sustainability report 2013-2014 - al-mansour...

AL MANSOUR HOLDING COMPANY

FOR FINANCIAL INVESTMENTSSUSTAINABILITY REPORT

2013-2014

Abbreviations and Acronyms

ADPF Alexandria for Dairy Products and Foods (Seclam)

AMIDC Al Mansour International Distribution Company (Imperial Tobacco)

AMTDC Al Mansour for Trading and Distribution Company

CFC Chlorofluorocarbons

CSR Corporate Social Responsibility

COGS Cost of Goods Sold

EGP Egyptian Pound

FMCGs Fast Moving Consumer Goods

GRI Global Reporting Initiative

HCID Hayat Company for Industrialization & Development

HR Human Resources

ITG Imperial Tobacco Group

KPI Key Performance Indicators

KZ Kheir Zaman

MCS Mansour Courier Service

MD Managing Director

MDC Mansour Distribution Company (Free Zone)

MDGsMET

Millennium Development Goals Mansour Electronics & Technologies

MFD Mansour Foundation for Development

MG Mansour Group

MHCFI Al Mansour Holding Company for Financial Investments

MID Mansour International Distribution

MM Metro Market

MMC Mansour Manufacturing Company (Free Zone)

MMID El Mansour and El Maghraby Investment and Development

MMTD Metro Market for Trading & Distribution

MTD Mansour for Trading & Distribution

PMI Philip Morris International

USD U.S. Dollars

UNGC United Nations Global Compact

Table of Contents1. Letter from the Chairman 52. About Al Mansour Holding Company for Financial Investments 7 Divisions of Mansour Group 7 Al Mansour Holding Company for Financial Investments (MHCFI) 7 Our Start 8 Diversification 8 MHCFI Companies and Brands 8 MHCFIOrganizationalStructure 93. Sustainability Challenges and Approach 13 Main Challenges 13 Management Approach 144. About this Report 17 Scope and Data 17 Materiality and Level Requirements 18 Our Team 185. Our Economic Performance 21 Equity 21 Profitability 22 Value Added 236. Governance and Approach 25 ComplianceCommittee 29 Our Mission and Values 30 Our Mission 30 Our Values 30 OrganizationofMHCFI 30 Control 31 AssociationsandLobbies 31 ExternalRelations 33 Announcing our Performance Results and Policies 33 GapAnalysisandCommitmentTable 337. Our People 35 RecruitingOurPeople 35 Benefits 36 EmploymentLevelandTurnover 36 Training and Career Advancement 40 Career Advancement 42 Safety 42 Gender 438. Our Community 47 HistoricalMilestonesonOurCommunity-RelatedWork 49 Other Projects 509. Our Environment and Product Responsibility 53 Environment 53 Waste 53 Energy 54 Emissions 54 Diesel 55 Water 55 Electricity 55 Productresponsibility 5710. GRI Disclosure Table 59

LETTER FROM THE CHAIRMAN

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IthasbeenachallengingperiodfortheMansourGroupoverthepastfewyears.ThevolatileandunstableclimateinEgyptintheperiodfollowingthe25thofJanuaryRevolution,2011,anditsfollowuponthe30thofJune2013,hastestedthemettlenotonlyofEgypt’sbusinesscommunity,butalsotheverysocialfabricofthecountryitself.AsEgypthastransitionedthroughthisperiodtooneofgreaterstability,optimism,andnationalpride, so toohasMansourGroup.Wehavereaffirmedourcommitment tocontinuedgrowthatalllevels.Ifnothingelse,thepastfewyearshaveclearlydemonstratedthecriticalrelevanceofsustainability.

Asafamily-ownedbusiness,wecontinuetoadheretothesocial,ethicalandmoralstandardsinstitutedbyourfounderover60yearsago.Ourcorevaluesarebasedonintegrity,efficiency,profitability,innovation,sharedvalue,andlast,butdefinitelynotleast,continuedemployeedevelopment.ForMansourGroup,afundamentalcomponentofoursustainabilityisasharpfocusonourgreatestasset:ouremployees.Investinginouremployeesisnotjustaboutensuringhigherperformance,orbuildinganefficientworkforce.Itflowsfromoursenseofresponsibilitytoourstakeholders,andeverypersonworkingatMansourGroupisjustthat-avaluedandvitalstakeholder.Employeedevelopmentisonewayofempoweringourstaff,providingthemwithessentialbusinessandsocialskillsthattheycanleverageontheircareerjourneys.Moreover,MansourGrouphasinstitutedanumberofmechanismstoensureanethicalmanagementprocessthatrespectsstaffatall levels. Following internationalbestpractices,standardizedpoliciesandproceduresareinplace,ensuringfaircompensation,equitabletreatment,transparency,communication,recognitionofachievement,health,andsafetytoallthatworkatourofficesandfacilities.

Anothercornerstoneofoursustainabilityistherecognitionthatwearepartofawidercommunity,onewhichwebelieveourselvesdutyboundtosupport. MansourGroupisactivelyengagedinavarietyofsocial investmentinitiatives,whether implementedthrough our own Mansour Foundation, or by supporting other programs nationwide, through social investments, eventsponsorships,andsocialawarenesscampaigns.Here,wefocusmainlyonpovertyalleviation,education,healthcare,andcapacitybuilding. Intermsofenvironmentalsustainability,wecontinuetopushforwardswithefficientandethicalresourceutilization,responsiblewastemanagement, andenergy conservation.

AsMansourGroupcontinuestodiversify,grow,andexpandtoevermorechallengingmarkets-locally,regionally,andinternationally-ourdedicationtoourcorevaluesensuresthatweremainavisibleexampleofwhatresponsiblebusinessconductcanachieve.

WeatMansourGroupremaincommittedtotheimplementationofthe10principlesoftheGlobalCompact.

Youssef Mansour

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ABOUT AL MANSOUR HOLDING COMPANYFOR FINANCIAL INVESTMENTS

y6

TheseedsoftheMansourGroupwereplantedbyLotfyMansourintheearly1950s,whenheestablishedtheMansour&SonsCottonTradingCompany. Hisentrepreneurialvisioncreateda legacythat iscarriedontothisdaybyhissons.Hiseldestson,IsmailMansour,succeededinsteeringthefamilybusinesstoitspositionasoneoftheleadingcompaniesintheregion.Ismailissucceededbyhisthreebrothers,whoeachhaveaninfluentialroleinmanagingthegroupandcontinuingitstraditionofbusinessinnovationanddiversification.

Divisions of Mansour Group

TheMansourGroup’scontinuinggrowthisaresultofitsabilitytoeffectivelyidentifynewbusinessopportunitiesbyexploringnewareasofdiversificationandforgingsuccessfuljointventureswithglobalbrands-somethingithasbeendoingsuccessfullysincethe1970’s.MansourGroupiscurrentlyakeyregionalplayerinvariousindustriesincludingmanufacturing,marketing,anddistribution.Employingover60,000people,MansourGroupcurrentlyachievesaturnoverofover4billionUSD.

Withaconstantfocusongeographicmarketdiversification,MansourGrouphasapresencein120countriesandoperatesventuresin 13 countries (Egypt, Iraq, Saudi Arabia, The United Arab Emirates, Libya, Chad, Nigeria, Ghana, Sierra Leone, Tanzania, Uganda, Kenya, Angola, and Russia)viaourheadquartersinCairo,andourmainofficeinLondon.Mostactivities,however,remaininEgypt.

MansourGroupiscomprisedofsixholdingcompanies,eachofwhichisresponsibleforanumberofquasi-independentcompanies.Theseholdingcompaniesare:MantracGroup;Manfoods;AlMansourAutomotive;AlMansourHoldingCompanyforFinancialInvestments(MHCFI);ManCapitalLLP(theMansourFamilyGlobalInvestmentArm);andElMansourandElMaghrabyInvestmentandDevelopment(MMID).Together,thesecompaniescoverthefollowingdiversearrayofeconomicsectors:automotive;banking;real estate; consumer goods; education; IT and telecom; equipment andmachinery;media and advertising; oil and gas; andtransportationandlogistics.

AlMansourHoldingCompanyforFinancialInvestments(MHCFI)isthefocusofthisreport.

Al Mansour Holding Company for Financial Investments (MHCFI)

Al Mansour Holding Company for Financial Investments (MHCFI) – one of Mansour Group’s six main holding companies - comprises eight large, semi-independent companies, most of which have have been created to manufacture and distribute local andinternationalbrands inEgypt.

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Our Start

Mansour Group (MG) initially created MHCFI in 1992to manage a license agreement with Philip MorrisInternational (PMI) to produce and distribute PMI’sbrandsinEgypt.ThepartnershipwithPMIlasted23yearsandendedin2014.Laterin2014,MHCFIpartneredwithImperial Tobacco, producing brands including Davidoff,Gauloises and P&S.

MHCFI was established as an autonomous company,semi-independent from Mansour Group. This allowsMHCFI the freedom and authority to rapidly respond to new business opportunities, including the ability toestablishnewcompanies,withouthavingtoreferbacktothe group. Nevertheless, despite its quasi-independentstatus, MHCFI is bound byMansour Group’s corporatepoliciesandstrategies,andiscommittedtothefulfilmentof the group’s strategic goals and Key Performance Indicators (KPIs).

Diversification

As mentioned above, MHCFI was initially created tomanage the PMI account. Over time, MHCFI began todiversify, extending its activities to the foodproductionsector with the purchase of the Seclam dairy productsprocessingfactory.Thiswasfollowedbytheestablishmentof the Hayat-Siwa bottling plant, producing bottleddrinking water.

MHCFI entered the food retail business with theestablishment of Metro Market for Trading andDistribution, successfully introducing the high-endsupermarket chain Metro Market (MM) in the 1990s.Leveraging the overwhelming success and continuedgrowthoftheMetrosupermarketchain,MHCFIopenedtheKheirZaman(KZ)supermarketchain,cateringtothelower income consumer market. Together, the Metrochain (catering to the A consumer segment) and the Kheir Zaman chain (catering to B and C consumer segments) constitutethelargestfoodretailchaininEgypt;covering12 governorates and serving more than 115,000customers daily.

MansourforTradingandDistributionCompany(AMTDC)isthecompanybehindSunshineTunaFishandShrimps,Mario Tuna, Labanita dairy products, Redbull EnergyDrinks,L’OréalcosmeticsandHenkelandHayatdrinkingwater.

MHCFI Companies and Brands

MHCFIiscomprisedofseveralcompaniesthatdistributeanextensive rangeof consumer goods toover 150,000outletsnationwide,makingitbyfarthelargestdistributiongroup in Egypt. The figure opposite outlines the eightcompaniesthatnowmakeupMHCFIaswellthebrandsthat theymanufactureand/ordistribute:

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M H C F I

A L M A N S O U R I N T E R N A T I O N A L

D I S T R I B U T I O N C O M P A N Y( A M I D C )

A L M A N S O U R F O R T R A D I N G & D I S T R I B U T I O N

( A M T D C )

A L E X A N D R I A F O R D A I R Y P R O D U C T S

A N D F O O D S( S E C L A M )

M A N S O U R C O U R I E R S E R V I C E S

M E T R O M A R K E T S T R A D I N G &

D I S T R I B U T I O N

H A Y A T C O M P A N Y F O R

I N D U S T R I A L I Z A T I O N A N D D E V E L O P M E N T

M A N S O U R M A N U F A C T U R I N G

C O M P A N Y( F R E E Z O N E )

M A N S O U R D I S T R I B U T I O N

C O M P A N Y( F R E E Z O N E )

I M P E R I A L T O B A C C O C O M P A N Y

S U N S H I N E T U N A

H E N K E L

R E D B U L L

A S M A K

B O N J O R N O

G I V R E X

L A B A N I T A

Y E S !

U P S

M E T R O M A R K E T SM I N I - M E T R O

K H E I R Z A M A N

H A Y A T

9

57+43NumberofClients/

Company Direct Coverage

60,600 Total AMTDCIndirect Coverage

80,000

AMTDC

NumberofClients/Company Direct Coverage

34,000 Total AMIDCIndirect Coverage

90,000

AMIDC

UPS


720

TherevenuesofMHCFI’scompaniesexceeded9.5billionEGPin2014,with270millionEGPinprofit.MHFCIemploysover8,700people,whichamountstoroughly14.5%ofMansourGroup’stotalworkforce.ItiscurrentlyoneofEgypt’slargestprivatesectoremployers.ThefollowingfiguresareestimatesofthenumbersoftradersandkeyclientsservedbyMHCFIcompanies/activities:5+16+13+25+6+10FOOD

HAYAT

SECLAM

REDBULL

FROZEN

NON-FOOD

4,000

13,000

10,600

20,000

5,000

8,000


HENKEL & L’OREAL

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MHCFI Organizational Structure

Cairo ishometotheheadquartersofalloftheMHCFIcompaniesexceptforHayatandSeclam,whicharelocatedinSiwaandAlexandria, respectively. However,MHCFI conducts operations all across Egypt.

MHCFImanagesitsoperationsontwodifferentlevels:someactivities,suchaslegalaffairs,corporateaffairs,externalrelations,humanresources,andsecurityandadministrationaredealtwithattheheadquarters;whileothersaredealtwithatacompanylevel.Thisallowsforsemi-independentorganizationalstructuresandflexiblesupportfunctionsthatmeeteachcompany’sspecificneeds.ThefigurebelowillustratesMHCFI’sorganizationalstructure.

