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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Eurobank Ergasias Services and Holdings SA | TG:EFGD | Tradegate | Ordinary Share |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.02 | -0.82% | 2.421 | 2.421 | 2.432 | 2.489 | 2.421 | 2.489 | 18,483 | 10:52:12 |
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RNS Number:3224K
EFG-Hermes Holdings SAE
24 April 2003
Press Release Cairo, 24th April 2003
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFG-Hermes 2002 Consolidated Results and Analysis
Our total revenues amounted to EGP131.1 million for FY 2002, compared to EGP139.4 million for FY 2001. Net profits for
the period were EGP14.9 million, down from EGP19.8 million in FY 2001. Normalized profits excluding capital gains and
losses amounted to EGP11.6 million in FY 2002, compared to a loss of EGP4.1 million in FY 2001.
Operating Revenue
Division FY 2002 FY 2001
Investment Banking & Private Placements EGP 60.9 mn 63.0% EGP 43.0 mn 47.0%
Brokerage- Placement Fees for Private Placements EGP 3.4 mn 3.5% EGP 9.9 mn 10.9%
Brokerage- Secondary Market Transactions EGP 14.4 mn 14.9% EGP 18.4 mn 20.1%
Asset Management EGP 8.3 mn 8.6 % EGP 13.3 mn 14.5%
Private Equity EGP 9.6 mn 10.0% EGP 2.7 mn 3.0%
Miscellaneous - - EGP 4.1 mn 4.5%
TOTAL EGP 96.6 mn 100% EGP 91.4 mn 100%
Operating revenue, excluding the effect of sales of investments, increased by 5.7% to EGP96.6 million in FY 2002, up
from EGP91.4 million in FY 2001. Investment Banking revenues held up extremely well given a weak environment. In FY
2002, buoyant mergers and acquisition (M&A) revenue more than compensated for a drop in private placement transactions.
Key to the strong performance in M&A was the execution of the largest private M&A transaction in Egyptian financial
history where we acted as sell-side advisors to Al-Ahram Beverages Company (ABC) in its sale to Heineken International
for USD287 million. Furthermore, we acted as financial advisors to both Orascom Telecom and MTC of Kuwait in the sale
of Orascom Telecom's 91.6% stake in Fastlink to MTC for USD423.9 million.
On the brokerage side, whilst overall market volume increased by 10.5% compared to the same period in 2001, our
brokerage volume climbed by 28.0% for the same period. The increase in both our volumes and those of the market came
from lower margin fixed income trading. Our fixed income market share was 20.6% for FY 2002. Due to adverse
conditions on the equity market and the increased share of fixed income trading, commission rates fell across the
market.
Revenues from private equity funds of EGP3.5 million, which were classified as asset management revenue in FY 2001,
have been placed within the private equity revenue stream in FY 2002. This is the result of managerial changes.
Operating Costs
Despite integrating the running cost of Flemings CIIC, general and administrative (G&A) expenses decreased by 23.7%
reaching EGP50.9 million (38.8% of revenue) in FY 2002, down from EGP66.7 million (47.8% of revenue) in FY 2001. This
reduction is in line with our ongoing cost reduction policy and highlights the flexibility of our cost structure.
Non-operating Revenue
The impact of net capital gains on FY 2002 net income was EGP3.3 million as opposed to EGP23.9 million in FY 2001. As
mentioned previously, the gain in 2001 was mainly a result of the sale of a position of Misr Phone for Mobile Phones
(Click). Net profit from investment sales amounted to EGP45.0 million.
Interest Expense
Interest expense climbed to EGP57.6 million for FY 2002 up from EGP42.9 million in FY 2001 as a result of the long-term
IFC loan, the new DEG loan, and the associated FX hedging cost. These loans were partly used to finance long-term
investments and our regional expansion. The IFC loan had a full year impact in FY 2002, compared to only a six-month
impact for the same period in 2001. Secondly, our brokerage volume increased by 28.0% in FY 2002, compared to the same
period of 2001. It should be noted however, that EGP60 million worth of long-term investments were sold during the
fourth quarter of 2002. This will materially reduce interest expense starting early 2003.
