MM Group For Industry And International Trade (SAE) Cai ro- Egypt

Separate Financial Statements For The year ended 31 December 2018

With Auditors review Report

Contents

Auditors review report 3-4

statement of financiar position 5

statement of income (Profit and loss) 6

statement of comprehensive Income 7

statement of in equity 8

SPlrIrYP statement of cash flows 9

Notes to the financial statements 10-26

2 of 26

Contents

Auditors review report 3-4

statement of financiar position 5

statement of income (Profit and loss) 6

statement of comprehensive Income 7

statement of in equity 8

SPlrIrYP statement of cash flows 9

Notes to the financial statements 10-26

2 of 26

l MOORE STEPHENS

EGYPT punLiC ACCOUNTANTS amp CONSULTANTS

5 AI Ahram St Roxy Heliopolis Cairo 11757 - Egypt

T +2(0) 20 22900751- 22916344 F +2(0) 20 24151303

wwwmoorestephensegyptcom

Auditors Review Report

TO The Shareholder OF IVIM Group For Industry And International Trade Egyptian Jo~nt Stock Company

Report on the financial statements

We have audiied the accompanying separate financial statements of MM Group for Industry and International Trade Company (SAE) which comprise the separate financial position as of 31 December 2018 and the separate income statement separate statement of comprehensive Income separate statement of changes in equity and separate statement of cash flows for the financial year then ended and a summary of the significant accounting policies and other explanatory notes

Managements responsibility for the financial statements

These financial statements are the responsibility of companys management Management is responsible for the preparation and fair presentation of these financial statements in accordance with the Egyptian Accounting Standard and in the light of the prevailing Egyptian laws management responsibility includes designing implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error management responsibility also includes selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances

Auditors responsibility

Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with the Egyptian Standards on Auditing and in the light of the prevailing Egyptian laws Those standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditors judgment including the assessment of the risk of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements

Opinion

In our OpiniOn the separate financial statements referred to above present fairly in all material respects the financial position of MM Group for Industry and International Trade Company (SAE) as of 31 December 2018 and its financial performance and its cash flows for the year ended in accordance with the Egyptian Accounting Standard and the Egyptian laws and regulations relating to the preparation of these financial statements

Page 3 of 26

l

MOORE STEPHENS r

EGYPT PUBLIC ACCOUNTANTS amp CONSULTANTS

Report on the legal requirements and other regulations

The company maintains proper books of account which include all that is required by law and by the statutes of the Company the financial statements are in agreement there to The inventory count was performed by the Companys management in accordance with the methods in practice

The financial information included in the board of directors report is prepared in accordance with Law No 159 of 1981 and its executive regulations and is in agreement with the companys books of account

Cairo 27 February 2019

Sherin Noureldin

RAA 6809 Egyptian Financial Supervisory Authority Register Number 88 Moore Stephens Egypt

Page 4 of 26

rvIM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Financial Position

Assets Notes 31122018 31122017

Non-current assets EGP EGP

Fixed assets (4) 58721 549 41 569527

Investments property (5) 2298477 2768502

Projects under construction (6) 402350 1

Investments in subsidiaries and associates (7) 356129270 91 001 285

Investments available for sale (8) 133778 556087

Deferred Tax asset 8938

Total non-current assets 417694362 135895402

Current assets

Inventory (9) 519959879 519100456

Receivables amp Notes Receivables (10) 326764400 375388542

Due from related parties (11-1 ) 9651016 44236885

Suppliers Advance payments 250097384 212898859

Debtors amp other debit balances (12) 81 113848 72 365 676

Non-current assets held for sale (13) 21 246940

Investments at fair value through profit and loss (14) 89849390 236311 963

Cash on hand and at banks (15) 91 420491 158467208

Total current assets 1 368856408 1 640016529

Total Assets 1 786550770 1 775 911 931

Equity

Issued and paid up capital (16) 306900000 245520000

Legal reserve 32294029 18708840

General reserve 64462273 64462273

Investments revaluation reserve (8) (109950) (206005)

