The Asset Management Program

Ministry of Investment

www.investment.gov.eg

The Asset Management Program



Egyptian Reform and Privatization Program

► The Government of Egypt has embarked on a comprehensive Reform Program since the

late eighties with the target of transforming the economy from the central planning system to

free economy ruled by market forces.

► The privatization program was launched in 1991 as the corner stone of the overall reform

program. It started with 314 companies distributed over 27 holding company.



No of Transactions Total Sale Value in LE Billion 216 17.9

Achievements of the Privatization Program

From 1991 – June 2004

Achievement of The privatization Program



► From July 2004 the new government gathered all tools of investment under one roof which is the new Ministry of Investment.

►The General Authority For Investment (GAFI)

►The Capital Market Authority

►The Stock Exchange

►The Public Enterprise Companies

► Insurance Companies

The New Vision



► In an attempt to increase efficiency of public enterprises to operate in a competitive market controlled by supply and demand,

► and in an attempt to attract local, regional and foreign direct investment, The Ministry of Investment has adopted from July 2004 the Asset Management Program.

The New Vision



1. Offering public assets , shares and companies for sale with overall consideration of public welfare

and labor rights

2. Restructuring public enterprises according to scientific, economic and technical feasibility

studies.

3. Emphasizing the Corporate Governance principles and guidelines in operating state owned

companies.

The Asset Management Program has adopted three main pillars

The Asset Management Program from July 2004



• Public Enterprise Companies

• Public shares in Joint Ventures

• Unutilized Assets in Public Enterprises

• Affiliated Companies to other ministries where Ministry of Investment provides

technical assistance in the sale process

The Asset Management Program offers a diversified portfolio of investment opportunities in the form of :

The Asset Management Program from July 2004



The Asset Management ProgramNumber and Value of Sale Transactions

from 2000/2001 till may 2006

14494

381 952 543

5643

113

19

107

13

57

28

0

10

20

30

40

50

60

2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 From Julytill 2005Present

Nn

mb

er

0

2000

4000

6000

8000

10000

12000

14000

16000

Sale

Valu

e M

illi

on

LE

Sale Value No of Transactions



Achievements of The Asset Management Program

From July 2004 - June 2005





Achievements of The Asset Management Program

From July 2005 - May 2005





Achievementsin the Banking Sector

From July 2004 - May 2006


Transactions Total Sale Value in LE Million

NSGB 535.6MIBank 873

EAB 985CIB 1303Total 3696.6

In cooperation with the Central Bank of Egypt and the banking sector, the Egyptian Asset Management Programme successfully supervised and monitored the sale of the four major Joint Venture Banks from Feb. 2005 till Feb 2006 as follows:.



The Asset Management Program for the year 2005/2006 includes 45 Public Enterprise Company and public shares in 57 Joint Ventures operating in

different and attractive sectors as follows :

Future plans

Petrochemicals

Banking

Chemical Indst.

Construction

Food Industries

Transport

Services

Metallurgical Indst

Tourism



Investment OpportunitiesWithin




Petrochemicals



(60%)Sidi–Krare for petrochemicals – SIDPEC

The company works in the field of production of primary & Intermediate & Final petrochemicals

Main Activities:

The capital issued in L.E equal to 1.2 billion. Total shares are 10.2 Million. The share par value is 100L.E. The company is not listed in the Stock Market.

Financial Status and Stock Market:

National Bank of Egypt

Authorized to sell:

Financial Indicators In million LE

Statement 2002 2003 2004

Fixed Assets 2019 1865 1705

Revenues 656 1013 1665

Net Profit 638 288 734

Net Equity 1046 1328 1837



(60%)Alexandria for Metallurgical Oil Co. (AMOC)

Main Activities:


Authorized to sell:

Financial Indicators

Production of Metallurgical Oil (Equalized, Special, Absolute & Final)& Paraffin Wax Products & Marketing it inside & outside Egypt.

The capital issued in L.E 820 Million. Total shares are 8.2 Million. The share par value is 100L.E.The Company is not listed in the Stock Market


Statement 2002 2003 2004


Revenues The company under experiment run

267 129

Net Profit 2 99

Net equity 822 824 924

In million LE



(84%)Alexandria for Specialty Petroleum Products Co. (ASPC)

Main Activities:


Authorized to sell:


Install, Run, Management Petrochemical Assemble

The capital issued in L.E 200 Million. Total shares are 20 Million. The share par value is 100L.E. The company is not listed in the Stock Market.


