Annual Report 2020rayacorp.com/wp-content/uploads/IR/annual-report-2019.pdf · 2020. 11. 17. · $...
Transcript of Annual Report 2020rayacorp.com/wp-content/uploads/IR/annual-report-2019.pdf · 2020. 11. 17. · $...
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ANNUAL
G R E A T E R O P P O R T U N I T I E S , B I G G E R C H A L L E N G E S
REPORT
2019
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RAYA HOLDING FOR FINANCIAL INVESTMENT Raya Holding for Financial Investments Headquartered in Cairo, Egypt, yet mandated to operate worldwide, Raya Holding is an ambitious investment conglomerate managing
outsourcing, contact centers, smart buildings, consumer electronics, food and beverage,
ADDRESS:Headquarter
Raya Holding Investor Relations Team:Ahmed Nour Eldin Hassan
Director Head of Corporate Finance, Investments & Financial Planning | Corporate &
Aser Mokhtar
Mohamed Nazir Azmirly
Reuters Code:
EXECUTIVE SUMMARY
D E A R VA LU EDSHAREHOLDERS
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MEDHAT KHALIL
CHAIRMAN’S MESSAGE
In 2019, Raya marked a very special milestone as we celebrated
in our commitment to empower every individual and every business
investments are now in a better position to generate
EGP 9 billion
value of nearly EGP 550 million
by various institutional investors, allowed us to
R A Y A A N N U A L R E P O R T 2 0 1 94
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FINANCIAL HIGHLIGHTS
2019, BIGGER CHALLENGES, GREATER OPPORTUNITIES
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Revenue VS. GP
Revenue RevenueGross Profit Operating Income
Revenue VS. Operating Income
1,202 1,471 1,665
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6,74
5
7,91
0
8,76
8
462 497 381
6,74
5
7,91
0
8,76
8
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8,768 1,665 605Revenue Gross Profit EBITDA
5,699
893
448
6,7451,202
6017,910
1,471 674
8,7681,665
605
496 (59) (85)CAPEX Net Cash Flow From Operations Net Income Before Minority
308
103
300
23489
496
(85)-
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(117)(59)
FINANCIAL HIGHLIGHTS
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BariqITTrade Contact Center Buildings & Retail
4
REVENUE SPLIT YE 2018 (%)
REVENUE SPLIT YE 2019 (%)
13%EGP 613 MnY-O-Y GP GrowthEnding Cash Balance
11%4 Year Revenue CAGR
FINANCIAL HIGHLIGHTS
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distribution slowdown in addition to margin dilutions across various product segments
portfolio companies: AMAN Financial
and AMAN For E - Payments
The Smart Buildings & Retail business
BariQ
Ostool’s
Raya Holding continues its commitment
maintaining a leading market position across
Raya Contact Center’s revenue
operations due to a region wide economic
Raya IT as
management was successful in leveraging its
The FMCG
Raya Foods
supply process in addition to unwinding
STRATEGIC OVERVIEW
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Cash Dividends
Ex. DatePayment
DateDividendAmount
Coupon No.
4
SHAREHOLDER INFORMATION
SHAREHOLDERS STRUCTURE
Free Float
Financial Holding
SHAREHOLDERS BY GEOGRAPHY
Egypt
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20+ EGP 1.07 B 20% 3.39%
contact centers, smart buildings, consumer electronics, food and beverage, land transport,
Years Issued & Paid Capital
Brokerage
Egyptian Company for Development
412,000+ 12 5
CORPORATE OVERVIEWRAYA AT A GLANCE
Different Countries
LINESDIFFERENT CONTINENTS
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A MARKET LEADER NO MATTER WHERE WE ARE
a strong commitment to quality and an
WE PROVIDE OUR WORLD-CLASS SERVICE THROUGH:
• Focusing on Client and end user
• Recruiting and retaining competent and
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VISION
MISSION
to empower every person and every line of business
CORPORATE OVERVIEW
RAYA HOLDING FOR FINANCIAL INVESTMENTS | GROUP OF COMPANIES
TRADE & DISTRIBUTION
INFORMATION TECHNOLOGY
CALL CENTER OUTSOURCING
SMART BUILDINGS / RESTAURANTS FMCG
INDUSTRIAL / LOGISTICS
NON-BANKING FINANCIAL SERVICES
OTHER INVESTMENTS
RAYA DISTRIBUTION
RAYA INTEGRATION
RAYA CONTACT CENTER
RAYA SMART BUILDINGS
RAYA FOOD TRADING BARIQ
AMAN FINANCIAL SERVICES
AAA (INSURANCE)
20%
RAYA ELECTRONICS RAYA NETWORKS
RAYA BUILDING MANAGEMENT
RAYA MAINT. & BUILD.
