, in an effort to provide solutions that ensure consistent and efficient data availability, and secure data processing, as well as effective data utilization through its asset management solution in partnership with MEEZA, Raya International Services’ strategic partner in Qatar.

Raya International Services successfully implements the first phase of King Abdullah Medical City’s e-Business SuiteAfter being awarded the implementation in August 2013, Raya International Services successfully implemented the first phase of King Abdullah Medical City (KAMC) e-Business Suite in November 2014. The project is considered the company’s milestone in the health care industry, being the largest project for Raya International Services in the Middle East in year 2013.

Similar to the project’s first phase, Raya International Services successfully deployed the first Oracle EBS implementation on (R 12.2.4) across Saudi Arabia in the public sector. The company also deployed the first Oracle Exadata and ExaLogic successful deployment with Oracle EBS latest release in Saudi public sector, as well as deployed a unique integration technique between Oracle EBS and HIS System at KAMC. The entire project’s first phase was efficiently implemented in 9 months, setting an ERP implementation record in the Saudi public sector.

Raya International Services wins Knowledge Economic City’s ERP SolutionRaya International Services was awarded Knowledge Economic City (KEC)’s ERP implementation in September 2014. The solution aims to implement a robust and best of breed ERP solution which will streamline processes, eliminate costly manual steps, significantly reduce costs, and ensure consistent and efficient data availability, and secure data processing and accessibility.

The two-phased project is scheduled to be implemented in 9 months, consisting of Oracle Financial Management, Human Capital Management, Supply Chain Management, Oracle Projects and Business Intelligence.


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OVERVIEWWith the philosophy of “one size doesn’t fit all”, Raya Data Center provides fitted data center solutions ranging from managed hosting, co-location services, security services, cloud computing, disaster recovery, professional services to IT support and outsourcing services. Carrier-neutral, Raya Data Center is the first ISO/ IEC 27001 and ISO 2000 accredited data center provider in Egypt and delivers enterprise-level offerings to business of all sizes and industries, featuring a facility with highest levels of disaster recovery and network environment security for customers’ data protection. The facility is also ISO OHSAS 18001 and ISO 9000 certified, and has been recently crowned with Oracle’s Gold partnership.

OPERATIONAL HIGHLIGHTSRaya Data Center signs an agreement of collaboration with Vodafone for mutual service expansion

As a strategic milestone for expansion, Raya Data Center signed a 5-year agreement of collaboration with Vodafone, enabling resource utilization for both partners in contemplation of maximizing their service expansion efforts. With this partnership sealed, Vodafone and Raya Data Center will promote co-location and connectivity services respectively. The agreement falls under Raya Data Center’s strategic focus on stimulating the co-location market in Egypt.

Raya Data Center successfully receives ISO/IEC 20000 – 1:2011

International Standards Certifications (ISC), a full scope JAS-ANZ accredited certification body, announced Raya Data Center as the first data center service provider in Egypt to be awarded the ISO 20000 certification. The ISO/IEC 20000 – 1:2011 validates Raya Data Center’s industry-level best practice and continuous enhancement of its service quality and support functions for effective delivery of managed services fitted to customer needs.

Raya Data Center launches its third data center facility in New Cairo, Egypt

Situated in New Cairo, Raya Data Center’s new facility was successfully launched to meet a growing customer demand for data center and cloud-based IT services. The new facility’s strategic location offers customers the ability to expand and connect seamlessly to maximize their business operations efficiency.

The new facility is designed as a high resilience data center, fully equipped to protect organizations’ valuable information technology investments with flawless data center requirements including world-class cabling systems, flooring trenches, switching systems, electromechanical systems and data center layout.


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EOVERVIEW Recognized as the market leader of consumer electronics in Egypt since 1998, Raya Trade is a tripod of ventures based on Raya Distribution, Raya Retail and Raya Smart Care, operating in consumer electronics and home appliances. With an extensive network of 8500 dealers across all distributed brands, 88 retail outlets and 45 customer service points, Raya Trade exhibit solid distribution, consumer retail and maintenance operations of a wide range of consumer electronics and white goods. The company provides a wide range of consumer electronics spanning mobile phones and accessories, laptops, cameras, printers, flat panel TVs and white goods, such as refrigerators, cookers, microwaves, blenders, ACs, heaters, vacuum cleaners, and washing machines. Capitalizing on its expansive distribution network, Raya Trade launched its FMCG distribution business unit in 2013 to cater to promising and demanding market in Egypt.

