Middle East Rating & Investors Service

Corporate
Credit Analysis
September 2005

Amoun Pharmaceutical Company (Amoun)

Ratings and Contacts
Category
Entity Rating: Senior Unsecured

Current
Rating
BBB

Previous
Rating
BBB

Bond Rating : Subordinated Debt

BBB

BBB

Positive

Stable

Rating Outlook

Operating Statistics
Figures in EGP mn
ROA (%)
ROE (%)
Operating Margin (%)
EBITDA
EBITDA Margin (%)

Phone

Marwa E. Mohamed Ezzat Cairo

marwa.ezzat@merisratings.com
Mohamed Abbakar Cairo
mabdallah@merisratings.com

+202 749 5616

+202 749 5616

Balance Sheet Statistics:

1H05*

FY 04

23.8
46.0
33.3
144.4
36.0

10.8
24.4
24.7
90.7
28.0

* Based on Annualized figures

Analyst

FY 03
0.8
2.1
18.3
58.4
23.0

FY 02
0.5
1.5
21.3
62.7
26.0

Figures in EGP mn
Turnover
Total Assets
Debt/EBITDA (x)
EBITDA/Interest Ex. (x)
Cash & C. Equivalent/
Current Liabilities (%)

1H05*
403.3
523.54
1.1
5.8
2.0

FY 04
322.67
477.23
1.5
3.4
2.0

FY 03
258.6
502.2
4.1
1.3
0.4

FY 02
240.9
509.4
4.2
1.3
1.0

* Based on Annualized figures

Strengths/Opportunities
1. Strong and high caliber management team with a proven track record.
2. Solid improvement in business and financial operations, in light of the sales restructuring plan, which took place in
early 2004.
3. The introduction of new drugs is anticipated to improve the companys cash flow and financial position.
4. Well diversified product mix, with no single concentration higher than 15% of total sales.
5. Relatively strong portfolio in the pipeline.
6. High demand for Amoun products, as a result of the high quality of its products and their reasonable prices.
7. Large hidden value in the state-of-the-art factory.
8. Health expenditure in Egypt is below average compared to other countries in the region, which gives more room for
potential growth.

Challenges/Risks
1.
2.
3.
4.
5.

Although cash flow improved, liquidity is still to some extent constrained.

Exposed to foreign exchange risk, coupled with unclear hedging policy.
High receivables concentration risk (more than 90% through a sister company).
No clear succession plan.
Although, MOH has shown signs of flexibility in its pricing system, the domestic pharmaceutical industry is still a
highly regulated industry and also subject to political influence.

MERIS Analysis 1

Middle East Rating & Investors Service

Corporate
Credit Analysis
September 2005

COMPANY FUNDAMENTALS
Amoun Pharmaceuticals Co. ("Amoun"), in El-Obour City, Egypt, is one of the best known pharmaceutical companies in
the domestic market with around 5.5% market share in June 2005 up from 4.62% in 2003 (according to IMS-HealthCare, the worlds leading provider of information on the global pharmaceutical and healthcare industries)1. Amoun owns
a state-of-the-art factory designed by John Brown Construction Co. in Chicago according to the US Food & Drugs
Administration (FDA) requirements. Amoun establishment roots back to the 70s, when Dr. Sarwat Bassily established
the first private sector pharmaceutical company in Egypt, which took over the importation and distribution activities for
pharmaceutical products in Egypt. Going forward, in 1985 he established "Advanced Biochemical Industries (ABI)"
which was sold in 1989 to Glaxo. In 1991, the second factory Amoun Pharmaceutical Industries Company (APIC) was
established and was again sold to GlaxoWellcome Egypt in 1998, in a deal valued at EGP 427mn, which was one of
the biggest deals on Cairo & Alex. Stock Exchange at that time. Around 8% of the deal was against total assets, while
the balance was the selling price of 25 generic products. At that time APIC ranked the fourth company among the
Egyptian pharmaceutical companies. Finally, Amoun Pharmaceutical Company the company under consideration
(Amoun) was launched in 1998 as a joint stock company. Since 1985 and until today, Amoun has been the fastest
growing pharmaceutical company in Egypt, and it ranked the second player in the current year (fifth player last year) in
the local market. It is worth noting that the company has been recognized by UNIDO in 1997, as one of the most
innovative and successful companies in Africa; Amoun is the sole pharmaceutical company in Egypt to be granted this
certificate. Moreover and in line with Amoun strategy to build its quality and credibility by pursuing high international
standards, the company has been awarded a number of certificates, namely; ISO 9001, ISO 14001, ISO 18001 and BS
7799. Most of these certificates recognize its ability to manufacture products according to international standards.
Amoun holds a very broad product portfolio, containing a mix of human, veterinary and additive nutrient products. The
human drugs account for most of the production mix, with nearly 375 out of 460 products in 1H05, compared to 333 out
of 416 in mid 2004. The human category includes products in many different pharmaceutical formulations including
capsules, tablets, dry syrups, powders, effervescents, syrups, solutions, drops, creams, suppositories, sprays, besides
sterile products such as ampoules, vials, sterile drops and ointments. On the other hand the company maintains a good
market position across many diverse therapeutic classes, especially in vitamins & minerals, cardio-vascular, antacids &
anti-ulcer and antibiotics plus other areas, backed by a large sales force and impressive marketing team allowing the
company to effectively compete against multinational companies. Amoun produces a number of drugs under license
from multinational companies, such as Merck (Germany), Rowa Wagner (Germany) and Leurquin (France), as well as
Sanofi (France) for some veterinary products.

