Académique Documents
Professionnel Documents
Culture Documents
Overview
Operational review
01
06
34
CONSTRUCTION GROUP
01 2008 highlights
02 Letter to shareholders
04 The business
06
08
10
16
20
22
24
26
28
28
28
CONSTRUCTION
Summary of operations
Orascom Construction
BESIX Group
Contrack International
CONSTRUCTION MATERIALS
FERTILIZER GROUP
34
36
38
40
42
42
42
FERTILIZER
Summary of operations
Egyptian Fertilizers Company
Egypt Basic Industries Corporation
Notore Chemical Industries
Sorfert Algrie
Gavilon
30 PROPERTY MANAGEMENT
32 Suez Industrial Development Company
33 Contrack FM
Governance
Financial statements
Additional information
46
61
104
46
50
52
55
Board of Directors
Report of the Directors
Corporate governance
Managements discussion and analysis of
financial condition and results of operations
60 Report of the Audi Committee of the
Board of Directors
63 Auditors report
64 Directors statement in respect of responsibility
for financial reporting
65 Consolidated income statement
66 Consolidated balance sheet
68 Consolidated statement of changes in equity
70 Consolidated cash flow statement
71 Notes to the consolidated financial statements
100 Selected financial data
2008
$
2007
$
2008
LE
2007
LE
Revenue
3,717.1
2,322.6
20,252.6
13,147.9
EBITDA
Net income without discontinued cement operations
Net income including discontinued cement operations
Earnings per share
Total assets
Cash and cash equivalents
Total debt
Minority interest
Shareholders' equity
881.1
719.8
985.0
3.5
7,823.1
1,503.5
2,077.3
41.2
3,155.5
422.8
212.1
11,662.8
0.9
17,127.0
706.5
2,107.3
189.2
13,139.8
4,800.5
3,921.8
5,366.7
18.9
43,025.5
8,268.7
11,424.7
226.7
17,354.7
2,393.4
1,200.4
66,020.9
5.1
94,952.0
3,917.0
11,682.6
1,048.8
72,847.0
Egyptian Pounds (LE) and US Dollars ($) figures in millions except per share data.
Growth percentages calculated based on US Dollar figures. Amounts include discontinued operations.
Overview
LETTER TO
SHAREHOLDERS
EBITDA
$881.1 MILLION IN 2008 COMPARED
WITH $349.8 MILLION IN 2007
881.1M
AN INCREASE OF 151.1%
DEAR SHAREHOLDERS,
REVENUE
CONSTRUCTION BACKLOG
NET INCOME
3.7BN
6.9BN
719M
AN INCREASE OF 229.9% OVER LAST YEAR
FIGURES EXCLUDE DISCONTINUED OPERATIONS
FUTURE OUTLOOK
ONSI SAWIRIS
Chairman
NASSEF SAWIRIS
Overview
THE BUSINESS
THE GROUP
REVENUE BY GEOGRAPHY
CONSTRUCTION
GROUP 49.8%
FERTILIZER
GROUP 50.2%
EBITDA CONTRIBUITON
CONSTRUCTION
GROUP 43.2%
FERTILIZER
GROUP 56.8%
OUR STRATEGY
OUR VALUES
Operational review
08
10
16
20
Construction group
Orascom Construction
BESIX Group
Contrack International
CONSTRUCTION
Construction has been at the heart of our
business for over 50 years. We offer engineering,
procurement and construction services to public
and private clients in four continents primarily
under three distinct and separate brands. Our
companies offer complete building solutions for
large, complex and demanding projects.
Picture caption
TEN YEARS OF SUCCESS
ORASCOM CONSTRUCTION
BESIX GROUP
CONTRACK INTERNATIONAL
MARKETS
MARKETS
MARKETS
EMPLOYEES
EMPLOYEES
EMPLOYEES
44,000
20,000
3,100
OWNERSHIP
OWNERSHIP
OWNERSHIP
100%
50%
100%
Operational review
CONSTRUCTION GROUP
2.3
2.6
1.2
04
05
06
07
08
BACKLOG BY SECTOR
BACKLOG BY REGION
$ BILLIONS
ALGERIA 22.8%
6.9
INDUSTRIAL
13.6%
4.7
COMMERCIAL
30.8%
2.7
2.2
INFRASTRUCTURE
55.7%
1.8
04
05
06
07
DUBAI 6.8%
ABU DHABI 19.5%
08
A POSITIVE OUTLOOK
Operational review
ORASCOM CONSTRUCTION
www.orascomci.com
TURNOVER BY SECTOR
TURNOVER BY REGION
COMMERCIAL 12.1%
OTHER 2%
EUROPE 9%
EGYPT 16%
INDUSTRIAL 27.0%
AFRICA 24%
INFRASTRUCTURE 60.9%
Operational review
ORASCOM CONSTRUCTION
BUSINESS FOCUS
PETROCHEMICALS
MANUFACTURING FACILITIES
Operational review
ORASCOM CONSTRUCTION
TRANSPORT INFRASTRUCTURE
AL REEM ISLAND
0.5 km
Al Reem Investments
Tamouh Investments
Sorouh Real Estate
Operational review
BESIX GROUP
www.besix.com
BUSINESS UNITS
TURNOVER BY SECTOR
TURNOVER BY REGION
1ST
OTHER 2%
ENVIRONMENTAL 2%
QUARRIES 3%
CONSTRUCTION
MANAGEMENT 5%
BELGIUM 27%
EASTERN EUROPE 1%
OTHER 2%
Operational review
BESIX GROUP
TRANSPORT INFRASTRUCTURE
BUILDINGS
Operational review
CONTRACK INTERNATIONAL
TURNOVER BY SECTOR
INSTITUTIONAL 45.1%
INFRASTRUCTURE 13.8%
www.contrack.com
OPERATION &
MAINTENENCE 17.4%
GOVERNMENT 23.7%
BUILDINGS
TURNOVER BY REGION
AFGHANISTAN 30.7%
EGYPT 8.3%
QATAR 43.5%
UAE 8.2%
LEBANON 3.8%
JORDAN 5.4%
IRAQ 0.1%
Operational review
24
26
28
28
28
ALICO EGYPT
MARKETS
MARKETS
EMPLOYEES
EMPLOYEES
3,650
560
OWNERSHIP
OWNERSHIP
100%
50%
CONSTRUCTION
MATERIALS
We invest in complimentary construction
materials to broaden our offer and increase
our value to our clients. Value comes from
being able to provide sought after products
and services inclusively, within market leading
prices and delivery times from companies
that have a proven track record.
Picture caption
TEN YEARS OF SUCCESS
SCIB CHEMICAL
MARKETS
MARKETS
MARKETS
EMPLOYEES
EMPLOYEES
EMPLOYEES
200
500
345
OWNERSHIP
OWNERSHIP
OWNERSHIP
50%
40%
15%
Operational review
NATIONAL STEEL
FABRICATION
www.nsfegypt.com
NEW CONTRACTS
Operational review
ALICO EGYPT
www.alicoegypt.com
EXPANSION
CAPACITY INCREASE FROM
20042009 (1000m2)
240
205
126
100
04
100
05
06
07
08
Operational review
CONSTRUCTION MATERIALS
www.drymixegypt.com
www.scibpaints.com
SCIB CHEMICAL
Operational review
PROPERTY
MANAGEMENT
Our investments in property management,
facilities and in infrastructure concessions
enable us to capitalize on business synergies
across the companies that we have investments
in. Orascom Construction Industries as a whole
benefits from money and investment staying
within the group.
CONTRACK FM
MARKETS
MARKETS
EMPLOYEES
EMPLOYEES
91
2,200
OWNERSHIP
OWNERSHIP
60.5%
100%
Picture caption
TEN YEARS OF SUCCESS
Operational review
SUEZ INDUSTRIAL
DEVELOPMENT COMPANY
REVENUE 2008
TOTAL REVENUE LE 141.7MILLION
($26.0 MILLION)
SERVICES & UTILITIES 7%
www.sidc.com.eg
LAND SALE 93%
SITE DEVELOPMENT
CONTRACK
FM
REVENUE 2008
TOTAL REVENUE LE 52.7 MILLION
($9.7 MILLION)
FINANCIAL 9%
INDUSTRIAL 5%
RESIDENTIAL 1%
MEDICAL 4%
www.contrackfm.com
CORPORATE 81%
INVESTMENT
LOOKING AHEAD
Operational review
36
38
40
42
42
42
Summary of operations
Egyptian Fertilizers Company
Egypt Basic Industries Corporation
Sorfert Algrie
Notore Chemical Industries
Gavilon Group
MARKETS
MARKETS
EMPLOYEES
819
OWNERSHIP
100%
EMPLOYEES
300
OWNERSHIP
60%
FERTILIZER
Our fertilizer group has the most cost efficient
production assets in the world and is on its way
to being ranked among the worlds top five
producers of nitrogen-based fertilizers.
We own and operate plants located in Egypt,
Algeria and Nigeria, which will have an annual
combined capacity of 4.65 million tons in 2010.
We also have an investment in a global fertilizer
trading company.
