Raya Holding For Financial Investments Sae · EGX:RAYA
Raya Holding For Financial Investments Sae — Raya Holding for Technology & Telecommunications S.A.E. — Q1 2011 Earnings Presentation
65 slides from Raya Holding For Financial Investments Sae's earnings presentation, Nov 29, 2011
Slide 1: Investor Presentation Q1 2011 Results
Investor Presentation Q1 2011 Results
Slide 2: Disclaimer
Disclaimer This document has been prepared by Raya Holding for Technology & Telecommunications S.A.E. (“Raya” or the “Company”) solely for presentation purposes. It must be treated confidentially by attendees and should not be reproduced, redistributed or passed to any other person. The information
Slide 3: Agenda
Agenda 1 Company & Business Overview 2 Market Highlights 3 Q1 2011 Operations Financial Overview 4 Q1 2011 Consolidated Results 5 Raya Investments
Slide 4: Company & Business Overview: Our Vision, Our People
1 Company & Business Overview Our Vision Our People A total of 2716 employees that has grown at a CAGR of 37.8% since 1988. A young & dynamic workforce with average age of 30 year An experienced senior management team with an average age of 37 years 3000 A Market Leader No Matter 2500 Where We
Slide 5: Our Facilities and Geographic Presence
Our Facilities One team in a state-of-the art building Solid Infrastructure and working environment Managing a controlled & secure workplace Geographic Presence
Slide 6: Our Evolution and Corporate Values
Our Evolution 1998-1999 Merger Raya was established in May 1999 2000-2001 Diversification Focusing on better serving its customer needs and addressing 2002 opportunities for growth, Raya Holding expanded its portfolio Streamlining of investments to include Smart Office Buildings, OSTOOL , 2003 BariQ
Slide 7: Certificates
Certificates CMMI “ Capability Maturity Model Integration” is a process improvement approach that provides organizations with the essential elements of effective processes that ultimately improve their performance. CMMI is used to guide process improvement across a project, a division, or an entire
Slide 8: Our Corporate Governance
Our Corporate Governance Board of Directors: The Board of Directors (the "Board') of RAYA Corporation believes that sound corporate governance practices provide an essential foundation to assist the Board in fulfilling its responsibilities. The Board has adopted these guidelines to reflect RAYA's co
Slide 9: Corporate Social Responsibility
Corporate Social Responsibility Sustainable Development Health Sector Education Sector Charity Activities Sustainable Activities Crisis Aid Medical Supplies Injaz Teaching Ramadan Packages Abaza Village Revolving Loan Gaza Donations Volunteers Project
Slide 10: Corporate Social Responsibility: Recent CSR Projects
Corporate Social Responsibility Recent CSR Projects Min Masry Le Masry Campaign Al Bahr Al Azam Street Solidarity Donations for 57357 Blood donation For People Injured during 25 Clean up and Re-paint January Revolution victims of Qedeseen campaign church Winter Campaign in Borsetna Campaign Kidney D
Slide 11: Our Corporate Strategy
Our Corporate Strategy Fast entry into profitable markets Strategic Business Development (i.e. Fawry, IBS) Geographical Expansion (i.e. Nigeria) New investments ( BariQ, Ostool & Rameda) Expand Value Added Services Expand Call Center Offshore Revenues Expand direct distribution coverage & r
Slide 12: Shareholders' Structure
Shareholders’ Structure Listed in CASE, May 2005 Capital Structure Outstanding Shares: 62,165,193 Authorised Capital: EGP 1,000,000,000 Market CAP 272 MLE Issued & Paid-in Capital: EGP 310,825,965 Share Par Value: EGP 5 Shareholding Breakdown 73.4% Egyptians, 9.98% Arabs & Africans , 16.
