years - qalaa holdings10 years of building businesses 2005 2004 2006 2008 2010 2012 2014 2005 2007...

AfricAn LeAder in energy & infrAstructure

2 0 1 5A n n u A L

r e p o r t

of Building BusinessesYears

10 Years of Building Businesses

2005

2004 20102006 20122008 2014

2005 20112007 20132009 2015

•CitadelCapital is founded byAhmed Heikal and HishamEl-Khazindar as a two-personpartnership to pursue growthopportunities in the MiddleEastandAfrica

•AmajoritystakeinRiftValleyRailwaysisacquired

•The debt package for the US$3.7bnEgyptianRefiningCom-pany(ERC)issigned

•TakamolCementbeginsopera-tionsinSudan

•ASEC Holding becomes thefirm’s first platform companyfor investments in the cement,construction and engineeringservicessector

•Grandview is established toinvestinmid-capopportunities

•HelwanPortlandCementCom-pany(HPCC)isexitedthroughalistingontheEgyptianExchange

•Wafra, the firm’s platform forinvestments in the Sudaneseagriculturalsector,completesitsfirstcommercialwheatharvest

•ThroughaseriesofacquisitionsTAQAArabiaisestab-lishedasafullserviceenergysolutionsgroup

•TheNationalRiverTransportationcompany(NRTC)is established todevelop river transportopportunitiesinEgypt

•ASCOMisspun-offfromASECHolding

•GlassRock InsulationCo. begins producing environ-mentally friendly rockwool at greenfield facility inMinya

•ERCreachesfinancialclose•ASECMinya,ASEC’s2.0MTPAgreenfield cementplantinUpperEgyptbeginsproduction

•Gozouriscreatedtoinvestinag-rifoods.Thecompanyacquires,DinaFarms,RashidiEl-Mizan,El-Misrieen, and the NationalcompanyforMaizeProducts

•Misr Glass Manufacturing(MGM)isacquired

•TheEgyptianFertilizersCom-pany (EFC) is exited nettingthe firm and its co-investorsmore than four times theirdi-rectinvestment

•Citadel Capital re-brands asQalaaHoldingsandtransformsitsbusinessmodelfromprivateequity to investment holding.withanarrowerfocusonstrate-gic industries includingenergyandinfrastructure

•RVRachievesimportantoper-ationalmilestonesincludingtherebuildingof track, and install-ingnewGPSsignalingsystems

•SphinxGlassbeginsconstructiononastate-of-the-artgreenfieldfloatglassplant

•Partial exit ofASCOMGeology andMiningon theEGXEGX

•Qalaa Holdings announces it has completed itsplannedpurchasesofadditionalstakesinitssubsidiarycompaniesaspartof itsongoingtransformationintoaninvestmentcompany.

•ERC begins receiving heavy pieces of equipmentincluding process reactors, fractionators, and drums;constructionisontrack

•Thefirmdeliversonitsstrategyto deleverage and divest non-core assets; the firm exits in-vestmentsincludingTanmeyah,ASEC Minya, ASEC ReadyMixandRashidiEl-Mizan

•ERCreaches84%completion•Qalaa remains committed togrowing its investments in en-ergyandinfrastructure

•ThefirmlistsitssharesontheEGX

•TanmeyahMicroenterpriseSer-vicesisestablished

•Tawazoniscreatedasaplatformforinvestmentsinthesolidwastemanagementsector

•ASCOM begins gold explora-tioninEthiopia

The majority of the images in this report are photographs taken onsite at our projects and are available to the media on our website in the gallery section of our subsidiary pages qalaaholdings.com

energy ceMent AgrifoodstrAnsportAtion& Logistics

Mining

Con

ten

tsThe Egyptian Refining Company (ERC) construction site, Mostorod, North Cairo

04 Chairman’s Note

08 About Qalaa Holdings

10 A Snapshot of the Past 10 Years

16 Management Discussion & Analysis

20 2015 Financial Highlights

22 Divestment Program Update

24 2015 Milestones

28 Sustainable Investments

36 Corporate Governance

42 Management Committee

44 Subsidiary Management Teams

46 Our Investments

74 Non-Core Subsidiaries

76 Financial Statements

Qalaa Holdings was founded in 2004 to capitalize on the positive fundamentals and growth potential of the region. Despite the highly challenging global and regional environment that ensued, the company has managed to build 27 businesses from scratch in a decade.

WhenwefoundedQalaaHoldings(thenCitadelCapital)asatwo-personpartnershipin2004,wemadeabetthatthepositivefundamentalsandacceleratingpaceofbusinessin the region would create new opportunities for thosewiththelocalinsighttofindthem,theregionalfootprinttotransformlocalcompaniesintoregionchampions,andtheworld-classexpertiseneededtocreategrowthoppor-tunitiesofatypeandscaleattractivetoglobalinvestors.

Now,morethanadecadelater,westillbelievethistobetrue.Inmanyrespectsourachievementsoverthepastyearshavebeenavalidationofthisfundamentalthesis.Despitesomeof toughest circumstances that this regionhas everwitnessed, namely a global financial crisis (or two), theArabSpring,andtworevolutions,wehavenotchedafewvictoriesandhavemuchtobeproudof.

Wehaveseen:• theEGP2millionincapitalthatwebeganwithgrowto

reachEGP8billion• thetwo-manpartnershipgrowtoincludetheemploy-

eesofoursubsidiarycompanies• theestablishmentof27greenfieldprojectsinEgyptand

Africainadditiontobuild-outsandturnarounds• the successful transformation from Africa’s largest

privateequityfirmwith investmentsofUS$9.5bil-lion spanning 15 countries and 15 industries into an

investmentholdingcompanywithanarrowerfocusonselectindustries

• thesuccessfulexitof13companiesinEgyptandSudan

Ithasbeenajourneyfilledwithhighandlowpoints,achieve-mentsandsetbacks.Ineverysingleoneofthebusinesseswehavefoundedoracquired,wehavealwaysmadesuretokeeponeeyeonthedetailsandtheotheronthebiggerpicture.

Myapproachtolifeissimple:dreambig,havetheaudacitytoexecute,getthebestpeople,incentivizethemproperly,andleadbyexample,whichisexactlywhatIhavedone.

Through it all, it has been the peoplewhohavewalkedbesidemethathavemadethejourneytrulyworthwhile.Inmychairman’snoteforCitadelCapital’sfirstannualreportin 2007, Iwrote thatCitadelCapital iswhat it is todaybecauseofthetalentsofourstrongteamofprofessionals.Thiscouldn’tbemoretruetoday.Ouroutstandingteam,manyofwhomhavebeenwithus for theentire10-yearjourney,arethebackboneofthisorganization.It istheirdedication,hardwork,andethics thatmakeall thispos-sible, and Iwould like to take thisopportunity to thankeachandeveryoneofthem.

Asweturnourattentiontothepresent,Ihadpreviouslycommunicated that 2015would be awatershed year for

celebrating 10 years of building businesses

A note From ourChairman & Founder

Qalaa—one inwhichwewoulddeliver against a four-pointstrategythatwouldallowustodistinguishourselvesas the owner and steward of large, transformative assetsacrossourfootprintwhilestreamliningourholdingstoal-lowustofocusdirectlyonourhighest-potentialsubsidiar-iesinenergyandinfrastructure.

Twelvemonths later, I ampleased to report thatwehavemade good on that pledge.Moreover, this comes as thedevaluationoftheEgyptianpoundandtheliftingofenergysubsidiesthatwehavelongpredicted—andonwhichmanyofourinvestmentsarepredicated—isnowcomingtopass.

Ourstrategyfor2015wastocompleteourtransformationintoaholdingcompanythroughafour-pillarstrategyincluding:• Deleveraging at the holding and platform company

levels, driven in largepart through thedivestmentofnon-corebusinessunits;

• Investment in our future growth through the acqui-sition of additional stakes in key subsidiaries and theshepherdingofEgyptianRefiningCompany(ourUS$3.7billiongreenfieldpetroleumrefiningproject)towardthestartofproductionin2017.

• selective investmentswithinexistingplatformcompanies;• Laying the ground for share buybacksforsolongasour

stocktradesatasignificantdiscounttoitsfairmarketvalue.

Deleveraging and DivestmentAsaholdingcompanyfocusedonenergyandinfrastruc-ture, the divestment of non-core business unitswas ourkey priority at the Qalaa Holdings level in 2015 as wedivested or signed agreements executed in early 2016 toexitatotalof8companies.ThisresultedincashproceedsofEGP2,400millionin2015-morethan2.5xthevaluegenerated through three exits the previous year.Amongthenon-coreassetsdivestedwere:• Cement manufacturing: ASEC Minya Cement and

ASECReady-Mix• Financial services: PharosHolding,TanmeyahMicro-

enterpriseServices• Agrifoods:RashidiEl-Mizan,El-Misrieen,Enjoy,and

El-Aguizy in Egypt andRashidi for Integrated Solu-tionsinSudan.

• Manufacturing:MisrGlassManufacturingandUnitedGlassCompanyaswellasfoundriesAACandAMC.

Our subsidiaryMashreq signed an agreement with theGeneral Authority of the Suez Canal Economic Zonefor the transferof a concessioncontract, andweexpecttoannouncethisyearthesaleofotherselectholdingsofASECCement.

Ahmed Heikal Chairman & Founder

A total of eight exits in fy15 generated pro-ceeds of c. egp 2.4 billion, more than 2.5x the previous year

egp 2.4 bn

proceeds from exits

egp 37,177 mnvs. egp 32,415 mn in fy14

total Assets

QALAA HoLdings AnnuAL report 2015 54 QALAA HoLdings AnnuAL report 2015 Chairman’s Note

Investment in Future GrowthOurinvestmentinfuturegrowthhastakentwotracksthisyear: laying the groundwork for the acquisition of newstakesinkeybusinessunitsand,inparallel,maintaininganunwavering focus onbringingEgyptianRefiningCom-pany(ERC)intoproduction.

Today,ERCismorethan84%complete.Weexpecttoreachmechanicalcompletionatthebeginningof2017andtosellourfirston-specproductinQ32017asplanned.AsIwritethesewords,wehavemorethan8,100workersand96cranesonsite.Wehaveinstalledmorethan600pieces of equipment, erected over 14,300 tons of steel,pouredinexcessof80,000cubicmetersofconcrete,andcompletedover7,100piles.Morethan19.5millionmanhourshavebeeninvestedinERCsofar.Incontext,that’stheequivalentofabout2,222yearsofhumanlabor.

ERCwill be transformative for our financials— andevenmore so for theEgyptian economy and environ-mentasitissettoreducethenation’spresent-daysulfuremissionsbynearlyone-thirdwhilecuttingdiesel im-portsbymorethan60%.

AswefocusedonconstructionatERC,wealsoconcludedEGP1.1billioninsyntheticswapslastfallthatgaveusanadditional3.7%stakeinERC,bringingourtotalhold-inginthecompanyto18.9%.Alsolastyear,weenteredinto an agreement with a key coinvestor in our legacyprivateequityopportunity-specificfundsthatshouldseeusacquirein2016asignificantadditionalstakeinTAQAArabia, our energydistributionbusiness and the largestindependentplayerinitsfield.Thesametransactionwillalso complete our exit from at least three legacy assets.Thisremainsinthepipelineforexecutionin2016;whenfinalized itwill result in furtherdeconsolidationof sig-nificantdebtrelatedtoQalaa’snon-coreholdings.

Selective Investments TAQAArabia,ourenergydistributionbusiness,continuedtodeliver solidoperational progress in the yearwith thetotalnumberofconvertedhouseholdclientsincreasingby15%tostandat723,000clients.TAQA’sgenerationbusi-nessisnowgearingupforthenextphaseofitsgrowthwithplanstobuilda180MWgas-firedpowerplant.Inparallel,the company is investing in renewable energy, includingtwosolarpowerfacilities,each50MW,forwhichwearenowinthefinancingphase.Onesolar farmwillbefullyownedbyTAQAArabia,withtheotherbeing50%heldbyTAQAArabiaand50%byaninternationalinvestor.

Meanwhile, our multi-year investment program in RiftValley Railways, the national rail operator of Kenya andUganda,cametoaclosein2015.SincethestartoftheUS$287millioncapitalinvestmentandturnaroundprogramthatbegan in January2012,RVRhas invested inmodern railoperatingtechnology,rebuildinginfrastructure,expandinghaulage capacity, and developing modern rail operatingskillsinthecompany’s2,000-personstrongworkforce.Wehavealsoinvestedintherecruitmentofanewchiefexecu-tive forRVR,which isnowbeing ledbythe formerEastAfricangeneralmanagerofaunitofGeneralElectric.

Our solidwastemanagement subsidiary,Tawazon, re-portedanimpressive109%y-o-ygrowthin2015withrevenuespostinga66%y-o-yincreasedrivenprimarilybyTawazonsubsidiary,TheEgyptianCompanyforSol-idWasteRecycling(ECARU),acompanythatprovidesbiomass,awastetoenergysolutionforheavyindustriessuchascementmanufacturing.

Share BuybacksWecontinuetobelievethatQalaa’ssharesarefundamen-tally undervalued. To that end,wewill engage in sharebuybacksasmarketconditionsandliquiditypermit.

>84 %the egyptian refining company (erc) is now more than 84% complete and on track to begin selling its first on-spec product in 2017

723,000the total number of tAQA Arabia’s converted household clients increased by 15% to stand at 723,000 clients in 2015

2015 Financial HighlightsThedivestmentofnon-corebusinessunitsin2015,includ-ingtheEgyptianassetsofASECCement,hasfundamentallyreshapedQalaa’sfinancials,givingmoreweightonboththeincomestatementandbalancesheettoongoingoperationsatourcoreenergyandminingunits.ThissetsthestageforthetransformativeimpactoftheEgyptianRefiningCom-pany,whichisontracktobeginoperationsin2017.

ExcludingEgyptianRefiningCompanyandRiftValleyRailways,totaldebtasat31December2015felltoEGP5.24billion-animprovementofEGP1.22billionfromthe31December2014figure,onthebackofrepaymentsanddebtdeconsolidatedfromexitsincludingthesaleofASECMinyaandRashidiEl-Mizan.

Risk MitigationAs it has been for the past two years, themitigation ofbothfinancialandoperationalriskisakeyelementofourstrategy.WewillcontinuetoinstitutionalizeQalaa,givingourboardbetteroversightofthecompanyanditsbusinessunits.Thisprocesswillbeenhancedaswecontinuewiththesecondphaseofathree-yeartechnologyimplementa-tion cycle for a common information-sharing platformacrossQalaaandallofoursubsidiaries.

Sustainability and Community EngagementIwouldalsoliketotakeamomenttonotethat2016marksthe tenth anniversary of theQalaaHoldings ScholarshipFoundation. This foundation, which is funded throughanendowment,hasnowgranted151 full scholarships totalentedyoungEgyptianmenandwomentostudyatthegraduate level inanyfieldat internationaluniversitiesonthe sole condition that they return to Egypt towork intheirchosenfieldspost-graduation.Tofurtherunderscoreourbeliefinthetransformativeeffectofeducation,mywifeMayandIhavealsolaunchedanadditionalscholarshipthat

willbeawardedannuallytooneEgyptianstudenttostudythefieldoftheirchoiceatNewYorkUniversity(NYU).

2015 is also the year that we issued our first annualSustainabilityReportaspartofourmembershipintheUNGlobalCompact.I’mhappytoreportthatwewentaboveandbeyondtherequiredlevelofdisclosureandwerethusthefirstEgyptiancompanytoreceivean“A”graderatingonasustainabilityreportfromtheGlobalReportingInitiative(GRI).

OutlookWe remain true to the goal that we set for ourselvesmorethanadecadeagowhenwebegan.QalaaHold-ings aims tocreate shareholdervalue in2016bycapi-talizingontwoclearmacrotrends:(1)theexceptionaldemandforinfrastructurepresentedbyEgypt’suniquedemographics and (2) the ongoing lifting of the pre-2014 system of energy subsidies. Heading into 2016,our strategy remains unchanged:Wewill focus 100%ofourbandwidthonprovenwinnerswhilesimultane-ouslyenhancingcashflowstoallowustodrivegrowthat current assets. We will increase our ownership ofcore business unitswith a view to driving sustainablegrowth, and we will engage in share buybacks on anas-neededbasis.