OPERATIONSRAYA FOODS RAYA ADVANCED MANUFACTURING
AMAN E-PAYMENTS
SMART VILLAGE3.39%
RAYA TECH DISTRIBUTION
RAYA INTERNATIONAL
SERVICESC3 EL BOYOOT EL ARABIA
MAKARONI POLSKIE
(POLAND)20%
OSTOOL LOGISTICS
66.7%
AMAN MICROFINANCE
BEST SERVICENIGERIA RAYA GULF
RAYA VENTURE INVESTMENTS
RAYA RESTAURANTS
RAYA SOCIAL MEDIA RAYA SAUDI
RAYA DATA CENTER
G R E A T E R O P P O R T U N I T I E S , B I G G E R C H A L L E N G E S
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EXCELLENCE
aspect of our various lines of
unbending will to succeed, Raya is committed
itself according to international quality
CUSTOMER FOCUSRaya is committed to offering
RESPECT FOR PEOPLERespect for people is a deeply
people are devoted employees,
TEAMWORK
We are diligent in continually promoting
CORPORATE OVERVIEW
aggressively penetrate new markets is only possible
drive our progress, and empower us to carve out
conglomerate, in terms of employees, revenue,
OUR VALUES
R A Y A A N N U A L R E P O R T 2 0 1 9 G R E A T E R O P P O R T U N I T I E S , B I G G E R C H A L L E N G E S
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RAYA MILESTONES
19992000 2003 2006
2001 20082005
MERGER
seven national IT companies
Holding, addressing a gap between multinational market players and local
DIVERSIFICATION
strategy was to diversify into more IT and IT-related
GOING PUBLIC EXPANSION
STREAMLINING
entailed merging smaller
business: Information
GOING INTERNATIONAL
international opportunities,
REALIGNING RESOURCES
appointed to lead
20152010 2017 201920162013 2018
DEVELOPING MARKET RESILIENCE
economy, compounded by volatile political conditions, Raya Holding managed to solidify strategies and
business, carrying out its
GROUNDWORK FOR FUTURE SUCCESSRaya Holding
EXPANSION IN FINANCIAL SERVICES SECTOR
PORTFOLIO DIVERSIFICATION
commitment to a
strategy, Raya Holding
subsidiaries, penetrating
UNLOCKING NEW MARKETSRaya signed a contract
manufacturer, to import
in Egypt to run on
CONQUERING NEW INDUSTRIES
to invest in modern
for Integrated Food
RAYA HOLDINGCompleted First
GROWING THE INDUSTRIAL CAPACITY
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CORPORATE GOVERNANCE
CORPORATE GOVERNANCE FRAMEWORK
1. INTRODUCTIONCompany
G R E A T E R O P P O R T U N I T I E S , B I G G E R C H A L L E N G E S
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2. RAYA HOLDING’S CORPORATE GOVERNANCE FRAMEWORK2.1 Raya Holding’s Corporate Governance Framework
revolves around the following elements:2.1.1 An Effective, independent Board of Directors
2.1.2 A Proactive Audit committee
2.1.3 A Remuneration committee aligning executive compensation to shareholder value
2.1.4 A Nomination committee ensuring effective governance of the board
2.1.5 A relevant Code of ethical behavior
2.1.6 Clear, enforced policies and procedures
manuals
2.1.7 An objective, well-resourced internal audit function
Procedures
2.1.8 Independent, effective External Audit
Center presents, in all material respects, its financial position and
2.1.9 Transparent disclosure, effective communication and systems that ensure effective measurement and accountability
2.1.10 Corporate Citizenship
2.2 Each of the above elements is an essential component of Raya Holding’s governance model, but none is sufficient independently. Raya Holding’s governance relies on the independence of the above elements.
CORPORATE GOVERNANCE
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INTRODUCTION•
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BOARD OF DIRECTORS’ CHARTER
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1. CORPORATE GOVERNANCE MISSION
1.1 Corporate governance
Directors, and management interact
1.2 Raya Holding
1.3 Incorporating a sound corporate governance framework is one of
is committed not only to meeting legal and regulatory governance
good corporate governance is not
1.4 Raya Holdingprinciples of good corporate governance to be:
governance and related
implementing approved policies
actions or decisions require Board
Responsibility must be attributed
2. BOARD OF DIRECTORS AND MANAGEMENT
2.1 The Board of Directors manages
2.2 The Board of Directors’ primary responsibilities are to provide
2.3 The Board will provide effective
interests of its diverse constituencies, including its clients, employees,
2.4 In all actions taken by the Board,
2.5 In discharging that obligation,
2.6 Management
2.7 The Board’s communication to management
3. STRATEGIC PLANNING P
ROCESS:
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3.1 The Board will approve and oversee
strategies and will review and
3.2 In its strategy document
3.3 A high-level overview strategies will be communicated
3.4 The Board
3.5 The Board is also responsible
3.6 The Board
3.7 Board members
3.8 The Board must independently
and initiate management action on
3.9 The Board,
4. BOARD COMPOSITION:4.1 Good governance principles require
independence, transparency, and
4.2 Criteria for CompositionBoard
4.3 One of the Board’s most important responsibilities is identifying, evaluating, and selecting candidates
4.4 The Committee will seek members from diverse professional
4.5 Directors
degree of responsibility, be leaders
4.6 The factors to be consideredCommittee in its review of potential
4.7 The application
and cannot be measured in any
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7.2 Frequency of Meetings:
7.3 Board Committees:
corporate governance rules,
well as qualifications for committee
committee member appointment and removal, committee structure
5. ATTENDANCE AT MEETINGS:
5.1 Directors
Board meetings, and meetings of committees and subcommittees on
time needed and meet as frequently
5.2 Information
conducted at a Board or committee
5.3 The Chairman calendar of standard agenda items
member is free to suggest items for
5.4 All Board members are encouraged
6. CONDUCT OF MEETING:6.1 The Chairman
degree of formality required at
following general rules will apply:
6.2 The Chairman
6.3 The Chairman will retain sufficient
6.4 The Chairmandecisions are properly understood
6.5 The Chairmandecisions and debate are completed
7. QUORUM OF THE BOARD: 7.1 A meeting of the Board will not be
valid unless attended by a minimum
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committee meetings consistent