Slide 13: Our Scope of Operations
Our Scope of Operations Trade Information Technology Call Center Smart Buildings
Slide 14: Market Highlights
2 Market Highlights IT Trade Call Center Smart Buildings Egypt’s IT spending Demand slowdown Egypt is one of the Regional market for forecasted to increase top 10 preferred call smart buildings is from $1.2bn to $1.9bn by and decreasing forecasted to reach an purchasing power center destinations in
Slide 15: Trade LOB
3 Q1 2011 Operations Financial Overview Trade LOB
Slide 16: Trade Financial Review
Trade Financial Review Revenues in EGP mil. Gross Profit in EGP mil. 15.4% -3.7% -25.1% 54.8% 515.0 40.4 38.9 35.0 385.5 333.0 Q1 2009 Q1 2010 Q1 2011 Q1 2009 Q1 2010 Q1 2011 Gross Profit Margin in % -2.7% 2.3% 10.5 10.1 7.8 Q1 2009 Q1 2010 Q1 2011
Slide 17: Trade Financial Review
Trade Financial Review Revenues in EGP mil. Gross Profit in EGP mil. -24.7% -13.9% 512.3 45.2 385.5 38.9 Q4 2010 Q1 2011 Q4 2010 Q1 2011 Gross Profit Margin in % 1.3% 10.1 8.8 Q4 2010 Q1 2011
Slide 18: Trade: Raya Distribution
Trade Raya Distribution Nokia’s fist and principal importer and distributor More than 3,000 dealers and 2,400 points of sale. Egypt Algeria
Slide 19: Distribution Financial Overview
Distribution Financial Overview # of Handsets (000) Mobile Distribution Revenue (EGP mil) -21.4% 75.6% -50.6% 84.6% 850.2 389.5 306.1 484.0 420.2 211.0 Q1 2009 Q1 2010 Q1 2011 Q1 2009 Q1 2010 Q1 2011 IT Distribution Revenue (EGP mil) IT Distribution Product Mix 0% -46% 2% 5% Intel 8% HP Dell 77.4 77
Slide 20: Distribution Strategy
Distribution Strategy Focus on a blended model between wholesale & direct distribution (reached 2,400) Expand coverage/ reach in Cairo & governorates (60 vans & 18 offices) Strategic Actions Strategic alliances with new operators ( Etisalat) Broaden product portfolio (personal mobility & IT products
Slide 21: Trade: Raya Retail Overview
Trade Raya Retail Raya Retail Overview Founded on the strengths of Raya’s distribution network: Retail Stores Greater product choices Targeting end Wider Access consumer (launched e-Commerce Site) with: A variety of value-added services
Slide 22: Retail Financial Overview
Retail Financial Overview # Of handsets (000) # of Outlets -17.8% -6.4%* -23.7% 40% 4 6 -36% 28.0 22% -10.8% 23.6 5 0% 18.0 77% 4 3 58 3 3 18% 52 39 34 32 30 30 11 13 Q1 2009 Q1 2010 Q1 2011 Retail Revenue (EGP mil) 2003 2004 2005 2006 2007 2008 2009 2010 Q1 2011 Egypt Outlets Algeria Outlets 0% -28
Slide 23: Retail Strategy
Retail Strategy Improving quality of service and consumer confidence Strategic Increase consumer electronics sales . Actions Face lift of all stores and new Raya store concept Introduction of Raya E-commerce shop
Slide 24: Raya Maintenance Coverage
Trade Raya Maintenance Raya Maintenance Coverage Servicing 14 countries in North and East Africa
Slide 25: Raya Maintenance Overview
Raya Maintenance Overview Raya Maintenance offers Nokia, Samsung, Blackberry , BenQ LCD after-sales services Complying with highest Nokia standards A capacity of more than 1.4 million mobile devices annually Regional training activity: South Africa, Nigeria, Libya, Jordan, Iraq & Pakistan Maintenanc
Slide 26: Maintenance Financial Overview
Maintenance Financial Overview # of Handsets serviced (000s) Maintenance Revenue (EGP mil) -13% 20% 20% 4% 98.0 102.1 21.9 85.1 17.6 18.3 Q1 2009 Q1 2010 Q1 2011 Q1 2009 Q1 2010 Q1 2011 # of Technical Maintenance Engineers 74.8% -55.6% 223.0 125.0 99.0 Q1 2009 Q1 2010 Q1 2011
Slide 27: Maintenance Strategy
Maintenance Strategy New Nokia Customer Care Outlets Improving client perception in quality of service (CC & maintenance) Strategic Actions Growing the volumes through expanding geographically in Nigeria. Exclusive Nokia Level 3 Maintenance Center in Egypt Value stream mapping “Process stream lining
Slide 28: Raya IT LOB
Raya IT LOB
Slide 29: Raya IT Services & Solutions
