REG - Orascom Investment - Orascom Investment Holding IFRS 2021
30/10/2024 08:45
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RNS Number : 2041K Orascom Investment Holding S.A.E 30 October 2024
http://www.rns-pdf.londonstockexchange.com/rns/2041K_1-2024-10-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2041K_1-2024-10-30.pdf)
Orascom Investment Holding
S.A.E.
Consolidated Financial Statements
As of and for the year ended
December 31, 2021 (IFRS)
Together with the auditor's report
US$
ORASCOM INVESTMENT HOLDING S.A.E.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF
(In thousands of US$) Note December31,2021 December31,2020
Assets
Property and equipment 14 13,769 66,698
Intangible assets 15 - 2,383
Investment property 16 13,165 45,821
Equity accounted investees 12 39,185 39,110
Financial assets at fair value 17-2 - -
Other financial assets 17-1 3,391 5,690
Other assets 20 255 15,811
Total non-current assets 69,765 175,513
Inventories - 775
Trade receivables 19 8,041 20,422
Other financial assets 17 - 4,741
Other assets 20 1,821 9,175
Cash and cash equivalents 21 69,222 21,865
79,084 56,978
Assets held for sale 27 101,284 -
Total current assets 180,368 56,978
Total assets 250,133 232,491
Equity and liabilities
Share capital 22 95,890 95,890
Reserves (11,247) (22,288)
Retained earnings 30,615 16,006
Equity attributable to equity holders of the Company 115,258 89,608
Non-controlling interests 20,214 18,060
Total equity 135,472 107,668
Liabilities
Borrowings 23 10,173 27,806
Other liabilities 24 179 7,783
Deferred tax liabilities 18 4,812 10,474
Total non-current liabilities 15,164 46,063
Borrowings 23 17 11,716
Trade payables and other liabilities 24 23,679 53,157
Income tax liabilities 3,174 3,464
Provisions 25 11,769 10,423
38,639 78,760
Liabilities associated to assets held for sale 27 60,858 -
Total current liabilities 99,497 78,760
Total liabilities 114,661 124,823
Total equity and liabilities 250,133 232,491
Chief financial officer
Chief executive officer
ORASCOM INVESTMENT HOLDING S.A.E.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED
In thousands of US$, except per share amounts Note December31,2021 December31,2020
Represented**
Continuing operations
Revenues 6 1,784 4,887
Purchases and services 7 (4,931) (3,385)
Other expenses 8 (733) (1,606)
Reversal of) provisions) /(formed) 25 (1,385) 12,005
Personnel cost 9 (4,239) (11,242)
Depreciation and amortization 10 (337) (423)
Impairment loss of other financial assets (6,841) (3,829)
gain from acquisition investment property 12,825 -
Gains from disposal of non-current assets - 222
Operating (loss) (3,857) (3,371)
Finance income 11 186 4,155
Finance expense 11 (834) (317)
Net foreign currencies translation differences 11 3,182 (257)
Share of profit from equity accounted investee 12 27,190 171,106
Impairment of share of profit from equity accounted investee 12 (27,190) (171,106)
Profit before income tax (1,323) 210
Income tax expense 13 (3,220) (512)
(loss) for the year from continued operations (4,543) (302)
Discontinued operations
Profit from discontinuing operation (net of income tax) 27 23,740 1,022
Profit for the year 19,197 720
Other comprehensive : (loss) / income
Items that may be sequent reclassified to profit or loss net of tax
Revaluation of investments at fair value through OCI - (2,339)
Foreign operations- Foreign currencies translation differences 8,607 (10,303)
Total other comprehensive (loss) / income for the year 8,607 (12,642)
Total comprehensive Income (loss) for the year 27,804 (11,922)
Profit / (loss) for : the year attributable to
Owners of the Company from continuing operations (3,729) 481
Owners of the Company from discontinuing operations 18,708 (496)
Non-controlling interests 4,218 735
19,197 720
Total comprehensive (loss) for the year attributable to
Owners of the Company 25,649 (12,123)
Non-controlling interests 2,155 201
27,804 (11,922)
Earnings / (losses) per share from continuing operation - basic & diluted 26 (0.0007) 0.00009
(in US$)
(Losses) / earnings per share from discontinued operations- basic & 26 0.0036 (0.00009)
diluted (in US$)
* The accompanying notes from page (5) to page (58) are an integral part of
these consolidated financial statements.
** We are represented the combative 2020 as we have discontinued operation.
For more details, see note (32)
ORASCOM INVESTMENT HOLDING S.A.E.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31,
2021
Other reserves
(In thousands of US$) Note Share capital Legal Translation reserves Other reserves Total Retained earnings Equity attributable Non-controlling interests Total equity
reserve reserves to owners of the parent company
As of January 1, 2020 22 366,148 86,253 (238,675) 10,191 (142,231) 36,773 260,690 16,861 277,551
Restatement* - - - 4,608 4,608 (936) 3,672 - 3,672
As of January 1, 2020, restated 366,148 86,253 (238,675) 14,799 (137,623) 35,837 264,362 16,861 281,223
Comprehensive (loss) / income for the year
Revaluation of investments at fair value through OCI - - - (2,344) (2,344) - (2,344) 5 (2,339)
Foreign operations- Foreign currencies translation differences - - (9,764) - (9,764) - (9,764) (539) (10,303)
(Loss) / profit for the year - - - - - (15) (15) 735 720
Total comprehensive (loss) / income for the year - - (9,764) (2,344) (12,108) (15) (12,123) 201 (11,922)
Transactions with owners of the company
Dividends to NCI - - - - - - - (877) (877)
Change in ownership percentage without a change in control - - (497) - (497) (1,173) (1,670) 9,693 8,023
Effect of the demerger ** (270,258) (61,378) 201,773 (12,455) 127,940 (18,643) (160,961) (7,818) (168,779)
Total transactions with owners of the Company (270,258) (61,378) 201,276 (12,455) 127,443 (19,816) (162,631) 998 (161,633)
As of December 31, 2020 95,890 24,875 (47,163) - (22,288) 16,006 89,608 18,060 107,668
Other reserves
(In thousands of US$) Share capital Legal reserve Translation reserve Total reserves Retained earnings Equity attributable to owners of the parent company Non-controlling interests Total equity
Note
As of January 1, 2021 22 95,890 24,875 (47,163) (22,288) 16,006 89,608 18,060 107,668
Foreign operations- Foreign currencies translation differences - - 10,671 10,671 - 10,671 (2,064) 8,607
(Loss) for the year - - - - 14,979 14,979 4,218 19,197
Total comprehensive (loss) for the year - - 10,671 10,671 14,979 25,650 2,154 27,804
Transactions with owners of the Company - - - - - - - -
Transferred to legal reserve - 370 - 370 (370) - - -
Total transactions with owners of the Company - 370 - 370 (370) - - -
As of December 31, 2021 95,890 25,245 (36,492) (11,247) 30,615 115,258 20,214 135,472
The accompanying notes from page (5) to page (58 )are an integral part of
these consolidated financial statements
*Restatement represents the effect of applying IFRS 9 by an associate (Contact
Financial Holding) starting from January 1, 2020, which was not recorded by
the Group in the prior years
**Effect of the demerger represents the adjustments on the equity as a result
of the demerger of the Company into two companies (for more details see
note33)
Other reserves
(In thousands of US$) Note Share capital Legal Translation reserves Other reserves Total Retained earnings Equity attributable Non-controlling interests Total equity
reserve reserves to owners of the parent company
As of January 1, 2020 22 366,148 86,253 (238,675) 10,191 (142,231) 36,773 260,690 16,861 277,551
Restatement* - - - 4,608 4,608 (936) 3,672 - 3,672
As of January 1, 2020, restated 366,148 86,253 (238,675) 14,799 (137,623) 35,837 264,362 16,861 281,223
Comprehensive (loss) / income for the year
Revaluation of investments at fair value through OCI - - - (2,344) (2,344) - (2,344) 5 (2,339)
Foreign operations- Foreign currencies translation differences - - (9,764) - (9,764) - (9,764) (539) (10,303)
(Loss) / profit for the year - - - - - (15) (15) 735 720
Total comprehensive (loss) / income for the year - - (9,764) (2,344) (12,108) (15) (12,123) 201 (11,922)
Transactions with owners of the company
Dividends to NCI - - - - - - - (877) (877)
Change in ownership percentage without a change in control - - (497) - (497) (1,173) (1,670) 9,693 8,023
Effect of the demerger ** (270,258) (61,378) 201,773 (12,455) 127,940 (18,643) (160,961) (7,818) (168,779)
Total transactions with owners of the Company (270,258) (61,378) 201,276 (12,455) 127,443 (19,816) (162,631) 998 (161,633)
As of December 31, 2020 95,890 24,875 (47,163) - (22,288) 16,006 89,608 18,060 107,668
Other reserves
(In thousands of US$) Share capital Legal reserve Translation reserve Total reserves Retained earnings Equity attributable to owners of the parent company Non-controlling interests Total equity
Note
As of January 1, 2021 22 95,890 24,875 (47,163) (22,288) 16,006 89,608 18,060 107,668
Foreign operations- Foreign currencies translation differences - - 10,671 10,671 - 10,671 (2,064) 8,607
(Loss) for the year - - - - 14,979 14,979 4,218 19,197
Total comprehensive (loss) for the year - - 10,671 10,671 14,979 25,650 2,154 27,804
Transactions with owners of the Company - - - - - - - -
Transferred to legal reserve - 370 - 370 (370) - - -
Total transactions with owners of the Company - 370 - 370 (370) - - -
As of December 31, 2021 95,890 25,245 (36,492) (11,247) 30,615 115,258 20,214 135,472
The accompanying notes from page (5) to page (58 )are an integral part of
these consolidated financial statements
*Restatement represents the effect of applying IFRS 9 by an associate (Contact
Financial Holding) starting from January 1, 2020, which was not recorded by
the Group in the prior years
**Effect of the demerger represents the adjustments on the equity as a result
of the demerger of the Company into two companies (for more details see
note33)
ORASCOM INVESTMENT HOLDING S.A.E
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED
In thousands of US$)) Note December31,2021 December31,2020
Restated
(Loss)/gain for the year before tax (1,323) 210
Adjustments for :
Depreciation and amortization 10 337 423
Finance income 11 (186) (4,155)
Finance expense 11 834 317
Net foreign currencies translation differences 11 (3,182) 257
Gains from disposal of non-current assets - (222)
Impairment loss of other financial assets 6,841 3,829
impairment of cash and equivalents Cash (1,827) -
gain from acquisition investment property 16 (12,788) -
Changes in provision 25 1,324 (16,382)
Changes in other assets 6,426 (3,510)
Changes in other liabilities (16,447) (3,223)
Cash flows (used in) operating activities (19,991) (22,456)
Income taxes paid (850) (784)
Interest received 182 254
Net cash flows (used in ) operating activities (20,659) (22,986)
Cash flows from investing activities
Property and equipment acquisition of property and equipment (6,929) (3,805)
Investments property (406) -
Proceeds from disposal of
Property and equipment - 32
Other financial assets - 221
Effect of the demerger on the balances of cash and cash equivalent - (21,343)
Proceeds from sale of- Riza Capital a subsidiary 20 1,900
Cash flows (used in) investing activities (7,315) (22,995)
Cash flows from financing activities
Interest paid 23 (834) (302)
Proceeds from non-current borrowings 23 6,957 7,583
Net (payments) for financial liabilities (5,226) (22,033)
Net cash received from other financial assets - 133
Payments under investment in subsidiaries - (254)
Cash flows generated/(used in) financing activities 897 (14,873)
Net change in cash and cash equivalents from continuing operations (27,077) (60,854)
Discontinuing operations
Net cash generated by operating activities 27 16,503 1,793
Net cash generated by (used in) investing activities 27 74,178 (667)
Net cash (used in) generated by financing activities 27 (13,270) 18,399
Net cash generated by discontinued operations 77,411 19,525
Net change in cash and cash equivalents 50,334 (41,329)
Cash and cash equivalents at the beginning of the year 21,865 63,438
Effect of exchange rates on cash and cash equivalents continued (130) (244)
Effect of exchange rates on cash and cash equivalents discontinued (133) -
Cash included in assets held for sale (2,714) -
Cash and cash equivalents at the end of the year 69,222 21,865
* The accompanying notes from page (5) to page (58) are an integral part of
these consolidated financial statements.
1. General information
Orascom Investment Holding S.A.E. ("OIH" or the "Company") is an Egyptian
Joint Stock Company pursuant to the provisions of the Capital Market Law No.
95 of 1992, and its executive regulations. The Company was registered at
Commercial Register under No 394061. The Company's Head Office located at Nile
City Towers, Armlet Boulak-Cairo-Egypt. The Company was established on
November 29, 2011 (the "inception") and until this date the businesses of the
Company were performed under various entities which were controlled by Orascom
Telecom Holding, S.A.E. ("OTH"). As part of a larger transaction pursuant to
which VimpelCom Ltd had acquired OTH dated April 14, 2011, its shareholders
agreed to affect the demerger, whereby, OTH was split into two companies, OTH
and the Company ("Demerger"). The Demerger resulted in the transfer of certain
telecom, cable and media and technology assets (the "OIH Assets") to the
Company.
The Company through its subsidiaries (the "Group") is a mobile
telecommunications business operating in high growth emerging markets in the
Middle East, Africa and Asia. The Company is a subsidiary of Orascom Telecom
Media and Technology Investments S.à.r.l. (the "Ultimate Parent Company").
The Company's shares are listed on the Egyptian Stock Exchange under ISIN
number EGS693V1C014 and has Global Depositary Receipts (GDRs) which are listed
on the London Stock Exchange under ISIN number US68555D2062, and Egyptian
stock exchange under number 2349649.
The information presented in this document has been presented in thousands of
United States Dollar ("US$"), except earnings per share and unless otherwise
stated.
1-1 COVID-19 update
The global spread of COVID-19 ("COVID-19"), a virus which was declared a
global pandemic by the World Health Organization in March 2020, has led
governments around the world to mandate certain restrictive measures to
contain the pandemic, including social distancing, quarantine, "shelter in
place" or similar orders, travel restrictions and suspension of non-essential
business activities. The continued restrictive orders issued by national and
foreign authorities, coupled with the worsening of the global macroeconomic
scenario and the risk of deterioration of the credit profile of certain
customer segments, could lead to slowdowns in business activities. The
Company's management has formed a working group to develop and implement
contingency plans to meet these exceptional circumstances and is currently
closely monitoring and evaluating all the developments related to the spread
of the emerging virus.
Management of this emergency requires, also in consideration of the public
service provided, the implementation of all activities relating to the
operational continuity of business processes with the aim of ensuring the
operation of the services provided and the protection of employees' health.
At the date of issue of these Consolidated Financial Statements, revenues were
not impacted from the pandemic as the major business is represented by
internet submarine cables of TWA, anti-cyclical for nature. Less significant
impacts from higher costs related to employee safety, health and
transportation have been offset by cost savings from lower commercial
activity, suspension of travel and other cuts in non-core operating expenses.
Therefore, at December 31, 2020, no indicators of impairment of financial and
non-financial assets were found in connection of COVID-19.
In any case, management reviewed its business and operations to take into
consideration the potential impacts and effects of the COVID-19, including the
estimated impact on the macroeconomic environment, the market outlook and
Company's operations. Management continues to monitor the evolution of
COVID-19 and the impacts on the business as information becomes available, as
well as the related effects on the results of operations, financial position
and cash flows.
1.2 Demerger of the Company
On October 19, 2020, the Extraordinary General Assembly meeting of the Company
approved the demerger of the Company according to the horizontal demerger
method with the book value of the share and taking the financial position for
the year ended on December 31, 2020 as the basis for the date of the
demerger, accordingly, OIH became a demerging company and its issued capital
was reduced by reducing the nominal value of its shares, while the demerger
resulted in the establishment of a new company in the name of Orascom
Financial Holding S.A.E. (the demerged company) . Accordingly, OIH will
maintain all its assets and obligations, except for the investment in Beltone
Financial Holding (a subsidiary company before the demerger) and the
investment in Contact Financial Holding (formerly Sarwa Capital Holding for
Financial Investments) (an associate company before the demerger) which were
transferred to Orascom Financial Holding.
OIH maintained its license as a company whose purpose is "to participate in
the establishment of all joint stock companies or to recommend shares that
issue securities or to increase their capital", while the demerger resulted in
the establishment of a new company in the name of Orascom Financial Holding
S.A.E. (the demerged company) in the form of an Egyptian joint stock company
subject to the provisions of the Capital Market Law No. 95 of 1992 and its
executive regulations.
2. Significant accounting policies
2.1 Basis of accounting
These consolidated financial statements have been prepared in accordance with
IFRS as issued by IASB. They were authorized for issue by the Company's board
of directors on Oct 29, 2024.
The Consolidated Financial Statements have been prepared on a going concern
basis, as Management have verified the absence of financial, management or
other indicators that could indicate critical issues regarding the Group's
ability to meet its obligations in the foreseeable future, and in particular
during12 months following the date of authorization. The description of the
methods through which the Group manages financial risks is contained in the
following note 4 relating to "Financial risk management".
For presentational purposes, the current/non-current distinction has been used
for the statement of financial position. The statement of comprehensive income
is presented using the one-statement approach. Expenses are analyzed in the
statement of profit or loss using a classification based on their nature. The
indirect method has been selected to present the cash flows statement.
2.2 Application of new and revised International Financial Reporting Standards ("IFRSs")
2.2.1 New currently effective requirements
Effective date New standards or amendments
January 1, 2021 Amendments to IFRS 4 - Insurance Contracts
January 1, 2021 Amendments to IFRS 9 - Financial Instruments, IAS 39 - Financial Instruments:
Recognition and Measurement, IFRS 7 - Financial Instruments: Disclosures, IFRS
4 - Insurance Contracts and IFRS 16 - Leases
1. Covid-19 - Related Rent Concessions (amendment to IFRS 16)
On 28 May 2020, the IASB issued Covid-19 - Related Rent Concessions -
amendment to IFRS 16 Leases. The amendments provide relief to lessees from
applying IFRS 16 guidance on lease modification accounting for rent
concessions arising as a direct consequence of the Covid-19 pandemic. As a
practical expedient, a lessee may elect not to assess whether a Covid-19
related rent concession from a lessor is a lease modification. A lessee that
makes this election accounts for any change in lease payments resulting from
the Covid-19 related rent concession the same way it would account for the
change under IFRS 16 if the change were not a lease modification. The
amendment was intended to apply until 30 June 2021, but as the impact of the
Covid-19 pandemic is continuing, on 31 March 2021, the IASB extended the
period of application of the practical expedient to 30 June 2022.