OPERATIONAL HIGHLIGHTSRaya Distribution becomes Microsoft’s sole mobile distributor in EgyptSolidifying its leadership position, Microsoft singled out Raya as its sole Lumia and Nokia mobile phones’ distributor in Egypt under a strategic agreement signed in 2014. The agreement recognizes Raya’s strong distribution network in Egypt’s governorate and entails the distribution of Lumia smart phones, Nokia mobile devices and accessories.

Raya Retail launches 39 mini-franchise stores and reaches 11 Etisalat franchise stores Marking yet wider expansions for Raya Trade’s retail unit, the company launched 39 mini-franchise Etisalat stores in 2014 in pursuance of increasing Etisalat’s market share while solidifying Raya’s leadership position in the Egyptian market. With this strategic milestone sealed, Raya manages Etisalat express stores, as well as 11 Etisalat stores, offering prepaid top-up cards and postpaid and prepaid lines. The stores also offer Raya’s full range of mobile devices, accessories and tablets.

Raya Smart Care launches its after-sales services for Blackberry, Apple and HuaweiAlready servicing a large portfolio of international brands, Raya Smart Care successfully added new distinguished brands to the list of vendors that trust the company with their after-sales services. With three new strategic after-sales service agreements, Raya Smart Care now provides customers with maintenance service for Blackberry devices in Egypt and Nigeria and for Huawei’s product portfolio, as well as launched its first apple after-sales service center in Mohandesin.

Nestle joins Raya Trade’s FMCG distribution unit’s portfolio of brands Celebrating one year of remarkable presence and successful operations, Raya Trade’s FMCG distribution expanded its portfolio to include Nestle, the multinational food and beverage colossal. Building on an expansive network of distributors in Egypt, Raya offers a wider outreach to Nestle’s products, while gaining higher market exposure into the FMCG industry in Egypt.


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ROVERVIEW As the leading multilingual business process outsourcing and contact center service provider in the Middle East, Raya Contact Center operates 8 contact center sites in Cairo, Hurghada, Dubai and Warsaw, with 4,750 seats and 4,500 advisors. Managing 6 million calls, emails, chats and social media feeds on a monthly basis, Raya Contact Center caters to large customer base across Europe, Middle East and Africa in 14 languages.

Offering contact center outsourcing, back-office outsourcing, inside sales channel management and professional services, the company caters to world-class companies over 6 continents with operations well-supported by quality control management system and prime international certifications.

OPERATIONAL HIGHLIGHTSRaya Contact Center launches three new contact center sites in Hurghada, Dubai and PolandFollowing an ambitious expansion plan, Raya Contact Center has launched new contact center delivery sites in the Red Sea’s Cap-ital, Hurghada, the UAE and Middle East's Business Hub, Dubai, and the business and industrial heart of Eastern Europe Warsaw, Poland. The move reinforces Raya Contact Center’s stand ahead of its competitors, and promises even more sites in the near future.

Under the expansion plan, Maadi Park site upgraded its capac-ity to reach 800 seats, while the new site in Hurghada accom-modates up to 600 seats, Dubai center has 150 seats and the contact center site in Poland a capacity of 180 seats.

Former Minister of Communications inaugurates Etisalat Egypt Customer Service Center in partnership with Raya Contact Center at Maadi Contact Centers ParkFormer Minister of Communications and Information Technology Atef Helmy, Raya Holding Chairman and CEO Medhat Khalil and Etisalat Chief Operations Officer Hazem Metwaly inaugurated Etisalat Egypt’s new customer service center enabled by Raya Contact Center at Maadi Contact Centers Park.