Raya IT LOB Real Estate Raya IT offers IT solutions for several Government industries: Manufacturing Oil & Gas SMB Telecom Financial Services Raya IT Services & Solutions Infrastructure Business Outsourcing Solutions & Application Services Services s& (Software Services Solutions)
Slide 30: IT Financial Overview
IT Financial Overview Revenues in EGP mil. Gross Profit in EGP mil. 9.6% 1% -25% -23.6% 90.1 98.8 20.2 20.4 74.1 15.6 Q1 2009 Q1 2010 Q1 2011 Q1 2009 Q1 2010 Q1 2011 Gross Profit Margin in % -1.7% 0.4% 22.4 20.7 21.1 Q1 2009 Q1 2010 Q1 2011
Slide 31: IT Financial Overview
IT Financial Overview Revenues in EGP mil. Gross Profit in EGP mil. -36.4% -30.7 % 116.5 22.5 15.6 74.1 Q4 2010 Q1 2011 Q4 2010 Q1 2011 Gross Profit Margin in % 1.7% 19.3 21.1 Q4 2010 Q1 2011
Slide 32: Reference Samples in Egypt
Reference Samples in Egypt Egyptian National Post Office Egypt Telecom ATMs and maintenance Infrastructure & Security Services Income Tax Authority EFG Hermes Infrastructure & application Microsoft Services National Bank of Egypt Etisalat WAN/ LAN infrastructure & IP telephony Infrastructure & Secur
Slide 33: Business Partners
Business Partners oo IT/Security A cisco. McAfee TippingPoint @? astaro Blue®Coat FiSRTineT ES STONESOFT The Security Division of EMC Microsoft SECURE COMPUTING r~ ) symantec. =a = MVEBSENSE SS IT/Software Ard ent- il e Flex i-flex solutions HPOPENVIEW [Sa BUSINESS OBJECTS" ove. sas FY Remedy fporat
Slide 34: IT Revenue Mix
IT Revenue Mix IT Revenue Mix % (EGP mil) 98.8 90.1 74.1 9.6% -25% 4% 4% 4% 32% 32% 30% 64% 64% 66% Q1 2009 Q1 2010 Q1 2011 Infrastructure Solutions Business Applications & Soft Ware Development Outsourced Services
Slide 35: IT Strategy
IT Strategy Diversify Revenue Types by concentrating on different promising sectors Focus on Banking, Oil & Gas, Telecom sectors Strategic Actions Focus on security offerings within Egypt Maintain a focus on software development, data center services. Penetrate new solutions such as light current sy
Slide 36: Raya International Services: RIS Coverage
Raya International Services RIS Coverage Catering to Saudi Arabia, the Gulf, and the Levant Saudi Arabia Qatar
Slide 37: RIS Solutions & Services
Raya International Services • Raya International Services provides state-of-the-art IT Solutions to MENA Region • Serves government, utilities and health and education sectors in MENA Region • Expertise in Systems Integration and Technology Consultations RIS Solutions & Services Integrated IT Soluti
Slide 38: Clients We Serve
Clients We Serve Emirates Qatar Saudi Arabia Mubadla Qtel Ministry of Finance & Supreme Council of Information & Saudi Fransi Bank Industry Communication Technology Bank Al-Bilad Royal Jet Riyadh Bank California Gardens Communication & Information Jordon Technology Commission Mobily EMAA
Slide 39: Raya Contact Center LOB
SER TNO! UN NASEE Se VER ; _ ERS:
Slide 40: Raya Contact Center Geographic Presence
Raya Contact Center Geographic Presence England France & Canada & USA Belgium Egypt Emirates & Saudi Arabia Australia Partners/Channels Call Center Operations Current coverage from Egypt
Slide 41: Raya Contact Center Services
Raya Contact Center Services Customer Service Contact Centre Inbound Sales Services Tele-marketing: Technical Support Data Management Non Voice Finance & Accounting Services Supply Chain Management Value Added HR Outsourcing Services Call Center Hosting Contact Center Startup Consultation Profession
Slide 42: Raya Contact Center Strategic Verticals
Raya Contact Center Strategic Verticals Technology & Automotive Banking & Financial FMCG Telecom Services Government Real Estate Other Health Care Fast Food
Slide 43: Raya Contact Center Overview
Raya Contact Center Overview Call Center (# of Agents) Sectors Revenue Distribution % 3% 13% 3% 2% 3% Telecom & Technology 4% 18.3% BFS -36.6% Automotive FMCG 6% Others 2,000 1,770 Travel & Tourism 8% 1,500 1,268 Pharma Real Estate 9% 62% GOV YE 07 YE 08 YE 09 YE 2010 No. of Utilized Seats Local vs.
