RAYA HOLDING (RAYA.CA) Earnings Release: 1Q2017

Transcription

1 RAYA HOLDING Results Cairo, Egypt May 29 th, 2016: Raya Holding (RAYA.CA on the Egyptian Stock Exchange), is an investment conglomerate managing a diversified investment portfolio, announces its consolidated results for ; reporting total consolidated revenues of EGP 1,479.4 million with 32.9% increase over, gross profit of EGP million with 101.5% increase over, EBITDA of EGP million with 196.7% increase over and net income after tax and minority interest of EGP 39.1 million with % increase over. VS. 1, ,479.4 EGP 1,479.4 M 1Q2015 1, Q EGP M 1Q Margin 18.8% 1Q EBITDA EBITDA EGP M Margin 9.3% 1Q2015 1Q Net Income EGP 39.1 M Net Income (1.9) 1Q Margin 2.6% 1Q

2 Business Highlights Total for the Trade LOB up 22.9% to reach EGP million from EGP million in 1Q 2016 and gross profits up 90.2% to EGP million, with a gross margin increase by 4.6 percentage points to 13.0% from 8.4%. Total for the IT LOB up 26.5% to reach EGP million from EGP million in 1Q 2016 and gross profits up 87.1% to EGP 35.7 million, with a gross margin increase by 5.5 percentage points to 16.9% from 11.5%. Total for the Call Center LOB up 105.5% to reach EGP million from EGP 84.7 million in 1Q 2016 and gross profits up 135.5% to EGP 78.3 million, with a gross margin increase by 5.7 percentage points to 45.0% from 39.2%. Total for the Smart Buildings LOB up 100.2% to reach EGP 13.1 million from EGP 6.6 million in 1Q 2016 and gross profits up 104.6% to EGP (4.2) million, with a gross margin decrease by 0.7 percentage points to (32.1%) from (31.4%). Total for the International Services LOB up 135.6% to reach EGP 22.3 million from EGP 9.5 million in 1Q 2016 and gross profits up 560.9% to EGP 11.7 million, with a gross margin increase by 33.7 percentage points to 52.4% from 18.7%. Total for Data Center up 54.4% to reach EGP 8.9 million from EGP 5.8 million in 1Q 2016 and gross profits up 14.3% to EGP 3.6 million, with a gross margin decrease by 13.9 percentage points to 39.7% from 53.6%. Total for Ostool up 17.6% to reach EGP 56.5 million from EGP 48.0 million in 1Q 2016 and gross profits up 5.9% to EGP 14.2 million, with a gross margin decrease by 2.8 percentage points to 25.1% from 27.8%. Total for BariQ up 99.7% to reach EGP 36.9 million from EGP 18.5 million in 1Q 2016 and gross profits up 259.3% to EGP 10.3 million, with a gross margin increase by 12.4 percentage points to 27.9% from 15.5%. Total for Restaurants up 99.5% to reach EGP 8.9 million from EGP 4.4 million in 1Q 2016 and gross profits up 162.9% to EGP 2.2 million, with a gross margin increase by 5.9 percentage points to 24.3% from 18.5%. Total for Manufacturing & Expert up 86.7% to reach EGP 38.2 million from EGP 20.4 million in 1Q 2016 and gross profits up 105.3% to EGP 5.1 million, with a gross margin increase by 1.2 percentage points to 13.4% from 12.2%. Total for Aman record EGP 2.5 million in 1Q 2017 and gross profits of EGP 539K, with a gross margin 21.7%. Split Split 11.8% 14.2% 2.6% 62.7% Trade IT Contact Center Smart Buildings International Services Ostool Data Center BariQ Restaurants 14.9% 1.8% 67.8% Trade IT Contact Center Smart Buildings International Services Ostool Data Center BariQ Aman Restaurants Manufacturing & Export Manufacturing & Export 2