2. Interest Rate Benchmark Reform - amendments to IFRS 9, IAS 39 and IFRS 7
The amendments provide temporary reliefs which address the financial reporting
effects when an interbank offered rate (IBOR) is replaced with an alternative
nearly risk-free interest rate (RFR). The amendments include the following
practical expedients:
- - A practical expedient to require contractual changes, or changes to cash
flows that are directly required by the
reform, to be treated as changes to a floating interest rate, equivalent to a
movement in a market rate of interest
- Permit changes required by IBOR reform to be made to hedge designations and
hedge documentation without
the hedging relationship being discontinued
- -Provide temporary relief to entities from having to meet the separately
identifiable requirement when an RFR instrument is designated as a hedge of a
risk component.
3. Extension of the temporary exemption from the application of IFRS 9
(Amendments to IFRS 4)
With Regulation (EU) No. 2020/2097 of 15 December 2020, published in the
Official Gazette of the European Union on16 December 2020, the IASB document
"Extension of Temporary Exemption from the Application of IFRS 9(Amendments to
IFRS 4 Insurance Contracts)" was adopted ("endorsed").
Entities with a predominantly insurance business have the option to continue
to apply the provisions of IAS 39 Financial Instruments: recognition and
measurement for the classification and measurement of financial instruments
until the entry into force of IFRS 17 Insurance Contracts, which will replace
the current IFRS 41.
The temporary exemption from the application of IFRS 9 Financial Instruments
is provided for in order to avoid the volatility of the profit/(loss) for the
financial year caused by the asymmetry between the measurement criteria
provided for by IFRS 9 for financial assets and the valuation criteria of IFRS
4 for liabilities linked to insurance business.
As the IASB Board in June 2020 decided to postpone the effective date of IFRS
17 from 1 January 2021 to 1 January 2023, the deadline for the temporary
exemption to apply IFRS 9 was also accordingly extended by two years.
regulation states that the amendments to IFRS 4 must be applied as from 1
January 2021 for financial years beginning on or after 1 January 2021.
2.2.2 Forthcoming requirements
Effective date New standards or amendments
January 1, 2022 Amendments to IFRS 3 - Business combinations
January 1, 2022 Amendments to IAS 16 - Property, Plant and Equipment
January 1, 2022 Amendments to IAS 37 - Provisions, Contingent Liabilities and Contingent
Assets
January 1, 2022 Annual Improvements to IFRSs 2018 - 2020 Cycle
January 1, 2023 IFRS 17 - Insurance Contracts
January 1, 2023 Amendments to IAS 1 - Presentation of Financial Statements: Classification of
Liabilities as Current or Non-Current
January 1, 2023 Amendments to IAS 1 - Presentation of Financial Statements and IFRS Practice
Statement 2: Disclosure of Accounting policies
January 1, 2023 Amendments to IAS 8 - Accounting Policies, Changes in Accounting Estimates and
Errors: Definition of Accounting Estimates
The above amendments / standards are not likely to influence Group's
consolidated financial
2.3 Summary of main accounting principles and policies
The main accounting principles and policies adopted in preparing these
consolidated financial statements are set out below. These policies have been
applied consistently by the Group entities.
Basis of consolidation
Subsidiaries are all entities (including structured entities) over which the
Group has control. The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with the entity and
has the ability to affect those returns through its power over the entity. The
consolidated financial statements include the financial statements of the
Company and the financial statements of those entities over which the Company
has control, both directly or indirectly, from the date on which control is
transferred to the Group until the date such control ceases.
The financial statements used in the consolidation process are those prepared
by the individual Group entities in accordance with IFRS as adopted by IASB
.
The consolidation procedures used are as follows:
The assets and liabilities and income and expenses of subsidiaries are
included on a line-by-line basis, allocating to non-controlling interests,
where applicable, the share of equity and profit or loss for the year that is
attributable to them. The resulting balances are presented separately in
equity and the consolidated income statement; the acquisition method of
accounting is used to account for business combinations. The consideration
transferred for the acquisition of a subsidiary is the fair values of the
assets transferred, the liabilities incurred to the former owners of the
acquiree, and the equity interests issued by the Group. The consideration
transferred includes the fair value of any asset or liability resulting from a
contingent consideration arrangement. Identifiable assets acquired and
liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date. The Group
recognizes any non-controlling interest in the acquiree on an
acquisition-by-acquisition basis, either at fair value or at the
non-controlling interest's proportionate share of the recognized amounts of
acquiree's identifiable net assets.
Any contingent consideration is measured at fair value at the date of
acquisition. If an obligation to pay contingent consideration that meets the
definition of a financial instrument is classified as equity, then it is not
remeasured, and settlement is accounted for within equity. Otherwise, other
contingent consideration is remeasured at fair value at each reporting date
and subsequent changes in the fair value of the contingent consideration are
recognized in consolidated profit or loss.
Goodwill represents the excess of the cost of an acquisition over the interest
acquired in the net fair value at the acquisition date of the assets and
liabilities of the entity or business acquired. Goodwill relating to
investments accounted for using the equity method is included in the carrying
amount of the investment. Goodwill is initially measured as the excess of the
aggregate of the consideration transferred and the fair values of
non-controlling interest over the net identifiable assets acquired and the
liabilities assumed. If the consideration is lower than the fair value of the
net assets of the subsidiary acquired, the difference is recognized in the
consolidated profit or loss.
Acquisition costs on business combinations are expensed as incurred, except if
they relate to issue debt or equity securities.
The purchase of equity holdings from non-controlling holders are accounted for
as equity transactions that is, as transactions with the owners in their
capacity as owners. The difference between fair value of any consideration
received and the relevant share of the carrying value of net assets of the
subsidiary is recorded in equity.
Intra-group balances and transactions, and any unrealized income and expenses
(except for foreign currency transaction gains or losses) arising from
intra-group transactions, are eliminated. Unrealized gains arising from
transactions with equity-accounted investees are eliminated against the
investment to the extent of the Group's interest in the investee. Unrealized
losses are eliminated in the same way as unrealized gains, but only to the
extent that there is no evidence of impairment.
Interests in equity-accounted investees
The Group's interests in equity-accounted investees comprise interests in
associates and a joint venture .
Associates are those entities in which the Group has significant influence,
but not control or joint control, over the financial and operating policies. A
joint venture is an arrangement in which the Group has joint control, whereby
the Group has rights to the net assets of the arrangement, rather than rights
to its assets and obligations for its liabilities .
Interests in associates and the joint venture are accounted for using the
equity method. They are initially recognized at cost, which includes
transaction costs. Subsequent to initial recognition, the consolidated
financial statements include the Group's share of the profit or loss and OCI
of equity accounted investees, until the date on which significant influence
or joint control ceases .
The equity method is as follows:
· The Group's share of the profit or loss of an investee is recognized in the
consolidated profit or loss from the date when significant influence begins up
to the date when that significant influence ceases or when the investment is
classified as held for sale. Investments in associates with negative
shareholders' equity are recorded till the Group's interest is reduced to zero
and a provision for its losses is accrued only if the Group has a legal or
constructive obligation to cover such losses.
The Group determines at each reporting date whether there is any objective
evidence that the investment in the associate is impaired. If this is the
case, the Group calculates the amount of impairment as the difference between
the recoverable amount of the associate and it's carrying value;
If the ownership interest in an associate is reduced, but significant
influence is retained, only a proportionate share of the amounts previously
recognized in the consolidated other comprehensive income is reclassified to
consolidated profit or loss.
Unrealized gains and losses generated from transactions between the Company,
or its subsidiaries and its investees accounted for using the equity method
are eliminated on consolidation for the portion pertaining to the Group;
unrealized losses are eliminated unless they represent impairment.
Management fees received from associates are included within revenue.
Appendix A includes a list of the entities included in the scope of
consolidation.
Non-controlling interests
Non-controlling interests of consolidated subsidiaries are presented
separately from the Group's equity" therein"
Non-controlling interests that represent current equity interests and entitle
their holders to a proportionate share of the net assets of the entity in
liquidation, they may be measured at initial recognition either at fair value
or in the Proportionate share of the non-controlling interests in the
recognized values of the net assets acquired - The Measurement basis for each
acquisition transaction is selected separately.
The non-controlling interest in an acquire is initially measured at the
non-controlling interest proportionate share in the fair value of the assets,
liabilities and contingent consideration recognized on acquisition date.
· Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the
entity operates ('the functional currency'). The functional currency of the
Company is Egyptian pound. The Consolidated Financial Statements are presented
in 'US Dollars' (US$), which is the Group's presentation currency.
Transactions and balances
Transactions in foreign currencies are translated into the functional currency
of the relevant entity at the exchange rate prevailing at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies
are translated, at the reporting date, into the prevailing exchange rates at
that date. Foreign currency exchange differences arising on the settlement of
transactions and the translation of the statement of financial position are
recognized in the income statement. Gains and losses on long-term financing
provided to Group subsidiaries by the parent company, for which settlement is
neither planned nor likely to occur, are initially recognized in. other
comprehensive income and reclassified to the income statement on disposal of
the relevant entity, transaction in foreign currency for non-monetary assets
and liabilities carried at historical cost are initially recorded using
closing rate at the date of the transaction while items carried at fair value
should be reported at the rate that existed when fair values were determined.
If a gain or loss on a non-monetary item is recognized in other comprehensive
income, any foreign exchange component of that gain or loss is also recognized
in other comprehensive income.
Group companies
The financial statements of the Group entities are translated into the
presentation currency as follows:
Assets and liabilities are translated at the closing exchange rate.
Income and expenses are translated at the average exchange rate for the year;
All resulting exchange differences are recognized as a separate component of
equity in the "translation reserve" until the group loses control of the
relevant subsidiary. When the group disposes of a foreign operation the
translation reserve, previously recognized in equity, is transferred to the
income statement.
Goodwill and fair value adjustments arising on the acquisition of a foreign
entity are treated as assets and liabilities of the foreign entity and are
translated at the closing exchange rate; and
In the preparation of the consolidated cash flow statement, the cash flows of
foreign subsidiaries are translated at the average exchange rate for the year,
except for the opening and closing cash balances.
The exchange rates applied in relation to the US$ are as follows:
Average for the Closing rate as of Average for the year ended Closing rate as of
year ended December 31, 2021 December 31, 2020 December 31, 2020
December 31, 2021
Egyptian Pound (EGP) 0.0639 0.0639 0.0634 0.0637
Pakistan Rupee (PKR) 0.0062 0.0057 0.0062 0.0063
Euro (EUR) 1.1832 1.1368 1.1413 1.2213
DRRK Won (KPW) 0.0078 0.0090 0.0093 0.0097
LBPLebanese Pounds (LBP) 0.0007 0.0007 0.0007 0.0007
Property and equipment
Property and equipment are stated at purchase cost or production cost, net of
accumulated depreciation and any impairment losses. Cost includes expenditure
directly attributable to bringing the asset to the location and condition
necessary for use and any dismantling and removal costs which may be incurred
because of contractual obligations, which require the asset to be returned to
its original state and condition.
Subsequent costs are included in the asset's carrying amount or recognized as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. The carrying amount of the replaced part
is derecognized. All other repairs and maintenance are charged to the income
statement during the financial period in which they are incurred. Each asset
is treated separately if it has an autonomously determinable useful life and
value. Depreciation is charged at rates calculated to write off the costs over
their estimated useful lives on a straight-line basis from the date the asset
is available and ready for use.
The useful lives of property and equipment and their residual values are
reviewed and updated, where necessary, at least at each year-end. Land is not
depreciated. When a depreciable asset is composed of identifiable separate
components whose useful lives vary significantly from those of other
components of the asset, depreciation is calculated for each component
separately, applying the "component approach ."
The useful lives estimated by the Group for the various categories of property
and equipment are as follows :
Number of years
Land and Buildings
Buildings 50
Leasehold improvements and renovations 3-8
Cable's system and equipment
Machinery 5-10
Commercial and other tangible assets
Computer equipment 3-5
Vehicles 3-6
Furniture and fixtures 5-10
Cellular equipment 8-15
Gains or (losses) arising from the sale or retirement of assets are determined
as the difference between the net disposal proceeds and the net carrying
amount of the asset sold or retired and are recognized in the income statement
in the period incurred under "Gains / (losses) from disposal of non-current
assets".
Leases
With the adoption of IFRS 16, the Group recognizes a right-of-use asset and a
corresponding lease liability at the date at which the leased asset is
available for use. Each lease payment is allocated between the principal
liability and finance costs. Finance costs are charged to the income statement
over the lease period using the effective interest rate method.
As A lease , right-of-use assets are initially measured at cost comprising
the following: (i) the amount of the initial measurement of lease liability;
(ii) any lease payments made at or before the commencement date less any lease
incentives received; (iii) any initial direct costs and, if applicable, (iv)
restoration costs. Payments associated with short-term leases and leases of
low-value assets are recognized as an expense in the income statement on a
straight-line basis.
Lease liabilities are initially measured at the net present value of the
following: (i) fixed lease payments, (ii) variable lease payment that are
based on an index or a rate and, if applicable, (iii) amounts expected to be
payable by the lessee under residual value guarantees, and (iv) the exercise
price of a purchase option if the lessee is reasonably certain to exercise
that option. Lease liabilities do not include any non-lease components that
may be included in the related contracts.
Lease payments are subsequently measured at amortized cost and discounted
using the interest rate implicit in the lease. If that rate cannot be
determined, the Group's incremental borrowing rate is used, being the rate
that the Group would have to pay to borrow the funds necessary to obtain an
asset of similar value in a similar economic environment with similar terms
and conditions.
The right-of-use asset is subsequently depreciated on a straight-line basis
over the entire term of the contract, unless the contract provides for the
transfer of ownership at the end of the lease term or the cost of the lease
reflects the fact that the lessee will exercise the purchase option. In this
case, the depreciation must be the shorter of the useful life of the asset and
the duration of the contract. The estimated useful lives for right-of-use
assets are calculated according to the same criterion applied to owned
tangible assets. In addition, the right-of-use asset is decreased by any
impairment losses and adjusted to reflect any remeasurement of the associated
lease liability.
In the statement of financial position, the Group presents right-of-use assets
within tangible assets and lease liabilities within current and non-current
borrowings.
In the income statement, interest expense on lease liabilities constitutes a
component of financial expenses and is shown separately from the depreciation
of right-of-use assets.
As a lessor
At incorporation or on modification of a contract that contains a lease
component, the Group allocates the consideration in the contract to each lease
component on the basis of their relative stand- alone prices.
When the Group acts as a lessor, it determines at lease incorporation whether
each lease is a finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the
lease transfers substantially all of the risks and rewards incidental to
ownership of the underlying asset. If this is the case, then the lease is a
finance lease; if not, then it is an operating lease. As part of this
assessment, the Group considers certain indicators such as whether the lease
is for the major part of the economic life of the asset.
When the Group is an intermediate lessor, it accounts for its interests in the
head lease and the sub-lease separately. It assesses the lease classification
of a sub-lease with reference to the right-of use asset arising from the head
lease, not with reference to the underlying asset.
If a head lease is a short-term lease to which the Group applies the exemption
described above, then it classifies the sub-lease as an operating lease.
If an arrangement contains lease and non-lease components, then the Group
applies IFRS 15 to allocate the consideration in the contract.
The Group applies the derecognition and impairment requirements in IFRS 9 to
the net investment in the lease. The Group further regularly reviews estimated
unguaranteed residual values used in calculating the gross investment in the
lease.
The Group recognizes lease payments received under operating leases as income
on a straight-line basis over the lease term as part of "other revenue".
Impairment of non-financial assets
Assets that have an indefinite useful life - for example, goodwill- are not
subject to amortization and are tested annually for impairment. Assets that
are subject to amortization are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which the
asset's carrying amount exceeds its recoverable amount. In determining an
asset's value in use, the estimated future cash flows are discounted using a
pre-tax rate that reflects the market's current assessment of the cost of
money for the investment period and the specific risk profile of the asset.
The recoverable amount is the higher of an asset's fair value less costs to
sell and value in use. For the purposes of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash
flows (cash-generating units, "CGU"). Non-financial assets other than goodwill
that suffered impairment are reviewed for possible reversal of the impairment
at each reporting date.
For the purpose of impairment testing, goodwill acquired in a business
combination is allocated to each of the CGUs, or groups of CGUs, that is
expected to benefit from the synergies of the combination. Each unit or group
of units to which the goodwill is allocated represents the lowest level within
the entity at which the goodwill is monitored for internal management
purposes. Goodwill is monitored at the operating segment level. Goodwill
impairment reviews are undertaken annually or more frequently if events or
changes in circumstances indicate a potential impairment. The carrying value
of goodwill is compared to the recoverable amount, which is the higher of
value in use and the fair value less costs to sell. Any impairment is
recognized immediately as an expense and is not subsequently reversed.
Investment property
Investment properties are property (land or a building or part of a building
or both) held by the Group to earn rental income or for capital appreciation
or both, rather than for sale in the ordinary course of business or for use in
supply of goods or services or for administrative purposes. Investment
properties are initially measured at cost. The cost of a purchased investment
property comprises its purchase price and any directly attributable
expenditure.
Directly attributable expenditure includes, for example, professional fees for
legal services, property transfer taxes and other transaction costs.
Subsequent to initial recognition, the Group has elected to measure investment
properties at cost less accumulated depreciation and accumulated impairment
losses, if any. Investment property is derecognized upon disposal, when it is
permanently withdrawn from use and no future economic benefits expected from
its disposal. Gains or losses arising from the retirement or disposal of
investment property are determined as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognized in the
consolidated profit or loss in the period of the retirement or disposal.
Reclassifications to / from investment property are made when, and only when,
there is a change of use.
Revenue from operating lease rentals is recognized on a straight-line basis
over the relevant term of the lease. The rental income generated by investment
properties is recognized within revenue in the consolidated income statement.
Depreciation is charged to the income statement on a straight-line basis over
the estimated useful lives of each component of the investment properties. The
estimated useful lives of leased units are estimated at 50 years.
Financial assets
On initial recognition, a financial asset is classified as measured at: -
- amortized cost.
- fair value through other comprehensive income (FVOCI) ; or
- fair value through profit or loss (FVTPL) .
The classification of financial assets is based on the business model in which
a financial asset is managed and its contractual cash flow characteristics
Financial assets are not reclassified subsequent to their initial recognition
unless the Group changes its business model for managing financial assets, in
which case all affected financial assets are reclassified on the first day of
the first reporting period following the change in the business model.