committee and senior management,
committees as necessary or
Board of Directors may meet and
Questions arising at any meeting
7.4 Board Operations:
7.4.2.1 The Chairman of the Board is expected to fulfill the following responsibilities:
7.4.2.1.1 Ensure that the Board provides leadership and vision to the Company;
7.4.2.1.2 Ensure that the Board is participating in setting the aims, strategies and policies of the Company;
7.4.2.1.3 Ensure that there is adequate monitoring of the pursuit and attainment of the goals and aims of the Company;
7.4.2.1.4 Direct the Board discussions to effectively use time to address the critical issues facing the Company;
7.4.2.1.5 Ensure that Directors are enabled and encouraged to play their due role in the meetings;
7.4.2.1.6 Ensure that Directors have adequate opportunities to express their views;
7.4.2.1. Ensure that Directors are provided with sufficient and timely information;
7.4.2.1.8 Ensure that minutes properly reflect decisions; and
7.4.2.1.9 Uphold this Board of Directors Charter.
7.5 Evaluation of Board Performance:
conduct an annual review of Board
corporate governance rules and
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Board and an adequate review of
Directors before accepting being
duties as a Director
8.5 Directors’ Independence:
include independent, non-
8.6 Directors’ Appointment and Succession Planning:
selecting new Directors to replace
Company or its committees is not
an annual evaluation of its own performance as provided in its
7.6 Board’s Responsibility for Disclosure:
of financial and business disclosure
8. DIRECTORSHIP8.1 Selection of Directors:
Nominations Committee is responsible for identifying individuals qualified to become Board members and recommending
8.2 Number of Directors:
of a minimum of five members,
8.3 Term for Directorship:
8.4 Directors’ Responsibilities:
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8.7 Directors’ Orientation:
orientation program for new
presentations by senior management
its significant financial, investment and risk management issues, compliance programs, operations, Code of Business Conduct and
8.8 Directors’ Compensation:
Remuneration Committee and
or indirectly provide or receive compensation for providing accounting, consulting, legal, investment or financial advisory
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AUDIT COMMITTEE
INVESTMENT COMMITTEE
CORPORATE GOVERNANCE
COMMITTEE
REMUNERAT-ION COMMITTEE
recommending qualified directors and committee
BOARD OF DIRECTORS STRUCTURE
is committed to identifying and implementing appropriate corporate governance practices
BOARD COMMITTEES
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Ashraf Kheir El Din Ahmed Khalil Amr El Tawil Mostafa Moarak Yasser Hesham Medhat Khalil
Distribution & Trading
Independent Board
Marc Tohme Sherif Kamel Hamed Shamma Samer El Waziri Malek Sultan Seif Courty
Representative,
Independent Board
Professor of Holding
Fawry
MEMBERS OF THE BOARD
4 4
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EXECUTIVE MANAGEMENT
Ahmed Ibrahim
Ahmed Khalil
Ahmed Refky
Hossam Hussein
Holding
Bassem Megahed
Omar Abdel AzizTamer Badrawi
Usama ZakiMohamed Wahby
Hazem Abdel Hady
Holding
Hisham Abdel Rassoul
Hazem Moghazy
Karim Khalife
Mohamed El Naggar
Gamal Hussien
COMMITTEE MEMBERSHIP
Audit Committee
Name Role
Remuneration Committee
Name Role
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EMPOWERING YOUTH VOCATIONAL SANE3TY PROGRAM
Key Facts & Statistics
• 161readiness training
• 120 • 81% employment rates
ROBOTICS COMPETITION
CORPORATE SOCIAL RESPONSIBILITY
investment portfolio to contribute to
D e v e l o p m e n t
social investments
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ENGAGED & CONNECTEDWITH OUR COMMUNITY
Key Facts & Statistics:
• 125 Raya Corporate • 1500
•
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RAYA HOLDING
smart buildings, food and beverage manufacturing and trading, land transport,
employees, accommodating a wide international customer base from on-ground
BUSINESS REVIEW
RAYA HOLDINGFOR FINANCIALINVESTMENTS
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Revenue
816
907
756
495
# of Clients Retention Rate
75%89% 96% 91% 87% 86%
82 104
83 110
97 103
Average Capacity Utilization
79%70% 72%
80%76%
80%
3,7
40
4,4
54
4,6
30
5,3
81
6,4
48
6,8
68
KEY OPERATIONAL METRICS
Gross Profit Margin
55%
43% 41%39%
270
325
373
319
GP
EBITDA Margin
33%
27%24%
19%
165
200
221
155
EBITDA
Insourcing
Hosting
cing
cing
REVENUE CONTRIBUTION
PER SERVICE
18%
20%
11%
51%
RAYA CONTACT CENTER
markets, Raya Contact Center provides an array of integrated business process outsourcing
RAYACONTACTCENTER
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1.
2.
3. Raya IT also won two prestigious awards
4.
FULL SUITE OF SOLUTIONS
Telecom Solutions
Low Current Solutions
Data Centre Hosting
Voice & Multimedia
Security Solutions
Enterprise Management Solutions
Internet of Things & Digitization
ATM & Self Services
Oracle ERP Solutions
Gross Profit Margin
16% 14% 15%18%
131
181
228
340
GP Revenue
1,931
1,498
1,337
840
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EBITDA Margin
7% 7%9%
60 91 132
190
EBITDA
10%
Data Center
Integration
82%
7%
8%3%
REVENUE BY LINE OF
SERVICEFY2019
RAYA INFORMATION TECHNOL-OGY (RAYA IT)
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center services, enterprise infrastructure
solutions, and enterprise resources planning
banking and telecom sector applications,
ambassadors, representatives of companies
a great opportunity to transform Egypt into
win many prestigious awards including:
RAYAINFORMATIONTECHNOLOGY
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Revenue
3,948
4,060
3,781
3,959
Gross Profit Margin
11%14% 14% 14%
421
511
553
558
GP
REVENUE DRIVERS FY 2019
IT Equipment
47%
14%
27%
11%1%
Electr
Retail
s
Nigeria
31%
6%5%
16%
8%
25%
31%
RETAIL REVENUE
SPLIT
TOTAL REVENUE
SPLIT
RAYA TRADE line of business includes several operating companies including: Raya
Company distributes a strong brand portfolio including Huawei,
RAYA TRADE & DISTRIBUTION
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17
123
202
Revenue
Gross Profit Margin
28%
13%
3%5 16 5
GP
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s
a
een Beans
PRODUCT MIX 63%
11%
5%
4%
17%
Evere
Bulk
BRAND MIX
84%
13%3%
RAYAFOODSRAYA FOODS
Raya Foods now produces premium quality
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GP
Gross Profit Margin
14%13%
30 42 38-