3 Trade Line of Business RAYA HOLDING (RAYA.CA) Raya's Trade line of business caters primarily to the consumer market through three main functions; distribution, retail and maintenance services for mobile phones, consumer electronics, and IT products of various global brands. Raya Trade sells directly to the end consumer through its retail outlets, distributes through an extensive network to wholesalers, and provides maintenance for mobile phones and IT products. Raya is the sole level 3Nokia maintenance in Egypt servicing 14 countries in North and East Africa. 1, EGP million Raya Trade s up 22.9% from, and gross profit increased by 90.2% from. Handset sales Handset sales decreased by 54% to 294 K units in compared to 641 K units in. Outlets Numbers of Raya stores increased to reach 47 stores in compared to 43 stores in Mega stores: 8 stores in. Raya Stores: 39 stores in. Handsets services The number of handsets serviced in increased by 4% to 90K units compared to 86K units in. IT Product Mix. 14% Xerox 7% Apple 41% Microsoft 21% FUJITSU 14% 3% Cannon Others 3

4 Information Technology Line of Business Through its Information Technology Line of Business, Raya provides businesses with the ideal mix of technology solutions to meet the unique requirements of their operations, including worldclass technology products, as well as business solutions and value-added services. Raya IT provides services that fall under three main categories: Infrastructure, Business Solutions and Outsourced Services EGP million Raya IT s are up by 26.5% from, and gross profit increased by 87.1% from. IT Breakdown 1Q 2017 Manufacturing 3% Government 2% Oil & Gas 3% Commercial 4% Real Estate 1% General Business 4% Telecommunication 12% Banking 72% 4

5 Call Center Line of Business RAYA HOLDING (RAYA.CA) Raya Contact Center is a world-class Business Process Outsourcing (BPPO) and Contact Center Outsourcing (CCO) Service Provider offering contact center services, back office services, inside sales channel management and professional services. Raya Contact Center caters to clients, including global Fortune 1000 companies in Middle East, Europe, Africa, & North America in 25 different languages. Raya Contact Center serves its clients from eight contact center facilities located in Cairo, Alexandria, Hurghada, and Assiut, Egypt, Dubai, UAE, and Warsaw, Poland EGP million % Raya Call Centers s up 105.5% from, and gross profit increased by 135.5% from. Call Center mix Call Center revenue mix in represented 21% local revenues and 79% offshore revenues. 21% International Local 5

6 Smart Building Line of Business Raya Holding expanded its investments into the smart buildings development market through the establishment of Raya Smart Buildings line of business. The new Line of Business' strategy is to develop green & smart office/commercial building complexes, leveraging on Raya's comprehensive and well-grounded expertise in IT and infrastructure industry and following LEED (Leadership in Energy and Environment Design) international green building certification for energy savings, water efficiency, CO2 emissions reduction, and indoor environmental quality developed by the U.S. Green Building Council (USGBC) (2.0) (4.0) (6.0) EGP million 13.1 (4.2) 6.6 (2.1) Raya Smart Buildings s up 100.2% from while gross profit decreased by 104.6% from. Raya Smart Buildings Currently has a total land block of 27,690 square meters with 115,000 square meters build-up-area in 6th of October, New Cairo & Smart Village with a planned total investment of EGP 700 million. 6

7 International services Line of Business Raya grouped its regional IT business under Raya International Services, serving the regional markets with a special focus on Saudi Arabia, Gulf, Levant, and North Africa through a resource pool based in Egypt. Raya International Services offers its regional clients an ideal mix of IT solutions, including but not limited to ERP systems, e-government solutions, software development services and technology infrastructure services. The objective of this restructuring is to focus on the promising regional market, especially Saudi Arabia which alone constitutes around 50% of the whole regional market EGP million Raya International Services s up 135.6% from, and gross profit increased by 560.9% from. Business on hand: Projects Backlog in YE2017 reached USD 1.9 million, while Sales in reached USD 899K, and in reached USD 1.2 million, summing up to Business on Hand of USD 1.6 million. 7