MHCFI ORGANIZATIONAL STRUCTURE

S E C L A M G M

C H A I R M A N

A M T D CB U S I N E S S

D E V E L O P M E N TM A N A G E R

A M T D C M DM E T R O & K H E I RZ A M A N

M D

C O R P O R A T EL E G A L

D I R E C T O R

N A T I O N A L S A L E S& T R A D E M A R K E T -

I N G G MA M I D C

A M I D C M DH E A D O F H R

S U P P L YC H A I N

G M

C O R P O R A T EA U D I T I N GM A N A G E R

H E A D O F S E C U R I T Y

H E A D O F C O R P O R A T E

A F F A I R S

I N F O R M A T I O NT E C H N O L O G Y

G M

A M T D C M A R K E T I N GM A N A G E R

H A Y A T M D

F R E E Z O N EM D

G R O U P C E O

C O R P O R A T E T R E A S U R Y

&F I N A N C E G M

C O R P O R A T E A D M I N I S T R A T I O N& I N S U R A N C E G M

5+16+13+25+6+1011

SUSTAINABILITY CHALLENGES AND APPROACH

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EgypthasfacednumeroussocialandeconomicchallengesfollowingtheEgyptianrevolution.MHCFIwasamongmanybusinessesnegativelyaffectedbyeconomicinstability,yethasmanagedtocontinuegrowingastheeconomicsituationbegantostabilize.OneofthemostsignificantchallengesMHCFIfacedaftertherevolutionwastheoveralllackofsecurity,particularlyevidentwithincreasedrobberies.While robbery risks thendropped significantly in 2013 and2014,MHCFI facednew challenges, highlightedbelow. Main Challenges Overthepastfewyears,lackofsecurityhasbeenanissueofconcernnationwide.In2013,MHCFIwasstillstrugglingwiththerepercussionsoflowsecuritylevelsthatresultedinlossesforthecompany.However,MHCFImanagedtoimprovesecurityin2014,reportingasignificantdecrease inthenumberofrobberiesaffectingthebusiness. Predictably,newchallengeshaveemergedwhichweareplanningonfacingthisupcomingyear.

The Economic Challenge

Asof2015,Egyptcontinuestoexperiencemanyeconomicchallenges.Oneofthemostpersistentproblemsisthesteadyincreaseininflation.Thisincreasereflectsdirectlyonthepurchasingpoweroftheconsumer,puttingpressureonaffordablebrandsmoreappropriatetodecreasedconsumerpurchasingpower.Despitetheproblemsposedbyincreasinginflation,Egyptstilllackseffectivepoliciestocounterthisparticularthreat.

ThereisalsotheissueoflackofavailabilityofUSDintheformalcurrencymarkets.Thiskindofsituationforcesbusinesseslikeours,thatrequireUSDtopurchaseimportedgoods,todealwiththeinformalor‘black’market.Thisaffectsprofitabilityduetotheaddedcostofbuyingdollarsathigherratesthanthoseofficiallyquoted.

The Energy Challenge:

Electricityblackoutsandfuelshortagesrepresentachallengetoeverybusiness.InMHCFI’scase,theproblemofenergysupplyaffectsalltheproductionanddistributionphasesofourindustry.Theincreaseinthecostofdieselandgasolinenaturallyaffectsbothtransportationandmanufacturingcosts.Thisinturntranslatesintoanincreaseinthepricesofproducts,directlyimpactingthe consumer’s ability to purchase those products. Increases in the cost ofwater and electricity also affects our capacity tomanufacturewhilemaintainingaprofitmargin.

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Switching Partnerships:

OnJuly1st2014,AMIDCendedalong-termpartnershipwithPhilipMorrisInternational(PMI)andcementedanewpartnershipwithImperialTobaccoGroup(ITG).Thenewpartnershipbroughtinatobaccomanufacturingmarketshareof0.02%whichroseto0.6%marketsharebyendof2014.

This represents a challenge as thepartnershipwith PMI entailed a share amounting to 24%of the tobaccomarket. Tofill inthe revenue gap, MHCFI has been looking into adding new tobacco-related businesses and retaining the workforce.As a first step, we are looking at restructuring the tobacco business to ensure more effective business management. Management Approach Thevolatilesituation inEgyptover thepast fewyearsappears tohavesubsided,andthecountry isnowturning itsattentiontowardsstabilizingthenationaleconomy.Onestrategybeingactivelyimplementedbythecurrentleadershipsistostressamoreattractiveandsupportiveinvestmentclimate.Accordingly,MHCFIiscommittedtosupportingthegrowthofthenationaleconomythroughnewinvestmentsandexpansion.Wearehopefulthattheelectionofanewparliamentwillprovideclearpublicpoliciesregardingthetypesofinvestmentneededfortheeconomytostabilize.

Whilethecompanyisawarethatweremaininatransitionalperiod,whereuncertaintiesarepresent,MHCFIisequippedwithateamofexperiencedprofessionals implementingabusinessplandesignedtohelpusadapttothechallengesthat lieahead.ThisincludestheinstallationofanewriskassessmentmechanismthatwillenableMHCFItoforeseeupcomingrisksanddevelopeffectivestrategiestominimizethem.

Our main priority focus is to capitalize on MHCFI’s manpower. This is reflected by a management approach that seeks toaddressemployees’individualwell-being,seenasofequivalentimportancetothatofthecompany’sown.MHCFIiscommittedtomaintaining a solution-oriented approach to ourmanagement strategies, focusing on sustainablemanagement techniquesdesigned tohelpprotectouremployees -ourmainassetand thestakeholdersofMG. Intermsofenvironmentalsustainability,wearedeterminedtolookforsolutionstotheenergycrisisEgyptisfacing.Thiscomeshandinhandwiththedevelopmentofourownenergyconservationandmanagementplan,andtheadoptionofnewapproachestohowenergyisusedinallouractivities:inouroffices,outlets,andproductionfacilities.Thefollowingtablesummarizesoursustainabilityapproachbyperformancearea:

Performance Area Approach

Economic Sustainability Wearecurrentlyfocusedonmaximizingefficiency,reducingproductioncosts,andsecuringaffordableandsustainableenergyresources.

Social Sustainability Wecontinuetosupportanarrayofcivilsocietyorganizationsandsocialenterprisesacrossthecountry.OurMansourFoundationforDevelopment,haspioneeredalocally-drivenandboldapproachtosocialinvestmentsasitfocusesonkeysocialneedsincludingresearchandprogrammaticinterventionsintheareasofeducation,povertyalleviation,civicengagement,socialentrepreneurship,amongothers,inneighboringcommunitiesandbeyond.Weplanonmaintainingandexpandingoursocialinvestmentportfolio,inanefforttocontributetoEgypt’ssustainabledevelopment.

Human Capital Ouremployeesareoneofourprimarystakeholders;wecontinuetoinvestintheirgrowthanddevelopment;tofurthertheirgrowthandthegrowthofthecompany.Weplanonachievingamoregender-balancedmanagerialteambyinvestingintheleadershippotentialoffemalemiddlemanagement.

Human Rights Wecontinuetobecommittedtoazero-tolerancepolicytowardschildlaborandarecommittedtotheadoptionofaminimumwagepolicy.

Environmental Sustainability Theprogramfocusthisyearrevolvedaroundmitigatingtheenvironmentalimpactofouroperations.Thescalingofusageforbiodegradableplasticbagsandenergyreductionhavebeenthecenterfocusofthisyear’sprogram.

Product & Client Responsibility

Togetherwithouremployees,ourclientsareotherkeystakeholders.Wecontinuetofocusonclientsatisfactionandsafetythroughstringentsafetyandqualitymanagementsystems.Wealsomaintainanopencommunicationsystemwithourclientsthroughmultiplefeedbackmechanisms.

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ABOUT THIS REPORT

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MHCFIispleasedtopresentourfourthsustainabilityreport,coveringactivitiesovertheperiodfrom2013to2014.Thepurposeof this report is tokeepboth thepublicandour family shareholdersengaged in,and informedabout,ourachievementsanddevelopment.Wehavemanagedtoovercomehardshipsaffectingourbusinessoverthepastfewyears,andweplanonmovingforwardbybeingmindfulofourstakeholdersandbusinesspartners.ThisreportpresentstheseupdatesagainstthemeasuresandindicatorsoftheGlobalReportingInitiative(GRI-G3.1),levelB.

Wehavecompiledthereportathandwithadualpurposeinmind:toupdatethepublicaboutourperformance,andtousetheassessmentsandconclusionsofthereporttoimproveourperformanceinthefuture.Wecommittedourselvestoundertakethisreportingexerciseonabiennialbasisbackin2010,andhavesucceededinpublishingthreereportstodate.

Inthecurrentreport,wehavemadeeveryefforttoimproveouranalysesandexpandthescopeoftheinformationcovered,andwehopetocontinueimprovingourdisclosurelevelinthefuture. Scope and Data Thescopeofthisreport is limitedtoAlMansourHoldingCompanyforFinancial Investments(MHCFI), includingtheaggregateactivitiesoftheeightcompaniescomprisingMHCFI.Accordingly,theanalysispresentedherefocusesonthedirectcommunityandstakeholdersofMHCFI.ThereportthusaddressesneitherthepracticesoftherestofMansourGrouptowhichMHCFIbelongsnortheuniversesofMHCFI’ssuppliersandoutsourcedoperations,onwhichwehavelittleinfluenceatthemoment.Wehopetobeabletoextendourmonitoringanddisclosurecapacitytopartsoftheseuniversesbythenextreportingcycle.

Incompilingthedataandthecalculationsdisclosedbelow,wefollowedbasicinternationalmeasurementstandards.Theinformationthatweprovidehereisextractedfromourdatabases,bills,internalreports,andexternallyauditedstatements.SomeinformationhasalsobeenextractedthroughinterviewingrelevantpersonnelfromMHCFI.ThisallowsustocovermostoftheinformationthatreflectsonMHCFI’sindicators,aspertherequirementsofGRIlevelBdisclosurestandardsandthegeneralGRIreportingtradition.

InreportingonthejointperformanceoftheeightcompaniescomprisingMHCFI,wereliedmostlyonourconsolidatedstatementsandreports.Thecompilationof thesestatementsandreportsprogressedsmoothly,as thesecompaniesshareseveral centraldepartmentsandaregovernedbyacommontopmanagement(pleaseseethegovernancesectionformoreinformation).Inotherwords,MHCFI’scompaniesutilizethesametopmanagementreportingsystem.

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DespitethetremendouschallengesMHCFIfacedsincetherevolution,weareproudtosaythatwemanagednotonlytomaintainbutalsotoexpandoursustainabilityreportingefforts.Likemostcompanies,however,weareabletoreportonlypartiallyonsomeoftheGRIindicators.Wehavehighlightedtheseindicatorsinasummarydisclosuretableattheendofthisreport,andwehopetobeabletoreportonthemmoresystematicallybythenextreportin2016.Nevertheless,thisisunlikelytoposeproblemsforfutureperformancecomparisonsfortwomainreasons.First,thereportlabelsestimatesassuchandexplainsthebasisuponwhichwearrivedatthem.Second,wehavenotundergoneanymajorre-statementsofinformationprovidedinearlierreports.Theonlysignificantchangefrompreviousreportingperiods inthisregardliesperhaps inthefactthatwehaveexpandedourreportinginitiativebyprovidingmoredetailedinformationinseveralfieldsincludingEnergyconsumptionandGenderrepresentation.

Furthermore, although our sustainability case requires rather straightforward measurements, a number of environmentalindicatorsrequirecapacitieswehavenotyetacquired.Nevertheless,incomparisontopreviousreports,environmentaldatahasbeenexpanded.This includes thesteps taken tocounteranynegativeeffectsofMHCFIoperationson theenvironment.

Informationdisclosedonemployeemovementinsidethecompanyhasalsobeengreatlyexpandedcomparedtopreviousreports.Thehiringandresignationdisclosureismoredetailed.Likewise,informationonemployeetrainingconductedin2013/2014isalsomoredetailed.

Materiality and Level Requirements

WedesignedthisreporttosatisfyGRIlevelBdisclosurerequirements.ThisdisclosurelevelrequiresacompanytoreportonallGRIprofileindicatorsinadditiontoreportingfullyonaminimumofany20performanceindicators.Theseperformanceindicatorsincludeatleastonefromeachof:economic,environment,humanrights,labor,society,andproductresponsibilityindicators.

In addressing these requirements, we undertook a materiality exercise, as per the GRI’s methodology. The nature of thesustainabilitychallengesthatwearecurrentlyfacingandthevolatilebusinessenvironmentthatweliveinledustobelievethatsome performance areas are of paramount relevance to us, overshadowing others.

TheGRIsummarydisclosuretablesummarizestheresultsofourmaterialityexerciseattheendofthisreport.

Our Team

OurSustainabilityDepartmentcompiledthisreportwiththesupportofanexternalconsultingfirm.Todevelopthisyear’sreport,wedevelopedanumberofreportingmechanismstomonitorsomeofthebasicindicatorsonaregularbasis.Wehopethatbydoingsowewillbeabletoinstitutionalizeoursustainabilitymonitoringandimprovementeffortsatadeeperlevel.OurCorporateAffairsManager,SeifElBatanouni,ishappytoprovideanyadditionalinformationandelaborationsonrequest.

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g

OUR ECONOMIC PERFORMANCE

b20

MGremainsoneofthebiggestprivate investmentgroups intheregion,generatingrevenueupto4billionUSDannually.Thisleavesusinanexcellentfinancialsituation.Asmentionedinprevioussections,MHCFIismadeupofeightdifferentcompanies.Takenasawhole,theconsolidatedfinancialperformanceofthecompanyhasbeenexcellentsinceitsinception;aperformancethatthecompanyhasbeenabletomaintaindespiterevolutionaryinstabilities.

