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Vehicles and Construction Equipment division, especially
within the bus segment. An attempted overhaul of the coun-
try’s public transportation system saw us deliver more than
400 buses to the Cairo and Alexandria Transport Authori-
ties – and sign tenders that should keep our pipelines busy
well into the second half of 2016.
Likewise, our Financing business was a top-performer in
2015, showing steady and promising growth. This year, and
to a great reception, we launched our fifth financing venture,
Tasaheel, which focuses primarily on direct microfinance
group lending to women.
Across our different business lines, the After-Sales division
postedpromising results, contributingpositively to thegroup’s
profitability. GB Auto’s retail arm is in the process of rolling-
out new after-sales retail outlets that will be called “360,” and
will distribute tires, tire parts, batteries, parts and lubricants.
These points of presence will also offer other services, such
as tire installation and the sale and injection of lubricants in
several locations, among other things.
As an investor in long-term growth, we have always looked
ahead andwe continue to do so have a steadfast belief
in the fundamental strengths of the Egyptian economy and
the eventual recovery of regional markets. As our approach in
2015 clearly reflects, we remain in pursuit of diversification,
on both the product and geographic levels. Our margins
throughout all those difficulties remained strong, and as
we await the return of FX liquidity to our home market,
we will continue to use our pricing power, not only to
preserve margins, but to hedge our business against
unforeseen developments, while keeping all our costs
under tight control and ensuring that working capital
remains at healthy levels.
From a macroeconomic standpoint, it is our view that
the government of Egypt needs to send two clear and
strong signals to businesses and investors alike: that it
will be responsive to new economic realities and that it
will support primarily medium-weight and medium-
technology industries that will create jobs and grow ex-
ports. The Central Bank of Egypt’s c. 14%devaluation of
the LE against the USD in March 2016 is the first step in
the direction of aligning monetary policies with prevail-
ing economic realities. On the second front, I would like
here to reiterate the importance of an automotive direc-
tive as a pro-local industry policy to support national
economic development.
In closing, I would like to thank you all for your contin-
ued support. We are well aware of how fast things can
change in emerging markets, and we will continue to
hold a long-term view that supports our growth and al-
lows us to maintain profitability in adverse conditions.
Dr. Raouf Ghabbour, CEO
Summary Overview of Performance by Line of Business
(LE million) 2015 2014 %Change
Passenger Cars
Revenue 7,489.9 8,909.9 -15.9%
Total Gross Profit 793.0 1,010.8 -21.5%
Gross Profit Margin % 10.6% 11.3% -0.8
Motorcycles and Three-Wheelers
Revenue 1,997.2 1,334.0 49.7%
Gross Profit 346.7 245.6 41.2%
Gross Profit Margin % 17.4% 18.4% -1.0
Commercial Vehicles and Construction Equipment
Revenue 1,327.9 912.9 45.5%
Gross Profit 175.8 98.1 79.3%
Gross Profit Margin % 13.2% 10.7% 2.5
Tires
Revenue 324.4 415.2 -21.9%
Gross Profit 36.0 63.7 -43.4%
Gross Profit Margin % 11.1% 15.3% -4.2
Financing Businesses
Revenue 1,046.2 722.7 44.8%
Gross Profit 233.8 168.8 38.5%
Gross Profit Margin % 22.3% 23.4% -1.0
Others
Revenue 75.9 24.1 -
Gross Profit 15.8 1.6 -
Gross Profit Margin % 0.2 0.1 14.3
Group
Revenue 12,264.7 12,322.1 -0.5%
Gross Profit 1,594.4 1,581.7 0.8%
Gross Profit Margin % 13.0% 12.8% 0.2
3 | GB Auto | 2015