Picture caption
TEN YEARS OF SUCCESS
SORFERT ALGRIE
GAVILON
MARKETS
MARKETS
MARKETS
EMPLOYEES
EMPLOYEES
EMPLOYEES
930
OWNERSHIP
OWNERSHIP
OWNERSHIP
51%
20%
20%
Operational review
Q1
07
Q2
08
Q3
321
324
281
302
306
387
577
752
FERTILIZER
Q4
AMMONIA PRICES
Q1
07
Q2
419
Q3
252
232
285
297
418
460
707
Q4
08
STRATEGY
Operational review
EGYPTIAN FERTILIZERS
COMPANY
BUSINESS SYNERGIES
GRANULAR UREA
ANNUAL CAPACITY
GRANULAR UREA
1.3MT
1.3 MILLION TONS
488
Operational review
ANHYDROUS AMMONIA
ANNUAL CAPACITY
0.7MT
0.7 MILLION TONS
Operational review
FERTILIZER
www.gavilon.com
www.notore.com
0.5MT
0.5 MILLION TONS
SORFERT ALGERIE
SORFERT ALGERIE
1.2MT
0.8MT
SORFERT ALGRIE
GAVILON GROUP
Governance
46
50
52
55
Board of Directors
Report of the Directors
Corporate governance
Managements discussion and analysis of
financial condition and results of operations
60 Report of the Audi Committee of the
Board of Directors
Governance
BOARD OF DIRECTORS
01
02
03
04
09
07
08
05
06
10
08 ONSI SAWIRIS
CHAIRMAN
02 NASSEF SAWIRIS
DIRECTOR
01 SALMAN BUTT
DIRECTOR
07 OSAMA BISHAI
DIRECTOR
04 KARIM CAMEL-TOUEG
DIRECTOR
05 JRME GUIRAUD
DIRECTOR
10 SAMI HADDAD
INDEPENDENT DIRECTOR
06 ALADDIN SABA
INDEPENDENT DIRECTOR
09 ARIF NAQVI
INDEPENDENT DIRECTOR
03 HASSAN ABDALLA
INDEPENDENT DIRECTOR
Governance
BOARD OF DIRECTORS
Onsi Sawiris was the founder and President of Orascom Onsi Sawiris &
Co, the original family partnership involved in trading and contracting.
Following the Groups incorporation the company was renamed Orascom
Construction Industries and Mr Sawirs became Chairman. He is also
Chairman of Orascom Trading Co and serves on the Board of Directors
for Orascom Telecom Holding, Orascom Hotels and Developments and
Orascom Technology Systems.
Salman Butt has held the position of Chief Financial Officer since 2005.
He is an international banker with over 20 years of banking experience.
Mr Butt holds an MBA from the University of Texas at Austin, USA, and
a BSc in Industrial Engineering from the Middle East Technical University,
Ankara, Turkey. He was born in 1959 and is a citizen of Pakistan. He was
appointed as Board Director in August 2008.
Osama Bishai has worked for Orascom Construction Industries since 1985
and has held the position of Managing Director of the Construction Group
since 1998.
He played a key role in the establishment of Contrack International and
in developing Orascom Constructions business, particularly in the oil and
gas sector. He led the development of the strategic construction services
businesses and was heavily involved in the establishment of National Steel
Fabrication. He also led the development of the companys investments in
the fertilizer industry in Egypt and Algeria.
Mr Bishai holds a BSc in Structural Engineering from Cairo University and
a Construction Management Diploma from the American University in
Cairo. He was born in 1962 and is an Egyptian citizen. He has been a
Director of Orascom Construction Industries since its incorporation in
April 1998.
Nassef Sawiris is the major shareholder and the Chief Executive Officer of
Orascom Construction Industries. He is a Director of the BESIX Group and
of NNS Holding, a privately-owned investment group.
Mr Sawiris joined the Orascom Group in 1992 and became the Chief
Executive Officer of Orascom Construction Industries in 1998 ahead
of its initial public offering, which was successfully completed in the
second quarter of 1999. He leads the company in devising its investment
strategies. He led the establishment of its cement business, investments
in natural gas industries and significant geographic expansion of the
construction group. Through investment in complimentary businesses,
Mr Sawiris has grown the family business into an international corporation.
Sami Haddad is the Chairman and Chief Executive Officer of Byblos Invest
Bank and a Board member of Byblos Bank. He has decades of experience
in both the private and public sectors, specifically in finance, politics and
academia.
Mr Haddad started his career at Socit Gnrale in Beirut, Lebanon and
undertook training at the banks head offices in Paris, London and Brussels.
In 1979 he became a part-time lecturer in Economics at the American
University in Beirut while also working at the Central Bank of Lebanon. In
1981 Mr Haddad joined the International Finance Corporation, part of the
World Bank Group. For more than 20 years he held a variety of positions
around the world, most recently as Director of the Middle East and North
Africa regions based in Cairo. In 2005 he became Minister of Economy
and Trade in Lebanon, a position which he held for three years.
Sami Haddad holds an MA in Economics from the American University in
Beirut. He pursued his postgraduate studies as the University of WisconsinMadison. Mr Haddad was born in 1950 and is a Lebanese citizen. He was
appointed to the Board of Orascom Construction Industries in August
2008.
ALADDIN SABA INDEPENDENT DIRECTOR
Aladdin Saba holds an MBA from The Wharton School of Business at the
University of Pennsylvania, a Masters in Biomedical Engineering from the
University of Pennsylvania and a BSc in Biomedical Engineering from Cairo
University. He was born in 1960 and is an Egyptian citizen. Mr Saba was
appointed to the Board of Orascom Construction Industries in April 2003
and is Chairman of the Audit Committee.
ARIF NAQVI INDEPENDENT DIRECTOR
Arif Naqvi is the founder and Group Chief Executive Officer of Dubai
based Abraaj Capital, the largest private equity firm in the Middle East,
North Africa and South Asia. Previously he worked with Arthur Andersen
& Co, American Express Bank, Saudi Arabias Olayan Group and The
Cupola Group, which he founded in 1994.
Mr Naqvi is a member of the Young Presidents Organization, where he
was the Emirates Chapter Chairman from 2002-03. He is a member of
numerous think-tanks and policy groups, including the WEF Arab Business
Council. He is a Board Member of the Pakistan Human Development
Fund, the King Abdullah II Award for Youth Innovation & Achievement
in Jordan and the Dubai Government Education Endowment Fund in the
UAE. Mr Naqvi is a member of the EMPEA Advisory Council and the IMD
Foundation Board. In 2007, he was awarded Pakistans highest civilian
honor, the Sitara-e-Imtiaz, by the Republics President.
Arif Naqvi holds a Bachelors degree from the London School of
Economics. He was born in 1961 and is a citizen of Pakistan. He was
appointed to the Board of Orascom Construction Industries in August
2008.
HASSAN ABDALLA INDEPENDENT DIRECTOR
Hassan Abdalla is the Vice Chairman and Managing Director of the Arab
African International Bank, an international bank based in Egypt. He is also
a part-time faculty member of Finance at the American University in Cairo.
Mr Abdalla holds positions on the Board of Directors for the Central Bank
of Egypt and the Cairo and Alexandria Stock Exchanges. For the National
Democratic Party in Egypt, he is Chairman of the Economic Committee
and a member of the High Council for Policies. He is also a Board member
of the Washington based Institute of International Finance (IIF), Vice
Chairman of the German Arab Chamber of Commerce, Chairman of
the Middle East, Far East and Africa Region at the International Capital
Markets Association (ICMA) and member of the Executive Committee and
Board of Directors of UBAF Bank, Hong Kong.
Hassan Abdalla holds a BA and MA in Business Administration from the
American University in Cairo. He was born in 1960 and is an Egyptian
citizen. He was appointed to the Board of Orascom Construction Industries
in August 2008 and serves on the Audit Committee.
Governance
OCI is one of Egypts largest corporations. Shares are listed on The Egyptian
Exchange (OCIC.CA/ORCI ERY) and on the London Stock Exchange
(OCICql/ORSD LI) through a global depository receipts program.
A review of the group business, investing activities, nancial performance
and future outlook, and the growth of fertilizer operations, is contained in
letter to shareholders by the Chairman and the Chief Executive Ofcer on
pages 2-3, and in managements discussion and analysis on pages 55-59.
EXPANSION OF FERTILIZER OPERATIONS
In 2008, OCI substantially increased its investment in the fertilizer industry
by acquiring 100% of Egyptian Fertilizers Company (EFC), 20% of
the Gavilon Group, and increasing ownership of Egypt Basic Industries
Corporation (EBIC) up to 60%.
As a fertilizer producer, OCI will own and operate plants located in Egypt,
Algeria and Nigeria which will have an annual combined production
capacity of 4.65 million tons in 2010. At that time, OCI will become ranked
among the worlds top ve producers of nitrogen-based fertilizers.
PROFITS AND DIVIDENDS
The consolidated income statement is shown on page 65. Net income
from continued operations in 2008 was $734.0 million (LE 3,998.8 million).
In 2007 it was $245.0 million (LE 1,386.5 million). The net income for
2008 was $985.1 million (LE 5,366.7 million) including the gain on sale
of Egyptian Container Handling Company of $265.0 million (LE 1,443.5
million). In 2007, it was $11,662.8 million (LE 66,020.9 million) including
the gain on sale of cement operations of $11.001.1 million (LE 62,274.8
million).
In March and June 2008, the company paid dividends totaling $11,112.7
million (LE 61,672.6 million), $55.00 (LE 305.00) per share as extraordinary
dividends following the divestment of cement operations. In September
2008, the company paid another dividend in the amount of $214.8 million
(LE 1,176.7 million), $1.00 (LE 5.48) per share.
The Board of Directors proposed payment of a dividend in 2009 amounting
to $206.9 million (LE 1,164.7 million), $1.00 (LE 5.63) per share based on
2008 results.
EMPLOYEES
In respect of the parent company, the number of permanent employees
as of 31 December 2008 was 16,482, including 747 women. The aim
of the company is to attract highly qualied expertise, and to retain and
reward the employees with proven skills and performance. In support of
its commitment to quality and equality in employment, OCI continues
to develop and implement a comprehensive compensation and benets
system based on equal pay for equal work. In addition to the basic
competitive pay scheme, the company has the following employee
benets:
SHAREHOLDERS
The shareholding structure as at 31 December 2008 was: Sawiris family
54%, Abraaj Capital 5% and public ownership 41%. The company is
authorized to issue shares of up to 1% of the issued and paid in capital
to implement its employee share-based payment incentive program.