Ourcurrentconsolidatedoperationproceedswith5billionEGPofcurrentassetsand1.35billionEGPofnon-current (or longterm)assets.Theseassetsarebalanced,inpartby1.98billionEGPworthofequity.Ontheotherhand,in2014,ourconsolidatedrevenuesreached9.5billionEGP,andourprofitreached270millionEGP.

Equity

TheBalanceSheetprovidedbelowdemonstratesthevaluesofMHCFI’svariousassets,liabilities,andequitytypes,brokendownbyourdifferentbusinessunits(companies),asofDecember31,2014.

As of December 31st, 2014 EGP (Millions)

MHCFI Consolidated Balance Sheet MID MMTD MTDC MCS HCID MET MDC MMC

Total Current Assets 3864.90 268.30 579.85 34.91 29.88 3.63 168.97 60.57

(-)TotalCurrentLiabilities 1199.59 449.66 298.02 10.89 35.42 0.49 34.72 179.93

Working Capital 2665.31 -181.36 281.83 24.02 -5.55 3.15 134.25 -119.36

(+)TotalNon-CurrentAssets 133.81 852.88 162.68 9.88 42.55 6.55 8.76 136.44

Total Investment 2799.12 671.52 444.52 33.90 37.00 9.69 143.01 17.09

TotalNon-CurrentLiabilities 2000.15 158.73 10.00

Owners’Equity 798.97 512.78 434.52 33.90 37.00 9.69 143.01 17.09


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As of December 31st, 2013 EGP (Millions)

MHCFI Consolidated Balance Sheet MID MMTD MTDC MCS HCID MET MDC MMC

Total Current Assets 2046.72 210.59 503.86 34.18 34.54 3.92 220.85 56.10

(-)TotalCurrentLiabilities 1565.92 543.19 268.06 14.85 38.30 0.66 101.27 146.42

Working Capital 480.81 -332.60 235.79 19.33 -3.76 3.26 119.57 -90.32

(+)TotalNon-CurrentAssets 135.78 884.84 160.67 9.58 34.20 7.00 8.89 109.06


TotalNon-CurrentLiabilities 7.80 49.22 10.00

Owners’Equity 608.79 503.02 386.46 28.90 30.44 10.26 128.46 18.75


Profitability

Increased stability in Egypt has had a positive impact on the economy. ForMHFCI, thismeans better financial performance,resultingingreaterprofitability,vis-à-visMHFCI’sperformanceduringEgypt’sinstabilityoverthepastcoupleofyears.Thisreportdedicatesadetailedchapter(above),tothechallengesthathaveemergedsincethepoliticalupheavalsofJanuary2011began.Forthepurposesofthissection,however,wewouldliketooutlineourmainfinancialresultsandhighlighttheimpactofthispoliticalandsocialclimateonthem.

MHCFIassetsarebalancedinpartby1.98billionEGPworthofequity.Ontheotherhand,ourconsolidatedrevenuesreached9.5billionEGPin2014,andourprofitreached270millionEGPforthesameyear.

Year 2014 EGP (Millions)

Income Statement MID MMTD MTDC MCS HCID MET MDC MMC

Net Sales 5,501.86 1,978.24 1,793.03 30.93 66.18 0.51 114.97 9.36

Gross Profit 235.89 12.08 393.50 11.27 26.02 (0.18) 11.35 2.97

Net Profit For Period 190.19 15.97 48.06 4.99 6.56 (0.56) 7.60 (2.68)

MHCFIwitnessedanimprovementintermsofequityin2014.MHCFI’srevenuesandprofitsfortheyear2011were6,649.3millionEGPand222.7millionEGP,respectively.Betweentheyearsof2011and2012,ourrevenuesincreasedby1,409.2millionEGP,andourprofitsby71.5millionEGP.

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MID MansourInternationalDistributionMainBrands:PhilipMorris(Marlboro,L&M,etc.)

MTDC MansourforTrading&DistributionCompanyMainBrands:SunshineTuna

ADPF AlexandriaforDairyProductsandFoods(Seclam) MainBrands:Labanita

MCS MansourCourierService MainBrands:U.P.S.

MMTD MetroMarketforTrading&Distribution MainBrands:MetroMarket,KheirZaman

HCID HayatforIndustrialization&Development MainBrands:Hayat

MET MansourElectronics&Technologies MainBrands:Bang&Olufsen,Roamworks

MMC MansourManufacturingCompany (FreeZone)

MDC MansourDistributionCompany (FreeZone)

KEY

MansourInternationalDistribution(MID)accountedforthebulkofoursalesandprofit.OtherMHCFIcompaniesexperiencedmixedperformance.Whilesomecompaniesdemonstratedatrendofhighsalesandprofitability,othercompaniesexperiencedadropinsales,andbyextensionprofitability.

Thetablebelowillustratesourconsolidatedincomestatementfortheyear2013,brokendownbybusinessunit.


Income Statement MID MMTD MTDC MCS HCID MET MDC MMC

Net Sales 6,478.46 1,877.33 1,258.84 28.55 90.70 0.47 900.69 2.26

Gross Profit 950.90 95.48 280.86 9.15 37.80 (0.15) 125.71 (0.16)

Net Profit For Period 438.19 73.67 21.23 4.24 15.33 (0.74) 121.29 (3.90)

Astheabovetableshows,ourcompaniespaidabout119.68millionEGPinincometaxesintheyear2014.Wearemoreproudofthesepaymentsthananyotherpaymentswepreviouslymade.TheEgyptiangovernmentissufferingfromanimmensedeficitproblem,andwearehappytohavecontributedtonarrowingitdownbysuchanamount.

Value Added

MHCFIanalyzesthevalue-addedcomponentsofitsoperationsalongtwodifferentdimensions.First,wedivideourcommoditiesinto(1)merchandiseandservicesthatexperiencesomemanufacturingand/orservicestransformation,and(2)merchandiseandservicesthataddonlyretailvalue.WecanthenclassifyourCostofGoodsSold(COGS)accordingtothesetwocategories.ThetablebelowsummarizesourCOGSclassificationbybusinessunitintovalue-addedandretail-basedfortheyear2014.


COGS Classification MID MMTD MTDC MCS HCID MET MDC

Value added COGS 5,266 - 245 - - - -

Retail based COGS - 1,966 1,155 20 40 0.6 104

Total 5,266 1,966 1,400 20 40 0.6 104

Thesecondvalue-addeddimensionthatwealsotrackisourabilitytoaddvaluetoourproductioncapacity.Wegenerallyreducethistypetoourcapitalinvestmentsinagiventime-frame.Thefollowingtablescompareourcapitalinvestmentsintheyear2014withtheirequivalentintheyear2013.

Capital Investments EGP (Millions)

MID MMTD MTDC MCS

2014 2013 2014 2013 2014 2013 2014 2013

17.35 10.05 146.23 48.44 27.72 48.73 1.11 0.75

Capital Investments EGP (Millions)

HCID MET MDC

2014 2013 2014 2013 2014 2013

13.68 3.53 0.00 0.00 0.39 0.34

Ourtotalcapital investments in2014and2013were206.5millionEGPand112millionEGP,respectively.Whiletheeconomicdownturn has seenmany companies considering exiting from Egypt,we continue to pride ourselves on our commitment toinvesting in our economy.

23

GOVERNANCE&APPROACH

a24

MansourGroupisaprivatefamilybusiness;anditssharesarenotlistedinthestockexchange.Assuch,itisnotobligatedtoanyminorityshareholders.However,MansourGroupisengagedinanumberofjointventures,andthereforeneedstoaddresstheinterestsofitspartners.

AlthoughtheseventuresdonotnecessarilyaffectMHCFI,theMansourGroupimplementsasystemofformingaBoardofDirectorstogoverneachofitsdifferentdivisionsandthecompaniesthatcomprisetheminsuchawaythatagivenboardalwayscontainsindependent members. The philosophy adopted is that independent board members bring a wider perspective and variedviewpointsintothegovernanceofthegroupasawhole,andthisincludesMHCFI.Moreover,MansourGrouphasstandardizedasinglemanagementapproachacrossallofitscompanies.Thus,whiletheapproachlistedbelowgovernsMansourGroupasawhole,itgovernsMHCFIbyextension.MansourGroup’sBoardMembersandManagersarelistedbelow.

Company Board Members and Managers

Metro Market for Trading and DistributionName Position

AtefAboShady Chairman and Managing Director

Youssef Mansour ManagingDirectorforFinancialAffairs

Yasseen Mansour BoardMember

MostafaAbboud BoardMember

Mohamed El Amin Ismail Mansour BoardMember

MahmoudLotfyIsmailMansour BoardMember

25

Mansour International DistributionName Position

AtefAboShady Chairman and Managing Director

Youssef Mansour ManagingDirectorforFinancialAffairs

Mohamed Mansour BoardMember




Mansour Trading and DistributionName Position

AtefAboShady Chairman

Youssef Mansour ManagingDirectorofFinancialAffairs



NabilBarghash Managing Director




Mansour Dairy & Food Company “ Seclam”Name Position








HayatName Position









Mansour Electronics and TechnologiesName Position


NabilBarghash General Manager

Mansour Courier ServiceName Position

Youssef Mansour GeneralManagerofFinancialAffairs

Tony Costa General Manager

Free ZoneName Position

Youssef Mansour GeneralManagerofFinancialAffairs

AhmedEssamTawfik General Manager

Compliance Committee

Toensure compliancewith local and international regulations, and internationalbestpractices, a compliance committee is inplace,andconsistsofseniormanagementfromtheAuditing,Financial,HumanResources,Personnel,CorporateAffairs,andLegalAffairsDepartments.Thecommitteeconvenesonamonthlybasistoreviewperformance,policies,andprocedures,aswellasto identify and address any gaps. The committeedirectly reports to theGroup’s Chairman, andengages relevant companies’ManagingDirectorsasneeded.

29

a

Our Mission and Values

MHCFI’s governanceapproach restson sevenmainpillars: customer satisfaction; employeedevelopment; integrity;quality inachievement;profitabilityandefficiency;innovationandcreativity;andmutualbenefit.MHCFIstrivestoabidebythesestandardsandusesthemasbenchmarkswheneveritevaluatestheperformanceofanyofitsdivisions.

Our Mission

MHCFIiscommittedtothemanufacturing,marketinganddistributionofhighqualitybrandedconsumerproductsthatmeettheneedsofawidevarietyofconsumersandcomplimentstheirlifestyles.

Weaccomplishthisbyensuringthatourtalentedandeffectiveteamsbasetheirdecisionsonsoundinformationandareabletoexecuteusingupdatedandeffectiveprocesses.Wewillfairlyrewardourpeoplefortheirachievements,andwillcontinuetopursueanactiveroleinadvancingthewelfareofourcommunity.

Ourfutureisinspiredbythelegacyofourfounder,hiscompassionforhisemployees,andhisdriveforcontinuedexcellenceandachievement.

Our Values

Customer SatisfactionOurfirstandforemostresponsibilityistosatisfyourcustomers.Wewillfocusoureffortsonofferingthemhighqualitybrandsandservices,whichgivethemgoodvaluefortheirmoney,andthiswillbethedrivingforceinfluencingourdecisions.

Our PeopleAsacompany,werecognizethatourpeoplearethebuildingblocksofoursuccess.Wewillworktodevelop a highly skilled andmotivated team through rigorous selection, continuousdevelopment,andbyofferingfairopportunityforadvancement, improvedqualityof life,andthechancetoseizeopportunities leading topersonal andorganizational triumph.

IntegrityWewillmaintainthehigheststandardsofethicsandintegrityinallourdealings.Wewillworkhardtomaintainhonestandopenrelationshipsbuiltonmutualtrust.Wewillhonorallcommitments,internalandexternalwhetherverbalorwritten.

Quality in AchievementWewillfocusnotonlyonachievement,butalsoontheprocesswhichleadstothatachievement,withthehighestpossiblestandardofquality.Throughcontinuousimprovementandcollectiveeffort,wewillbecomethefirstorsecondineverymarketinwhichwecompete.

Profitability & EfficiencyOurprofitabilitywilldetermineourabilitytogrow.Inoureffortstoexcelwewilloptimizetheuseofourresourcesandkeepwastetotheminimum.

Innovation & CreativityWeencourageinitiativesbasedoncreativity,andtheinnovationsthatwillmakeusbetteratwhatwedo.Wewillbeflexibleinourapproachtowork,andwillallowforthebrilliantexceptionsthatflourishinanenvironmentofcalculatedrisk.

Mutual BenefitWewill conduct business in a fashion that benefits our company, and all its stakeholders.Wherecollectivebusinessbenefitsexist,wewillworktopromotetheminawaythatensuresthatthebenefitsaremaintainedforthelong-term.

Organization of MHCFI

EachofMHCFI’scompanieshasitsownManagingDirector(MD),whoisendowedwithfullauthoritytoleadhis/hercompany.TheMDrepresentstheChairmanofMG,YoussefMansour,inwhichevercompanytheymanage.MGsetsannualtargetsforeachMD,andtheperformanceofeachcompanyislaterevaluatedagainstthesetargetsattheendoftheyear.

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Inrunningitscompanies,MHCFIalsoadoptsamatrixstructureorganizingthemanagementofthecompanyalongtwolevels.Ontheonehand,theholdingcompanycentralizesseveralsupportfunctionsthatallcompaniesshare,includingHumanResources,PolicyformulationandControl,SupplyChainManagement,Audit,Administration,Security,andLegalandCorporateAffairs.Ontheotherhand,eachcompanyhasitsownoperationalstructure,andwhenneeded,itsownsupportfunctions.Forexample,securityisorganized inMetroMarketonthecompany level;butcorporatesecuritydealswith thesecurityaffairsofall theremainingcompanies.

