YE 2007 Corporate Announcement April 2008. A market leader no matter where we are 2 This document has been prepared by Raya Holding for Technology & Telecommunications.

YE 2007Corporate Announcement

April 2008

2A market leader no matter where we are

This document has been prepared by Raya Holding for Technology & Telecommunications S.A.E.

(“Raya” or the “Company”) solely for presentation purposes. It must be treated confidentially by

attendees and should not be reproduced, redistributed or passed to any other person. The information

contained in this document has not been independently verified and no representation or warranty,

expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy,

completeness or correctness of the information contained herein. The Company shall not have any

liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this

document, or its contents, or otherwise arising in connection with this document.

This document does not constitute an offer or invitation to purchase any shares in the Company and

neither it nor any part of it shall form the basis of, or be relied upon in connection with, any contract or

commitment whatsoever.

Any decision to purchase shares in the Company is the sole responsibility of the investor who shall be

responsible for his own due diligence.

This document may contain forward looking statements that constitutes Raya’s beliefs and

expectations about future performance. Except for historical information, any forward looking

statement based on current expectations, assumptions, projections about future events are subject to

certain economic and market risks and uncertainties that could turn out actual results to differ

materially or may not occur.

Disclaimer


Raya in Brief

Corporate Update

Operations Review

Financial Highlights

Agenda

I.

II.

III.

IV.


Infrastructure solutions

Business applications and solutions

IT Outsourced services (e-Payment)

Information Technology

Three operations: retail, distribution, and maintenance/warranty services

Two product groups: Personal Mobility & IT products

Trade

Regional Presence/Client BaseAlgeria, Saudi Arabia, U.A.E., Kuwait, Qatar, Oman, Jordan, Yemen, Morocco, Syria, Tunisia, Lebanon, Iraq, Nigeria

Raya In BriefScope of Operations

Call Center

Prospecting / Customer Acquisition

Channel Development

Campaign Management

Serving Local & International clients


IT and Retail & Distribution

IT

Raya Office

Egypt

Saudi Arabia

Jordan

Syria

Qatar

UAE

KuwaitMorocco

Oman

Yemen

Algeria

IraqLebanon

Tunisia

Raya In BriefGeographic Presence

Nigeria

Sudan


Raya in Brief

Corporate Strategy

Operations Review


Agenda

I.

II.

III.

IV.


Expanding call center offshore revenues

Expand direct distribution coverage & reach

Launched Kazza Mizza retail chain

Mobile Maintenance Services

Level 4 for 14 NW African countries

Level 3 in Algeria & Nigeria

Maintenance services in South Africa

Expand value added services

eFinance Investment

C3 Acquisition

Nigeria office

MADA

Raya for Leasing

New E-Payment

Company

Fast entry intoprofitable markets & lines of business

Maximize profits

Net Income EGP 95

million (EPS 1.51)

G&A to Rev down to

8.4% from 10% in YE06

Depreciation down by

EGP 8.9 million

Financial costs down

11%

2007 dividend

distributed 1.23 L.E vs.

0.40 L.E in 2006

Corporate Strategy

Create Sustainable Improvements in Margins & Earnings


Egypt

Saudi Arabia

Jordan

Syria

Qatar

UAE

KuwaitMorocco

Oman

Yemen

AlgeriaLibya

Africa

USA & Europe

Retail, distribution & Maintenance

opportunitiesInformation Technology

services

Contact center outsourcing services

Lebanon

Iraq

Tunisia

Regional Expansion Plans


Medhat Khalil & Family5%

Soliman Abanumay10%

Watheqa Holding Co.8%

Major Foreign Funds5%

Free Float50%

Financial Holdings12%

El Tawil Family10%

Shareholding Breakdown

55% Egyptians, 46% Foreigners 62% Retail, 38%

Institutions/Funds

Listed on CASE, May 2005

Outstanding Shares 57M

Market CAP 862 MLE

Shareholder Structure


Raya in Brief

Corporate Strategy

Operations Review


Agenda

I.

II.

III.

IV.