Please find attached a copy of FY 2002 consolidated financials and notes. For further information please contact:
Faris Abdulrazzaq
Investor Relations Manager
Tel: +202-331-8178
Fax: +202-338-3616
frazzaq@efg-hermes.com
Ramsay Zaki
CFO
ramsay@efg-hermes.com
Hesham Khalil
Assistant to the CFO
hkhalil@efg-hermes.com
EFG-Hermes may make or publish forward-looking statements about management expectations, strategic objectives, business
prospects, anticipated expense savings and financial results, and other similar matters. A variety of factors, many of
which are beyond EFG-Hermes' control, could cause actual results and experience to differ materially from the
expectations expressed in these statements. These factors include, but are not limited to, financial market
volatility, actions by competitors, the effect of current and future legislation or regulation, and certain other
factors.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on
which they are made. EFG-Hermes does not undertake to update such statements to reflect the impact of circumstances or
events that arise after the date these statements were made.
EFG - Hermes Holding Company
Consolidated Financial Statements
&
Auditor's Report Thereon
As Of December 31, 2002
AUDITOR'S REPORT
_________
TO THE BOARD OF DIRECTORS OF THE
EFG - Hermes Holding Company
We have audited the accompanying consolidated Balance Sheet of EFG - Hermes
Holding company and subsidiaries as of December 31, 2002 and the related
consolidated statements of income, changes in equity and cash flow for the year
then ended. These financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these financial
statements based on our audit
We conducted our audit in accordance with Egyptian Standards on Auditing and in
the light of provisions of applicable Egyptian Laws and regulations. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We have obtained the information and explanations which we deemed necessary for
our audit. We believe that our audit provides
a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of the group as of
December 31, 2002 and of the results of its operations and its cash flows for
the year then ended in accordance with Egyptian Accounting Standards and comply
with applicable Egyptian laws and regulations.
KPMG Hazem Hassan
Cairo, April 13, 2003
EFG - Hermes Holding Company
Consolidated Balance Sheet
As of December 31,2002
EFG - Hermes Holding Company
Consolidated Balance Sheet
As of December 31,2002
Note No. 31/12/2002 31/12/2001
LE. LE.
Current Assets
Cash on hand and with banks
Cash on hand 61 522 116 494
Cheques under collection 5 967 600 314 769
Banks - current accounts 23 900 380 18 356 904
Banks - time deposits (5) 161 795 543 90 684 611
L/G's margin 25 100 25 100
Total cash on hand and with banks 191 750 145 109 497 878
Trading investments (7) 114 551 892 41 959 435
Accounts and notes receivable (net of provision) (9,17) 245 036 139 437 875 238
Debtors and other debit balances (6, 17) 189 129 203 175 747 685
Other brokerage companies- Misr Clearance Co. 9 254 010 18 119 440
Total current assets 749 721 389 783 199 676
Long Term Assets
Fixed assets (net) (10) 25 120 273 28 075 658
Available for sale investments (11) 464 952 083 447 478 253
Investments in associates companies (12) 4 625 000 4 625 000
Held - to - maturity investments (Arab Bank Bonds) (3-9) 501 500 501 500
Settlement Guarantee Fund 6 667 685 7 394 921
Deferred expenditures (net) 1 821 088 1 675 309
Total Long Term Assets 503 687 629 489 750 641
Total assets 1 253 409 018 1 272 950 317
Current Liabilities
Banks - overdraft (7,16) 283 265 023 313 993 241
Short term loans - 43 354 680
Accounts receivable - credit balances 185 592 574 194 062 899
Creditors and other credit balances (8) 17 987 614 21 312 496
Provisions (9) 12 013 555 11 571 021
Total current liabilities 498 858 766 584 294 337
Shareholders' equity
Paid - in capital (14) 205 370 050 205 370 050
Legal reserve 104 399 917 104 119 873
General reserve 158 271 158 271
Special reserve- share issuance premium 183 376 983 183 376 983
Special reserve -revaluation differences 7 322 222 -
Retained earnings 98 985 059 105 905 118
Shareholders' equity 599 612 502 598 930 295
Net profit for the year 14 928 536 19 772 973
Total shareholders' equity including net profit 614 541 038 618 703 268
Minority interest 627 077 769 712
Total shareholders' equity and minority interest 615 168 115 619 472 980
Long term liabilities
Long term loans (15) 139 382 137 69 183 000
Total shareholders' equity and long term liabilities 1 253 409 018 1 272 950 317
The accompanying notes from No. (1) to No. (19) form an integral part of the financial statements and are to be
read therewith .