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Revenue
211
337
378
DIVERSE PRODUCT RANGE SUPPORTED BY A STRONG DISTRIBUTION CAPACITY
Distribution Centres
11K sqm 322 20
RAYA FOOD TRADING
includes manufacturing of a wide range of food product categories, distribution for our company-owned food brands “Haneya” including pasta, tomato sauce and fava
facilitating its penetration into new markets
leading brand Tunato, continuing to record
RAYAFOODTRADING
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AMAN FOR E-PAYMENTS was
and banking sectors to provide value-added
AMAN FORE-PAYMENTS
Launched Operations
POS Machines2016 46,000
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AMAN FOR FINANCIAL SERVICES was
AMAN FOR FINANCIAL SERVICES
Total Headcount as at FY 2019
Stores Nationwide as at FY 2019
1,092 250
Gross Profit Margin
24%
19%9%
1 19 35
GPRevenue
405
155
3
Interest
Fees
Automotive
Corporate
Retail Sales
REVENUE CHANNEL
CONTRIBUTION
62%9%
17%
4%8%
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AMAN FOR MICROFINANCE was
clientele of craftsmen, small businesses, and
of loans disbursed grew at a compounded
number of loans grew at a compounded
AMAN FOR MICRO-FINANCE
Financial Performance
116
88.2
22 8.3
Greater Cairo
Delta
Upper Egypt
63%
24%
13%
PROVINCIAL LOAN
DISTRIBUTION
Launched operations
Branches Nationwide
Loan Disbursements
Portfolio principle
Loans Disbursed
Active Loans
2018
55
EGP702mn
EGP324mn
65,697
35,054
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GP
16%
29%
54%
44%
Revenue Raya Restaurants
RAYA RESTAURANTS
RAYARESTAURANTS
74
62
41
18
3 12 33 33
Gross Profit Margin
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RAYASMARTBUILDINGS& RETAILBUSINESS
RAYA SMART BUILDINGS
Revenue
30
43
80
118
Gross Profit Margin
GP
-66%
-5%
36%
31%
(20)
29 31
(2)
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BARIQ
bottle per year from post-consumer PET
applications as well as recycled polyester
Consumption & Production, Quality
effective role in waste management, sustainability and circular economy in middle
global quality standards, and encouraging
for performance, industry recognition and
BARIQ
Revenue
115
162
224
312
Gross Profit Margin
40%
46 42 60 88
GP
27% 28%26%
EBITDA Margin
27%
17% 16%
31 27 36 60
EBITDA
19%
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SERVICE OFFERING
In-Loader Jumbo Glass Delivery
Flat Bed Trucking
Glass A Frame
Grain Delivery
Container Services
Tipper
Cement Silo Distribution
Coal/Pet Coke Stevedoring
Warehousing
Glass Grains
Coal Trading Raw Material/Discharge
Cement
REVENUE BY INDUSTRY(FY 2019)
37%
25%
29%
7%2%
Revenue
205
381
343
377
Gross Profit Margin
50 75 69 77
GP
-
20%20% 20%25%
-
EBITDA Margin
27%
55 80 70 84
EBITDA
21%21%
22%
OSTOOL
OSTOOL is a leading provider of supply
focus on trucking and logistics services,
across various areas of goods transport and services including: Cement, Raw
industrial companies in Egypt, including
continues to improve response time and
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RAYA ADVANCED MANUFAC-TURING (RAYA AUTO) was founded
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ranging from motorcycles, scooters and
known as tuk-tuks in Egypt as well as four-
ranging from assembly, quality, and after-
planned to be made up of local components,
RAYAAUTO
R A Y A A N N U A L R E P O R T 2 0 1 9
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FINANCIAL
G R E A T E R O P P O R T U N I T I E S , B I G G E R C H A L L E N G E S
R E V I E W
2019
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R A Y A A N N U A L R E P O R T 2 0 1 9
TABLE OF CONTENTS
1
3
4
6
7
8
9
G R E A T E R O P P O R T U N I T I E S , B I G G E R C H A L L E N G E S
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TO THE SHAREHOLDERS OF RAYA HOLDING COMPANY FOR FINANCIAL INVESTMENTS (S.A.E)
of RAYA HOLDING COMPANY FOR FINANCIAL INVESTMENTS (S.A.E)
policies and other explanatory notes.
MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS
fraud or error. This responsibility also includes selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.
AUDITOR’S REPORT
R A Y A A N N U A L R E P O R T 2 0 1 9
Translation of consolidated financial statements | Originally issued in ArabicTranslation of consolidated financial statements | Originally issued in Arabic
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AUDITOR’S RESPONSIBILITY
OPINION
RAYA HOLDING COMPANY FOR FINANCIAL INVESTMENTS (S.A.E)
Cairo: 11 March 2020
Mohamed Abu Elkassim
FESAA – FEST
RAA (17553)
CMAR (359)
R A Y A A N N U A L R E P O R T 2 0 1 92
Translation of consolidated financial statements | Originally issued in Arabic
2
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LE
Fixed assets 1,045,071,490 692,047,947 326,322,518 18,685,703 82,078,561 53,122,771 24,479,900
Deferred tax assets 87,538,568 2,329,347,458
1,362,719,026Work in progress 97,996,515
2,006,855,6341,019,018,803
720,000 28,082,237
Cash on hand and at banks 612,965,7035,128,357,918
Total assets 7,457,705,376
1,071,997,595 64,197,233
General reserve 41,935,960 Treasury shares -
Revaluation reserve of available for sale investments 4,552,671(4,579,358)
Retained earnings (139,796,212)(141,045,399)
interest 897,262,490258,350,428
1,155,612,918
75,401,180long term loans 503,118,836
147,214,755725,734,771
39,968,0771,240,575,054
Current portion of long term loans 175,695,310Credit facilities 3,087,277,353
-1,008,671,699
Dividends payable 24,170,1945,576,357,6876,302,092,4587,457,705,376
Medhat Khalil
• •
STATEMENT OF CONSOLIDATED FINANCIAL POSITIONAS OF 31 DECEMBER 2019
R A Y A A N N U A L R E P O R T 2 0 1 9
Translation of consolidated financial statements | Originally issued in Arabic
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STATEMENT OF CONSOLIDATED PROFIT OR LOSSFOR THE YEAR ENDED 31 DECEMBER 2019
LE
Revenues 8,767,984,574
Cost of revenues (7,103,297,418)
GROSS PROFIT 1,664,687,156
General and administrative expenses (886,109,573)
(475,000)
(369,044,375)
(41,327,108)
Reversal of impairment of accounts receivable 15,171,505
(1,930,440)
296,271
Reversal of impairment of other debit balances 381,268,436
OPERATING PROFIT
(396,231,931)
Foreign exchange differences 4,348,697
2,940,649
793,277
828,462
3,130,836
Takaful contribution (20,161,646)PROFITS FOR THE YEAR BEFORE INCOME TAXES AND NON CONTROLLING INTEREST (23,083,220)
(62,019,847)
PROFITS FOR THE YEAR (85,103,067)
(141,045,399)
55,942,332
PROFITS FOR THE YEAR (85,103,067)
Medhat Khalil
•statements.