Amortized cost
A financial asset is measured at amortized cost if it meets both of the
following conditions and is not designated as at FVTPL: (i) it is held within
a business model whose objective is to hold assets to collect contractual cash
flows; and (ii) its contractual terms give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal
amount outstanding.
Trade receivables, current assets and current financial assets and other
receivables are originated in the ordinary course of business and held within
a business model with the objective to hold the receivables in order to
collect contractual cash flows that meet the 'solely payments of principal and
interest' criterion under IFRS 9. Consequently, they are initially recognized
at fair value adjusted by directly attributable transaction costs and
subsequently recognized at amortized cost on the basis of the effective
interest rate method (namely the interest rate that, at the time of initial
recognition, renders the present value of future cash flows).
Receivables due from customers and other financial receivables are included in
current assets. Should be the expiry date over twelve months from the
reporting date, they are classified as non-current assets. Receivables with
maturities greater than twelve months and no significant financing component
are discounted to present value.
- Fair value through profit or loss (FVTPL) .
Impairment of financial assets
The Group recognizes loss allowances for expected credit losses ("ECL") on:
Trade receivables related to fees and commission under the scope of IFRS 15
("Revenues from Contracts with Customers");
Financial assets measured at amortized cost or at FVOCI.
The Group applies a simplified approach to measure the of these assets. For
further information, please, refer to the section 3. Use of estimates and
critical judgments- Impairment of financial assets.
Impairment losses on financial assets are recognized in the consolidated
statement of profit and loss under "Impairment loss of other financial
assets".
Lifetime ECLs are the ECLs that result from all possible default events over
the expected life of a financial instrument. 12-month ECLs are the portion of
ECLs that result from default events that are possible within the 12 months
after the reporting date (or a shorter period if the expected life of the
instrument is less than 12 months).
For trade receivables related to fees and commission, the Group measures loss
allowances at an amount equal to 12-month ECLs.
For financial assets measured at amortized cost or at FVOCI, the Group
measures loss allowances at an amount equal to 12-month ECLs. However, a
lifetime ECLs is elected if the credit risk on the financial instruments has
increased significantly since initial recognition.
Significant increase in credit risk and default
When determining whether the credit risk of a financial asset has increased
significantly since initial recognition, the Group considers reasonable and
supportable information that is relevant and available without undue cost or
effort. This includes both quantitative and qualitative information and
analysis, based on the Group's historical experience and informed credit
assessment and including forward-looking information.
The Group considers a financial asset to be in default when:
there is a breach of financial covenants by the counterparty; or
the information developed internally or obtained from external sources
indicates that the debtor is unlikely to pay its creditors, including the
Group, in full (without taking into account any collateral held by the Group);
or
the financial asset is more than 90 days past due unless the Group has
reasonable and supportable information to demonstrate that a more lagging
default criterion is more appropriate.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are
measured as the present value of all cash shortfalls (i.e., the difference
between the cash flows due to the entity in accordance with the contract and
the cash flows that the Group expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets are credit
impaired. A financial asset is 'credit-impaired' when one or more events that
have a detrimental impact on the estimated future cash flows of the financial
asset have occurred.
Evidence that a financial asset is credit-impaired includes the following
observable data:
significant financial difficulty of the borrower or issuer.
a breach of contract such as a default or being more than 90 days past due.
the restructuring of a loan or advance by the Group on terms that the Group
would not consider otherwise.
it is probable that the borrower will enter bankruptcy or another financial
reorganization; or
the disappearance of an active market for security because of financial
difficulties.
Presentation of allowance for ECL in the statement of financial position
ECL for financial assets measured at amortized cost are deducted from the
gross carrying amount of the assets.
For financial instruments at FVOCI, the ECL is charged to consolidated profit
or loss and is recognized in OCI.
Write-off
The gross carrying amount of a financial asset is written off when the Group
has no reasonable expectations of recovering a financial asset in its entirety
or a portion thereof. The Group individually makes an assessment with respect
to the timing and amount of write-off based on whether there is a reasonable
expectation of recovery. The Group expects no significant recovery from the
amount written off. However, financial assets that are written off could still
be subject to enforcement activities in order to comply with the Group's
procedures for recovery of amounts due. Subsequent recoveries of an asset that
was previously written off are recognized as a reversal of impairment in the
consolidated statement of profit and loss when the recovery occurs.
Financial liabilities
Financial liabilities consisting of borrowings, trade payables and other
obligations are recognized when the Group becomes a party to the related
contractual clauses and are initially recognized at fair value, adjusted by
any directly attributable transaction costs.
Financial liabilities and trade payables, with the exception of derivative
financial instruments, are subsequently measured at amortized cost using the
effective interest rate method.
Derivative financial instruments and embedded derivatives
Derivatives are initially recognized at fair value on the date a derivative
contract is entered into and are subsequently re-measured at their fair value.
Fair value gains and losses on all of the Groups derivative financial
instruments are recognized in the income statement within finance income and
expense.
Derivatives embedded in non-derivative host contracts are treated as separate
derivatives when their risks and characteristics are not closely related to
those of the host contracts and the host contracts are not measured at fair
value through profit or loss.
Derecognition of financial assets and liabilities
Financial assets are derecognized when one of the following conditions is met:
the contractual right to receive the cash flows from the asset has expired.
the Group has substantially transferred all of the risks and rewards related
to the asset, transferring its rights to receive the cash flows from the asset
or assuming a contractual obligation to pass the cash flows received to one or
more beneficiaries by virtue of an agreement that meets the requirements set
out in IFRS 9 (pass through test);
the Group has not transferred nor substantially maintained all the risks and
rewards related to the financial asset but has transferred control.
The financial liabilities are derecognized when they are extinguished, namely
when the contractual obligation has been met, cancelled, or prescribed. An
exchange of debt instruments with substantially different contractual terms,
must be accounted for as an extinguishment of the original financial liability
and the recognition of a new financial liability. Similarly, a substantial
modification of the contractual terms of an existing financial liability must
be accounted for as an extinguishment of the original financial liability and
the recognition of a new financial liability.
Offsetting financial assets and liabilities
The Group offsets financial assets and liabilities if and only if:
there is a legally exercisable right to offset the amounts recognized in the
financial statements.
there is an intention either to offset or to dispose of the asset and settle
the liability at the same time.
Finance income
Interest income is recognized using the effective interest method. When a
receivable is impaired, the Group reduces the carrying amount to its
recoverable amount, being the estimated future cash-flow discounted at the
original effective interest rate of the instrument and continues unwinding the
discount as interest income. Interest income on impaired loans is recognized
using the original effective interest rate.
Inventories
Inventories are stated at the lower of purchase cost or production cost and
net realizable value. Cost is based on the weighted average method. Net
realizable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion and selling expenses. When
necessary, obsolescence allowances are made for slow-moving and obsolete
inventories.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with
banks and other short-term highly liquid investments with original maturities
of three months or less. In the consolidated statement of financial position,
bank overdrafts are shown within borrowings in current liabilities.
The group recognize loss allowances for ECL on the cash closing balance. The
group measures loss allowances at an amount equal to 12-month ECLs.
Current and deferred income tax
The tax expense for the year comprises current and deferred tax. Tax is
recognized in the income statement, except to the extent that it relates to
items recognized directly in equity. In this case, the tax is also recognized
in equity.
The current income tax charge is calculated on the basis of the tax laws
enacted or substantively enacted at the reporting date in the countries where
the Group's subsidiaries and associates operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect
to situations in which applicable tax regulation is subject to interpretation.
It establishes provisions where appropriate on the basis of amounts expected
to be paid to the tax authorities.
Deferred income tax is recognized, using the balance sheet liability method,
on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the Consolidated Financial
Statements. However, deferred income tax is not accounted for if it arises
from initial recognition of goodwill or the initial recognition of an asset or
liability in a transaction other than a business combination that at the time
of the transaction affects neither accounting nor taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that have been
enacted or substantially enacted at the reporting date and are expected to
apply when the related deferred income tax asset is realized, or the deferred
income tax liability is settled.
Deferred income tax assets are recognized only to the extent that it is
probable that future taxable profit will be available against which the
temporary differences can be utilized.
Deferred income tax is provided on temporary differences arising on
investments in subsidiaries, associates, and joint ventures, except where the
timing of the reversal of the temporary difference is controlled by the Group
and it is probable that the temporary difference will not reverse in the near
future.
Deferred tax assets and liabilities are offset if there is a legally
enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax
liabilities and assets on a net basis, or their tax assets and liabilities
will be realized simultaneously.
Business Combination
The acquisition method of accounting is used to account for all business
combination, regardless of whether equity instruments or other assets are
acquired. The consideration transferred for the acquisition of a subsidiary
comprises the:
· Fair values of the assets transferred.
· Liabilities incurred to the former owners of the acquired
business.
· Equity interests issued by the group.
· Fair value of any asset or liability resulting from a contingent
consideration arrangement and.
· Fair value of any pre-existing equity interest in the subsidiary.
Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are, with limited exceptions, measured
initially at their fair values at the acquisition date.
Acquisition-related costs are expensed as incurred.
The excess of the:
· Consideration transferred.
· Amount of any non-controlling interest in the acquired entity,
and
· Acquisition date fair value of any previous equity interest in
the acquired entity
Over the fair value of the net identifiable assets acquired is recorded as
goodwill. If those amounts are less than the fair value of the net
identifiable assets of the subsidiary acquired, the difference is recognized
directly on profit or loss as a bargain purchase.
Where the settlement of any part of cash consideration is deferred, the
amounts payable in the future are discounted to their present value as the
date of exchange. The discount rate used is the entity's incremental borrowing
rate, being the rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial
liability. Amounts classified as a financial liability are subsequently
remeasured to fair value with changes in fair value recognized in the
consolidated profit or loss.
If the business combination is achieved in stages, the acquisition date
carrying value of the acquirer's previously held equity interest in the
acquire is remeasured to fair value at the acquisition date. Any gains or
losses arising from such remeasurement are recognized in the consolidated
profit or loss.
In case that initial treatment of business combination is not complete at the
end of financial period consolidated, the group recognizes temporary amounts
for accounts and during the measurement period not to exceed one year from the
date of acquisition. The adjustment is performed retrospectively for
completion of new information (Intangible assets, deferred taxes/provisions,
and others).
Provisions
Provisions are only recognized when the Group has a present legal or
constructive obligation arising from past events that will probably result in
a future outflow of resources, and the amount has been reliably estimated.
Provisions are not recognized for future operating losses. The amount provided
represents the best estimate of the present value of the outlay required to
meet the obligation. The interest rate used in determining the present value
of the liability reflects current market rates and takes into account the
specific risk of each liability.
Revenue from contracts with customers
Revenue is recognized when the control over a product or service is
transferred to a customer. Revenue is measured at the transaction price, which
is based on the amount of consideration that the Group expects to receive in
exchange for transferring the promised goods or services to the customer and
excludes any sales incentives as well as taxes collected from customers that
are remitted to government authorities. The transaction price will include
estimates of variable consideration to the extent it is highly probable that a
significant reversal of revenue recognized will not occur.
Where a contract includes multiple performance obligations, the transaction
price will be allocated to each performance obligation based on the
stand-alone selling prices. Management has exercised judgment in determining
performance obligations, variable consideration, allocation of transaction
price and the timing of revenue recognition.
The Group does not recognize any assets associated with the incremental costs
of obtaining a contract with a customer that are expected to be not recovered.
The majority of revenue is recognized over a period of time and the Group
applies the practical expedient to recognize the incremental costs of
obtaining a contract as an expense when incurred if the amortization period of
the asset that would otherwise be recognized is one year or less.
Specifically, the Group mainly recognizes revenue from financial services and
cables. The criteria followed by the Group in recognizing ordinary revenue are
as follows:
Revenue from cable segment
Revenue from cable segment is predominantly generated by Trans World
Associates (Private) Limited ("TWA") and it includes:
Revenue from bandwidth capacity sales, recognized over the period of the
contract on the basis of usage of bandwidth by the customers.
Revenues from services contracts (Value-Added Data Class and Fixed Local Loop
services, maintaining and lease of telecom infrastructure facilities, and IP
TV services), recognized over the period of the contract.
Revenue is measured based on the consideration specified in a contract with
customer and excludes amounts collected on behalf of third parties. The Group
recognizes revenue when it provides the service to the customer and related
performance obligation is fulfilled. The typical payments term is 90 days.
The revenues from cable segment are generated as follows:
TWA provides bandwidth services, such as international private lease circuit
and IP transit. The typical length of a contract with customers is 12 months.
With exception to indefeasible right of use (IRU) contract which has a
length of 180 months.
It also generates revenues from providing Data Class Value Added and Fixed
Local Loop services. The typical length of a contract with a customer has been
estimated to be 12 months.
Furthermore, TWA generates revenues from providing and maintaining lease, rent
and sales of telecom infrastructure facilities. TWA is providing these
services under license provided by Pakistan Telecommunication Regulatory
Authority to its subsidiary Trans World Infrastructure Services Private
Limited (TIS).
· Lastly, TWA generates revenue from providing Cable and IP TV
services. The typical length of a contract with customers has been estimated
to be 12 months.
It should be noted that the revenue from Cable segment has been presented in
the discontinued operations in the current year and represented in the
discontinued operations in the previous year following the sale of the
Company. Refer to notes (1.12 and 33).
Revenue from entertainment segment
- The company recognizes revenue based on the following five steps:
1. Determination of the contract with the client.
2. Determination of the contractual obligation to transport goods and/or
services (known as performance obligations);
3. Determination of the price of the transaction.
4. Allocation of the transaction price to performance obligations determined
on the basis of the independent selling price for each good or service.
5. Recognition of income upon fulfilment of the relevant performance
obligation
The following is a statement of the company's revenues and how to define each
revenue:
Revenue from entertainment segment is predominantly generated by Orascom
pyramids entertainment ("OPE ") and Orascom sound and light "OSL" which
includes:
Orascom pyramids entertainment ("OPE ")
Rental income: Rental income is recognized according to the accrual basis and
in the straight-line manner according to the essence of the lease agreement
Sponsorship Revenue: Care income is recognized by the distribution of
sponsorship consideration on a straight-line basis over the duration of the
sponsorship contract.
Events revenue: Events revenue is recognized when performing event for
customers and no revenue is recognized in case of uncertainty of refund for
this revenue or associated costs.
- Orascom sound and light "OSL
Revenues of sound and light shows: - It is represented in the revenues
resulting from sound light shows presented within the archaeological pyramids
area.
- EBITDA Definition (Alternative performance measure)
o Adjusted earnings before interest, tax, depreciation, and amortisation
(adjusted EBITDA)
A management has presented the performance measure adjusted EBITDA because it
monitors this performance measure at a consolidated level, and it believes
that this measure is relevant to an understanding of the Group's financial
performance. Adjusted EBITDA is calculated by adjusting profit from continuing
operations to exclude the impact of taxation, net finance costs, depreciation,
amortisation, impairment losses/reversals related to goodwill, intangible
assets,
property, plant, and equipment and the remeasurement of disposal groups, and
share of profit of equity‑accounted investees.
Adjusted EBITDA is not a defined performance measure in IFRS Accounting
Standards. The Group's definition of adjusted EBITDA may not be comparable
with similarly titled performance measures and disclosures by other entities
o The following information is regularly provided to the chief operating
decision maker and is measured consistently with that of the consolidated
financial statements.
Earnings per share
Basic: Basic earnings per share are calculated by dividing the profit for the
year attributable to equity holders of the Company, both from continuing and
discontinued operations, by the weighted average number of ordinary shares in
issue during the year excluding ordinary shares purchased by the Company and
held as treasury shares.
Diluted: Diluted earnings per share are calculated by dividing the profit for
the year attributable to equity holders of the Company by the weighted average
number of ordinary shares of the Company outstanding during the year where,
compared to basic earnings per share, the weighted average number of shares
outstanding is modified to include the conversion of all dilutive potential
shares, while the profit for the year is modified to include the effects of
such conversion net of taxation. Diluted earnings per share are not calculated
when there are losses as any dilutive effect would improve earnings per share.
Segment reporting
Operating segments are reported in a manner which is consistent with the
internal reporting information provided to the chief operating decision-maker.
The chief operating decision-maker, who is responsible for allocating
resources and assessing performance of the operating segments, has been
identified as the board of directors of the Company.
Non-current assets and liabilities held for sale
Non-current assets (or disposal groups comprising assets and liabilities) that
are expected to be recovered primarily through sale rather than through
continuing use are classified as held for sale. Immediately before
classification as held for sale, the assets (or components of a disposal
group) are re-measured in accordance with the Group's accounting policies.
Thereafter the assets and liabilities held for sale (or disposal group) are
measured at the lower of their carrying amount and fair value less cost to
sell. Any impairment loss on a disposal group is first allocated to goodwill,
and then to the remaining assets and liabilities on a pro rata basis, except
that no loss is allocated to inventories, financial assets and deferred tax
assets, which continue to be measured in accordance with the Group's
accounting policies. Impairment losses on initial classification as held for
sale and subsequent losses on re-measurement are recognized in the income
statement. Subsequent increase in fair value less costs to sell may be
recognized in the income statement only to the extent of the cumulative
impairment loss that has been recognized previously.
Discontinued operations
A discontinued operation is a component of the Group's business that
represents a separate major line of business or geographical area of
operations that has been disposed of or is held for sale, or is a subsidiary
acquired exclusively with a view to resale. Classification as a discontinued
operation occurs at the earliest of disposal or when the operation meets the
criteria to be classified as held for sale, if earlier. When an operation is
classified as a discontinued operation, the comparative income statement is
re-presented as if the operation had been discontinued from the start of the
comparative period.
3. Use of estimates and critical judgements
The preparation of the Consolidated Financial Statements requires that the
directors apply accounting policies and methodologies that, in some
circumstances, are based upon complex and subjective judgments and estimates
that are based on historical experience and assumptions that are considered
reasonable and realistic at the time, considering the relevant circumstances
for example the assessment of control over subsidiaries and associates as well
as the impairment of goodwill amount. The application of such estimates and
assumptions affects the amounts recorded in the consolidated statement of
financial position, the consolidated income statement, the consolidated
statement of comprehensive income and cash flows, as well as in the notes.
Actual results might differ from such estimates due to the uncertainty
surrounding the assumptions and conditions upon which estimates are based. The
accounting estimates that require the more subjective judgment of management
in making assumptions or estimates regarding the effects of matters that are
inherently uncertain and for which changes in conditions may significantly
affect the results reported in these Consolidated Financial Statements are
summarised below.