Retained earnings 276127874 136683500

Profits For the year 258432042 271 703771

Total Equity 938106268 736872379

Non-current liabilities

Deferred tax liability 43508

Total Non-current liabilities 43508

Current liabilities

Provisions (17) 28955382 38120574

Credit banks 178210205 26729207

Due to related parties (11-2) 174186172 248591 003

Customers Advance payments 118917365 78459042

Suppliers amp Notes payables (18) 289505213 545906754

Accrued income tax (19) 9849886 73143008

Creditors amp other credit balances (20) 48820279 28046456

Total current liabilities 848444502 1 038996044

Total equity and liabilities 1 786550770 1 775911 931

- The accompanying notes are an integrated part of the separated financial statements - Auditors report attached

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

fSM~~~ O~~ Page 5 of 26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Income (Profit and Loss)

Notes 31122018 31122017

EGP EGP

Net Sales (21 ) 6820352322 6123957199

(Less)

Cost of sales (22) (6329796618) (5695317244)

Gross profit 490555704 428639955

(Less)

Sales ampdistribution expenses (23) (161 308369) (131 091 613)

General ampadministrative expenses (24) (5026938) (7009727)

Depreciation of administrative assets (21 675) (63070)

Impairment of inventory (1 028446)

Impairment of receivables amp notes receivables (788034)

(138164410)Total expenses ( 168 173462)

290475545Net operating profits 322382242

Add 1(Less)

Gain from associated companies 16875000

Takaful contribution for health insurance (8182905)

Income from investment property 6459538 6869892

Investment property Depreciation (470025) (470025)

(loss) 1Gain from Investments at fair value through profit

and loss (5081 541) 24097942

Gain From sale Investments available for sale 42010 1 362

Finance expenses (15 591 566) (3964100)

Credit interest 7263419 7806067

Provision (17) (805382)

Provisions no longer required (17) 9970574 40029426

Foreign currency exchange (loss) I Gain (3424259) (20061 255)

Net profits for the year before taxes 329437105 344784854

(Less) 1Add

Income tax (19) (71 057509) (73143 008)

Deferred tax 52446 61 925

Net profits for the year after taxes 271 703771258432042 Earnings per share (EGP 1share) (25) 047 056

- The accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 6 of 26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Comprehensive Income

Net profits for the year after taxes

Add

Other comprehensive Income

Available for sale investments (Net Change in fair value)

3111212018 31122017

EGP EGP

258432042 271 703771

96055 110799

Comprehensive income for the year 258528097 271 814570

- accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud Osama Fat~_--r 11_

~~

Page 7 of 26

--

IVIIVl Group for Industry and International Trade (SAc) Separate Financial statements for the year ended 31 December2018

Separate statement of Changes in Equity

Investments

Paid-up Legal General revaluation Retained Profit for the Description Capital Reserve Reserve reserve earnings year Total

EGP EGP EGP EGP EGP EGP EGP Balance as of January 1 2017 245520000 9816917 64462273 (316804) 177 838457 175126164 672447007 Retained earning (175126164) (175126164)

Transferred to legal reserve 8891 923 (8 891 923)

Dividends distribution (32263034) (32263034)

Comprehensive Income 110799 271 703771 271814570

Balance as of 31 December 2017 245520000 18708840 64462273 (206005) 136683500 271 703771 736872 379

Balance as of January 1 2018 245520000 18708840 64462273 (206005) 136683500 271 703771 736872 379

Retrained earning 271 703771 (271703771)

Additional paid in capital 61 380000 (61 380000)

Transferred to legal reserve 13585189 (13585 189)

Dividends distribution (50396116) (50 396 116)

Retained earnings adjustment (6898092) (6898092)

Comprehensive Income 96055 258432042 258432042

Balance as of 31 December 2018 306900000 32294029 64462273 (109950) 276127874 258432432 938106268

The accompanying notes are an integrated part of the separated financial statement