Slide 44: Raya Contact Center Financial Review
Raya Contact Center Financial Review Revenues in EGP mil. Gross Profit in EGP mil. 32.8% 21% 31.6% 2.4% 22.9 9.1 7.5 16.9 17.3 5.7 Q1 2009 Q1 2010 Q1 2011 Q1 2009 Q1 2010 Q1 2011 Gross Profit Margin in % -3.8% 9.5% 43.4 39.6 33.9 Q1 2009 Q1 2010 Q1 2011
Slide 45: Raya Contact Center Financial Review
Raya Contact Center Financial Review Revenues in EGP mil. Gross Profit in EGP mil. -2.1% -6.2% 9.7 23.4 22.9 9.1 Q4 2010 Q1 2011 Q4 2010 Q1 2011 Gross Profit Margin in % -1.9% 41.5 39.6 Q4 2010 Q1 2011
Slide 46: Raya Contact Center Operational Highlights
Raya Contact Center Operational Highlights 1,500 3,000 Offshore seats 8 years of Agents Services in over5 experience covering the Middle sites in ICSA Int’l in BPO and 50+ COPC ISO East, Africa, Cairo, certification contact Countries Certified Certified UK, Europe, for Agents center in 10 Giza USA ,
Slide 47: Call Center Strategy
Call Center Strategy Growing its international business Grow its Business Process Outsourcing (BPO) and non-voice Strategic services Actions Developing and growing new sectors in the local market, such as government, tourism, health care and FMCG Providing high-end quality services, through the rece
Slide 48: Raya Smart Buildings LOB
Raya Smart Buildings LOB Raya View Raya Plaza Raya Offices
Slide 49: Raya Smart Buildings Financial Review
Raya Smart Buildings Financial Review Revenues in EGP mil. Gross Profit in EGP mil. -3.5% -48.8% 11.2 2.8 2.7 5.7 Q1 2010 Q1 2011 Q1 2010 Q1 2011 Gross Profit Margin in % 22.4% 47.7 25.3 Q1 2010 Q1 2011
Slide 50: Raya Smart Buildings Financial Review
Raya Smart Buildings Financial Review Revenues in EGP mil. Gross Profit in EGP mil. 12.9% -28.1% 3.8 6.6 5.7 2.7 Q4 2010 Q1 2011 Q4 2010 Q1 2011 Gross Profit Margin in % -10.1% 57.8 47.7 Q4 2010 Q1 2011
Slide 51: Raya Smart Buildings Overview and Strategy
Raya Smart Buildings Overview Offering smart office/commercial buildings complexes Capitalize on growing demand for smart offices in Egypt Building on Raya’s solid experience in smart offices technology solutions Raya Smart Buildings Strategy Develop our land bank through acquisition of Strategic st
Slide 52: Green Buildings: LEED Point Categories
Green Buildings LEED Point LEED Programs Categories Building Certification Green, Silver, Gold, Platinum Sustainable Sites Website: www.usgbc.org Materials & Resources Water Efficiency Energy & Atmosphere Indoor Environmental Quality Innovation
Slide 53: Smart Buildings
Smart Buildings 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 600 million. . The construction of the first smart & green office building proj
Slide 54: Raya Consolidated Revenue Split
Raya Consolidated Revenue Split Revenue Split Q1 2010 0.0% 1.8% -1.4% 0.8% Trade LOB 2.7% Revenue Split Q1 2011 IT LOB 1.2% 0.3% 15.5% 1.9% Call Center LOB -0.7% Trade LOB 4.6% Smart Buildings LOB International Services IT LOB LOB Ostool LOB Call Center LOB 80.7% 14.9% Disposal of Sales sector Smart
Slide 55: Q1 2011 Consolidated Results