Chairman and Managing Director
Auditor's Report "Attached"
KPMG Hazem Hassan
Public Accountants & Consultants
EFG - Hermes Holding Company
Consolidated Income Statement
For the financial year ended on December 31,2002
For the financial For the financial
Note year ended year ended
No. 31/12/2002 31/12/2001
L.E. L.E.
Income from fees, commission and managing investments 96 649 490 91 445 674
Interest earned on time deposits 8 813 597 9 599 218
Bonds interests 1 281 490 1 855 871
Gains on sale of available for sale investments 2 721 276 41 759 200
Unrealized gains on trading investments 512 234 1 452 964
Dividends income 6 976 752 5 040 618
Available for sale investment's revaluation differences 70 758 (19 281 334)
Gains (losses) on sale of fixed assets 31 214 ( 29 143)
Currency differences gains 3 997 472 7 039 622
Other income (17) 10 024 061 492 549
131 078 344 139 375 239
Less:
General administrative expenses 50 864 411 66 690 413
Consultation fee 1 268 025 2 522 597
Bank interests 57 639 433 42 883 816
Commission paid 610 325 48 367
Provisions (9) 969 845 1 677 299
Losses from sale of trading investments 532 399 -
Fixed assets depreciation (10) 3 482 203 3 745 508
Deferred expenditures amortization 428 673 242 782
Total expenses 115 795 314 117 810 782
Net profit before income tax 15 283 030 21 564 457
Less: Income tax ( 512 764) (1 872 000)
Net profit before minority interest 14 770 266 19 692 457
Add: Minority interest 158 270 80 516
Net profit for the year 14 928 536 19 772 973
Earnings per share (18) 0.3 0.6
The accompanying notes from No. (1) to No. (19) form an integral part of the financial statements and are to be
read therewith .
* The 2002 distributions to employees is LE. 1 014 873 and the Boards' of Director is L.E. 217 032 versus no
distributions for 2001.
EFG - Hermes Holding Company
Consolidated Statement of Cash Flow
For the financial year ended December 31, 2002
31/12/2002 31/12/2001
L.E. L.E.
Cash Flows from Operating Activities
Net profit before income tax 15 283 030 21 564 457
Adjustments to reconcile net profit to net
cash provided by operating activities
Fixed assets depreciation 3 482 203 3 745 508
Provisions 969 845 1 677 299
Amounts used from provision ( 387 152) (1 830 868)
Available for sale investment's revaluation differences ( 70 758) 19 281 334
Deferred expenditures amortization 428 673 242 782
(Gains) losses on sale of fixed assets ( 31 214) 29 143
Gains from sale of available for sale investment (2 452 749) (46 999 609)
Unrealized gains on trading investments ( 512 234) (1 452 964)
Income tax paid - (3 094 466)
Foreign currency translation differences 1 078 772 -
Stock dividends - ( 18 700)
Operating profit (losses) before changes in working capital 17 788 416 (6 856 084)
Increase in debtors & other debit balances (18 958 397) (135 351 201)
(Decrease) increase in creditors and other credit balances (1 312 218) 5 492 236
Decrease (increase) in accounts receivable -(debit balances) 186 361 428 (92 756 924)
(Decrease) increase in accounts receivable - credit balances (6 470 325) 82 768 643
Decrease in affiliated companies (debit balances) 19 773 242 42 060 255
Decrease in affiliated companies (credit balances) (33 843 032) (46 598 352)
Increase (decrease) in other brokerage companies - Misr Clearance 8 865 430 (11 150 717)
(Increase) decrease in trading investments (70 127 818) 23 735 765
Net cash provided from (used in) operating activities 102 076 726 (138 656 379)
Cash Flows from Investing Activities
Fixed assets purchases ( 750 124) (2 310 782)
Proceeds from sales of fixed assets 259 961 33 188
Purchases of available for sale investments (145 341 329) (314 937 775)
Purchases of investment in associate and subsidiaries (1 151 000) (81 542 096)
Proceeds from sale of available for sale investments 77 440 820 113 345 148
Proceeds from redemption of available for sale investments 58 085 893 -
Proceeds from redemption of company's share in Settlement Guarantee Fund 1 077 304 2 620 235
Payment to increase the company's share in Settlement Guarantee Fund ( 350 068) -
