MIRA INFORM REPORT

Report Date :

27.08.2014

IDENTIFICATION DETAILS

Name :	GLAXO SMITHKLINE EGYPT SAE

Registered Office :	1 Amoun Street Ard El Baraka, El Salam City PO Box 30001 Cairo 11491

Country :	Egypt

Financials (as on) :	31.12.2013

Date of Incorporation :	1981

Com. Reg. No.:	208407, Cairo

Legal Form :	Egyptian Joint Stock Company

Line of Business :	Subject is engaged in the manufacture, marketing and export of pharmaceutical products, including vitamins, hormones and organ extracts, pharmaceutical preparations for the cardiovascular system, central and autonomic nervous system, anaesthetics, eye ointments, ophthalmic preparations, throat sprays, antacids and preparations for gastric ulcers, plasma substitutes and inhalants

No. of Employees	1,210

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Egypt

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EGYPT ECONOMIC OVERVIEW

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate growth. Poor living conditions combined with limited job opportunities for the average Egyptian contribute to public discontent. After unrest erupted in January 2011, the Egyptian Government backtracked on economic reforms, drastically increasing social spending to address public dissatisfaction, but political uncertainty at the same time caused economic growth to slow significantly, reducing the government's revenues. Tourism, manufacturing, and construction were among the hardest hit sectors of the Egyptian economy, pushing up unemployment levels, and economic growth remains slow amid political uncertainty, government transitions, unrest, and cycles of violence. Cairo since 2011 has drawn down foreign exchange reserves and depended on foreign assistance, particularly from Gulf countries, to finance imports and energy products and prevent further devaluation of the Egyptian pound, fearing higher inflation from a weaker currency

Source : CIA

SUMMARY

Company Name : GLAXO SMITHKLINE EGYPT SAE

Also Known As : GSK PHARMACEUTICALS

Country of Origin : Egypt

Legal Form : Egyptian Joint Stock Company

Registration Date : 1981

Commercial Registration Number : 208407, Cairo

Issued Capital : £E 835,142,000

Paid up Capital : £E 835,142,000

Total Workforce : 1,210

Activities : Manufacture, marketing and export of pharmaceutical products.

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

COMPANY NAME

GLAXO SMITHKLINE EGYPT SAE

ALSO KNOWN AS

GSK PHARMACEUTICALS

ADDRESS

Registered & Physical Address

Street : 1 Amoun Street

Location : Ard El Baraka, El Salam City

PO Box : 30001

Town : Cairo 11491

Country : Egypt

Telephone : (20-2) 22777124 / 22777000 / 22807000 / 22807100

Facsimile : (20-2) 22777001 / 26185002 / 22806031

Mobile : (20-100) 0072952

Email : mansour.a.meenai@gsk.com / eldin@gsk.com

Please note that the correct PO Box number is 30001 and not 3001.

Premises

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Cairo.

Branch Office (s)

Location Description

· Boomerang Building, No.46, Block J Rented Scientific Office

5th District, Nasr City

Cairo

Tel: (20-2) 26185000

Fax: (20-2) 26185001

· 1 Khaled Ibn El Walid Street Rented Scientific Office

Masken Sheraton

Cairo

Tel: (20-2) 26860334/5/6

· 89 Gameat El Dewal El Arabia Street Rented Scientific Office

Mohandessin, Giza

Cairo

Tel: (20-2) 33367501 / 33367502 / 33367503

Fax: (20-2) 33388218 / 33388237

· 8 Ahmed Farid Street Rented Scientific Office

Alexandria

Tel: (20-3) 5803878 / 5803884

Fax: (20-3) 5875588

· 23 Kaiem Makam Batal Ahmed A. El Aziz Street Distribution Centre

Kafr Abdu

Alexandria

Tel: (20-3) 5427617

Fax: (20-3) 5428850

· Dr Adel Denour Building Rented Scientific Office

Mansoura

Dakahleya

Tel: (20-50) 2294572 / 2294573 / 2294574

· Villa El Toshky Rented Scientific Office

49 El Gomhoureya Street

Sohag

Tel: (20-93) 2323130 / 310146

Fax: (20-93) 2313755

KEY PRINCIPALS

Name Position

· Dr Amr Mamdouh Chairman

· Fouad Ben Ghalem Director

· Mounir Ghabbour Director

· Tharwat Abd El Shaheed Director

· Afdal Naguib Director

· Omar El Asar Director

· Philip Jan Mark Director

· Dr Farid Mansour Director

· Mansour Manay Finance Manager

· Amr Mariey Technical Manager

· Adel Darwish Factory Manager

· Azza Rostom Production Manager

· Hamdy Zaki Planning Manager

· Tarek Abd El Khalek Human Resources Manager

LEGAL FORM & OWNERS

Date of Establishment : 1981

Legal Form : Egyptian Joint Stock Company

Commercial Reg. No. : 208407, Cairo

Industrial Reg. No. : 26750

Authorised Capital : £E 1,000,000,000

Issued Capital : £E 835,142,000

Paid up Capital : £E 835,142,000

Name of Shareholder (s) Percentage

· Glaxo Smithkline Plc 91.20%

United Kingdom

· National Societe Generale Bank 5.89%

5 Champollion Street

Cairo

Tel: (20-2) 27707777

Fax: (20-2) 27707799

· Local businessmen and private investors 2.91%

OPERATIONS

Activities: Engaged in the manufacture, marketing and export of pharmaceutical products, including vitamins,

hormones and organ extracts, pharmaceutical preparations for the cardiovascular system, central and autonomic nervous system, anaesthetics, eye ointments, ophthalmic preparations, throat sprays, antacids and preparations for gastric ulcers, plasma substitutes and inhalants.