R A Y A A N N U A L R E P O R T 2 0 1 9
Translation of consolidated financial statements | Originally issued in Arabic
-
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 DECEMBER 2019
2019
LE
PROFITS FOR THE YEAR (85,103,067)
OTHER COMPREHENSIVE INCOME
Translation differences (9,850,040)
Reversal of available for sale investments revaluation (4,666,200)
1,049,895
SUB-TOTAL OF OTHER COMPERHENSIVE INCOME (13,466,345)
TOTAL COMPREHENSIVE INCOME (98,569,412)
R A Y A A N N U A L R E P O R T 2 0 1 96
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-
Up
Cap
italR
eserveG
eneralR
eserveFor Sale
Shares
Net G
ain
Contact
Center
SharesTranslation
Retained
For The
Non-
Interest
Non-
Non-
Interest Total
Transferred to retained earnings and legal reserve
Capital increase from
retained earnings
translation differences
Dividends
controlling interest
Treasury shares
Reserve of investments at fair value
Transferred to retained earnings and legal reserve
controlling interest
translation differences
Dividends
controlling interest
Reserve of investments at fair value
STATEMENT OF CONSOLIDATED CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2019
R A Y A A N N U A L R E P O R T 2 0 1 9
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STATEMENT OF CONSOLIDATED CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2019CASH FLOWS FROM OPERATING ACTIVITIES Note
(23,083,219)
property 196,005,930
(3,130,836)
396,231,931
(2,940,649)
10,829,605
(1,153,345)
25,167,158
(24,782,808)
41,327,108
1,155,316
(15,171,505)
600,454,686
Change in inventory (262,305,400)
Change in projects under construction (62,626,297)
Change in accounts and notes receivable (481,769,995)
Change in prepayments and other debit balances (203,030,331)
Change in advances from customer -
Change in accounts and notes payable 94,257,388
Change in accrued expenses and other credit balances 302,030,587
Change in other long term liabilities 76,592,627
CASH FLOWS PROVIDED FROM OPERATING ACTIVITIES 63,603,265
(135,721,843)
Doubtful Debts 15,115,635
(1,756,100)
NET CASH FLOWS (USED IN) PROVIDED FROM OPERATING ACTIVITIES (58,759,043)
CASH FLOWS FROM INVESTING ACTIVITIES
(291,868,785)
7,043,107
(149,618,997)
3,807,330
NET CASH FLOWS (USED IN) INVESTING ACTIVITIES (430,637,345)
CASH FLOWS FROM FINANCING ACTIVITIES
1,052,929,677
(247,667,011)
447,291,573
Dividends paid (165,813,305)
(40,716,166)
(396,231,931)
5,085,925
NET CASH FLOW PROVIDED FROM FINANCING ACTIVITIES 654,878,762
(9,850,040)
155,632,334
423,502,152
CASH AND CASH EQUIVALENT - END OF THE YEAR 579,134,486
612,965,703
Restricted time deposits (33,831,219)
CASH AND CASH EQUIVALENT- END OF THE YEAR 579,134,484
Translation of consolidated financial statements | Originally issued in Arabic
-
STATEMENT OF CONSOLIDATED CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS31 DECEMBER 2019 1. GROUP BACKGROUND
company has investments in subsidiaries.
Raya Distribution Company
2
R A Y A A N N U A L R E P O R T 2 0 1 9
Translation of consolidated financial statements | Originally issued in Arabic
-
Company 6 Raya Gulf Company
Raya Contact Centre Company*
Company
Raya Restaurants Company
Raya Qatar Company Qatar
20 Raya Tech Distribution Company
22 Raya for Data Centres Company
Raya Contact Centre Gulf
26
Madova Company
Raya for Modern vehicles Company
Raya for advanced manufacturing Company
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
B
2
y **
6
2. BASIS OF CONSOLIDATION SIGNIFICANT ACCOUNTING ESTIMATES
2.1 BASIS OF CONSOLIDATION •
The carrying amount of the holding company’s investment in each subsidiary and the
The amount of those non controlling interests at the date of the original combination.
combination.
•
1. GROUP BACKGROUND (CONTINUED):
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
2.1 BASIS OF CONSOLIDATION:
•similar transactions and other events in similar circumstances.
•
Percentage
Raya Restaurants Company
Raya Contact Centre Company
2.2 SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES
the accompanying disclosures and the disclosure of contingent liabilities at the reporting date.
material adjustment to the carrying amount of the assets or liabilities affected in future years.
assets properties for calculating depreciation. This estimate is determined after considering the expected usage of the asset or physical depreciation of assets. The management periodically
audits and differing interpretations of tax regulations by the Company and the responsible tax
Deferred tax assets are recognised for unused accumulated tax losses to the extent that it is
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
2.2 SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES:
future tax planning strategies.
are indicators that the carrying amounts may not be recoverable. When value in use calculations
generating unit and chooses a suitable discount rate in order to calculate the present value of
3. SIGNIFICANT ACCOUNTING POLICIES
3.1
evaluated by fair value.
3-2
3-3
company’s functional currency.
Transactions in foreign currencies are initially recorded using the exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated using
translated using the exchange rates prevailing at the dates of the initial recognition.
3-4
excess of the cost of the combination of businesses over the company’s interest in the
R A Y A A N N U A L R E P O R T 2 0 1 9
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3-5
Fixed assets are stated at historical cost net of accumulated depreciation and accumulated
3. CANT ACCOUNTING POLICIES (CONTINUED):
Years
Vehicles
Computers
assumptions used to determine the asset’s recoverable amount since the last impairment
3-6
3. SIGNIFICANT ACCOUNTING POLICIES
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
3-7
impairment.
3-8
unless it can be clearly demonstrated that this is not the case.
received from the investee company.
•
•fair value and it includes the direct expenses that are related to them.
•
•
•
•attributable expenses that are related to them.
3. SIGNIFICANT ACCOUNTING POLICIES
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
•
•is carried at cost.
•
3-9
•
value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or the most advantageous market for the asset or liability.
• The fair value of an asset or a liability is measured using the assumptions that market
act in their economic best interest. •
•market bid prices.
•
•
•
observable inputs and minimising the use of unobservable inputs. •
· Level 1
· Level 2
· Level 3
3. SIGNIFICANT ACCOUNTING POLICIES
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
period.
or liability and the level of the fair value hierarchy as explained above.
3-10
RECOGNITION:
DISPOSAL:
•
•end the contract liability that is related to it.
•
condition.
The company is committed to transfer the amount that is collected on behalf of
3. SIGNIFICANT ACCOUNTING POLICIES
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
3-11
inventory and access to its location and its current state.
estimated costs of completion and the estimated costs necessary to make the sale.
occurs.
3-12
of impairment losses.