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud Osama Fathy

~~~~~amp ~~

Page 8 of26

IVIM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Cash Flows Notes

Cash flows from operating activities

Net profit before income tax

Adjustments to reconcile net profits to cash flows From operating

activities

Gain from associated companies

Fixed assets depreciation (4)

Investment Property depreciation (5)

Impairment of inventory

Impairment of receivables amp notes receivables

Retained earnings Adgustement

Provision (17)

Provisions no longer required (17)

(loss)Gains from investments at fair value through profit and loss (14)

Gain From sale Investments available for sale (8)

Finance expenses

Credit interest

31122018

EGP

329437 105

(16875000)

9487801

470025

1 028446

788034

(6898092)

805382

(9970574)

5081 541

(42010)

15591566

(7263419)

31122017

EGP

344784854

8880771

470025

(40029426)

(24097942)

3964100

(7806067)

Net Operating income 321 640805 286166315

Change in inventory (9) (1 344070) (230 943 151)

Change in Receivables and notes receivables (10) 47836108 (46798191)

Change in due from related parties (11-1) 34585869 (42687617)

Change in Suppliers Advance payments (37198525) (147437344)

Change in Debtors and other debit balances (12) 8 126828 (34741 493)

Change in suppliers amp Notes payables (18) (256401541) (299 898 055)

Change in Due to related parties (11-2) (74404 831) (7718795)

Change in Customers Advance payments 40458323 56345820

Change in creditors and other credit balances (20) 19648426 (27463284)

Cash flows (used in) operating activities 102947392 (495175795)

Paid Income Tax (134350631) (102012 702)

Used from impairment (543799)

Paid Debit Interest (15591 566) (3964100)

Net Cash flow provided by operating activities (47538604) (601 152597)

Cash flows from investment activities

(Payments) for purchase of fixed assets and projects under construction (4) (19269772) (19795923)

(Payments) for Investments in subsidiaries and associates (7) (265 127 985) (33388600)

Proceeds for purchasing non-current assets held for sale (13) 21 246940 (21 246940)

Proceeds from credit interest 7263419 7806067

Change in Investments at fair value through profit and loss (14) 141 381 032 338824694

Proceeds from Investments Available for sale (8) 560374 123 112

Net cash flows used in investment activities (113945992) 272322410

Cash flows from financing activities

(Payments) 1 Proceeds from credit banks 151 480998 24659688

Dividends distribution (57043119) (62273509)

Net cash flows provided by financing activities 94437879 (37613821)

Net change in cash and cash equivalents during the year (67046717) (366444008)

Cash and cash equivalents at the beginning of the year 158467208 524911 216

Cash and cash equivalents at the end of the year (15) 91420491 158467208

The accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Jl~~

MM Group 18Financial poundTT

International Trade (SAE) 31

Notes To The Separate Financial

1 About The company

a) Companys background

is established under the Law No159 of 1981 and of law No 95 of 1992 and its executive

MM Group for Industry and International Trade its executive regulations and the and has been registered in the -TIrYIOCfi1 under No609 10 of Ramadan city on

Based on a held on April 5 2016 the decree of the for investment and free zones no 6382 year 2016 which decided to split the company into shy

for the industry and international trade (SAE) (Splitter) company (SAE) (Splitted)

of the company at book value on the Companys financial statements at December 31 2015 to assess the assets and liabilities of the company for the purpose of and it was in the comercial on december 29 2016

According to the of 30of the shares of MM

PYfrrflln as of January 6th 2017 that agree to make an Initial for industry and international trade company in the

stock market on 1 2017

b) Companys purpose

tractors and related equipment loaders overhauls (b) maintenance installation and

cars agricultural tractors and related all spare maintenance and other related

equipping which is exported by the company

producing the production supplies to serve the Companys purposes

Importing all and products authorized for import in accordance to the Law

utilizing commercial for trading in electronic devices related to remole and providing technical technological services trading of telecommunication devices and mobile phones and the maintenance and repair thereof through specialized service centres

the sale and purchase of real estate properties land and movable assets to serve the Companys purposes for areas mentioned in the Ministerial Decree No 12 of Law No 94 of as well as the Sinai

and Shalateen which requires a prior approval from GAFIs -hirrnCl

split air conditioners and mobile phones in one of the new industrial areas

and products authorized for export in accordance to the Law

and mentioned as a part of the purpose including vehicles

fork and loader

Sale of mobile aelces lines and mobile recharge cards

Sale of electrical and non-electrical household appliances

The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in or abroad The may also merge with

or such entities according to the provisions of the Law and its Executive Regulations

Page 10 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December20 18

1 About The company (followed)

c) Companys location