Import Countries: United Kingdom

Export Countries: Saudi Arabia, Kuwait, Lebanon, and the United Arab Emirates

Operating Trend: Steady

Subject has a workforce of approximately 1,210 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Egyptian Pounds (£E 000,000’s)

Balance Sheet 31/12/13 31/12/12 31/12/11 31/12/10

Total Current Assets

981.35

791.59

798.44

763.36

Cash and Short Term Investments	310.96	116.19	45.01	57.63
Cash	-	-	-	-
Cash & Equivalents	310.96	116.19	45.01	57.63
Short Term Investments	-	-	-	-
Total Receivables, Net	362.18	417.45	392.27	411.71
Accounts Receivables - Trade, Net	132.88	99.1	114.91	81.3
Total Inventory	237	192	265.88	223.55
Prepaid Expenses	71.21	65.95	95.28	70.48
Other Current Assets, Total	-	-	-	-

Total Assets

1382.04

1193.92

1190.33

1141.09

Property/Plant/Equipment, Total - Net	127	118.7	116.88	114.92
Property/Plant/Equipment, Total - Gross	367.05	343.95	18.91	311.46
Accumulated Depreciation, Total	-240.05	-225.26	-	-196.54
Goodwill, Net	238.65	238.65	238.65	238.65
Intangibles, Net	10.12	14.14	5.84	7.39
Long Term Investments	6.39	3.78	2.72	4.53
Note Receivable - Long Term	-	-	-	-
Other Long Term Assets, Total	18.53	27.05	27.82	12.25
Other Assets, Total	-	-	-	-

Total Current Liabilities

386.82

203.06

202.55

173.21

Accounts Payable	53.37	39.9	51.37	29.34
Payable/Accrued	-	-	-	-
Accrued Expenses	102.53	96.95	74.02	89.34
Notes Payable/Short Term Debt	-	-	-	-
Current Port. of LT Debt/Capital Leases	-	-	-	-
Other Current liabilities, Total	230.93	66.21	77.16	54.53

Total Liabilities

396.63

216.39

214.69

179.47

Total Long Term Debt	-	-	-	-
Long Term Debt	-	-	-	-
Capital Lease Obligations	-	-	-	-
Total Debt	-	-	-	-
Deferred Income Tax	9.38	12.94	11.76	5.91
Minority Interest	0.42	0.4	0.38	0.36
Other Liabilities, Total	-	-	-	-

Total Equity

985.41

977.52

975.64

961.62

Redeemable Preferred Stock, Total	-	-	-	-
Preferred Stock - Non Redeemable, Net	-	-	-	-
Common Stock, Total	835.14	835.14	835.14	835.14
Additional Paid-In Capital	-	-	-	-
Retained Earnings (Accumulated Deficit)	150.27	142.38	140.49	126.47
Treasury Stock - Common	-	-	-	-
ESOP Debt Guarantee	-	-	-	-
Unrealized Gain (Loss)	-	-	-	-
Other Equity, Total	-	-	-	-

Total Liabilities & Shareholders' Equity

1382.04

1193.92

1190.33

1141.09

Total Common Shares Outstanding

83.51

Income Statement

Total Sales

1041.35

918.11

865.67

726.84

Sales	1041.35	918.11	865.67	726.84
Other Sales, Total	-	-	-	-

Cost of Sales, Total

660.85

595.08

566.49

463.61

Gross Profit

380.51

323.02

299.18

263.23

Total Operating Expenses

926.2

824.03

754.84

626.27

Selling/General/Admin. Expenses, Total	191.58	199.77	165.32	136.57
Research & Development	-	-	-	-
Depreciation / Amortization	-	-	-	-
Interest Expense (Income) - Net Operating	-	-	-	-
Unusual Expense (Income)	-0.12	0.32	-	1.37
Other Operating Expenses, Total	73.89	28.85	23.03	24.72

Operating Income

115.16

94.07

110.83

100.58

Interest Income (Expense), Net Non-Operating

3.81

2.62

-1.58

11.33

Gain (Loss) on Sale of Assets

Other, Net

10.01

Net Income Before Taxes

118.97

96.69

119.26

111.91

Provision for Income Taxes

42.18

24.55

34.14

18.86

Net Income After Taxes

76.79

72.14

85.12

93.06

Minority Interest

-0.02

-0.01

Equity In Affiliates

U.S GAAP Adjustment

Net Income Before Extraordinary Items

76.76

72.12

85.1

93.04

Total Extraordinary Items

Net Income

76.76

72.12

85.1

93.04

Local sources consider subject’s financial condition to be Good.

BANKERS

· Commercial International Bank (CIB)

Nile Tower Building

21-23 Giza Street

PO Box: 2430

Cairo

Tel: (20-2) 25703043

Fax: (20-2) 25703172 / 25072691

· HSBC Bank Egypt SAE

Abu El Feda Building

3 Abu El Feda Street

Zamalek

Cairo

Tel: (20-2) 27359286 / 27354849

Fax: (20-2) 27361457

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction April 2005

Credit amount 100,000

Amount overdue 0

Payment terms 60 days

Payment Method Letters of Credit

Paying record No Complaints

Currency US Dollars

GENERAL COMMENTS

Glaxo Smithkline Egypt SAE was established in 1981 and has become a market leader in Egypt for the manufacture, marketing and export of pharmaceutical products. It has licence agreements with several well known British producers such as Suppravite, Haemoton, Florest, Apimol and Ablazine.

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.50
UK Pound	1	Rs.100.33
Euro	1	Rs.79.91

INFORMATION DETAILS

Analysis Done by :	SUM

Report Prepared by :	NIS

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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