Information on this program is shown in note 28 to the consolidated
nancial statements on page 95-96.
CHARITABLE DONATIONS
Payments for charitable purposes made by the group during the year
ended 31 December 2008 amounted to $8.5 million (LE 47.0 million).
(In 2007, LE 9.0 million ($1.6 million)) The primary beneciaries of these
charitable donations were public sector institutions for building schools and
qualied non-governmental organizations for social development projects.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held at noon on 30 April 2009 at Nile
City Towers, 2005A Corniche El Nil, Cairo 11221, Egypt.
AUDITOR
Resolution to reappoint KPMG (Hazem Hassan) as auditor and to authorize
the Directors to determine its remuneration will be proposed at the Annual
General Meeting.
Approved by the Board
ADEL BISHAI
CORPORATE GOVERNANCE DIRECTOR
April 2009
Governance
CORPORATE GOVERNANCE
Governance
Changes in global fertilizer supply and demand and its impact on the
selling price of our products.
Governance
SEASONALITY
Major construction projects are not generally affected by seasonal demand
uctuations. In addition, because of the generally warm and dry climate in
the areas of operations, the construction activity levels are not signicantly
affected by weather conditions.
DIFFERENCES BETWEEN EAS AND IFRS
EAS 20 requires that, with some exceptions, all leases should be
accounted for as operating leases and therefore annual lease payments
by the lessee are charged to the income statement as rent expense. IFRS
17 requires that leases which transfer substantially the benets and risks
of ownership related to the leased properties from the lessor to the lessee
should be accounted for as nance leases and therefore recorded as assets
of the lessee, with the lease obligations included as a liability in the balance
sheet.
Another difference between EAS and IFRS relates to accounting for the
employees share of prots. Egyptian law requires that 10% of distributable
prots are set aside for distribution to the employees, with a maximum of
one years total salaries. While EAS treats this as a charge to equity, IFRS
requires that such employee benets are to be expensed as charges in the
income statement.
RESULTS OF OPERATIONS
REVENUE
Consolidated revenue from continuing operations increased by 55.9%
to LE 20,231.8 million ($3,713.3 million), as compared to LE 13,481.7
million ($2,381.6 million) in 2007. This growth in revenue is attributable
to the increased revenue in Egypt from construction activities and from
fertilizer exports, but also due to the expansion of international activities
by the BESIX Group, Contrack International, OCI Algeria, and Cementech.
Revenue during the year was primarily from the following major contracts:
Orascom Construction projects in Egypt, Contrack projects in the Gulf area,
Cementech projects, and BESIX projects in Europe, Gulf area and Africa. In
2008, OCI activities in Egypt contributed LE 3,904.7 million ($716.6 million)
to the consolidated revenue from continuing operations, as compared to
LE 2,567.0 million ($453.5 million) in 2007, representing 19.3% of the
groups revenue as compared to 19.0% in 2007.
In 2008, revenue from fertilizer operations was LE 3,511.2 million ($644.4
million).
GROSS PROFIT
Gross prot from continuing operations increased by 129.0% to
LE 5,090.1 million ($934.2 million), as compared to LE 2,309.3 million
($408.0 million) in 2007. The gross prot percentage of revenue increased
to 25.1% in 2008, as compared to 17.1% in 2007, reecting the type of
construction contracts undertaken during the year, and higher margins of
fertilizer business. Depreciation and amortization expenses are a signicant
component of the cost of construction and fertilizer operations. In 2008,
depreciation and amortization expenses increased by 87.4% to LE 728.0
million ($133.6 million), as compared to LE 403.7 million ($71.3 million) in
2007.
Governance
NET INCOME
As a result of the foregoing, the companys net income from continuing
operations increased by 200.0% to LE 3,999.1 million ($734.0 million)
in 2008 (19.8% of revenue), as compared to LE 1,386.5 million ($245.0
million) in 2007 (10.3% of revenue). Net income from discontinuing
operations decreased to LE 11.4 million ($2.1 million) in 2008, as compared
to LE 2,359.6 million ($416.9 million) in 2007. The consolidated net income
for the year amounted to LE 5,367.1 million ($985.1 million), compared to
LE 66,020.9 million ($11,664.5 million) in 2007 (which included the gain
on disposal of cement operations).
FINANCIAL LIQUIDITY AND CONDITION
The company and its subsidiaries have three principal sources of short
term liquidity: (i) existing cash and cash equivalents which at 31 December
2008 totaled LE 8,268.7 million ($1,503.4 million), as compared to
LE 3,917.0 million ($706.5 million) at 31 December 2007; (ii) cash
generated by operations; and (iii) short-term borrowings under credit
facilities. For long-term investments, the group has access to long-term
nancing from international nancial institutions. The company also
increased its share capital during 2008.
Cash is used to meet continuing operating obligations, investing activities,
payment of long and short-term debt, and for distribution of prot to
shareholders. The following table sets forth certain consolidated nancial
data concerning the liquidity and capital resources as at and for the periods
indicated.
Year ended
31 December 2008
In millions
LE
LE
3,917.0
8,268.7
707.0
1,503.4
2,738.1
3,917.0
478.9
707.0
Net increase
4,351.7
796.4
1,178.9
228.1
3,254.6
63,839.6
(62,742.5)
595.6
11,683.7
(11,482.9)
927.1
(7,653.8)
7,905.6
179.4
(1,481.0)
1,529.7
4,351.7
796.4
1,178.9
228.1
DISCONTINUED OPERATIONS
Prot from discontinued operations decreased to LE 11.4 million ($2.1
million), as compared to LE 2,511.0 million ($443.6 million) in 2007. In
2007, revenue from the discontinued cement group operations was
LE 8,450.5 million ($1,493.0 million), attributable primarily to sales
at Egyptian Cement Company, at Algerian Cement Company, and in
northern Iraq. In 2007, the gain on sale of discontinued cement operations
amounted to LE 62,274.8 million ($11,001.1 million).
Year ended
31 December 2007
CONSTRUCTION BACKLOG
The company considers as backlog the revenues that the company
expects to receive under contracts that have been awarded and signed.
Backlog consists of uncompleted portions of engineering and construction
contracts, including the companys proportionate share of construction
joint-venture contracts.
2008
US Dollar
Euro
Rates as at 31 December
US Dollar
Euro
2008
2007
5.4485
8.0377
5.6608
7.7416
2008
2007
5.4998
7.6894
5.5440
8.0898
DIVIDENDS
The declaration or payment of dividends by OCI is dependant in part
on OCIs nancial condition, results of operations, prospects, cash ow,
capital requirements and reserves, the level of dividends received from the
subsidiaries, and the effect of such dividend on OCIs tax position.
In March and June 2008, the company paid dividends totaling LE 61,608.7
million ($11,112.7 million), LE 305.00 per share ($55.00 per share) as
extraordinary dividends following the divestment of cement operations. In
September 2008, the company paid another dividend in the amount of
LE 1,176.9 million ($214.8 million), LE 5.48 per share ($1.00 per share)
based on 2007 results.
In billions
2007
LE
LE
Egypt
Middle East
Africa
Europe
Asia
6.1
18.7
9.2
3.4
0.8
1.1
3.4
1.7
0.6
0.1
16
49
24
9
2
4.9
8.1
9.2
3.8
1.0
0.8
1.4
1.6
0.7
0.2
18
30
34
14
4
Total
38.1
6.9
100
27.0
4.7
100
Governance
The Audit Committee assists the Board in fullling its responsibilities for
general oversight of the integrity of the companys consolidated nancial
statements, compliance with legal and regulatory requirements, the
independent auditors qualications and independence, the performance
of the companys internal audit function and independent auditors, and
risk assessment and management. The Audit Committee manages the
companys relationship with its independent auditors (who report directly to
the Audit Committee). The Audit Committee acts under a written charter
adopted and approved by the Board, and has authority to obtain advice
and assistance from outside legal, accounting or other advisors as the Audit
Committee deems necessary to carry out its duties.
The companys management has responsibility for preparing the
consolidated nancial statements and nancial reporting process, including
the system of internal control. The companys independent auditors, KPMG
(Hazem Hassan), are responsible for expressing an opinion as to whether
those nancial statements present fairly, in all material respects, the
nancial position, results of operations and cash ows of the company in
accordance with Egyptian Accounting Standards, which are not materially
different from International Financial Reporting Standards.
In this context, the Audit Committee hereby reports as follows:
1. The Audit Committee has reviewed and discussed the audited
consolidated nancial statements for the year ended 31 December 2008
with the companys management.
2. The Audit Committee discussed with the independent auditors the
conduct of their audit in accordance with Egyptian Auditing Standards,
and compliance with legal and regulatory requirements.
3. The Audit Committee has received written conrmation of the
independent auditors independence.
4. Based on the review and discussions referred to above, the Audit
Committee recommended to the Board, and the Board has approved,
that the audited consolidated nancial statements be included in the
2008 Annual Report for ling with the Capital Market Authority.
AUDIT COMMITTEE
ALADDIN SABA
JRME GUIRAUD
HASSAN ABDALLA
Financial statements
63 Auditors report
64 Directors statement in respect of responsibility
for financial reporting
65 Consolidated income statement
66 Consolidated balance sheet
68 Consolidated statement in changes in equity
70 Consolidated cash flow statement
71 Notes to the consolidated financial statements
100 Selected financial data
104 Management and corporate information
Business segments and activities
Financial statements
AUDITORS REPORT
TO THE SHAREHOLDERS OF
ORASCOM CONSTRUCTION INDUSTRIES
We have audited the accompanying consolidated nancial statements of
Orascom Construction Industries (OCI) Egyptian Joint Stock Company,
which comprise the consolidated balance sheet as at 31 December 2008,
and the consolidated income statement, statement of changes in equity
and cash ows statement for the year then ended, and a summary of
signicant accounting policies and other explanatory notes.