Ahmed Heikalchairman & founder

Our dedication to supporting education was reinforced this year with the awarding of our one hundred and fifty-first scholarship through the Qalaa Holdings Scholarship Foundation, which celebrated its 10th anniversary

erc completion tAQA clients

QALAA HoLdings AnnuAL report 2015 76 QALAA HoLdings AnnuAL report 2015 Chairman’s Note

Qalaa Holdings (CCAP.CA on the EGX) is an African leader in energy and infrastructure. We build businesses in industries that will define our region’s future. Our subsidiaries work each day to deliver energy to consumers and businesses alike, to grow safe, healthy food, to provide reliable, fuel efficient transportation solutions, to add value to natural resources, and to help build critical national infrastructure. We prize innovation, value creation, and sustainability in all of our investments.

Drawing on our roots as Africa’s largest private equity firm, we have worked since 2004 to build world-class businesses that cater to the needs of the more than 1.3 billion consumers across our footprint in Egypt, East Africa, and North Africa. We bring to the table the passion of entrepreneurs, the proven systems of top-tier finance professionals, and deep operational expertise in each of our industries: energy, cement, agrifoods, transportation & logistics, and mining.

10 Years of Building Businesses

About Qalaa Holdings:

1,280 tons A terex 8800, the largest crane to ever be used on a construction site in egypt, hoists the 1,280 ton Korean-made Hcu into place at the egyptian refining company’s (erc) construction site in Mostorod.

ERC construction site, Mostorod, North Cairo

Qalaa HoldingsisfoundedtopursuegrowthopportunitiesinselectMiddleEasternandNorthAfricanmarkets.

Thefirmbuystheremaining49%ofASECandcarriesoutacapitalincreaseforASEC’sHelwan Portland Cement Company (HPCC)throughalistingontheEgyptianExchange.

Qalaa’sinvestmentsfocusedoneightsectors:• UpstreamanddownstreamOil&Gas• PetroleumRefining• CementProduction• Agriculture• GlassManufacturing• FoodProcessing• EnergyDistribution• MarineFuelingandBunkering

Qalaa’sfirstacquisitionis59%ofASEC Holding,adistressedcementproducer.

ThefirmestablishesGrandviewtoinvestinmid-capopportunities,compa-nieswithanenterprisevalueoflessthanUS$60million.

QalaaHoldingsestablishesTAQA Arabia,whichbecomestheplatformcompanyforitsfull-serviceMiddleEastenergysolutionsgroup.

QalaaHoldingsestablishestheNational River Transportation Company (NRTC)tocapi-talizeonEgypt’sunderdevelopedrivertransportsectoranddevelopstrategicallylocatedriverports.

2004

2005

2007

ASCOM Geology and Mining isspunofffromASECHoldingandturnedintoaplatformcompanyforminingwithinterestsinindustrialmineralsandpreciousmetals.

QalaaHoldingssold100%oftheEgyptian Fertilizers Company (EFC),nettingthefirmanditscoinvestorsmorethanfourtimestheirdirectinvestment.

Gozourwascreatedtopursueinvestmentsinintegratedregionalagriculturalandmulti-categoryconsumerfoods.Gozouracquired100%ofleadingprivateagriculturalpro-ducerDina Farms.

Gozouracquired31.5%oftheNational Company for Maize Products,aleadingplayerinintermediateindustriessuchaswet-cornmillingandsugarprocessing.

2006

By the end of 2007, Qalaa Holdings held 14 platforms and managed 88

portfolio companies with an aggregate headcount of 24,000 employees

A snapshot of the Past 10 Years

Gozouracquired100%ofconfectionerRashidi El-Mizan(aleadingproduceroftahinaandhalawa).

QALAA HoLdings AnnuAL report 2015 1110 QALAA HoLdings AnnuAL report 2015 About Qalaa Holdings

GlassWorksacquired35%ofMisr Glass Manufacturing (MGM).

Sphinx Glass breaksgroundonanEGP1.1billion(US$200million)state-of-the-artgreenfieldfloatglassplantinSadatCity,some70kilometersnorthofCairo.

Gozouracquired100%ofMisr-OctoberFoodProducts(El-Misrieen),acheeseproducer.

PartialexitofASCOMontheEgyptianExchange.

Qalaa’ssharesbegintradingontheEgyp-tianExchange.

Rashidi El-Mizanbeginsproductionatajamandtomatopastefactory.

Nile Logistics acquires51%ofSudaneserivertransportcompanyKeer Marine.

Tanmeyah Microenterprise Servicesopensforbusinesswitha15-branchnetwork.

ECARU and ENTAGareacquiredtoformthesolidwastemanagementplatformcompanythatsubsequentlybecameknownasTawazon.

ASCOM Precious Metals Mining (APM)acquiresastrategicstakeinGMAResources,aUK-listedgoldexplorationandproductioncompany.

TAQA Arabia launchesitsfirstpetrolstationsinBeheira,Assiut,Sharkeya,KafrEl-SheikhandIsmailia.

Gozourmakesitsfirstcross-boarderacqui-sitioninSudanwiththepurchaseofa75%stakeinAl-Musharaf,Sudan’sleadingproducerofhalawa,biscuits,andflour.

The National River Ports Management Company (NRPMC)completescon-structionofTanashPort(NorthCairo).

Berber for Electrical Power,a42MWpowerplantiscreatedtosecurevitalenergyforTakamol Cement,ASECCement’sgreenfieldcementplantinSudan.

Sphinx GlassbeginsoperationatitsEGP1.1billionstate-of-the-artfloatglassproductionfacility,themosttechnologicallyadvancedfactoryofitskindinEgypt.

ASEC Ready MixlaunchesoperationsatthreelocationsinUpperEgypt.

2007

2008

2009

2009

2010

From mid-2009 through the first half of 2010, Qalaa made a series of aggressive plays in the North and East African transportation sector as part of a comprehensive strategy to lay the foundations for an efficient, fully-integrated, river and rail transport network

spanning from Egypt’s Mediterranean coast to Kenya and Uganda


QalaaassumesmajorityinterestofRift Valley Railways (RVR)andspearheadsaUS$287millionturnaroundprogramthatseesefficiencyimprove,accidentratesfallandbettersynchronizationoffreightandpassengerschedules.

AUS$2.6billiondebtfinancingpackagefortheEgyptian Refining Company (ERC) issigned.

Nile Cargotakesdeliveryofthefirsttwocustom-designed,environmentallyfriendlyriverbargeunits,constructedbyAlexandriaShipyard.

Dina Farmslaunchesnewchainofretailstores.

Takamol,agreenfieldcementplantlocated320kilometersnorthoftheSudanesecapitalofKhartoum,beginsoperationwithacapacitytoproduce1.6milliontonsofcementperannum(MTPA).

WafraportfoliocompanySabinacon-cludesitsfirstcommercialwheatharvestinSudan’sWhiteNileState.

TheBoardofDirectorsoftheUnitedStatesOverseasPrivateInvestmentCorporation(OPIC)approvesanewten-year,US$150millionfinanc-ingfacilitytosupportQalaa’sinvestments.

The Egyptian Refining CompanyachievesfinancialcloseonaUS$3.7billionpackagetoconstructagreenfieldpetroleumrefiningupgradeprojectintheGreaterCairoAreatoaddressacriticalnationalrequirementforinfrastructure.

TAQA Arabiaannouncesthestartofcom-mercialoperationsforthefirstprivatesectorindependentpowerplant(IPP)tobetenderedbytheEgyptianpetrochemicalssector.

RVRannouncesthatithascompletedbuilding73kilometersofnewrailwaytrackbetweenMombasaandNairobi.

RVRcompletesthefirstphaseoftherehabilitationof500kilometersoftrackthatlinksKenyatoTororoinEasternUgandaandGuluinthenorth,endingtwodecadesofdisuseandinefficiency.

The National Company for Multimodal Transport (NMT)beginstotransportcontainersviariverbargesbetweenthePortSaidContainerTerminalandtheSuezCanalContainerTerminal.

Dina Farmsachievesrecordrawmilkproduction,northof200tonsperday.

Nile CargoannouncesthecompletionofitsfirstanchorageoperationwithEGP47millioninpurpose-builtfloatingcranesinthePortofAlexandria.

ASEC Minya,a2.0MTPAcementplantinMinya,UpperEgypt,beginsproduction.

Dina Farmstakesreceiptofthesecondandfinalherdof1,000high-qualitypregnantheifersfromtheUnitedStates,bringingthetotalherdsizeto15,000animals,including9,000milkingcows.

Qalaa Holdingscompletesitstransformationfromaprivateequityfirmtoaninvestmentholdingcompanywithafocusoninvestmentsininfrastructureandindustry.Thefirmalsobeginstherolloutofitsnewname,movingfromCitadelCapitaltoQalaaHoldings.

QalaaHoldingsplacesnewemphasisonamorefocusedstrategythatseeksinvestmentsin5coreindustries:energy,cement,agri-foods,transportation&logistics,andmining.

2010

GlassRock Insulation Co.,aportfoliocompanyofASCOM,beginsproducingtheenvironmentally-friendlyinsulationmaterial,rockwool,atitsUS$70milliongreenfieldfacility.

2012

2013

With US$ 8.3 billion in investments under control spanning 15 industries and 14 countries, Qalaa Holdings (then Citadel

Capital) was the largest private equity player in Africa as independently ranked by Private Equity International in 2010

20142011


revenue progression (egp bn)

eBitdA progression (egp mn)

Management Discussion & Analysis

Qalaa’s 2015 results reflect the conclusion of its transformation into a holding company and the prudent clean-up of its financial statements.

QalaareportedtotaladjustedrevenuesofEGP8,214.6millioninFY15,up27%y-o-ycomparedtotheFY14figureofEGP6,452.7million.Thecompany’stop-linehadbeenadjustedtoincludecontributionsfromASECMinya, ASEC Ready-Mix (cement) and confectionerRashidiEl-Mizan (agrifoods)—allexited inNovem-ber2015—upuntilOctober2015forthecementexitsanduntilNovember2015forRashidi.Qalaa’sstatutoryFY15 revenuesbookedon thecompany’s consolidatedincomestatement—excludingcontributionsfromsoldassetsduring2015—cameinatEGP6,638.9million.

Contributorstoadjustedrevenueswereweightedtowardthecement(38%oftotalrevenues)andenergysegments(31%).Meanwhile,revenuegrowthinFY15wasdrivenprimarilybybothcementmanufacturingarmASECCementandenergydistributionbusinessTAQAArabia,postinga20%and28%y-o-ygrowth, respectively. Qalaa alsobegan the full con-solidationofASCOMin3Q15,withthelattercontributingEGP325.5milliontoQalaa’stop-lineforthefullyear.

Managementnotesthatrevenuecontributionwillshiftdecisively toward the energy sector going forward fol-lowingthecementdivestmentinNovember2015andasERC,thecompany’sUS$3.7billiongreenfieldpetro-leum refining company, begins commercial operationsin the secondhalfof2017.This shift falls in linewiththecompany’sstatedstrategy,ofwhichitskeyelementsincludedeleveragingattheholdingandplatformcom-panylevels,driveninlargepartthroughthedivestmentofselectbusinessunitsandinvestmentinfuturegrowth

egp 8,214.6 mnvs. egp 6,452.7 mn in fy14

revenues

egp 847.1 mnvs. egp 651.9 mn in fy14

eBitdA

1.8 2.1

4Q FY

6.5 8.2

2014 2015

205.9 67.5

4Q FY

651.9 847.1

2014 2015

net profit progression (egp mn)

Revenue contribution will shift towards the energy sector going forward as

the Egyptian Refining Company (ERC) nears completion

throughtheacquisitionofadditionalstakesinkeysub-sidiariesandtheshepherdingofERCtowardthestartofproductionin2017.

Inthatregard,QalaaconcludedeightexitsinFY15thatgeneratedtotalproceedsofc.EGP2,400million,morethan 2.5x the value generated through three exits theprevious year.Net gains from these exited investmentsamounted to EGP 618.3 million of which EGP 528.1millionweregeneratedfromthesaleofitsinvestmentsinASECMinya,ASECReadyMixandRashidiEl-Mizan.

Qalaa’sadjustedEBITDAfortheyearclosedatEGP847.1millioninFY15,againstEGP651.9millionthepreviousyear, and despite missing contributions from divestedcompaniesASECMinya andASECReady-mix for themonths of November and December 2015, and fromRashidiEl-MizanforthemonthofDecember2015.Un-adjustedEBITDA,meanwhile, stoodatEGP447.2mil-lioninthesameperiod(excludingcontributionsfromsoldassetsduring2015).

BelowtheEBITDAline,resultswereweigheddownbyEGP687millioninnon-cashchargesfromimpairments&write-downsbooked in4Q15aspartof theongoingprogramtofocusonthecompany’sselectedsubsidiariesinenergyand infrastructure.ThesechargescontributedsignificantlytoanetlossofEGP833.0millionin4Q15against revenues in thequarterofEGP2,129.1million.Additionally, provisions booked in FY15 stood atEGP171.4million,whilelossesfromdiscontinuedoperations

)377.5( )833.0(

4Q FY

)855.6( )1,155.4(

2014 2015


QALAA HoLdings AnnuAL report 2015 1716 QALAA HoLdings AnnuAL report 2015 Management Discussion & Analysis

Management Discussion & Analysis )con’t(

cameinatEGP220million.TheaforementionedchargessawQalaareportanetlossafterminorityinterestofEGP1,155.4millionforthefullyear2015comparedtoanetlossofEGP855.6millioninFY14.

Management views total provisions and write-downsbooked during the final quarter of the year as a prudentclean-upthatwillhelprestructuringitsfinancialstatementsand conclude its transformation into a holding companywithongoingoperationsinenergy,transportation&logis-tics,andminingsectors.Asummaryofimpairments/write-offsbookedduringthelastquarteroftheyearisasfollows:1.Upstreamoil&gasimpairmentstotalingEGP273mil-

lionprimarilyrelatedtoNileValleyPetroleumCompany—anupstreamoil&gasassetwhichholdsconcessionsinbothSudanandSouthSudan.Theimpairmentowestotherecentdeclineinglobaloilpricesandtheprolongedtensions in relations between Sudan and South Sudan.Qalaa had previously fullywritten down its two otherupstreaminvestments,namelyNOPCandNPC.

2.Impairments booked at the subsidiary level, includ-ingASCOM,ASECHolding, andUnitedFoundriesamong others, amounted to c. EGP 51 million andreflectthenormallevelofimpairmentsatthesesubsid-iaries.

3. Impairmentof goodwill and tradename amounting toEGP 263 million primarily relates to ASEC Holding(EGP107million)andUnitedFoundries(EGP128mil-lion).Managementoptedtotakechargesonbothcom-paniesgiven the recentdownturn in thecement sectorowingtoincreasedcapacityutilization(asenergysupplyimprovedmarket-wide)thatputpressureonsellingprices

debt progression (egp bn)erc

We managed to deliver on our strategy with 2015 having been fundamentally about investment in our future growth through

the execution of our divestment program and the investment of substantial management bandwidth in selected holdings

7.05

debt progression (egp bn)others

6.81 6.73 6.796.46 6.63

3.41

5.24

6.73

3.51 3.52

5.495.87

6.76

8.83

10.2

andmargins.It isworthnotingthatUnitedFoundries’mainbusinessiscorrelatedtothecementsector.

4.EGP100million in impairments related toQalaa’s in-vestments inTanweer, a business unit operating in themediasector,werebookedaspartoftheclean-upprocess.