Hum an Sale s Bre ak dow n by The rape utic Cate gory

70,000
60,000
50,000
40,000
30,000
20,000
10,000

Jun-05

Dec-04

O
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er
s

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m
in
A
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&
ib
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D
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os
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s

Dec-03

Note: The above graph contains breakdown for 40 drugs, which represent 80% of total sales, while others include the remaining balance.
June figures is based on six months results

MERIS Analysis 2

Middle East Rating & Investors Service

Corporate
Credit Analysis
September 2005

CREDIT STRENGTHS / OPPORTUNITIES

SALES RESTRUCTURING PROGRAM BASED ON HIGHER PROFITABLE DRUGS STARTED TO REAP
FRUIT
Group 1
Growth rate
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Group 2
Growth rate

> 21%

Concor
Neuroton
Hibiotic
Haema-caps
Xenus
Kerovit
Nalufin
Erypoetin
Urivin
Ultrasolv
Levoxin
Hi-Chrome
Fladazole
Vermizole

1
2
3
4
5
6
7
8
9

Group 3
Growth rate

16% - 20%

Antodine
Ketolgin
Gast-reg
Melocam
Cal-heparine
Mosedin
Kapron
Aqua-Vera
Allerfen

1
2
3
4
5
6
7

Group 4
Growth rate

11% - 15%

Antinal
Vitamount
Apidon
Xethrone
Lactodel
Stimulan
Cyrinol

1
2
3
4
5
6
7
8
9
10

5% - 10%

Telebrix
Ibiamox
Alphintern
A-Chemotrypsin
Rowatinex
Rowachol
Rowabraxin
Michaelon
Philozac
Zolam

In early 2004, Amoun management started implementing a new sales strategy focusing on the most profitable drugs
with higher growth potential, while at the same time, gradually eliminating those with low profitability margins. According
to the new re-ordering plan, the total number of drugs constituting the majority of sales (almost 80% of total sales) is
divided into 4 sub-groups as shown in the table below. As the above table illustrates, these groups are broken down
according to different projected growth rates: Group 1 includes 14 drugs with more than 21% growth rate, Group 2
includes drugs with a growth rate between 16% and 20%, Group 3 consists of drugs with a growth rate of 11% to 15%
and finally the last group contains drugs growing within 5% to 10% growth rates. This scheme started to reap fruit,
which was reflected into the notable improvement in Amouns operations and financial performance. As such, turnover
has shown almost 25% increase between year 2003 and year 2004. In our view, this restructuring plan appears
promising with a positive impact on the companys operations.
Top Ten Pharmaceutical Products
Figures in EGP mn