The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo

d) Companys Duration

The companys duration is twenty-five years from the date of registration in the commercial register the fiscal year for the company begins on the 15t of January and ends on December of each year

e) Approval of the financial statements

The financial statements of the Company for the year ended 31 December 2018 were authorized for issuance in accordance with a decree of the board of directors held on 27 February 2019

2 Basis for preparation of financial statements

21 Commitment to accounting standards and laws

These financial statements have been prepared in accordance with the Egyptian Accounting Standards and

prevailing the Egyptian laws and regulations

22 Disclosure and presentation currency

The financial statements are presented in Egyptian Pound which is the Companys functional currency

23 Use of estimates and judgments

The preparation of the financial statements in conformity with the Egyptian Accounting Standards requires

management to make estimates and assumptions that affect assets and liabilities income and expenses during

the financial period

Actual results may differ from these estimates The estimates and assumptions are reviewed on on-going basis

and proving the effects of this modification of the accounting estimates in the period in which estimates are

revised and future periods that Would be affected by such modifications

The assumptions and estimates are especially in the application of accounting policies with significant impact on

amounts included in the financial statements and which are disclosed in the following notes

Fixed assets

Investment Property

Financial instruments

Provisions

3 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements

31 Foreign currencies translation

Transactions in foreign currencies are initially recorded using the exchange rate prevailing on the date of the transaction

Monetary assets and liabilities denominated in foreign currencies are retranslated using the exchange rates prevailing at the Financial position date All differences are recognized in the statement of income

Nonmonetary items that are measured at the historical cost in foreign currencies are translated using the exchange rates prevailing at the date of the initial recognition

Page II of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

32 Fixed assets and its deprecation

The first recognition and initial measurement

Fixed assets are stated at the historical cost after deducting the accumulated depreciation a nd the accumulated impairment losses-if any

a Subsequent Cost

Such cost includes the cost of replacing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied All other repair and maintenance costs are recognized in the statement of income as incurred

b Depreciation

Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of the asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The depreciation amount is carried on the statement of income according to the straight line method by the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates

Description Depreciation

rate

Building constructions facilities and decoration 5

Computers and Programs 50

Other assets 25

33 Investments property

The Investments property is the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal activity of the company The initial record of these investments is done using the cost model - the acquisition cost - or at the date of exchange to be re-measured the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the change included in the recoverable amount of the acquisition cost of these investments in the statement of income In the event of a rise in its recoverable amount is added to the same item and within the limits already recognized on the statement of income previous financial periods and do not include any of these real estate investments and properties held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company

The real estate investment is recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using the straight-line method and according to the estimated useful life of each asset in accordance with the following

Asset Useful Life

Building (Commercial shops renovation and decoration) 20 years

34 Projects under construction

The expensed amounts on the purchase or construction and installation of fixed assets are recorded under these items until those assets are ready for use after which those amounts are transferred to the fixed assets

Page I2 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

35 Investments in subsidiaries and associates

Investments in subsidiaries and associates are stated at cost method According to this method investments recorded at cost- cost of acquisition- at the purchase order date less permanent impairment losses if any such impairment losses are recognized in the statement of income

36 Investments available for sale

These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to the initial recognition they are measured at fair value and changes therein other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are derecognized the gain or losses accumu lated in equity is reclassified to the statement of income - if the Company cannot estimate the fair value it can be stated at cost less impairment loss

37 Investments at fair value through profit and loss