Proceeds from sale of associate companies - 4 169 193
Net cash used in investing activities (10 728 543) (278 622 889)
Cash Flows from Financing Activities
Increase in paid - in capital 1 000 000 86 130 986
Increase in deferred expenditures ( 574 452) (1 918 091)
Increase in legal reserve - 40 056 013
Increase in retained earnings 6 966 000 21 048 687
Increase in special reserve- share issuance premium - 143 103 339
Paid dividends (12 696 873) (46 995 763)
Increase(Decrease) in banks - overdraft (23 415 723) 80 565 467
Increase in long term loans 88 969 801 69 183 000
Payments of long term loans (18 770 664) -
Payments of short term loans (43 354 680) -
Increase in short term loans - 21 941 880
Net cash (used in) provided from financing activities (1 876 591) 413 115 518
Net change during the year 89 471 592 (4 163 750)
Cash and cash equivalent at the beg. of the year 102 278 553 113 661 628
Cash and cash equivalent at the end of the year 191 750 145 109 497 878
The accompanying notes from No. (1) to No. (19) form an integral part of the financial statements and are to be
read therewith .
EFG - Hermes Holding Company
Consolidated Statement of Changes in Equity
For the financial year ended on December 31, 2002
Share Legal General Special Special Reserve Retained Total
Reserve
Capital Reserve Reserve share Revaluation Earnings
issuance
premium Differences
L.E. L.E. L.E. L.E. L.E. L.E. L.E.
Balance 123 529 410 62 303 038 158 271 40 273 644 - 56 192 643 282 457 006
at1/1/2001
Capital increase 81 840 640 40 056 013 - 143 103 339 - - 264 999 992
Transfer to - 1 760 822 - - - 49 712 475 51 473 297
reserves
Balance at 205 370 050 104 119 873 158 271 183 376 983 - 105 905 118 598 930 295
31/12/2001
Special reserve - - - - 7 322 222 - 7 322 222
- revaluation
differences
Transfer to - 280 044 - - - (6 920 059) (6 640 015)
(from) reserves
Balance at 205 370 050 104 399 917 158 271 183 376 983 7 322 222 98 985 059 599 612 502
31/12/2002
The accompanying notes from No. (1) to No. (19) from an integral part of the financial statements and are to be
read therewith.
EFG - Hermes Holding Company
Notes to the Consolidated Financial Statements
for the year ended December 31, 2002
1. Purpose of Preparation
The consolidated financial statements and accompanying notes were
prepared for the purpose of submitting them to the London Stock Exchange as one
of the requirements of Global Depositary shares (GDS).
2 . General
- EFG - Hermes Holding Company -Egyptian Joint Stock Company- was
founded in pursuance of decree No. 106 of 1984.
- The company's extraordinary general meeting held on July 22, 1997
resolved to adjust the company's status and convert it in pursuance to the
provisions of law No. 95/1992 and its executive regulation and amend the
company's purpose to become participation in the companies establishment
which issue securities or in increasing their share capitals.
- EFG- Hermes holding company, the parent company, owns the
following subsidiaries:
Direct ownership Indirect ownership
% %
Financial Brokerage Group (FBG) 99.76 .04
Egyptian Fund Management Group (EFMG) 81.4 11.1
Egyptian Portfolio Management Group (EPMG) 66.33 .33
Hermes Securities Brokerage 97.58 2.42
Hermes Fund Management 89.96 10.04
Hermes Corporate Finance * 100 -
EFG - Hermes Advisory Inc. 100 -
Hermes Financial Management (Egypt) Ltd. 100 -
EFG - Hermes for Promoting & Underwriting 99.67 -
Bayonne Enterprises Ltd. -- 100
EFG -Hermes & Hermes Ltd. -- 84
EFG- Hermes (UK) Limited -- 100
EFG- Hermes Fixed Income 99 1
EFG- Hermes Private Equity 96.3 3.7
* The parent company purchased .5 % of the shares in Hermes Corporate
Finance Co. through irrevocable sales contracts. The transfer of title was not
executed due to a restriction on the transfer of the shares. The transfer of
title of the shares will be executed when the restrictions on the transfer of
shares are lifted, however for accounting purposes the HCF Company was
consolidated as a subsidiary as it is demonstrated that the parent has effective
control over these shares.
