Raya Holding For Financial Investments Sae · EGX:RAYA
Raya Holding For Financial Investments Sae — Raya Holding for Technology & Telecommunications — FY2007 Earnings Presentation
42 slides from Raya Holding For Financial Investments Sae's earnings presentation, April 2008
Slide 1: YE 2007 Corporate Announcement
YE 2007 Corporate Announcement April 2008
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 I. Raya in Brief II. Corporate Update III. Operations Review IV. Financial Highlights A market leader no matter where we are 3
Slide 4: Raya In Brief
Raya In Brief Scope of Operations Information Trade Call Center Technology Three operations: Infrastructure solutions Prospecting / retail, distribution, Customer Acquisition and Business applications maintenance/warrant Channel Development and solutions y services Two product groups:
Slide 5: Raya In Brief: Geographic Presence
Raya In Brief Geographic Presence Tunisia Syria Iraq Jordan Lebanon Morocco Kuwait Qatar Algeria Egyp UAE t Saudi Arabia Oman Sudan Nigeria Yemen IT and Retail & Distribution IT Raya Office A market leader no matter where we are 5
Slide 6: Agenda
Agenda I. Raya in Brief II. Corporate Strategy III. Operations Review IV. Financial Highlights A market leader no matter where we are 6
Slide 7: Corporate Strategy
Corporate Strategy Fast entry into Expand value profitable markets Maximize profits added services & lines of business eFinance Investment Expanding call center Net Income EGP 95 offshore revenues million (EPS 1.51) C3 Acquisition Expand direct G&A to Rev down to Nigeria office distrib
Slide 8: Regional Expansion Plans
Regional Expansion Plans USA & Europe Contact center outsourcing services Syria Iraq Tunisia Jordan Lebanon Kuwait Morocco Qatar Algeria Libya Egyp UAE t Saudi Arabia Oman Africa Retail, distribution & Yemen Maintenance opportunities Information Technology services A market leader no matter where we
Slide 9: Listed on CASE, May 2005 Shareholding Breakdown
Listed on CASE, May 2005 Financial Holdings 12% Outstanding Shares 57M Medhat Khalil & Family 5% Market CAP 862 MLE Free Float 50% Soliman Abanumay 10% Watheqa Holding Co. 8% El Tawil Family Major Foreign Funds 10% Shareholding Breakdown 5% 55% Egyptians, 46% Foreigners 62% Retail, 38% Insti
Slide 10: Agenda
Agenda I. Raya in Brief II. Corporate Strategy III. Operations Review IV. Financial Highlights A market leader no matter where we are 10
Slide 11: Operations Review
Operations Review I. Trade A market leader no matter where we are 11
Slide 12: I. Trade LOB: 1. Distribution
I. Trade LOB 1. Distribution A market leader no matter where we are 12
Slide 13: Operational Highlights: Distribution
Operational Highlights Distribution # of Handsets (mil) 3 56% 2 23% 2 2.5 1 1.6 1.3 1 0 FY 05 FY 06 FY 07 Mobile Distribution Revenue (EGP mil) 1400 87% 1200 1000 1% 800 1,438 600 400 762 767 200 0 FY 05 FY 06 FY 07 A market leader no matter where we are 13
Slide 14: Operational Highlights: Distribution
Operational Highlights Distribution IT Distribution Revenue (EGP mil) 38% 22% 200 357 257 100 210 0 FY 05 FY 06 FY 07 IT Distribution Product Mix Others M S 7% 6% Intel 3COM 29% 6% Xerox 9% HP 17% Dell 20% A market leader no matter where we are 14
Slide 15: Raya Strategy: Distribution
Raya Strategy Distribution Distribution Strategy Focus on direct distribution (to reach 1,600 POS by end of 2007 & 6,000 in 3 years time) Expand coverage / reach in Cairo & governorates (60 cars by end 2007) Strategic alliances with operators (bundling handsets & lines) Broaden product portf
Slide 16: I. Trade LOB: 2. Retail