Raya Contact Center and Etisalat Egypt have adopted a strate-gic partnership that involves expanding the services provided by the company and raising its market share amongst competitors. The move coincided with the opening of Raya Contact Center’s new facility in the International Maadi Contact Center Park. The Contact Center Park is a new, 75-acre space equipped with the latest call center technology, making Egypt one of the top offshore outsourcing contact center destinations in the region.


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OVERVIEWWith strong positioning as a “one-stop, multiple solution” agency, Raya Social Media offers a full scope of digital marketing services, offering market research, competitive analysis, strategic planning, creative conceptualization and ideation, social media management, digital advertising, search engine optimization, e-mail marketing and digital analysis, as well as technical state-of-the-art web and mobile app development and UX consultation, design and implementation.

With a team of dynamic, innovative and talented professionals, Raya Social Media is committed to providing the market with unique offerings, capitalizing on a promising industry growth. Each team member is professionally trained and certified to provide customers with world-class service level in compliance with global standards dictated by reputable entities such as the Google Partners program, HootSuite University, LinkedIn, Connect Ads & Cantalop.com, all official Raya Social Media Partners & Certifiers.

CORPORATE HIGHLIGHTSRaya Social media expands its customized solutions portfolioRaya Social Media added new unique solutions services’ package to fit its clients’ requirements and objecties. Part of its integrated solutions, Raya Social Media now offers professional online existence through user-friendly and efficient websites, on-the-go custom-designed mobile apps, professional creative and confident social presence across the different social media channels and result-oriented digital advertising.

Raya Social Media’s Portfolio of ClientsWith a commitment to solidifying presence in the digital marketing industry, Raya Social Media expanded its client base during 2014 to include customers from diverse industries such as information technology, finance, healthcare, retail, food and beverage, consultation, media, tourism, education, real estate and recruitment sectors. Respecting the different nature and requirements of each industry, each client is serviced uniquely with an effectively tailored online presence offering.


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Instituted in 2013, Raya Venture Investments is Raya Group’s opportunity spotter, identifying and seizing potential businesses and adding new platforms to its existing operations. Launching Raya Restaurants, Raya Venture Investments spread out its presence to penetrate the food and beverage industry in contemplation of building internationally competitive restaurants to be franchised in the MENA, Europe and the United States. Based on conceptual philosophy, restaurants launched offer impeccable service and quality food products.

OPERATIONAL HIGHLIGHTSRaya Restaurants launches Ovio, its first European restaurant/ café in Galleria40Ovio – the first venue to open up in Galleria40 – is a European restaurant/café that promises to serve premium quality Artisan food for its customers. The restaurant is inspired by rich European heritage, offering a unique selection of fresh bread, delicious pâtisserie and flavorsome dishes that bring in an instant taste of Europe. To guarantee that only finest ingredients are served, Ovio works closely with specialty farmers and gourmet suppliers to trace the sources of raw materials, through which, it maintains an ascending curve of quality and service. Cachimba, Raya's latest Spanish restaurant, opens in Galleria40Bringing an authentic taste of Spain to Cairo, Raya Restaurants launches Cachimba at Galleria40, Sheikh Zayed’s popular social hub. Serving a wide selection of Spanish dishes and tapas, Cachimba represents that long anticipated destination amongst Spanish food lovers, and is growing popular by the day. The restaurant lists some handful dishes on its must-try list, including the Seafood Paella, Rabas, Montaditos and the Apple Tart, while the famous Spanish drink, Sangria, remains Cachimba’s customers’ favorite.


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OVERVIEW arking the production of post-consumer recycled polyethylene terephthalate (PCR PET) pellets on the Egyptian and the regional map, Bariq is the first “bottle-to-bottle” manufacturer in Egypt, Africa and the Middle East region, reprocessing post-consumer bottles into food-grade PET pellets. Bariq’s pellets is proudly approved by the U.S. Food and Drug Administration (FDA), the European Food Safety Authority (EFSA) and the Canadian Health and Safety Authority. Backed by world-class technology providers for the reprocessing market, Bariq provides high-quality pellets to major international bottle and food container producers in Europe and the United States, as well as major fiber producers of 100% recycled materials in Ireland.