MANAGEMENTS RESPONSIBILITY
FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of
these consolidated nancial statements in accordance with the Egyptian
Accounting Standards and in the light of provisions of applicable Egyptian
laws. This responsibility includes: designing, implementing and maintaining
internal control relevant to the preparation and fair presentation of nancial
statements that are free from material misstatement, whether due to
fraud or error; selecting and applying appropriate accounting policies; and
making accounting estimates that are reasonable in the circumstances.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated nancial
statements based on our audit. We did not audit the nancial statements
of some of the companys subsidiaries, which statements reect total assets
amounted to approximately LE 7.7 billion and total revenues amounted
to approximately LE 10.0 billion, of the related consolidated totals. Those
statements were audited by other auditors whose reports have been
furnished to us, and our opinion, in so far as it relates to the amounts
included for the said subsidiaries, is based solely on the reports of those
auditors.
We conducted our audit in accordance with Egyptian standards on auditing
and in the light of provisions of applicable Egyptian laws. Those standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance whether the nancial statements
are free from material misstatement.
Financial statements
The Directors are responsible for the preparation and integrity of the
Annual Report and the consolidated nancial statements of Orascom
Construction Industries (OCI), in accordance with applicable laws and
regulations.
Company law requires the Directors to prepare consolidated and company
nancial statements for each year. The consolidated nancial statements
have been prepared in accordance with Egyptian Accounting Standards,
which are not materially different from International Accounting Standards.
These consolidated the nancial statements present fairly the nancial
position and results of operations of the group. As such, the consolidated
nancial statements include certain amounts that are estimates based upon
currently available information and management judgment of current
conditions and circumstances. The Directors are responsible also for the
other information included in the annual and interim reports and for their
accuracy and consistency with the consolidated nancial statements.
The annual nancial statements have been audited by the independent
accounting rm, KPMG (Hazem Hassan), which was given unrestricted
access to all nancial records and recorded data, including minutes of all
the meetings of the Board of Directors and committees of the Board.
The company maintains a system of internal control over nancial
reporting, which is intended to provide reasonable assurance to
the companys management and Board of Directors regarding the
preparation of the consolidated nancial statements. The system includes
a documented organizational structure and division of responsibility,
established policies and procedures, and the careful selection and
development of staff. Internal auditors monitor the operation of the
internal control system and report ndings and recommendations to
management and the Audit Committee of the Board of Directors.
Corrective actions are taken to control deciencies and other opportunities
for improving the system as they are identied.
2008
2007
LE million
LE million
20,252.6
(14,952.4)
5,300.2
13,147.9
(10,975.0)
2,172.9
64.1
(1,092.8)
(201.1)
4,070.4
119.4
(740.7)
(82.2)
1,469.4
676.9
(668.4)
494.0
502.5
1.8
4,574.7
(575.9)
3,998.8
323.0
(576.7)
46.5
(207.2)
129.0
1,391.2
(82.0)
1,309.2
11.4
1,433.5
1,444.9
5,443.7
2,545.7
62,274.8
64,820.5
66,129.7
Attributable to:
Minority interest
Equity holders of the Company
77.0
5,366.7
108.8
66,020.9
5,443.7
66,129.7
Notes
Continuing operations
Revenue
Cost
Gross prot
Add (less)
Other operating income
Selling, general and administrative expenses
Provision for claims and doubtful debts
Operating prot
Interest income
Interest expense
Gain on foreign currency exchange
Net nance income (cost)
Investments income
Income before taxes
Income tax expense
Net prot from continuing operations
Discontinued operations
Results from discontinued operations (net of tax)
Gain on sale of investment
Net prot from discontinued operations
Net prot for the year
(26)
(27)
(6)
(6)
(30)
25.8
327.7
(30)
18.9
5.1
Financial statements
ASSETS
Non-current assets
Property, plant and equipment
Payments for purchase of investments
Intangible assets
Investment in associated companies
Investments available for sale
Deferred tax assets
Long-term receivables
Total non-current assets
Current assets
Inventories
Marketable securities
Trade and other receivables
Receivable on sale of discontinued cement operations
Due from clients
Cash on hand and at banks
Assets held for sale
Total current assets
Total assets
2008
2007
Notes
LE million
LE million
(9)
(11)
(12)
(13)
9,912.3
2,784.8
9,910.0
135.6
132.6
36.0
255.2
23,166.5
3,473.4
554.8
64.8
1,013.1
8.3
21.5
76.3
5,212.2
(14)
1,462.1
163.2
8,236.2
1,193.8
8,268.7
535.0
19,859.0
734.3
72.2
5,410.2
77,266.8
766.0
3,917.0
1,573.3
89,739.8
43,025.5
94,952.0
(15)
(6)
(16)
(17)
EQUITY
Shareholders' equity
Share capital
Legal reserve
Other reserves
Retained earnings
Cumulative adjustment on translation of foreign companies
Treasury stock
Total shareholders' equity
2008
2007
Notes
LE million
LE million
(18)
(19)
(19)
1,073.9
505.0
5,678.4
11,851.0
(85.7)
(1,667.9)
17,354.7
1,010.0
505.0
1,774.6
69,640.0
11.8
(94.4)
72,847.0
(21)
226.7
1,048.8
17,581.4
73,895.8
(22)
(23)
(24)
7,754.1
1,891.4
613.4
506.6
10,765.5
1,034.9
1,982.3
586.0
103.2
3,706.4
(22)
(25)
(16)
(23)
3,670.6
8,317.9
1,599.7
633.7
456.7
-
10,647.7
4,621.1
907.4
324.8
87.5
761.3
14,678.6
17,349.8
Total liabilities
25,444.1
21,056.2
43,025.5
94,952.0
Total equity
LIABILITIES
Non-current liabilities
Long-term loans
Provisions
Other long-term liabilities
Deferred tax liabilities
Total non-current liabilities
Current liabilities
Bank overdraft and current portion of long-term loans
Trade and other payables
Due to clients
Provisions
Income taxes payable
Liabilities related to assets held for sale
ONSI SAWIRIS
CHAIRMAN
NASSEF SAWIRIS
CHIEF EXECUTIVE OFFICER
SALMAN BUTT
CHIEF FINANCIAL OFFICER
Financial statements
Share capital
Legal reserve
LE million
LE million
Balance at 31/12/06
Amounts related to discontinued cement operations
Net income for the year 2007
Transactions of treasury stock by OCI ESOP Limited
Hedge reserve
Decit in ESOP share option plan
Adjustments
Distribution of cash dividends to shareholders
Employees share of prots 2006
Changes in translation of foreign companies
Net change in minority interest in subsidiaries during the year
1,010.0
-
505.0
-
Balance at 31/12/07
Amounts related to Egyptian Container Handling Company discontinuation
Change to proportionate consolidation of a subsidiary
Capital increase at fair value
Net income for the year 2008
Hedge reserve
Adjustments
Dividends to shareholders
Transactions of treasury stock by OCI and OCI ESOP Limited
Prots from sale of treasury stock
Employees share of prots 2007
Changes in translation of foreign companies
Net change in minority interest in subsidiaries during the year
1,010.0
63.9
505.0
-
Notes
Balance at 31/12/08
(20)
(29)
1,073.9
505.0
Other
reserves
Retained
earnings
Cumulative adjustment
on translation of
foreign companies
Treasury
stock
Total
shareholders
equity
Minority
interest
Total
equity
LE million
LE million
LE million
LE million
LE million
LE million
LE million
1,804.2
(29.6)
-
5,336.4
66,020.9
(457.1)
(32.2)
(1,111.0)
(117.0)
-
152.6
(151.4)
10.6
-
(136.5)
42.1
-
8,671.7
(151.4)
66,020.9
42.1
(29.6)
(457.1)
(32.2)
(1,111.0)
(117.0)
10.6
-
2,488.4
(1,060.3)
151.4
(875.5)
344.8
11,160.1
(1,211.7)
66,172.3
42.1
(29.6)
(457.1)
(32.2)
(1,986.5)
(117.0)
10.6
344.8
1,774.6
3,869.9
(54.0)
87.9
-
69,640.0
5,366.7
(445.2)
(62,549.0)
18.0
(179.5)
-
11.8
(97.5)
-
(94.4)
(1,573.5)
-
72,847.0
3,933.8
5,366.7
(54.0)
(445.2)
(62,549.0)
(1,573.5)
18.0
(179.5)
(9.6)
-
1,048.8
(232.8)
(567.4)
77.0
(98.9)
73,895.8
(232.8)
(567.4)
3,933.8
5,443.7
(54.0)
(445.2)
(62,549.0)
(1,573.5)
18.0
(179.5)
(9.6)
(98.9)
5,678.4
11,851.0
(85.7)
(1,667.9)
17,354.7
226.7
17,581.4
Financial statements
2008
2007
LE million
LE million
5,366.7
66,020.9
730.5
245.3
(8.5)
(1.8)
(15.0)
(1,433.5)
(9.6)
575.9
5,450.0
(20.6)
(549.1)
(2,593.9)
(427.8)
(142.9)
838.1
692.3
(668.4)
676.9
3,254.6
924.0
198.2
281.6
(129.0)
(9.1)
(62,274.8)
(124.4)
82.0
4,969.4
(667.9)
(2,249.5)
(84.0)
137.5
(917.9)
21.1
(604.8)
323.2
927.1
243.3
(3,198.4)
(77.1)
1,741.5
77,266.8
(12,136.5)
63,839.6
244.1
(6,728.2)
(1,169.7)
(7,653.8)
(1,573.5)
(2,693.1)
161.1
(21.8)
(62,549.0)
3,933.8
(62,742.5)
4,351.7
3,917.0
8,268.7
(598.1)
166.5
8,575.5
(43.1)
317.7
(1,111.0)
7,905.6
1,178.9
2,738.1
3,917.0
(31.3)
7,670.6
3,885.7
Notes
(26)
(6)
(27)
(29)
(18)
(17)
(17)
1 GENERAL
Orascom Construction Industries Company was recorded in the commercial register as an Egyptian Joint Stock company on 30 March 1998
according to Law number 159 for the year 1981. The Companys articles of association were published in the Companies Gazette issue number
658 in April 1998.