Control

ThemissionandvalueslistedabovegoverntheworkofallcompaniesinMHCFI.Ontopofthat,thecorporatesystemthatweadopt(previoussection)islaidoutinawaythatsuppliesourcompanieswiththeindependencethattheyneed,whilesimultaneouslyassuringareasonablelevelofcorporatecontrol.

Inadditiontotheseelements,MHCFIisalsogovernedbymanyinternalandexternalstandardswhichsafeguardourperformanceandhelpusoperateinacorruption-freeenvironment.Thesestandardsaredeployedandassuredbyrigorousinternalandexternalfinancialandperformanceauditingsystems.MHCFIhas,infact,anindependentcorporatedepartmentdedicatedtoundertakingsuchaudits.

Manyofourcompanieshavecertifiedpartsoftheirmanagementsystems,accordingtotheirindividualneeds.SeclamandHayatforexample,havebeenawardedthefollowingcertificates:

MHCFIiscurrentlystudyingthedevelopmentofanti-corruptionpolicies.Giventhatallofouractivitiesarecarriedoutintransparentenvironments thatprovide littlespace forcorruption,wegenerallydidn’tconsidersuchpoliciesurgent in thepast. Sincetherevolution,however,combatingcorruptionhasbecomeoneofthemainaspirationsofEgyptiansociety,andMHCFIisplanningtohonorthisnationalgoalwithrenewedvigour.

Associations and Lobbies

BeforetheprotestsbeganinJanuary2011,Egyptiangovernmentbodiesusedtomeetregularlywithbusinessassociationsandrepresentativestodiscussoptionsfordealingwiththeirregularproblems.Backthen,weusedtosufferfromthecomplicationsandbureaucracyofproceduresforobtainingpermitsandlicenses.Thismechanismcollapsedaftertheprotestsandcurrentlythereisanothersysteminthemaking.Wearehopefulthataftertheelectionofanewparliament,wewillbeabletoregainourpositionasactivemembersinthemeetingsbetweentheprivateandthepublicsector.

Asoftoday,westandasactivemembersinseveralbusinessassociations,includingthefollowing:

31

I S O22000

I S O18001

I S O14001

I S O17025

EgyptianChamberof

Commerce in Alexandria

ChamberofFood

Industries

GermanArabChamberofCommerce

American ChamberofCommerce

UnitedNationsGlobal

Compact

I S O9001

External Relations

ThroughitsCorporateAffairsdepartment,MHCFIconstantlyengageswithmostofitsgovernmentalstakeholders,includingtheMinistryof Finance, theMinistryof Supply, theMinistryof Tradeand Industry, theMinistryofHealth, theTaxAuthority, theCustomsAuthority,andtheConsumerProtectionAgency,onfiscalandregulatorymatters.Thisisdoneinordertoensurealongtermlevelplayingfieldwhenitcomestoproperandethicalmarketcompetitiveness.MHCFIalsoengageswithmanyoftheseauthoritiesinordertofindcommoninitiativesthatserveboththenationandourcorebusinesses.

Announcing our Performance Results and Policies

Giventhatourcompaniesarenotlistedinthestockmarket,publishingourfinancialstatementsisnotrequired.Nevertheless,wearealwayshappy to share themwithany stakeholder interested in suchaccess.WeemailourSustainabilityReport toallrelevantstakeholdersregularly.Thisincludesallstakeholdersdirectlyandindirectlyaffectedbyouroperations,includingrelevantgovernmentalorganizations,privatesectorsclientsandpartners,andcivil societypartners.Wealsopublish thereportonourwebsite.

We regularly update our policies and communicate any changes and updates to our employees. Changes and updates areinitially announced to everyone involved using our internal email system. New updates are also highlighted in our internalnewsletters.Moreover,announcementsareaddressedandcommunicateddirectlytothedifferentdepartmentmanagerswhointurncommunicatethemtotheirstaff.Thelatestversionsofallourpoliciesandproceduresareavailableonaregularlyupdatedelectronicdatabase thatall staffmembers caneasilyaccess.

Gap Analysis and Commitment Table

Mansour Group is continuously seeking to improve itsmanagement of economic, environmental, and social performance inaccordancewithinternationalandregionalstandards.Tothisend,thecompany’smanagementhasidentifiedtherelevantgaps,withtargetdatesregardingwhentheywillbeaddressed,inordertomitigaterisks,seizeopportunities,andensurethecompany’scompliancetothosestandardsandprinciples.

Wehavelistedthemaincommitmentswearepromisingourstakeholdersbelow-

Commitment Target date

DevelopanInternalTrainingProgramforManagersonSustainabilityIssues 2014 – 2015

DevelopacomprehensiveAnti-CorruptionPolicyandoutlineanti-corruptiongoals 2014 - 2015

CreateanInternalSustainabilityCommittee 2014 - achieved

CreateanInternalSustainabilitymonitoringandreportingsystemforallinvolvedde-partments 2014 – achieved

Develop a comprehensive Stakeholder Engagement Plan 2014 - achieved

Developing a uniform Waste and Energy Monitoring System for:

1-Monitoringtheamountsofwastebytype,weight,andvolumegenerated;2-Monitoringdirectandindirectenergyconsumption;3-Trackinghowcontractorshandlecollectedwaste;4-Trackingtheimpactofenergysavinginitiatives;and5-Monitoringtheportionofmaterialsthatarerecycled.

1,2,and3achieved;4&5tobeachievedin2015.

DevelopacomprehensivePolicyonProductResponsibilityacrossthegroup 2014 – achieved

Implement stakeholder engagement plan 2015-2016

Continueresearchandbusinessdevelopmentfornewbase of the pyramid investment opportunities 2015

33

OUR PEOPLE

h34

Our People

AtMHCFI,webelieveinouremployeesandstaffandregardthemasthecompany’smostimportantassets.Weareproudtohavedeveloped,overtime,arobustmechanismforattractingthehighcaliberworkforcethatweneed,andtohavedevelopedasystemthatsafeguardstheirinterestsandbuildstheircapacities.

Asamatterofprinciple,weseektodevelopourpeoplefromthemomenttheyjoinMansourGroup,preparingthemtoeventuallybecomeapartofourseniormanagement.Wehavethereforedevelopedahighqualitycapacitybuildingsystemthathasbeenproveneffectiveovertheyears.

Ourrecruitmentsystemisbased,firstly,onapullsystem,wherebyrecruitmentensueswheneveraneedforacertainpositionemergesinourcompanies.Secondly,weadoptedasalaryschemethatpegsourpayaccordingtothemiddlepayinthemarket,whilehonoringourminimumwagepolicywhenwefind that themiddlemarketpay is too low.Thirdly,wearecommitted tosafeguardingtheinterestsofouremployees,andthisisensuredthroughourspeciallydesignedHumanResources(HR)policiesandformalcontracts.Finally,weintensivelytrainouremployeesandstafftobuildtheircareerswiththeaimofkeepingthemindefinitely,ifpossible,ortoqualifythemforexcellentjobsinthemarketifkeepingthemprovesimpractical.Wearealsoadamantonprovidingourworkforcewithfair,transparent,andperiodicperformanceevaluations.

Recruiting Our People

MansourGroupadvertisesforvacanciesthroughnationalandlocalmedia,andthroughappropriatecommunities.Relevantstaffmembers,incooperationwiththeHRdepartment,thenscreenalljobapplications.Jobsareawardedtothoseapplicantsmostqualified.Allourrecruitmentactivitiesaregovernedbypublicizedpoliciesandprocedures.

Withrespecttopay,wedeterminesalariesaccordingtomarketsurveysofthefast-movingconsumergoodssector(FMCGs),ourmainfield,conductedbythirdpartiesandspecializedfirms.Wegenerallytargetasalaryscaleinthemiddleofthemarketspectrumforthesameposition,aspertheseexternalstudies.

Thesesalariesarethenmodifiedaccordingtothelevelofexperienceofthecandidate,andourminimumwagepolicy.GiventhatEgyptdoesn’tapplyaminimumwagelaw,MHCFIwentontoadoptaminimumwageof1,000EGP,whichis400EGPmorethantheminimumwageinthegovernmentalsector.

35

Benefits

Inadditiontoourcompetitivesalaries,MHCFIprovidesitsstaffandemployeeswithaddedbenefits,alwaystryingtoexceedtheminimumrequirementssetforthbyEgyptianlaw.Egyptianlawsregulatetheminimummedicalinsuranceforworkersaswellastheirpensionschemes.MHCFIhonorstheselawsandprovidesitsstaffwithfurtherbenefitsincluding:

• Mansour Medical Care unit – An internal Health Insurance system for Mansour Employees;• Mealsorallowanceformealsformanufacturingworkers;• Transportationallowancewhentraveling,andacompanycar,accordingtograde;• Companytransportationforourfactories;• Mobilephoneallowance,accordingtograde;and• Specialrewardsforoutstandingperformance.

Detailsonthenumberofemployees,theirsalaries,andtheirbenefitsarebrokendownbyeachcompanyandcanbefoundinthefollowingtable:

Company Name

Salaries without Incentives(EGP)

Incentives(EGP)

Total Expenditure(EGP)

Number of Employees

Vehicles TransportationAllowance

PersonswithDisabilities

MID 53,964,196 8,986,508 62,950,704 30 129 3

MTD 42,142,707 7,747,335 49,890,043 173 2 2

Seclam 25,141,707 4,934,250 30,075,958 7 2 16

Seclam Sales 7,129,995 1,389,327 8,519,323 38 0 0

Hayat 6,980,947 803,874 7,784,821 1 1 0

MMC 1,454,121 145,289 1,599,410 5 0 0

MET 84,755 7,141 91,896 0 1 0

MDC 700,979 133,917 834,896 0 0 0

Metro Market 128,965,857 20,105,740 149,071,598 75 136 59

Total 269,889,116 44,292,651 314,181,768 330 271 81

Inaccordancewithourpolicy,MHCFIprovidesallitsemployeeswithformalcontracts.ThisprovidesourworkerswithalevelofjobsecuritythatmanylackinEgypt,whereworkinginformallywithoutacontracthasbeenendemicinrecentyears.

MHCFIalsofollowstherelevantlaborlaws:providingitsfemalestaffwiththreemonthsmaternityleave;awardingallemployeeswithaone-monthnoticeperiod;andfollowingEgyptianlawwithrespecttopenalties.

Employment Level and Turnover

MHCFIcurrentlyemploys8,723employees,upfrom8,400employeesmentioned inthe lastreport,makingaturnoverof500employeesduringthelastyear.TheMetroMarket/KheirZamanCompanyoperatesalabor-intensiveactivitybasedonregularentryoftransientlabor.Itthereforeaccountsfor61%ofouremployment,eventhoughitaccountsforonly13%ofourprofits.Mostofthe500thatleftthecompanywereworkersatoursupermarketchains:MetroMarketandKheirZaman.

TheturnoverrateinthesupermarketbusinessisgenerallyhighinEgypt,asitisworldwide,asmanytreatthesejobsastemporaryortransitionaluntiltheylocateamorestableorlongtermjob.Withtheexceptionofoursupermarketchains,wehaveotherwisebeenabletoretainouremployees.

36

60+637+531+4 33+1

EMPLOYEE TURNOVER

EXITS2013

ENTRIES2013

17 2

EXITS2014

ENTRIES2014

155 163

Mansour International Distribution

EXITS2013

ENTRIES2013

23 28

EXITS2014

ENTRIES2014

186

301

Mansour for Trading and Distribution

1+0 4+0EXITS2013

ENTRIES2013

0 0

EXITS2014

ENTRIES2014

1 21

Mansour Manufacturing Company – Free zone

EXITS2013

ENTRIES2013

EXITS2014

ENTRIES2014

Mansour Distribution Company – Free zone

38

EXITS2013

ENTRIES2013

1337

EXITS2014

ENTRIES2014

4924

Mansour for Trading and Distribution - SECLAM

EXITS2013

ENTRIES2013

2 6

EXITS2014

ENTRIES2014

55 64

Hayat Company for Industrialization & Development

39

Metro Market for Trading and Distribution

EXITS2013

ENTRIES2013

17655

EXITS2014

ENTRIES2014

1442

538

Training and Career Advancement

ThetrainingandcareerdevelopmentofouremployeesisadeeplyingrainedpartofMHCFI’scorevalues.Careerplanningandtrainingsessionsareconductedbythecompanyonadailybasis.Wearecommittedtodevelopingouremployeesandbuildingtheircapacity,notonlyassistingthemtoreachtheirfullpotential,butalsoequippingthemwiththeskillsandknowledgethattheyneedtoadvanceupthemanagementladder.

Wedivideourtrainingprogramsbytypeandbymanageriallevel.Duringtheyear2013weconducted1,439trainingsessionsintotal.Thisnumberwasincreasedto2,022trainingsessionsin2014,thedetailsofwhichareasfollows:

Type of Training Managers Mid-Level Subordinate Totals Managers Mid-Level Subordinate Totals

Technical Skills 24 32 45 101 12 77 47 136

Soft Skills 16 61 23 100 45 180 237 462

Business Needs 13 115 116 244 15 17 30 62

Certificates & Diplomas 17 17 10 1 11

MBA & Mini MBA 3 3 3

Overseas Training 1

English Courses & Microsoft Skills 4 5 17 26 6 50 36 92

Induction (Product Knowledge) 1 10 45 56 6 40 25 71

Total 2013 547 Total 2014 763

Training Details:

Technical SkillsInnovative Positive Mindset Workshop - Business Writing Fundamentals of Project Management - Evaluation & Selection of Suppliers - Programming in Visual Basic 2010 - Logistics Management & Strategy - Advanced Management Skills - Project Management Preparation - Business Decision Simulation - Certified in Production & Inventory Management CPIM - Advanced Certified International Trainer - Project Planning & Controlling Techniques - Management of Project Resources - Project Bids & Contracts - Project Budgeting & Financial Control - FESTO - Apples & Oranges - Supply Chain Certificate - Introduction to Java Script - Material Handling & Warehousing - Advanced Logistics Management - Performance Management - Labor Law Negotiation Skills - Problem Solving & Decision Making - Media & Public Relations – Inventory Management – Procurement Management Techniques.