OPERATIONAL HIGHLIGHTSBariq expands its sales channels into North AmericaWith already solid customer base in the United States and Europe, Bariq has further fortified its presence in North America by enacting new sales channels, contracted with major US packaging companies. This strategic move will guarantee 40% allocation of the company’s products to export, specifically to the United States.

The Canadian Health and Safety Authority certifies BariqWith a commitment to internationally accredited quality, Bariq thrived and successfully achieved the Canadian Health and Safety Authority certification, backed with a vision to penetrate the promising markets of North America.

Bariq streamlines operations to maximize production effectiveness With equal focus on volume of production and quality of produced pellets, Bariq streamlined its production operations during the year 2014 to guarantee production effectiveness, while enforcing strict control over the company’s supply chain. Bariq implemented a quality categorization process for the company’s raw material, a scheme designed to deliver PET pellets, larger in quantity and finer in quality.


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OVERVIEW OSTOOL is a leading provider of freight forwarding and supply chain management services with a special focus on basic truck services, storage and vessel discharging. Established in 2010, Ostool operates a vast fleet of trucks to serve customers across different industries. Harnessing operational excellence through state-of-the-art management systems, strong maintenance contracts, highly trained drivers and fleet management supervisors, alongside the adoption of trip maximization techniques, Ostool serves most of the cement companies in Egypt.

OPERATIONAL HIGHLIGHTSOstool signs deal with ASEC to move cement across EgyptRecognizing Ostool’s strong presence, ASEC cement signed a major 5-year-agreement with Ostool to deliver its bagged and bulk concrete via truck to customers across Egypt. The deal was signed beginning 2014, and is worth a sum of 110 million Egyptian Pounds, requiring Ostool to promptly deliver ASEC’s products to customers in governorates from Cairo to Upper Egypt. With all its transportation needs now turned over to Ostool and 38 state-of-the-art trucks of Ostool’s fleet, ASEC is more dedicated on customer service and its core business of manufacturing high quality cement for Egypt’s expanding construction sector.

Ostool receives Bridgestone’s Best Tire Solution Application awardOstool has been awarded the “Best Tire Solution Application” given by tire giant, Bridgestone, to the best tire-manufacturing and retailing firms in Egypt. The company’s solution demonstrates on the 3M (Monitor, Maintain and Manage) Program for tires and retreaded tires. Using advanced techniques to repair damaged tires, Ostool has cut down costs by 40 percent in comparison to manufacturing new tires, preserving about 80 percent of the used material and maintaining a high level of safety and performance. The recognition Ostool received elevates its market value and allows it to further solidify its reputation as a leading transporter in the industry. The award ceremony was held in August 2014 at Novotel, 6th of October - organized by Bridgestone.



BOLD ENOUGHTO DARE

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Opinion

In our opinion, the consolidated financial statements referred to above presented fairly, in all material respects, the consolidated financial position of RAYA HOLDING COMPANY FOR TECHNOLOGY AND COMMUNICATION (S.A.E) as of 31 December 2014, and the consolidated results of its operations and its consolidated cash flows for the year then ended in conformity with the Egyptian Accounting Standards and the related applicable laws and regulations.

Without qualifying our opinion and as fully explained in note (5).The company has investment in associates and did not apply the equity method as the company is exempted from applying this method according to the Egyptian accounting standards no.18, since Raya Holding for Telecommunication and Technology Company prepares consolidated financial statements which include the financial statements of those companies.*

Report on Other Legal and Regulatory Requirements

The Company maintains proper accounting records that comply with the laws and the Company’s articles of association and the financial statements agree with the Company’s records. The physical inventory count was undertaken by the Company Management in accordance with the proper norms.

The financial information included in the Board of Directors’ Report, prepared in accordance with Law No. 159 of 1981 and its executive regulation, is in agreement with the books of the Company so far as such information is recorded therein.