4 Q 2011 Consolidated Results Consolidated Performance • Consolidated revenue Q1 2011 decreased by 22.2% to EGP 496.1 million vs. 638.0 million in Q1 2010. • Consolidated revenue Q1 2011 decreased by 25.5% to EGP496.1million vs. EGP 666.4 million in Q4 2010. • Gross Profit decreased by 2.7% to reach
Slide 56: Balance Sheet
Balance Sheet 31-Mar-11 31-Dec-10 Change LE LE Long Term assets Fixed Assets 188,021,476 194,223,047 Intangible assets 1,979,584 2,355,672 Rented Assets - Capital Lease 73,458,526 75,111,516 Rented Assets - Capital Lease Contract Settlement (43,092,494) (31,676,010) Assets held for Lease 135,536,814
Slide 57: Income Statement
Income Statement EGP mil. Q1 2011 Q1 2010 % Change Q1 2011 Q4 2010 % Change Trade Revenues 385,536,306 515,062,313 -25.1% 385,536,306 512,311,186 -24.7% IT Revenues 74,108,393 98,872,686 -25.0% 74,108,393 116,482,131 -36.4% Call Center Revenues 22,951,072 17,279,212 32.8% 22,951,072 23,437,958 -2.1%
Slide 58: Financial Highlights
Financial Highlights Revenues (EGP mil) Gross Profit (EGP mil) 47.8% -2.7% -22.2% 17.9% 638.03 71.8 69.9 496.13 60.9 431.41 Q1 2009 Q1 2010 Q1 2011 Q1 2009 Q1 2010 Q1 2011 Revenues (EGP mil) Gross Profit (EGP mil) -16.7% -25.5% 666.4 83.9 69.9 496.1 Q4 2010 Q1 2011 Q4 2010 Q1 2011
Slide 59: Financial Highlights
Financial Highlights EBITDA (EGP mil) Net Income (EGP mil) 12 4% 30 8% 10 25 -24.2% 6% 8 20 -4% 11.8 218.9% -91.7% 6 2% 15 4% 25.6 4 10 19.4 18.6 2% 2 5 3.7 1.0 0 0% 0 0% Q1 2009 Q1 2010 Q1 2011 Q1 2009 Q1 2010 Q1 2011 EBITDA EBITDA Margin Net Income Net Income Margin EBITDA (EGP mil) Net Income (EG
Slide 60: Cost Control Initiatives
Cost Control Initiatives SG&A /Revenue % 10.3% 8.2% 8.2% SG&A per Headcount (EGP 000s) 6.5% Q1 2009 Q1 2010 Q1 2011 77 82 -76.8% 19 YE 2009 YE 2010 Q1 2011
Slide 61: Leverage
Leverage Total Debt (EGP mil) Debt to Equity 17% -3% 0% 0.1% 368.4 356.8 314.8 0.70 0.70 0.60 YE 09 YE 2010 Q1 2011 YE 09 YE 2010 Q1 2011 Total Assets (EGP mil) Debt to Total Assets 8.1% 0.4% 8% -3.7% 1,354.4 1,359.7 0.25 0.27 0.26 1,252.3 YE 09 YE 2010 Q1 2011 YE 09 YE 2010 Q1 2011
Slide 62: Shareholder Value
Shareholder Value Equity (EGP mil) ROE 4.2% 0.4% 0% 0% 494.8 515.6 517.5 8% 8% 8% YE 09 YE 2010 Q1 2011 YE 09 YE 2010 Q1 2011 EPS P/E (Attrib.) @ 6 LE 1071.8% 0.19 375 375% -91.5% -78.6% 150 0.04 0.016 32 Q1 2009 Q1 2010 Q1 2011 Q1 2009 Q1 2010 Q1 2011
Slide 63: Raya Holding Investments
5 Raya Holding Investments 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 EGP 40mn issued capital and paid in capital 10%. Raya Share 94% with a total of EGP 3.72mn. Ostool A land
Slide 64: Investments cont…
Investments cont… Fawry Fawry for Banks Technology and Electronic Payment, of which Raya is a 35% shareholder with a total investment of EGP 16.1mn, started operation in Q4 2009. Rameda Raya acquired 30% of Rameda's “an Egyptian Pharmaceutical company” in Q1 2011. Raya's value add is to focus on the
Slide 65: Thank You
Thank You INVESTOR RELATIONS CONTACT INFORMATION: Ms. Reem Asaad Investor Relations Director Ms. Marian Zakaria Senior Executive Investor Relations www.rayacorp.com Email: investor_relations@rayacorp.com Tel: +20 (0) 238276000 Fax:+20 (0) 238276001 Address: 26th July St., Touristic Zone, 6th of Octo
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