Investor Presentaiton
30
Transportation
(3% of 1H2018 COGS)
Financial Overview
Egyptian Macro Update
The Egyptian government is implementing policies that will restore the country's financial health,
but not without corporations feeling some of the burden of economic reforms
P
Utilities
(c.2% of 1H2018 COGS)
A
Value Added Tax
(VAT)
%
In July 2018, the Ministry of Electricity and Renewable
Resources raised gasoline prices 50%. This follows
earlier increases in previous fiscal years as part of the
government's gradual phase-out of energy subsidies
Also in July 2018, electricity prices began to climb 26%
on average, following a July 2017 hike of 42% and an
August 2016 increase of 40% on average across the
country.
As of 1 July 2017, the VAT tax increased to 14% from
13%; notably, services such as, but not limited to,
accounting and advertising were subject to the VAT for
the first time in July 2016.
19.75%
17.75%
15.75%
11.75%
12.75%
10.25%
Despite the latest increases in energy prices, inflation has eased as the country surpassed the base effect following the float of the Egyptian
pound. As such, the Central Bank began cutting interest rates with two 100 basis points cuts thus far in 2018
Central Bank of Egypt Lending Rates Evolution from 2016 to Date | %
Positive Impact
Following the rate cuts, our cost of debt will be lower
on our medium-term loan granted in April 2017 to
finance our new corporate headquarters.
Jan-16
Feb-16
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INTEGRATED DIAGNOSTICS HOLDINGS
Sep-16
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Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
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Oct-17
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Jan-18
Feb-18
18.75%
17.75%
Negative Impact
The banks decrease call accounts and time deposit
rates, which negatively affects interest income on the
large cash balances we carry on our balance sheet.
Mar-18
The impact of all new government policies is reflected in
Company guidance.View entire presentation