Totalconsolidateddebtasat31December2015(excludingERCandRiftValleyRailways)fellEGP1.22billionfromthefigurereportedattheendofDecember2014,owinginlargeparttothereductionofEGP968.2millionindebtfromASECHoldingin4Q15.Intotal,Qalaadeconsoli-datedandrepaiddebtofc.EGP2.16billioninFY15,partofwhichwas consolidated onQalaa’s balance sheet andanotherunderdiscontinuedoperations(classifiedasliabili-tiesheldforsaleonQalaa’sbalancesheet),bothofwhichplayintothereductionoffinancialandoperationalrisk.

DeleveragingthroughthedeconsolidationofdebtviaexitsandpaymentsonexistingfacilitieswasakeypriorityofQa-laaHoldingsinFY15andwillcontinuetobeahallmarkofthefirm’sstrategygoingforward,withafurtherEGP260millionalreadydeconsolidatedinthefirstquarterof2016.

IncludingRVRandERC,totalbankdebtatyear’sendstoodatEGP17.11billioncomparedtotheEGP13.5billionbookedasatDecember31,2014.Theincreasecomesonthebackofdraw-downsofpreviouslyarrangeddebtforbothcompanies.

Afinancialperformance snapshot forQalaa’skey sub-sidiaries follows, with detailed overviews available onpages46to75ofthisannualreport.Completefinancialsareavailablefordownloadonir.qalaaholdings.com.

egp 37,177 mnvs. egp 32,415 mn in fy14

total Assets

* Detailed overviews of the performance of operational companies in each of Qalaa’s key industries follow; complete financials are available for down-load on ir.qalaaholdings.com.

debt progression (egp bn)Africa railways

0.85

1.261.42

1.551.65 1.64 1.66 1.67


QALAA HoLdings AnnuAL report 2015 1918 QALAA HoLdings AnnuAL report 2015 Management Discussion & Analysis

eneRGY

Consolidated Energy Revenuesegp 2,518.6 mn (fy15)

QALAA HOLDINGS CONSOLIDATED REVENUES FY15

fy14 fy15

1,928.3 2,518.6

fy14 fy15

188.8 282.8

Consolidated Energy EBITDAegp 282.8 mn (fy15)

AGRIFooDs

Consolidated Agrifoods Revenuesegp 1,251.1 mn (fy15)

fy14 fy15

1,008.1 1,251.1

fy14 fy15

166.1 113.7

Consolidated Agrifoods EBITDAegp 113.7 mn (fy15)

31%

8%

38%

4%

4%

15%

EGP

8.2 bnenergy

cementtransportation & LogisticsMiningAgrifoodsothers

2015 Financial Highlights

tRAnsPoRtAtIon & LoGIstICs

Consolidated Trans. & Logistics Revenues

egp 676.4 mn (fy15)

fy14 fy15

567.7 676.4

fy14 fy15

-95.0 -9.4

Consolidated Trans. & Logistics EBITDA

egp -9.4 mn (fy15)

CeMent

Consolidated Cement Revenuesegp 3,135.9 mn (fy15)

fy14 fy15

2,606.1 3,135.9

fy14 fy15

582.7 600.0

Consolidated Cement EBITDAegp 600.0 mn (fy15)

MInInG

Consolidated Mining Revenuesegp 702.3 mn (fy15)

fy14 fy15

632.2 702.3

fy14 fy15

46.2 56.6

Consolidated Mining EBITDAegp 56.6 mn (fy15)


* Qalaa Holdings began fully consolidating ASCOM in 3Q15, contributing a total of EGP 325.5 mn in revenues and EGP 51.8 mn to EBITDA for FY15.

QALAA HoLdings AnnuAL report 2015 2120 QALAA HoLdings AnnuAL report 2015 2015 Financial Highlights

Divestment Program Update

In 2015 Qalaa Holdings successfully executed a total of eight exits that generated a total of c. EGP 2.4 billion, more than 2.5x the value generated through three exits the previous year.

InDecember 2015,QalaaHoldings’agrifoods unit, Gozour, divested itscheese manufacturer, Misr OctoberforFood Industries (El-Misrieen), toa domestic industrial investor at anenterprise value of EGP 50 million.Theacquirerassumedalldebt,liabili-ties and obligations of El-Misrieen,including bank debt of c. EGP 16.5million. Qalaa had previously fullywrittendown the valueof its invest-ment in El-Misrieen, which ceasedoperationsin2012.

InDecember2015,QalaaHoldings’agrifoods unit, Gozour, concludedthesaleofits100%stakeinitssub-sidiary, Rashidi El-Mizan (REM),toSaudiArabia’sOlayanFinancingCompany and its subsidiaries for atotal consideration (equity value)of EGP 518million. Established in1889,RashidiEl-Mizan is a front-runner in the halawa and tahinamarketsinEgypt.WhileunderQa-laa Holding’s management, REMinnovatedthecreationofnewSKUs,diversified into the jamand tomatopaste sector, andexpanded its foot-printtonewexportterritories.

QalaaHoldings finalized the sale ofits entire holding in subsidiaryTan-meyah Microenterprise Services toEFG Hermes in March 2016. Thetransaction valued 100% of Tan-meyah atEGP450mnwhileQalaaHoldingsheldaneffectiveownershipof70%in thecompany.Establishedin2009,TanmeyahisEgypt’sleadingprivate-sector provider of microfi-nance solutions, offering financialservicestoEgypt’slargeunderservedmicro- and very-small-enterprisetiers. Tanmeyah had EGP 509mil-lionin loansoutstandingto108,000active borrowers at the end of 2015withmore than 1,500 employees at114 branches across Egypt and hasserved more than 365,000 clientssinceinception.

Tanmeyah El-Misrieen

Rashidi El-Mizan

EGP 450 mn

EGP 518 mn

tanmeyah, a business that Qalaa built from

scratch, was sold to efg Hermes in a deal that valued 100% of the

company at egp 450 mn

Qalaa and rashidi el-Mizan management

innovated the creation of new sKu’s and expan-sions into new markets

In November 2015, Qalaa Hold-ings’businessunit,Mashreq,signedanagreementwiththeGeneralAu-thorityoftheSuezCanalEconomicZone for the transfer of its conces-sion contract. The agreement cov-ers a 210,000 square meter plot oflandinEastPortSaidthathadbeenawarded to Mashreq for the con-structiononabuild-operate-transferbasisofaliquidbulkterminalatEastPortSaid,thefirsttankterminalandlogisticshubofitskindintheregion.During the timeMashreq held theconcession,theprojectwasplannedoutanddevelopedtoapointwhereitcannowbebuiltoutrapidly.Thepartieshaveagreedthattheconces-sion’stransferwillseetheAuthorityrepayallcosts incurredbyMashreqrelatedtothedevelopment,withthelatterhandingover theconcession’slandandallassociateddesigns.

In November 2015, Qalaa Hold-ings’businessunit,ASECCement,concludedthec.EGP1billionsaleof its stakes in subsidiaries ASECMinya Cement and ASEC ReadyMix toMisrCementQena.ASECMinyaCementisanEgyptiancementproducerlocatedinUpperEgypt.ItbegancommercialoperationsinAu-gust2013withacapacityof2.0mil-lion tonsper annum.ASECReadyMixisaproduceranddistributorofready-mix concrete, operating sixbatch plants inUpper Egypt. BothASEC Minya and ASEC ReadyMix have established themselves ascritical players in the vital UpperEgyptianmarket.Atthetimeofsale,ASECCementheld46.5%ofASECMinya Cement and 55% of ASECReadyMix.

InDecember2015,QalaaHoldingsreachedfinancialcloseonthesaleoftheentiretyofitsstakeinMisrGlassManufacturingCompany(MGM),alead-ingregionalproducerandexporterofglasscontainers,andtheentiretyofitsstakeinUnitedGlassCompany(UGC)toMiddleEastGlassManufacturingCompany,atacombinedequityvaluefor100%ofbothMGMandUGCofc.EGP828million.QalaaHoldingshadmaintainedaneffectiveownershipof15.2%inMGMandUGC.

Inthesecondquarterof2015,Qalaaconcludedthesaleof its27.5%stakein Misr Cement Qena, a publiclytraded cement company in Egypt,whichresulted inagain fromsaleofinvestment equivalent to EGP 101million. The transaction also sawproceedsbeingutilized todeleverageattheASECCementlevel,withdebtreducedbyEGP365million.

In February 2015, Qalaa exited itsfull 80% stake in leading nationalinvestment bank PharosHolding inadealvaluing100%ofthecompanyat c. EGP 40million. The salewasmade to a group of investors led byPharos’ chairman and founder, Dr.MohamedTaymour.Pharosgrewtoa top-five broker and a leading ad-visory, asset management, research,privateequityandbookkeepingfirmduring theperiodofQalaa’s invest-ment.TheSaleandPurchaseAgree-ment (SPA), which was executedthrough Qalaa Holdings subsidiaryFinanceUnlimited,coversthesaleof100% of shares owned directly andindirectly byQalaaHoldings in theshare capital ofPharos (representing80%ofPharos’issuedcapital).

Mashreq

ASEC MinyaASEC Ready Mix

Misr Glass Manufacturing (MGM) and United Glass Company

Misr Qena

Pharos

QALAA HoLdings AnnuAL report 2015 2322 QALAA HoLdings AnnuAL report 2015 Divestment Program Update

2015 Milestones

QalaaHoldings sponsorsthe Egyptian-Kenyan Business Forum. Heldin conjunction withthe sixth round of theKenyan-Egyptian JointCommittee Conference,the sponsorship is inkeeping with Qalaa’scommitment to nurtur-ingstrongertiesbetweenEgyptanditscontinentalpartners.

January 2015

Qalaa Holdings divestsits full 80% ownership inPharos Holding, in a dealvaluing100%ofPharosatc.EGP40million.Duringtheperiod ofQH’s investment,Pharosgrewtotop-fivebro-ker and a leading advisory,assetmanagement, research,andprivateequityfirm.

February 2015

Ahmed Heikal, Chairman and Founderof Qalaa Holdings, and Hisham El-Khazindar, Co-Founder and ManagingDirector,werepartoftheEgyptianprivatesectordelegation at the2015 WEF’s an-nual meeting in Davos.Heikalspokeatadinnersessionheadlined“ShapingEgypt’sEconomic Transformation,” at whichEgyptian President Abdel Fattah El-Sisigave a keynote speech outlining Egypt’seconomicroadmapandhis2020visionfortheEgyptianeconomy.

March 2015

Qalaa Holdings board of directors approves EGP 1.7 billion capital increase, raising the current paid-in-capitaltoEGP9.7billionfromEGP8billion.Undertheproposed increaseQalaa anticipates issuing up to an ad-ditional340millionshares.

As part of the company’s commitment to Africa and thebettermentof the communities inwhich it operates,QalaaHoldings reinforcesAfrican cultural connections across thecontinent as the proud sponsor of the4th Annual Luxor African Film Festival.

ASEC Engineering and Management,thelead-ingcementplantO&Mserviceprovider inEgyptandtheMENAregion,signsacontractwithEthio-pia’sNationalCementShareCompanytoprovidefull technical assistance for the operation andmaintenanceofacementplantwithaproductionca-pacityofonemilliontonsofclinkerperannum.Theone-yearcontractisrenewableforafive-yearterm.

The Egyptian Economic De-velopment Conference (EEDC)showcasedQalaaHoldings’Egyptian Refining Company (ERC), a fullyfunded US$ 3.7 billion project andEgypt’slargestin-progressprivate-sec-tormegaproject,inSharmEl-Sheikh.Theprojectwaslaudedasamodelforwhat a ‘win-win’ industrial public-private partnership should look like.QalaaChairmanandFounder,AhmedHeikal also joined industry leaders aswell as Egypt’s minsters of petroleumandofenergyandelectricity todiscussEgypt’senergyfuture.

Qalaa Holding’s celebrates thegraduationof the inaugural classofaProfessionalDiplomafortheCement Industry. The programis a collaborative effort betweenASEC Engineering and theAmerican University in Cairo’sEngineering and Sciences Ser-vicesDepartmentofferingacom-prehensiveacademicandpracticaleducation in thefieldof cementengineering and management,andiscomprisedofthreespecial-izations:SpecializedMaintenancefor Cement plants, Operation& Production Engineering, andTesting&QualityControl.

QALAA HoLdings AnnuAL report 2015 2524 QALAA HoLdings AnnuAL report 2015 2015 Milestones

2015 Milestones )cont’d(

The Qalaa Holdings Scholarship Foundation (QHSF)announcesitsninthannualclassofscholar-shiprecipientsinaceremonyattendedbytheMinis-terofSocialSolidaritybringingthetotalnumberofscholarshipsawardedto138.

June 2015

QalaasignsasetofagreementswithFi-nancial Holdings International (FHI),oneofitsmajorcoinvestors,throughwhichQalaa will acquire additional stakes insubsidiaries that are core toQalaa’s futureasaholdingcompany:ASECHolding(ce-ment),TAQAArabiaandMashreq(ener-gy),NileLogistics(transportation),DinaFarms Supermarkets (food retail chain),andUnitedFoundries(metallurgy),fromFHI.Qalaaagreestosimultaneouslysellits holdings in multiple non-core busi-ness units to FHI, including MENAHomes, Grandview, and Dina FarmsLandCompanies.

Qalaa Holdings successfullyconvenes an event to discussthe future of trade betweenEastAfrica and Egypt, introducingRift Valley Railways (RVR)tomembersoftheEgyptianbusinesscommunity at the Federation ofEgyptian Industries. The eventsets thegroundworktostimulatesignificant improvement inbilat-eraltradebetweenEgyptandthecountriesofEastAfrica.

September 2015

November 2015

December 2015October 2015

An active member of the UNGC,Qalaa Holdings’sustainabilityprogramreceivesglobalawardsandrec-ognition.World Finance Magazine namesQalaa’sgovernanceframeworkasthebestinEgyptinits2015corporategovernanceawardsprogramandCorporate Live WirerecognizesQalaa’sinnovationbyawardingittheMostOutstandingInvestmentFirmattheEgyptInnovation&ExcellenceAwardsfor2015.

QalaaHoldings exitsMisr Glass Manufactur-ing (MGM)andUnited Glass Companyatanequityvalueofc.EGP828million.TheexithelpsaccelerateprogressonQalaa’sstrategytodelever-ageattheholdingandplatformcompanylevels.

Qalaa Holdings sells its stakes in cement subsidiariesASEC Minya CementandASEC Ready MixtoMisrCementQenaforc.EGP1billion,implyingavalueofc.EGP2.1billionfora100%stakeinbothcompanies.

Gozour signs SPA’s to divestRashidi El-MizanassetsinSudanand El-Misrieen in Egypt for en-terprise values ofUS$4.3millionand EGP 50 million respectively;transactionsexpectedtoreconsoli-date of a total EGP 20million indebt from Gozour’s balance sheetasQalaa continues to divest non-coreunits and focusongrowthofprovenwinnersinstead.

QalaaHoldings’businessunit,Gozour,sells100%ofconfec-tioner, Rashidi El-Mizan toSaudiArabia’sOlayanFinancingCompanyfora totalconsider-ation(equityvalue)ofEGP518million. A further EGP 237millionindebtwasdeconsoli-datedfromQalaa’sconsolidatedfinancialstatementasaresultofthetransaction.

QALAA HoLdings AnnuAL report 2015 2726 QALAA HoLdings AnnuAL report 2015 2015 Milestones

For the past 10 years Qalaa has been leading by example to invest responsibly and drive sustainable economic growth in Egypt and the region.

Leading By example to Invest Responsibly & Create Inclusive Growth

Qalaa Holdings’ sustainable investments in a diversearray of sectors have had a significant impact on theeconomies of the region over the years. Our opera-tions in critical sectors like energy and infrastructurenot only support national economies, but also have ademonstrableimpactonlocalcommunitiesbysupport-ing job creation andmeeting the demand for criticalgoods and services.Whilewe continue to evolve andrefineourinvestmentfocusevenfurther,werecognizethat the successful and responsible operation of ourbusinessescontributesnotonlytoourowngrowthandsustainability,buttothatofthecountries,economies,andcommunitiesinwhichweengage.

