Contents....

A Message from the Chairman --------------- 2 Board of Directors --------------------------------- 4 Company Organization ------------------------- 6 Financial Statement ------------------------------- 8 Auditor's Report ----------------------------------- 12 Highlights ----------------------------------------------13 Training -------------------------------------------------18 HSE and Quality ----------------------------------- 19 Achieved Projects---------------------------------- 20 Ongoing Projects ---------------------------------- 28 Ranking ------------------------------------------------- 32

Chairman Message
"Together Working and Overcoming the Challenges in Rebuilding Egypt"
gypt has always been one of the most important countries in the world valued for its geographical location, great civilization and more importantly its human capital. The essential values of the 25th January revolution are our mandate for work in The Arab Contractors Osman Ahmed Osman & Co. Faced with the nature of the current situation and the increasing competitionin business market in Egypt and abroad, we had to adopt a strategy that focuses on two main approaches, improving our internal capacity and developing our business in Africa and the Middle East. Along the first approach, we are promoting younger generations to assume leadership position in The Arab Contractors so as to couple their enthusiasm with their management expertise to the benefit of the company. This fact has become evident in the recent formation of the board of directors. We are also fostering innovation and continuous professional development for our employees for the different professions: engineers, accountants, human resources, supervisors, skilled workers, etc.,promoting the values of safety, quality and sustainability. Along the second approach we exist in more than 28 countries in Africa and Middle East, we are focusing our efforts in order to penetrate new markets where competition is more and more intense. We are optimistic towards Egypt and we believe in thefuture, we are experiencing a natural recovery period that will end by the common efforts of all Egyptians for a better life.

Finally, we are all in the same boat we have to row together in the same direction to reach our target.
Sincerely,
Dr. Eng. Ossama El-Hosseiny Chairman and CEO

Board of Directors

Dr.Eng. Ossama
Chairman

El-Hosseiny
& CEO

Eng. Ashraf Rateb

Board Member

Eng M. Salah El-Zahed

Board Member

Dr. M. Onsy El-beshouty

Board Member

Eng. Sayed Farouk

Board Member

Eng M. Hany Hammad

Vice Chairman

Eng M. Samy Saad

Senior Vice Chairman

Dr. Samir El-Sayad

Board Member

Eng.Hussein sabbour
Board Member

Eng. Hisham Mekawi

Board Member

Mr. Amr El-Garhi

Board Member

Eng. Hassan El-Far

Board Member

Eng. Imam Afifi

Board Member

Company Organization....
B
(Geographical Branches and Specialized Departments)
Cairo Helwan Nasr City Alexandria East and Middle Delta North Delta Assiut South Valley North Upper Egypt Red Sea Canal Sinai Mega Projects
Joint Ventures and consortiums

HOME DIVISION
Bridges Roads

HEADQUARTER
(Departments)
Information & Decision Support Sector Research and Business Development Kuwait UAE Algeria

INTERNATIONAL DIVISION
Tunisia Morocco Nigeria Oman Palestine Chad Cote dIvoire Equatorial Guinea Ghana Investment Human Resources Legal Affairs Public Relations Iraq Botswana Lebanon Qatar Saudi Arabia Sudan Uganda Ethiopia Zambia
Democratic Republic of the Congo

Tunnelling Dredging and Maritime Construction Deep Foundations Electro-Mechanical Works Restoration of Monuments Complementary Works Steelyard

HSE and Quality Technical Financial Auditing Tendering and Contracting Engineering and Consultancy Procurement Training Institute Financial Ready Mix Concrete Central Workshops Shipyards Equipment Renting Services

Cameroon Libya

Formwork, Falsework and Scaffold

Financial Statements
Balance Sheet at June30, 2012 Assets
Long Term Assets Net property, plant, and equipment Construction in progress Investments in Affiliates Held to maturity investments Sundry long term assets

30/6/2012
2 117 325 1 048 22 009 754 255 966 874

30/6/2011
2 299 290 980 22

LE 000
124 781 759 966 0

Total Long Term Assets

Cash& cash equivalents Inventory Clients Sundry debtors Prepaid expense Other receivable accounts (retention included) Trading Securities

Current Assets

3 514 858 505 236 971 400 482 2 562 71 12 230 15 745 1 1 4 1 480 593 062 958 391 572 818 874 732