Product

Indication

Sales
1H05

% of
Total

Sales
2004

% Of
Total

% Sales
Growth*

1- Concor

Cardiovascular

25.48

13.0

32.88

10.0

55%

2- Neuroton
3- Hibiotic

Vitamins & Tonics

Antibiotics & Antifungal

11.18
8.03

6.0
4.0

14.82
13.95

5.0
4.0

51.0
15.0

44.69

22.0

61.65

19.0

45.0

7.76
7.2

4.0
4.0

13.44
10.9

4.0
3.0

15.0
32.0

Sub Total (Top 3 Drugs)

4- Antodine
5- Antinal

Antacids & Anti-ulcer

Gastrointestinal

Sub Total (Top 5 drugs)

59.65

30.0

85.99

27.0

39.0

6- Vitamount
7- Ibiamox

Vitamin & Mineral

Antibiotics & Anti fungal

7.15
5.07

4.0
3.0

11.82
8.78

4.0
3.0

21.0
15.0

8- Alphintern

Analgesics

5.01

2.0

9.06

3.0

11.0

9- Rowachol

Gastrointestinal

4.04

2.0

5.86

2.0

38.0

10- Alpha - Cymotryspin

Analgesics

4.0

2.0

10.6

3.0

(24.0)

84.92

42.0

132.11

41.0

All other pharmaceuticals

116.75

190.56

59.0

29.0
23.0

Total pharmaceuticals
* Based on Annualized Assumptions for 1H05

201.67

58.0
100.0

322.67

100.0

25.0

Subtotal

Type of the product

Under license from AGMerck
Generic Product
Generic Product
Generic Product
Under
License
Lab.Roques, France

from

Generic Product
Under License from Istituto
Biochemico Italiano (IBI)
SpA
Under
license
Lab.
LEURQUIN, Paris
Under
License
from
ROWA-WAGNER,
Germany
Under
License
from
LEURQIN, France

MERIS Analysis 3

Middle East Rating & Investors Service

Corporate
Credit Analysis
September 2005
PRODUCTS NEWELY LAUNCHED, COUPLED WITH THE INCREASE IN SOME DRUGS SELLING
PRICE ARE EXPECTED TO HAVE A POSITIVE IMPACT ON TURNOVER
The company is planning to introduce 11 new generic drugs during year 2005 six of which have been already
introduced by August 2005 in several pharmaceutical forms and therapeutic categories. Moreover, the company has
received the registration approval for a number of drugs from the Ministry of Health (MoH) during the last year. Between
2004 and early 2005, MoH has permitted the increase in the selling prices of some of Amouns foremost drugs (on
average +50%), in addition to the pricing of approximately 60 new drugs. In MERISs view, the above-mentioned
actions will have a positive impact on the companys business operations and will lead to better performance.
According to management, the growth drivers for the company in the medium term will include:
Concor an under license drug from AG-Merck, falls under the Cardiovascular class and generated EGP
32.9mn in 2004 (around 10% of total human sales). Concor was introduced in year 2000 and has succeeded in
capturing high market share; according to IMS statistics, it ranks number 1 amongst its peers. This drug will
remain the largest contributor to total sales in the new plan and is anticipated to report more than 30% growth
rates.
Neuroton is a generic product under the Vitamin & Mineral category, the drug reports around EGP 15mn
sales in FY04, and is the second player in the new program. Neuroton ranks number 1 amongst its peers in the
same category. The vitamins and minerals therapeutic class represents the main franchise of Amoun.
Hibiotic is a generic product, falls under the Antibiotics and Antifungal class and targets the upper and lower
respiratory tract infections as well as gynecological, soft tissues and dental infections. It accounts for
approximately 4% of total sales in 2004. Hibiotic comes in two forms; tablets with three strengths and
suspension.
Antodine is a generic product and comes under the Antacids & Anti-ulcer category, reporting almost 4% of
total sales in FY04 and 1H05. This drug ranked the second among its peers.
In addition to the abovementioned drugs, Amoun will depend on another drugs in the coming period including,
Antinal, Alphintern, Alpha Chymotrypsin, Rowachol, Gasterg and Nalufin.