Valuation of financial instruments
For some financial instruments that are not traded in an active market and
included in the financial statements such as financial derivatives, Management
estimates fair value using valuation techniques based on inputs and
assumptions, some of which are linked to quoted market prices and others on
management's estimations. Management applied reasonable option valuation
models during the period in estimating the fair value of these financial
instruments.
Impairment of non-current assets
Non-current assets are reviewed to determine whether there are any indications
that the net carrying amount of these assets may not be recoverable and that
they have suffered an impairment loss that needs to be recognized. In order to
determine whether any such elements exist, it is necessary to make subjective
measurements, based on information obtained within the Group, in the market
and on past experience. When indicators are identified that an asset may have
become impaired, the Group estimates the impairment loss using suitable
valuation techniques. The identification of elements indicating that a
potential impairment exists and estimates of the amount of the impairment,
depend on factors that may vary in time, affecting management's assessments
and estimates.
Impairment of financial assets
The Group applies a simplified approach to measure expected credit losses of
trade receivables related to fees and commission and financial assets measured
at amortized cost and FVOCI. In a simplified approach expected credit losses
are measured on the basis of a lifetime or 12-month expected loss allowance.
The expected credit losses are based on historical information on actual
credit losses on receivables. The model takes into account other information
on the future economic conditions available at the time of the measurement.
Assets held for sale
Non‑current assets, or disposal groups comprising assets and liabilities,
are classified as held‑for‑ sale if it is highly probable that they will
be recovered primarily through sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their
carrying amount and fair value less costs to sell. Any impairment loss on a
disposal group is allocated first to goodwill, and then to the remaining
assets and liabilities on a pro rata basis, except that no loss is allocated
to inventories, financial assets, deferred tax assets, employee benefit
assets, investment property or biological assets, which continue to be
measured in accordance with the Group's other accounting policies. Impairment
losses on initial classification as held‑for‑sale or
held‑for‑distribution and subsequent gains and losses on remeasurement are
recognized in profit or loss.
Discontinued operation
A discontinued operation is a component of the Group's business, the
operations, and cash flows of which can be clearly distinguished from the rest
of the Group and which:
•Represents a separate major line of business or geographic area of
operations.
•Is part of a single coordinated plan to dispose of a separate major line of
business or geographic area of operations; or
•Is a subsidiary acquired exclusively with a view to resale.
Classification as a discontinued operation occurs at the earlier of disposal
or when the operation meets the criteria to be classified as
held‑for‑sale.
When an operation is classified as a discontinued operation, the comparative
statement of profit or loss and OCI is re‑presented as if the operation had
been discontinued from the start of the comparative year.
Intangibles
Intangible assets constitute a significant part of the Group's total assets
and the scheduled amortisation charges from a significant part of the annual
operation expenses. The useful economic lives arrived at, on the basis of
management's estimates and assumptions, have a major impact on the valuation
of intangible assets.
At the end of each reporting period, the Group reviews the carrying amounts of
its intangible assets to determine whether there is any indication that those
assets have suffered an impairment loss. If such indication exists, the
recoverable amount of the intangible asset is estimated, in order to determine
the extent of the impairment loss (if any). Where it is not possible to
estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
Where a reasonable and consistent basis of allocation can be identified,
intangible assets are allocated to individual cash-generating units, or
otherwise they are allocated to the smallest group of cash-generating units
for which a reasonable and consistent allocation basis can be identified.
Depreciation of non-current assets
The cost of property and equipment is depreciated on a straight-line basis
throughout the useful economic life of the relevant asset. The useful economic
life is determined by management at the time the asset is acquired and is
based upon historical experience for similar assets, market conditions, and
forecasts regarding future events that could have an impact on useful life,
including changes in technology. Therefore, the actual useful economic life
may differ from the estimated useful life. The Group periodically evaluates
sector and technology changes in order to update the remaining useful life.
Such periodic updates could result in a change during the depreciation period,
and therefore also in the depreciation in future periods.
Taxes
Income taxes (both current income tax and deferred taxes) are determined in
each country where the
Group operates in accordance with a prudent interpretation of the applicable
tax regulations.
This process results in complex estimates in determining taxable and
deductible income and taxable temporary differences between accounting and tax
values. In particular, deferred tax assets are recognized when it is probable
that there will be future taxable income against which the temporary
differences can be utilised. The assessment of the recoverability of deferred
tax assets, in relation to tax losses that can be used in future periods and
deductible temporary differences, considers the estimated future taxable
income on the basis of a prudent tax planning.
Provisions and contingent liabilities
Management assesses events and circumstances indicating that the Group may
have an obligation resulting in the ordinary course of business, Management
applies its judgment in determining whether the recognition criteria have been
met through assessing the probability of the obligation, making assumptions
about timing and amounts of future cash outflows expected to settle the
obligation.
4. Financial risk management
Financial risk factors
The Group is exposed to a variety of financial risks: market risk (including
foreign exchange risk and cash flow and fair value interest rate risk), credit
risk and liquidity risk. In particular, the Group is exposed to risks from
movements in exchange rates, interest rates and market prices. The Group's
overall risk management program focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the Group's
performance through ongoing operational and finance activities. The management
has overall responsibility for the establishment and oversight of the Group's
risk management framework.
Market Risk
i) Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk
arising when its business transactions are in currencies other than its
functional currency. The main currencies to which the Group is exposed are the
US dollar ("US$"), the Pakistani Rupee ("PKR"), the Euro ("EUR"), DPRK Won
("KPW") , Brazilian Real ("BRL") , Lebanese Pound( LBP) and the Egyptian Pound
("EGP").
The Group is exposed to foreign currency risk arising in two separate ways:
a) Foreign exchange operations risk
The Group entities predominantly execute their operating activities in their
respective functional currencies. Some Group subsidiaries are, however,
exposed to foreign currency risks in connection with scheduled payments in
currencies that are not their functional currencies. In general, this relates
to foreign currency denominated supplier payables due to capital expenditures
and receivables. The Group monitors the exposure to foreign currency risk on a
group basis. Management has set up a policy to require Group companies to
manage their foreign exchange risk against their functional currency. In
addition, the Group manages foreign currency risk by matching its principal
cash outflows to the currency in which the principal cash inflows are
denominated. This is generally achieved by obtaining loan financing in the
relevant currency.
At year end, major net assets / (net liabilities) foreign currencies positions
presented in 'US Dollars' (US$), were as follows:
(In thousands of US$) December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2021
Assets in currency (Liabilities) in currency Net assets/(liabilities) in currency Net assets/(liabilities) in US$
US$ 70,175 (14,656) 55,519 55,519
LBP 11,726,012 (16,454,406) (4,728,394) (3,138)
Euro 5,643 - 5,643 6,415
GBP 1 - 1 2
BRL 29,077 (4,000) 25,078 4,502
(In thousands of US$) December31,2020 December31,2020 December31,2020 December31,2020
Assets in currency (Liabilities) in currency Net assets/(liabilities) in currency Net assets/(liabilities) in US$
US$ 15,626 (30,696) (15,070) (15,070)
LBP 41,897,246 (29,919,438) 11,977,807 7,948
Euro 3,126 - 3,126 3,818
PKR 615,374 (4,900,863) (4,285,489) (26,826)
GBP 1 - 1 2
BRL 12,957 (2,509) 10,448 2,012
As of December 31, 2021,if the functional currencies had increased/(decreased)
by 10% against the US$, Euro, BRL, PKR, GBP, LBP and DPRK Won, with all other
variables held constant, the translation of foreign currency would have
resulted in an increase/(decrease) of US$ (7,900)thousand and Euro of (1,285)
and LBP 464 as well as BRL 2,280 of net profit (2020: US$ 714 thousand and
Euro of 1,181and LBP 3,575 as well as PKR of 279 of net profit).
b) Foreign exchange translation risk
Due to its international presence, the Group's Consolidated Financial
Statements are exposed to foreign exchange fluctuations, as these affect the
translation of subsidiaries' assets and liabilities denominated in foreign
currencies to the US$ (the Group's presentational currency). The currencies
concerned are mainly the Egyptian pound, the Pakistani Rupee, DPRK Won and the
Euro. This represents a translational risk rather than a financial risk given
that these movements are posted directly to equity in the cumulative
translation reserve.
ii) Price risk
The Group has no exposure to equity instruments of other entities that are
publicly traded.
iii) Cash flow and fair value interest rate risk
The Groups interest rate risk arises from borrowings. Borrowings received at
variable interest rates expose the Group to cash flow interest rate risk. The
Group has not entered into any derivative financial instruments to hedge its
exposure to cash flow interest rate risk.
All borrowings outstanding as of December 31, 2021 (US$ 10,190 thousand) and
December 31, 2020
(US$ 39,522 thousand) are at a fixed interest rate, at a variable interest
rate and interest rate free.
The Group analyses its interest rate exposure on a dynamic basis. The Group
calculates the impact on the consolidated profit or loss of a defined interest
rate shift. The same interest rate shift is used for all currencies.
The impact of a 1% interest rate shift would be a maximum increase/decrease in
2021 finance costs of US$ 102 thousand (2020: US$ 370 thousand).
Fair value estimation financial instruments carried at fair value, by
valuation method. The different levels have been defined as follows:
The fair value of a financial instrument traded in active markets is based on
quoted market prices at the reporting date. A market is regarded as active, if
quoted prices are readily and regularly available from an exchange, dealer,
broker, pricing service or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an arm's length basis.
These instruments are included in level 1.
The fair value of instruments that are not traded in an active market (for
example privately negotiated derivatives between two parties) is determined by
using valuation techniques. These valuation techniques maximise the use of
observable market data where it is available and rely as little as possible on
entity specific estimates. If all significant inputs required to fair value an
instrument are observable, instrument is included in Level 2.
If one or more of the significant inputs is not based on observable market
data, the instrument is included in Level 3 which include several valuation
techniques as discontinued future cashflow.
The following table shows the carrying amounts and fair values of financial
assets and financial liabilities, including their levels in the fair value
hierarchy: -
(In thousands of US$) As of December 31, 2021, As of December 31, 2020 2021 2020
At amortized Cost At amortized Cost Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Statement of financial position
Cash and cash equivalents 69,222 21,865 - - 69,222 - - 21,865
Trade receivables 8,041 20,422 - - 8,041 - - 20,422
Investment property - - - - 13,165 - - 45,821
Other financial assets 3,391 5,690 - - 3,391 - - 5,690
Other assets 1,821 9,175 - - 1,821 - - 9,175
Liabilities to Loan - - - - 10,190 - - 39,522
Tarde payable and other labilities - - - - 23,858 - - 60,940
Credit Risk
i) Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations and arises principally from the Group's receivables from
customers, investments in debt securities and cash balances. The carrying
amounts of financial assets and contract assets represent the maximum credit
exposure. Impairment losses on financial assets and contract assets recognized
in consolidated profit or loss were as follow: -
(In thousands of US$) December 31, 2021 December 31, 2020
Impairment loss on Trade receivables (note 19) * (305) 286
Impairment loss on financial assets (note 17)** 5,498 3,543
reversal of provision (378) -
Impairment loss in Other non-current assets (note 20) 196 -
Impairment loss in Cash and cash equivalent (note 21) 1,830 -
Total (6,841) 3,829
* This amount related to impairment loss for trade receivables in Orascom
telecom Lebanon for a total amount of US$ (305) thousand (2020: US$ nil).
** Impairment as of 31 December 2021 related mainly to Riza Capital remaining
due balance with an amount of US$ 5,498 thousand (2020:US$ 3,636 in
discontinued operation)
Cash and cash equivalents
The Group Companies have placed funds with the following financial
institutions based on their credit rating: -
Rating
Name of Bank 2021 2020
Habib Bank Limited AAA AAA
United Bank Limited AAA AAA
Dubai Islamic Bank (Pakistan) Limited AA AA
MCB Islamic Bank Limited A A
MCB Bank Limited AAA AAA
Meczan Bank Limited AA+ AA+
Telenor Microfinance Bank Limited A+ A+
Arab Bank Zurich BB+ AA
CA Indosuez LU A+ A
Credit Agricole Egypt AA+ AA+
QNB Bank A+ A+
Audi Bank CCC CCC
Blom Bank CCC CCC
The Group held cash and cash equivalents of US$ 69,222million (2020: US$
21,865 million) with banks which are rated AAA and AA+ based on Standard &
Poor and are considered to have low credit risk. The cash balances are
measured on 12-month expected credit losses and subject to immaterial credit
loss.
Trade receivables
The Group's exposure to credit risk is influenced mainly by the individual
characteristics of each customer. However, management also considers the
factors that may influence the credit risk of its customer base, including the
default risk associated with the industry and country in which customers
operate. Details of concentration of revenue are included in Notes 6.
The risk management committee has established a credit policy under which each
new customer is analysed individually for creditworthiness before the Group's
standard payment and delivery terms and conditions are offered. The Group's
review includes external ratings, if they are available, financial statements,
credit agency information, industry information and in some cases bank
references. Sale limits are established for each customer and reviewed
quarterly. Any sales exceeding those limits require approval from the risk
management committee.
In monitoring customer credit risk, customers are grouped according to their
credit characteristics, including whether they are an individual or a legal
entity, whether they are a wholesale, retail or end-user customer, their
geographic location, industry, trading history with the Group and existence of
previous financial difficulties.
The Group is closely watching the economic situations in Pakistan and Brazil.
To minimize risks associated with customers in these volatile countries, we
are taking proactive measures. Additionally, we are in discussions with the
Lebanese government to expedite the payment of outstanding dues.
The Group does not require collateral in respect of trade and other
receivables.
The Group does not have trade receivable and contract assets for which no loss
allowance is recognized because of collateral.
As of December 31, 2021, and 2020, the exposure to credit risk for trade
receivables risk and contract assets by Geographic region was as follows: -
(In thousands of US$) Carrying amount December 31, 2021 Carrying amount December 31, 2020
Egypt 53 -
Pakistan - 11,059
Brazil 874 462
Lebanon 7,114 8,901
Total 8,041 20,422
As of December 31, 2021, and 2020, the exposure to credit risk for trade
receivables by type of counterparty was as follows: -
(In thousands of US$) Carrying amount December 31, 2021 Carrying amount December31, 2020
Cable - 11,059
GSM 7,114 8,901
Rentals 874 462
Entertainment 53 -
Total 8,041 20,422
The main change in 2021 is related to the reclassification of the cable
business to be presented as assets held for sale as mentioned in note 27.
Liquidity Risk
The Group monitors and mitigates liquidity risk arising from the uncertainty
of cash inflows and outflows by maintaining sufficient liquidity of cash
balances. In general, liquidity risk is monitored at entity level whereby each
subsidiary is responsible for managing and monitoring its cash flows and
rolling liquidity reserve forecast in order to ensure that it has sufficient
committed facilities to meet its liquidity needs.
Laws and regulations in certain countries, such as North Korea, in which the
Group operates limit the conversion of current cash balances into foreign
currency. Given the nature of the business, Group companies may have to make
payments in foreign currencies (for example capital expenditures), the lack of
individual entity foreign currency reserves means that these companies are
largely dependent on the Company to make these payments on its behalf.
The table below analyses the Group's financial liabilities into relevant
maturity groupings based on the remaining period at the balance sheet to the
contractual maturity date. The amounts disclosed in the tables are the gross
contractual, undiscounted cash flows including interest, charges and other
fees.
(In thousands of US$) Carrying amount Expected cash flows Less than 1 year Between 1 and 5 years More than 5 years
Liabilities
Liabilities to banks 10,190 14,684 1,084 13,600 -
Trade payables and other liabilities 23,658 23,658 23,658 - -
As of December 31, 2021 33,848 38,342 24,742 13,600 --
(In thousands of US$) Carrying amount Expected cash flows Less than 1 year Between 1 and 5 years More than 5 years
Liabilities
Liabilities to banks 28,003 33,403 11,443 19,342 2,618
Trade payables and other liabilities 46,693 46,693 46,693 - -
Finance lease liability 5,293 5,333 1483 3,300 550
Sale and leaseback 5177 5,226 5,226 -- --
Other borrowings 1,049 1,066 571 495 -
As of December 31, 2020 86,215 94,965 60,502 27,952 6,511
Capital risk management
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern and to maintain an optimal capital
structure to reduce the cost of capital.
Other risks
Governmental authorisations
Certain future Group activities, including the GSM operations in Lebanon or
the cable segment, are dependent on obtaining appropriate government
authorisations. Should these authorisations not be obtained or delayed, there
could be an adverse impact on the future operations of the Group, such as a
decrease in revenues or penalty payments due to contractual counterparties.
Political and economic risk in emerging countries
A significant amount of the Group's operations is conducted in Egypt, North
Korea , Lebanon and Pakistan. The operations of the Group depend on the market
economy of the countries in which the subsidiaries or associate operate. In
particular, these markets are characterised by economies that are in various
stages of development or are undergoing restructuring. Therefore, the
operating results of the Group are affected by the current and future economic
and political developments in these countries. In particular, the results of
operations could be unfavourably affected by changes in the political or
governmental structures or weaknesses in the local economies in the countries
where it operates. These changes could also have an unfavourable impact on
financial condition, performance and business prospects.
Regulatory risk in emerging countries
Due to the nature of the legal and tax jurisdictions in the emerging countries
where the Group operates, it is possible that laws and regulations could be
amended. This could include factors such as the current tendency to withhold
tax on the dividends of these subsidiaries, receiving excessive tax
assessments, granting of relief to certain operations and practices relating
to foreign currency exchange. These factors could have an unfavourable effect
on the financial activities of the Group and on the ability to receive funds
from the subsidiaries.
Revenue generated by the majority of the Group subsidiaries is expressed in
local currency. The Group expects to receive most of this revenue from its
subsidiaries and therefore it relies on their ability to be able to transfer
funds. The regulations in the various countries, such as North Korea, where
Koryolink operates could reduce the ability to pay interest and dividends and
to repay loans, credit instruments and securities expressed in foreign
currency through the transfer of currency. In addition, in some countries it
could be difficult to convert large amounts of foreign currency due to central
bank regulations. The central banks may amend regulations in the future and
therefore the ability of the Company to receive funds from its subsidiaries
may change.
Government Approvals
Some of the activities of the Group, including the telecommunications activity
in Lebanon and the marine cable business, depend heavily on obtaining the
approval of the concerned government authorities.
The telecommunications activity in Lebanon is in accordance with the agreement
with the Ministry of Telecommunications for the management of Mobile Interim
Company One (MIC1) which expired in
January 31, 2013, and has been renewed annually till December 2019, where the
management received a letter from the ministry of telecommunications in
Lebanon to terminate the contract and to proceed in handing over the
management.