The Companys purpose is contracting, manufacturing, supply and installation of machinery, equipment, tools, materials and supplies required
for construction activities, the undertaking of infrastructure works and the engineering and technical consultation required for projects being
implemented by the Company as well as importing necessary equipment and instruments. The Companys purpose also includes import and
export activities, and leasing equipments.
Orascom Construction Industries Company hereafter referred to as the Company or OCI consolidated nancial statements of the
Company comprise the Company and its subsidiaries (together referred to as the Group) and the Groups interest in associates and jointly
controlled entities. The Group is involved primarily in construction and fertilizer industries as the cement business was sold as described in note 6 to
the consolidated nancial statements.
OCI owns directly the following consolidated subsidiaries:
Subsidiary
31/12/2008
31/12/2007
% of ownership
% of ownership
100.0%
100.0%
99.9%
99.9%
99.9%
99.9%
49.9%
99.9%
99.9%
60.5%
50.9%
50.0%
50.0%
100.0%
100.0%
99.9%
99.9%
99.9%
99.9%
49.9%
89.9%
60.5%
50.9%
50.0%
50.0%
Financial statements
2 BASIS OF PREPARATION
STATEMENT OF COMPLIANCE
The consolidated nancial statements include the nancial statements for all subsidiaries that are controlled by Orascom Construction Industries
Company (the Group). The nancial statements of the parent and its subsidiaries are prepared in accordance with Egyptian Accounting
Standards and applicable Egyptian laws and regulations.
The consolidated nancial statements were authorized for issuance by the Board of Directors on 14 April 2009.
BASIS OF MEASUREMENT
The consolidated nancial statements have been prepared on the historical cost basis except for derivative nancial instruments, nancial
instruments at fair value through prot and loss, and available for sale nancial assets, which are measured at fair values. The methods used to
measure fair values are discussed further in the notes below.
FUNCTIONAL AND REPORTING CURRENCIES
These consolidated nancial statements are presented in Egyptian Pounds (LE); the companys Board of Directors changed the Companys
functional currency to US Dollars ($) starting 01/10/08. The change was made as the US Dollar is now the currency that inuences the revenues of
the Company and its nancing.
The presentation currency remains the Egyptian Pounds as the local regulations require the Company to maintain its share capital in Egyptian
Pounds.
All the amounts presented to the nearest million Egyptian Pounds.
USE OF ESTIMATES AND JUDGMENTS
The preparation of the nancial statements requires management to make judgments, estimates and assumptions that affect reported amounts
of assets and liabilities, income and expenses during the nancial years. Actual results may differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised
and in any future periods affected. In particular, information about signicant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most signicant effect on the amount recognized in the nancial statements are described in the following notes:
Note 10
Note 12
Note 16
Note 23
Note 28
Note 31
Note 34
Leased assets
Intangible assets
Construction contracts in progress
Provisions
Share-based payments
Contingent liabilities
Financial instruments risks
Financial statements
Years
2.0-50.0
3.0-25.0
2.0-16.0
4.0-5.0
2.0-7.0
1.5-10.0
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
LEASED ASSETS
Agreements for assets leased from third parties are accounted for as operating leases in accordance with Egyptian Accounting Standards. Rent
payable on operating leases is charged in the income statement on a straight line basis over the term of the lease.
BORROWING COSTS CAPITALIZATION
Interest and commissions on credit facilities and loans that are directly attributable to the acquisition, construction or production of qualifying assets
are capitalized as part of the cost of those assets till the date of availability for use. All borrowing costs that do not meet the capitalization criteria
are recognized as expense in the consolidated income statement as incurred.
Financial statements
3.7 INVENTORIES
Inventories are measured at the lower of cost and net realizable value. An inventory of raw materials, spare parts and supplies cost are based on
weighted average principle or the rst in rst out method, and includes expenditure incurred in acquiring the inventories and bringing them to
their existing location and condition. In case of manufactured inventories and work in progress, cost includes an appropriate share of production
overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less the
estimated costs of completion and selling expenses.
Financial statements
3.12 PROVISIONS
A provision is recognized, if as a result of past event the Group has a present legal or constructive obligation that can be estimated reliably and it is
probable that an outow of economic benets will be required to settle the obligation. Management reviews the provisions at the balance sheet
date and makes adjustments to the provisions, if necessary, to reect the best estimate.
3.13 REVENUE
CONSTRUCTION CONTRACTS
As soon as the outcome of the construction contract is estimated reliably, contract revenues and expenses are recognized in prot or loss in
proportion to the stage of completion of the contract. Contract revenue includes the initial amount agreed in the contract plus any variations in
contract work, claims and incentive payments to the extent that is probable that they will result in revenue and can be measured reliably.
The stage of completion is assessed by reference to surveys of work performed. When the outcome of a construction contract cannot be
estimated reliably, contract revenue is recognized only to the extent of contract costs incurred that are likely to be recoverable. An expected loss on
contract is recognized immediately in prot or loss.
GOODS SOLD
Revenue from sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts
and volume rebates. Revenue is recognized when the signicant risks and rewards of ownership have been transferred to the buyer, recovery of
the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management
involvement with the goods. Transfers usually occur when the products are received by the customer; however for some international shipments
transfer occurs upon loading the goods onto the relevant carrier.
RENTAL INCOME
Rental income is recognized in the prot or loss on a straight line basis over the term of the lease.
Financial statements
Construction
Fertilizer
Elimination
Consolidated
LE million
LE million
LE million
LE million
Revenue
December 2008 external revenue
December 2008 intra-Group revenue
16,741.4
112.9
3,511.2
-
(112.9)
20,252.6
-
16,854.3
3,511.2
(112.9)
20,252.6
13,147.9
-
13,147.9
-
13,147.9
13,147.9
1,538.4
1,469.4
2,532.0
-
4,070.4
1,469.4
486.4
924.0
244.1
-
730.5
924.0
1,910.2
712.4
1,050.9
616.4
2,961.1
1,328.8
38,657.6
93,336.8
4,367.9
1,615.2
43,025.5
94,952.0
23,180.1
20,088.5
2,264.0
967.7
25,444.1
21,056.2
Operating prot
December 2008
December 2007
Depreciation and amortization
December 2008
December 2007
Capital expenditures
December 2008
December 2007
Total assets
December 2008
December 2007
Total liabilities
December 2008
December 2007
Financial statements
Egypt
Africa
Asia
Elimination
Consolidated
LE million
LE million
LE million
LE million
LE million
LE million
6,893.3
1,701.3
852.5
1,200.1
1,971.9
2,391.7
10,534.9
7,854.8
20,252.6
13,147.9
27,777.9
79,814.4
1,451.2
1,235.1
4,628.1
7,811.7
9,168.3
6,090.8
43,025.5
94,952.0
1,012.4
297.7
1,036.7
451.9
287.4
29.3
624.6
549.9
2,961.1
1,328.8
6 DISCONTINUED OPERATIONS
A SALE OF THE CEMENT SEGMENT
On 9 December 2007, Orascom Construction Industries signed an agreement with Lafarge SA (Lafarge) for the investment of the OCI cement
group through the sale of 1,277,721.0 shares presenting its investment in 99.9% of the issued share capital of Orascom Building Materials Holding
Company SAE (OBMH), from 31 December 2007, the effective date of the contract, which encompasses all cement related businesses. On 29
December 2007, OCI shareholders approved the agreement of sale at an Extraordinary General Meeting.
The sale price was 8.8 billion (LE 71.107 billion). The agreement included the assumption by Lafarge of OBMH total debt to a maximum of
$2.013 billion (LE 11.160 billion) due to OCI and lending banks to OBMH and its subsidiaries, of which $1,111.0 million (LE 6.159 billion) was due
to OCI as of 31 December 2007. The Company received $1.2 billion (LE 6.652 billion) on 24 January 2008 from Lafarge SA on account till nal
settlement.
The Company initially estimated the total liabilities, which were born initially by Lafarge SA on 31 December 2007, based on the consolidated
nancial statements prepared by Orascom Building Materials Holding, at $1.924 billion (LE 10.666 billion). The Company expected to return
$89.0 million (LE 493.4 million) to Lafarge SA from the amount which had been collected under the account. However, determining the total
outstanding actual liabilities as of 31 December 2008 show that the Company must instead return $173.2 million (LE 949.8 million), resulting in
a difference of $84.2 million (LE 456.4 million), which was charged to retained earnings (note 20). This was the nal completion adjustment with
Lafarge SA.
SALE TRANSACTION APPROVAL AND PROFIT DISTRIBUTION
On 29 December 2007, the Extraordinary General Meeting approved the following contracts which were signed with Lafarge SA (France) at
9 December 2007, according to the following:
(a) Agreement for sale of the company shares in OBMH to Lafarge SA France.
(b) Subscription shares agreement in Lafarges capital increase which will be subscribed in by Nassef Sawiris and other members of Sawiris Family.
The subscribers pay the dividends they receive from OCI. The subscription agreement states that OCI should subscribe partially or fully in Lafarge
capital increase in case the subscribers under the subscription agreement not fully or partially subscribe in Lafarge capital increase. The dividends
were distributed as planned and the subscription was carried out as planned.
The amount due from Lafarge was collected during the year.