3-13
3-14 Provision
3-15
The reserve is used upon a decision from the general assembly meeting based on the
3. SIGNIFICANT ACCOUNTING POLICIES
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
cut back.
3-16
Current income tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the tax authority.
3-17
to the company and the revenue can be reliably measured.
• The amount of revenue can be reasonably measured.• • The amount of revenue can be reasonably measured for the degree of completion
• completion.
to the customer.
3. SIGNIFICANT ACCOUNTING POLICIES
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
Dividends
the lease term.
3-18
3-19 3-18 Finance cost
3-20
are approved by the boards of directors.
3-21
objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset and has an impact on the estimated future cash
assumptions used to determine the asset’s recoverable amount since the last impairment
3. SIGNIFICANT ACCOUNTING POLICIES
R A Y A A N N U A L R E P O R T 2 0 1 92 0
Translation of consolidated financial statements | Originally issued in Arabic
-
3-22
3-23
months.
3. SIGNIFICANT ACCOUNTING POLICIES
Translation of consolidated financial statements | Originally issued in Arabic
-
4. FIXED
ASSETS
LandLE
BuildingsLE
VehiclesLE
Furniture
equipment
LE
FixturesLE
Leasehold im
provements
LESw
itchesLE
ComputersLE
Productive assets
LETotalLE
Cost
Transferred from project
under constrictions D
isposals
Translation differences
depreciation
Depreciation for the year
Depreciation of disposals
Translation differences
112,293,913130,258,977
233,688,234 93,243,762
68,373,260118,277,554
14,109,48450,848,910
224,118,0201,045,212,114
112,293,913130,258,977
233,688,23493,221,933
68,373,260118,179,084
14,109,48450,828,585
224,118,0211,045,071,490
- There is a mortgages on the land located in 6
th
the administrative building of Raya group is held.
- due to the loan granted to the company.
-
-
2019LE
(87,439,467)C
ost of revenues(33,859,831)
General and adm
inistrative expenses(41,683,160)
(162,982,458)
2 22 22 22 22 22 2
-
LandLE
LEV
ehiclesLE
LELE
Leasehold
LELE
LEassets
LE
TotalLE
Cost
Transferred from project
under constrictions
Disposals
Translation differences
Depreciation for the year
Depreciation of disposals
Translation differences
Com
pany’s assets
44,354,26397,010,464
200,167,26669,617,151
74,930,80895,331,518
6,913,67647,240,321
154,224,124789,789,591
4. FIXED
ASSETS :
- There is a mortg
ages on the land located in 6
th
- Com
pany d
ue to the loan granted to the com
pany.
- -
2018LE
63,897,067C
ost of revenues
24,690,657G
eneral and administrative expenses
31,669,795
120,257,519
R A Y A A N N U A L R E P O R T 2 0 1 9
Translation of consolidated financial statements | Originally issued in Arabic
-
Land Leasehold Total
LE LE LE LE
Depreciation of the year
112,895,877 573,719,179 5,432,891 692,047,947
4 INVESTMENT PROPERTY
5 PROJECTS UNDER CONSTRUCTION
LE LE
324,345,461
1,977,057
326,322,518
6-1 PROJECTS UNDER CONSTRUCTION FIXED ASSETS
LE LE
232,425,410
139,788,725
85,531,289 Transferred from other debit balances
(133,399,963)
324,345,461
R A Y A A N N U A L R E P O R T 2 0 1 9
Translation of consolidated financial statements | Originally issued in Arabic
-
6-1 PROJECTS UNDER CONSTRUCTION FIXED ASSETS:
2019LE
-
12,832,041
15,568,831
34,427,759 Raya for Data Centres Company
76,623,671 Raya Distribution Company
47,175
2,113,509
93,058,679
2,040,214
87,609,582
24,000
-
324,345,461
The project under construction balance for Raya restaurants represents the cost of preparation of the restaurants.
The projects under construction for Raya for Canned Foods represents the cost of preparation and restructuring the factory of the company.
The balance of the projects under construction of Raya for manufacturing and logistic
R A Y A A N N U A L R E P O R T 2 0 1 9
Translation of consolidated financial statements | Originally issued in Arabic
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6-2 PROJECTS UNDER CONSTRUCTION INVESTMENT PROPERTIES
2019LE
63,110,535
9,830,272
(70,963,750) Transferred to investment property during the year
1,977,057
2019LE
1,977,057
1,977,057
- value of the payment under the account of the improvements of an administrative building in the central hub at 6th
6 INTANGIBLE ASSETS
LE
Cost
59,152,611
3,106,617
Disposals during the year (14,498)
62,244,730
(34,760,531)
(8,798,496)
(43,559,027)
18,685,703
-
R A Y A A N N U A L R E P O R T 2 0 1 92 6
Translation of consolidated financial statements | Originally issued in Arabic
-
LE
6,019,341
Raya Contact Centers Company 3,160,166
33,236,748
26,582,777
1,926,942
2,626,725
32,139,604
893,048
436,854
23,127,622
(48,071,266)
82,078,561
8 INVESTMENT IN ASSOCIATES
percentage
LE
995,523
19.39 52,127,248
53,122,771
Cost Retained Balance
LE LE LE LE
449,048 (95,525) 995,523
11,483,480 3,036,174 52,127,248
11.932.528 2,940,649 53,122,771
7 GOODWILL
R A Y A A N N U A L R E P O R T 2 0 1 9
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Share
assets assetscapital and
Company for
Makarony
10 AVAILABLE FOR SALE INVESTMENTS
LE
14,314,250
Quoted shares at stock market 10,165,650
24,479,900
measured.