Soft SkillsTeam Building & Leadership - Communication Skills - Presentation Skills - Work Place Organization - Business Etiquette - Proactive Co-operation - Coaching for a Gold Medal - Time & Stress Management - Effective Management Skills - Negotiation Skills Project Management.

Business NeedsSix Sigma Orange Belt - Good Manufacturing Practice - Basic PLC Course - Advanced PLC Course - Trouble Shooting PLC Course - Introduction to HSE - Coping with Change - Food Safety & Hygiene - Utilizing Manpower as Resources - Methods of Examination and Testing of Liquid and Dried Dairy - Water Treatment Processing – Handling of Expired Food Products - Training for Capacity Building in the Area of International Trade Agreements.

Certificates & Diploma’sSales Management - Strategize Program - Procurement & Supply Chain Management - Total Quality Management - Advanced

40

Warehouse Management - Project Management Diploma – SPHR.

Overseas TrainingAchieving Outstanding Performance - Leading Effective Sales Force - Strategy Execution Program.

English Courses & Microsoft SkillsMicrosoft Excel - Advanced Microsoft Excel - PowerPoint - Basics of Microsoft Office - IT Oracle & SAP courses.

ThefollowingtabledetailsMetroMarket’strainingsessionsfortheyear2013:

Type of Training Managers Mid-Level Subordinate Totals Technical Skills 2 1 3

Soft Skills 2 1 3

Business Needs 36 102 138

In-house Programs for Sales & Marketing 285 285

Induction 463 463

Total 2013 892

Technical Skills: How to Measure Training Results

Soft Skills: Coaching & Mentoring

Business Needs: Meat Hygiene & Inspection - Civil Defense & Fire Fighting - Food Hygiene

In-house Programs in Sales & Marketing: On-the-Job Training

Induction: Product Knowledge

41

ThefollowingtabledetailsMetroMarket’strainingsessionsfortheyear2014:

Type of Training Managers Mid-Level Subordinate Totals Technical Skills 16 74 6 96

Soft Skills 25 1 44 70

Business Needs 51 153 204

In-house Programs for Sales & Marketing 18 113 131

Diploma(H.R diploma ) 1 1

On Job Training 35 260 295

English Courses 25 41 12 78

Induction 384 384

Total 2014 1,259

Technical Skills

Business Writing - Talent Acquisition - Social Insurance & Labor Law - Certified Assessment Center Analyst - Certified Performance & Competency Developer - Impact Space Management - Train The Trainer - Talent Management - Storewars.

Soft Skills

Customer Service - Emotional Intelligence Skills - Becoming a High Performance Manager - Management Competencies - Advanced Management Skills - Performance Management System - Decision Making & Problem Solving

Business Needs

Meat Hygiene & Inspection - Civil Defense & Fire Fighting - Food Hygiene

In-house Programs for Sales & Marketing

Awareness Session - New Products

Career Advancement

MHCFI’scommitmenttoemployeedevelopmentisperfectlyillustratedbyourinvestmentinoursupermarketchainemployees.Employee trainingwasdesigned to address thehigh turnover in this sector, and to showour employees thatwe care abouttheir long-termcareers.Allofour current storemanagers startedoutatentry levelas storeworkers thatdemonstratedhighperformance,receivedextratraining,gainedexperience,excelled,andwereeventuallypromotedtostoremanagerpositions.Wedon’tneedtorecruitnewstoremanagersfromoutsideouroperations;theyareall internallypromotedworkers.

Todoso,notonlydoweneedtotrainourworkers,butwealsoneedtoprovidethemwithobjectiveKPIsandappraisetheirperformanceperiodicallyandtransparently.Ourendofyearappraisalsinformourstaffabouttheirstrengthsandweaknesses,andprovideuswiththemaininstrumentsbywhichwedetermineannualstaffbonusesandpromotions.

Safety

Allouremployeesaretrainedinevacuationsteps,andinfacingcrisissituations;themajorityofemployeeshavealsobeentrainedinfirefighting.Althoughouractivitiesgenerallydonotputouremployeesatrisk,wehavenonetheless identified36 jobsthatrequirehighsafetyprecautions.Workersinthesepositionsreceivedspecialtrainingandwereallprovidedwithsafetywearlikegoggles,gloves,helmetsandsafetyshoes.

MHCFIcurrentlymonitorsonlymediumandseriousworkinjuries,ofwhichwehavehadnoneduringthepasttwoyears.Wearecurrentlyinvestigatingtheexpansionofamonitoringsystemtoincludemildinjuriesaswell.

42

Gender

While we do not have a written anti-discrimination policy,salariesaredecidedbaseduponqualifications;leavingnoroomfor gender biases . Nevertheless, there is a significantly largernumberofmales than femalesacrossour companies,which issomething we are looking to address. The reason behind thepredominance of males in MHCFI is not a result of discriminatory policiesonthepartofourcompany,butratherreflectsaculturalvaluesystemthatdictatesthatfemalesarenotsuitedtoworkinheavyindustries. Wearecurrentlyworkingtowardsenhancingthemanagement gender ratio; but achieving amore balancedgenderbalanceattheblue-collarlevelrequireslonger-termshiftsin socio-cultural values.

The followinggraphs showgenderdistributionfiguresacrossanumberof our companies:

GENDER DISTRIBUTION

70+30 77+23 99+1 91+9Mansour International Distribution Co.

TOTALWORKFORCEMIDDLE MANAGEMENTUPPER MANAGEMENT

95264621985

84+16 90+10 97+3 95+5TOTALWORKFORCEMIDDLE MANAGEMENTUPPER MANAGEMENT

Mansour for Trading & Distribution Co.

116992421332

43

67+33 95+5 100 98+2TOTALWORKFORCEMIDDLE MANAGEMENTUPPER MANAGEMENT

Hayat Company For Industrialization & Development

219155586

100TOTAL

Mansour Free Zone – Manufacturing

53

82+18 85+15 94+6 92+8TOTALWORKFORCEMIDDLE MANAGEMENTUPPER MANAGEMENT

Mansour Dairy & Food Company (Seclam)

91371015152

88+12 89+11 96+496+4TOTALWORKFORCEMIDDLE MANAGEMENTUPPER MANAGEMENT

Metro Market For Trading & Distribution Company

5332501527950

44

OUR COMMUNITY

p46

MansourGroupishighlycommittedtoresponsiblebusinesspractices.Itundertakesmanyactivitiestopromotethewelfareandsocio-economicdevelopmentofEgyptiansociety,throughavarietyofmechanisms.OneoftheseistheMansourFoundationforDevelopment (MFD),which isdedicated to theeradicationof illiteracy,poverty,anddisease,byeffectivelyworkingwith,andcontributingto,thedevelopmentoflocalcommunities.

Ourcommunity-relatedworkhasundergoneaprocessofevolutionovertheyears.Thefollowingsectionbrieflyhighlightssomeofthemilestoneswithregardstoourcommunitydevelopmentinitiatives.

Historical Milestones on Our Community-Related Work

MansourFoundationforDevelopmentisanindependentlegalentitythatisfullyfundedbytheMansourfamily.Ithasaseparatebudget fromtheMansourGroupanddoesnotacceptanyfinancialaid fromnationalor internationaldonors.MFDalsohasaseparateBoardofDirectors fully dedicated tophilanthropic activities. MFDworks to centralize the communitydevelopmenteffortsofallMansourGroup inordertomaximizetheir impact.MFD isanexpressionof thegratitudefeltbyMansourGrouptowardsthepeopleofEgypt,andweexpectnotax-deductiblereturns.

MFD’sstrategyofsustainablemanagementisbasedonsharedvaluecreation.ThecorporatesuccessofMansourGroupandthesocialwelfareofEgyptareinterdependent.Inanefforttosustainourfoundation,weinvestinthecreationofahealthy,educatedworkforce,andinsustainableresources-bothofwhichguaranteeeffectivegovernanceoftheorganization.Forsocietytothrive,competitivebusinessesmustbedevelopedtocreateincome,wealth,andtaxrevenues,andpracticephilanthropy.

MFDisdedicatedtophilanthropy.Asagrant-makingandco-executingfoundation,thefoundationundertakesmanyactivitiestopromotethewelfareandsocio-economicdevelopmentofEgyptiansociety,deployingtothisendavarietyofmethodstoeradicateilliteracy, poverty, anddiseasewhile raising thepublic awarenessof active citizens.MFD’s team identifies concrete goals andobjectives,prioritizesissuestobeaddressed,anddevelopsdefinedbudgetsforprogramimplementation.

Ourstrategichighpriorityareasinthefieldofhumandevelopmentare:

47

Social EntrepreneurshipEducation

Health

Capacity Building

Academic Research

Arts&Culture

Human Relief

Wehavealsoidentifiedfourprioritysegmentsthatwewanttofocuson,whichareasfollows:

Our Objectives:

• Leverageacademicresearchinsocialentrepreneurship&youthengagement• Preserve&revivetheEgyptianIdentity• Bringcreativity&innovationtobigsocietybysupportingyouthentrepreneurshipfromcoretoshell• Upgradepubliceducationalfacilitiesandbuildings• Supportpoorand/ordisabledstudents• ProvideeducationalscholarshipsinEgyptandabroad• Prevent girls from dropping out of school• Combatilliteracy• Develophealthfacilitiesthatcatertounderprivilegedpeople• Supporthealthactivitiesindeprivedhospitals• Providemedicaltreatmentforpeoplewithdisabilities• ProvidetechnicalsupportforNGOs’staff• Provideeducational,technical,andeconomicsupporttomarginalizedsectors• Supportpeoplewithspecialneedsinthefieldofsports.

Ourapproachissimplyintegrationandinclusion.Ourpillarsarepassion,purpose,andpeople.

Wecannot fulfillourgoalswithoutadoptingstandardpoliciesandprocedures thatensure thedeliveryofutmostqualityandtrustworthiness throughout the lifecycle of our projects and activities. MFD’s approach is based on developing the humanelementinsociety,andisthereforebasedoncommunity-drivenprojects.MFDseeksnotonlytoapplyMansourGroup’sbusinessmanagementmodel in itscommunitydevelopmentactivitiesbutalso to transfer it toourrecipients.

InhabitantsofRemote AreasYouth Women Children

48

2013-2014 Portfolio of programs

Corporate Volunteerism:

AtMFD,weengagecommunitymembers involunteer-ismasoneofthemost importantcornerstonesofpromotingcorporatecitizenship. Employee volunteers are perhaps the greatest asset companies can leveragewhen seeking to affect surroundingcommunities.Corporatevolunteer-ismprovidesgreatbenefits toacommunitywhilegeneratingbusinessvalue in the formofincreasing employee engagement and expanding opportunities for team-building.

Civic Education:

Initsbroadestdefinition,“civiceducation”meansalltheprocessesthataffectpeople’sbeliefs,commitments,capabilities,andactionsasmembersorprospectivemembersofanygivencommunity.Forciviceducationtoachieve itsutmostpotential, theinstitutionspresentinthecommunityneedtoactandbehaveinacertainmannerthatcanlaterbetransmittedtotheremainingmembersofthecommunityovertime.CivicEducationiscertainlynotlimitedtoschoolingortheeducationofchildrenandyouth.Families, governments, religious institutes, andmassmedia are just some of the institutions involved in the process of civiceducation,whichweatMFD,understandtobeanongoingprocess.