Cairo:24h of March 2015

Auditor

Mohamed Ahmed Abu Elkassim

FESAA - FEST

(RAA 17553)

(EFSAR. 359)

MD

&A

AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENTS

TO THE SHAREHOLDERS OF RAYA HOLDING COMPANY FOR TECHNOLOGY AND COMMUNICATION (S.A.E)

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of RAYA HOLDING COMPANY FOR TECHNOLOGY AND COMMUNICATION (S.A.E) represented in the consolidated balance sheet as of 31 December 2014, and the related consolidated statements of income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.

Management’s Responsibility for the Financial Statements

These financial statements are the responsibility of the Company’s Management, as Management is responsible for the preparation and fair presentation of the financial statements in accordance with Egyptian Accounting Standards and applicable Egyptian laws. Management responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. This responsibility also includes selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Egyptian Standards on Auditing and applicable Egyptian laws. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance that the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s professional judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on these financial statements.

* For the footnotes please visit our website: www.rayacorp.com/investorrelations.aspx

61RAYA ANNUAL REPORT 2014 | EXECUTIVE SUMMARY

63RAYA ANNUAL REPORT 2014 | FINANCIAL REVIEW

31/12/2014LE

31/12/2013LE

Revenues 4,069,254,704 3,372,286,265

Cost of revenues (3,566,005,376) (2,959,543,128)

GROSS PROFIT 503,249,328 412,743,137

General and administrative expenses (279,642,860) (226,100,720)

Board of directors Remuneration (260,000) (312,500)

Selling and marketing expenses (67,573,976) (50,841,324)

Impairment of accounts receivable (12,864,108) (7,006,563)

Reversal of impairment of accounts receivable 10,829,531 5,106,901

Provisions (3,231,446) (3,627,979)

Provisions no longer required 2,367,200 1,916,320

OPERATING PROFIT 152,873,669 131,877,272

Finance costs - net (52,185,864) (44,192,804)

Foreign currency exchange differences (7,143,145) (6,051,342)

Company’s share in income (loss) of investments in associates 6,296,634 (2,996,936)

Gain (loss) from sale of fixed assets (25,056) (98,140)

Other income 1,289,107 7,211,179

Other losses - (1,070,300)

(Loss) from disposal of investments in subsidiaries (115,121) -

(Loss) from disposal of investments in associates (1,271,147) -

Dividends income from investments available for sale 792,579 -

Impairment of investments available for sale (7,985,554)

Impairment of goodwill - (8,800,000)

PROFITS FOR THE YEAR BEFORE INCOME TAXES AND MINORITY INTEREST

92,526,102 75,878,929

Income tax (43,153,271) (20,433,045)

Profits for the year 49,372,831 55,445,884

Distributed as follows :

Parent company 47,705,312 56,070,170

Minority interest 1,667,519 (624,286)

PROFITS FOR THE YEAR 49,372,831 55,445,884

CONSOLIDATED STATEMENT OF INCOME For The Year Ended 31 December 2014

31/12/2014LE

31/12/2013LE

Noncurrent assets

Fixed assets 366,017,834 293,311,155

Intangible assets 1,326,415 2,122,093

Investment property - 412,500

Projects under construction 559,928,881 486,263,447

Investments in associates 93,385,092 86,235,109

Available for sale investments 31,514,250 39,499,804

Deferred income tax 19,215,351 16,671,177

Goodwill 82,579,689 49,547,037

Total noncurrent assets 1,153,967,512 974,062,322

Current assets

Inventory 377,445,273 278,322,441

Work in progress 25,014,029 29,959,831

Accounts and notes receivable 589,646,119 377,311,921

Due from related parties - 43,128,217

Prepayments and other debit balances 264,836,054 233,569,671

Share based compensation 2,714,298 2,714,298

Income tax - debit balances 14,196,680 22,588,147

Cash on hand and at banks 83,789,106 91,176,200

Total current assets 1,357,641,559 1,078,770,726

Current liabilities

Credit facilities 693,034,237 478,933,394

Accounts and notes payable 422,586,200 283,552,532

Customer advance payments 45,372,602 27,626,328

Accrued expenses and other credit balances 149,129,302 160,469,653

Provisions 13,738,846 14,149,841

Dividends payable 4,536,717 7,796,968

Long term loans – current portion 88,435,661 79,536,316

Total current liabilities 1,416,833,565 1,052,065,032

(Excess of current assets over current liabilities) Working capital (59,192,006) 26,705,694