3 . Significant Accounting Policies Applied
The significant accounting policies adopted in the preparation of these
consolidated financial statements are set out below:
3-1 Basis of Preparation of Financial Statements
The financial statements were prepared in accordance with Egyptian
Accounting Standards.
3-2 Principles of Consolidation
The consolidated financial statements include all subsidiaries that are
controlled by the parent company. The basis of the consolidation is as
follows:
- All intragroup balances and transactions are eliminated.
- Minority interest, in the equity and results of the entities that are
controlled by the parent company , is shown as a separate item in the
consolidated financial statements .
- The cost of acquisition is allocated as follows:
a) The fair value of the assets and liabilities acquired as of the date of
the exchange to the extent of the parent's interest obtained in the exchange,
and
b) The minority's proportion of the pre-acquisition carrying amounts of the
assets and liabilities of the subsidiary.
3-3 Foreign Currencies Transactions
- The company maintains its accounts in Egyptian Pounds. Transactions
denominated in foreign currencies are recorded at the prevailing exchange rate
at the dates of transactions.
Balance of monetary assets and liabilities denominated in foreign
currency at the balance sheet are translated at the prevailing exchange rates.
The exchange differences are recorded in the income statement.
- The balances of monetary assets and liabilities in foreign currencies
are revalued at the balance sheet date, at the exchange rates prevailing at that
date. The revaluation differences are recorded in the Income Statement.
- As of January 1st 2002, EFG- Hermes Advisory Inc.(a subsidiary of EFG-
Hermes Holding Company) has changed its reporting currency from U.S.$ to
Egyptian Pound and the revaluation differences resulting from the change is
accounted for as a special reserve - revaluation differences item in the
shareholder's equity caption.
- Assets and liabilities of financial statements for foreign companies
were translated using the prevailing exchange rates on the balance sheet date,
while revenues and expenses were translated using an average of the prevailing
rates during the financial year. The resulted translation differences were
included within the shareholders' equity in the balance sheet as a special
reserve- foreign currency translation differences.
3-4 Fixed Assets Depreciation
Fixed assets are recorded at the historical cost, and are depreciated
by the straight line method over the estimated productive life for each type of
asset at the following:
Useful Life
- Building 33.3 Years
- Office furniture & electrical appliances 5-16.67 Years
- Vehicles 3.33 - 4 Years
- Computer equipment 3.33 - 5 Years
- Fixtures 3 Years
3-5 Amortization of deferred expenditures
The cost of obtaining long term loans is capitalized and
amortized over the loan period (Note No. 15).
3-6 Trading Investments
Trading investments are valued on the basis of prevailing market value
at the balance sheet date and the revaluation differences are recorded
in the income statement.
3-7 Investments in Associates Companies
Investments in associates companies are valued at cost. However, when there is
an impairment in the market or computed value of the investments compared to
book value, the book value should be adjusted with the impairment value and
charge the impairment to the income statement.
3-8 Available for sale Investment
- Available for sale investments are recorded at cost. Actively
quoted investments are revalued at cost or market value whichever is lower
and non quoted investments are valued at cost or computed value of the
investments (based on latest certified financial statements) whichever is
lower and the resulting decline in value is charged to income statement.
- Concerning the nonactive available for sale securities (don't have
quoted market price in an active market) and whose fair value can not be
reliably measured, such investments are recognized at cost. However, when
there is an impairment in the market or computed value of the investments
compared to book value, the book value is adjusted with impairment value and
charge the impairment to the income statement.
3-9 Held -to -Maturity Investments (Bonds)
Held - to- Maturity investments (Bonds) are recorded at cost.
However, when there is an impairment in value of these investments, it charged
to the income statement.
3-10 Taxation
- A tax provision has been formed to meet tax obligations based on
detailed studies for each claim.
- Due to the nature of the Egyptian tax laws and legislations, applying
the principles of the deferred taxes according to the International Accounting
Standard "taxes on Income" will not usually result in material deferred tax
liabilities. Further, if this application results in a deferred tax assets, it
will be recognized in the financial statements whenever there is a sufficient
comfort that these assets will be realized in the foreseeable future.