Classes of financial instrument
The tables below present the Groups financial assets and liabilities by
category.
As of December 31, 2021 As of December 31, 2020
(In thousands of US$) At amortized Cost At FVTPL Total At amortized Cost At FVTPL Total
Assets per statement of financial position
Cash and cash equivalents 69,222 - 69,222 21,865 - 21,865
Trade receivables 8,041 - 8,041 20,422 - 20,422
Other financial assets 3,391 - 3,391 10,431 - 10,431
Other assets 1,821 - 1,821 1,283 - 1,283
Total 82,475 - 82,475 54,001 - 54,001
As of December 31, 2021 As of December 31, 2020
Other financial liabilities at amortized cost Total Other financial liabilities at amortized cost Total
(In thousands of US$)
Borrowings 10,190 10,190 39,522 39,522
Trade payable and other current liabilities(1) 23,658 23,658 53,915 53,915
Total 33,848 33,848 93,437 93,437
1excludes other payable due to local authorities and prepaid traffic and
deferred income, as these do not meet the definition of a financial
liabilities
5. Segment reporting
The chief operating decision-maker has been identified as the board of
directors of the Company. The board of directors reviews the Group's internal
reporting in order to assess its performance and allocate resources, mainly
from a geographical perspective, of the mobile telecommunication business.
Pursuant to the decision to dispose of entities previously included in the
Media and Technology segment, OIH management has changed its internal
reporting as analysed by the chief operating decision-maker and revised the
reportable operating segments as follows:
Cables: relating to the provision of direct broadband and high-speed
connectivity to telecom operators, internet service providers and major
corporations through submarine fibre optic cables. The segment results were
represented as discontinued operations
GSM - Lebanon: relating to the management contract of the Lebanese mobile
telecommunications operator Alfa, which is owned by the Republic of Lebanon
Investment property: investment properties relate to real estate property the
Group owns in Sao Paolo, Brazil presented as discontinued operations.
Entertainment: relates to the entertainment activities provided by OPE and
S&L in the Pyramid's area in Egypt.
Other: relates mainly to the Group's equity investments, income and expenses
related to the parent company of the Group (OIH) in addition to entertainment
relates to the entertainment activities provided by OPE in the Pyramid's area
in Egypt.
The Group reports on segment reporting, which are independently managed. The
chief operating decision-maker assesses the performance of such operating
segments based on:
Total revenue and Adjusted EBITDA, defined as profit for the period before
income tax expense /(benefit), share of profit/(loss) of investment in
associates and related impairment loss, foreign exchange gains /(loss),
financial expense, financial income, gains/(losses) on disposal of non-current
assets, impairment charges and depreciation and amortisation, and Segment
capital expenditure is the total cost incurred during the period to acquire
property and equipment and intangible assets other than goodwill.
Revenue and adjusted EBITDA disclosure per segment
For the year ended December 31, 2021 For the year ended December 31, 2020 (Restated)
(In thousands of US$) Total segment revenue Inter segment revenue Revenue from external customers Adjusted EBITDA Total segment revenue Inter segment revenue Revenue from external customers Adjusted EBITDA
Entertainments 1,784 - 1,784 1,662 - - - -
GSM - - - - 4,590 - 4,590 (822)
Other 937 (937) - (11,166) 1,664 (1,367) 297 1,481
Total 2,721 (937) 1,784 (9,504) 6,254 (1,367) 4,887 659
Reconciliation of adjusted EBITDA to profit / (loss) before income tax
(In thousands of US$) For the year ended For the year ended
December 31, 2021 December 31, 2020 (Restated)
Adjusted EBITDA (9,504) 659
Depreciation and amortization (337) (423)
Impairment loss of other financial assets * (6,841) (3,829)
Impairment loss of other financial assets - 222
gain from acquisition investment property 12,825 -
Finance income 186 4,155
Finance expense (834) (317)
Net foreign currencies translation differences 3,182 (257)
(loss) / profit before income tax (1,323) 210
* In 2021, most of the change will be due to expected credit losses on the
cash balance at North Korea, which was formed in 2020.
December 31,2020 Entertainments Others Total
Adjusted EBITDA - 659 659
Depreciation and amortization - (423) (423)
Impairment charges - (3,829) (3,829)
Gains from disposal of non-current assets - 222 222
Finance income - 4,155 4,155
Finance expense - (681) (681)
Net foreign currencies translation differences - 107 107
Profit before income tax - 210 210
Assets per segment
The following table illustrates assets for each reportable segment as they are
regularly provided to the board of directors.
As of December 31,2021 As of December 31,2020
(In thousands of US$) Property and equipment Intangible assets Investment property Equity investments Total Property and equipment Intangible assets Investment property Equity investments Total
Cable - - - - - 60,094 2,383 - - 62,477
Entertainment 11,473 - - - 11,473 - - - - -
Investment property - - 13,165 - 13,165 - - 45,821 - 45,821
Other 2,296 - - 39,185 41,481 6,604 - - 39,110 45,714
Total 13,769 - 13,165 39,185 66,119 66,698 2,383 45,821 39,110 154,012
Capital expenditure
The table below illustrates the capital expenditure incurred by each segment
for the year ended December 31,2021 and the year ended December 31,2020:
(In thousands of US$) For the year ended For the year ended
December 31, 2021 December 31, 2020
Entertainment 7,513 3,989
Financial Service (in discontinued operation) - 2,351
Cable (in discontinued operation 14,940 15,782
Total 22,453 22,122
6. Revenue
(In thousands of US$) For the year ended For the year ended
December 31,2021 December 31,2020
(Restated)
Entertainment 1,784 -
Management fees - 4,590
Others - 297
Total 1,784 4,887
Disaggregation of revenue from contracts with customers.
The table below illustrates the Geographical, Service line and Timing of
revenue incurred by each segment for the year ended December 31, 2021, and
December 31, 2020:
Entertainment
(In thousands of US$) December 31,2021 December 31,2020
(Restated)
Primary geographical markets
Egypt 1,784 297
Lebanon - 4,590
Total primary geographical markets 1,784 4,887
Major service lines
Entertainment 1,784 297
Management fees - 4,590
Total major service Lines 1,784 4,887
Timing of revenue recognition
Services transferred at a point in time 1,784 297
Services transferred over time - 4,590
Total timing of revenue recognition 1,784 4,887
7. Purchases and services
(In thousands of US$) For the year ended For the year ended
December 31, 2021 December 31, 2020
(Restated)
Rental and leases 66 157
Maintenance costs 174 178
Consulting and professional services * 2,029 1,747
Purchases of goods and changes in inventories 770 125
Advertising and promotional services 457 275
Utilities and energy cost 52 63
Site expense 286 30
IT supplies and expense 70 117
Insurance expenses 22 37
Airfare expenses 2 34
Accommodation, meals and per diem 8 63
Bank and post office charges 103 109
Other service expenses 892 450
Total 4,931 3,385
*The fees for audits and other services carried out for OIH Group in 2021 by
KPMG Luxembourg and entities belonging to the KPMG network are shown below:
- Audit fees US$ 158 k .
-Tax Fees US$ 39 K .
8. Other expenses
(In thousands of US$) For the year ended For the year ended
December 31, 2021 December 31, 2020 (Restated)
Other taxes 95 124
Promotion and gifts - 332
Donation - 1,150
Brokerage fees 305 -
Other operating expenses 333 -
Total 733 1,606
9. Personnel costs
(In thousands of US$) For the year ended For the year ended
December 31,2021 December 31,2020
(Restated)
Wages and salaries 3,096 8,184
Contractual bonuses 524 193
Other benefits 66 1,033
Pension costs - defined contribution plan 177 1,177
Social security 315 392
Subscription and membership dues 61 227
other personal cost 0 36
Total 4,239 11,242
10. Depreciation and amortisation
(In thousands of US$) For the year ended For the year ended
December 31,2021 December 31,2020
(Restated)
Depreciation of tangible assets
Buildings 156 115
Commercial and other tangible assets 159 308
Depreciation of investment property
Buildings 22 -
Total 337 423
11. Net financing (costs)
(In thousands of US$) For the year ended For the year ended
December 31,2021 December 31,2020
(Restated)
Interest income 186 4,155
Finance income 186 4155
Interest expense on borrowings (834) (317)
Finance expense (834) (317)
Net foreign currencies translation differences 3,182 (257)
Net foreign currencies translation differences 3,182 (257)
Net financing (costs) 2,534 3,581
12. Equity accounted investees
Investment in equity accounted investees primarily relate to the investment in
telecommunication operator in North Korea (Cheo Technology Koryolink)
The following table provides a breakdown of equity accounted investees:
Company Country Ownership As of Ownership As of
December 31, 2021
December 31, 2020
Cheo Technology-Koryolink (12-1) DPRK 75 % 823,706 75 % 794,950
Accumulated impairment loss (784,520) (755,840)
Total investment in equity accounted investees 39,185 39,110
The group do not recognize any profits from the company due to the sanctions
and the probability of collecting such profits through dividends process.
Accordingly, the group impair any profit recognized from Koryolink and
maintain the original investment which represent the recoverable value form
the cash at the company
(12-1) Koryolink
The tables below set forth-summary financial information of the associate
company.
Summarised statement of financial position
(In thousands of US$) As of As of
December 31, 2021 December 31, 2020
Assets 894,283 2,203,178
Liabilities (97,847) (282,367)
Net assets 796,436 1,920,811
Summarised statement of income statement
(In thousands of US$) For the year ended December 31, 2021 For the year ended December 31, 2020
Revenues 375,273 402,877
Total expense (339,020) (174,736)
Profit for the period after tax 36,253 228,141
Share of profit of the associate company 27,190 171,106
The Group's investments in North Korea related primarily to the 75% voting
rights in the local telecom operator Koryolink. The accounting treatment has
been modified during period ended September 30, 2015, though recognizing it as
an investment in associates instead of investment in subsidiaries, as the
Group management believes that the existence of significant influence instead
of control. Thus, in light of the increase of the restrictions, financial and
operating difficulties facing Koryolink due to the international sanction
imposed by the international community including the United States of America,
the European Union and the United Nations. These sanctions have the effect of
restricting financial transactions and the import and export of goods and
services, including goods and services required to operate, maintain and
develop mobile networks. In addition to, the restrictions implemented on the
company that affect the ability of the associate company to transfer profits
to the parent (return of funds to its native) and the absence of a
free‐floating currency exchange market in North Korea, announced by the
Central Bank of North Korea, other than launching a competing local telecom
operator wholly owned by the North Korean Government.
On September 11, 2017, the United Nations Security Council issued a resolution
obliging member state of the United Nations to pass laws prohibiting joint
ventures and existing partnerships with the North Korean Republic unless
approval is obtained to continue such joint ventures.
At the present, the Group's management submitted an official request through
Ministry of the foreign affairs of the Government of the Arab Republic of
Egypt to be excluded from adhering to the said resolution.
On December 26, 2018, the request to the Security Council Committee
established to follow up the implementation of sanctions on North Korea was
approved, with the exception of Koryolink, to ban foreign investment in North
Korea and to allow Orascom Investment Holding to continue its activities in
North Korea. And consider the company as a telecommunications infrastructure
company offering a public service.
The following table presents the movement on the investment of Koryolink
during the year:
(In thousands of US$) December 31, 2021 December 31, 2020
Opening balance 39,110 38,352
Share of profit of equity accounted investee before impairment 27,190 171,106
Impairment loss (27,190) (171,106)
Foreign currency translation differences 75 758
Ending balance 39,185 39,110
As of December 31,2021 As of December 31, 2021
Share capital (before increase) Euro % Share capital (After increase) Euro %
Orascom investment holding 60,000,000 75% 60,000,000 75%
Post office company at North Korea 20,000,000 25% 20,000,000 25%
Total 80,000,000 100% 80,000,000 100%
13. Income tax expenses
(In thousands of US$) Note For the year ended December 31, 2021 For the year ended December 31, 2020
(Restated)
Current income tax 177 549
Deferred tax (18) 3,043 (37)
Total income tax expenses 3,220 512
14. Property and equipment including right of assets
Land and Buildings Cable's system and equipment Commercial and other tangible assets Right of use Assets under construction Total
IFRS 16
Cost 4,094 60,272 11,485 7,723 8,089 91,663
Accumulated depreciation and impairment (976) (16,862) (4,568) (2,564) - (24,970)
Net book value as of January 1, 2021 3,118 43,410 6,917 5,159 8,089 66,693
Additions * 35 2,739 4,682 3,866 11,516 22,838
Disposals - (39) (121) (341) (2,097) (2,598)
Depreciation (156) - (159) - - (315)
Depreciation included in discontinued operation (43) (2,987) (1,776) (3,137) - (7,943)
Foreign currency translation differences (17) (3,940) (1,607) 137 (426) (5,853)
Assets held for sale (271) (39,183) (9,593) (5,684) (4,322) (59,053)
Reclassifications - - 2,474 - (2,474) -
Net book value as of December 31, 2021 2,666 - 817 - 10,286 13,769
Cost 3,354 - 1,445 - 10,286 15,085
Accumulated depreciation and impairment (688) - (628) - - (1,316)
* This amount includes non-cash transactions totalling US$15 million.
(In thousands of US$) Land and Buildings Cable's system and equipment Commercial and other tangible assets Right of use Assets under construction Total
IFRS 16
Cost 11,853 61,080 12,900 7,060 3,392 96,285
Accumulated depreciation and impairment (1,311) (14,497) (5,959) (1,239) - (23,006)
Net book value as of January 1, 2020 10,542 46,583 6,941 5,821 3,392 73,279
Additions 364 1,176 4,078 3,199 5,402 14,219
Net disposals (130) - (1,151) - - (1,281)
Depreciation (115) - (308) - - (423
)Depreciation included in discontinued operation (181) (2,814) (2,007) (1,897) - (6,899)
Foreign currency translation differences 190 (1,547) 171 (174) (77) (1,437)
Change in scope (demerging effect) (7,552) - (1,157) (1,790) (261) (10,760)
Reclassifications - 12 353 - (365) 0
Net book value as of December 31, 2020 3,118 43,410 6,920 5,159 8,091 66,698
Cost 4,094 60,272 11,486 7,723 8,091 91,666
Accumulated depreciation and impairment (976) (16,862) (4,566) (2,564) - (24,968)
15. Intangible assets
(In thousands of US$) License Goodwill Right of ways (ROW) Other Total
Cost 2,304 957 1655 62 4,978
Accumulated amortization and impairment (1,883) (516) (196) - (2,595)
Net book value as of January 1, 2021 421 441 1,459 62 2,383
Additions 23 - 513 536
Amortization included in discontinued operation (121) - (118) - (239)
Reclassifications 87 - - (87) 0
Assets held for sale (380) (401) (1,730) (33) (2,544)
Foreign currency translation differences (30) (40) (124) 58 (136)
Net book value as of December 31, 2021 - - - - -
Cost 1,408 506 - - 1,914
Accumulated amortization and impairment (1,408) (506) - - (1,914)
(In thousands of US$) License Goodwill Right of ways (ROW) Customer base Trademark Other Total
Cost 2,147 18,682 755 4,894 1,556 148 28,182
Accumulated amortization and impairment (1,749) (506) (121) (982) (313) (1) (3,672)
Net book value as of January 1, 2020 398 18,176 634 3,912 1,243 147 24,510
Additions 76 - 1,039 - - 35 1,150
Amortization (118) - (78) - - - (196)
Amortization included in discontinued operation - - - (248) (79) - (327)
Change in the scope of consolidation - - (123) - - (37) (160)
Reclassifications - (17,979) - (3,739) (1,189) - (22,907)
Assets held for sale 77 - - - - (77) -
Foreign currency translation differences (12) 244 (13) 75 25 (6) 313
Net book value as of December 31, 2020 421 441 1,459 - - 62 2,383
Cost 2,304 957 1,655 - - 62 4,978
Accumulated amortization and impairment (1,883) (516) (196) - - - (2,595)
The following table provides an analysis of goodwill by segment reporting:
As of December 31, 2021 As of December 31, 2020
(In thousands of US$) Financial Services Cables Media& technology Total Financial Services Cables Media& technology Total
Opening balance
Cost - - 506 506 17,720 456 506 18,682
Accumulated impairment - - (506) (506) (506) (506)
- - - - 17,720 456 0 18,176
Change in scope due to demerging - - - - (17,979) - (17,979)
Assets held for sale - - - - - 0
Foreign currency translation differences - - - - 259 (15) - 244
Net book value of the ending balance - - - - 0 441 0 441
Cost - - 506 506 506 506
Accumulated impairment - - (506) (506) - - (506) (506)
16. Investment property
The investment property balance comprises the value of seven floors which are
owned by Victoire in Brazil. The investment property is carried at its
historical cost.
(In thousands of US$) As of As of
December 31, 2021 December 31, 2020
Cost 52,219 67,562
Accumulated depreciation and impairment (6,398) (6,815)
Net book value of opening balance 45,821 60,747
Addition * 13,187 -
Disposal (40,568) -
Depreciation (23) -
Depreciation included in discontinued operation (742) (1,097)
Foreign currency translation differences (4,510) (13,829)
Net book value of ending balance 13,165 45,821
Cost 13,187 52,219
Accumulated amortization and impairment (22) (6,398)
The fair value of seven floors, which are owned by Victoire in Brazil as
property investment on December 31, 2020, amounts to US$ 70 million (Level 3
Fair Value).
* According to the contract concluded with Bluestone Investment Company (the
seller) regarding the sale of the seven floors in Brazil during 2015 to
Orascom Investment Holding, which states a guarantee of obtaining a fixed
annual return at the end of the fourth year of the contract, in the event of
the company inability to rent the seven mentioned floors and achieve the
return mentioned in the contract the company has the right for the return
difference as per the contract, and the Company addressed the Bluestone
Investment Company in order to obtain the return difference in accordance with
the concluded contract.
In October 2021, the company received a letter from Bluestone Investment
Company stating that Bluestone agreed to give the company 1.5 floor
representative "6 offices" in the same building which correspondent to a
final settlement on the guaranteed revenue mentioned in the original contract
The fair value of investment property was determined by external, independent
property valuers, having appropriate recognized professional qualifications
and recent experience in the location and category of the property being
valued. There have been no changes to the fair value since that date. The fair
value measurement for all of the investment properties has been categorized as
a Level 3 fair value based on the inputs to the valuation technique used as
mentioned in below table and the valuer valued these floors at 13m, which is
considered the FV as at year end .