8 Data Center Line of Business RAYA HOLDING (RAYA.CA) Raya Data Center delivers enterprise-level hosting services to businesses of all sizes and kinds, integrating the industry s best technologies tailored to meet each and every customer s needs. With a commitment to professional around-the-clock support, Raya Data Center provides customers with expertmanaged hosting solutions, from simple web servers to sophisticated ERP applications, solutions, cloud-driven platforms, and security and storage services. Raya Data Center s service portfolio includes co-location, managed hosting, cloud computing, disaster recovery, professional services and outsourcing services EGP million Raya Data Center s up 54.4% from, and gross profit increased by 14.3% from. Business Updates Mega Projects Raya Data Center s Team completed the implementations and migrations for all Raya Holding Services to Raya Holding Private Cloud. Raya Data Center Team successfully completed a 3 phase s mega project to migrate all Raya Holding servers, applications and infrastructure to a new private cloud environment using the cutting-edge cloud computing technologies. This sophisticated migration project completion enabled Raya holding businesses to smoothly move to the cloud, while minimizing the time and money invested in purchasing, deploying and maintaining a new infrastructure, depending on Raya Public Cloud state-of-art infrastructure from world leading cloud computing technology providers. NEW CUSTOMERS Raya Data Center Wins a Mega Deal with an emerging Insurance Provider in Egypt Raya Data Center has successfully won a Cloud SaaS Collaboration deal with an emerging Insurance Provider in Egypt. The scope is to Offer collaboration with 24/7 support for the organization s End users. The deal reflects the client s confidence in Raya Data Center to offer such business critical service, especially given the exceptional security and reliability requirements associated with organization operating in the Insurance industry. NEW SERVICE Raya Data Center Adds new Cloud Service to its Portfolio In line with Raya Data Center s continuous service innovation strategy, the company has launched a new service Cloud Backup as a service. The launch of this new service comes after seeing growing demand in the market. The company already has launched officially its public cloud platform offering different services includes Virtual Servers, Virtual Data Centers, and SaaS collaboration.

9 Raya Holding Investments RAYA HOLDING (RAYA.CA) BariQ A Company for recycling and remanufacturing of plastic materials which will start operation end of 2011 and is the first of its kind in Egypt and the region with initial Investment cost of EGP 120M Ostool A land transport company, which started its operation in April 2010 and is targeting to be the largest Logistics and Cargo land transport company serving North Africa, Sudan, and the ME region. Ostool. Raya Holding share is 62% of the company. Currently, Ostool operates a fleet of 216 trucks. Smart Village Raya owns 3.4% from Smart Village co AAA Raya owns 20% from Allied Arab Assurance Brokerage S.A.E. Makrony Polskie Raya Holding acquired 19.39% stake in Makarony Polskie of Poland. 9

10 Financial Position up 32.9% The group's consolidated revenues amounted to EGP 1,479.4 million in, a 32.9% increase over those of. Gross profit increased by 101.5% to EGP million from EGP million in comparable period of Gross profit margin recorded 18.8%, an increase of 6.4 percentage points over. SG&A up 44.4% Selling, General & administrative expenses increased by 44.4% to EGP million from EGP million in. Our SG&A to recorded 11% in. EBITDA up 196.7% EBITDA increased to EGP million compared to EGP 46.5 million in, an increase of 196.7% while EBITDA margin recorded 9.3%. Net Financial cost up 131.4% Financial cost recorded EGP 60.8 million, up from EGP 26.3 million in. Group Net income up % Earnings after tax and minority interest amounted to EGP 39.1 million in compared to EGP (1.9) million in. Inventory up 66.9% The inventory increased to reach EGP 1,157.4 million in vs. EGP million an increase of 66.9% compared to. Cash on hand and at Banks up 38.1% Cash on hand increased by 38.1% in to reach EGP million vs. EGP million in. Credit Facilities up 25.6% Credit Facilities increased by 25.6% in to reach EGP 1,203.7 million from EGP million in. Long Term loans up 8.5% Long terms loans increased by 8.5% to EGP million in from EGP million in. 10

11 Financial Statements: Income Statement EGP 000s Trade s IT s Call Center s Smart Buildings s International Services s Ostool s Data Center s Industrial Sector s Restaurants Sector s Aman s Manufacturing & Export s Others Intercompany Sales Total COGS Margin SG&A EBITDA EBITDA Margin Provisions Operating Income Investment and Other Non-Operating Income Forex Net Financial Cost EBT EBT Margin Income Tax Net Income Before Minority Minority Interest Net Income After Minority Net Income After Minority Margin 927, , , , ,051 84,701 13,122 6,556 22,324 9,474 56,465 48,015 8,973 5,812 36,871 18,459 8,854 4,439 2,482-38,178 20,448 1, (22,049) (6,355) 1,479,440 1,113,494 (1,200,964) (975,320) 278, , % 12.4% (161,478) (111,850) 137,919 46, % 4.2% (29) (2,113) 116,969 24,211 3, ,372 (60,824) (26,290) 60,763 3, % 0.3% (20,162) (3,957) 40,601 (554) 1,535 1,343 39,066 (1,897) 2.6% (0.2%) 11