This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily acquired for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed together and there is evidence of recent actual transactions that resulted in short-term profit

38 Inventory

a) Agricultural tractors pipes telecommunications

The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in first-out principal

b) Automotive

Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made

c) Consumer Electronics

The raw material inventories are stated at lower of cost or net realizable value The cost raw material is based on the weighted average principal

39 Revenue

bull Sales revenue

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the goods when the buyer receives them and in case of exportation the risks and rewards of the ownership of the sold goods are transferred according to the freight conditions where revenues are usually recognized when the goods are exported

bull Dividends

Revenue is recognized when the companys right to receive the payment is established

bull Credit interest

Credit interest revenues are recognized on the basis of time ratio taking into consideration the rate of return on the original value

Page 13 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

310 Impairment in value of assets

1) Financial assets

A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually significant financial assets are tested for impairment on an individual basis all impairment losses are recognized in the statement of income Impairment losses are reversed in the statement of income when there is evidence recover of the impairment losses

2) Non-financial assets

The Companys non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount A cashshygenerating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that woul d have been determined net of depreciation or amortization if no impairment loss had been recognized

311 Provisions

A provision is recognized when the Company has legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefits will be required to settle these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate

312 Taxes

A Income Tax

Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently being implemented in this regard while using the prevailing income tax at the date of preparing the financial position The tax on income should be reflected in the statement of income

B Deferred taxes

Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities is recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the present value of assets and liabilities It should be taken into account that the deferred tax maybe considered an asset of the company if there is a strong possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set against future taxes

313 Accounts Receivable notes receivable debtors and other debit balances and suppliers Adva nce payments

The accounts receivable debtors and other debit balances suppliers Advance payments are recorded at the original invoice amount net of any impairment losses that are not expected to be collected by the company

Page 14 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

314 Related Parties Transactions

Transactions with related parties are recorded in the same way as in normal course of business according to the conditions stated by the companys management and on the same basis as transactions with others

315 Legal reserve

According to the companys status 5 of the net profit is to be deducted through apportion account for the purpose of forming legal reserves such deductions should stop when the legal reserves are equal to 50 of the companys issued capital in the event the said reserve falls below percentage deduction is resumed

316 Employees Benefits

The company is paying its share in the social insurance according to the Social Insurance Act No 79 of in 1975 as amended and is recognized in wages and salaries in the statement of income according to the accrual basis

317 The Contingents Liabilities And Commitments

The contingent liabilities of which the company is part of as well as commitments appear off the financial position as they dont represent actual assets or liabilities at the date of financial statements

318 Dividends

Dividends are recognized as obligation in the period in which the declarations of distributions are made

319 Cash Flow Statement

The cash flow statement is prepared according to the indirect method

320 Cash and cash equivalents

For the Purpose of preparing the cash flow statement Cash and cash equivalent include cash on hand and at banks time deposits less than three month and letter of grantees cover less than three months

321 Comparative Figures

The comparative figures are reclassified when it is necessary to comply with the current figures The current years comparative figures werent amended

322 Earnings per share

The company presented the data related to the basic share of its regular shares Earnings per share is calculated by dividing the companys profits on the number of ordinary shares of the company by the weighted average of the number of shares during the year

323 Capital management

- The Board of Directors policy is to maintain a strong capital base to keep investor creditors and market confidence and to sustain future development of the business

- The board of directors aspires to make balance between the higher interest rate which achieved with the higher levels of the borrowing and the merits and guarantees provided by keeping adequate capital