3-11 Cash Flow Statement
For the purpose of preparing the Cash Flow Statement, cash and cash
equivalent are represented in the cash on hand, cheques under
collection, current accounts & time deposits with banks and L/G's
margin.
4. Financial Instruments and management of related risks:
The Company's financial instruments are represented in the financial
assets and liabilities. Financial assets include cash balances with banks,
investments and debtors while financial liabilities include banks - overdraft
and creditors. Note (No. 3) of notes to financial statements includes
significant accounting policies applied regarding basis of recognition and
measurement of the important financial instruments and related revenues and
expenses by the company to minimize the consequences of such risks.
4/1 Market Risk:
Market risk is represented in the factors which affect values,
earnings and profits of all securities negotiated in stock exchange or affect
the value, earning and profit of a particular security.
According to the company's investment policy, the following procedures
are undertaken to reduce the effect of this risk.
- Performing the necessary studies before investment decision in order to
verify that investment is made in potential securities.
- Diversification of investments in different sectors and industries.
- Performing continuous studies required to follow up the company's
investments and their development.
4/2 Foreign currency risk
The foreign currency exchange risk represents the risk of fluctuation
in exchange rates, which in turn affects the company's cash inflows and outflows
as well as the value of its foreign currency assets and liabilities. As of the
date of the balance sheet the company has foreign currency assets and
liabilities equivalent to L.E. 390 623 614 and L.E. 376 838 652 respectively.
The company's net exposure in foreign currencies are as follows:
Surplus/ (Deficit)
L.E.
U.S. Dollar 14 283 712
Euro (530 370)
Sterling Pound 31 620
- As disclosed in note 3-3, the company has used the prevailing exchange
rates to revaluate monetary assets and liabilities at the balance sheet date.
- The company executes SWAP agreements to cover its required needs of
foreign currencies and to meet risks of exchange and interest rates related
thereto.
4/3 Financial Instruments Fair Value
The financial instruments fair value do not substantially deviated
from their book value at the balance sheet date, according to the valuation
basis applied, in accounting policies to the assets and liabilities, which
included in the notes to the financial statements. (Note No. 11, 12) of the
notes to financial statements discloses the fair values of investments, which
are, reported at cost.
5. Banks - time deposits
The Banks - time deposits item includes an amount of LE 88 707 039 as
blocked deposits to guarantee the facilities granted by the Banks to the
affiliated company (Financial Brokerage Group) under the guarantee of the parent
company (EFG - Hermes Holding Company).
6. Debtors and Other Debit Balances
31/12/2002 31/12/2001
L.E. L.E
Deposits with others 238 128 277 281
Prepaid expenses 1 019 992 670 489
Employees advances 465 681 964 569
Accrued revenues 4 499 483 6 729 599
Taxes withheld by others 2 016 857 470 186
Commercial International Investment
Company (CIIC) * 53 000 000 53 000 000
Commercial International Investment
Company (CIIC) - other 28 999 322 34 636 555
El Mansour & El Maghraby for Investment
And Development Company * 45 000 000 45 000 000
Eiad Mazhar Saleh Malas * 2 000 000 2 000 000
Unrealized gains (swap contract) 18 489 442 7 944 845
Down payment to purchase investments ** 13 571 600 --
Sundry debtors 19 828 698 24 054 161
__________ _________
189 129 203 175 747 685
========= ========
* The balances represent payments to fully purchase of the capital shares
of Fleming CIIC- Holding. (Note No. 17). The required procedures to carry out
the transaction in the Stock Exchange are under processing.
** The balance represents down payment to purchase 75% of Financial
Transaction House (FTH) capital shares.
7 . Trading Investments / Banks Overdraft
Trading investments include bonds of Arab Bank with an amount of L.E. 7 748
972 (The face value of bonds is L.E 7.7 Million) which pledged against the
credit facilities granted by the same bank to the holding company.