Moving Beyond Basic ComplianceQalaa Holdings became a member of the UNGC, theworld’s largest voluntary corporate social responsibilityinitiative with over 12,000 businesses and non-businessparticipants from145countries, inOctober2014.As anactivememberoftheUNGC,Qalaahasworkedtoalignitssustainabilityprogramandcorporategovernanceframe-workwitharesponsibleinvestmentphilosophythatreflectstheUNGC’sTenPrinciplesintheareasofhumanrights,labor,environment,andanti-corruption.

Allmembers of theUNGCare required to deliver anannual sustainability report thatoutlines the impactofbusiness practices on critical sustainability issues. In2015,Qalaa achieved a significantmilestone with theissuanceofitsfirstcomprehensiveSustainabilityReportand was the first Egyptian company to receive an A-graderatingfromtheGlobalReportingInitiative(GRI)

onitsfirstreport.Theprestigiousrecognitionwasates-tament to the company’s commitment to transparencywithinallaspectsofitsoperations.

In a further recognition of our commitment to sus-tainability and responsible investing, Qalaa Holdingswasalsonameda foundingmemberoftheUNGlobalCompactNetwork Egypt, an independent foundationthatfunctionsasthelocaloperationscenterfortheUNGlobalCompactNetwork (UNGC)andahubtocre-ateawarenessandcapacity-buildingtohelpstakeholdersbuildsustainablebusinessandcomplywithinternationalbestpracticesinEgypt.

Since we started a decade ago all the way through to where we stand

today, we have made the principles of sustainability, inclusivity, stewardship, and innovation central to our growth

as an institution

GROwTH

AFRICA

CREATINGINCLUSIVE

in

At Qalaa we believe that the private sector’s ability to grow and generate profits is directly linked to the existence of a stable and

prosperous society and thus there is tremendous overlap between the interests of the public and private sectors

us$ +60 mncontributed to community development programs since 2004

+151scholarships awarded since 2007

us$ 30,000annually donated to cover operating costs for the QHfsc

us$ 100,000contributed by Africa railways to management training program

QALAA HoLdings AnnuAL report 2015 2928 QALAA HoLdings AnnuAL report 2015 Sustainable Investments

our Key sustainability Initiatives

Our sustainability initiatives are firmly rooted within six distinct but interrelated pillars: education, vocational training, human capital development, community engagement, community development, and environmental sustainability. These pillars embody our company’s core values and the vision that our executive management has for the company and the countries of the region in which we operate.

QHSF is an extension of our belief that the private sector must help lead positive change; by investing in the graduate education of Egypt’s brightest young scholars over

the past 10 years, we are investing in the future development of the country

Hisham El-Khazindarco-founder and Managing director, Qalaa Holdings

Ahmed Heikalchairman and founder, Qalaa Holdings

ENvIRONMENTAl SUSTAINABIlITYEDUCATION

COMMUNITY ENGAGEMENT

vOCATIONAl TRAINING

HUMAN CAPITAlDEvElOPMENT

COMMUNITY DEvElOPMENT

creAting incLusive growtH

A Focus on education

Qalaa Holdings Scholarship FoundationEveryyear since2007 theQalaaHoldingsScholarshipFoundation (QHSF)has beengiving15-20ofEgypt’sbrightest students the chance topursuegraduate stud-iesabroadatleadingglobaluniversitiesintheU.S.andEurope. By providing youth from cities throughoutEgyptwithopportunitiesweareenablingthemtomakeapositiveimpactontheeconomicandsocialwell-beingofthecountry.

QHSFwasfoundedbyQalaaHoldings(formerlyCitadelCapital) in2007asapartofthecompany’scommitmentto education and human capital development in Egyptand across the region.Toensure theprogram’s continu-ity,weestablishedanendowmenttofundtheactivitiesofthe foundation.Today,QHSFhasgrowntobecomethelargestprivatesectorfundedscholarshipprograminEgypt.

Thusfarthefoundationhasgranted138academicscholar-ships to talented studentswhoare interested inpursuingMaster’s degrees and PhD’s at international universitiesworldwide, and if we include our newest 2016 class ofscholarshiprecipientsthatwillbeannouncedatour10thanniversary celebration in June, we will have proudlyawardedmorethanc.150scholarships.

151since 2007 & counting

total scholarships


Vocational TrainingThe Egyptian Refining Company (ERC),our US$ 3.7 billion refinery in Egypt, hasbeenprovidingvocational trainingopportu-

nities for themembersof the localcommunitythroughpurpose-built communitycenters since2008.Thus far,950membersofthecommunity,215ofwhicharewom-en,havebeentrainedaswelders,pipefitters,electricians,mechanics,cellphonemaintenanceproviders,computertechnicians,andseamstresses.

ERC has been carrying out a community needs as-sessmentandstakeholdermappingtobeabletodesignstrategicandculturallyappropriateinterventions.ERCviews the building of strong relationshipswith neigh-boring communities as a long-term effort which willbe ongoing throughout the construction phase whichnowstandsatmorethan80%completionandintotheoperationalphaseoftheproject.

Human Capital DevelopmentInessence,allofourresponsibleinvestingini-tiativesfallundertheumbrellaofhumancapi-

taldevelopment.Westrivetodevelophumancapitalacrossour footprint, from our scholarship foundation in Egyptwhich supports Egypt’s new generation of leaders, to ourmanagementtrainingprojectcarriedoutthroughRiftValleyRailwaysinKenyaandUganda.ThemanagementofQalaaHoldingsfirmlybelieves thatbridging theknowledgegapsthatcurrentlyexistinourregionwillrequiremultipleinitia-tives.Whetherit’stheawardingofpost-graduatescholarships,vocationaltrainingormentorshipprogramschampionedbyourownexecutives andemployees,ourultimategoal is togrowthetalentpoolandunlockthehiddenpotentialwithintheeconomiesofourregion.

Qalaahasrecentlyenteredintoanewinitiativeinpartner-shipwithUSAID,five public universities inEgypt, andotherprivatesectorplayerstoprovidedisadvantagedyouth

from27governoratesacrossEgyptwithnewopportunitiesinhighereducation.Theprogram,whichwilltarget387students in itsfirst year,will grantundergraduatemerit-basedscholarshipsandmentorshipservices(c.900hoursoftrainingperstudent)tostudentsfromunderprivilegedandunderservedcommunities.

Theprogramalsooffersover250recipientstheopportunitytostudyintheUnitedStatesforasemesterabroadexperi-ence.QalaaHoldings’participationintheprograminvolvesthedeliveryofin-houseandon-campusguestlectures,op-portunitiesforone-on-oneinteractionwithQalaaemploy-ees,andopeningitsdoorsforstudentstovisitthesitesandofficesofQalaaanditssubsidiaries.

Community EngagementIn addition to the 1,000+ employees in ourAfrican transportationunit,RiftValleyRail-ways(RVR),thenationalrailwayofKenyaand

Uganda,thecompanyhashelpedcreatejobsforSMEsalongtherailwaylinethroughitslinkagesprogram,providingin-comeforanadditional2000familiesinKenyaandUganda.

With the skillsgained fromthepartnershipbetweenRVRanditstechnicalstrategicpartner,ALL,localRVRstaffarenowtransferringthesameskillstoothersandhelpingtobuildmorelocalcapacitytorunastate-of-the-artrailway.ThroughRVR’shighly-successfulManagementTraineeDevelopmentProgram,youngKenyansandUgandansaredevelopingthehands-onskillsneededtoleadtherailwaytothehighestinter-nationalstandards;39studentshavegraduatedfromthepro-gramthusfar.Additionally,30RVRdrivershavegraduatedfromaspeciallydesigned18-monthtrainingcourse,whichinvolvespracticeonaUS$891,000train-drivingsimulator.

ImprovingemployeesafetycontinuestobeatoppriorityforRVR.ThecompanywontheIOSHRailwayGroup’sInternationalAward for reducing thenumberofon the

Alexandria

Menoufia

GharbeyyaDaqahleyya

Ismailia

Qaliubeyya

CairoGizaFayyoum

Minya

Assuit

Aswan

Our scholars represent a diverse cross-section of Egyptian society

Sudanese girl in refurbished Wafra school

12egyptian governorates

geographic reach

InNovember2006,QalaaHoldingsDonatedUS$250,000to establish theQalaaHoldings Financial ServiceCenter(QHSF)attheAmericanuniversityinCairo(AUC)—thefirst institution in theMiddleEastdedicated toproviding

financial and analytical education to prepare students forcareersinsecuritiestrading,riskmanagement,andassetal-location.Intheyearssince,QalaaHoldingshasdonatedafurtherUS$30,000annuallytocoveroperatingcosts.

The Qalaa Holdings Financial Service Center (QHSF) at AUC


jobinjuriestoworkersondutyinRVR’sNairobiofficeby 90%.The prestigious recognitionwas the culmina-tionofatwo-yearprogramdesignedtoeffectsimplebutimportant changes inworkingproceduresbasedon the‘5S’methodology:sorting,settinginorder,shining,stan-dardizing,andsustaining.

Community DevelopmentSince2008,adedicatedteamoftrainedspecial-ists, theEgyptianRefiningCompany’s (ERC)CommunityRelationsTeam,hasworkedhand

in handwith stakeholders including localNGOs, com-munitydevelopmentassociations,youthcenters, culturalcenters,publicfiguresandcommunityleaderstoassessandfulfillcommunityneeds.Theteamhasalsopartneredwithdomesticandinternationaldevelopmentagenciestocapi-talizeonavailablecompetenciesandmaximizetheresultsoftheirefforts.Theoutcomehasbeenaseriesofsustainable,high-impactinitiativesintheareasofeducation,employ-ment,vocationaltraining,health,recycling,sustainability,women’sempowermentandpovertyeradicationstrategies.ERC’steamconductsjob-matchingactivities,refurbishesareaemploymentcenters,andconductsworkshopsforlo-calyouth focusedonsoftand technical skills.Theyhavealsodevelopedaprogramthatawardsgrantstohelpyouthstarttheirownsmallenterprisesandtrainswomeninman-agementandleadershipskills.

school refurbishmentERCbeganaddressingtheproblemofpoorlymaintainedpublic schools in 2012with projects to refurbish dilapi-dated,unsafebuildingsandschoolyards.Thecompanyhasthusfarinvestedinupgradingfacilitiesinthreeneighbor-ingschools.Upgradesincludetheinstallationofsaferstair-cases and functional classroomswith new light fixtures,

desks, chairs and fans. More than 8,500 students nowenjoyamoreconducive learningenvironmentasaresultoftherefurbishments.

women’s empowermentIncooperationwithSavetheChildrenandtwolocalNGOs,ERChasbeeninvolvedintrainingwomeninthecommu-nityonhowtostartandrunsmallbusinessestohelpsupportthemselvesandtheirfamilies.Twenty-twoprojectsstartedbyfemaleshavethusfarbeenawardedstart-upgrants.

youth initiativesIncooperationwiththeAinShamsYouthCenter,ERCcompletedrefurbishmentsatalocalyouthcenterwiththecapacity to accommodate6000-7000people.Capacity-building sessionswere offered to 25 youth leaderswhowill create and conduct cultural activities and sportingeventssuchasfootballtournamentsinthecenters.

Environmental Sustainability

promoting green investmentEfficient design and cleaner production are partoftheoperationaladded-valuethatweintroducetoourinvestments.QalaaHoldingsisoneofthe

leadingpromotersofenvironmentalsustainabilitythroughits investments incoreindustries, fromenergyandwastemanagementtotransportationandtheproductionofenvi-ronmentallyfriendlybuildingmaterials.

the egyptian refining company (erc)OurUS$3.7billionsecondstageoilrefineryinthegreaterCairoarea,willbefillingthesupplygapforhighvalueEuro-VDiesel (thecleanest fuelof its typeintheworld).ERC’sfeedstockisfueloil,whichiscurrentlyconsumedasfuel.The

refining process to produce lighter products such as dieselremovessulfurfromthefueloil.ERCwillthuspreventthereleaseof93,000tonsofsulfurthatarecurrentlybeingemit-tedintotheair,representingareductionof186,000tonsinannualSO2emissions.Thisequatestoa29.1%reductioninthetotalamountofSO2currentlyemittedinEgyptfromtheburningofsulfur-containingfuelssuchasfueloilanddiesel.

glassrock Insulation,aportfoliocompanyofASCOM,oursubsid-iarycompanyforinvestmentintheminingsector,isnowproducingthermal,acousticandfireproofinsulationmate-rialsfromitsUS$70milliongreenfieldfacilityinEgypt,and TAQA Power, a division of our energy subsidiary,TAQAArabia,isinvestinginrenewableenergywithsolarandwindprojects.

tawazonOur subsidiary for investment in the solidwastemanage-ment industry, has been providing biomass and RDF asalternativefuelstoheavyenergyconsumerssuchascementfactoriesforthepastfiveyears.In2015,Tawazonsignedafive-yearcontracttosupplyanEthiopiancementcompanywithawastetothermalenergysolution.Asstipulatedbytheagreementbetweenthetwocompanies,Tawazon’ssubsid-iary,ECARU,willbethetechnologyandserviceproviderresponsibleforcollecting,transportingandprocessinglocalbiomassthatwillbeconvertedtoenvironmentally-friendlyalternative solid fuel. ECARU has also signed anMOUwithEastAfricaMining(EAM)ofEthiopiatoestablishajointventure companydedicated tobiomassmanagementandalternativesolidfuels.Thenewcompanywillsupplyal-ternativesolidfuelassourceofenergyforpowergenerationtoreplacefossilfuels(coal)forcementcompaniesinEthio-piaanditsneighboringcountries.

Qalaa has put environmental principles at the heart of its investments, including the Egyptian Refining Company, which will cut the nation’s sulfur emissions by nearly a third, Tawazon, a waste management company that recycles and turns waste into energy, and Nile logistics, which is relieving pressure on Egypt’s roads by

using more fuel-efficient byways on the Nile River

ECARU, Collecting biomass

Vocational training at ERC


Qalaa Holdings’ governance structure has evolved significantly over the past 10 years as the company transitioned from a two-person partnership to Africa’s leading private equity firm with 19 platform companies and finally to its current structure as an investment holding company with a narrower focus and a smaller number of subsidiaries.

Governance and Accountability

Managing Change ThroughoutQalaa’s10-yearjourney,maintaininggoodgovernance has been critical in seeing us through thevolatilityofourmarketsandhelpingusbuildsustainablebusinessesinmultiplecountriesthroughouttheregion.

Weprideourselvesonalongstandingtraditionofhavingaboardofdirectorsdominatedbyamajorityofnon-ex-ecutives.In2015,thecompanycontinuedalongitspathtostrengthenthegovernancefunctiontosupportsustain-able growth, enhance riskmanagement, andmaximizeefficiency at Qalaa Holdings and across all subsidiarycompanies.ThisdeterminedapproachtogovernancehasprogressivelyregulatedawiderangeofpracticesatQalaaHoldingsanditssubsidiarycompanies,rangingfromriskassessmentframework,anti-fraudandfinancialreportingpolicies to themanner in whichmanagement interactswith shareholders and the creationof shareholder valueacrossoursubsidiaries.

Institutionalizing the corporate governance processes isan ongoing, long-term objective across all our platformcompanies. Equally important are the principles of fair-ness,openness, and transparencywhichwehaveworkeddiligentlytoinstillaspartofourcorporateculture.

AninterdisciplinaryapproachtogovernanceincorporatesQalaa Holdings’ management, industry platform teams,and the senior management of subsidiary companies byway of formal quarterly meetings through the manage-mentboards.Thesemanagementboardsalsoconveneonanas-neededbasis.

Thisquarterlycycleofmeetingsandreviews,culminat-ing in themeetingofQalaaHoldings’auditcommitteeandboard,ensuresarigorousprocessofparticipationbyawidecrosssectionofexecutivesfromQalaaHoldingsanditssubsidiarycompanies.

Qalaa Holdings engages the services of only the mostreputableauditfirmsforbothongoingstatutoryauditsanddue diligence for all subsidiaries. Strict internal controlsand reporting standards are a cornerstone of the gover-nance principles at Qalaa and its subsidiaries. Financialandoperationalreportsaretransparenttoallpartieswithavestedinterest—frommanagementandboardmemberstoshareholders.