A RELATIVELY STRONG PRODUCT PORTFOLIO IN THE PIPELINE AND UNDER-REGISTERATION

PRODUCTS
Since 1999, Amoun has had a powerful track record in launching new drugs. Hence, it succeeded in introducing/
registering annually 27 new drugs on average (in terms of new pharmaceutical representation and new human drugs).
As of June 2005, the company has 94 products registered with MoH and priced, but not produced yet. It is worth
mentioning that almost 25% of said products are in the latest stage of production. Moreover, there are another 120
products in the pipeline, which are approved by MoH and are currently under registration. In terms of veterinary drugs,
at present the company has 22 drugs in the pipeline, 13 drugs of which are under registration. Considering these
factors, we believe that Amoun has a relatively strong and well designed portfolio to build on for its future growth.

MORE FOCUS TOWARDS EXPORT MARKETS

During last year, Amoun accomplished a new strategy to focus gradually on export sales in order to diversify its market
base and mitigate the foreign currency exposure. As such, management has identified a number of targeted markets
including, Yemen, Sudan, Qatar, Armenia, Tanzania, Ghana, Romania and others. The company has succeeded in
registering 228 drugs in different countries in year 2004, a figure which is anticipated to jump to 725 drugs by year 2007.
In our view, it remains somewhat early to measure the success of this strategy, especially in light of the minor share of
export sales in total sales in FY04. However, according to management, this plan is anticipated to reap fruit starting
from next year and to reach 15% of total sales over the coming 5 years.

HIGH CALIBER MANAGEMENT IN THE CHAIRMAN OF THE COMPANY AS WELL AS SENIOR

MANAGEMENT
Dr. Bassily and his family, the main shareholder, retain more than 92% of the companys shares. Dr. Bassily is
considered one of Amouns main assets given his long track record in the field. As previously mentioned, this includes
the successful establishment of three pharmaceutical companies. Ever since the start of his career, Dr. Bassily has
maintained the highest standards in his companies operations and has supported this by recruiting the highest quality
managers. Most of the top management used to work with the Chairman at ABI and APIC and chose to continue in
MERIS Analysis 4

Middle East Rating & Investors Service

Corporate
Credit Analysis
September 2005
Amoun. Senior management is being supported by extremely active marketing and sales teams, excellent planning
department and a disciplined, professional production team. On the other hand, Dr. Bassily is a political figure being the
Deputy of the Drugs Committee in the Shura Council and the Head of the Pharmaceutical Committee in the Egyptian
Industrial Union. His long experience and credibility in the industry enabled him to gain such respect. Moreover, being
close to policy makers enables him also to convey the main problems hitting the pharmaceutical sector in Egypt.

STRONG MARKETING AND DISTRIBUTION TEAM

Amoun has a strong ability to develop and market several therapeutic categories through a competent marketing team
and sales force equipped with a state-of-the-art order taking system (mobile data terminal). According to latest IMShealth report, Amoun continued to rank the first player in Egypt in terms of numbers of promotion calls, number of
prescriptions by doctors and number of new drugs launched. Furthermore, the estimated total products in Egypt are
6,600 products, 160 of which are top products. Amoun dominates 6% of these top products.
The table below illustrates the high efficiency of the marketing team, which was reflected into succeeding in maintaining
the highest rank among the peer group in a relatively short period.
Therapeutic class

Drug

Date of
introduction

Rank /Number of
competitive drugs in the
same segment

Cardio-vascular

Concor (AG-Merck-under
license )

2000

No.1 of 17 (up from 15 in

the last year)

Antacids

Antodine (Generic)

1994/2003

No. 2of 28 (up from 23 in

the last year)

Vitamins

Neuroton (Generic)

2000/2003

No.1 of 21

Antibiotics

Hibiotic (Generic)

2000

No. 7 of 44

Main competitors
drugs in the same segment
Tenormin (Under License (UN-L) Astra
Zenica ),
Blokium (UN-L of Brodiese )
Zantac
(UN-L
of
GlaxoWelcome),
Rantidol (Nasr Phar, Compnay)
Becozyme (UN-L of Roche)
Beco (Misr Ph. Company)
Flumox (EIPICO)
Augmentin (UN-L of Smithkline Beecham)