3 593 630 882 316 655 254 460 2 221 152 12 942 16 536 1 1 5 1 698 035 446 215 447 868 119 828 458

Current liabilities Provisions Suppliers & payable notes Sundry creditors Advance payment on contracts Other payable accounts Current installments of long-term debt Bank overdrafts

Balance Sheet at June30, 2012 Liabilities & Shareholders' equity

30/6/2012
477 2 450 766 3 527 2 740 103 766 115 573 643 627 801

30/6/2011
747 3 051 742 4 146 2 571 115

LE 000
280 456 422 431 985 928

Total current liabilities Long-term loans Shareholders' equity

Paid- in capital Legal & general reserves Retained earning Net profit for the year

10 066 525 296 635 4 500 299 78 505 5 382 15 745 000 306 221 045 572 732

11 375 502 276 789 3 600 240 10 1 033 4 884 16 536 000 563 000 604 167 458

Total Current Assets

Total Assets

Total shareholders' equity

Total liabilities & shareholders' equity

Financial Statements
Income Statement for the Year Ended June 30, 2012
Description
Turnover (Sales)* (-) Cost of sales Gross Profit From Operation (-) General and administrative expenses Operating Profit Income from other operations Expenses from other operations Extraordinary items Provisions Earnings Before Interest and Taxes (EBIT) Financial income Financial expenses Earnings Before Income Taxes Income taxes Deferred tax Net Profit
* Not Included Turnover Of Affiliated Companies.

LE 000

Cash Flows Statement at 30/06/2012

LE 000
Description

30/6/2012

11 205 942 -10 627 902 578 039 292 635 285 404 274 275 - 24 218 - 22 770 104 683 617 374 58 637 - 182 121 493 890 000 11 155 505 045

30/6/2011

13 854 652 -12 308 897 1 545 755 226 663 1 319 092 251 751 - 15 973 31 448 - 324 900 1 261 418 63 566 188 059 1 136 925 57422 45 899 1 033 604

30/06/2012 - 40 683 - 240 073 - 96 463 - 377 218 1 882 698 1 505 480

30/06/2011 795 012 - 698 845 10 857 107 024 1 775 674 1 882 698

Net cash provided from operating activities Net cash provided from (used in) investing activities Net cash used in financing activities
Net (decrease) increase in cash and cash equivalents during the year

Cash and cash equivalents at beginning of year

Cash and Cash Equivalents at End of the Year

10

11

Auditor's Report
e have audited the accompanying financial statements of The Arab Contractors Company represented in the balance sheet as of June 30, 2012 and the related statements of income, changes in shareholders equity and cash flows for the year then ended all expressed in Egyptian pound. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Central Auditing Organization law, the Egyptian Standards on Auditing and in the light of provision of applicable Egyptian laws. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We have obtained all information and explanations, which we considered necessary for our audit. We believe that our audit provides a reasonable basis for our opinion on the financial statement. The company keeps proper accounting records, which include all that, is required by law and company statute, and the accompanying financial statements, are in agreement therewith. Without qualifying our report, we draw attention that the company hadn't issued the consolidated financial statement In our opinion, the financial statements referred to above together with the notes attached thereto, present fairly, in all material respects, the financial position of The Arab contractors company as of June 30, 2012, and the results of its operations and its cash flows for the fiscal year then ended in accordance with the Egyptian Accounting Standards and in compliance with the related applicable Egyptian laws and regulations. Auditor Central Auditing Organization Cairo, January 17, 2013

Highlights
The company faced some difficulties as a result of political events in Egypt during this year which led to down trend of the company financial ratios especially in turnover and earning from operation. Total Turnover
By M.LE

Although, the down trend of the company financial ratios, the company still has a strong liquidity position which support

its operation both locally and internationally.