Page 150126

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

rvIM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Financial Position

Assets Notes 31122018 31122017

Non-current assets EGP EGP

Fixed assets (4) 58721 549 41 569527

Investments property (5) 2298477 2768502

Projects under construction (6) 402350 1

Investments in subsidiaries and associates (7) 356129270 91 001 285

Investments available for sale (8) 133778 556087

Deferred Tax asset 8938

Total non-current assets 417694362 135895402

Current assets

Inventory (9) 519959879 519100456

Receivables amp Notes Receivables (10) 326764400 375388542

Due from related parties (11-1 ) 9651016 44236885

Suppliers Advance payments 250097384 212898859

Debtors amp other debit balances (12) 81 113848 72 365 676

Non-current assets held for sale (13) 21 246940

Investments at fair value through profit and loss (14) 89849390 236311 963

Cash on hand and at banks (15) 91 420491 158467208

Total current assets 1 368856408 1 640016529

Total Assets 1 786550770 1 775 911 931

Equity

Issued and paid up capital (16) 306900000 245520000

Legal reserve 32294029 18708840

General reserve 64462273 64462273

Investments revaluation reserve (8) (109950) (206005)

Retained earnings 276127874 136683500

Profits For the year 258432042 271 703771

Total Equity 938106268 736872379

Non-current liabilities

Deferred tax liability 43508

Total Non-current liabilities 43508

Current liabilities

Provisions (17) 28955382 38120574

Credit banks 178210205 26729207

Due to related parties (11-2) 174186172 248591 003

Customers Advance payments 118917365 78459042

Suppliers amp Notes payables (18) 289505213 545906754

Accrued income tax (19) 9849886 73143008

Creditors amp other credit balances (20) 48820279 28046456

Total current liabilities 848444502 1 038996044

Total equity and liabilities 1 786550770 1 775911 931

- The accompanying notes are an integrated part of the separated financial statements - Auditors report attached

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

fSM~~~ O~~ Page 5 of 26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Income (Profit and Loss)

Notes 31122018 31122017

EGP EGP

Net Sales (21 ) 6820352322 6123957199

(Less)

Cost of sales (22) (6329796618) (5695317244)

Gross profit 490555704 428639955

(Less)

Sales ampdistribution expenses (23) (161 308369) (131 091 613)

General ampadministrative expenses (24) (5026938) (7009727)

Depreciation of administrative assets (21 675) (63070)

Impairment of inventory (1 028446)

Impairment of receivables amp notes receivables (788034)

(138164410)Total expenses ( 168 173462)

290475545Net operating profits 322382242

Add 1(Less)

Gain from associated companies 16875000

Takaful contribution for health insurance (8182905)

Income from investment property 6459538 6869892

Investment property Depreciation (470025) (470025)

(loss) 1Gain from Investments at fair value through profit

and loss (5081 541) 24097942

Gain From sale Investments available for sale 42010 1 362

Finance expenses (15 591 566) (3964100)

Credit interest 7263419 7806067

Provision (17) (805382)

Provisions no longer required (17) 9970574 40029426

Foreign currency exchange (loss) I Gain (3424259) (20061 255)

Net profits for the year before taxes 329437105 344784854

(Less) 1Add

Income tax (19) (71 057509) (73143 008)

Deferred tax 52446 61 925

Net profits for the year after taxes 271 703771258432042 Earnings per share (EGP 1share) (25) 047 056

- The accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 6 of 26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Comprehensive Income

Net profits for the year after taxes

Add

Other comprehensive Income

Available for sale investments (Net Change in fair value)

3111212018 31122017

EGP EGP

258432042 271 703771

96055 110799

Comprehensive income for the year 258528097 271 814570

- accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud Osama Fat~_--r 11_

~~

Page 7 of 26

--

IVIIVl Group for Industry and International Trade (SAc) Separate Financial statements for the year ended 31 December2018

Separate statement of Changes in Equity

Investments

Paid-up Legal General revaluation Retained Profit for the Description Capital Reserve Reserve reserve earnings year Total

EGP EGP EGP EGP EGP EGP EGP Balance as of January 1 2017 245520000 9816917 64462273 (316804) 177 838457 175126164 672447007 Retained earning (175126164) (175126164)

Transferred to legal reserve 8891 923 (8 891 923)

Dividends distribution (32263034) (32263034)

Comprehensive Income 110799 271 703771 271814570

Balance as of 31 December 2017 245520000 18708840 64462273 (206005) 136683500 271 703771 736872 379

Balance as of January 1 2018 245520000 18708840 64462273 (206005) 136683500 271 703771 736872 379

Retrained earning 271 703771 (271703771)

Additional paid in capital 61 380000 (61 380000)

Transferred to legal reserve 13585189 (13585 189)

Dividends distribution (50396116) (50 396 116)

Retained earnings adjustment (6898092) (6898092)

Comprehensive Income 96055 258432042 258432042

Balance as of 31 December 2018 306900000 32294029 64462273 (109950) 276127874 258432432 938106268

The accompanying notes are an integrated part of the separated financial statement

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud Osama Fathy