LARGE HIDDEN VALUE MANIFESTED IN AL-OBOUR PLANT

The companys sole plant, which is located in Al Obour city spanning around 65,969 square meters, is considered a
state-of - the - art factory designed by John Brown Chicago, according to FDA requirements. The facility is one of the
most sophisticated plants in Egypt. It is also the only factory which has a separate area for producing and storing
antibiotics drugs. The plant is divided into three production areas: solid, semi solid and sterile, the majority of which is
automated. On the other hand, the plant facilities are supplied by reputable global manufacturers, for example Bosch
(Germany), Glatt (Switzerland), Diesel (Germany), Norden (Sweden) and Zanchetta (Italy). These facilities have been
supplied under special terms, conditions and deep discounts sometimes reaching 50% discount granted mainly to
Amoun, capitalizing on the Chairman's long track record and reputable name in the pharmaceutical industry. The initial
investment cost was EGP 200mn, while the current market value will be higher reflecting the abovementioned
discounts, as well as the deep gradual depreciation of the local currency against the US$ and EURO (YE99: 3.4 and
3.3, respectively, compared to 5.7 and 7.0, respectively, as of August 2005). The current utilization rate is around 90%
of the designed capacity (based on one shift), which gives room to easily increase the production volume without
bearing extra costs. It is of note that the company is in the process of issuing a EGP 150mn long-term bond. This issue
will be secured by all the tangible assets of the above-mentioned plant.

CREDIT WEAKNESSES / CONCERNS

Business Risk Factors:
CHALLENGES FACING THE DOMESTIC PHARMACETUICAL INDUSTRY PUT PRESSURE ON
OPERATING MARGINS
There are two main challenges facing the Egyptian pharmaceutical industry, mainly represented by the effect of the
GATT and TRIPS agreements that took place in early this year. So far, these agreements have not shown a notable
impact on the domestic pharmaceutical industry. In Dr. Bassilys view, the effect of the GATT and TRIPS on the
domestic market will be minimal prior to 2015, taking into consideration that around 90% of the domestic drug portfolio
is non-patent drugs; in other words the drugs, which will be developed after 2005, will be affected badly by the TRIPS.

MERIS Analysis 5

Middle East Rating & Investors Service

Corporate
Credit Analysis
September 2005
The other main challenge facing the industry is the tightly controlled regulatory environment, coupled by an inelastic
pricing mechanism. However, MoH has shown some signs of flexibility in terms of selling price increases; though the
industry would like to have greater freedom. However the pharmaceutical industry globally is tightly regulated and it
seems unlikely that Egypt will introduce significant policy changes.

Financial Risk Factors:

Significant Improvement in Profitability and
Revenue and Profitability
Margins
Figures in EGP mn
In FY04, Amoun reported revenues of around
EGP 322.7 mn, compared to EGP 258.6 mn in
Revenue
FY03. Going forward, in June 2005 and on a Y-oGrowth (%)
Y basis, the company has succeeded in reporting
70% revenue growth. The significant improvement
EBITDA
EBITDA Margin (%)
in turnover was mainly due to the restructuring
plan, which we discussed earlier and was reflected
Operating Profit
into the improvement in liquidity position.
Operating Profit Margin (%)
Meanwhile, margins have shown notable growth in
Account Receivables DOH
the same period as a result of many factors
including the focus on new products with high
Net Income
margins and increasing the selling prices of a
Net Income Margin (%)
number of drugs. This is in addition to the
appreciation of the local currency, coupled with the
introduction of the new tax law, which had an impact on the cost structure.

1H05

FY04

FY03

FY02

201.7
n.a.