I. Trade

Operations Review


1. Distribution

I. Trade LOB


Operational Highlights Distribution

Mobile Distribution Revenue (EGP mil)

1,438

767762

0

200

400

600

800

1000

1200

1400

FY 05 FY 06 FY 07

# of Handsets (mil)

2.5

1.61.3

0

1

1

2

2

3

FY 05 FY 06 FY 07

56%

87%

23%

1%


Operational Highlights Distribution

Xerox9%

Intel29%

HP17%

Dell20%

3COM 6%

MS6%

Others7%

IT Distribution Product Mix

IT Distribution Revenue (EGP mil)

357

257210

0

100

200

FY 05 FY 06 FY 07

38%22%


Raya StrategyDistribution

Distribution Strategy

Focus on direct distribution (to reach 1,600 POS by end of 2007 &

6,000 in 3 years time)

Expand coverage / reach in Cairo & governorates (60 cars by end

2007)

Strategic alliances with operators (bundling handsets & lines)

Broaden product portfolio (personal mobility & IT products)

Expand Algeria distribution operation & explore other African markets


2. Retail

I. Trade LOB


# of Handsets (000s)

153150160

0

50

100

150

200

FY 05 FY 06 F07

Operational Highlights Retail

# of Outlets

4

11 13

32

39

2003 2004 2005 2006Egypt Outlets Algeria Outlets

5

39

40%

* Above outlets in addition to 22 shop-in-shop with Wataneya operator in Algeria

*

Retail Revenue (EGP mil)

215221210

0

50

100

150

200

250

FY 05 FY 06 FY 07

-3%

2%

4

58

**2007

** Above outlets in addition to 25 shop-in-shop with Wataneya operator in Algeria

-6%

5% 18%

22%

77%


Operational Highlights

Raya Shops Revamped


Operational Highlights

Kaza Meza Shops Launched


Raya StrategyRetail

Aggressive expansion plans in Egypt (reaching 58 shops by end of

2007

Raya ( 39 Shops )

Kaza Meza (19 Shops)

Focus on VAS & customer loyalty

Operator Services (services,

airtime, …)

Deploy personal mobility concept

Introduced Digital Cameras , Ipods and Notebooks

Retail Strategy


3. Maintenance

I. Trade LOB


# of Technical Maintenance Engineers

211170

120

0

50

100

150

200

250

2005 2006 2007

24%

Operational Highlights Maintenance

# of Handsets serviced (000s)

500

274208

050

100150200250300350400450500

FY 05 FY 06 FY 07

82%

Maintenance Revenue (EGP mil)

53

3525

0

10

20

30

40

50

FY 05 FY 06 FY 07

51%

32%40%

42%


Raya StrategyMaintenance

Market Opportunity / Trends

Surge in used handsets

Increased handset complexity

Maintenance Strategy

Capitalize on being Nokia Regional

maintenance hub (Recently won

Nokia Level 4 tender, serving Egypt &

14 NW African countries)

Expand maintenance operations in

Algeria and assess opportunities in

African countries


1,237 1,280

1,951

0

500

1,000

1,500

2,000

YE05 YE06 YE07

Revenues

EGP mil.

GP

158146

208

0

50

100

150

200

YE05 YE06 YE07

Overall PerformanceTrade LOB

52%

EGP mil.

43%

GP

13 11 11

0

20

YE05 YE06 YE07GP%

3% -8%


II. Information Technology

RayaLines of Business


Operational HighlightsInformation Technology

Source: Egypt IDC report 2005

IT Revenue Mix (EGP mil)

239.4

119.7

14.9

59%64%

36%32%5%4%

0

100

200

300

400

Y E 05 Y E 06 Y E 07

Infrastructure Business Applications Outsourced Services

17%319 374

17%272


United Bank Of Egypt Infrastructure & Security Services

Telecom Egypt Infrastructure & Security Services

Credit Agricole Bank Infrastructure, Hardware

Watany Bank Of Egypt ATMs

Ministry Of Finance/ Customs Infrastructure, Security solution, Business Automation

EFG- Hermes MS Services

Commercial International Bank (CIB) Security Solution

Vodafone Infrastructure, IP Services

Etisalat Infrastructure & Security Services

Islamic Fisal Bank ATM

Local Awarded ProjectsInformation Technology


Qatar- Supreme Council for Family Affairs- Internal Security Forces - Qatar Foundation - ictQatar

Kuwait- Vision/MTC Kuwait- Atheer (MTC Group)

Yemen

- Public Telecom

Saudi- Saline Water (SWCC)- Saudi Post- (Al Jomaih) AAC- eXtra- Arab Sat- National Water Co. Jeddah

Regional Awarded ProjectsInformation Technology


Raya StrategyInformation Technology

Outsourcing Strategy

e-Payment infrastructure business in partnership with the financial sector

IT Strategy

System Integration Projects

Increase services component

Industry specific high profitability

projects

Capitalize on maintenance

contracts

Customer satisfaction (repeat

business)


272319

374

0

100

200

300

400

YE05 YE06 YE 07

Revenues

EGP mil.

GP

5158

64

0

20

40

60

80

YE05 YE06 YE07

Overall PerformanceInformation Technology

17%

EGP mil.