8. Creditors and Other Credit Balances
31/12/2002 31/12/2001
L.E. L.E
Tax Authority 10 016 261 7 407 185
Social Insurance Association 117 008 120 220
Arab Int. Company 1 360 000 1 360 000
Accrued expenses 2 790 734 3 152 467
Unearned revenues 77 755 747 725
Accrued interest 1 927 763 718 088
Sundry creditors 1 698 093 7 806 811
_________ _________
17 987 614 21 312 496
======== ========
9 . Provisions
Contingent
Provision for Liability Severance Tax claim
doubtful debts provision pay provision provision
L.E L.E L.E L.E
Balance as at 1/1/2002 2 314 089 7 693 120 52 219 3 825 681
Formed during the year 140 158 829 687 -- --
Amount used during the year -- (387 152) -- --
------------- ------------ ----------- ------------
Balance as at 31/12/2002 * 2 454 247 8 135 655 52 219 3 825 681
======== ======= ====== =======
* It is deducted from accounts receivable item in the balance sheet.
10 . Fixed Assets
Office Furniture,
equipment &
Electrical Computer
Particulars Land Building Appliances Equipment Vehicles Total
LE LE LE LE LE LE
Balance as at 1/1/2002 5 360 000 13 685 823 11 169 461 7 193 503 2 350 934 39 759 721
Additions during the year -- -- 521 343 228 781 -- 750 124
Disposals during the year -- -- (184 393) (418 911) (667 243) (1 270 547)
________ _________ _________ ________ ________ _________
Total cost as at
31/12/2002 5 360 000 13 685 823 11 506 411 7 003 373 1 683 691 39 239 298
________ _________ _________ ________ ________ _________
Accumulated depreciation as
at 1/1/2002 -- 1 109 196 5 107 745 4 319 398 1 142 947 11 679 286
Depreciation during the year -- 410 575 1 623 894 1 121 705 326 029 3 482 203
Disposals accumulated
depreciation -- -- (171 949) (391 367) (479 148) (1 042 464)
________ _________ ________ ________ ________ _________
Accumulated depreciation as
at 31/12/2002 -- 1 519 771 6 559 690 5 049 736 989 828 14 119 025
_________ _________ ________ _________ _________ __________
Net cost as at 31/12/2002 5 360 000 12 166 052 4 946 721 1 953 637 693 863 25 120 273
======== ======== ======== ======== ======== =========
11. Available for sale investments
31/12/2002 31/12/2001
L.E. L.E
Quoted investments 174 824 369 174 335 080
Non quoted investments 290 127 714 273 143 173
__________ __________
464 952 083 447 478 253
========= ========
- The market value of the quoted investments amounted to L.E 151 122 748 on
December 31,2002 versus L.E. 157 220 039 on December 31,2001.
12- Investments in associates companies
Investments in associates companies represent the value of the non -
quoted investments amounted to LE. 4 625 000 as at December 31,2002 versus L.E.
4 625 000 as at December 31,2001.
13- European Investment Bank Contract:
According to the contract signed between EFG- Hermes - Holding Company and the
European Investment Bank dated March 1, 2001, EFG- Hermes Holding Company
purchases investments in its name in favor of the bank in a range of
5 Million Euro for each investment. The total amount of these investments is
limited to 25 Million Euro and the participation of European Investment Bank is
limited to 50% of total investment. This contract is valid until August 30,
2013. The European Investment Bank pays the value of these investments. The
proceeds is reported as a liability on the company versus the investments
reported as an asset. An off-setting is made between the asset and liability at
the balance sheet date. The investments purchased according to this contract
amounted to
LE 38 507 298 the equivalent amount of Euro 10 601 054 which are as follows:
Balance as of 31/12/2002
Equivalent in
L.E. Euro
Gas & Energy Group Limited 8 104 041 2 391 054
Founoon Holding Co. (BVI) 16 984 000 5 000 000
Commercial International Investments
Company (CIIC) 13 419 257 3 210 000
__________ _________
38 507 298 10 601 054
========= ========
14. Capital
The company's issued and paid - in capital LE 205 370 050 distributing into 41
074 010 shares of par value L.E. 5 per share.
15- Long term loans
A loan contract has been signed on March 28,2001 between EFG- Hermes
Holding Company and International Finance Corporation (IFC), this contract
provides for that EFG- Hermes Holding borrows a long term loan amounting to USD
30 Million for five years ending on May 31,2006 with two years grace year and
annual floating interest rate over Libor based on the return on equity. This
loan will be used in financing the company's expansions in the Middle East and
North Africa besides new activities. According to the loan contract the company
has received the first installment amounting to US$ 15 Million on May 15, 2001.