LE
Cost of investment
10,165,650
R A Y A A N N U A L R E P O R T 2 0 1 9
Translation of consolidated financial statements | Originally issued in Arabic
-
11 INVENTORY
2019
LE
799,293,310
40,379,873
240,613,685
53,875,658
in transit 55,601,677
Canned foods 55,593,935
Food and restaurants accessories 3,010,429
160,560,865
26,142,553
29,734,818
1,997,321
1,466,804,124
(50,209,440)
(53,875,658)
1,362,719,026
LE
Charged during the year
Charged during the year
50,209,444
-
R A Y A A N N U A L R E P O R T 2 0 1 9
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12 ACCOUNTS AND NOTES RECEIVABLE
2019
LE
1,291,815,317
703,144,982
93,316,423
2,088,276,722
(81,421,088)
2,006,855,634
LE
Charged during the year
Reversal of impairment during the year
Charged during the period 41,327,107
(15,171,505)
(15,115,635)
81,421,088
days to 60 days days Due nor Total
49,745,609 76,743,105 107,760,991 488,918,251 568,647,361 1,291,815,317
R A Y A A N N U A L R E P O R T 2 0 1 9
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13 PREPAYMENTS AND OTHER DEBIT BALANCES
LE
119,272,143
23,413,994
263,714,178
25,949,593
264,256,273
96,156,054
12,346,673
3,821,681
Governmental authorities receivables 74,834,069
46,739,984
88,514,161
1,019,018,803
LE
555,990,767
463,028,036
1,019,018,803
*
decree relating to imposing fees against additional services. Raya Distribution Company one
R A Y A A N N U A L R E P O R T 2 0 1 9
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14 SHARE BASED COMPENSATION
LE
720,000
720,000
to sell to granting free shares to create competition atmosphere to encourage creativity and
•
member.
•
R A Y A A N N U A L R E P O R T 2 0 1 9
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15 CASH ON HAND AND AT BANKS:
LE
Cash on hand 4,634,579
199,056,733
Foreign currency 31,070,490
203,429,347
Foreign currency 28,882,354
145,892,200
612,965,703
*
•
balance of restricted time deposit against letters of guarantee and letters of credit as of
•
•Company.
•
•
•
16 CAPITAL
LE
5,000,000,000
1,071,997,595
214,399,519
•
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
resulting from the increase shall be distributed free of charge to the shareholders by one
•
procedures for the rules of listing and delisting of securities in the stock exchange issued by
R A Y A A N N U A L R E P O R T 2 0 1 9
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17 LONG TERM LOANS
LE
175,695,310
503,118,836
678,814,146
2019
LE
(1) 480,263,353
(2) -
(3) 7,003,874
(4) 14,210,214
(5) 11,787,197(6)
ny 8,208,943
(7) 106.046.693
(8) 10,137,240
(9) 29,951,895
(10) 11,204,737
678,814,146
(1)
LE
52,356,481
427,906,872
480,263,353
R A Y A A N N U A L R E P O R T 2 0 1 9
Translation of consolidated financial statements | Originally issued in ArabicTranslation of consolidated financial statements | Originally issued in Arabic
-
B- Finance lease contracts
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
17 LONG TERM LOANS (CONTINUED):
(1)
administrative building in 6th
administrative building in 6th
administrative building in 6th
Group administrative building in 6th
Group administrative building in 6th
Group administrative building in 6th
R A Y A A N N U A L R E P O R T 2 0 1 9
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17 LONG TERM LOANS (CONTINUED):
Co
•
•
Group administrative building in 6th
•
•
•
•building a factory of Raya advanced technology in 6th
•a factory For Raya advanced technology in 6th
•building a factory in 6th
•
•
• st
R A Y A A N N U A L R E P O R T 2 0 1 9
Translation of consolidated financial statements | Originally issued in Arabic
-
C
•
•
•
(2)
(3) •
•
•
date
•
amounted
17 LONG TERM LOANS (CONTINUED):
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
(4)
(5) a
(6)
(7)
(8)
(9) asing company to Finance
17 LONG TERM LOANS (CONTINUED):
R A Y A A N N U A L R E P O R T 2 0 1 9
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(10)
18 PROVISONS
LE
32,047,916
Charged during the year* 10,829,606
(1,756,100)
(1,153,345)
39,968,077
•
•
•
LE
Claims provision 22,816,546
Warranty provision 519,142
11,192,439
5,439,950
39,968,077
19 ACCOUNTS AND NOTES PAYABLE
LE
1,180,148,185
60,426,869
1,240,575,054
17 LONG TERM LOANS (CONTINUED):
R A Y A A N N U A L R E P O R T 2 0 1 9
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-
20 CREDIT FACILITIES
LE
Raya Distribution Company 1,323,190,950
635,001,454
40,690,215
Raya Contact Centers Company 9,246,461
223,552,797
Raya Tech Distribution -
27,869
196,019,546
Raya for Data Centres Company 6,018,801
85,812,937
5,013,153
361,923
2,662,175
132,974,535
379,306,657
47,397,880
3,087,277,353
21 ACCRUED EXPENSES & OTHER CREDIT BALANCES
2019LE
307,717,180
211,749,390
283,952,010
107,795,766
97,457,353
1,008,671,699
R A Y A A N N U A L R E P O R T 2 0 1 9
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22 DIVIDENDS PAYABLE
2019LE
24,170,194
24,170,194
23 A- REVENUES ACCORDING TO TYPE:
LE
Devices and goods distribution revenue 4,547,450,645
Transportation service revenue 377,154,935
1,860,185,898
Call Centre service revenue 815,254,769
117,672,377
Restaurant revenue 73,840,261
333,682,658
Canned foods revenue 377,639,109
201,689,577
Vehicles manufacturing revenue 57,351,191
6,063,154
8,767,984,574
23 B- REVENUES ACCORDING TO CURRENCY:
LE
6,159,354,876
Revenues in Foreign Currency 2,608,629,698
8,767,984,574
R A Y A A N N U A L R E P O R T 2 0 1 9
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24 COST OF REVENUES
LE
Cost of martials used in the production (232,682,497)
Devices and goods distribution cost (3,957,574,101)
(1,759,789,976)
Transportation service cost (233,624,494)
(741,459,149)
(118,050,151)
Finance cost (25,471,722)
(34,645,328)
(7,103,297,418)
25 INCOME TAX
LE
Current income tax (100,774,962)
Deferred income tax 38,755,115
(62,019,847)
26 RELATED PARTY TRANSACTIONS
R A Y A A N N U A L R E P O R T 2 0 1 9
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27 SEG
EMEN
T REPO
RTING
Year End
edTrad
e and
sectorsector
Call
centers sector
Finance lease
sector
International services
sector
Land
Transportation
sectorsector
sectorFinancial Services
sector
canned
sector
Vehicles
sector
Other
activitiesC
onsolidated
2019
LELE
LELE
LELE
LE
LE
LE
LE
LE
LELE
LELE
Revenues
Cost
Depreciation
and
the year
Total
Trade and
sectorsector
Call
centers sector
Finance lease
sector
International services
sector
Land
Transportation
sectorsector
Sectors
Financial services
Sectorsector
Canned
Food
Sector
Vehicles
Sector
Other
activitiesC
onsolidated
LELE
LELE
LELE
LELE
LELE
LELE
LELE
LE
Revenues
Cost
Depreciation and
year
-
28 OTHER LONG TERM LIABILITIES
29 TAX SITUATION
30 FINANCIAL RISK MANAGEMENT OBJECTIVES & POLICIES
a)
LE
63,915,919
1,604,050
46,009
8,300,814
1,131,469
exposure to foreign currency changes for all other currencies is not material.