12 Financial Statements: Balance Sheet Mar Dec-16 EGP EGP Non-Current Assets Fixed Assets 524,112, ,602,107 Investments Properties 637,576, ,786,684 Projects Under Construction 65,396,606 44,947,041 Intangible Assets 21,206,876 20,841,524 Goodwill 82,078,560 58,950,939 Investments in Associates 42,812,652 42,767,920 Available for Sale Investments 18,897,125 18,605,487 Deffered Income Tax 14,675,656 12,536,943 Total Non-Current Assets 1,406,757,289 1,287,038,645 Current Assets Inventory 1,157,363, ,474,362 Work in Progress 59,725,445 75,700,828 Accounts And Notes Recievable 933,536, ,442,113 Prepayments And Other Debit Balances 786,029, ,215,721 Share Based Compensation 161, ,544 Cash on Hand and at Banks 348,437, ,252,234 Total Current Assets 3,285,253,605 2,455,246,802 Total Assets 4,692,010,894 3,742,285,447 Equity Paid- in Capital 504,624, ,624,835 Legal Reserve 34,203,775 30,657,350 General reserve 41,935,960 41,935,960 Treasury Shares (1,875,316) (1,875,316) Revaluation Reserve of Available for Sale Investments 291,638 - Foreign Currency Translation Adjustments 10,486,928 (13,920,868) Retained Earnings 279,134, ,855,382 Profits for the year after deducting minority interest 39,066, ,825,642 Total owners' Equity of Holding Company 907,868, ,102,985 Minority Interests 20,476,393 18,941,615 Total Equity 928,345, ,044,600 Non-Current Liabilities Notes Payable - Long Term 49,821,657 54,189,198 Long Term Loans 307,879, ,678,687 Long Term Liabilities 47,836,698 40,861,611 Total Non-current Liabilities 405,538, ,729,496 Current Liabilities Provisions 40,411,535 23,183,977 Accounts And Notes Payable 1,215,226, ,282,063 Long Term Loans - Current Portion 112,332, ,870,133 Credit Facilities 1,203,688, ,186,301 Tax Payable 48,794,527 30,919,722 Accrued Expenses and other Credit Balances 727,789, ,001,075 Dividends Payable 9,885,137 4,068,080 Total Current Liabilities 3,358,127,848 2,500,511,351 Total Liabilities 3,763,665,882 2,879,240,847 Total Equity & Liabilities 4,692,010,894 3,742,285,447

13 DISCLAIMER This release may contain forward looking statements that constitutes Raya s beliefs and expectations about future performance. Except for historical information, any forward looking statement based on current expectations, assumptions and projections about future events are subject to certain economic and market risks and uncertainties that could turn out actual results to differ materially or may not occur. About RAYA Headquartered in Cairo, Egypt, yet unrepressed to cover operations in all continents, Raya Holding is an auspicious investment conglomerate managing a diversified investment portfolio. As the parent company for ten up-and-coming lines of business, Raya Holding operates in the fields of information technology, data center outsourcing, contact center, smart buildings, consumer electronics, social media development, food and beverage, land transport and PET remanufacturing. Raya, with a group of employees of around 9,508 professionals, provides technological solutions and world-class valueadded services. Listing Raya Holding is listed in Egypt Stock Exchange (EGX). RIC: RAYA.CA Capital Structure Authorized Capital: EGP 1,000,000,000 Issued & Paid-in Capital: EGP (100,924,967 EGP 5 per share) Investor Relations Contacts Mohamed Sherif Gomaa Manager Investments & Investor Relations Yasmine Adel Bakry Analyst Investments & Investor Relations Contact Details: Tel : + (202) Fax : + (202) investor_relations@rayacorp.com 13