Revenue
Cost of sales
Gross prot
Other expenses
Results from operating activities before tax
Income tax
Results from operating activities, net of income tax
Minority interest share in net prot of the cement segment for the year 2007
8,450.5
(4,474.1)
3,976.4
(492.6)
3,483.8
(39.5)
3,444.3
(933.3)
2,511.0
Revenue
Cost of sales
Gross prot
Other expenses
Net operating prot
Minority interest share in net prot of the year
Shareholders share in net prot of discontinued operations
2008
2007
LE million
LE million
48.0
(17.6)
30.4
(5.1)
(13.9)
333.9
(197.5)
136.4
(59.0)
77.4
(42.6)
11.4
34.8
25.3
Financial statements
2008
2007
LE million
LE million
(248.2)
(41.6)
304.6
74.3
(187.1)
105.4
14.8
(7.4)
2,044.2
(434.3)
1,609.9
Net prot realized from the investment sale in the consolidated nancial statements
1,433.5
(157.0)
(11.4)
(8.0)
7 JOINT VENTURES
A summary of the Groups share in the assets, liabilities, revenues, and expenses in the joint ventures relating to the construction activities according
to percentage of participation are as follows:
2008
2007
LE million
LE million
1,971.0
(1,679.5)
1,042.5
(819.9)
291.5
222.6
2008
2007
LE million
LE million
2,608.5
(2,429.5)
2,229.2
(2,076.4)
179.0
152.8
Notes
(13)
(12)
(13)
Pre-acquisition
carrying amounts
Fair value
adjustments
Recognized values
on acquisition
LE million
LE million
LE million
2,972.6
1,528.9
193.4
437.5
178.7
687.2
(1,596.4)
(2,435.2)
1,404.5
(269.7)
4,377.1
1,528.9
193.4
437.5
178.7
687.2
(1,596.4)
(2,704.9)
1,966.7
1,134.8
3,101.5
944.0
8,247.2
12,292.7
(687.2)
(944.0)
10,661.5
Financial statements
Land
construction
Machinery
and
equipment
173.0
77.2
93.2
-
741.8
162.4
136.0
-
1,745.1
1,240.4
4,464.7
(2.8)
112.0
32.9
9.3
(1.5)
244.5
152.4
16.4
(0.8)
66.5
10.6
(1.2)
45.8
62.7
6.5
(1.1)
3,128.7
1,738.6
4,726.1
(7.4)
(30.7)
(1.8)
27.1
(75.0)
(52.3)
(259.0)
(2.6)
(10.5)
(13.9)
(24.9)
15.2
(2.9)
(4.6)
(15.0)
(61.8)
(389.1)
310.9
992.3
7,136.1
139.6
373.7
88.2
94.3
9,135.1
8.5
1.0
141.3
111.4
857.4
518.6
54.6
19.7
124.9
54.6
34.6
14.4
23.2
10.8
1,244.5
730.5
16.4
300.2
5.9
7.3
2.6
332.4
(1.3)
(0.9)
(0.2)
(0.9)
(0.4)
(3.7)
(5.1)
(0.4)
(3.1)
(4.0)
(41.3)
(119.6)
(3.1)
(6.0)
(11.3)
(24.8)
1.2
(2.6)
(2.0)
(7.1)
(64.7)
(164.5)
4.0
262.0
1,514.0
70.2
150.5
46.7
27.1
2,074.5
306.9
730.3
5,622.1
69.4
223.2
41.5
67.2
7,060.6
164.5
600.5
887.7
57.4
119.6
31.9
22.6
1,884.2
Buildings
and
Cost
Balance at 01/01/08
Additions
Acquisition through business combination
Disposals through business combination
Effect of movements in exchange rates/
adjustments
Disposals
Balance at 31/12/08
Accumulated depreciation
Balance at 01/01/08
Depreciation for the year
Subsidiaries accumulated depreciation at
acquisition
Subsidiaries accumulated depreciation at
disposal
Effect of movements in exchange rates/
adjustments
Disposals accumulated depreciation
Balance at 31/12/08
Furniture
and ofce
equipment
Vehicles
Information
systems
Tools and
supplies
Total
31/12/2008
31/12/2007
LE million
LE million
Fixed assets
Assets under construction
7,060.6
2,851.7
1,884.2
1,589.2
Total
9,912.3
3,473.4
Cost
31/12/08
Accumulated
depreciation
31/12/08
Net
31/12/08
LE million
LE million
LE million
20.7
10.5
44.5
(13.6)
(2.8)
(7.3)
7.1
7.7
37.2
Total
75.7
(23.7)
52.0
Assets under construction includes machinery and equipment under installation amounted to LE 510.9 million belongs to Sorfert Algrie.
10 LEASED ASSETS
OCI and other subsidiaries leased equipment from others. The rental value of the leased assets amounted to LE 147.7 million to be paid over
periods ranging from 36 to 108 months in annual rent up to LE 83.2 million. The sales value of these leased assets at the end of the term of the
contracts amounted to LE 5.2 million.
12 INTANGIBLE ASSETS
2008
2007
LE million
LE million
Initial goodwill*
Other
9,907.4
2.6
55.0
9.8
Total
9,910.0
64.8
* The balance amounted to LE 9.9 billion representing the goodwill of the Egyptian Fertilizers Company, included in the long-term assets as
explained in note 8.
Financial statements
2008
2007
Country
LE million
LE million
50%
40%
Egypt
Egypt
Egypt
Belgium
68.1
28.9
25.0
13.6
894.6
54.0
17.5
42.1
4.9
135.6
1,013.1
Total
* The accounts for this investment have been fully consolidated as a result of acquiring control during the year. The investments, which was 20%
held by a subsidiary company, was sold before acquisition of the company as explained in note 8. Prot on the sale is as follows:
LE million
1,838.6
(894.6)
944.0
14 INVENTORIES
2008
2007
LE million
LE million
Raw materials
Spare parts and fuel
Work in progress
Finished goods
Developed land for sale
1,013.2
234.8
67.4
82.9
63.8
545.0
31.2
91.4
5.1
61.6
Total
1,462.1
734.3
2007
LE million
LE million
4,877.9
3,343.8
14.5
3,517.2
1,874.2
18.8
Total
8,236.2
5,410.2
* The debtors and other debit balances as of 31 December 2008 include advance payments and debit balances for suppliers and subcontractors
amounting to LE 607.6 million (2007, LE 375.0 million).
2008
2007
LE million
LE million
23,304.7
2,143.5
25,448.2
(25,854.1)
13,322.0
919.6
14,241.6
(14,383.0)
(405.9)
(141.4)
1,193.8
(1,599.7)
766.0
(907.4)
(405.9)
(141.4)
In determining the revenue and costs to be recognized each year for work to be carried out on construction contracts, estimates are made to the
nal outcome on each contract. Management continually reviews these estimates and makes adjustments and provisions where necessary.
2007
LE million
LE million
Cash on hand
Banks: current accounts
Banks: time deposits*
7.3
3,349.6
4,911.8
17.1
3,517.7
382.2
Total
8,268.7
3,917.0
* Banks time deposits include blocked deposits of LE 598.1 million held as collateral against letters of guarantee, letter of credit and short-term
loans of OCI and its subsidiaries (2007, LE 31.3 million).
Financial statements
18 SHARE CAPITAL
AUTHORIZED CAPITAL
The Companys authorized capital is LE 5.0 billion.
ISSUED AND PAID IN CAPITAL
As at 31 December 2007, the Companys issued and fully-paid capital is LE 1,009,979,185.0 divided into 201,995,837 common shares at a par
value of LE 5.0 each.
On 15 March 2007, at the Extraordinary General Meeting, the Company approved the issue of 12,774,877 ordinary shares at the fair value of
LE 3,933,767,875.0 at LE 307.93 per share (after deducting the cash dividend distribution to the shareholders for the nancial year ended
31 December 2007 amounting to LE 300.0 per share in two installments). The total price of $715.5 million fully allocated to Abraaj Capital
Company shareholders. The Companys shareholders relinquished the priority right to subscribe in the increase of the share capital based on the
approval of the general assembly referred to above. On 23 April 2008, the Capital Market Authority approved this increase. The fair value of
the allocated shares represents the par value of shares increase of LE 63,874,385.0 at LE 5.0 per share, and the balance of LE 3,869,893,490.0
representing the difference between the fair value of the shares and the par value of such shares (premium) of LE 302.93 was included in the
calculation of other reserves in the shareholders equity. On 29 April 2008, this increase was recorded in the commercial register of the Company.
As a result, the Companys issued and paid share capital at 31 December 2008 is LE 1,073,853,570.0 divided into 214,770,714 shares at the par
value per share of LE 5.0 each.
OCIs shares have been listed in the Egyptian Stock Exchange since March 1999. In September 2002, the Company listed part of its shares
(74%) on the London Stock Exchange in the form of Global Depository Receipts (GDRs), each represents two shares. The Bank of New York was
appointed to act as the depository bank.
19 RESERVES
LEGAL RESERVE
According to the Companys articles of incorporation, 5% of annual net income is set aside as a legal reserve. Setting aside this percentage stops
when the total accumulated reserve reaches 50% of the Companys issued capital. If the reserve falls below the dened level (50% of the issued
share capital), then the company is required to resume settling aside 5% of the annual prot until it reaches 50% of the issued share capital. This
reserve is used to increase the Companys issued capital or to cover the Companys losses. The legal reserve amounted to LE 504,989,592.0 at 31
December 2008.
OTHER RESERVES
According to the Companys articles of incorporation, the General Assembly can establish and use other reserves from annual net income upon a
recommendation by the Board of Directors.