The loan principle is payable on 7 semi annual installments amounted to US$ 4
285 700 each. Starting from May 15,2003 and interest will be due semi annually
on 15 May and 15 November, the first interest is due on 15 November 2001.
The loan contract stipulated to provide the following guarantees.
- An irrevocable power of attorney from the Borrower and the borrower's
subsidiaries to IFC enabling IFC to create at will (a) a first - ranking real
estate mortgage over the land and the building owned by Financial Brokerage
Group S.A.E. (subsidiary of 99.76 share percentage) at 58 El Tahrir Street,
Dokki - Giza, Arab Republic of Egypt and (b) a first - ranking commercial
mortgage on the tangible and intangible assets of the Borrower and Borrower's
subsidiaries. Including such asset as may be acquired after the signature of
this agreement;
- An irrevocable and unconditional guarantee by the Egyptian guarantors
and EFG- Hermes Advisory Inc. in a form acceptable to IFC for the benefit of
IFC, payable on first demand by IFC to guarantee the Borrower's payment
obligations to IFC under this agreement;
- A pledge of the shares that the Borrower holds in Egyptian Portfolio
Management Group S.A.E. to IFC (with par value of LE. 1 990 000).
On March 13, 2002, the company has paid an amount of US$ 4 144 630 to the IFC as
a partial repayment of the loan. Accordingly, the loan balance has amounted to
US$ 10 855 370 as of December 31, 2002 (the equivalent amount of LE. 56 882
137).
- On January 4,2002, a loan contract has been signed between EFG - Hermes
Holding Company and the Foundation of (DEG)- DEUTSCHE INVESTITIONS- UND
ENTWICKLUNGSGESELLSCHAFT MBH. The said contract provides for that EFG- Hermes
Holding Company borrows a long term loan with amount of EURO 15 Million with an
applied annual floating interest rate. The loan principle is to be repaid on 12
semi annual installments of 1 250 000 Euro each. The first installment will due
on May 15, 2003 and the loan interest is due semi annually on 15 May, and 15
November, The company is committed to render some guarantees to the lender as
stipulated by the contract. On July 4, 2002 the company has received an amount
of EURO 10 420 000 , and Euro 4 580 000 on December 24,2002 (the equivalent
amount of LE. 82 500 000) representing the full amount of the mentioned loan.
16. Contingent Liabilities and Commitments
- The Holding Company undertakes the credit facilities granted from
banks to its subsidiaries - Financial Brokerage Group and Hermes Securities
Brokerage.
- The company has performed SWAP contracts with some Banks which will be
settled according to specific rates for the foreign currencies implied in such
contracts. The mentioned contracts are as follows:
Transaction Transaction Amount Return currency Expiry Date
operation
date
30/12/2002 Selling Euro 12 Million L.E 6/1/2003
31/12/2002 Selling USD 13 Million L.E 6/1/2003
31/12/2002 Selling USD 4 Million L.E. 2/1/2003
17. Related Party Transactions
- Debtors and other debit balances (Note No.6) include an aggregate
balance amounted to LE. 100 Million paid to CIIC, El Mansour and El Maghraby
for Investment and Development and Eiad Malas (who participated in the share
capital of EFG-Hermes Holding Company with percentages of 32.8% , 6.8% and
0.3% respectively on July 8, 2001) for purchasing all the shares of Fleming
CIIC - Holding and also include L.E. 28 999 322 due from Commercial
International Investment Company (CIIC).
- Accounts receivable debit balances item includes an amount of L.E.
approximately 43 million due from Commercial International Investment
Company (CIIC) for Investments.
- Other income item includes an amount of LE. 9 792 991 represents
consulting fees received from Commercial International Investment Company
(CIIC).
18. Earnings per share
31/12/2002 31/12/2001
LE. L.E.
Net profit for the year 14 928 536 19 772 973
Employees profits share (1 014 873) --
Board of directors remuneration (217 032) --
__________ _________
13 696 631 19 772 973
__________ _________
The weighted average number of shares 41 074 010 32 889 946
__________ _________
Earnings per share 0.3 0.6
========= ========
19. Comparative figures
Certain comparative figures have been reclassified to conform with the current
classification.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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