322.7
24.8

258.6
7.3

240.9
13.0

72.2
36.0

90.7
28.0

58.4
23.0

90.7
26.0

67.1
33.3

79.7
24.7

47.4
18.3

51.3
21.3

134.9

169.1

190.4

240.7

59.5
29.0

53.0
16.0

3.9
2.0

2.7
1.0

It is worth noting that more than 90% of the distribution activities are done through Amoun for Distribution Company, a
sister company wholly owned by Dr. and Mrs. Basiliy. The accounts receivable days on hand have shown signs of
recovery backed by the better collection policy, which the company has applied lately. Management foresees that this
figure will continue improving in the future to reach 120 days, backed by the efficiency of the new collection policy, in
addition to the new strategy applied to export sales, where all export sales are done on a cash basis.
Cash Flow & Coverages
Figures in EGP mn

EBITDA
Tax
Interest Paid
CAPEX
Dividends Paid
Net Free Cash Flow
Retained Cash Flow
Cash coverage
EBITDA / Interest Expenses (X)

1H05

FY04

FY03

FY02

72.2
0.0
(12.4)
(5.4)
(9.3)
45.1

90.7
0.0
(26.7)
(13.1)
0.0
50.9

58.4
0.0
(46.0)
(11.8)
0.0
0.6

62.7
0.0
(48.8)
(22.2)
0.0
(8.3)

64.6
2.1
5.8

64.0
1.9
3.4

14.9
0.4
1.3

14.1
1.1
1.3

Enhancement in the Companys Cash Flow,

Nonetheless Liquidity Remained Constrained
Despite the improvement in cash flow measured
by net free cash flow and retained cash flow in
FY04 and 1H05, the cash coverage ratio, although
improved, remained somewhat low. As we
mentioned earlier the increase in cash flow was
mainly due to the positive impact of the
restructuring scheme, which was reflected in
higher production/ utilization rates.

High Exposure to Foreign Exchange Risk

Amoun is highly exposed to foreign currency risk, due to the fact that around 80% of raw materials are imported. At the
same time, the revenue in foreign currency is considered insignificant, around 1% of total sales in 2004, which
increases this inherent risk. In order to mitigate this exposure, the company is planning to increase export sales to
approximately 15% of its total sales over the coming 5 years. As such, management has started intensive registration
activities in several countries in the Middle East, Africa and Eastern Europe.

MERIS Analysis 6

Middle East Rating & Investors Service

Corporate
Credit Analysis
September 2005
Financial Leverage
Figures in EGP mn

1H05

FY04

FY03

FY02

Short-term Debt
Long-term Debt
Total Financial Debt

122.8
18.9
141.7

101.6
30.7
132.3

211.9
23.7
235.6

229.0
33.3
262.3

Shareholders Loans
Lease Obligations and others
Contingent Liabilities and Guarantees
Total Adjusted Debt
Cash and Cash Equivalent
Net Adjusted Debt

41.7
11.5
45.5
240.4
3.2
237.2

56.5
4.3
39.0
232.1
2.6
229.5

35.2
6.9
0.0
277.7
1.0
276.7

23.2
6.6
0.0
292.1
2.9
289.2

Equity

273.3

244.2

191.1

186.5

88.0
45.5
27.2
34.0

95.0
48.4
27.9
39.5

145.3
6.3
5.4
6.1

156.6
5.3
4.9
10.1

Adj. Debt / Adj. Capitalization

RCF / Total Financial Debt (%)
RCF / Net Adjusted Debt (%)
Free Funds / Net Adjusted Debt (%)

Improvement in the Companys Credit

Metrics
Although net adjusted debt in 1H05, has
decreased slightly, it remained far below
FY03 levels. Meanwhile, the companys
credit metric is considered healthy as it
continued to show an upward trend, mainly
due to the improvement in the retained cash
flow figures. Nonetheless, we believe that
there is a clear tenor mismatch in the
company's debt structure, given that most of
its initial investment cost and expansion
plans were financed through short term
debt. As of June 2005, the short term
facilities account for approximately 85% of
the total debt. Furthermore, as of June 2005,
Amoun has access to additional credit
facilities equivalent to approximately EGP
61mn sourced from nine local banks.

Proposed Bond
Amoun; intends to issue an EGP 150mn, seven-year bond with two year grace period. The issue will be non-convertible
and callable starting the beginning of the second year. A prepayment penalty of 1.5% will be applicable for exercising
this option in the third year and 1% in the third year. The bond is planned to replace all of the outstanding medium and
short term loans and to release all security that was mortgaged to lenders. The issue will be guaranteed by all the
tangible assets of the factory located in Al -Obour City.
The planned bond issue, in our view, will have a positive impact on both the debt structure and cash generative ability.
With regard to the debt profile, it is anticipated to bring the short tern debt to long-term debt ratio to less than 20%.