The group acquired real estate investments valued at approximately 13 million
US dollars. Of this amount, 12 million US dollars was recognized as a gain,
while 1 million US dollars represented transaction cost corresponds to the FV
of the 1.5 floors received from the guaranteed revenue from Bluestone.
Subsequently, in 2023, the Group disposed the remaining 1.5 floors equivalent
to 6 offices to a third party for a value of BRL 87,5 Million equivalent in
US$ 15,4 Million , as per the sale agreement executed.
Valuation technique and significant unobservable inputs
the following table shows the valuation technique used in measuring the fair
value of investment property, as well as the significant unobservable input
used.
Inter-relationship between key unobservable inputs and fair value measurement
Valuation technique Significant unobservable inputs
The analysis model used in the evaluation was the Capitalization of Income by *Real Growth in Contracts: (2.30% - 4.90%) *Expected real growth in contracts were higher (lower).
Discounted Cash Flow - Discounted Cash Flow (DCF) - which covers the
operational cycle of the enterprise, being able to define it as the *Expected Market Rental Growth: (0.50% - 1.0%). *Expected market rental growth were higher (lower).
exploration period of the enterprise. Projections are usually divided into 2
parts: *Occupancy Rate: 70% . *Occupancy rates were higher (lower).
A- Explicit projection period: admitting a future phase with greater temporal *Rent Free Period: 2 months. *Rent‑free periods were shorter (longer).
proximity and better predictability conditions, normally established in 10
years. *Discount Rate : 6.84%. *The rate at which the 10-year operating cash flow was discounted to form the
present value of the property reflects the External and Internal risk.
B- Residual Value: equivalent to the remaining useful life of the project. *Capitalization Rate: 6.36%. Therefore, we estimate a discount rate for this type of enterprise of 6.84%
This long-term future cash flow is replaced by a one-time equivalent value at
per year.
the end of the explicit projection period.
*We use the capitalization rate of 6.36% per year to form an opinion of the
property's residual market value in the 10th year of the analysis period
-Investment property revenue:
Leasing arrangement
A substantial part of the investment properties is leased to tenants under
long-term operating leases with rentals payable (monthly - in advance or in
arrears). Minimum lease payments receivable on leases of investment properties
are as follows:
(In thousands of US$) As of As of
December 31, 2021 December 31, 2020
less than one year - 4,681
One to two years 899
Two to three years 894 4,681
Four to five years 894 4,506
More than 5 years 894 6,532
17. Other financial assets
As of As of
December 31, 2021 December 31, 2020
(In thousands of US$) Non-current Current Total Non-current Current Total
Financial receivables at amortized cost -Level3 * - - - 1,373 4,486 5,859
Restricted cash at amortized cost-Level 3 (17-1) 3,391 - 3,391 3,762 12 3,774
Other receivables at amortized cost-Level 3 - - - 555 243 798
Total 3,391 - 3,391 5,690 4,741 10,431
(In thousands of US$) December 31, 2021 December 31, 2020
Expected credit loss percentage 100% 40%
Financial receivables 9,163 9,495
Expected credit loss during the year (*) (9,163) (3,636)
Financial receivables at amortized cost - 5,859
Current - 4,486
Non-current 1,373
(*) During September 2019 OIH sold the entire shares owned by the Group in
Riza Capital to an external party for a consideration of US$ 13,323 thousand.
The transaction was structured such that the purchaser pays the consideration
in six equal instalments starting from the date of sale and ending in February
2022. However, up to October 2022, the purchaser only paid the first two
instalments dated September 2019 and February 2020 with a total amount of US$
4,442 thousand and US$107 thousand of the third instalment, which was due in
August 2020. At the date of authorization of these consolidated financial
statements, no further instalment was paid by the purchaser Therefore, after
considering all facts and circumstances, the Group estimated an ECL of US$
4,581 on this asset. Dring 2021 there is an additional impairment with an
amount of US$ 5,527 as the following: -
As of December 31, 2021 As of December 31, 2020
(In thousands of US$)
Opening Balance 3,636 -
Formed 5,498 3,641
Foreign currency translation differences 29 (5)
Total 9,163 3,636
As of December 31, 2021 As of December 31, 2020
(In thousands of US$) Financial receivables Financial receivables
Not past due - 4,235
Past due 0-180 days - 1,404
Past due 180-365 days - 220
Past due more than 365 days - -
Total - 5,859
17-1 Restricted cash at amortized cost
As of December 31, 2021 As of December 31, 2020
(In thousands of US$) Non-current Current Total Non-current Current Total
Pledged deposits 201 - - 201 12 213
Cash on banks in North Korea 6,380 - 6,581 7,122 - 7,122
Expected credit loss* (3,190) - (3,190) (3,561) - -(3,561)
Total 3,391 - 3,391 3,762 12 3,774
Due to the sanctions imposed on north Korea , the group is not able to
repatriate the cash balance out of the country Accordingly, we have impaired
the cash balance as described below .
* Expected credit loss of other financial assets is represented in the
following:
(In thousands of US$) December 31, 2021 December 31, 2020
Expected loss ratio 50% 50%
Cash at bank in North Korea- non-current 6,380 7,122
Expected credit loss during the year (3,190) (3,561)
Net cash at bank in North Korea - non-current 3,190 3,561
During 2017, CHEO (Koryolink) the Company's subsidiary located at North Korea
declared and distributed dividends amounting to EUR 46.7 million. The
Company's share amounted to EUR 35 million, out of which EUR 29.2 million were
directly transferred to the Company from North Korea to its bank account in
Egypt. Therefore, as shown in Table 2 below, we will assume a 50% likelihood
that it will also be able to transfer the existing bank balance of EUR 5,63
million (cash balance in NK as of Dec 21); this implies a PD of 0% ("Scenario
1"). We will also assume that there is a likelihood that the Company will not
be able to transfer the money out of North Korea due to the sanctions and 50%
given that Management do not have any plans to utilize this cash balance
within the country, this implies a PD of 100% ("Scenario 2") that the
valuation is performed with Level 3 assumptions .
As of December 31, 2021 As of December 31, 2020
(In thousands of US$)
Opening Balance 3,561 -
Formed - 3,543
No longer needed (378) -
Foreign currency translation differences 7 18
Total 3,190 3,561
18. Deferred taxes
18-1 Recognized deferred tax assets and liabilities
Deferred income tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets and liabilities and when the
deferred income tax assets and liabilities relate to income taxes due to the
same tax authority.
(In thousands of US$) As of As of
December 31,2021 December 31, 2020
Deferred tax liabilities (4,812) (10,945)
Deferred tax assets - 471
Net position of the deferred tax (liabilities) (4,812) (10,474)
The movement in deferred tax liabilities is as follows:
(In thousands of US$) 2021 2020
As of January 1,2021 (10,474) (12,450)
(Charged) to the income statement (3,043) (37)
(Charged) to the income statement (discontinued Operation) 3,213 (575)
Change in scope due to demerging - 1,584
Liabilities held for sale 4,687 -
Foreign currency translation differences 805 1,004
As of December 31,2021 (4,812) (10,474)
A breakdown of the movement in deferred tax liabilities during 2021 and 2020,
is provided in the tables below:
Deferred tax liabilities Depreciation and amortization Unremitted earnings Forex Other Total
(In thousands of US$)
As of January 1, 2021 (9,196) (1,156) (434) 312 (10,474)
(Charged) /debating to the statement of profit or loss (116) (51) - (2,876) (3,043)
(Charged) to the income statement (discontinued Operations) 3,042 - - 171 3,213
Liabilities related to assets held for sale 5,131 - - (444) 4,687
Foreign currency translation differences 898 (93) 805
As of December 31, 2021 (241) (1,207) (434) (2,930) (4,812)
Deferred tax liabilities Depreciation and amortization Unremitted earnings Forex Other Total
(In thousands of US$)
As of January 1, 2020 (12,424) (1,831) (255) 2,060 (12,450)
(Charged) to the statement of profit or loss - (149) 112 - (37)
(Charged) to the income statement (discontinued Operations) (211) 269 8 (641) (575)
Change in scope due to the demerger 1,291 590 (297) - 1,584
Adjustment due to investment property 828 (1) (1) (826) -
Foreign currency translation differences 1,320 (34) (1) (281) 1,004
As of December 31, 2020 (9,196) (1,156) (434) 312 (10,474)
No deferred tax liability has been recognized in respect of temporary
differences associated with investments in subsidiaries, branches, and
associates, where the Group is in a position to control the timing of the
reversal of the temporary differences, and it is probable that such
differences will not reverse in the foreseeable future.
Should additional information arise in future periods resulting in differences
between the tax base and accounting base of recorded assets and liabilities in
the financial statements as of December 31, 2021, Management will reassess its
estimate in a way that might result in the recognition of deferred taxes
related to those assets and liabilities.
18-2 Unrecognized deferred tax assets
The following schedule illustrates the unrecognized deferred tax assets for
the group:
(In thousands of US$) As of As of
December 31,2021 December 31,2020
Carried forward income tax losses - 70
Unrealized forex losses 1,572 1,153
Total 1,572 1,223
Carried forward losses should be utilized within a period of 5-6 years at
maximum. The management of the Group followed a prudent approach and didn't
recognize a deferred tax asset for unused tax losses as of December 31, 2020,
and December 31, 2021, as the management does not expect sufficient taxable
results will be generated in the respective countries. The ability of the
Group to settle these tax losses against future taxable profits is not
impacted by not recording an asset.
Generally, the Group does not recognize deferred tax assets for temporary
differences related to accruals for provisions, due to uncertainties in
connection with the tax treatment of such expenses, as they might be
challenged by local tax authorities.
19. Trade receivables
(In thousands of US$) As of As of
December 31, 2021 December 31, 2020
Receivable due from government 18,571 31,791
Receivables due from telephone operators 23,773 23,572
Other trade receivables 1162 589
Allowance for doubtful receivables (ECL) (35,465) (35,530)
Total 8,041 20,422
The following table shows the movement in the allowance for doubtful
receivables:
(In thousands of US$) As of As of
December 31, 2021 December 31, 2020
Opening balance 35,530 35,939
Additions (allowances recognized as an expense) (305) (286)
No-longer required (including in discontinued operation) 590 (228)
Assets held for sale (617) -
Change in scope due to demerging process - (1,224)
Reclassification (235) 470
Foreign currency translation differences 502 859
Ending balance 35,465 35,530
The following table shows the ageing analysis of trade receivables as of
December 31, 2021, and 2020, net of the relevant allowance for doubtful
receivables:
As of December 31, 2021 As of December 31, 2021
(In thousands of US$) Gross Allowance Gross Allowance
Not past due 873 - 224 -
Past due 0-30 days 54 - 4,626 (2,430)
Past due 31-120 days - - 2,870 -
Past due 121 - 150 days - - 757 -
Past due more than 150 days 42,579 (35,465) 47,475 (33,100)
Trade receivables 43,506 (35,465) 55,952 (35,530)
The maximum exposure to credit risk at the reporting date is the carrying
value of the receivable. The Group does not hold any collateral as security
and the decrease mainly relating to reclassification of the TWA assets to be
presented as an asset held for sale.
20. Other assets
(In thousands of US$) As of December 31, 2021 As of December 31, 2020
Non-current Current Total Non-current Current Total
Prepaid expenses * - 144 144 14,790 2,448 17,238
Contract costs - 766 509 1,275
Advances to suppliers - 468 468 - 473 473
Receivables due from tax authority - 411 411 - 1,258 1,258
Assets from current tax - 90 90 - 3,267 3,267
Other non-trade assets 255 1,098 1,353 255 1,414 1,669
Allowance for doubtful of current assets - (390) (390) - (194) (194)
Total 255 1,821 2,076 15,811 9,175 24,986
*Prepaid cost mainly from TWA related to amounts paid to the telecommunication
authority
As of As of
December 31, 2021 December 31, 2020
(In thousands of US$)
Opening Balance 194 194
Formed -Current 196 -
Total 390 194
21. Cash and cash equivalents
(In thousands of US$) As of As of
December 31, 2021 December 31, 2020
Bank accounts and gross deposits * 71,028 21,791
Cash on hand 21 74
71,049 21,865
Impairment cash and equivalents (1,827) -
Total 69,222 21,865
* Bank account and deposit as of December 31, 2021, includes an amount of US$
1.3 Million (December 31, 2020, includes an amount of US$ 4.8 Million)
represent cash held in Lebanon bank accounts, in accordance with the
restrictions imposed by the Lebanese government on local banks in Lebanon and
restrictions on cash transfers outside the country.
Total ECLs calculation as of December 31, 2021, amounted to US$1,827 thousand
as presented below:
(In thousands of US$) As of As of
December 31, 2021 December 31, 2020
Opening Balance - -
Additional impairment 1,827 -
Foreign currency translation differences - -
Total 1,827 -
22. Equity attributable to the owners of the Company
Share capital
On November 29, 2011, the Company was incorporated with an authorised and
issued share capital amounting to EGP 2,203,190,060 million (equivalent to US$
366,148 thousand at date of transactions) distributed over 5,245,690,620
shares, each with a nominal value of EGP 0.42.
According to the decision of the Extraordinary General Assembly of Orascom
Investment Holding dated
October 19, 2020, and the approval of the General Investment Authority dated
November 17, 2020, on demerging the company (refer to note no. 33), Orascom
Investment Holding's share of the issued capital was EGP 577,025,968
(equivalent to US$ 95,890 thousand) divided on 5,245,690,620 shares with a
nominal value of EGP 0.11 per share and the authorized amount of shares became
EGP 2.885 billion. (Equivalent to US$ 95,890 thousand)
The following table lists the largest shareholders in the Company, in addition
to the other remaining shares as of December 31, 2021:
Shareholder Ordinary shares The percentage of ordinary shares that have the voting right
Bank of New York Mellon 2,846,499,353 54.264%
Other 2,399,191,267 45.736%
Total available common shares 5,245,690,620 100%
Nature and purpose of reserves
i. Translation reserve
The translation reserve comprises all foreign currency differences arising
from the translation of the financial statements of foreign operations. The
translation reserve is a component of equity that reflects the cumulative
exchange differences arising from the translation of foreign currency assets
and liabilities of our foreign operations. These differences are recognized in
the translation reserve at the balance sheet date using the closing exchange
rate. The translation reserve is not recognized in profit or loss but is
presented as a separate component of equity. Any exchange differences arising
on the disposal of a foreign operation are recognized in profit or loss.
ii. Legal reserve
According to the company's articles of association, 5% of the net profits are
set aside to form the legal reserve, and these amounts may be stopped when the
balance of this reserve reaches 50% of the value of the issued capital, and
the retainer process is resumed when the reserve balance falls below this
limit, and this reserve can be used to cover losses and can also be used to
increase the company's capital, subject to the approval of the ordinary
general assembly of the company's shareholders. Non-distributable earnings
Retained earnings include an amount of US$ 2.49 million as of December 31,2021
compared to US$ 1.88 million as of December 31,2020, which is not available
for distribution representing a legal and special reserves at the subsidiaries
level.
Dividends declared to non-controlling interest
On November 2, 2020, TWA - subsidiary declared dividends total of US$ 1.8
represent US$ 0.1444 per share, where the NCI's share was US$ 877 thousand,
and the amount paid during the year was US$ 697 thousands.
No dividend was declared in 2021
23. Borrowings
As of December 31, 2021 As of December 31, 2020
(In thousands of US$) Current Non-current Total Current Non-current Total
Bank loans 17 10,173 10,190 9,673 18,330 28,003
Finance lease liability - - - 1,474 3,819 5,293
Sale and lease back - - - 10 5,167 5,177
Other borrowings - - - 559 490 1,049
Total 17 10,173 10,190 11,716 27,806 39,522
The following table shows the ageing of borrowings:
(In thousands of US$) Due within one year Due between one and five years Due beyond five years Total
Bank loans 17 6,782 3,391 10,190
As of December 31, 2021 17 6,782 3,391 10,190
(In thousands of US$) Due within one year Due between one and five years Due beyond five years Total
Bank loans 9,673 15,905 2,425 28,003
Finance lease liability 1,474 3,269 550 5,293
Sale and lease back * 10 2,202 2,965 5,177
Other borrowings 559 490 - 1,049
As of December 31, 2020 11,716 21,866 5,940 39,522
* Stating that even though payment was not less than 1 year however management
decided to pay early an amount of US$ 5,226 , which explains the
difference with the cashflow statement .
The following table provides the breakdown of total borrowings by currency of
issue:
(In thousands of US$) US$ Egyptian Pound Pakistan Rupee Total
As of December 31, 2021 - 10,190 -- 10,190
As of December 31, 2020 1,051 7,874 30,597 39,522
The following table illustrates the movements in the borrowings during the
year
(In thousands of US$) As of As of
December 31, 2021 December 31, 2020
Balance at the beginning of the year 39,522 71,492
of which:
Current borrowings 11,716 47,485
Non-current borrowings 27,806 24,007
Payments of loans (5,226) (22,725)
Payments of loans from discontinued operations (12,566) (567)
Proceeds from loans 6,957 9,443
Proceeds from loans from discontinued operations 2,460 13,963
Transferred to Liabilities related to assets held for sale (22,833) -
Interest paid (834) (3,494)
Change in scope due to demerging (note 33) * - (32,482)
Finance lease liabilities additions - 3,199
Foreign exchange translation differences 2,710 693
Balance at the end of the year 10,190 39,522
of which:
Current borrowings 17 11,716
Non-current borrowings 10,173 27,806
* Change in scope due to demerging represents the borrowings balances related
to Beltone Financial Holding which was transferred to the new company. Orascom
Financial Holding S.A.E following the demerger of the company in 2020.