Qalaabelievesthathigh-qualitygovernanceisafundamentalenablerofsuperiorcorporateperformance.Thecomponentsof effective governance reduce risk, identify internal andexternalthreats,andassistincapturingprofitablebusinessop-portunities.QalaaHoldings’governanceprinciplesaligntheinterestsofmanagement,shareholders,theboardofdirectors,andsubsidiaries,facilitatingwell-informeddecisions.

QalaaHoldingshascompletedaprocessofinstitutionaliza-tionthatbeganin2013atboththeQalaaandsubsidiarylev-els.Thecomprehensiveprogramincludedtherefinementand improvementof all systems, policies, andproceduresthatmanagementneedstosupportandgrowthebusiness.

Newpolicydocumentsweredeveloped inparallelwiththe refinement of existing charters such as the auditcommittee and compensation committee. Developed

policiesthatarenowbeingimplementedincludetheriskassessmentframework,inadditiontotheanti-fraudandinsider trading policies. In addition, audit committeesmodeledontheQalaaHoldings’auditcommitteecharterhavebeenestablishedforallmajorsubsidiarycompanies,wherethemembersoftheauditcommitteesareindepen-dentofthecompany’smanagement.

Qalaa Holdings’ Internal Audit represents a key elementin its corporategovernance framework,with amission toaddvalueand improveQalaaHoldings’overalloperationsby providing relevant, timely, independent, and objectiveassuranceandadvisoryactivities.

TheInternalAuditteamassiststheorganizationinaccom-plishingitsobjectivesbyusingasystematicanddisciplinedapproachtoevaluateandimprovetheeffectivenessofriskmanagement,control,andgovernanceprocesswhichpro-videsQalaaHoldings’stakeholderswithreasonableassur-anceoverthegroups’operationsandstrengthensthefirm’sabilitytomaximizestakeholdervalue.

QalaaHoldings’InternalAuditfunctionisanindependentfunctionwithfunctionalreportinglinestotheauditcom-mitteeandadministrativereportinglinestothechairmanandchiefexecutiveofficer.

With a zero-tolerance approach to fraud, the InternalAudit function has implemented an Anti-Fraud Policyto promote consistent corporate integrity, honesty, andethical behavior within Qalaa and its subsidiaries. Thisapproachhelps thefirm toprotect theorganization’s as-

sets, reputation, and employees. The Anti-Fraud Policywasreinforcedbyavailingananonymouswhistle-blowing channeltoreceiveinformationfrominsideandoutsidethecompanyontheQalaaHoldingswebsite

Qalaa Holdings believes in continuously promotingand empowering the control environment within thecompany.Accordingly, the InternalAudit functionhasdevelopedaRisk Assessment Frameworktobefollowedthroughout theorganization.RiskAssessment contrib-utes to theeffective andefficientdemonstrable achieve-mentofobjectivesandtheimprovementofperformanceonmultiple fronts.Qalaa’s InternalAudit strives toen-surethepresenceoftheInternalAuditfunctionacrossallplatforms,initscapacitytooversee,monitorandguide,advise,andadministeritsplatform.

Our approach to governance ensures sustainable growth, enhanced

risk management, and maximized efficiency across all our subsidiaries

The principles of fairness, openness, and transparency are important

components of our corporate culture at both the holding and subsidiary

company levels

Ahmed Heikalchairman of the Board representing citadel capital partners Ltd

QALAA HoLdings AnnuAL report 2015 3736 QALAA HoLdings AnnuAL report 2015 Corporate Governance

Executive Board Members

Non-Executive Board Members

Ahmed Heikalchairman representing citadel capital partners Ltd

Amr El-Garhy*Board Member representing citadel capital partners Ltd

Moataz FaroukBoard Member representing citadel capital partners Ltd

Karim SadekManaging director, Head of transportation & Logistics

Hisham El-Khazindarco-founder and Managing director representing citadel capital partners Ltd

Yaser M. GamaliManaging director, Head of governance

Magdy El-DesoukyBoard Member, representing citadel capital partners Ltd

Robert wages*Board Member

Osama HafezBoard Member, representing olayan

Philip Blair Dundas, Jr.Board Member

Ragheed Najeeb ShantiBoard Member

Qalaa Holdings’ Board of Directors provides management with

oversight and a solid regional perspective and now includes six non-executive board members nominated by the shareholders

GoVeRnAnCe AnD ACCoUntABILItY

Audit committee

internal Audit charter

insider trading policy

Anti-fraud policy

risk Management

Finance & Investment Committee

the finance & investment committee convenes on a quarterly basis, or more frequently if needed, and is responsible for reviewing and recommending capital raisings (debt and equity) and allocation across subsid-iary companies. All acquisitions are approved by the finance & investment committee.


Karim SadekBoard Member, representing citadel capital partners Ltd

Abdalla El-EbiaryManaging director

Amr M. El-KadiHead of ir & risk Management

Hisham El-Khazindarco-founder & Managing director

Karim BadrManaging director

Amr El-Garhy*Managing director, Head of Agrifoods and corporate finance & investment review function

Alaa El-AfifiManaging director, Head of Mining

Tarek SalahManaging director, Head of cement

Moataz Faroukchief financial officer

Mohamed AbdellahManaging director


Hisham El-Khazindarco-founder and Managing director representing citadel capital partners Ltd

Qalaa Holdings’ governance principles align the interests of management, shareholders, the board of directors,

and subsidiaries, facilitating well-informed decisions

* Stepped down as of 2016 * Stepped down as of 2016



Strict internal controls and reporting standards are a cornerstone of our

governance principles at Qalaa Holdings and our subsidiaries

Management Board

Audit Committee

the management board convenes on a quarterly basis, or more frequently if needed, and is responsible for reviewing, amending, and endorsing the subsidiary companies’ financial performance and overall strategy. Attendance by the finance & investment committee is welcomed.


Philip Dundaschairman of the committee


Magdy El-Desoukycommittee Member



Osama Hafezcommittee Member

Amr El-Garhy*Managing director, Head of Agrifoods and corporate finance & investment review function







Good governance is not just about obeying the letter of the law, but also

about institutionalizing processes coupled with principles of fairness

and transparency

Compensation CommitteePhilip Dundaschairman of the committee

Magdy El-Desoukycommittee Member

Osama Hafezcommittee Member

Qalaa Holdings Management

Management committeeSubsidiary Companies

Qalaa Holdings

finance & investment committee

executive committee

Management Board

compensation committee

Audit committee

Audit committee

statutory Board

statutory Board

* Stepped down as of 2016


Management Committee

Our Management Committee is a monthly forum that engages a wider management team of Qalaa Holdings to review market developments and progress on corporate initiatives at Qalaa Holdings and its subsidiaries.




Amr El-Garhy*Managing director, corporate finance & investment review function





Mohamed AbdellahManaging director

Khaled BadawiManaging director



Ahmed Abdel-Sattargroup chief information officer

Rami BarsoumHead of information technology

Hazem DakrouryHead of government relations

Ghada HammoudacMo & Head of Marketing communications

Alaa El-FasManaging director

Ahmed El-SharkawyManaging director

Mostafa SowelemManaging director

Raouf TawfikManaging director

Tarek HassanHead of Legal department

Amr M. El-KadiHead of ir & risk Management

Yasmin Al-Gharbawiegeneral counsel

Shady RaphaelHead of internal Audit

Ihab RizkHead of Human resources

Mohsen Mansourprincipal

* Stepped down as of 2016

QALAA HoLdings AnnuAL report 2015 4342 QALAA HoLdings AnnuAL report 2015 Management Committee

subsidiary Management teams

ENERGY

AGRifoods

Khaled Abubakrtaqa Arabia - executive chairman

Hassan MokhtarManaging director

Sherif Ibrahimsabina - cfo

Pakinam Kafafitaqa Arabia - ceo

Mohamed Saaderc - Managing director

Hisham Sheriftawazon - ceo

Tamer Hassandina farms - Managing director, Agricultural sector

George Fouaddina farms - general Manager, retail company

Maged Faragnile Logistics - chairman of the national co for Multimodal transport

Titus Naikunirift valley railways - chairman

TRANspoRTATioN & LoGisTics cEmENT

Tarek El-GammalAsec cement - ceo

Fayez GressAscoM - ceo & executive chairman

Amro Aboueshtanmeyah - chairman & ceo

Amr Abou El-Azmtanmeyah - deputy chairman & ceo

Ashraf AbousenAsec cement - cfo

Dr. Mohamed waeerdina farms - Managing director, Livestock

miNiNG micRofiNANcE

QALAA HoLdings AnnuAL report 2015 4544 QALAA HoLdings AnnuAL report 2015 Subsidiary Management Teams

Qalaa Holdings Investments

overview of taqa ArabiaTAQA Arabia is Qalaa Holdings’ primary operationalinvestment in Egypt’s vital energy sector.Qalaa initiallyinvested inTAQA in June 2006 in the belief that rapidindustrialgrowthinEgyptandtheregionwouldprovideanopportunity forprivatesectorplayerstosatisfyunmetindustrial demand for energy.We also had the foresighttopredictthatgovernmentswouldinevitablyhavetode-regulatetheirenergysectorsgivingampleopportunitiesforan aggressive, experienced, andwell-financed group likeTAQAtobecomeamarketleader.

Ten years later we have been proven right. TAQAArabia today stands as Egypt’s largest private sectorenergydistributioncompany,withmorethan18yearsof experience investing and operating energy infra-structure including gas transmission and distribution,power generation and distribution, and themarketingof petroleumproducts.And this is just thebeginning.Thecompanyhasrecentlytakensolidstepstoinvestinalternativeenergyincludingwindandsolarpowerproj-ectstohelpmeetEgypt’sgrowingenergyneedsafterthegovernmentannouncedtheintroductionofnewfeed-intariffsforrenewableenergy.

tAQA Arabia

Our investment in TAQA Arabia underscores our commitment to developing large, nationally

important infrastructure and energy projects that are cornerstones of Egypt’s energy security and

economic growth

QH Ownership:

62.5%

Footprint:

egypt, Libya, Jordan, Qatar, uAe

Key Management:

Khaled AbubakrExecutive Chairman

pakinam KafafiChief Executive Officer

peter MofeedChief Financial Officer

TAQA Arabia provides services through four arms:

gas distribution (residential, commercial, and industrial) • TAQA Arabia is the largest natural gas distributor in

Egypt,withlong-termconcessionscovering11Egyptiangovernorates.TAQAArabiahasalargedownstreamnatu-ral gas engineering and construction division, handlingworkforthegroup’sdistributionarmsaswellasprivateandpublicsectorthirdpartiesinEgyptandtheMENAregion.

power generation and distribution• TAQAArabia is the leading integrated private sector

powerplayerintheEgyptianmarketwithengineering,development, generation, and distribution operationsalong the power value chain. TAQA’s power arm fi-nances,designs,constructs,operatesandmaintainslow,mediumandhigh-voltagepowerplantsanddistributionnetworksfortheoilandgas,industrial,residential,com-mercial,andtourismsectorsinEgypt.TAQAPowerisalsothefirstprivatesectorcompanyinEgyptlicensedtodistributepowerinanindustrialzone.

fuels Marketing and distribution• TAQAArabiaisthefirstlocalprivatesectorplayerthat

sells refined petroleum products and fuel oil to retail,industrial, and wholesale customers with a focus onunder-penetrated areas with a favorable competitivelandscape. Additionally, TAQAMarketing also oper-ates anetworkof stations to convert and fuel vehicleswithcompressednaturalgas.

engineering, procurement and construction• This business unit incorporates the company’s engi-

neering,procurementandconstructionservicestoen-surethatTAQAArabiaisabletoservenewmarketsandclients through its subsidiaries andothers.TheE.P.Carmactsasafeederindustrytotheremainingarmsandisresponsiblefordesigningandbuildingpipelinecon-nectionsaswellasconnectingcustomersandclientstothenationalgrid.

1 million households, industrial, and commercial clients will be connected to the natural gas network by TAQA Arabia by the end of 2016, making

it the largest private sector gas distributor in Egypt

723,000clients connected to the gas grid

us$ 150 mninvestments in developing solar energy

42tAQA filling stations in egypt

11tAQA has presence in 11 egyptian governorates

energy

TAQA Arabia workers on-site

QALAA HoLdings AnnuAL report 2015 4948 QALAA HoLdings AnnuAL report 2015 Our Investments - TAQA Arabia

2015 operational Update

731 Mn Kw/Hrtotal power generated & distributed

44 % y-o-y increase in eBitdA

28 %y-o-y increase in revenues

3.1 BcMtotal gas distributed

2015 figures

Consolidated TAQA Arabia Revenuesegp 2,302.9 mn (fy15)

1,798.0 2,302.9

fy14 fy15

Consolidated TAQA Arabia EBITDAegp 249.5 mn (fy15)

172.8 249.5

fy14 fy15

TAQA Arabia workers on-site

• obtained egAs approval to construct a new gas network in the city of Beni sueif.

• in final stages of negotiations with several touristic developments to construct their main feed-in gas line.

• Awarded a 3-year distribution o&M contract for emaar Misr’s uptown cairo development – one of the largest residential real estate development projects in egypt.

• plans underway to build two solar farms with a generation capacity of 50 Mw each and a com-bined investment cost of c. us$ 150 million.

• signed a Joint development Agreement with ital-ian energy company edison to build a 180 Mw power plant in egypt at an investment cost of c. eur 100 million.

• successfully inaugurated four additional fuel mar-keting stations with a total investment of egp 4.1 million, bringing the total number of operating sta-tions to 40, spanning 14 governorates.

• studying potential expansion of the company’s natural gas distribution business to serve industrial and household clients located far from the present natural gas grid.

• completion of a project to connect 320,000 resi-dential clients to the natural gas grid in 14 villages across upper egypt.

• expanding electricity distribution to large indus-trial clients in 6th of october and 10th of ramadan industrial zones.

QALAA HoLdings AnnuAL report 2015 5150 QALAA HoLdings AnnuAL report 2015 Our Investments - TAQA Arabia

overview of eRCDeveloped byQalaaHoldings, ERC is a state-of-the-artUS$3.7billionrefineryandEgypt’s largestprivatesector,in-progressmegaproject.Therefinery,whichisbeingbuilton330,000squaremetersoflandontheoutskirtsofCairo,willconvertlowestvaluefueloilintomiddleandlightdistil-latesthatEgyptisindireneedofforitsdomesticconsump-tion.ERCwilleliminate93,000tonsofEgypt’ssulfuremis-sionsandimprovethequalityofthenationalpetrolsupply.

InJune2012,ERCreachedfinancialcloseontheequityanddebtcomponentsoftheprojectfinancing,withGulfandinter-nationalinvestors,globalexportcreditagencies,anddevelop-mentfinanceinstitutionsinvestingalongsideQalaaHoldings.

EGPC’sCairoOilRefineryCompany (CORC), thena-tion’slargestrefinerywith20%ofEgypt’scurrentrefiningcapacity,willprovideERCwithfueloilasfeedstock.ERC’sproductionofliquidproductswillbesoldtotheEGPCatinternationalpricesundera25-yearofftakeagreement.

As an import substitution project delivering diesel andotherhigh-valueproductstotheEGPCattheheartoftheconsumptionmarketinGreaterCairo,ERCisviewedasstrategicallyimportanttoEgypt’senergysecurity.

the egyptian Refining Company )eRC(

ERC will have the capacity to produce 4.2 million tons of refined

products per year, including 2.3 million tons of Euro-v diesel, representing more than 50% of

Egypt’s current imports

7,140piles completed

80,102 m3

concrete poured

600pieces of equipment installed

8,122workers at site

14,326tons of steel erected

19.5 mn site man-hours

>84 %complete

Project Update as of March 2016

egyptian Refining Company

Lpg

Light distillates (naphtha, gasoline)

Middle distillates ( diesel, Jet, Kerosene, gasoil)

Market

egpc

Market

Light products

coke & sulfur

Lightproducts

Fuel oil

Heater

crude oil

corc refinery

67%

eRC ProcessERC construction site, Mostorod, North Cairo

energy

QH Ownership:

19%

Footprint:

egypt

Key Management:

Mohamed saadManaging Director

Mostafa el-ramlyCFO

QALAA HoLdings AnnuAL report 2015 5352 QALAA HoLdings AnnuAL report 2015 Our Investments - ERC

c. US$ 1.2 billion equity package with participation of:

c. US$ 2.6 billion debt package with participation of:

export-import Bank of Korea (KeXiM)Japan Bank for international cooperation (JBic)european investment Bank (eiB)nippon export and investment insurance (neXi)African development Bank (AfdB)Mitsui & co.