Earning from Operation

2 1 1 1 1 1 000 800 600 400 200 000 800 600 400 200
By M.LE

Cash and Cash Equivalent

2 1 1 1 1 1 000 800 600 400 200 000 800 600 400 200
By M.LE

16 000 14 000 12 000 10 000 8 000 6 000 4 000

2004 2005 2006 2007 2008 2009 2010 2011 2012

2004 2005 2006 2007 2008 2009 2010 2011 2012

2004 2005 2006 2007 2008 2009 2010 2011 2012

Interest Expense
By M.LE

Bank Overdraft
By M.LE

Long-Term Loans
By M.LE

800 600 400 200

2004 2005 2006 2007 2008 2009 2010 2011 2012

2 2 2 1 1

800 400 000 600 200 800 400

2004 2005 2006 2007 2008 2009 2010 2011 2012

1 200 1 000 800 600 400 200

2004 2005 2006 2007 2008 2009 2010 2011 2012

12

13

Highlights
Turnover 2011/2012 Work in Hand and New Contracts 2011/2012

1.5169
12.382

24.b288

b.3042

LE 000 LE 000
Domestic Activities International 8,463,632 2,742,310 Water and Wastewater Transport Public buildings Housing Industrial Plants and Electro-Mechanical Erections Power Stations Agriculture and lrrigation Services 5,009,056 2,554,954 2,073,099 616,326 302,560 201,707 123,266 324,974 11,205,942 Domestic Activities International 24,628,783 12,382,037

LE 000 LE 000
Water and Wastewater Transport Puplic Buildings Domestic Activities Housing International Industrial Plants and Electro-Mechanical Erections Power Stations Agriculture and lrrigation Ancillary Services 5,650,797 3,392,167

LE 000

3,499,345 6,304,199 350,455 1,516,899 550,045 124,498 147,344

Total

11,205,942

Total

37,010,820

Total

7,821,098
13 854 651

140,000

Total

Geographically

By Major Activities

Work in Hand at the End of 2011/2012

New Contracts Awarded By Major Activities

14

15

Highlights
Total Equipment Cost 3 602 365 LE
9% 5% 13% 10%

Manpower 2011/2012

25%

14%

20%

70%

Engineers (8%) Accountants and Administrators (9%)

16%

8%

12%

Technicians and Foremen

(16%) (51%) (16%)

9%

By Function

5%

5% 6%

6%

By Age
2007 - 2012 2002 - 2006 1997 - 2001 (70%) (20%) (10%)

Skilled Labors Semi and Non Skilled Labors

Concrete Earth Moving Paving and Asphalt Bridges Foundation Marine Works Tunnelling Transport Quarry Lifting

(13%) (14%) (12%) ( 6% ) ( 6% ) ( 5% ) ( 5% ) ( 25% ) ( 5% ) ( 9% )

16% Manpower
Number of PhD holders Number of M.Sc. holders Number of higher degree diploma holders

74600
25 63 198

51%

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17

Training
Training Indicators 2011 - 2012
Courses Technical Courses H.R. Courses Financial Courses Managerial Courses Q.C., Safety and Environment Courses Students Summer Courses Overseas Students Courses General Total No. of Course 191 7 92 19 60 12 17 51 449 No. of Trainees 3694 301 1616 224 1011 7927 957 945 16675

Health, Safety, Environment and Quality (HSE & Q)

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19

Recently Achieved Projects

Greater Cairo Metro Line III The Egyptian Embassy in Abuja - Nigeria Institut dgypte National Telecom Regulatory Authority

20

21

Recently Achieved Projects

Uganda Wildlife Authority Headquarters - Uganda Regional Ring Road Ministry of Industry Building - Kuwait Red Sea Governorate Building

22

23

Recently Achieved Projects

Shendi Bridge - Sudan Serapeum Tomb in Sakkara Sipopo Road - Equatorial Guinea Expansion of Contract no. (19)

24

25

Recently Achived Projects

Makadi Palace Touristic Village - Hurghada Palestine Tunnel and Bridge in Jeddah - Saudi Arabia Tlemcen Airport - Algeria Two Ferries at Akosombo - Ghana

26

27

Ongoing Projects
National Bank of Egypt - Cairo Plaza Jaber Al Ahmad Al Jaber Al Sabah Hospital - Kuwait Al Gabal Al Akhdar Panorama

Bokoro - Arboutchatak Road - Chad

28

29

Ongoing Projects
Expansion of Ain Shams Wastewater Plant Hagere Mariam Road - Ethiopia Abu Qir Thermal Power Plant Intake Structure Banha Courts Complex

30

31

Ranking
Number 78 - Top 225 Global Contractors

Based on ENR Magazine - August 2012 enr.construction.com

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