Description Company Book Value Book Value Currency Nominal amount in currency Maturity Nominal interest rate Security Assets secured
US$, 000
2021 2020
Foreign Bank Loan OIH Loans - - US$ 33,413 21-Oct-24 LIBOR+1.25% Secured Time deposit
Local bank loan OIH Loans - 16 EGP 4,738 20-Jun-24 Bank certificate rate of return + 2% min. 12% Secured Time deposit
Local bank loan OIH Loans - 78 EGP 4,710 22-Jun-24 Bank certificate rate of return + 1.5% min. 11% Secured Time deposit
Finance lease liabilities-Pak Oman TWA Loans - 210 PKR 33,394 23-Dec-24 6M KIBOR+2% Secured Against future current assets and fixed assets (excluding land and buildings)
Long term syndicated finance facility-MCB TWA Loans - 4,216 PKR 666,665 23-Apr-24 6M KIBOR+2.50% Secured
Long term syndicated finance facility-Pak Oman Investment Company TWA Loans - 2,801 PKR 450,000 23-May-24 6M KIBOR + 2.50% Secured
Long term loan finance facility-Habib Bank Limited TWA Loans - 2,490 PKR 391,665 23-Apr-24 6M KIBOR + 1.50% Secured
Long term loan finance facility-MBC Bank TWA Loans - 11,316 PKR 1,778,000 23-Oct-24 6M KIBOR + 1.25% Secured
Long term loan finance facility-Pak Oman Investment TWA Loans - 2550 PKR 400,000 26-Dec-24 3M KIBOR + 1.9% Secured
Current facility from Meezan Bank Ltd TWA Loans - 1,685 PKR 264,751 21-Aug-24 3M KIBOR + 1.45% Secured
Credit Facilities Belton holding - - EGP 440,000 Current Corridor+,75%:2%:8%
Credit Facilities Orascom Pyramids Entertainment (OPE) 10,190 2641 EGP 230,000 28-Oct-24 1% over corridor Unsecured
Total bank loans as of December 31, 10,190 28,003
Bank Loans
The following table shows a breakdown of bank loans by financial
institution:
Loans for Trans World Associate:-
* The following loan related to TWA for FY 2020 and in 2021 it was included in
liabilities held for sale as the operation was sold in 2022.
Bank loans include loans obtained from the shareholders of Trans World
Associate private by an amount of US$ 1 Million of which US$ 0.5 Million due
within one year and US$ 0.5 Million due after more than one year with an
interest rate of 3M Libor +1 per annum.
Bank loans also include loans obtained from banks amounted to US$ 25.2 Million
from which US$ 9.6 Million due within one year and US$ 15.6 Million due after
more than one year. These bank loans were obtained by Trans World Associate
Private during 2020 .
Loan for the purpose of financing the acquisition of Victoire Group
On September 28, 2015 the company borrowed non-current loan from a foreign
bank by a maximum amount of US$ 35 Million for the sole purpose of financing
50% of the purchase price of seven floors in the "Patio Malzoni Faria Lima
Tower A" in Sao Paolo, Brazil through the direct or indirect acquisition of
the shares of the following companies incorporated in Brazil: Victoire 2,
Victoire 9, Victoire 11, Victoire 13, Victoire 17, Victoire 18, and Victoire
19.
In January 2020, the Company made an early settlement for the rest of the loan
granted to finance the acquisition of Victoire amounted to US$ 23.4 million
(equivalent to EGP 313 million) and that resulted in a gain of US$ 3.9 million
recorded in finance income in the consolidated statement of profit or loss and
other comperhensive income. during 2020.
Loan (Orascom Pyramids Entertainment (OPE)
On 30 September 2020, a long-term loan contract was signed between the Bank of
the Arab International Banking Company and Orascom Pyramids for Entertainment
Projects (LLC), provided that the Bank of the Arab International Banking
Company grants the company financing in the form of a long-term loan amounting
to EGP 230 million equivalent US$ 14,65 million. This is for the purpose of
contributing to the financing of the remaining part of the investment costs of
the project to develop and provide services in the visit area of Giza
Pyramids and the adjacent and associated areas according to the usufruct
licensing contract dated December 13, 2018, concluded between the Supreme
Council of Antiquities and Orascom Investment Holding Company, as follows:and
associated areas according to the Orascom Investment Holding dated December
13, 2018, concluded between the Supreme Council of Antiquities and Orascom
Investment Holding Company, as follows:usufruct licensing contract dated
December 13, 2018, concluded between the Supreme Council of Antiquities and -
An amount of EGP 80 million equivalent US$ 5,1 million for the civil works for
the restaurant complex and the connection of utilities.
- An amount of EGP 52 million equivalent US$ 3,3 million for the
infrastructure works for the information network information systems and the
accounting system for the project.
- An amount of EGP 90 million equivalent US$ 5,7 million for the civil works,
renovations and improvements to the visitors' building, the VIP building "the
current student building", the site of the visit, the organization of the area
for the stables "horses - camels - karts" and for the electric vans, the
charging station and its maintenance.
- An amount of EGP 8 million equivalent US$ ,51 million for the field work of
The Nile Pyramids Lounge.
Current borrowing - Local bank (Orascom Investment Holding)
A credit facility contract in the form of a medium-term loan to finance the
purchase of assets related to the company was signed with an Egyptian bank on
July 27, 2015, according to which a facility of EGP 5 million is available for
a period of sixty-seven months ending on February 27, 2021.
On August 9, 2015, an addendum to the previously mentioned financing contract
was signed with an increase of EGP 600,000.Withdrawal period: It is scheduled
for six months starting from the date of signing this contract and ending on
January 23, 2016.
Repayment period: the company is obligated to pay to the bank's order each
sub-loan to be used within the limits of the credit facility amount in sixty
monthly instalments with equal value.
Interest and payment periods: A return of 2% per annum above the rate of
return established on the certificates with the bank, and the return is due to
be paid every month, so that the applicable return in any case during the term
of this contract and until it is fully paid out of the original returns
commissions and expenses is not less than 12%.
Non-current and current borrowing - Local bank (Orascom Investment Holding)
On January 27, 2016, a credit facility contract was signed in the form of a
medium-term loan to finance the purchase of assets related to the company with
an Egyptian bank, according to which a facility of EGP 2 million is provided
for a period of sixty-seven months ending on August 26, 2021.
Withdrawal period: It is scheduled for six months starting from the date of
signing this contract and ending on July 27, 2016.Repayment period: the
company is obligated to pay to the bank's order each sub-loan to be used
within the limits of the credit facility amount in sixty monthly instalments
of equal value.
On July 21, 2016, an addendum to the previously mentioned financing contract
was signed with an increase of EGP 3 million.Withdrawal period: The withdrawal
period for the previously mentioned loan has been extended for another six
months to end on January 26, 2017, instead of July 27, 2016.
Interest and payment periods: A return of 1.5% per annum above the rate of
return established on the certificates with the bank, and the return is due to
be paid every month, so that the applicable return in any case during the term
of this contract and until it is fully paid out of the origin returns
commissions and expenses is not less than 11% .
Finance lease liabilities
The following table the amount of finance lease liabilities as of December 31,
2021:
Sale and leaseback (OIH)
During 2020, the company sold its headquarters located in 2005A south Nile
city tower with value of EGP 91 Million (equivalent to US$ 5.8 Million) to
Beltone Financial 'Leasing' and Global Corp. for financial service for
purposes to lease it back, the lessor agree to lease it back to the company
for period of 7 years started from December 25, 2020 till September 25, 2027
with total rental value of EGP 142.5 Million (equivalent to US$ 9 Million).
The lessor deducts down payment from total rents with amount of US$ 0.6, the
rent will be paid for Beltone and Global Corp as below:
Lessor Total due rent equivalent to US$, 000 Percentage
Beltone Financial leasing 2,803 30.86 %
Global Corp. for financial service 6,280 69.14 %
The lessee has the right to purchase the according to the below conditions:
- Purchasing the assets with value of one Egyptian pound after paying all
the due amount under this contract.
- Early settlement of rent by paying additional 3% from unpaid rent till the
end of the contract.
Book value Currency Maturity Nominal interest rate Security Assets secured
5,138 EGP September 2027 12% Secured Company's premises
On November 4, 2021, the company made an accelerated payment of the entire
balance of the financial lease in addition to the accrued interests related to
it, with a total amount of US$ 5,8 million, which was related to mortgaging
the asset owned by the company in favor of Beltone Financial Leasing Company
and Global Corp for Financial Services, where the company implemented the
right of expedited payment for the total amount referred above, and the legal
procedures for releasing the mortgage on the asset are being completed.
Other Borrowings
Other borrowings mainly include loans from non-controlling shareholders in
subsidiaries.
The following table shows a breakdown of other borrowings by financial
institution:
Description Company Book Value in US$, 000 Currency Nominal in PKR, 000 Maturity Nominal interest rate Security
Total other borrowings ad of December 31, 2021 - - - - - -
Description Company Book Value in US$, 000 Currency Nominal in PKR, 000 Maturity Nominal interest rate Security
Long term loan from sponsor's (Orastar) TWA Loans 702 US$ 112,161 Dec-22 3M LIBOR+1% Unsecured
Long term loan from sponsor's (Dr. Omar Zawawi) TWA Loans 235 US$ 36,748 Dec-22 3M LIBOR+1% Unsecured
Short term loan-2 from sponsor's (Dr. Omar Zawawi) TWA Loans 112 US$ 17,944 Dec-20 3M LIBOR+1% Unsecured
Total other borrowings ad of December 31, 2020 1,049
24. Trade payables and other liabilities
As of December 31, 2021 As of December 31, 2020
(In thousands of US$) Current Non-current Total Current Non-current Total
Trade payables
Capital expenditure payables - - 4,876 - 4,876
Trade payables due to suppliers 11,026 - 11,026 19,566 - 19,566
Customers credit balance financial sector 136 - 136 - - -
Trade payables to Telephone operator - 5,112 - 5,112
Other trade payables 459 459 340 - 340
Total 11,621 - 11,621 29,894 - 29,894
Other liabilities
Prepaid traffic and deferred income 4 - 4 719 893 1,612
Contract liabilities - 179 179 332 6,890 7,222
Due to local authorities 17 - 17 5,413 - 5,413
Personnel payables 2,925 - 2,925 3,781 - 3,781
Dividends payable - - - 181 181
Subscriber deposits 23 - 23 37 - 37
Other credit balances * 9,089 - 9,089 12,800 - 12,800
Total other liabilities 12,058 179 12,237 23,263 7,783 31,046
Total trade payables and other liabilities 23,679 179 23,858 53,157 7,783 60,940
* The other credit balance includes the balance of employee benefits where OIH
by virtue of the Management Agreement signed with the Ministry of
Telecommunications manages MIC1 SAL on behalf of the republic of Lebanon owner
of both mobile network operators. Orascom Telecom Lebanon SAL (OTL) is created
to manage the personnel of MIC, as employer, yet all personnel costs are
charged to and reimbursed by the Lebanese Government as per the term of the
management agreement. The amount which is included in the other credit
balances - current as of December 31, 2021, is US$ 989 thousand (US$ 2,357
thousand) and regarding to the remaining amount of other credit balance is
comprised by accrued bonuses and other payable towards governments by US$ 5,4
thousand and US$ 2,7 thousand respectively.
25. Provisions
(In thousands of US$) As of December 31, 2021 As of December 31, 2020
Opening balance 10,423 29,862
Additions 1,385 3,581
Additions (included in discontinued operations) - 533
Reversed (no-longer required) - (15,586)
Foreign currency translation differences 22 275
Change in scope due to the demerger - (3,395)
Reclassifications - (470)
Used during the year (61) (4,377)
Ending balance 11,769 10,423
Provisions are related to expected claims resulting from the Group companies'
ordinary course of business. The required information about these provisions
were not disclosed, because the management of the Group believes that doing
so, will strongly affect the final settlement of these provisions for claims.
26. (Losses) / earnings per share
Basic and diluted
Basic (losses) / earnings per share is calculated by dividing the profit
attributable to equity holders of the Company by the weighted average number
of ordinary shares outstanding during the year. For the purposes of the
(losses) / earnings per share calculation, it has been assumed that the number
of issued shares at the date of incorporation (5,245,690 thousand) had been
outstanding during the year.
Diluted (losses) / earnings per share is calculated by adjusting the weighted
average number of ordinary shares outstanding to assume conversion of all
dilutive potential ordinary shares. During the period covered by the report,
the Company did not have any dilutive potential ordinary shares and as such
diluted and basic (losses) / earnings per share from continuing operations and
from discontinued operations are equal.
26-1 (Losses) per share from continuing operation - Basic and diluted (in US$)
(In thousands of US$) For the year ended For the year ended
December 31, 2021 December 31, 2020
Restated
(Loss) /gain attributable to equity holders of the Company from continuing (3,729) 481
operations (in thousands of US$)
Weighted average number of shares (in thousands of shares) 5,245,691 5,245,691
(Losses) / gain per share - basic and diluted (in US$) (0.0007) 0.00009
26-2 (Losses) / earnings per share from discontinuing operation - Basic and
diluted (in US$)
For the year ended For the year ended
December 31, 2021 December 31, 2020
Restated
Earnings / (Losses) attributable to equity holders of the Company from 18,708 (496)
discontinuing operations (in thousands of US$)
Weighted average number of shares (In thousands of shares) 5,245,691 5,245,691
Earnings /(Losses) per share - basic and diluted (in US$) 0.0036 (0.00009)
27. Assets and liabilities held for sale and discontinued operations
27-A Assets and liabilities held for sale
On April 27, 2021, the company's board of directors approved the sale of all
the shares amounted to 51% owned by the company in Trans World Associates, to
Orastar Limited. Accordingly, the assets and liabilities of Trans World
Associates (Private) Ltd. have been reclassified into assets held for sale and
liabilities related to assets held for sale, and the sale process has been
completed in Jan after 2022 The assets and liabilities held for sale are as
follows:
Assets held for sale
As of December 31, 2021 As of December 31, 2020
(In thousands of US$)
Fixed assets 59,053 60,094
Intangible assets 2,543 2,383
Other assets 13,326 11,677
Inventory 964 775
Accounts receivables 13,328 11,060
Debtors and other debit balances 9,356 7,895
Cash and cash equivalent. 2,713 5,875
Total Assets held for sale 101,284 99,759
Liabilities associated with assets held for sale -
Financial liability 22,833 31,648
Other liability 11,185 7,783
Deferred tax 18,707 4,972
Creditors and other credit balance 5,133 20,054
The proceeds from the sale of TWA * 2,999 -
Total liabilities associated with assets held for sale 60,858 64,457
* Obligations related to assets held for sale are the amount collected from
the company's sale account for investments in one of its subsidiaries (Trans
World Associates (Private) Limited - Pakistan) equivalent to
3 million US dollars and within January 2022 the company has completed the
sale process, and the procedures for transferring the ownership of the shares
are being completed.
27-B Discontinued operations
Discontinued operations represent as following:
(In thousands of US$) For the year ended December 31, 2021 For the year ended December 31, 2020
Net results of discontinued operations from the disposal of TWA (27-B-1) 8,442 5.252
Discontinuing operations resulting from disposals of floors in Brazil (27-B-2) 15,298 (2,746)
Discontinued operation from Beltone 27-B-3 - (7,304)
Discontinued operation from Contact Financial Holding (formerly, Sarwa Capital - 5,820
Financial Holding) 27-B-5
(Loss) from discontinued operation (net of income tax) 23,740 1,022
(27-B-1) Discontinued operations result from TWA:
During 2021 the Company has announced the sale of all shares of TWA, Orascom
Investment Holding owns 51% of total TWA and the sale transaction is completed
on 21 January 2022 and the share of Orascom Investment Holding amounted about
US$ 35.5 million and the shares ownership has been transferred on that date
mentioned above.
it is worth to be mentioned during the year 2023, the final selling price has
been agreed to be around 35 million US$ and according to this adjustment,
Orascom Investment Holding settled around US$ 500 thousands as adjustments to
the transaction of subsidiary's selling
(In thousands of US$) December 31, 2021 December 31, 2020
Operating revenue 52,703 42,830
Operating cost (40,916) (35,023)
Profit for the year before tax 11,787 7,807
Income Tax (3,346) (2,555)
Net profit for the year 8,442 5,252
27-B-2 Discontinued operations result from Disposal of investment properties
in Brazil:
During the month of October 2021, Orascom Investment Holding Company sold the
floors owned by it in Brazil through one of its subsidiaries, Victoire BV
Holding Company, for a total amount of 79 million dollars. The contract
stipulates the guarantee of Orascom Investment Holding Company . "For the
seller to obtain a fixed annual return for a period of 24 months from the
date of selling the above-mentioned floors, with a total amount of 847
thousand US$, whereby Orascom Investment Holding Company will transfer the
difference to the return to the seller in the event that the fixed return
stipulated in the contract is not reached, The company has agreed with the
seller to open an escrow account for the full amount previously mentioned. The
sales contract also stipulates a guarantee for the payment of any amounts
resulting from cases brought due to real estate taxes on floors, which are
estimated at a total value of 866 thousand US$.
The following is the company's share of the net profit related to the
exclusion of floors in Brazil for the fiscal year ending in:
(In thousands of US$) December 31, 2021 December 31, 2020
Operating revenues 2,590 3,906
Depreciation (742) (1,097)
Gain on sale of investment property* 19,176 -
Provisions (201) -
Other Income 277 -
Other operating expenses (2,826) (4,636)
Net finance cost 6 212
The loss of the year before tax 18,278 (1,614)
income tax (2,981) (1,132)
Net Income of the year 15,298 (2,746)
* This gain related to sale investment property of Brazilin tower during year
2021 as motioned in note 16.
27-B-3 Discontinued operations from Beltone Group
At October 2020, the extraordinary general assembly meeting agreed with
majority voting for demerging the company according to horizontal approach
with its book value into Orascom Investment Holding OIH (demerging company)
and Orascom Financial Holding OFH (demerged company) which had been
established in December 2020 (note 33).Demerging project keeps all assets and
liabilities under OIH except for Beltone investment (subsidiary company) and
Sarwa Capital (associate company) (note 27-B-5)to be moved under OFH,.
Accordingly, statement of profit or loss had been represented for Beltone
group as discontinued operations as it was done by cost without gain/loss.
Beltone (loss) for the year presented as following:
(In thousands of US$) December 31, 2021 December 31, 2020
Operating revenue - 35,907
Other revenue - 133
Total revenues - 36,040
Personnel costs - (15,215)
Brokerage commissions - (9,087)
Depreciation - (848)
Amortization - (327)
Other expenses - (11,171)
Losses from Selling Auerbach Grayson - (5,536)
Net foreign currencies translation differences - (3)
Net (loss) before income tax - (6,147)
Income tax expense - (1,157)
Net (loss) for the year - (7,304)
Attributable to:
Owners of the company - (5,445)
Non-controlling interests - (1,859)
27-B-4 Discontinued operations from Orascom Investment Holding
Discontinued operation from OIH related to foreign currency exchange due to
translation of foreign currencies of intercompany balances between Orascom
Investment Holding and Beltone which deconsolidated during 2020 according to
demerging project as discussed before.