Qatar petroleum international (Qpi) Qalaa Holdingsegyptian general petroleum corporation (egpc)infraMed fundinternational finance corporation (ifc)others, including MenA and Africa Joint investment fundsnetherlands development finance company (fMo) german investment corporation (deg)

US$ mn US$ mn

230

185

100

85

169

29

362

26

540

360

450

200

225800


erc has surpassed the 84% completion mark and is fully on-track to begin production in 2017.

eRC’s Financial BackersPartnerships with key development finance institutions and sophisticated international investors allowed Qalaa Holdings to raise c. US$ 1.2 billion in equity and US$ 2.6 billion in debt for the Egyptian Refining Company. These backers include:

Key Facts About eRC

Headquartered in cairo, egypt

Total Production of Refined Products and High-Quality Oil Derivatives (Annually) 4.2 million tons

Production of Euro-V Standard Diesel (Annually) 2.3 million tons

Jobs Created 8-9 thousand at peak of construction, 700 permanent positions

Expected Date of Operations 2017

Total Reduction in Egypt’s SO2 Emissions* 29.1%

Total Reduction in Egypt’s Diesel Imports* 50-60%

Value of Debt Package for ERC us$ 2.6 billion

Total Equity Invested in ERC c. us$ 1.2 billion

Qalaa Holdings’ Effective Ownership 18.9%

ERC will result in more than US$ 300 million in annual benefits to the government through avoided transportation and insurance costs, the elimination of product shipment losses, and revenues generated from

storage and processing fees paid by ERC to EGPC companies


* Percent reduction from present-day levels

• construction began in february 2014.• detailed engineering has been completed in 2015.• piping and equipment installation commenced in

2015 and was 42% complete at year’s end.• More than 1,140 major pieces of equipment including

the Korean-made, 1,280-ton Hcu, the largest piece of equipment that has ever entered an egyptian port,

and the 553-ton vacuum distillation unit have all been installed.

• 85% of the underground piping has been installed and the domestically-fabricated above-ground piping installation has begun.

• Mechanical outfitting has reached 47% with comple-tion forecast for november 2016.

QALAA HoLdings AnnuAL report 2015 5554 QALAA HoLdings AnnuAL report 2015 Our Investments - ERC

overview of tawazon Tawazon isQalaaHoldings’ subsidiary for investmentintheregionalsolidwastemanagementindustry.Tawa-zon currently controls two companies – the EgyptianCompanyforSolidWasteRecycling(ECARU),asolidwastemanagementserviceoperator,andtheEngineer-ingTasksGroup(ENTAG),asolidwastemanagementengineeringandcontractingcompany.

QalaainvestedinTawazoninNovember2009aspartofitsenergyportfolio.Sincethattime,Qalaahasworkedcloselywithmanagement to help boost human andfinancial re-sourcestobebetterabletocapitalizeonexistingopportuni-tiesaswellasdevelopandexploreothers,bothonalocalandregionalscale.Ourshort-tomedium-termfocusisonpro-vidingbiomassandRDFasalternativefuelstoheavyenergyconsumerssuchascementfactoriesaswellastheexportofagri-pelletstobeusedforresidentialandindustrialheatingpurposesthroughdensificationprojects.

Tawazon is active in the following areas: • Agriculturalwastecollection• Biomasstreatmentanddisposal• Municipalsolidwastetreatinganddisposal• Solidwastefacilitiesengineeringandcontracting

tawazon

132,671 tonstotal biomass supplied (ecAru) in 2015

109 %y-o-y growth in consolidated tawazon eBitdA

ecAru TheEgyptianCompanyforSolidWasteRecycling(ECA-RU)collects, transportsandprocessesagriculturalwaste.Itisaregionalleaderintheproductionofbiomassthatcanbeconvertedtoenvironmentally-friendlyalternativesolidfuel.Biomassisarenewable,carbonneutralenergysourcethatcomesfromagriculturalresiduesthatwouldotherwisebeopenlyburned.Thiswastetoenergysolutionforheavyindustries suchas cementmanufacturing isbeneficialonmultiple fronts. Ithelpsnationssolve theirbiomasschal-lenges,itreducesemissionsthatcomefromburningfossilfuelssuchasfueloil,naturalgasandcoal,anditisamorecost-efficient and sustainable source of energy. ECARU

hasbeensupplyingthealternativesolidfuel,biomass,asasourceofenergytoEgypt’sleadingcementcompaniesforthepastfiveyears.

entAgTheEngineeringTasksGroup(ENTAG)hasbuiltmorethan75sortingandcompostingfacilitiesinEgyptthusfarand also runs projects in Saudi Arabia,Malaysia, Libya,Sudan,Oman, and Syria.The company acts as a “dooropener”forECARU.


Consolidated Tawazon Revenuesegp 215.7 mn (fy15)

130.3 215.7

fy14 fy15

Consolidated Tawazon EBITDAegp 33.2 mn (fy15)

15.9 33.2

fy14 fy15

energy

ECARU, agricultural waste collection

• given heightened energy consumption in egypt, the cement industry has turned to burning coal and using rdf (an environmentally-friendly solid fuel) as a source of energy for the first time.

• ecAru increased its rdf fluff production capacity so as to keep up with the new demand.

• By 3Q15, revenues were up 17% year-on-year de-spite some industry-wide stoppages.

• entAg saw a more than twenty-one-fold increase in revenues in the first quarter relative to the same period in 2014, mainly due to the design and

construction contract for an engineered sanitary landfill in oman.

• ecAru signed a five-year contract in early 2016 to supply ethiopia’s Messebo cement company with an environmentally-friendly and cost-efficient al-ternative solid fuel that will gradually replace coal.

• ecAru signed an Mou with east Africa Mining (eAM) of ethiopia to establish a joint venture company dedicated to biomass management and alternative solid fuels as a source of thermal energy for heavy energy consumers such as the cement industry.

QH Ownership:

68.1%

Footprint:

egypt, Libya, Jordan, Qatar, uAe

Key Management:

Hisham sherifChief Executive Officer

QALAA HoLdings AnnuAL report 2015 5756 QALAA HoLdings AnnuAL report 2015 Our Investments - Tawazon

overview of nile LogisticsNile Logistics is Qalaa Holdings’ investment vehicle inlogistics,rivertransportation,andportoperationsmanage-ment.InEgypt,NileLogistics’subsidiariesofferstevedor-ing services in theMediterranean andRed Sea seaports,acontainerfeederserviceacrosstheSuezCanal,andrivertransportation servicesmoving bulk cargo between northandsouthEgypt.InSouthSudan,aNileLogisticssubsidiaryoperatestwoconvoysofriverbargesthattransportavarietyofcargobetweenthenorthandthesouth.

QalaaHoldingsinitiatedinvestmentsinrivertransportationinEgyptinSeptember2006,basedonthepremisethatrivertransportationisoneofthemostfuelefficient,andthuscostefficient,meansofmovinglargevolumesofcargooverlongdistances.Thecapacityofone riverbarge isequivalent to20-40 truck loads,yetconsumesa fractionof the fuel re-quiredfortheequivalentnumberoftrucks.Needlesstosay,rivertransportationreducestheamountofgasemissions,asaresultofthereductioninenergyconsumption.

NileLogisticsistodayhometofourcompanies:NileCargo,NationalRiverPortsManagementCompany(NRPMC),Nile Barges, and Ostool Trucking Company, in whichQalaaHoldingsholdsasignificantminoritystake.Withitswell-developedportfolioofservices,NileLogisticsprovidesadoor-to-doorserviceforindustrialandagriculturalclientsinEgyptandSouthSudan.

nile Logistics

As the price of diesel in Egypt starts to approach international levels, the cost

of moving cargo overland will gradually become more expensive, making river transportation even more competitive

vis-à-vis trucks


800,000 tonsof cargo handled at seaports in 2015

30,000 TEU’Smoved between scct and port said west in 2015

4 Companies—1 Seamless Door-to-Door Service• nile Cargo )nC(:Owns and operates a fleet of barges

thattransportsbulkcargoalongtheNile.ThecompanyalsooperatesabargefeederserviceinPortSaid,linkingtheeastandwestcontainerterminals.

• national River Ports Management Company )nRPMC(: Ownsandoperatesanetworkofportsand portequip-ment.Servicesofferedareprimarilystevedoringandware-housinginAlexandria,Suez,andDamietta.

• nile Barges for River transport:LocatedinSouthSudan,operates afleetofbarges that transport goodbetweenthenorthandsouthofthecountry.

• ostool trucking Company:Ownsasizeablefleetofmul-tipurposetrucksinEgyptthatserviceasizeablenumberofindustrialclients

Consolidated Nile Logistics Revenuesegp 65.6 mn (fy15)

60.4 65.6

fy14 fy15

trAnsportAtion & Logistics

Nile Logistics crane and river barge

• stevedoring activities showed a promising initial in-crease in 2014 and the first half of 2015, yet revenues declined year-on-year due to a contraction in the volume of imports on the back of egypt’s foreign exchange crunch and government-imposed import restrictions in the second half of the year. in 2015, the company handled almost 800,000 tons of cargo at seaports.

• the company plans to transform its nubareya port into a grain storage facility and a container terminal, as a way to diversify revenue.

• container feeder services in port said expanded with the number of teus increasing in 2015 as a result of increased efficiency in loading and unloading. during the course of the year, the company managed to move close to 30,000 teus between scct and port said west.

QH Ownership:

67.6%

Footprint:

egypt, south sudan

Key Management:

gen. Maged faragChairman of the operating companies Nile Cargo & NRPMC in Egypt & Nile Barges in South Sudan

Nile Logistics transporting cargo

QALAA HoLdings AnnuAL report 2015 5958 QALAA HoLdings AnnuAL report 2015 Our Investments - Nile logistics

overview of Africa Railways AfricaRailways isQalaaHoldings’ subsidiary for invest-mentsinAfrica’srailwaysector.AfricaRailways’primaryinvestmentatpresent isacontrollingstakeinRiftValleyRailways(RVR),whichholdsa25-yearconcessiontoop-eratetheKenya-Ugandarailway,linkingtheIndianOceanportofMombasatotheinteriorsofKenyaandUganda.

In February 2010,Qalaa acquired a stake inRVR andtodayitcontrols85%oftherailoperator.Thedecisionto invest was underpinned by the strong freight vol-umesmoving through the Port ofMombasa, the drivetoexpandintraregional trade,andthesimple fact thataproperlyfunctioningrailwayshouldbethemostefficientprovideroflong-haulbulktransportinAfrica.We then succeeded in creating an investmentopportu-nitythatwasattractivetosophisticatedglobalinvestorsbyreducingpolitical,operational,andfinancialrisk.

Africa Railways

Today RvR is the most efficient, cost-effective, and environmentally-friendly mode of transporting goods

in East Africa

SincethestartoftheUS$299millioncapitalinvestmentand turnaround program that began in January 2012,RVRhasinvestedinmodernrailoperatingtechnology,rebuildinginfrastructure,expandinghaulagecapacityanddevelopingmodernrailoperatingskillsinthecompany’s2,000strongworkforce.

The time that it takes tomove a container by rail fromMombasa to Kampala has been reduced by nearly 30%andtrainsarerunningonscheduleforthefirsttimeinde-cades.RVRhasalsooverhauledmorethanhalfofitsfleetoflocomotivesandpurchased20additionallocomotivesinadditiontohundredsofwagons.

Africa railways Holding ifc African Latin American and caribbean fundfMo (dutch)deg (german)international finance corp. fiseA (of france’s propArco)

African development BankKfw entwicklungsbank (german)international finance corp (ifc) fMo (dutch)equity Bank (Kenya)icf debt poolBio (Belgium)

% ownershipUS$ mn

40

22

32

20

20

20

10

39

23.4

12.3

11.5

103.8

US$ 164 million senior debt package with participation of

US$ 104 million in equity for Africa Railways with participation of

RVR’s Financial BackersPartnerships with key development finance institutions and sophisticated international investors have allowed Qalaa Holdings to raise US$ 299 million in equity, senior debt and additional financing for Rift valley Railway and Africa Railways, including:

“the Methodology”

de-risK Line up funding (dfi’s And ecA’s)

Hire & trAin tALent

trAnsportAtion & Logistics

QH Ownership:

29.7%

Footprint:

Kenya, uganda

Key Management:

isaiah okothRVR Group CEO (as of March 1st, 2016)

titus naikuniRVR Chairman

Rift Valley Railways train

QALAA HoLdings AnnuAL report 2015 6160 QALAA HoLdings AnnuAL report 2015 Our Investments - Africa Railways

20locomotives received

1.35 mn tonsof cargo hauled

1,278 mn net-ton-kilometers

240wagons added to fleet

12 %y-o-y increase in net-ton-kilometers

10 %y-o-y increase in hauling capacity

Key Facts About Rift Valley Railways

Headquartered in nairobi, Kenya

Annual Passengers Served over 6 million

Employees 2,050

Total Track 2,352 kilometers

Countries Served Kenya and uganda

Qalaa Holdings Investment february 2010

Percentage Controlled by Qalaa Holdings (RVR) 85%

2015 figures

RvR’s three-point turnaround strategy continues to bear fruit with higher levels of goods being

transported at higher speeds, as the rolling stock continues to improve


RVR, transporting cargo

rvr’s three-point turnaround strategy is nearing its end. in 2015 it continued to bear fruit with higher levels of goods being transported at higher speeds, as the rolling stock continues to improve. during the year, rvr was able to:

• receive 20 reconditioned locomotives – the first batch to arrive in east Africa since 1987 and a key upgrade to the continent’s transportation capacity.

• Add 240 wagons to its fleet, half in the last quarter of 2015 and the other half in the first quarter of 2016.

• reduce cycle times through direct investments in infra-structure and improvements to efficient asset utilization.

• increase hauling capacity through purchasing new and rehabilitating old rolling stock.

• raise net ton kilometers (ntK), by 12% year-on-year to reach 1.278 million ntK in 2015.

• increase the volume of cargo by 10% to 1.354 million tons.

• reduce transit time significantly. Along the Mombasa-nairobi-Mombasa route, average transit time for the various wagon classes dropped by 4% year-on-year to 2.3 days in 2015.

QALAA HoLdings AnnuAL report 2015 6362 QALAA HoLdings AnnuAL report 2015 Our Investments - Africa Railways

overview of AseC Holding Thecementsectorincludesthreedivisions:cementman-ufacturing,management&services,andconstruction.

ASECHoldingisaregionalverticallyintegratedcementplayer,focusingonplantengineeringandconsultancy,construction, automation, and operational technicalmanagement,withoperationsspanningAfricaandtheMiddleEast.Sinceitsinceptionin1975,ASECHold-ing has made important contributions to the mod-ernizationof the cement industry in theMiddleEast,especiallyinEgypt,asanengineeringandconsultancyfirm.Intheensuingdecades,ASECHoldinghasgrownsignificantlytoformafullyfledgedgroupcomposedofthree distinct divisions serving the industry and end-consumersalike.

ASEC Holding was Qalaa’s first investment. In De-cember2004Qalaaacquired59%ofASECHolding,adistressedcementproduceratthetime.InMay2005,thefirm bought the remaining 49% of ASEC and carriedout a capital increase forASEC’sHelwanPortlandCe-mentCompany(HPCC)throughalistingontheEGX.InAugust2005,QalaasolditsstakeinHPCCtoglobalproducerItalcementiinatransactionthatvaluedHPCCatUS$795million.