Total investment 1,094,775,506 1,000,768,016

Financed as follows :

Equity

Paid up capital 420,520,695 370,520,695

Legal reserve 24,552,272 20,048,040

General reserve 41,935,960 41,935,960

Share based compensation reserve 2,219,699 2,101,482

Treasury shares (1,155,316) (1,155,316)

Foreign currency translation adjustments (2,742,163) (2,613,213)

Retained earnings 174,000,887 122,434,949

Profits for the year after deducting minority interest 47,705,312 56,070,170

Total equity of the parent company 707,037,346 609,342,767

Minority interest 9,837,016 4,571,935

Total equity 716,874,362 613,914,702

Non-Current liabilities

Notes payable – long term 25,873,973 5,127,568

Long term loans 319,586,933 344,784,086

Long term liabilities 32,440,238 36,941,660

Total noncurrent liabilities 377,901,144 386,853,314

Total finance of working capital and noncurrent assets 1,094,775,506 1,000,768,016

Financial Controller Chief Financial Officer Chairman

Ahmed Farouk Samer El Waziri Medhat Khalil

CONSOLIDATED BALANCE SHEET As of 31 December 2014

31/12/2014LE

31/12/2013LE

CASH FLOWS FROM OPERATING ACTIVITIESProfits for the year before income tax and minority interests 92,526,102 75,878,929Amortized portion of prepaid rent 15,525,698 6,674,302Gain from disposal of sale leased back assets (2,234,438) (5,094,521)Depreciation of fixed assets and amortization of intangible assets 49,928,409 43,165,225Net finance cost 52,185,864 44,192,804Depreciation of investment property 9,000 9,000Share based compensation plan 118,217 275,841Loss from disposal of investments in subsidiaries 115,121 -Impairment of goodwill - 8,800,000Loss from disposal of investments in associates 1,271,147 -Impairment of investments available for sale 7,985,554 -Loss from disposal and impairment of fixed assets 25,056 98,141Company’s share in net (income) loss of associate companies (6,296,634) 2,996,936Investments available for sale dividends - -Provisions 5,232,891 6,565,889Provisions no longer required (3,820,640) (4,769,426)Impairment of accounts receivable 12,864,108 7,006,563Reversal of impairment of accounts receivables (10,829,531) (5,106,901)Write-down of inventory 7,119,492 5,867,176Reversal of write-down of inventory (2,121,239) (3,766,319)

219,604,177 182,793,639Change in inventory (104,143,850) (70,139,205)Change in work in progress 3,458,697 2,508,925Change in accounts and notes receivable (213,758,968) (83,179,495)Change in due from related parties 7,846,830 (4,384,819)Change in prepayments and other debit balances (45,154,320) (87,757,678)Change in customer advance payments 23,014,936 9,809,584Change in accounts and notes payable 139,729,036 72,771,988Change in accrued expenses and other credit balances (3,643,509) 42,628,978CASH FLOWS PROVIDED BY OPERATING ACTIVITIES 26,953,029 56,051,917Income tax paid (37,055,747) (36,255,883)Provisions used (1,823,246) (1,818,042)NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES (11,925,964) 26,977,992

CASH FLOWS FROM INVESTING ACTIVITIESPayments to acquire fixed assets and intangible assets (90,698,870) (53,799,110)Payments in projects under construction (209,946,073) (193,955,717)Proceeds from disposal of projects under construction 102,442,323 -Proceeds from disposal of fixed assets and intangible assets 2,672,721 (118,878)Cash flows from disposal of investments in subsidiaries (4,821,472) -Proceeds from disposal of investment property 403,500 -Payments to acquire investments in subsidiaries (6,963,177) -Restricted time deposits in favor of letters of credit 11,899,725 (12,468,715)NET CASH FLOWS (USED IN) INVESTING ACTIVITIES (195,011,323) (260,342,420)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from credit facilities 215,007,007 126,594,443(Payments of) proceeds from long term notes payable 20,746,405 (5,165,909)(Payments of) proceeds from long term loans (16,297,808) 155,108,326(Payments of) proceeds from long term liabilities (6,715,798) 11,580,803Net finance cost (52,185,864) (44,192,804)Capital increase 50,000,000Dividends paid (1,391,215) (22,014,525)Minority interest change 2,416,141 500,000NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 211,578,868 222,410,334Foreign currency translation adjustments (128,950) 1,634,883Net (decrease) increase in cash and cash equivalents during the year 4,512,631 (9,319,211)Cash and cash equivalents - beginning of the year 28,439,475 37,758,686CASH AND CASH EQUIVALENTS - END OF THE YEAR 32,952,106 28,439,475