I. Trade LOB 2. Retail A market leader no matter where we are 16
Slide 17: Operational Highlights: Retail
Operational Highlights Retail # of Outlets # of Handsets (000s) 200 -6% 2% 150 40% 100 160 150 153 50 22% 0 58 39 FY 05 FY 06 F07 32 77% Retail Revenue (EGP mil) 5% 18% 39 250 -3% 200 11 13 150 4 5 4 221 215 100 210 * ** 2003 2004 2005 2006 2007 50 Egypt Outlets Algeria Outlets * Above outlets in ad
Slide 18: Raya Shops Revamped
Operational Highlights Raya Shops Revamped A market leader no matter where we are 18
Slide 19: Kaza Meza Shops Launched
Operational Highlights Kaza Meza Shops Launched A market leader no matter where we are 19
Slide 20: Raya Strategy: Retail
Raya Strategy Retail Retail Strategy Aggressive expansion plans in Egypt (reaching 58 shops by end of 2007 Raya ( 39 Shops ) Kaza Meza (19 Shops) Focus on VAS & customer loyalty Operator Services (services, airtime, …) Deploy personal mobility concept Introduced Digital Cameras , Ipods
Slide 21: I. Trade LOB: 3. Maintenance
I. Trade LOB 3. Maintenance A market leader no matter where we are 21
Slide 22: Operational Highlights: Maintenance
Operational Highlights Maintenance # of Handsets serviced (000s) Maintenance Revenue (EGP mil) 500 450 82% 50 51% 400 40 350 40% 300 32% 30 250 500 53 200 20 35 150 274 100 208 25 10 50 0 0 FY 05 FY 06 FY 07 FY 05 FY 06 FY 07 # of Technical Maintenance Engineers 250 24% 200 42% 150 100 211 170 120 5
Slide 23: Raya Strategy: Maintenance
Raya Strategy Maintenance Market Opportunity / Trends Maintenance Strategy Surge in used handsets Capitalize on being Nokia Regional Increased handset complexity maintenance hub (Recently won Nokia Level 4 tender, serving Egypt & 14 NW African countries) Expand maintenance operations in Alge
Slide 24: Overall Performance: Trade LOB
Overall Performance Trade LOB 2,000 1,951 208 52% 200 43% 3% 1,500 1,280 158 -8% 1,237 146 150 1,000 100 500 50 Revenues GP 0 0 EGP mil. EGP mil. YE05 YE06 YE07 YE05 YE06 YE07 20 13 11 11 GP 0 GP% YE05 YE06 YE07 A market leader no matter where we are 24
Slide 25: Raya Lines of Business: II. Information Technology
Raya Lines of Business II. Information Technology A market leader no matter where we are 25
Slide 26: Operational Highlights: Information Technology
Operational Highlights Information Technology IT Revenue Mix (EGP mil) 319 374 400 272 17% 14.9 300 17% 4% 119.7 5% 32% 200 36% 239.4 100 64% 59% 0 Y E 05 Y E 06 Y E 07 Infrastructure Business Applications Outsourced Services Source: Egypt IDC report 2005 A market leader no matter where we are 26
Slide 27: Local Awarded Projects
Local Awarded Projects Information Technology United Bank Of Egypt Vodafone Infrastructure & Security Services Infrastructure, IP Services Telecom Egypt Etisalat Infrastructure & Security Services Infrastructure & Security Services Credit Agricole Bank Islamic Fisal Bank Infrastructure, Hardware ATM
Slide 28: Regional Awarded Projects
Regional Awarded Projects Information Technology Qatar - Supreme Council for Family Affairs - Internal Security Forces - Qatar Foundation - ictQatar Kuwait - Vision/MTC Kuwait - Atheer (MTC Group) Yemen - Public Telecom Saudi - Saline Water (SWCC) - Saudi Post - (Al Jomaih) AAC - eXtra - Arab Sat -
Slide 29: Raya Strategy: Information Technology
Raya Strategy Information Technology IT Strategy System Integration Projects Increase services component Industry specific high profitability projects Capitalize on maintenance contracts Customer satisfaction (repeat Outsourcing business) Strategy e-Payment infrastructure business in partn
Slide 30: Overall Performance: Information Technology