AseC Holding

During the first 9 months of 2015, Qalaa reduced its exposure to the cement

industry with ASEC Cement concluding the sale of its stake in business unit Misr

Cement Qena as well exiting ASEC Minya and ASEC Ready-Mix

QalaaHoldingshasmadesignificantpost-acquisitionin-vestmentsinASECHolding,extendingitscementmanu-facturing footprint beyondEgypt to Sudan andAlgeria.ASECHoldingisnowwell-positionednotjustasaleadingindependentmanufacturer,butalsoasaregionalproviderofend-to-endsolutionsforworld-classcementplants.

Thegroup’sdecisiontoenterthecementproductionarenawasanimportantstrategicmove.In2006,thegroupestab-lishedASECCementas itsproductionarm, investing inbothgreenfieldventuresandexistingcementplants.

Asec Holding’s portfolio includes:• CementmanufacturingthroughASECCementandits

subsidiaries• Cement projectmanagement, consultancy, operation,

andmaintenancesolutionsthroughsubsidiariesASECEngineeringandASENPRO

• Construction and contracting through subsidiariesARESCOandASECAutomation

2015 Operational Update

ASEC Cement DivestmentsInthesecondquarterof2015,ASECCementconcludedthesaleofits27.5%stakeinMisrCementQena,apubliclytradedcementcompanyinEgypt,forc.EGP700million.

InOctober2015ASECCementsolditssubsidiariesASECMinyaandASECReadyMixtoMisrCementQenafortotal consideration of EGP 1 billion. ASECMinya andASECReadyMix,bothgreenfield investments,had es-tablished themselves as criticalplayers in thevitalUpperEgyptiancementmarket.ASECMinyabegancommercialoperations inAugust2013withanameplatecapacityof2.0milliontonsperannum.ASECReadyMixisapro-duceranddistributorofready-mixconcretethatoperatessixbatchplantsinUpperEgypt.

Consolidated ASEC Holding Revenuesegp 1,906.2 mn (fy15)

1,731.1 1,906.2

fy14 fy15

Consolidated ASEC Holding EBITDAegp 398.1 mn (fy15)

583.3 398.1

fy14 fy15

ceMent

Workers assemble bagged cement

ASEC Minya cement plant

QH Ownership:

69.2%

Footprint:

egypt, sudan, Algeria

Key Management:

tarek salahCEO

QALAA HoLdings AnnuAL report 2015 6564 QALAA HoLdings AnnuAL report 2015 Our Investments - ASEC Holding

Cement

ASEC Cement ThereclassifiedsalesrevenuesofASECCement,reflectingthesaleofMisrCementQena,ASECMinyaandASECReadyMix,increasedby87%year-on-yeartoreachEGP821.9million in2015. Ontheotherhand, theadjustedsalesrevenues,reflectingcontributionfromASECCementassetsupuntiltheendofJune2015(MisrCementQena)andOctober2015(ASECMinya&ASECReadyMix),climbed10%year-on-yeartoreachEGP1,906.2millionin2015.Thegrowthintop-linewasprimarilydrivenbyoperationsatSudan’sAl-TakamolCementhavingpostedan impressive 82% year-on-year increase in revenues toEGP821.9millioncomparedtothepreviousyear’sfigureofEGP450.5million.

Al-Takamol Cement’s almost two-fold growth in rev-enueswastranslatedintoamorethanfour-foldincreasein EBITDA standing at EGP 196.1 million, thanks totightoperationalmanagementandstate-of-the-artDan-ishtechnology.

Al-Takamol produced a total of 760 thousand tons in2015,up73%year-on-yearanddespiteaslowdowndur-ingthethirdquarteroftheyearonthebackoffuelshort-ages.Increasedproductionaswellastechnicaldifficulties

82% y-o-y increase in revenue at Al-takamol

73% y-o-y increase in production volume at Al-takamol

egp 821.9 mn2015 revenue at Al-takamol

egp 456.2 mn2015 revenue at Aresco

egp 660.7 mn 2015 revenue at Asec engineering

132%y-o-y increase in revenues at Aresco

21%y-o-y increase in revenue at Asec engineering

facedatcompetingplantsallowedthecompanytoincreaseitsmarket share to 33% in 2015 compared to 24% thepreviousyear.TechnicaldifficultiesacrossSudaneseplantshavecontinuedinto2016,leadingtochokedsupplyandaconsequent surge in prices.Al-TakamolCement is thusideallypositioned tocaptureaneven largermarket shareandtomaintainitsstellarperformance.

AttheEBITDAlevel,reclassifiedtoreflectthesaleofMisrCementQena,ASECMinyaandASECReadyMix,thecementsegmentreportedEGP163.7millionin2015,upalmostthree-foldcomparedto2014.

Management & Services

ASEC Engineering• ASEC Engineering manages plants in Egypt with a

combinedcapacityof13.5MTPA• 2015 production stood at 11.9 million tons, up 16%

year-on-yearonthebackofimprovementsatallman-agedprojectsasfuelsupplybecamemoreconsistent

• Operational improvementswere reflectedon revenueswhichcameinatEGP660.7millionin2015,up21%year-on-yearcomparedtoEGP547.2millionin2014

• ThecompanyturnedapositiveEBITDAof51.7mil-lionin2015,reversinglastyear’snegativefigureofEGP2.8million

• Theimprovementinfinancialmetricsisowedtoenhancedoperationalefficiency,reducedfixedcosts,higher feepertonandsignificantcontributionsfromoverseasprojects

Construction

ASENPRO• ASENPROis apioneer in thefieldofenvironmental

protectionintheMENAregion,specializedincontrol-lingpollutionanddustemissionsresultingfromcementproduction

• ASENPRO supplies cement plants with a broad con-tinuumofservicesandenvironmentalcontrolequipmentonaturnkeybasis,inadditiontoconductingdustemis-sionmeasurementsandenvironmentalassessmentstudies

toensurecompliancewithallowablepollutionlimits• Supported with profound expertise in environmental

controlwithin the cement industry,ASENPROpos-sesseshighpotentialtodiversifyintootherindustries

ARESCO• ARESCO’s revenues in 2015 came in at EGP 456.2

million,up132%comparedyear-on-year• Top-line improvement was reflected at the EBITDA

level,whichstoodatEGP33.3millionin2015,arever-salof2014’snegativefigureofEGP35.1million

• ARESCO’s solid financial performance is supportedbythecompany’shealthybacklogofcontractstotalingEGP473.1million,up15%over2014

ASEC Automation• ASECAutomationisanelectricalandautomationcon-

tractingcompanywithextensiveoperations inAfrica,theMiddleEast,andEurope

• The company provides automation and electrifica-tionsolutionsrangingfromdesignandengineeringtoequipmentprocurementanderection

• Formorethan15years,thecompanyhasbeenthesup-plierofchoiceforinternationalcementproducersinclud-ingLafarge,Italcementi,Titan,Cemex,andCimpor

• ASEC Automation has also diversified into variousindustries such as water treatment, oil and gas, andpowerstations

The cement sector includes three divisions: cement manufacturing, management &

services, and construction

ASEC Minya cement plant

QALAA HoLdings AnnuAL report 2015 6766 QALAA HoLdings AnnuAL report 2015 Our Investments - ASEC Holding

overview of AsCoM ASCOM isQalaaHoldings’ operational platform in theminingsectorspecializinginminingservices,themanage-mentofquarryservicesforthecementindustryaswellasexplorationandproductionofindustrialmineralsandpre-ciousmetalsincludinggold.

ASCOMwasoriginallythegeologicalandminingarmofASEC Holding, a company that was acquired by Qalaaand its coinvestors in 2004. Soon after the acquisition,Qalaa spunoffASCOMas a separate company, allowingASCOM’sscopeandvision toexpandsignificantly.Aftertheacquisition,ASCOMgrewtoincludeninesubsidiariesinsevendifferentmarketsintheAfricaMiddleEastregion.Today,thecompanycontinuestodiversifyitsrevenuestreamasnewoperationscomeonline.Withinthebuildingmaterialssec-tor,ASCOMhasgonefrombeingaserviceprovidertoholdingconcessionsforgypsum,miningaggregates,silicasand,gravel,andotherbasicrawmaterials.Theaimhasbeentoexpandbe-yondthedomainofthecementindustry.Today,thecompanyoperatesanumberofsmallquarriesinEgyptandhasafullyspe-cializedcompanyoperatingintheaggregatemarketinAlgeria.

AsCoM

247.5 k tonsAccM volumes sold

30.3 mn tonsegypt quarrying business volumes sold

Mining

precious Metals ASCOMPreciousMetalsMining(APM)wasestablishedasalogicalprogressiontoconsolidateallexplorationoperationsofpreciousmetalminingunderoneentity.Thecompanyhastwoconcessions in Ethiopia (Asosa andAweroGodere) and oneconcessioninSudan,actingasacontinuationoftheAsosacon-cession.WithintheAsosaconcession,thecompanyidentifiedasignificantgolddiscoveryof1.7millionounces.ASCOMisembarkingonfurtherexplorationdrillingworkonsiteaswellasonacompletebankablefeasibilitystudywhichshouldprecedeafullmininglicenseandultimatelyagoldproductionfacility.

industrial Minerals Manufacturing ASCOMCarbonateandChemicalManufacturing(ACCM)is ASCOM’s first manufacturing plant specializing in theproductionofcalciumcarbonate,amaterialwithvastapplica-tionsinthefieldsofplastics,paper,paint,andchemicals.Totalmilledproductcapacityreached220,000metrictonsperan-numafteraUS$7.3millioninvestmentinadditionalmillsin

2013and2014.ACCMexportsitsproductstoAsia,theGulf,Africa,andSouthAmerica.

GlassRockInsulationCompanybeganproductionof rock-woolat itsUS$70milliongreenfield facility inMay2012targetingbothdomesticsalesandexportstokeymarketsinEurope,NorthAfrica,theGulfCooperationCouncil(GCC)countries,andTurkey.Itsubsequentlybeganproductionofglasswool the following November, with total productioncapacitysplitat30,000metrictonsofrockwooland20,000metrictonsofglasswoolperannum.

Quarry Management ASCOMhasgrowntobecomethelargestspecializedcom-pany in thequarrymanagement sector in theMiddleEastandNorthAfrica.Overthepastdecade,thecompanyhasde-velopeduniqueexpertiseinthefield,particularlywithinthecementindustry,andmanagesthebulkofthelargecementquarriesinEgypt,miningover40milliontonsperannum.


Consolidated ASCOM Revenuesegp 702.3 mn (fy15)

632.2 702.3

fy14 fy15

Consolidated ASCOM EBITDAegp 56.6 mn (fy15)

46.2 56.6

fy14 fy15

Limestone quarry

• total AscoM revenues in 2015 came in at egp 702.3 million, an 11% increase over 2014, filtering into a re-curring eBitdA of egp 51.6 million compared to egp 46.3 million in recurring eBitdA in 2014 – an impressive 23% year-on-year improvement.

• AccM revenues declined by 5% y-o-y in 2015 as export volumes decreased a result of devaluation in the south African rand and a usd shortage in ghana and nigeria.

• AccM operations in india are starting to gain momen-tum following a slow start.

• egypt quarry management revenues increased 16% y-o-y due to price increases and the launch of a new project in ethiopia.

QH Ownership:

54.7%

Footprint:

egypt, Algeria, sudan, ethiopia, saudi Arabia, uAe, oman, senegal

Key Management:

fayez gressCEO & Executive Chair

sameh naguibCFO

QALAA HoLdings AnnuAL report 2015 6968 QALAA HoLdings AnnuAL report 2015 Our Investments - ASCOM

overview of AgrifoodsQalaaHoldings’subsidiariesintheAgrifoodssectorin-cludeGozour(multicategoryagricultureandconsumerfoods) andWafra (agriculture inSudanandSouthSu-dan).Qalaabegan investing in theheavily fragmentedagrifoodssectorin2007inordertointroducenewlevelsof specializationandconsolidation into themarket.Atthe time, Qalaa’s two major investments in agrifoodswere Dina Farms, the largest private sector farm inEgypt, and confectioner Rashidi El-Mizan, a marketleaderinhalawaandtahina.

Since that time, Qalaa Holdings has developed DinaFarms into thecountry’s leadingproducerof rawmilk,withmilkproductionreaching74,724tonsin2015andmorethan17,217headofcattle,ofwhich7,500aremilk-ingcows.QalaahasalsoestablishedtheInvestmentCo.for Dairy Products (ICDP), the company that marketsDinaFarms’freshdairyproducts.ICDPbecamethemar-ketleaderinitscategoryinlessthanayearafterits2010launch.DinaFarms’retailbusiness,whichQalaahelpedbuildfromscratch,hasalsoexpandedrapidly,closingtheyearwith 24DinaFarms-branded supermarketswith aturnoverofEGP263.7millioninFY15.

Gozour

Qalaa Holdings has developed Dina Farms into the country’s leading producer of raw milk, with milk

production reaching 74,724 tons in 2015 and more than 17,217 head of

cattle, of which 7,500 are milking cows

Key Management:

dr. Mohamed waeerManaging Director, Dina Farms

Dairy

tamer HassanManaging Director, Dina Farms

Agriculture

george fouadGeneral Manager, ACST

Aman Allah saadManaging Director, ICDP

QH Ownership:

54.95%

Footprint:

egypt

In thewakeofmanagement’s decision to treat the agri-foodssectorasnon-core,QalaahasconcludedseveralexitsfromplatformcompaniesoperatingunderGozourduringthefourthquarterof2015.InDecember2015,Gozour’sbusinessunit inSudan,Rashidi for IntegratedSolutions,concludedthesaleofitstwohalawaandbiscuitplantsinSudantoaSudaneseinvestoratanenterprisevalueofUS$4.25million.Additionally,Gozour concluded itsdivest-

mentof its full100%holdinginMisrOctober forFoodIndustries (El-Misrieen), an Egyptian manufacturer ofcheeseproducts,atanenterprisevalueofEGP50million.Gozourhas also reachedfinancial close inDecemberonthesaleofa100%stakeinconfectionerRashidiEl-Mizan(REM)toSaudiArabia’sOlayanFinancingCompanyandits subsidiaries, for a totalconsideration (equityvalue)ofEGP518million.


107%y-o-y increase in dina farms retail revenues

24dina farms supermarkets

69,657 tons raw milk sold in fy15 (up 9% y-o-y)

17,217cows (up 6% y-o-y)

* To facilitate the comparison of year-on-year financial results, income statement figures from revenues through EBITDA have been adjusted for Qalaa Hold-ings’ divestment of confectioner Rashidi El-Mizan to include their results up until November 2015.

Agrifoods

Dina Farms supermarket

• gozour* reported revenues of egp 1,251.1 million in fy15, up 24% y-o-y compared to fy14 figure of egp 1,008.1 million; revenue growth came despite fy15 figures reflecting contributions from reM up until no-vember 2015.

• dina farms reported a 5% y-o-y increase in revenues in fy15 to egp 383.6 million, with eBitdA also inching up 3% y-o-y to egp 112.7 million.

• icdp posted a 23% y-o-y growth in revenues to egp 135.8 million in fy15.

• Acst (dina farms retail) saw revenues increase 107% y-o-y in fy15 to egp 263.7 million, buoyed by a 53% y-o-y growth in the number of retail stores currently standing at 24 supermarkets.

QALAA HoLdings AnnuAL report 2015 7170 QALAA HoLdings AnnuAL report 2015 Our Investments - Agrifoods

overview of tanmeyah TanmeyahMicroEnterpriseServiceswasestablished inMarch2009 to extendmicrofinance loans in the rangeof EGP 1,000 to EGP 30,000 to micro-businesses inEgypt, and offers financial solutions to those segmentsofthepopulationwhopreviouslyhadnoaccesstotheseservices.

Withexcellentgrowthpotentialwithinthecurrentbusi-nessenvironmentinEgypt,Tanmeyahhasbeenplayinganimportantroleinthedevelopmentofthecountrybyproviding growth, working capital, and other financialsolutions tocompaniesand individuals thathavenoac-cesstothefinancialsystem.