Cash on hand and at banks 83,789,106 91,176,200Deduct: Restricted time deposits (50,837,000) (62,736,725)CASH AND CASH EQUIVALENTS- END OF THE YEAR 32,952,106 28,439,475

CONSOLIDATED STATEMENT OF CASH FLOWS For The Year Ended 31 December 2014

For more information and for footnotes to the consolidated financial statements, please visit

the investor relations' section on our website

www.rayacorp.com

EGYPT Raya Headquarters26th July St., Touristic Zone,6th of October, 12568 EgyptTel: +(202) 38276000Fax: +(202) 38276001E-mail: [email protected]

Raya Data CenterContact Center Park in Maadi,El Laselky Street, New MaadiTel: 19767E-mail: [email protected]

Raya Contact Center 26th July St., Touristic Zone,6th of October, 12568 EgyptTel: (+202) 38276000Fax: (+202) 38276001E-mail: [email protected]

Raya Smart BuildingsGalleria40 OfficePlot 40, 26th of July Street, 6th of October

POLANDContact Center – WarsawRaya Contact Center Europe Sp. Z.O.O. Millennium Plaza Al. Jerozolimskie 123a - 02-017 Warsaw- PolandTel: +48 (0) 22 647 87Fax: +48 (0) 22 647 87 97

UNITED ARAB EMIRATESRaya Contact Center – DubaiRaya Contact Center Gulf FZ-LLCDubai Outsource ZonePremise : 502Floor : 05Building : ACSSP.O Box : 92234 DubaiUnited Arab Emirates

Raya International Services - Dubai211 Building 14 Dubai Internet CityP.O. Box 500324, UAETel: (+971) 4 3901150/4Mobile: (+2) 0166691709(+971) 502731353(+971) 50825120Fax: (+971) 4 3908719

Raya International Services - Abu DhabiBuilding Sh. Khalid Bin Ahmed AlHamed, Plot no. 45, Office M1Mezzanin, Tourist Club, Abu DhabiTel: (+971) 26459910Mobile: (+2) 0166691709(+971) 502731353(+971) 508251206Fax: (+971) 26459985

NIGERIARaya Maintenance 126 Adetokunbo Ademola Crescent,Wisa II, Abuja, NigeriaTel: (+234) 94610527E-mail: [email protected]

KINGDOM OF SAUDI ARABIARaya International Services - RiyadhAL-Safwa Center, Office # 1101Prince Mamdouh St., AL-Solaymaniya,Kingdom of Sauid Arabia.P.O.Box: 62956 Riyadh 1159Tel : (+966) 11 288 6500(+966) 11 288 6616Mobile: (+966) 50 12 45 855Fax: (+966) 11 288 6450

Raya International Services - JeddahSaudi Business Center - GroundFloor, Office 114, P.O. Box 13711,Jeddah 21414Tel : (+966) 12 6515333 –Ext. 114Mobile: (+966) 50 43 28 532Fax: (+966) 11 2886450

QATARRaya International Services - DohaOffice #824, 8th floor, Al FardanOffice Tower, West Bay, Doha,QatarP.O. Box 31316Tel: (+974) – 44101 678Mobile: (+2) – 0166691709(+97) – 1502731353Fax: (+974) – 44101 500

www.rayacorp.com

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fortune favors the bold · 2018. 8. 20. · egypt, bringing us one step closer to dominating the...

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