A summary of other reserves balances as of 31 December 2008 as follows :
2008
2007
LE million
LE million
Special reserve
Hedge reserve
5,773.1
(94.7)
1,815.4
(40.8)
Total
5,678.4
1,774.6
Special reserve includes the additional paid in capital from issuance of stock amounted to LE 1,815.0 million and LE 3,869.0 million in the years
2006 and 2008 respectively.
20 RETAINED EARNINGS
The adjustments to retained earnings consist of the effect of the following:
2008
2007
LE million
LE million
456.4
(11.2)
32.2
Total
445.2
32.2
21 TREASURY STOCK
At 31 December 2008, the company owned shares are 8,208,281 shares as follows:
- 7,168,225 shares acquired by the parent company for an amount of LE 1,557.6 million.
- 1,040,056 shares acquired by OCI ESOP Limited (a subsidiary) under employees share-based option.
The net cost of acquisition of shares and GDRs of OCI including share dividends adjusted for the share dividends and split as follows:
2008
2007
LE million
LE million
1,040,056.0
1,129,047.0
110.3
106.09
143.8
140.4
264.0
94.4
83.6
646.0
572.2
1,153.2
Financial statements
22 LOANS
The Company and its subsidiaries issued bonds and obtained loans and bank facilities from various lending institutions.
As of 31 December 2008, the outstanding balances which included in current and non-current liabilities were as follows:
Lending institution
Interest rate
Syndication loan
(Misr Bank others)
BESIX Group
Variable
Average 7% variable
Variable
Alico Egypt
Variable
Arab Bank
Barclays Bank
Bank of Alexandria
Variable
OCI Mepco
Commercial facilities
Variable
Total 31/12/08
Total 31/12/07
During the year, the Company repaid $442.0 million (LE 2.4 billion) after acquiring the Egyptian Fertilizers Company, to settle the debt due by that
company in accordance with the purchase agreement, and has taken the necessary steps to release the mortgages on production lines one and two.
92 ORASCOM CONSTRUCTION INDUSTRIES
ANNUAL REPORT 2008
Outstanding amount
Long-term portion
31/12/08
31/12/08
Short-term portion
31/12/08
LE million
LE million
1,921.0
960.5
1,136.5
5,179.3
5,179.3
660.6
464.3
1.4
17.3
17.3
247.9
247.9
2.6
1,237.2
10.4
41.2
34.6
7.7
24.9
902.1
902.1
11,424.7
7,754.1
3,670.6
11,682.6
1,034.9
10,647.7
24.9
- Promissory notes for full amount
Financial statements
23 PROVISIONS
2008
2007
LE million
LE million
2,307.1
194.4
44.2
(20.6)
510.2
1,944.5
(147.6)
2,525.1
2,307.1
633.7
1,891.4
324.8
1,982.3
2,525.1
2,307.1
2008
2007
LE million
LE million
157.5
455.9
199.6
386.4
Total
613.4
586.0
2007
LE million
LE million
3,439.3
3,361.3
1,430.1
66.7
20.5
1,934.0
1,248.1
1,435.4
3.6
Total
8,317.9
4,621.1
2008
2007
LE million
LE million
15.0
109.9
(60.8)
9.1
123.6
(13.3)
64.1
119.4
27 INCOME TAXES
Income tax expense on continuing operations recognized in the consolidated income statement as follows:
2008
2007
LE million
LE million
456.7
119.2
87.5
(5.5)
575.9
82.0
2008
2007
LE million
LE million
4,574.7
20%
914.9
1,391.2
20%
278.2
10.0%
6.3%
28 SHARE-BASED PAYMENTS
OCI has a plan to provide some of its employees with stock options on its shares. According to this plan, OCI ESOP Limited, purchases OCI
shares from the stock market equivalent to the value of options granted to employees. This purchase is nanced by a loan guaranteed by OCI.
The exercise price of the options granted to employees is equal to the fair market value of the shares on the date of grant. When the options
vest, the employee has the right to exercise the options by payment of the full option price. Payment may be by cash, OCI shares owned for at
least six months, delivery of an employee promissory note bearing interest and secured by a pledge of the OCI shares purchased by the note,
or consideration received from OCI ESOP under a cashless exercise program implemented in connection with the plan. Payments received from
employees for options exercised are used by OCI ESOP Limited to repay the outstanding loan due to OCI or to nance the purchase of other
options.
On 27 December 2006, the shareholders approved at an Extraordinary General Meeting to issue shares at nominal value with a ceiling of 1% of
the current issued shares, in order to meet any of the Companys obligations under share-based payments relating to the incentive programs for
employees and managers, subject to the approval of the regulatory authorities.
Financial statements
Average per
share exercise
price
Average per
share market
price
Shares
LE
LE
Balance at 31/12/02
Options granted 2003
Options exercised 2003
257,731
250,000
(257,731)
20.18
10.46
(20.18)
23.16
11.36
(92.75)
Balance at 31/12/03
Options granted 2004
Options exercised 2004
250,000
617,808
-
10.46
36.50
-
72.51
36.02
-
Balance at 31/12/04
Options granted 2005
Options exercised 2005
Options cancelled 2005
867,808
1,161,708
(49,767)
29.00
80.41
-
72.54
81.58
-
Balance at 31/12/05
Options granted 2006
Options exercised 2006
Options cancelled 2006
1,979,749
625,541
(37,073)
58.43
224.82
-
218.67
221.42
-
Balance at 31/12/06
Options granted 2007
Options exercised June 2007
Options exercised December 2007
2,568,217
687,594
(867,808)
(307,700)
97.51
274.68
(29.0)
(200.43)
275.90
273.60
(286.0)
(545.0)
Balance at 31/12/07
Options granted 2008
Options exercised 2008
2,080,303
628,319
(306,272)
167.88
397.99
(96.09)
572.20
405.26
(311.12)
Balance at 31/12/08
2,402,350
237.22
140.36
The fair value of services received in return for share options granted are measured by reference to the fair value of share options granted.
29 DIVIDENDS
On 15 March 2008 the Company General Assembly decided dividends to be in US Dollars, in accordance with the exchange rate at 23 March
2008 as follows:
- LE 300.0 per share to shareholders until the end of trading 24 March 2008 in two installments for an aggregate amount of LE 60.6 billion.
- LE 5.0 per share to shareholders until the end of trading 15 April 2008 for an aggregate amount of LE 1.1 billion.
The Company General Assembly on 30 August 2008 decided to distribute LE 4,871.0 million to be paid in different dates and amounts, and
delegate the Board of Directors to decide on the time and amount of each of the payments. The Board decided a rst payment on 31 August
2008 of $1.0 per share with an aggregate dividend of LE 1,177.0 million.
Also on 15 March 2009, the Board decided a dividend of $1.0 per share for an aggregate amount of LE 1,164.0 million.
On 30 March 2009, the Board decided to form a statutory reserve of LE 31,937,193.0 and to delegate the Board of Directors to decide on the
timing and payments to shareholders and employees of the remaining retained prots of the year 2008 amounted to LE 2,022,665,898.0 and to
decide on the timing and payments of prots to shareholders on the remaining retained prots of 2007.
96 ORASCOM CONSTRUCTION INDUSTRIES
ANNUAL REPORT 2008
2007
LE million
LE million
5,366.7
66,020.9
(0.4)
(172.9)
(6.0)
5,366.3
65,842.0
(1,444.9)
(64,820.5)
3,921.4
1,021.5
Millions of shares
Millions of shares
202.0
8.6
210.6
202.0
202.0
Less:
Weighted average number of treasury stock during the year
Adjusted weighted average number of shares outstanding during the year (in million share)
(2.8)
207.8
(1.1)
200.9
25.82
327.7
18.87
5.08
Less:
Net prot from discontinued operations
31 CONTINGENT LIABILITIES
GUARANTEES
Letters of guarantee issued by banks for OCI and its subsidiaries in favor of others as at 31 December 2008 amounted to LE 8.3 billion
(31 December 2007, LE 5.5 billion).
Outstanding letters of credit as at 31 December 2008 (uncovered portion) amounted to LE 219.6 million (31 December 2007, LE 460.2 million).
OCI guarantees loans provided to a subsidiary amounting to $224.9 million. The subsidiary has undertaken not to sell, lease, lend or transfer any
assets except within the Group, and is committed not to merge, divest, or discontinue any of its operations.
OCI guarantee liabilities under construction contracts carried out by a subsidiary company to a maximum of LE 20.0 million ($3.5 million).
GUARANTEES UNDER THE AGREEMENT WITH LAFARGE
The agreement with Lafarge for the sale of the cement business states that the parties ensure that each group company and member of OCIs
Group are to be released from all guarantees and indemnities they have given to another group company or member of OCIs Group as the
case may be. Pending such release OCI indemnies that group company and Lafarge indemnies that member against all liabilities under those
guarantees and indemnities.
Lafarges ability to claim against a warranty in the sale agreement is limited to certain circumstances note 6.
Financial statements
32 COMMITMENTS
At 31 December 2008, capital commitments of the Group for purchasing xed assets amounted to approximately LE 4.8 billion and for
investments in securities LE 1.2 million.