Asadvocatesandactivistsinthefieldofciviceducation,MFDhasimplementedthefollowing:

1. Civic Manners Film Making Workshop2. Children Values Workshop3. Ways Forum for Youth Engagement in Development4. Civic Education Egypt Conference 5. Development Road Show 6. Development Book Fair

Social Entrepreneurship:

Investmentinsocialentrepreneurshipisvitalbecauseitharnessescreativityanddevisesinnovativesolutionstodeeprootedsocialproblems. Itnurturesapooloffuture leaderswhohaveambitiousdreamsofchangeyetmanagetostayrootedandsolution-oriented.Theircommitmenttopositivelyimpactingsocietyiscentraltothemissionofourbusinessandthisiswhywesupportsocial entrepreneurship from core to shell through:

1. Regional Study on Corporate Sustainability and Social Entrepreneurship2. Entrepreneurs’ Stanford Scholarship

Culture & Arts:

Thesignofahealthycommunityisitssimultaneousabilitytopreserveandinventitsculture—thatis,toconserveitshistoryandheritageandhereisourcontributioninthisregard:

1. DCAF2. ElFan Midan3. Qabila Documentary Film Festival4. Wanas Folklore Festival

Health:

MFDhas systematicactivities toprevent and curehealthproblems, and topromotepositivehealth in Egyptians through thefollowing:

1. Hepatitis A vaccination School Campaign2. Annual Cure Support Program

Capacity Building:

OuraimistocreateanenablingenvironmentforappropriateNGOsviainstitutionaldevelopment,humanresourcesdevelopmentandstrengtheningofmanagerialsystemstomaximizethecapacityofNGOstoovercomethechallengesofcommunitydevelopment.MFDcurrentlyprovidesassistancetothefollowingNGOs:

1. Dar Awladi Orphanage2. Elgabal Elasfar (Yellow Mountain) Local Community Development Association

49

3. Elsaktiya Local Community Development Association, Upper Egypt4. Bedaya (Start) Charitable Association, Elfayoum Governorate5. Women’s Association for Better Health, Sohag governorate

Advocacy, Awareness & Networking:

OneofMFD’saims is to influencedecisionswithin institutions relevant todevelopmentandsocial systems.Weadvocate thisthroughmanyformsincludingmediacampaigns,publicspeaking,research&papers,andpeernetworking.Ouractivitiesinthisfieldcanbelistedasfollows:

1. Arab Foundation Forum Board of Directors2. Organizing a roundtable about corporate foundations’ role in time of change in Salzburg 3. MFD paper presentation at 10th CSR conference UAE4. Qatar Education Summit 5. Panel discussion on Collaboration, Governance & Engagement Emirates Youth Summit Social Solidarity:

Social solidarity is thebasis formaintaining social cohesionby strengthening the ability of individuals to support eachother.Althoughactivitieslistedbelowperformdifferenttasksandoftenhavedifferentvaluesanddirections,theorderandsolidarityofsocietymembershingesontheirabilitytorelyoneachotherinordertoovercometimesofcrisis.Peoplefeelconnectedthroughphilanthropicandsocialactivities, including:

1. Holy Quran Competition for Factory Workers2. 1,000,000 blankets campaign3. Food Convoys to the Underprivileged

2013-2014 success in figures:

No of beneficiaries: 10,000 peopleNo. of programs: 28No. of governorates served: 6No. of partners: 26

2013-2014Outcomesarefocusedinvalueprepositionandsharedvalue:

• Scale up programs; highly responsive to crisis at the time that deeply affected the development sector.• Join hands with Mansour employees to spread the spirit of corporate citizenship via serving the community.• Fund & execute numerous development activities; that contribute to positive change and building the future.• Address, engage and support youth in all of our programs. • Develop & expand our outreach methods.

Other Projects

InadditiontoMFD’sconsiderablecommunitydevelopmentefforts,MansourHoldingalsohasseparateprojectsaimedatcontributingtoEgyptiansociety.Furthermore,anumberofprojectswere implemented throughcollaborationbetweenMansourHolding’sCorporateAffairsdepartmentandtheMFD.Forexample,35trashbinswereinstalledintheWadiDeglanaturalprotectorateincollaborationwiththeMinistryofEnvironment,andaclean–upcampaignwasundertakeninthearea.Additionally,since2011,theCorporateAffairsdepartmenthasbeenorganizingbi-annualblooddonationcampaignsforcompanyemployees.

Suez Canal Investment Certificates worth 10 million EGP for the Poorest Families in Luxor

TheMinistryofSocialSolidarityandMansourGrouplaunchedaninitiativetosupportthepeopleintheLuxorgovernorate.TheinitiativecomesinlinewiththeimplementationofamemorandumofunderstandingsignedbetweentheMinistryandMansourGroupunderthepatronageofYoussefMansour,theChairmanoftheMansourGroup,aimedatactivatingthepartnershipinitiativetosupportthepoorestfamiliesinthegovernorate.

MinisterGhadaWalyindicatedthattheMinistryisadoptinganapproachthattargetsthesustainabledevelopmentofthemostmarginalizedofareasthroughpartnershipswiththeprivatesector.SheaddedthatthememorandumofunderstandingsignedwiththeMansourGroupisasuccessfulimplementationofsuchanapproachandemphasizeditssuccess.

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TheMansourGrouphasfinancedthepurchaseofonethousandnewSuezCanalinvestmentcertificatesatEGP10,000/certificatewithatotalvalueof10millionEGP,throughtheMinistryofSocialSolidarity,whichwilldistributethesecertificatestothepoorestfamiliesintheLuxorgovernorate,especiallytargetingwidowswhoprovideforchildrenbelow16yearsofage,andpersonswithspecialneeds.

TheSocialSolidarityDirectorate inLuxordeterminedthetargetfamiliesbasedon itsrecordsand itselectedArmantandEsnadistrictsforbeingtheclosesttoBanqueMisr fromwhichthecertificateswerebought.

YoussefMansoursaidthattheinitiativeisapartoftheMansourGroup’sstrategytocontributetosustainabledevelopmentandfindingpromptsolutions forpoverty.HeaddedthatLuxorwasselectedbecause ithasbeenstruckveryhardbythedramaticdeclineintourisminrecentyears.Healsonotedthatitneedsmassiveandcontinuouseffortstocombatpoverty,illiteracy,andothersocialchallengesinordertoriseuptoitsdeservedposition,bothlocallyandglobally.

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p

OUR ENVIRONMENT AND PRODUCT RESPONSIBILITY

d52

Thissectionpresentsourenvironmentalandproductresponsibilityperformance.Wedividedthesectionintotwoparts,dedicatingonepart to eachof the two topics.Wealso structuredour explorationof these two areas around the relevantmaterialGRIperformance,asinthepreviouschapter.

Environment

Our environmental footprint is not among our high impact areas; much of the GRI indicators that cover this area are therefore of moderatetolowmaterialityforus.Mostofouroperationsdonotposeanythreattobiodiversityorendangerlistedspecies,arenotlocatedwithinornearprotectedorrestoredhabitats,andproducelittlenon-recyclablewaste.Moreover,ouroperationsaregenerallynotenergyintensive,nordotheyemitlargequantitiesofCFCsorgreenhousegases.Theaspectsofourenvironmentalperformancethatmightbeofhighmaterialitytoouroperationsare,essentially,ourwasteandtransportationactivities.

Waste

Allofourcompaniesdeploywastemanagementsystemsthatcollecttheirwasteandseparateitbytype.Anexternalcontractor(usuallythesupplieroftheoriginalmaterial)thenbuysthemajorityofthiswastefromus,sincemostofthewastegeneratedactsasinputsinotherindustries.

Thetypeofwastethatweproduceincludes:plasticbottles(whicharesoldtoplasticfactories),paper,wood,dusttobacco,rollingpaper,andunsoldsupermarketcommodities.Wealsoproduceotherproduction-relatedwaste,butinverysmallquantities.Ourindirectwasteincludesthepackagingmaterialthatweuseinourproductionordistribution,mainlypaperandaluminumcans,andplasticbottles.

Todatewemonitortheaggregatewasteinoursupermarketchainsonly;andwecalculatethenumbersintermsofapercentageofsales,ratherthanbyweightandvolume.Wealsodonotmonitortheportionofmaterialsusedthatarerecycledbyusorbyothers.Wehavedevelopedacomprehensivewaste-monitoringframeworkthatisbeingrolledoutoverthenexttwoyears.

Waste Management

MetroandKheirZamanSuccessfullyAdopt100%BiodegradablePlasticBags.

OneofthekeyobjectivesoftheCorporateAffairsDepartmentistoadoptenvironmentallysustainablepracticesintheareasofenergyconsumption,wastemanagement,wateruse,andpaperconsumption,inordertominimizeenvironmentaldegradation.

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Inlinewiththisobjective,theCorporateAffairsDepartment,incooperationwiththeProcurementDepartmentatMetroMarket,begantoexaminewaystominimizeenvironmentaldegradationthroughpracticalapplicationsin2013.Theybeganbylookingattheuseofplasticbagsatall99MetroandKheirZamanstores.Thestores,locatedin12governorates,useapproximately80millionplasticbagsperyear.Accordingly,effortsbegantoconvertallplasticbagstorecyclableplasticbags.

Through cooperationwith SymphonyEnvironmental Ltd., based in theUK, theD2W technologywas adopted to convert old-fashionedplasticbagsinto100%biodegradableplasticbags.TheD2Wmarkwasaffixedonallplasticbagstoencouragecompetitorstoadoptthesametechnologyinordertoreducethecollectiveharmfuleffectsthatplasticshaveontheenvironment.

Future Plans

Wearecurrentlyputtinginplaceanewwaste-monitoringsystemthatmonitorswastebytype,weight,andvolume.Thisshouldsupplyuswithcrucialinformationthatwestilllack.Wearealsomovingtoexpandthiswastemanagementsystemtothewholecompany.Furthermore,wehavebeenofferingproductsthatweremovefromourinventorieswellbeforetheirexpirydatestoouremployeesatheavilydiscountedrates.

Energy

Electricityremainsourprimarysourceofenergy,withallofourcompaniesoperatingonelectricity,andconnectedtothenationalelectricitygrid.OurHayatCompanyistheonlyexception,asitgeneratesallofitselectricityin-housebecauseitoperatesinanareathatlacksaccesstothenationalgrid.Furthermore,toovercomeissuesofblackout,wehavesecuredanumberofgeneratorsforcompaniestooperateonwhenthepowerisout.Whileallofourcompaniesoperateonelectricity,andmanyofthemownandoperateemergencygeneratorstocoverelectricityblackouts,wedon’thavegeneratorsinoursupermarketstores.

Wehaveexpandedourreportingonallofourdirectandindirectenergyconsumption.Westillneedtofurtherexpandtherelevantdatafromourvariousdatabases.WehavealsostartedworkingonreducingourenergyconsumptionbystudyingtheadvantagesofconvertingallourconventionallightstoLED’s.Inaddition,weaggregatemostofthefuelconsumedbythefleetsofourdifferentcompanies,whichrepresentsourlargestenvironmentalimpact.ThefollowingtablesummarizesourfuelconsumptioninEGP.

Fleet Consumption

Company Fleet Diesel Consumption Fleet Gasoline ConsumptionYear 2013 2014 2013 2014

Unit Liters/ Value EGP UNIT VALUE UNIT VALUE UNIT VALUE UNIT VALUE

MID 885,429 972,379 799,727 1,143,025 493,835 1,010,762 468,276 1,050,133

HAYAT 170,689 188,510 148,058 216,056 11,519 20,939 17,821 39,280

Mansour Trading & Distribution 2,547,775 2,818,837 3,024,121 3,975,310 132,155 240,051 132,542 286,791

UPS 13,253 14,579 24,991 36,487 84,342 153,166 78,600 169,776

Metro Markets 1,831,905 2,180,809 2,349,832 3,394,625 484,776 744,766 478,557 883,849

Total 5,449,051 6,175,114 6,346,729 8,765,503 1,206,627 2,169,684 1,175,796 2,429,829

Thetableillustratesourincreasedfuelbill,whichamountstoroughly18%overthepastyear.Thisincreasethisyearwascausedbyanincreaseinthepriceoffuel.

Emissions

OuremissionsaremostlylimitedtothefuelconsumedbyourtransportationfleetsandthefuelusedtogenerateelectricityinourHayatfactory,Inadditiontotheelectricityconsumptionofour99MetroandKheirZamansupermarkets.Wehaveexpandedourmonitoringongreenhousegasemissionscomparedtoourpreviousreport.Thefollowingtablesshowthetotalexpensesforourdiesel,water,andelectricityconsumptionin2013-2014:

54

D i e s e l

Company DieselYear 2013 2013 2014 2014

Units / Value EGP UNIT VALUE UNIT VALUE

MID 40,710 44,780 63,612 101,780

HAYAT 774,737 852,200 536,750 858,800

SECLAM 2,759,600 3,533,651 2,310,000 3,535,360

Mansour Trading & Distribution 10,545 11,600 21,991 35,186

Metro Market 97,940 195,880 41,044 82,089

Total 3,683,532 4,638,111 2,973,397 4,613,215

W a t e r

Company WaterYear 2013 2013 2014 2014


MID 76,616 153,233 47,745 95,489

HAYAT 98 195 126 252

SECLAM 369,404 1,138,863 341,994 1,599,936

Mansour Trading & Distribution 10,244 20,488 22,442 44,885

UPS 6,473 12,947 4,449 8,898

Metro Markets 280,665 701,663 328,318 820,796

Total 744,000 2,027,389 740,625 2,570,256

*It should be noted that Hayat also donates 8,000m3 of itswater to local farmers to be used for agriculturalpurposes. The rest of our companies generally don’t consumemuch water, and typically recycle none.

E l e c t r i c i t y

Company ElectricityYear 2013 2013 2014 2014


MID 6284918 1,759,777 6,082,472 2,189,690

HAYAT 12846 3,597 18,802 6,769

SECLAM 11,443,185 3,297,156 12,311,854 4,544,862

Mansour Trading & Distribution 609,307 170,606 1,392,744 501,387

UPS 443,643 124,220 702,675 252,963

Metro Markets 71,513,899 42,564,728 70,883,346 47,948,045

Total 90,307,798 47,920,084 91,391,893 55,443,716

55

MIDHAYATSECLAMMANSOUR T&DUPSMETRO MARKETS

56

10+1+49+1+1+38 6+1+45+3+1+442014

MIDHAYATSECLAMMANSOUR T&DUPSMETRO MARKETS

2013

Water Consumption Units / Year

740,625Units744,000Units

1+21+74+1+3 2+18+76+2+22014

MIDHAYATSECLAMMANSOUR T&DMETRO MARKETS

2013

Diesel Consumption Units / Year

2,973,397Units3,683,532Units

7+1+13+1+1+77 7+1+13+2+1+7620142013

Electricity Consumption Units / Year

91,391,893Units90,307,798Units

Product responsibility

MansourGroupenforcesallthenecessaryprecautionsinordertoensurethesafetyandqualityofourproducts.