10%

GP

2320

18

0

10

20

30

YE05 YE06 YE07GP%

17%

14%


III. Call Center

RayaLines of Business


Operational HighlightsCall Center

Local vs International revenue

Offshore41% Local

59%

Call Center (# of Agents)

669

1,800

2,100

0

500

1,000

1,500

2,000

Y E 05 Y E 06 Y E 07

Agents (000s)

16%

Raya Call Center Clients

MISR

169%


Raya StrategyCall Center

Call Center Strategy

Capitalize on offshore call center

services

Develop and grow BPO services

(business process outsourcing)

Leverage industry know-how and best

practice

Maintain global quality standards ( COPC

)


24 26

67

0

20

40

60

YE05 YE06 YE07

Revenues

EGP mil.

GP

11 11

28

0

5

10

15

20

25

30

YE05 YE06 YE07

Overall PerformanceCall Center LOB

153%

EGP mil.

254%

GP

4542 42

0

10

20

30

40

50

YE05 YE06 YE07GP%

8%


Raya in Brief

Corporate Strategy

Operations Review


Agenda

I.

II.

III.

IV.


Historical financial highlights

Financial HighlightsIncome Statement EGP mil

YE

07

YE

06

Growth

Retail & Dist. Revenues 1,950.6 1,280 52%

IT Revenues 374.1 318.8 17%

Telecom Revenues 50.8

Call Center Reveues 66.9 26.4 153%

Intercompany sales (118.7) (24.5)

Total net sales 2,273 1,651.5 38%

Gross profit 300.7 241.6 24%

GPM 13.2% 14.6%

EBITDA 110.4 76.2 45%

EBITDA to Sales 4.9% 4.6%

Gain from Sale of Investment 54.4 66.6 -18%

Indemnity (11.9) (9.1) 31%

Provisions (13.5) (12.6) 7%

Depreciation & Amortization (16.3) (25.2) -35%

Total Financial Cost (21.4) (24.1) -11%

EBT 115.1 80.3 43%

Net income 95 67.6 40%

Net I ncome to Sales 4.2% 4.1%


Historical financial highlights

Financial HighlightsBalance Sheet

• Working capital 181.5 283 • Debt\equity Ratio 0.73 0.62

EGP mil YE

07

YE

06

Current Assets 846.8 827.6

Long term Assets 328 235.3

Total Assets 1,174.8 1,062.9

Current Liabilities 665.3 544.5

Long term Liabilities 69.2 57.6

Shareholders Equity 432.9 455.7

Minority Interest 6.0 5.1

Total Liabilities &

Shareholders eguity 1,174.8 1,062.9


Financial HighlightsConsolidated Performance

Revenues (EGP mil)

296319

374

5651

1,2371,280

1,951

24

67

26

0

300

600

900

1200

1500

1800

2100

2400

Y E 05 Y E 06 Y E 07

T r ade IT Call Center T elecom

Gross Profit (EGP mil)

194183

224

TelecomCall Center

27

45

6

7

21

9

27

152

104

152

51

0

50

100

150

200

250

YE05 YE06 YE07

Trade IT Call Center

1,6131,676

2,392

4%

43%

-6%

22%


Financial HighlightsConsolidated Performance

Net Income (EGP mil)

95

67.6

39.7

0

20

40

60

80

100

FY05 FY06 FY07

0%

2%

4%

6%

Net Income Net Income Margin

EBITDA (EGP mil)

110

76

97

0

30

60

90

120

FY05 FY06 FY07

0%

2%

4%

6%

EBITDA EBITDA Margin

45%

40%

-22%

70%


Financial HighlightsCost Control Initiatives

SG&A to Revenue

8.4%

9.9%

9.5%

12.3%13.8%

9.9%

0%

2%

4%

6%

8%

10%

12%

14%

FY02 FY03 FY04 FY05 FY06 FY07

SG&A / Revenues %

SG&A per Headcount (EGP 000s)

6371

73 73

63 64

0

20

40

60

80

FY02 FY03 FY04 FY05 FY06 FY07

SG&A per Headcount


Financial HighlightsShareholder Value

Equity (EGP mil)

456432.9

391

183

0

200

400

FY04 FY05 FY06 FY07

ROE

15%

10%

16%

22%

0.0%

5.0%

10.0%

15.0%

20.0%

FY04 FY05 FY06 FY07

EPS

1.21.0

1.5 1.5

0.00

0.50

1.00

1.50

FY04 FY05 FY06 FY07

EPS

P/E @ 13.14 LE

1017

24

9

0.0

5.0

10.0

15.0

20.0

FY04 FY05 FY06 YE07

Thank You

YE 2007 Corporate Announcement April 2008. A market leader no matter where we are 2 This document has been prepared by Raya Holding for Technology & Telecommunications.

Documents

market leader

retail distribution

market cap

market risks

disclaimer slide

trade operations review

nigeria raya

algeria distribution