Statement 2002 2003 2004


Revenues The Company under experimental run

Net Profit -1 -11 -11

Net Equity 214 202 190

In million LE



Banking



(37%)Egyptian Saudi Finance Bank

Performing all banking services & financial transactions

The capital issued in L.E. equal to 150 Million. Total shares are 2142871. The share par value is L.E. 7 The Bank is listed in the Stock Market.

& shares Circulation activated

Bank of Alexandria

Statement 2001 2002 2003


Revenues 69 6 143

Net Profit 11 0 22


Main Activities:


Authorized to sell:




Tourism Sector



Constructing hotels mainly connected with international hotel chains which take over the management of constructed hotels such as the Hilton Hotel. It also constructs tourist villages and entertainment parks

Statement 2002 2003 2004

Revenues 37484 45133 61548

Net Profit 24753 29604 33011

Main Activities:


In thousand LE

Sale Delegate

Misr Hotels Co.

Holding Company for Housing, Tourism & Cinema

The capital issued in L.E. equal to 49.5 million




Statement 2002 2003 2004

Revenues 90648 99480 81369

Net Profit 36554 40733 40134

Main Activities:

Financial Indicators In thousand LE

Sale Delegate

El Maamoura Housing

land reclamation, Housing, construction of touristic sites, leasing and investing agricultural land, as well as sale or renting lands.

The capital issued in L.E. equal to 75 million


Holding Company for Housing, Tourism & Cinema



(48%)

Building Hotels, tourism village, Motels, restaurants, casino & complementary services for these constructions like entertainment tools, commercial stores &

shops also building & installation for these construction & Managing it

The capital issued in L.E equal to 100 Million. Total shares are 1Million. The share par value is 100L.E. The company is listed in the Stock Market &

shares circulation activated.

Statement 2002 2003 2004


Revenues 10 21 31

Net Profit 9 18 22


Main Activities:


Authorized to sell:

Financial Indicators In million

Holding co. for Housing Tourism & Cinema

Rowad Misr for Tourist Investment



The Site is between the Mediterranean coast and the North Africa international highway 125 km west of Alexandria and 280 km north of Cairo

Objective: The objective of the project is to develop the plot into a tourist Attraction point for European & Arabs

Sidi Abd El-Rahman Gulf (El Alamin)


Chemical Industries




(46%)Egyptian Financial and Industrial Co.

Manufacture Producing chemical materials and fertilizers

The capital issued is L.E. 259.9Million. Total shares are 6497028. The share par value is L.E. 40.The Company is listed in the Stock Market & shares circulation activated

Statement 2001 2002 2003


Revenues 200 222 288

Net Profit 42 48 54


Main Activities:


Authorized to sell:


Holding Co. for Metallurgical Industries



(46%)

The company is the producing paints, varnishes, printing inks, and animal bone products.

The capital issued is L.E. 200 millions. Total shares are 20 Million. The share par value is L.E. 10.The Company is listed in the Stock Market. & shares circulation activated

Holding Co. for Chemical Industries

Statement 2002 2003 2004


Revenues 30 23 13

Net Profit 63 55 64


Paints and chemical industries (PACHIN)

Main Activities:


Authorized to sell:

Financial Indicators In MILLION LE


Construction




(22%)Portland Tora Cement

Manufacturing & producing all types of cement

The capital issued in L.E. equal to 238,414,000. Total shares are 23,841,400. The share par value is L.E. 10 The Company is listed in the Stock Market

& shares circulation activates.

Banque Misr

Statement 2001 2002 2003



Net Profit 100 35 54


Main Activities:


Authorized to sell:

Financial Indicators In MILLION LE


Metallurgical Industries




(71%)Suez Steel Company

Producing steel by fusion in electric furnaces

The capital issued in L.E. equal to 136.5 Million. Total shares are 1364616. The share par value is L.E. 100 The Company is not listed in the Stock

Market. & shares Circulation inactivated

Banque du caire

Statement 2001 2002 2003



Net Profit -47 -37 -44

Net Equity 83 45 1

Main Activities:


Authorized to sell:


In MILLION LE



Future Plans

► Bank of Alexandria is currently being Offered for sale as the first State owned bank being

privatized.

► The Insurance sector is currently being restructured to offer one of its companies for

sale.



The Sale Procedures

The Ministry of Investment has modified asset and companies sale procedures to ensure :►Speed►Efficiency►Transparency

To materialize these principles, all necessary decrees and regulations have been issued and the result is :

ONE Entity monitoring and coordinating the sale process.

ONE entity specialized for endorsing valuations.

ONE set of procedures that is unified, generalized and published for the selling process.


Thank You


Documents

The Asset Management Program