Oneofourcompanies–SeclamDairyFactory–producedacomprehensivequalitypolicydocumentthatdefinedtheinternationalhygienestandardsthatarematerialandapplicabletoSeclam’smanufacturingsites.Thesestandardsfocusedstronglyonminimizinganyrisksofproductcontamination,andensuringthattheproductsmeetthehighstandardsthatcustomersexpectfromanyoftheMansourGroupcompanies,therebyavoidinganymanufacturingdeficienciesthatmightdamagethequalityoftheproductsorthatofthehealthofourcustomers.TheassociatesofSeclamsharetheobjectiveofmanufacturingsafe,wholesome,andhighqualityproducts.Belowaresomeoftheseproductqualitypolicies:

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Premises & Maintenance

•Topreventproductcontaminationandanyadverseimpacts,premises must be located away from environmentallypollutedareas,areassubjecttoflooding,areaspronetopestinfestations, or areas where wastes cannot be effectivelymanaged.Adequatemeasuresmustbeinplacetoprotectthepremisesfromanypotentialcontaminants,andgoodhygienepractices must be maintained. •Thepremisesmustbedesigned inaway so that it canbeeasilycleaned,adequatelyventilated,andhassufficientpestcontrol procedures. Also, staff facilities must be designedand operated in a way that minimizes the risks of productcontamination.The factorymusthaveregularlyupdatedanddocumented cleaning programs. • Theremust be an adequate system for the collection anddisposal ofwastes,whichwill notbeallowed toaccumulatein food handling, storage, or other working areas inside oroutsidethefactory.Definedwasteareashavetobeestablishedandsegregatedfromproductionactivities,andwastedisposalmustmeetlegislativerequirementsandthusbedisposedofbylicensed contractors.

Control of Operation

• Raw, unprocessed material must be segregated fromprocessedproductstoavoidcontamination,andproductsmusthaveanappropriateshelf-lifecontrol,withexpiredmaterialsbeingsegregatedandscrapped.Furthermore,allrawmaterialsmustbepurchasedfromapprovedsuppliersinaccordancetoaVendorAssuranceProgram,andhavetobestored ingoodcondition thatmaintains their quality.

•Forfoodsafety,ariskassessmentprocedure(HACCP)isusedtodefine foodsafetyCriticalControlPoints (CCP).Moreover,recipes’ production operating procedures and specificationshavetobecontrolledandavailableforreferenceinappropriateareasofthesites.

•Environmentalandprocessmonitoringprogramsmustbeinplace to tracemicrobiological contamination.All facilities forheating,cooling,freezing,oranyotherprocessmustalsomeetthespecifiedconditionsforensuringfoodsafety.

Foodsafetychecksareperformedinaccordancetobiological,chemical,andphysicalspecifications,withtransportandstoragequalityspecificationsalsoexistingforallfinishedproducts.Finishedproductsarestoredseparatelyfromrawmaterials,andrejectedproductsorreturnedgoodsarelabeledandstoredseparately.Furthermore,vehiclesthatmoveproductsmustbeappropriatelytemperature-controlled,hygienic,andclean.

Pest Control

Acomprehensivepestmanagementprogramis inplacetogreatlyreducetherisktoproductsfrompests.Monitoringforpestactivityisfrequentandregularlyreviewedandpestcontrolauditsandtreatmentsarerecorded.Incomingrawmaterialsarealsothoroughlycheckedforpests.

Personnel

Eachsitehasqualifiedpersonnelwiththenecessaryeducation,training,background,andexperiencetoensurethatallactivities,includinghygieneandprotectiveclothing,arecorrectlyperformed.Proceduresareestablishedtoidentifytrainingcompetencyrequirementsforallassociatestocarryouttheirresponsibilities.Managersandsupervisorshavesufficientknowledgeof foodhygienetobeabletojudgepotentialrisksandtaketheappropriatepreventativemeasuresandcorrectiveactions,whileensuringthateffectivemonitoringandsupervisionistakingplace.Thisensuresthatallpersonnelenteringmanufacturingareashaveanappropriateleveloftraininginbasicfoodhygieneandcompanyhygieneprocedures.Furthermore,allpersonnelaremadeawareoftheircontributiontothequalityandfoodsafetyofthefinishedproducts;andofthepossibleconsequencesoferrorsorlackofattentiontodetails.

Customer Satisfaction

Ourcustomercareunithasacallnumberdedicatedtoreceivingcustomerfeedbackandcomplaints.Allreceivedcomplaintsareaddressedwithin72hoursof their receipt.Wealso implementotherprocedures toensureourcustomers’ satisfaction, theseincludetheuseofcustomerfeedbackformsandmysteryshoppersatoursupermarketstogatherdataaboutstaffperformance,quality, among other variables. We compile quarterly reports about received complaints, and communicate them to seniormanagementandourgovernancebodyonaquarterlyandyearlybasis.

GRI DISCLOSURE TABLE

k58

ThetablebelowsummarizesMHCFI’sMaterialitypositioninrelationtoeachoftheGRI3.1indicatorsandguidelines.

Indicates an indicator that are Not Material to MHCFI Indicates an indicator that are Material to MHCFI

Disclosureindicatorsarefurtherhighlightedaccordingtothereportinglevelofeachindicator,asfollows:

Not Reported(IndicatesthatarerelevanttoMHCFI,casesthatarecommerciallyconfidential,and/orcases whereMHCFIlacksrelevantinformationatthemomentandiscommittedtoaddressthislackfuturereporting)

Partially Reported(Indicatescaseswhereonlypartoftheindicatormayberelevant,and/orcaseswhere MHCFIcompilessomebutnotallrelevantinformationandisworkingtowardsreportingfullyontheminthe future)

Fully Reported

AlsoseeourDisclosureonManagementApproachonpage14.

STANDARD DISCLOSURES PART I: Profile Disclosures

1. Strategy and Analysis

Profile Disclosure Description Materiality Disclosure Page

number/ referenceLevel of

Reporting

Global Compact Principles

1.1 StatementonSustainabilityfromthemostseniordecision-makeroftheorganization. Pages 5

1.2 Descriptionofkeyimpacts,risks,andopportunities. Pages:5,13-14

2. Organizational Profile



Reporting


2.1 Nameoftheorganization. Pages: 7

2.2 Primarybrands,products,and/orservices. Pages: 7 - 11

2.3Operationalstructureoftheorganization,includingmaindivisions,operatingcompanies,subsidiaries,andjointventures.

Pages:9

2.4 Locationoforganization’sheadquarters. Pages 7 - 11

2.5

Numberofcountrieswheretheorganizationoperates,andnamesofcountrieswitheithermajoroperationsorthatarespecificallyrelevanttothesustainabilityissuescoveredinthereport.

Pages 7 - 11

2.6 Natureofownershipandlegalform. Pages:7–11,25–29

2.7Marketsserved(includinggeographicbreakdown,sectorsserved,andtypesofcustomers/beneficiaries).

Pages: 7 – 11

2.8 Scaleofthereportingorganization. Pages: 18 – 23

2.9 Significantchangesinthereportingperiodregardingsize,structure,orownership. Pages :17-18

59

2.10 Awardsreceivedinthereportingperiod. None

3. Report Parameters



Reporting


3.1 Reportingperiod(e.g.,fiscal/calendaryear)forinformationprovided.

Everytwoyears;SeePages: 17-18

3.2 Dateofmostrecentpreviousreport(ifany). Year 2010;See Pages: 17-18

3.3 Reportingcycle(annual,biennial,etc.) Annual

3.4 Contactpointforquestionsregardingthereportoritscontents.

[email protected]

3.5 Processfordefiningreportcontent. Pages: 17-18

3.6

Boundaryofthereport(e.g.,countries,divisions,subsidiaries,leasedfacilities,jointventures,suppliers).SeeGRIBoundaryProtocolforfurtherguidance.

Pages: 17-18

3.7Stateanyspecificlimitationsonthescopeorboundaryofthereport(seecompletenessprincipleforexplanationofscope).

Pages: 17-18

3.8

Basisforreportingonjointventures,subsidiaries,leasedfacilities,outsourcedoperations,andotherentitiesthatcansignificantlyaffectcomparabilityfromperiodtoperiodand/orbetweenorganizations.

Pages: 17-18

3.9

Datameasurementtechniquesandthebasesofcalculations,includingassumptionsandtechniquesunderlyingestimationsappliedtothecompilationoftheIndicatorsandotherinformationinthereport.Explainanydecisionsnottoapply,ortosubstantiallydivergefrom,theGRIIndicatorProtocols.

Pages: 17-18

3.10

Explanationoftheeffectofanyre-statementsofinformationprovidedinearlierreports,andthereasonsforsuchre-statement(e.g.mergers/acquisitions,changeofbaseyears/periods,natureofbusiness,measurementmethods).

Pages: 17-18

3.11Significantchangesfrompreviousreportingperiodsinthescope,boundary,ormeasurementmethodsappliedinthereport.

None.Pages:17-18

3.12 TableidentifyingthelocationoftheStandardDisclosuresinthereport. Thistable

3.13 Policyandcurrentpracticewithregardtoseekingexternalassuranceforthereport. Pages: 17-18

60

4. Governance, Commitments, and Engagement



Reporting


4.1

Governancestructureoftheorganization,includingcommitteesunderthehighestgovernancebodyresponsibleforspecifictasks,suchassettingstrategyororganizationaloversight.

Pages: 25-33

4.2 Indicatewhetherthechairofthehighestgovernancebodyisalsoanexecutiveofficer. Pages:5,25-33

4.3

Fororganizationsthathaveaunitaryboardstructure,statethenumberofmembersofthehighestgovernancebodythatareindependentand/ornon-executivemembers.

Pages: 25-33

4.4Mechanismsforshareholdersandemployeestoproviderecommendationsordirectiontothehighestgovernancebody.

Pages:33.Boardmeetingsfor shareholders due to the nature of the company’sownershipand employee grievance systembasedattheHRdepartment.

4.5

Linkagebetweencompensationformembersofthehighestgovernancebody,seniormanagers,andexecutives(includingdeparturearrangements),andtheorganization’sperformance(includingsocialandenvironmentalperformance).

Pages:36Nodataregardingcom-pensationsforseniormanagersandexecutiveshasbeencollected

4.6Processesinplaceforthehighestgovernancebodytoensureconflictsofinterestareavoided.

Pages: 25-33Currentlybeingdeveloped.

4.7

Processfordeterminingthequalificationsandexpertiseofthemembersofthehighestgovernancebodyforguidingtheorganization’sstrategyoneconomic,environmental,andsocialtopics.

Pages: 25-33Proprietaryinformation.

4.8

Internallydevelopedstatementsofmissionorvalues,codesofconduct,andprinciplesrelevanttoeconomic,environmental,andsocialperformanceandthestatusoftheirimplementation.

Pages:30-31,57

4.9

Proceduresofthehighestgovernancebodyforoverseeingtheorganization’sidentificationandmanagementofeconomic,environmental,andsocialperformance,includingrelevantrisksandopportunities,andadherenceorcompliancewithinternationallyagreedstandards,codesofconduct,andprinciples.

Pages:5,13-14,29,31-33,57

4.1

Processesforevaluatingthehighestgovernancebody’sownperformance,particularlywithrespecttoeconomic,environmental,andsocialperformance.

None

4.11Explanationofwhetherandhowtheprecautionaryapproachorprincipleisaddressedbytheorganization.

N/A 7

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4.12

Externallydevelopedeconomic,environmental,andsocialcharters,principles,orotherinitiativestowhichtheorganizationsubscribesorendorses.

Pages:31,57 1

4.13

Membershipsinassociations(suchasindustryassociations)and/ornational/internationaladvocacyorganizationsinwhichtheorganization:Haspositionsingovernancebodies;Participatesinprojectsorcommittees;Providessubstantivefundingbeyondroutinemembershipdues;orViewsmembershipasstrategic.

Pages: 31 1

4.14 Listofstakeholdergroupsengagedbytheorganization. Pages: 33

4.15 Basisforidentificationandselectionofstakeholderswithwhomtoengage. Pages: 33

4.16Approachestostakeholderengagement,includingfrequencyofengagementbytypeandbystakeholdergroup.

Pages: 33

4.17

Keytopicsandconcernsthathavebeenraisedthroughstakeholderengagement,andhowtheorganizationhasrespondedtothosekeytopicsandconcerns,includingthroughitsreporting.

Pages: 33

STANDARD DISCLOSURES PART II: Performance Indicators

Economic

Perfor-mance Indicator

Description Materiality Disclosure Page num-ber/ reference

Level of Reporting


Economic performance

EC1

Directeconomicvaluegeneratedanddistributed,includingrevenues,operatingcosts,employeecompensation,donationsandothercommunityinvestments,retainedearnings,andpaymentstocapitalprovidersandgovernments.

Pages: 21-23

EC2Financialimplicationsandotherrisksandopportunitiesfortheorganization’sactivitiesduetoclimatechange

N/A 7

EC3 Coverageoftheorganization’sdefinedbenefitplanobligations. Pages:36

EC4 Significantfinancialassistancereceivedfromgovernment. None

Market presence

EC5Rangeofratiosofstandardentry-levelwagebygendercomparedtolocalminimumwageatsignificantlocationsofoperation.

Pages: 35We pay EGP 1000 as a minimumwage;morethanthenationalmini-mum

6

62

EC6Policy,practices,andproportionofspendingonlocally-basedsuppliersatsignificantlocationsofoperation.

Preference is given to local suppliers as long as qualitystandardsaremet.Percentage of spending on local suppliers not aggregated.

8

EC7

Proceduresforlocalhiringandproportionofseniormanagementhiredfromthelocalcommunityatsignificantlocationsofoperation.