27-B-5 Discontinued operations from Contact Financial Holding (formerly Sarwa
Capital Financial Holding)
During October 2020, the extraordinary general assembly meeting agreed with
majority voting for demerging the Company according to horizontal approach
with its book value into Orascom Investment Holding OIH (demerging company)
and Orascom Financial Holding "OFH" (demerged company) which had been
established in December 2020. Demerging project keeps all assets and
liabilities under OIH except for Beltone investment (subsidiary company) and
Contact Financial Holding (formerly Sarwa Capital) (Equity accounted investee)
which was moved to OFH; accordingly, statement of profit or loss had been
represented for Contact Financial Holding group as discontinued operations.
The below table shown share of profit from Contact Financial Holding:
(In thousands of US$) December 31,2021 December 31,2020
Group share of profit - 5,900
Deferred tax - (80)
Net share of profit for the year - 5,820
27-B-6 The below table shown cash flow for discontinued operation (TWA and
INCA Group): -
In thousands of US$)) December 31, 2021
Gain for the year before tax 30,074
Adjustments for :
Depreciation 7,891
Depreciation Investment property 743
Amortization 239
Amortization of contract liability (1,408)
Amortization of advance from customer (1,436)
Amortization of long-term prepayments 2,088
Amortization of contract cost 744
Gain on sale of investment property (19,176)
Gain on sale of property, plant and equipment - net (29)
Gain on termination of lease (63)
Impairment of financial assets 590
Changes in provision 280
Exchange loss - net 359
Interest income (155)
Finance Cost 4,066
Stock- in-trade and other inventory (280)
Depreciation 598
receivables, and other assets (236)
Trade payables, accrued and other liabilities (1,244)
Cash generated from operating activities 23,645
Increase in long term prepayments and deposits (671)
Increase in contract cost (1,555)
Increase in contract liability 184
Increase in advance from customers against services 1,595
Taxes paid (5,939)
Interest collected 165
Intercompany amounts (920)
Net cash generated from operating activities 16,504
Cash flows from investing activities: -
Capital expenditure (6,781)
Purchase of intangible assets (932)
Advance for capital expended (382)
Proceeds from disposal of property, plant and equipment 173
cash proceed from sale process 82,100
Net cash used in investing activities 74,178
Cash from financing activities
Proceeds from long term loan 2,460
Repayment of long-term loan (7,476)
Repayment of long-term loan from sponsors (980)
Repayment of short-term loan from sponsors (107)
Proceeds repayment of short-term loan (876)
Finance cost paid (2,209)
Repayment of lease liability (4,082)
Net cash used in financing activities (13,270)
Net increase in cash and cash equivalents 77,412
28. Subsidiaries
Represent non-wholly owned subsidiaries with material non-controlling interest
(TWA)
Company Country Percentage of non-controlling ownership Value of non-controlling ownership
(In thousands of US$) 2021 2020 2021 2020
Trans World Associate (TWA) Pakistan 49% 49% 18,710 18,769
Trans World Associates (Pvt) Ltd.
(In thousands of US$) As of December 31,
2021 2020
Current assets 26,163 26,521
Current liabilities (33,928) (32,078)
Total current net assets (7,765) (5,557)
Non-current assets * 74,720 78,063
Non-current liabilities (23,931) (33,747)
Total non-curent net assets 50,789 44,316
Net assets 43,024 38,759
NCI balance on the level of TWA 35 105
Net assets after adding NCI balance on OIH level 43,059 38,864
NCI balance before adjustments 21,099 19,043
NCI balance on the level of TWA (35) (105)
NCI balance before consolidation adjustments 18,938 18,938
Consolidation adjustments on NCI balance (228) (169)
Ending NCI balance 18,710 18,769
* Differences with the balance sheet amounting of US$ 400,000 relating to
goodwill arising at the consolidation level .
All subsidiary undertakings are included in the consolidation. The proportion
of the voting rights in the subsidiary undertakings held directly by the
Company do not differ from the proportion of ordinary shares held. The Company
does not have any shareholdings in preference share of subsidiaries included
in the Group.
Summarised financial information of non-wholly owned subsidiaries with
material non-controlling interests are represented in the following:
Summarised statement of financial position:
Summarised statement of consolidated profit or loss and other comprehensive
income:
Trans World Associates (Pvt) Ltd.
For the year ended December 31, 2021 For the year ended December 31, 2020,
(In thousands of US$)
Revenue 52,697 42,815
Profit before income tax 11,788 7,807
Income tax expense (3,345) (2,555)
Post tax profit (loss) from continuing operations 8,442 5,252
Loss from discontinued operation - -
Other comprehensive (loss) - (1,257)
Total comprehensive income 8,442 3,995
Total comprehensive income allocated to NCI 2,005 2,005
29. Commitments
The commitments as of December 31, 2021, and December 31, 2020, are provided
in the table below:
(In thousands of US$) As of As of
December31,2021 December31,2020
Purchase of property and equipment 4,303 3,791
Others 1,788 2,455
Total 6,091 6,246
30. Related party transactions and balances
Transactions with, associates, affiliate, and other related parties with the
Group throughout the year are not considered atypical or unusual, as they fall
within the Group's normal course of business.
The main related party transactions and balances resulted from these
transactions are summarised as follows:
Year ended December 31, 2021 Year ended December 31, 2020
(In thousands of US$)
Selling of services and goods Investing expenditure Selling of services and goods Investing expenditure
OIH
CHEO Technology JV - associate 150 - 233 -
Others
Orastar - shareholder of a subsidiary LTD - - - (29)
Dr Omar Zawawy - shareholder of a subsidiary - - - (7)
Orascom Financial Holding 508 - - -
As of As of
(In thousands of US$) December 31, 2021, December 31, 2020,
Receivables Payables Receivables Payables
Orastar - shareholder of a subsidiary LTD 21 - - (702)
Omar Zawawy - shareholder of a subsidiary (21) - - 348
CHEO Technology JV - associate * - 8,335 17,753 8,956
OFH - formed due to the demerger - affiliate - - - 6,135
* Balances receivables from CHEO Technology JV are fully impaired.
Furthermore, the Group didn't offset balances receivables against the payables
relating to CHEO, due to the Group not intending to settle the recognized
amounts on a net basis or to realize the asset should be settle the liability
simultaneously.
Key management compensation
Key management includes executive and non-executive directors, the chief
financial officer and other managing directors considered key personnel.
The compensation paid or payable to key management for employee services
amounted to US$ ,264 thousand and US$ 1,617thousand, respectively for the
years ended December 31, 2021, and December 31, 2020.
31. Contingent assets and liabilities
The contingent liabilities, are represented in guarantees issued by the
holding company and related to the activities of its subsidiaries, as follows:
Orascom Pyramids for Entertainment Projects
- There are letters of guaranteed equivalent to US$ 810 thousand in favour of
the Bank of the International Arab Banking Company.
Orascom Investment Holding Company
- There is letter of credit equivalent to US$ 2,660 thousand in favour of
the National Bank.
Transworld Associates (Subsidiary)
- Bank guarantee issued in favour of Higher Education Commission (HEC)
amounting to Rs. 5,800,000 (equivalent to US$ 36K) valid till December 31,
2021.
- Bank guarantee issued in favour of Inbox Business Technologies (Pvt) Ltd
amounting to Rs. 54,210,000 (equivalent to US$ 339K) valid till May 9, 2021
- Bank guarantee issued in favour of Infinite Links (Pvt) Ltd amounting to
Rs. 10,000,000 (equivalent to US$ 63K) valid till January 7, 2021.
- Letter of credit issued in favour of EZY Infotech ME FZE amounting to US$
239 K for purchase of telecommunication equipment.
- Letter of credit issued in favour of Subcom LLC amounting to US$ 2 K.
-
-
32. . Representation of comparative figures relating to the discontinued
operations
The following schedule summarize the Representation of comparative figures of
the consolidated profit or loss for the year ended December 31, 2020, to be
consistent with current year classifications, Twa and Victoire were
discontinued during the year however OTL was reclassified from discontinued in
2020 to continued operation in 2021due to the current circumstances and the
absence of a definitive liquidation plan or timeline, we have determined that
it is appropriate to reclassify OTL - Lebanon as a continued operation in
2021. Therefore, we represent 2020 as a continued operation in accordance with
the current classification.
In thousands of US$, except per share amounts December 31, 2020, December 31, 2020,
as issued Represented to Discontinued operations After Representation
Continuing operations
Revenues 47,018 (42,131) 4,887
other income 15 (3,400) (3,385)
Purchases and services (20,416) 18,810 (1,606)
Other expenses (1,398) 13,403 12,005
(formed)/Reversal of provisions 12,005 (23,247) (11,242)
Personnel cost (13,526) 13,103 (423)
Depreciation and amortization (7,385) 3,556 (3,829)
Impairment loss of other financial assets (7,684) 7,684 -
Gains from disposal of non-current assets 186 36 222
Operating (loss) 8,815 (12,186) (3,371)
Finance income 4,697 (542) 4,155
Finance expense (5,277) 4,960 (317)
Net foreign currencies translation differences (455) 198 (257)
Profit before income tax 7,780 ((7,570 210
Income tax expense (4,703) 4,191 (512)
(loss) for the year from continued operations 3,077 (3,379) (302)
Discontinued operations
Profit from discontinuing operation (net of income tax) ((2,357 3,379 1,022
Profit for the year 720 - 720
33. Demerging effect
On October 2020, the extraordinary general assembly meeting decided with a
majority voting to demerge the company into two entities, Orascom Investment
Holding OIH (demerging company) and Orascom Financial Holding OFH (demerged
company) which was established in December 2020. The Demerging entity (OIH)
kept all of its assets and liabilities except for the assets and liabilities
associated with Beltone investment Holding (subsidiary company) and Contact
Financial Holding (formerly Sarwa Capital) (associate company) which were
transferred to Orascom Financial Holding "OFH" for their carrying amount, the
demerged entity. The table below illustrates the balances moved to OFH:
(In thousands of US$) Orascom Investment Holding Orascom Financial Holding Orascom Investment Holding
Before Demerging Demerged company Demerging company
December31,2020 December31,2020 December31,2020
Assets
Property and equipment 77,458 10,760 66,698
Intangible assets 25,290 22,907 2,383
Investment property 42,578 - 42,578
Equity accounted investees 152,018 112,908 39,110
Other financial assets 9,803 4,113 5,690
Other assets 15,811 - 15,811
Total non-current assets 322,958 150,688 172,270
Inventories 775 775
Trade receivables 70,802 50,380 20,422
Other financial assets 8,124 3,383 4,741
Other assets 9,794 619 9,175
Cash and cash equivalents 43,316 21,451 21,865
Total current assets 132,811 75,833 56,978
Total assets 455,769 226,521 229,248
Equity and liabilities
Share capital 366,148 270,258 95,890
Reserves (150,228) -127,940 (22,288)
Retained earnings 34,649 18,643 16,006
Equity attributable to equity holders of the Company 250,569 160,961 89,608
Non-controlling interests 25,878 7,818 18,060
Total equity 276,447 168,779 107,668
Liabilities
Borrowings 29,681 1,875 27,806
Other liabilities 7,783 - 7,783
Deferred tax liabilities 8,815 1,584 7,231
Total non-current liabilities 46,279 3,459 42,820
Borrowings 42,323 30,607 11,716
Trade payables and other liabilities 72,221 19,064 53,157
Income tax liabilities 4,681 1,217 3,464
Provisions 13,818 3,395 10,423
Total current liabilities 133,043 54,283 78,760
Total liabilities 179,322 57,742 121,580
Total equity and liabilities 455,769 226,521 229,248
34. Subsequent events
-During May 2022, the Board of Victoire Investment Cooperative approved
investment in a fund investing into renewable energies through OTMT Brazil of
EUR 20 million (US$ 23 million), out of a total fund size of EUR 626 million
(US$ 712 million)
-On May 12, 2022, OTMT Brazil Holdings S.à r.l. changed its name to OIH
Renewables S.à r.l. and increased its share capital by US$ 23,111 thousands
up to US$ 23,131 thousands.
-During September 2022, OIH completed the tax inspection for the years from
2015 to 2020, A total of EGP 27 million (US$ 1.7 million) were paid, which
included the value of the corporate tax due for those years. Furthermore,
according to the estimates of the tax advisor, it is expected that an amount
of EGP 11.5 million (US$ 0.7 million) will be paid as late payment penalties,
accordingly the Group revered an amount of US$ 15.6 million from provisions
balance in 2020.
-During August 2022, Koryolink Company called for a capital increase by a
value of Euro 20 million. The Korea Post and Telecommunications Corporation
(KPTC) subscribed to capital increase with 100%. As a result, OIH'S
shareholding was diluted from %75% to %60.
- Based on a request from one of Koryolink's shareholders, the management of
Koryolink decided during the month of August 2022 to grant both of its
shareholders a non-interest-bearing loan, in accordance with the Democratic
People's Republic of Korea (DPRK) local laws and rules, accordingly, Koryolink
transferred about Euro 82 million (equivalent to US$ 93 )OIH in OIH bank
account in the DPRK, as non-interest-bearing loan between the two parties.
- During 2022, OIH started a lawsuit against the purchaser of the shares in
Riza Capital. As a result, management considered that the credit risk of this
financial receivable has increased compared to prior years. The Group
reflected the risk increase in the ECL computation. While performing this
assessment, management took into consideration a legal opinion obtained from
the OIH's lawyers during 2022. This legal opinion states that the purchaser's
assets serve as a guarantee against the outstanding receivable balance.
- During the month of March 2023, the company sold the company's headquarters
for the purpose of re-leasing to GB Auto Leasing Company for an amount of 157
million Egyptian pounds(equivalent to US$5,1 ), where the developers agreed to
lease the original owned for a period of 5 years starting from March 15, 2023
and ending on March 15, 2027 The original was leased with a total value of 257
million Egyptian pounds (equivalent toUS$8,3 ).
-During the month of April 2023, the Board of Directors unanimously approved
two investment projects in (1) renewable energy (electric vehicles), and (2)
trade platform to serve the commercial projects in Africa. The council
approved the establishment of the necessary companies and approved the
procedures for establishing an Egyptian company called "OTL for Trade and
Logistics".
- On 1st March 2023, Inca Re 2, Inca Re 11, Inca Re 13, Inca Re 17, and Inca
Re 18 were merged into Inca Re 19 and therefore, they no longer exist.
-On 27 March 2023, OIH S.A.E. incorporated with Hamed El Ghoul the company O
Trade & Logistics, whereas OIH S.A.E. holds 89% in the company. OIH S.A.E.
invested EGP 84 thousand in this company.
-On 3 April 2023, OIH S.A.E. approved the investment in the Electrical
Mobility Sector catering for the 2 and 3 wheelers Electrical vehicles and the
establishment of a trading platform to mainly enhance intra- Africa trading
and logistics services.
-On 3 August 2023, O-trade & Logistics incorporated a Kenyan subsidiary
called O-Trade & Logistics Limited with a share capital of KES 4,000,000
(US$ 32,627.36).
-On 28 September 2023, OIH (Egypt) Group finalized the sell process of TWA and
adjusted the total price by US$ 0.5 million (total sell value US$ 35 million
instead of US$ 35.5 million). Thus, the loss from the sale of TWA will be
adjusted according to the new value.
-During September 2023, OIH (Egypt) Group sold the investment property in
Brazil. The sale proceeds amount to BRL 90 million (US$ 16.5 million).
- On 2 October 2023, OIH (Egypt) Group incorporated Nubay FZO with a share
capital of AED 500,000 (US$ 135,595). OIH (Egypt) Group holds 285,000 shares
(57%) in this entity that will operate in the field of investment in Nubay,
Africa.
-On 17 November 2023, OIH renewable S.à r.l. incorporated BlueV Holding
Limited in Abu Dhabi with a share capital of AED 1,000,000 (US$ 271,190).
-In November 2023, the Board of Directors approved the sale of 62,924,478, the
total number of treasury shares acquired during 2023.
-During March 2024, Orascom Investment Holding Company has made an early
settlement for the sale and leaseback process for the 29th floor with an
amount of approximately EGP 159 million (equivalent toUS$5,1)., and several
legal procedures are still in process.
Orascom Investment Holding S.A.E.
Appendix A - Subsidiaries and investment in Equity accounted investees as of December 31, 2021
Segment Country of incorporation and place of business Entity name Nature of business Proportion of ordinary shares held by the Company (%) Proportion of ordinary shares held by OIH Group (%) Proportion of ordinary shares held by the non-controlling interest / other Investment type
shareholders (%)
Media and Technology Egypt Oracap Holding Co. (Free zone) Other 100% 100% 0.00% Subsidiary
Media and Technology Malta Oracap Far East Ltd Other 100% 100% 0.00% Subsidiary
Management services Lebanon Orascom Telecom Lebanon Management services 99,8% 99,8% 0.20% Subsidiary
Other Luxembourg OIH-Renewables Other 100% 100% 0.00% Subsidiary
Other North Korea Osorcon Other 100% 100% 0.00% Subsidiary
Investment Property Netherlands Victoire coop Investment Holding Investment Property 100.00% 100.00% 0.00% Subsidiary
Investment Property Netherlands Victoire BV Investment Property 100.00% 100.00% 0.00% Subsidiary
Investment Property Brazil INCA 2 (Brazil) Investment Property 100.00% 100.00% 0.00% Subsidiary
Investment Property Brazil INCA 9 (Brazil) Investment Property 100.00% 100.00% 0.00% Subsidiary
Investment Property Brazil INCA 11 (Brazil) Investment Property 100.00% 100.00% 0.00% Subsidiary
Investment Property Brazil INCA 13 (Brazil) Investment Property 100.00% 100.00% 0.00% Subsidiary
Investment Property Brazil INCA 17 (Brazil) Investment Property 100.00% 100.00% 0.00% Subsidiary
Investment Property Brazil INCA 18 (Brazil) Investment Property 100.00% 100.00% 0.00% Subsidiary
Investment Property Brazil INCA 19 (Brazil) Investment Property 100.00% 100.00% 0.00% Subsidiary
Energy Egypt O Capital for energy Energy 99,2% 99,99% 0.01% Subsidiary
Energy Egypt O Capital for services and construction Energy 99,2% 99,99% 0.01% Subsidiary
Media and Technology Egypt Orascom Telecom Venture co. "S.A.E" Other 99,99% 99,99% 0.01% Subsidiary
Entertainment Egypt Orascom Pyramids Entertainment "S.A.E" Entertainment 100% 100% 0.00% Subsidiary
Entertainment Egypt Orascom Prisme Pyramids Entertainment "S.A.E" Entertainment 70% 70% 30% Subsidiary
Entertainment Egypt Orascom Pyramids for Touristic Establishment Entertainment 100% 100% 0.00% Subsidiary
GSM North Korea North Korea CHEO Technology JV Company Telecommunication operator 60% 60.00% 40.00% Associate
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