MERIS Analysis 7

Middle East Rating & Investors Service

Corporate
Credit Analysis
September 2005

Rating Outlook
The fundamental factor supporting the positive outlook is significant improvement in the companys business and
financial profile.

What Could Change the Rating - UP

Amoun rating may undergo an upgrade in case the company continued reporting growth in sales and profits and
success in export markets.

What Could Change the Rating - DOWN

Inability to maintain the existing market position, in addition to further challenges from the regulatory bodies, which could
execute more pressure on Amouns business operation. On the other hand, any future depreciation of the local
currency, could adversely affect the companys business operation and consequently put more pressure on its financial
performance.

MERIS Analysis 8

Middle East Rating & Investors Service

Corporate
Credit Analysis
September 2005
Annex 1: Amoun Pharmaceutical Company (Amoun) Summary Financial Results
(EGP mn)

30/6/2005

31/12/ 2004

31/12/2003

31/12/2002

31/12/2001

Income Statement
Turnover
Growth Profit Margin (%)
EBITDA
EBIT
Interest Incurred
Net Income

201.7
36.0
72.2
67.1
0.0
59.5

322.67
28.0
90.7
79.7
0.0
53.0

258.6
23.0
58.4
47.4
0.0
3.9

240.9
26.0
62.7
51.3
0.0
2.7

213.2
30.0
63.0
19.5
0.0
(31.7)

Balance Sheet
Cash and Equivalents
Total Assets

3.2
523.5

2.6
477.2

1.0
502.2

2.9
509.4

6.4
514.3

Short-Term Debt
CPLTD
Medium-Term Debt
Long-Term Debt
Leasehold Improvement (short/Long)
Others
Total Liabilities

90.6
32.2
17.1
1.9
9.5
2.0
153.3

66.9
34.6
25.5
5.2
1.5
2.8
136.5

176.4
35.5
17.0
6.6
2.8
4.1
242.4

195.8
33.2
33.3
0.0
1.4
5.2
268.9

190.5
34.3
22.2
15.1
0.0
5.1
267.2

41.7
200.0
273.26

56.5
200.0
244.2

35.2
200.0
191.1

23.2
200.0
186.5

19.4
200.0
183.8

18.3
79.4
(5.4)
0.0
(12.4)
0.0
(9.3)

99.4
97.6
(13.1)
0.0
(26.7)
0.0
0.0

35.1
19.1
(11.8)
0.0
(46.0)
0.0
0.0

20.7
31.6
(22.2)
0.0
(48.8)
0.0
0.0

-22.3
20.7
(23.9)
0.0
(47.3)
0.0
0.0

22.7
43.5
35.9
29.5

10.8
24.4
28.1
16.4

0.8
2.1
22.6
1.5

0.5
1.5
26.0
1.1

-6.4
(15.9)
29.5
(14.9)

74.0
134.9
0.6
2.0

42.0
172.7
0.6
2.0

61.0
190.4
0.2
0.0

63.0
240.7
0.6
1.0

73.0
259.7
1.2
2.0

5.8
56.0
55.0
2.0

3.4
56.
55.8
1.5

1.3
126.9
126.0
4.0

1.3
144.2
143.1
4.2

1.3
145.0
142.0
4.2

Shareholder Current Account

Common Equity
Net Worth
Cash Flow
Cash Flow from Operations (CFO)1
Funds From Operation (FFO)2
Capital Expenditures
Acq. & Divest., Net
Financing Cost
Equity Raised
Dividends
Profitability Ratios
Return on Assets (%)
Return on Equity (%)
EBITDA Margin (%)
Net Profit Margin (%)
Liquidity Ratio
N. Receivables/ Revenue (%)
Receivables Days on Hand
Cash & C. Equivalent/Total Assets (%)
Cash & C. Equivalent/C. Liabilities (%)
Coverage Ratios
EBITDA/Interest Expense (x)
Net Adjusted Debt/Equity (%)
Net Liabilities/T. Equity (%)
Bank Debts/EBITDA

MERIS Analysis 9