Mostofourstaffandmanagers are locals 8

Indirect economic impacts

EC8

Developmentandimpactinfrastructureinvestmentsandservicesprovidedprimarilyforpublicbenefitthroughcommercial,in-kind,orprobonoengagement.

Pages: 47 – 51

EC9Understandinganddescribingsignificantindirecteconomicimpacts,includingtheextentofimpacts.

We didn’t conduct this exercise yet

Environmental



Level of Reporting


Material

EN1 Materialsusedbyweightorvolume. Datanotavailable 7,8

EN2 Percentageofmaterialsusedthatarerecycledinputmaterials. Datanotavailable 8,9

Energy

EN3 Directenergyconsumptionbyprimaryenergysource. Datanotavailable 7,8

EN4 Indirectenergyconsumptionbyprimarysource. N/A 8

EN5 Energysavedduetoconservationandefficiencyimprovements.

Savingsresultingfromsucheffortsnotyetaggre-gated.

8,9

EN6

Initiativestoprovideenergy-efficientorrenewableenergybasedproductsandservices,andreductionsinenergyrequirementsasaresultoftheseinitiatives.

Page:54.Savingsresultingfromsucheffortsnotyetaggregated.

8,9

EN7 Initiativestoreduceindirectenergyconsumptionandreductionsachieved. N/A 8,9

Water

EN8 Totalwaterwithdrawalbysource. Pages:55-56 8

EN9 Watersourcessignificantlyaffectedbywithdrawalofwater.

UndergroundWaterinSiwa 8

EN10 Percentageandtotalvolumeofwaterrecycledandreused. N/A 8,9

63

Biodiversity

EN11

Locationandsizeoflandowned,leased,managedin,oradjacentto,protectedareasandareasofhighbiodiversityvalueoutsideprotectedareas.

N/A 7,8

EN12

Descriptionofsignificantimpactsofactivities,products,andservicesonbiodiversityinprotectedareasandareasofhighbiodiversityvalueoutsideprotectedareas.

N/A 8

EN13 Habitatsprotectedorrestored. N/A 8

EN14 Strategies,currentactions,andfutureplansformanagingimpactsonbiodiversity. N/A 8

EN15

NumberofIUCNRedListspeciesandnationalconservationlistspecieswithhabitatsinareasaffectedbyoperations,bylevelofextinctionrisk.

N/A 8

Emissions, effluents and waste

EN16 Totaldirectandindirectgreenhousegasemissionsbyweight.

NeedstobecalculatedfromourtransportationFuelConsumption;seePages:53-56

8

EN17 Otherrelevantindirectgreenhousegasemissionsbyweight. N/A 8

EN18 Initiativestoreducegreenhousegasemissionsandreductionsachieved. None 7,8,9

EN19 Emissionsofozone-depletingsubstancesbyweight. N/A 8

EN20 NOx,SOx,andothersignificantairemissionsbytypeandweight. Datanotavailable 8

EN21 Totalwaterdischargebyqualityanddestination. DatanotAvailable 8

EN22 Totalweightofwastebytypeanddisposalmethod.

Awastemonitoringframeworkhasbeendevelopedandwillbeimplemented over the next2years.

8,9

EN23 Totalnumberandvolumeofsignificantspills. Therewerenosuchspillsduringthereportingperiod

8

EN24

Weightoftransported,imported,exported,ortreatedwastedeemedhazardousunderthetermsoftheBaselConventionAnnexI,II,III,andVIII,andpercentageoftransportedwasteshippedinternationally.

Hazardoussubstancesare neither imported nor exportedbythecompany

8

EN25

Identity,size,protectedstatus,andbiodiver-sityvalueofwaterbodiesandrelatedhab-itatssignificantlyaffectedbythereportingorganization’sdischargesofwaterandrunoff.

N/A 8

Products and services

EN26 Initiativestomitigateenvironmentalimpactsofproductsandservices,andextentofimpactmitigation.

Page53.Impactnotaggregated. 7,8,9

64

EN27Percentageofproductssoldandtheirpackagingmaterialsthatarereclaimedbycategory.

Datanotavailable 7,8,9

Compliance

EN28

Monetaryvalueofsignificantfinesandtotalnumberofnon-monetarysanctionsfornon-compliancewithenvironmentallawsandregulations.

None 8

Transport

EN29

Significantenvironmentalimpactsoftrans-portingproductsandothergoodsandmate-rialsusedfortheorganization’soperations,andtransportingmembersoftheworkforce.

Pages:54-56 8

Overall

EN30 Totalenvironmentalprotectionexpendituresandinvestmentsbytype. Data not aggregated 7,8,9

Social: Labor Practices and Decent Work



Level of Reporting


Employment

LA1Totalworkforcebyemploymenttype,employmentcontract,andregion,brokendownbygender.

Pages: 35-44

LA2Totalnumberandrateofnewemployeehiresandemployeeturnoverbyagegroup,gender,andregion.

Pages: 35-44 3,6

LA3

Benefitsprovidedtofull-timeemployeesthatarenotprovidedtotemporaryorpart-timeemployees,bysignificantlocationsofoperations.

Pages: 35-44 6

LA15 Returntoworkandretentionratesafterparentalleavebygender Data not aggregated 1,3

Labor/management relations

LA4 Percentageofemployeescoveredbycollectivebargainingagreements. None 1,3

LA5Minimumnoticeperiod(s)regardingsignifi-cantoperationalchanges,includingwhetheritisspecifiedincollectiveagreements.

N/A 3

Occupational health and safety

LA6

Percentageoftotalworkforcerepresentedinformaljointmanagement-workerhealthandsafetycommitteesthathelpmonitorandadviseonoccupationalhealthandsafetyprograms.

Involvement not moni-toredsystematically 1

LA7

Ratesofinjury,occupationaldiseases,lostdays,andabsenteeism,andnumberofwork-relatedfatalitiesbyregion,andbygender.

Page 42 1,2

65

LA8

Education,training,counseling,prevention,andrisk-controlprogramsinplacetoassistworkforcemembers,theirfamilies,orcom-munitymembersregardingseriousdiseases.

Notmonitored 1

LA9 Healthandsafetytopicscoveredinformalagreementswithtradeunions. N/A 1

Training and education

LA10 Averagehoursoftrainingperyearperemployeebygenderandemployeecategory. Pages: 40-42 1

LA11

Programsforskillsmanagementandlifelonglearningthatsupportthecontinuedemployabilityofemployeesandassisttheminmanagingcareerendings.

Pages: 40-42 1

LA12Percentageofemployeesreceivingregularperformanceandcareerdevelopmentreviews.

100%ofemployeesreceive performance appraisals.70%receiveannualreviews,and30%receivequarterlyreviews.

1

Diversity and equal opportunity

LA13

Compositionofgovernancebodiesandbreakdownofemployeespercategoryaccordingtogender,agegroup,minoritygroupmembership,andotherindicatorsofdiversity.

Pages 44 -43 13,6

Equal remuneration for women and men

LA14Ratioofbasicsalaryandremunerationofmentowomenbyemployeecategory,bysignificantlocationofoperations.

Salaryislinkedtojob;genderdoesn’tinfluencesalaries

1,3,6

Social: Human Rights



Level of Reporting


Investment and procurement practice

HR1

Percentageandtotalnumberofsignificantinvestmentagreementsandcontractsthatincludeclausesincorporatinghumanrightsconcernsorthathaveundergonehumanrightsscreening.

N/A 1,2,3,4,5,6

HR2

Percentageofsignificantsuppliers,contractors,andotherbusinesspartnersthathaveundergonehumanrightsscreening,andactionstaken.

Altogether5firmsareN/A 1,2,3,4,5,6

HR3

Totalhoursofemployeetrainingonpoliciesandproceduresconcerningaspectsofhumanrightsthatarerelevanttooperations,includ-ingthepercentageofemployeestrained.

N/A 1,2,3,4,5,6

Non-discrimination

HR4 Totalnumberofincidentsofdiscriminationandcorrectiveactionstaken.

Nosuchincidentswerereported during the reportingperiod

1,2,6

66

Freedom of association & collective bargaining

HR5

Operationsandsignificantsuppliersidentifiedinwhichtherighttoexercisefreedomofassociationandcollectivebargainingmaybeviolatedoratsignificantrisk,andactionstakentosupporttheserights.

Collectivebargainingflowswithease 1,2,3

Child labor

HR6

Operationsandsignificantsuppliersidentifiedashavingsignificantriskforincidentsofchildlabor,andmeasurestakentocontributetotheeffectiveabolitionofchildlabor.

MHCFI cannot employ children given the nature ofbusinessandEgyptianlaborlawsbywhichweabide.

1,2,5

Forced and compulsory labor

HR7

Operationsorsignificantidentifiedashavingsignificantriskforincidentsofforcedorcompulsorylabor,andmeasurestocontributetotheeliminationofallformsofforcedorcompulsorylabor.

N/A 1,2,4

Security practice

HR8

Percentageofsecuritypersonneltrainedintheorganization’spoliciesorproceduresconcerningaspectsofhumanrightsthatarerelevanttooperations.

N/A 1,2

Indigenous rights

HR9Totalnumberofincidentsofviolationsinvolvingrightsofindigenouspeopleandactionstaken.

N/A 1,2

Assessment

HR10Percentageandtotalnumberofoperationsthathavebeensubjecttohumanrightsreviewsand/orimpactassessments.

N/A 1,2

Remediation

HR11Numberofgrievancesrelatedtohumanrightsfiled,addressedandresolvedthroughformalgrievancemechanisms.”

None 1,2

Social: Society



Level of Reporting

Level of Reporting

Community

SO1Percentageofoperationswithimplementedlocalcommunityengagement,impactassessments,anddevelopmentprograms.

Pages: 47-51

SO9 Operationswithsignificantpotentialoractualnegativeimpactsonlocalcommunities. None

SO10

Preventionandmitigationmeasuresimplementedinoperationswithsignificantpotentialoractualnegativeimpactsonlocalcommunities.

Noneneeded

67

Corruption

SO2 Percentageandtotalnumberofbusinessunitsanalyzedforrisksrelatedtocorruption.

Monitoring not conducted systematically 10

SO3Percentageofemployeestrainedinorganization’santi-corruptionpoliciesandprocedures.

None;Full policy and accompa-nying strategy currently beingdeveloped

10

SO4 Actionstakeninresponsetoincidentsofcorruption.

Nonewererecordedduringthereportingperiod.

10

Public policy

SO5 Publicpolicypositionsandparticipationinpublicpolicydevelopmentandlobbying. Pages: 31-33 1,10

SO6Totalvalueoffinancialandin-kindcontributionstopoliticalparties,politicians,andrelatedinstitutionsbycountry.

None;The company doesn’t fundanypoliticalorgani-zations

1,10

Anti-competitive behavior

SO7Totalnumberoflegalactionsforanti-competitivebehavior,anti-trust,andmonopolypracticesandtheiroutcomes.

None 1,10

Compliance

SO8Monetaryvalueofsignificantfinesandtotalnumberofnon-monetarysanctionsfornon-compliancewithlawsandregulations.

None

Social: Product Responsibility



Level of Reporting

Level of Reporting

Customer health and safety

PR1

Lifecyclestagesinwhichhealthandsafetyimpactsofproductsandservicesareassessedforimprovement,andpercentageofsignificantproductsandservicescategoriessubjecttosuchprocedures.

Notanalyzed 1

PR2

Totalnumberofincidentsofnon-compliancewithregulationsandvoluntarycodesconcerninghealthandsafetyimpactsofproductsandservicesduringtheirlifecycle,bytypeofoutcomes.

None 1

Product and service labeling

PR3

Typeofproductandserviceinformationrequiredbyprocedures,andpercentageofsignificantproductsandservicessubjecttosuchinformationrequirements.

100%ofrelevantproductsarelabeledaccordingtothe requirements of the EgyptianOrganizationForStandardization&Quality.

8

PR4

Totalnumberofincidentsofnon-compliancewithregulationsandvoluntarycodesconcerningproductandserviceinformationandlabeling,bytypeofoutcomes.

None 8

68

PR5Practicesrelatedtocustomersatisfaction,includingresultsofsurveysmeasuringcustomersatisfaction.

Pages: 57

Marketing communications

PR6

Programsforadherencetolaws,standards,andvoluntarycodesrelatedtomarketingcommunications,includingadvertising,pro-motion,andsponsorship.

We have developed an in-ternalTobaccopromotionstandardthatbanstarget-ingchildren,non-smok-ers,ortheprovisionoffreesamples.

PR7

Totalnumberofincidentsofnon-compliancewithregulationsandvoluntarycodesconcerningmarketingcommunications,includingadvertising,promotion,andsponsorshipbytypeofoutcomes.

None.Anymarketingeffortisapprovedbythe Legal and Corporate AffairsDepartmentstoensurecompliance.

Customer privacy

PR8Totalnumberofsubstantiatedcomplaintsregardingbreachesofcustomerprivacyandlossesofcustomerdata.

N/A 1

Compliance

PR9

Monetaryvalueofsignificantfinesfornon-compliancewithlawsandregulationsconcerningtheprovisionanduseofproductsandservices.

None 2

69

k

For more than half a century, the Mansour name has continued to be known and trusted as a leader in business. Today, we are proud to carry on that tradition, and proud of our accomplishments, both commercial and social.

Al Mansour Holdings Company is not just a business, but a family, and we continue to forge ahead as a family business, embracing not only what’s good for business, but what’s good for our larger family of employees, and ultimately, what’s good for the generations of Egyptians to come.

HEADQUARTERS

Zahraa El Maadi, Industrial Zone, P.O.Box 97New Maadi 11435, Cairo, Egypt.Tel: + (202) [email protected]

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