TanmeyahhasgrowntobecomealeadingEgyptianpro-vider of financial services to Egypt’s large underservedmicro- and very-small-enterprise tiers. Since its incep-tionin2009,TanmeyahhasissuedmorethanEGP2bil-lioninshort-termloansthatdonotexceed12monthsindurationandhasservedmorethan365,000clients.ThecompanyhadEGP493.9millioninloansoutstandingto110,339activeborrowersattheendof2015.

Withmore than 1,500 employees, Tanmeyah is grow-ing in potential, profitability, and outreach, and plansto add additional branches nationwide— on top of its

tanmeyah

Tanmeyah Net Incomeegp 41.7 mn (fy15)

32.6 41.7

fy14 fy15

current114branches—toserveawidersegmentofthepopulation.Thecompanycontinuestoleverageitsexist-ing infrastructureandsystemstoofferawidevarietyoffinancialservicestoitsclients.

InMarch2016,QalaaHoldings’businessunit,FinanceUnlimited,finalizedthesaleofitsentire70%holdinginTanmeyahinatransactionthatvalued100%ofTan-meyahatEGP450million.

egp 868.2 mntotal loans issued in 2015

110,339number of active borrowers

44 %y-o-y increase in revenues in 2015

egp 493.9 mnamount of loans outstanding


We took an interest in Tanmeyah early on, backed its management team, and

played an active role in helping the team build the company into the private-

sector leader in its industry

Providing financial services to a Tanmeya client

• tanmeyah reported a solid 44% y-o-y increase in rev-enues to egp 132.5 million in fy15; top-line improve-ment comes on the back of growth in the lender’s loan portfolio and ticket size.

• revenue growth filtered down the company’s income statement with net operating income posting a 62% y-o-y rise to egp 53.2 million in fy15.

• tanmeyah’s net income came in 28% higher y-o-y in fy15, standing at egp 41.7 million compared to the fy14 figure of egp 32.6 million.

• total loans extended by tanmeyah increased 39% y-o-y in fy15 to reach egp 868.2 million compared to fy14’s egp 623.3 million; the increase in loan book was sup-ported by the company’s expanded branch network, which currently stands at 114 branches nationwide, as well as the increased number of active borrowers to c. 110 thousand individuals from c. 87 thousand in fy14.

• total outstanding loans stood at egp 493.9 million in fy15, up 30% y-o-y, and with a non-performing loan ratio of 4.5%, down from 6.9% at year-end 2014.

QH Ownership:

70%

Footprint:

egypt

Key Management:

Amro AboueshChairman & CEO

Amr Abou el-AzmDeputy Chairman & CEO

QALAA HoLdings AnnuAL report 2015 7372 QALAA HoLdings AnnuAL report 2015 Our Investments - Tanmeyah

non-Core subsidiaries

Bonyan Bonyan forDevelopment andTrade is a specialty real estate developer operating inEgypt.Thecompanybuiltitssolecommercialrealestateproject,Designopolis,whichstandsasthefirstaward-winningdesign and lifestyle center for all design-relatedproducts and services inEgypt and thewiderMENAregion.

Designopolisislocatedonastrategicplotoflandwithagrossareaof116,824squaremetersandafaçadeof800metersdirectlyontheprominentCairo-AlexandriahighwayinwestCairo.Thelandis3kmfromthetollstation.

Theproject is nearworld-class developments such as SmartVillage, SODIC/SolidereWestown,AllegriaCompound,andtheBritishInternationalSchool.

NPC National PetroleumCompany Egypt Ltd(NPC Egypt) andNational PetroleumCompanySAE(NPC

SAE), twowhollyowned subsidiariesof GoldenCrescent Investments Ltd,are upstream oil and gas explorationand production subsidiary companieswithaMENAfootprint.

NPCEgyptholds100%rightstotheproductive Shukheir Offshore Con-cession(whichconsistsoftheGamma

andShukheirBayfieldslocatedintheGulfofSuez)and100%rights to theSouth Abu Zenima (SAZ) Conces-sion,which comprises a developmentlease. In addition, NPC Egypt holds100%rightstotheexplorationconces-sionofNorthEl-Maghara(NEM).

NPCSAE,throughitswhollyownedsubsidiaryPetzedInvestment&ProjectManagement Limited (Petzed), cur-rently holds a 12.75% participatinginterest in theSouthRamadanCon-cessionlocatedinthesouthernpartof

theGulfofSuez.In2006,NPCSAE,throughPetzed,wasawardedrightstothe East Kheir Offshore Concession,whichiscurrentlyunderratificationbyEgypt’sPeople’sAssembly.

Moreover,NPCSAEalsoholdssharesin Nile Valley Petroleum Limited,which owns participating interestsin two exploration blocks in Sudanand one in South Sudan, as well asinNOPC/RallyEnergy,whichhasaheavyoilassetinEgyptandagasfieldinPakistan.

NVPL Nile Valley Pe-troleum Limited(NVPL) isQalaaHoldings’oilandgas exploration

and production subsidiary companyoperatinginSudanandSouthSudan.

In June2008,NVPL started acquir-ing participating interests in threehighlypromisingblocks:Blocks9and11 located in Sudan’s central region,andBlockAlocatedinSouthSudan.

The three blocks currently cover atotalareaof226,768squarekmandcompriseseveralriftbasinsthathave

high potential for oil accumulationwhich are not yet fully explored.In addition, the blocks are ideallylocated close to the existing oil in-frastructure.

The three blocks are operated bySudapakOperatingCompanyLim-ited (Sudapak), which was estab-lished by the contractors’ group ofBlocks9,11,andAtoconductandmanagepetroleumoperationsrelat-ingtothethreeblocksonbehalfoftheshareholders.

NOPC / RallyThe National OilProductionCompany(NOPC) is a Cairo-

basedupstreamoilandgasexplorationand production company. In Septem-ber 2007, NOPC acquired 100% ofCalgary-based Rally Energy for US$868million.RallyEnergyhasa100%operatinginterestintheonshoreIssaranheavyoilfield,asignificantdevelopmentopportunityinEgypt’sGulfofSuez.

Rallyalsoholdsa30%stakeintheSafedKohblockinPakistan’sPun-jabProvince,whereit isparticipat-inginthedevelopmentofanaturalgasdiscovery.

UCF UnitedCompanyforFoundries(UCF)isQalaaHoldings’subsidiarycompanyinthemetallurgyandfoundrysectors.UCFGroupmanufacturesgrindingmediaandalltypesofcastings,inaddi-tiontoautomotiveparts.UCFpredominantlycaterstothecementplantconsumablesbusiness,namelygrindingballsandgrindingmedia.

UCFGrouphasacombinedproductioncapacityof45,000tonsofmoltedmetalperyear.Origi-nallyapartofASECHolding,UnitedFoundrieswasspunoffasitsownentityinlate2008.

Grandview GrandviewInvestmentHoldingsCorp. (Grand-

view) is an investment companyestablishedbyQalaaHoldings’andcoinvestors to invest in mid-capcompanies in theMiddleEast andNorthAfrica region,with a focuson Egypt. It has invested in keyindustries including printing andpackaging,healthcare,textiles,res-taurants, oil and gas services, andbuildingmaterials.Grandviewtar-gets companies with an enterprisevalueof less thanUS$60million.Grandview is managed by SphinxCapital, a private equity manage-

ment company.Grandview has aninitial paid-in capital of US$ 95million and has invested approxi-mately 108% of its committedcapitalinhighlysuccessfultransac-tions inkey industries.Grandviewtargets mid-sized companies thatare primarily focused on servingtheEgyptianmarket.QalaaHold-ings’ internal valuation of Grand-view’s portfolio already shows asubstantial appreciation in valueagainstacquisitioncost.

All of Grandview’s portfolio com-panieshaveshownstrongresilienceduringboththe2009-10economiccrisis and the political upheaval inEgyptsinceearly2011.Withseveral

primaryandsecondaryM&Atrans-actions in the pipeline, Grandviewaims tocreate shareholder liquiditywhile remaining firmly committedtocapitalgrowthwithinthesubsid-iarycompany.

Grandview’s diversifiedportfolio ofinvestmentswillmitigate the nega-tive short-term impact of an eco-nomic slowdown. Portfolio stakeshave been revalued accordingly toreflect bearish market conditions,both on the marketability of theassets held and the performance ofeachcompany.

Tanweer Tanweer is QalaaHoldings’ investmentvehicle in the mediaand retail sector. Ithasthreesubsidiaries,allofwhich are lead-

ingregionalcompanies,namelyDarEl-Shorouk, book retailer DiwanBookstores,andAl-Kateb.

Tanweeraimstobuildamulti-con-tent, vertically integrated, regional

media production and distributiongroup works with books, news-papers, TV programs and docu-mentaries, movie production, anddistribution.

DarEl-Shorouk co-founded a post-production house — Time Code—inpartnershipwithtalentedpost-production producers. Time Codeworks on TV commercials, pro-grams,TVseries,andfeaturefilms.

Diwan has emerged as Egypt’s pre-miere chain of boutique bookstoressince it opened in2002.Today, thecompany has 13 branches, mostlyin Cairo and Alexandria, and hasplans for both national and regionalexpansion as it forges partnershipswithwriters,publishers,andculturalcenters.Diwan also has distributionrights to five international musiclabels and distributesmusic CDs tolocalretailers.

QALAA HoLdings AnnuAL report 2015 7574 QALAA HoLdings AnnuAL report 2015 Non-Core Subsidiaries

Financial statements

For the year ended )All amounts in eGP( 31/12/2015 31/12/2014

(*)Continuing operationoperating income 6 638 944 107 4 670 269 562 operating costs (5 478 999 361) (4 059 284 428) Gross profit 1 159 944 746 610 985 134 Advisory fee 13 550 201 10 537 825 share of profit / loss of investment in associate 126 422 325 177 171 497 total operating profit 1 299 917 272 798 694 456 gains (losses) on sale of investment in associate 99 698 245 ( 25 381 815) Administrative expenses (1 175 176 909) (1 010 881 627) other (expenses) / income ( 888 601 620) ( 92 683 035) net operating loss ) 664 163 012( ) 330 252 021( finance costs - net ( 832 257 198) ( 889 363 182) net loss before tax )1 496 420 210( )1 219 615 203( income tax ( 123 214 939) ( 109 020 317) net loss from continuing operation )1 619 635 149( )1 328 635 520( Discontinued operationsoperating income 1 605 411 362 1 845 011 927 operating costs (1 252 854 488) (1 499 437 090) Administrative expenses ( 197 016 339) ( 233 022 472) other (expenses) / income ( 90 271 409) ( 3 582 918) finance costs - net ( 188 543 333) ( 199 421 359) Results from operating activities ) 123 274 207( ) 90 451 912( income tax ( 33 798 835) ( 8 526 403) Results from operating activities, net of tax ) 157 073 042( ) 98 978 315( gains on sale of discontinued operations 551 081 169 57 641 866 Profit / )loss( from discontinued operations, net of tax 394 008 127 ) 41 336 449( net loss for the year )1 225 627 022( )1 369 971 969(

Attributable to:equity holders of the company (1 155 345 236) ( 879 593 450) non - controlling interests ( 70 281 786) ( 490 378 519)

(1 225 627 022) (1 369 971 969)

earnings per share )0.70( )0.84(* RestatedThe notes to the financial statements are available through our website or the code below and are an integral part of these consolidated financial statements.

summary Consolidated Income statement (in EGP)

Consolidated statement of financial position (in EGP)

)All amounts in eGP( 31/12/2015 31/12/2014(*)

Assetsfixed assets (net) 4 866 770 745 5 836 564 267 projects under construction (net) 17 162 443 847 11 841 308 885 intangible assets (net) 1 862 436 797 1 892 728 739 goodwill (net) 652 512 569 1 438 786 190 Biological assets (net) 196 044 381 189 042 811 trade and other receivables (net) 710 407 485 588 802 009 investment property (net) 24 000 000 373 068 956 investments in associates (net) 899 994 224 1 953 010 353 Available-for- sale investments (net) 54 311 317 51 904 260 payments for investments (net) 80 997 503 101 213 486 Loans to related parties - 134 176 156 other investments 269 800 533 441 352 959 deferred tax assets 345 235 009 332 158 336 total non-current assets 27 124 954 410 25 174 117 407

inventories (net) 1 016 751 852 969 854 289 Biological assets 25 063 763 21 379 458 work in process 17 768 790 47 816 848 investments at fair value through profit or loss 33 789 381 80 849 353 due from related parties (net) 606 398 440 983 982 939 trade and other receivables (net) 1 167 538 152 949 139 548 debtors and other debit balances (net) 1 357 698 069 1 029 169 941 cash and cash equivalents 3 353 000 479 2 182 089 378 Assets classified as held-for-sale 2 473 539 263 1 402 289 227 total current assets 10 051 548 189 7 666 570 981 total assets 37 176 502 599 32 840 688 388

equityshare capital 9 100 000 000 8 000 000 000 reserves 123 808 425 202 382 594 retained loss (5 271 987 040) (4 336 949 028) net loss for the year (1 155 345 236) ( 879 593 450) total equity 2 796 476 149 2 985 840 116 shareholders’ credit balances 1 464 311 836 842 865 total equity attributable to equity holders of the Company 2 797 940 460 3 822 682 981 non - controlling interests 8 152 325 712 8 183 513 791 total equity 10 950 266 172 12 006 196 772

LiabilitiesLong term loans 13 671 782 372 10 726 526 464 Long term liabilities and derivatives 436 369 089 402 110 017 Loans from related parties 24 484 249 792 754 848 deferred tax liabilities 621 800 554 744 276 298 total non-current liabilities 14 754 436 264 12 665 667 627

Banks overdraft 508 626 802 688 968 212 short term loans 2 933 157 562 2 158 940 557 Loans from related parties 646 819 327 -due to related parties 730 606 339 477 202 021 trade and other payables 2 855 366 230 1 830 582 902 creditors and other credit balances 1 469 403 194 1 079 718 029 provisions 620 451 082 489 587 562 financial guarantees contracts 5 077 970 23 401 707 Liabilities classified as held-for-sale 1 013 436 568 938 117 930 due to tax Authority 688 855 089 482 305 069 total current liabilities 11 471 800 163 8 168 823 989 total liabilities 26 226 236 427 20 834 491 616 total equity and liabilities 37 176 502 599 32 840 688 388 * Restated The notes to the financial statements are available through our website or the code below and are an integral part of these consolidated financial statements.

Chairman Managing Director Chief Financial Officer

Ahmed Heikal Hisham Hussein El-Khazindar Moataz Farouk

scan the Qr code to download our audited consolidated financials in pdf from our investor relations microsite ir.qalaaholdings.com

QALAA HoLdings AnnuAL report 2015 7776 QALAA HoLdings AnnuAL report 2015 Financial Statements

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East Africa ContactKarim Sadek

Managing Director

Algeria ContactNazim Meziane

Associate

Regional Investor ContactMohammed Abdellah

Managing Director

International Institutional Investor ContactStephen Murphy

Special Advisor

Shareholder ContactAmr M. El-Kadi

Head of Investor Relations

Marketing Communications ContactGhada Hammouda

CMO & Head of Marketing Communications

Government Relations ContactHazem Dakroury

Head of Government Relations

Human Resources ContactIhab Rizk

Head of Human Resources

Legal Affairs ContactYasmin Al-Gharbawie

General Counsel

Tarek HassanHead of Legal Department

Qalaa Holdings (S.A.E.)1089 Corniche El-NilFour Seasons Nile Plaza Office Building Garden City • Cairo • Egypt • 11519

Tel: +20 (2) 2791-4440Fax: +20 (2) 2791-4448

Qalaa Holdings AlgérieCité Urba 2000 Bâtiment 09 Rez-de-Chaussée Appt 01El-Biar, Algiers 1600Algeria

Tel: +213 (23) 27 10 21Fax: +213 (21) 92 96 74

Qalaa Holdings East AfricaRailway Complex, Station RoadOff Haile Selassie Avenue(P.O. Box 62502 00200)Nairobi, Kenya

Tel: +254 (0) 20 20 444 76-9

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