before Tax Change Ratio Currency
LE
6,391,592
(6,391,592)
160,405
(160,405)
830,081
(830,081)
113,147
(113,147)
4,601
(4,601)
R A Y A A N N U A L R E P O R T 2 0 1 9
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30. FINANCIAL RISK MANAGEMENT OBJECTIVES & POLICIES
credit risk.
the risk of default in payment by the customer for each individual case.
The Company earns its revenues from a large number of customers.
obligations.
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-
c) Interest
interest rates and interest bearing time deposits.
year.
business results. The company’s total liabilities from loans and credit facilities from banks as
available in the market.
R A Y A A N N U A L R E P O R T 2 0 1 9
Translation of consolidated financial statements | Originally issued in Arabic
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30. FINANCIAL RISK MANAGEMENT OBJECTIVES & POLICIES
rate rateLE LE
Financial asset 2.323.117 2,660,525
(2.323.117) (2,660,525)
Financial liability 38,632,319 26,438,525
(38,632,319) (26,438,525)
d)
The company’s management on a regular basis to make sure of the availability of the necessary
company.
liabilities expenses.
based on the contractual undiscounted payments
Less than 3 Months Total
L.E L.E L.E L.E
44,516,090 148,915,572 485,382,484 678,814,146
Credit Facilities 1,639,844,995 1,447,432,358 - 3,087,277,353
other credit balances 374,556,373 357,171,938 276,943,388 1,008,671,699
- - 147,214,755 147,214,755
payable 661,546,906 543,717,507 110,711,820 1,315,976,233
2,720,464,364 2,497,237,375 1,020,252,447 6,237,954,186
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Translation of consolidated financial statements | Originally issued in Arabic
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Less than 3 Months Months Total
L.E L.E L.E L.E
Credit Facilities
other credit balances
liabilities
d)
The main purpose of the company’s capital management is to ensure that there is a good capital levels
in light of changes in the conditions of activity. There are no changes occurred in the objectives and policies of the company during the year.
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Translation of consolidated financial statements | Originally issued in Arabic
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30. FINANCIAL RISK MANAGEMENT OBJECTIVES & POLICIES:
31 CONTINGENT LIABILITIES
)
32 SIGNIFICANT MATTERS
•
•
•
•
•
•
•leasing.
•
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•
•
•Measurement.
•
•
•
•
•
•
•
•
•
•
•
•
32- SIGNIFICANT MATTERS (CONTINUED)
•operations.
•
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NEW EGYPTIAN ACCOUNTING STANDARD NO. (47) “FINANCIAL INSTRUMENTS”
important adjustmentsDate of application
statements
corresponding topics in the
of hedge accounting according to the entity’s choice.
through other comprehensive
model established to manage
measurement of impairment of
by the expected credit loss models
measured at fair value through other comprehensive income since the initial recognition of those
presence of an indication of loss.
.
Management evaluates the potential impact on the
applying the standard.
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Translation of consolidated financial statements | Originally issued in Arabic
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NEW EGYPTIAN ACCOUNTING STANDARD NO. (48) REVENUE FROM CONTRACTS WITH CLIENTS
•
•
• Determine the contract.
• Determine performance obligations.
• Determine the transaction price.
• Distribute the transaction price to the performance obligations.
•performance obligations.
The additional costs of obtaining
conditions are met.
have commercial substance in order
Management evaluates the potential impact
applying the standard.
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Translation of consolidated financial statements | Originally issued in Arabic
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A NEW EGYPTIAN ACCOUNTING STANDARD (49), "LEASING CONTRACTS", FINANCIAL LEASING AND FACTORING
The standard introduces a single accounting model for the lessor
in mind that lease contracts are
The lessor must classify each of its lease contracts either as an operating lease contract or as a
and present them as amounts due
to the net investment in the lease.
payments from the operating lease contracts as income in either the
regular basis.
the same time.
With the exception of
applies to leasing contracts
and to be processed
that arise under and subject
of the period of the annual
issued.
Management evaluates the potential impact on
standard.
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Translation of consolidated financial statements | Originally issued in Arabic
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REVISED EGYPTIAN ACCOUNTING STANDARD NO. (38) “EMPLOYEE BENEFITS”
and settlement of the employee periods beginning on or
Management is currently evaluating the potential
applying the adjustment to the standard.
MODIFIED EGYPTIAN ACCOUNTING STANDARD NO. (42)“CONSOLIDATED FINANCIAL STATEMENTS”
added except for the investing entities from the combination and this adjustment resulted in an adjustment of some of the criteria related to the subject of the investing entities.
application.
paragraphs are applied in relation to the criteria that have
of investing entities on the
There is no potential impact on the company’s books.
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Translation of consolidated financial statements | Originally issued in Arabic
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ISSUANCE OF EGYPTIAN ACCOUNTING INTERPRETATION NO. 1“ARRANGEMENTS OF PRIVILEGES FOR PUBLIC SERVICES”
This interpretation provides guidelines on accounting by
infrastructure for public utilities
etc.
This interpretation gives the option to continue to apply the previous treatment of
these types of arrangements
their period.
There is no potential impact on the company’s books.
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Translation of consolidated financial statements | Originally issued in Arabic
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EGYPTIAN ACCOUNTING STANDARD NO. (34) "REAL ESTATE INVESTMENT"
The fair value model option has been cancelled for all entities
of its real estate investments and commitment only to the
real estate investment funds only to use the fair value upon
their real estate assets.
This adjustment applies to There is no real estate
company.
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Translation of consolidated financial statements | Originally issued in Arabic
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G R E A T E R O P P O R T U N I T I E S , B I G G E R C H A L L E N G E S
W W W . R A Y A C O R P. C O M