Received
Value
Currency
Value
Currency
Average
conversion rate per
contract
3,320,million
Yen
34,2 million
US Dollar
96.93
Fair value at
31/12/08
90.91
Financial statements
31/12/05
31/12/06
31/12/07
31/12/08
LE 000
LE 000
LE 000
LE 000
LE 000
Construction revenue
Fertilizer revenue
Cement revenue
Concessions / materials revenue
Elimination of intra-group revenue
6,413,365
2,254,847
597,790
(710,208)
9,070,808
3,295,247
(999,461)
13,147,511
4,948,099
(1,620,411)
13,481,740
-
16,600,680
3,511,199
651,744
(511,069)
Total revenue
8,555,794
11,366,594
16,475,199
13,481,740
20,252,554
5,391,593
-
7,836,426
-
10,836,670
-
(11,172,459)
-
(14,143,009)
(807,397)
Cement cost
Concessions / materials cost
Elimination of intra-group cost
1,106,026
429,644
(726,331)
1,585,456
(1,020,566)
2,288,961
(1,616,518)
(513,080)
511,069
6,200,932
8,401,316
11,509,113
(11,172,459)
(14,952,417)
522,681
719,723
1,149,458
(849,056)
(1,293,923)
1,832,181
2,245,555
3,816,628
1,460,225
4,006,214
14,889
(1,482)
(117)
19,721
28,139
(329,583)
507
76,755
(59,720)
61,983
(73,089)
(5,414)
27,678
100,082
20,366
(392,285)
35,279
312,968
(29,283)
106,356
210,085
13,762
51,846
21,050
72,991
(567,080)
5,475
(181,126)
323,242
44,920
129,041
116,004
(604,885)
-
676,936
493,951
1,803
64,117
(668,431)
-
(250,891)
58,285
(266,641)
8,322
568,377
1,581,290
2,303,840
3,549,987
1,468,547
4,574,591
(77,212)
(402,790)
(114,443)
(489,167)
(136,378)
(742,891)
(82,036)
2,511,048
62,274,782
(151,367)
(575,841)
11,382
1,433,457
(76,894)
1,101,288
1,700,230
2,670,718
66,020,974
5,366,696
5.63
0.85
8.65
1.89
12.93
5.50
327.70
305.00
25.8
310.5
31/12/04
31/12/05
31/12/06
31/12/07
31/12/08
LE 000
LE 000
LE 000
LE 000
LE 000
1,576,363
1,653,045
5,666,664
5,518,146
1,177,638
2,168,316
1,678,902
8,182,779
6,672,420
2,134,916
2,738,067
3,196,684
11,008,340
9,104,053
6,441,241
3,917,025
765,992
89,739,810
1,883,788
1,589,625
8,268,710
8,236,229
19,858,932
7,060,618
2,851,668
12,531,126
17,610,360
28,616,330
94,951,996
43,025,494
982,983
3,132,092
4,430,462
3,569,400
1,486,917
3,044,347
1,343,855
3,353,496
5,245,180
6,135,671
1,965,285
4,264,224
2,987,693
5,868,789
9,865,069
7,591,153
2,488,380
8,671,728
10,647,706
907,399
17,349,754
3,706,422
1,048,773
72,847,047
3,670,552
8,317,906
14,678,641
10,765,669
226,736
17,354,448
11,044,209
15,645,075
26,127,950
94,951,996
43,025,494
12.87%
42.34%
1.28
0.66
14.96%
46.53%
1.56
0.85
16.21%
41.29%
1.12
0.70
10.28%
90.84%
5.17
0.11
19.7%
33.0%
1.35
0.2
1 Net income available for shareholder dividends, after deducting the employees prot share, divided by the
weighted average number of shares outstanding during the period.
2 Total cash dividend paid for each year divided by current number of shares of 190,575,000.
3 Net income as a percentage of sales.
4 Net income as a percentage of average total shareholders equity.
5 Current assets to current liabilities.
6 Net debt to internal nance (shareholders equity plus minority interests).
Financial statements
31/12/05
31/12/06
31/12/07
31/12/08
$ 000
$ 000
$ 000
$ 000
$ 000
Construction revenue
Fertilizer revenue
Cement revenue
Concessions / materials revenue
Elimination of intra-group revenue
1,058,311
372,087
98,645
(117,196)
1,558,558
566,194
(171,729)
2,286,524
860,539
(281,811)
2,381,596
-
3,046,835
644,434
119,619
(93,800)
Total revenue
1,411,847
1,953,023
2,865,252
2,381,596
3,717,088
889,702
182,513
70,898
(119,857)
1,346,465
272,415
(175,355)
1,884,638
398,080
(281,134)
(1,973,654)
-
(2,595,762)
(148,187)
(94,169)
93,800
1,023,256
1,443,525
2,001,585
(1,973,654)
(2,744,318)
86,251
123,664
199,906
(149,989)
(237,482)
302,340
385,834
663,761
257,953
735,288
2,457
(245)
(19)
3,254
4,677
(54,387)
84
12,666
(9,855)
10,650
(12,558)
(930)
4,756
17,196
3,499
(67,403)
6,062
53,775
(5,031)
18,497
36,537
2,393
9,017
3,661
12,694
(98,623)
952
(31,500)
57,102
7,935
22,796
20,492
(106,855)
-
124,243
90,658
331
11,768
(122,682)
-
(41,401)
10,015
(46,372)
1,470
104,318
260,939
395,849
617,389
259,424
839,606
(12,741)
(66,467)
(19,664)
(84,049)
(23,718)
(129,198)
(14,492)
443,585
11,001,057
(26,739)
(105,688)
2,089
263,092
(14,113)
Net income
181,731
292,136
464,473
11,662,835
984,986
0.93
0.14
1.49
0.32
2.25
0.96
57.89
55.85
4.70
57.00
31/12/04
31/12/05
31/12/06
31/12/07
31/12/08
$ 000
$ 000
$ 000
US$ 000
US$ 000
260,126
272,780
935,093
910,585
194,330
376,444
291,476
1,420,621
1,158,406
370,645
478,683
558,861
1,924,535
1,591,618
1,126,091
706,534
138,166
16,186,834
339,789
286,729
1,503,456
1,497,551
3,610,846
1,283,795
518,504
2,067,843
3,057,354
5,002,855
17,126,983
7,823,102
162,208
516,847
731,099
589,010
245,366
502,367
233,308
582,204
910,622
1,065,221
341,195
740,317
522,324
1,026,012
1,724,663
1,327,125
435,031
1,516,036
1,920,582
163,672
3,129,465
668,547
189,173
13,139,799
667,397
1,512,402
2,668,941
1,957,466
41,226
3,155,469
1,822,477
2,716,159
4,567,824
17,126,983
7,823,102
12.87%
42.68%
1.28
0.66
6.06
-
14.96%
47.02%
1.56
0.85
5.76
5.82
16.21%
41.17%
1.12
0.70
5.72
5.75
10.28%
90.84%
5.17
0.11
5.5440
5.6608
19.7%
33.0%
1.35
0.2
0.1818
0.1835
1 Net income available for shareholder dividends, after deducting the employees prot share, divided by the
weighted average number of shares outstanding during the period.
2 Total cash dividend paid for each year divided by current number of shares of 190,575,000.
3 Net income as a percentage of sales.
4 Net income as a percentage of average total shareholders equity.
5 Current assets to current liabilities.
6 Net debt to internal nance (shareholders equity plus minority interests).
Additional information
BOARD OF DIRECTORS
CORPORATE OFFICERS
CONSTRUCTION GROUP
ONSI SAWIRIS
Chairman
NASSEF SAWIRIS
Chief Executive Ofcer
OSAMA BISHAI
Managing Director
Orascom Construction
NASSEF SAWIRIS
Director
SALMAN BUTT
Chief Financial Ofcer
SALMAN BUTT
Director
NICOLAS ESTAY
Executive Vice President Europe
OSAMA BISHAI
Director
KEVIN STRUVE
Strategic Planning Director
KARIM CAMEL-TOUEG
Director
DALIA KHORSHID
Corporate Treasurer
JRME GUIRAUD
Director
FADY KIAMA
Corporate Controller
SAMI HADDAD
Independent Director
HASSAN BADRAWI
Project Development Director
ALADDIN SABA*
Independent Director
SHERIF TANTAWY
Project Development Director
ARIF NAQVI*
Independent Director
HUSSEIN MAREI
General Counsel
HASSAN ABDALLA*
Independent Director
HEBA ISKANDER
Corporate Development Director
JOHAN BEERLANDT
Chief Executive Ofcer
BESIX Group
KARIM CAMEL-TOUEG
President
Contrack Group
PHILIP MEGALLY
President
Cementech
JOHN BARACAT
Managing Director, Subsidiaries
(NSF, NPC, Alico, UPC, SCIB, SIDC)
FERTILIZER GROUP
HOSSAM KHATTAB
Managing Director
Egyptian Fertilizers Company
AMR HASSABALLAH
Managing Director
Egypt Basic Industries Corporation
ADEL BISHAI
Corporate Governance Director
INVESTOR RELATIONS
SHAREHOLDER INFORMATION
OMAR DARWAZAH
Investor Relations Manager
omar.darwazah@orascomci.com
CORPORATE OFFICE
Nile City Towers
2005A Corniche El Nil
Cairo, Egypt 11221
ERIKA WAKID
Investor Relations Ofcer
erika.wakid@orascomci.com
Telephone:
WWW.ORASCOMCI.COM
Fax:
104 ORASCOM CONSTRUCTION INDUSTRIES
ANNUAL REPORT 2008
CONSTRUCTION GROUP
FERTILIZER GROUP
CEMENTECH (100%)
Specialized engineering, procurement and construction services on
cement plants
ORASCOM ROAD CONSTRUCTION (90%)
Asphalt and concrete paving
CONSTRUCTION MATERIALS
NATIONAL STEEL FABRICATION (100%)
Steel cutting, bending, welding, and painting services
ALICO EGYPT (50%)
Building facade, curtain walling, and window systems
UNITED PAINTS & CHEMICALS (50%)
Cement based, ready mix mortars with investments in:
- Egyptian Gypsum Company (50%)
- BASF (50%)
- A-Build Egypt (50.1%)
NATIONAL PIPE COMPANY (40%)
Concrete pipe manufacturer
SCIB CHEMICAL (15%)
Paints and building chemicals manufacturer
PROPERTY MANAGEMENT
SUEZ INDUSTRIAL DEVELOPMENT COMPANY (60.5%)
Industrial park developer and operator
CONTRACK FM (100%)
Facilities management company