Overall Performance Information Technology 17% 400 17% 374 80 10% 64 319 58 272 14% 300 60 51 200 40 100 20 Revenues GP 0 0 EGP mil. YE05 YE06 YE 07 EGP mil. YE05 YE06 YE07 30 23 20 20 18 10 GP 0 GP% YE05 YE06 YE07 A market leader no matter where we are 30
Slide 31: Raya Lines of Business: III. Call Center
Raya Lines of Business III. Call Center A market leader no matter where we are 31
Slide 32: Operational Highlights: Call Center
Operational Highlights Call Center Call Center (# of Agents) Local vs International revenue nts (000s) 16% 2,100 1,800 2,000 1,500 169% Offshore 41% Local 59% 1,000 669 500 0 Y E 05 Y E 06 Y E 07 Raya Call Center Clients MISR A market leader no matter where we are 32
Slide 33: Raya Strategy: Call Center
Raya Strategy Call Center Call Center Strategy Capitalize on offshore call center services Develop and grow BPO services (business process outsourcing) Leverage industry know-how and best practice Maintain global quality standards ( COPC ) A market leader no matter where we are 33
Slide 34: Overall Performance: Call Center LOB
Overall Performance Call Center LOB 67 30 28 60 153% 25 20 254% 40 8% 15 24 26 11 11 10 20 Revenues 5 GP 0 EGP mil. 0 EGP mil. YE05 YE06 YE07 YE05 YE06 YE07 50 45 42 42 40 30 20 10 GP 0 GP% YE05 YE06 YE07 A market leader no matter where we are 34
Slide 35: Agenda
Agenda I. Raya in Brief II. Corporate Strategy III. Operations Review IV. Financial Highlights A market leader no matter where we are 35
Slide 36: Financial Highlights: Income Statement
Financial Highlights Income Statement EGP mil YE YE Growth Historical financial 07 06 highlights Retail & Dist. Revenues 1,950.6 1,280 52% I T Revenues 374.1 318.8 17% Telecom Revenues 50.8 Call Center Reveues 66.9 26.4 153% I ntercompany sales (118.7) (24.5) Total net sales 2,273 1,651.5 38% Gross
Slide 37: Financial Highlights: Balance Sheet
Financial Highlights Balance Sheet YE YE Historical financial EGP mil 07 06 highlights Current Assets 846.8 827.6 Long term Assets 328 235.3 Total Assets 1,174.8 1,062.9 Current Liabilities 665.3 544.5 Long term Liabilities 69.2 57.6 Shareholders Equity 432.9 455.7 Minority I nterest 6.0 5.1 Total L
Slide 38: Financial Highlights: Consolidated Performance
Financial Highlights Consolidated Performance Revenues (EGP mil) Gross Profit (EGP mil) 2,392 250 2400 43% 67 22% 224 2100 374 194 21 4% -6% 183 1,676 200 1800 1,613 9 6 51 51 27 56 26 27 1500 24 7 319 150 296 1200 45 1,951 100 900 152 1,280 152 600 1,237 104 50 300 0 0 Y E 05 Y E 06 Y E 07 YE05 YE0
Slide 39: Financial Highlights: EBITDA and Net Income
Financial Highlights Consolidated Performance EBITDA (EGP mil) Net Income (EGP mil) 120 100 6% -22% 6% 45% 90 80 40% 95 110 4% 60 70% 4% 60 97 40 2% 30 76 39.7 2% 20 67.6 0 0% 0 0% FY05 FY06 FY07 FY05 FY06 FY07 EBITDA EBITDA Margin Net I ncome Net I ncome Margin A market leader no matter where we ar
Slide 40: Financial Highlights: Cost Control Initiatives
Financial Highlights Cost Control Initiatives SG&A to Revenue SG&A per Headcount (EGP 000s) 14% 80 12% 60 10% 8% 13.8% 40 73 73 6% 12.3% 71 9.9% 9.9% 63 64 63 9.5% 4% 8.4% 20 2% 0% 0 FY02 FY03 FY04 FY05 FY06 FY07 FY02 FY03 FY04 FY05 FY06 FY07 SG&A / Revenues % SG&A per Headcount A market leader no m
Slide 41: Financial Highlights: Shareholder Value
Financial Highlights Shareholder Value Equity (EGP mil) ROE 400 20.0% 432.9 15.0% 456 22% 200 391 10.0% 16% 15% 183 5.0% 10% 0 0.0% FY04 FY05 FY06 FY07 FY04 FY05 FY06 FY07 EPS P/E @ 13.14 LE 1.50 1.5 1.5 1.2 20.0 1.0 1.00 15.0 24 10.0 17 0.50 10 5.0 9 0.00 0.0 FY04 FY05 FY06 FY07 FY04 FY05 FY06 YE07
Slide 42: Thank You
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