~~~~~amp ~~

Page 8 of26

IVIM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Cash Flows Notes

Cash flows from operating activities

Net profit before income tax

Adjustments to reconcile net profits to cash flows From operating

activities

Gain from associated companies

Fixed assets depreciation (4)

Investment Property depreciation (5)

Impairment of inventory

Impairment of receivables amp notes receivables

Retained earnings Adgustement

Provision (17)

Provisions no longer required (17)

(loss)Gains from investments at fair value through profit and loss (14)

Gain From sale Investments available for sale (8)

Finance expenses

Credit interest

31122018

EGP

329437 105

(16875000)

9487801

470025

1 028446

788034

(6898092)

805382

(9970574)

5081 541

(42010)

15591566

(7263419)

31122017

EGP

344784854

8880771

470025

(40029426)

(24097942)

3964100

(7806067)

Net Operating income 321 640805 286166315

Change in inventory (9) (1 344070) (230 943 151)

Change in Receivables and notes receivables (10) 47836108 (46798191)

Change in due from related parties (11-1) 34585869 (42687617)

Change in Suppliers Advance payments (37198525) (147437344)

Change in Debtors and other debit balances (12) 8 126828 (34741 493)

Change in suppliers amp Notes payables (18) (256401541) (299 898 055)

Change in Due to related parties (11-2) (74404 831) (7718795)

Change in Customers Advance payments 40458323 56345820

Change in creditors and other credit balances (20) 19648426 (27463284)

Cash flows (used in) operating activities 102947392 (495175795)

Paid Income Tax (134350631) (102012 702)

Used from impairment (543799)

Paid Debit Interest (15591 566) (3964100)

Net Cash flow provided by operating activities (47538604) (601 152597)

Cash flows from investment activities

(Payments) for purchase of fixed assets and projects under construction (4) (19269772) (19795923)

(Payments) for Investments in subsidiaries and associates (7) (265 127 985) (33388600)

Proceeds for purchasing non-current assets held for sale (13) 21 246940 (21 246940)

Proceeds from credit interest 7263419 7806067

Change in Investments at fair value through profit and loss (14) 141 381 032 338824694

Proceeds from Investments Available for sale (8) 560374 123 112

Net cash flows used in investment activities (113945992) 272322410

Cash flows from financing activities

(Payments) 1 Proceeds from credit banks 151 480998 24659688

Dividends distribution (57043119) (62273509)

Net cash flows provided by financing activities 94437879 (37613821)

Net change in cash and cash equivalents during the year (67046717) (366444008)

Cash and cash equivalents at the beginning of the year 158467208 524911 216

Cash and cash equivalents at the end of the year (15) 91420491 158467208

The accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Jl~~

MM Group 18Financial poundTT

International Trade (SAE) 31

Notes To The Separate Financial

1 About The company

a) Companys background

is established under the Law No159 of 1981 and of law No 95 of 1992 and its executive

MM Group for Industry and International Trade its executive regulations and the and has been registered in the -TIrYIOCfi1 under No609 10 of Ramadan city on

Based on a held on April 5 2016 the decree of the for investment and free zones no 6382 year 2016 which decided to split the company into shy

for the industry and international trade (SAE) (Splitter) company (SAE) (Splitted)

of the company at book value on the Companys financial statements at December 31 2015 to assess the assets and liabilities of the company for the purpose of and it was in the comercial on december 29 2016

According to the of 30of the shares of MM

PYfrrflln as of January 6th 2017 that agree to make an Initial for industry and international trade company in the

stock market on 1 2017

b) Companys purpose

tractors and related equipment loaders overhauls (b) maintenance installation and

cars agricultural tractors and related all spare maintenance and other related

equipping which is exported by the company

producing the production supplies to serve the Companys purposes

Importing all and products authorized for import in accordance to the Law

utilizing commercial for trading in electronic devices related to remole and providing technical technological services trading of telecommunication devices and mobile phones and the maintenance and repair thereof through specialized service centres

the sale and purchase of real estate properties land and movable assets to serve the Companys purposes for areas mentioned in the Ministerial Decree No 12 of Law No 94 of as well as the Sinai

and Shalateen which requires a prior approval from GAFIs -hirrnCl

split air conditioners and mobile phones in one of the new industrial areas

and products authorized for export in accordance to the Law

and mentioned as a part of the purpose including vehicles

fork and loader

Sale of mobile aelces lines and mobile recharge cards

Sale of electrical and non-electrical household appliances

The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in or abroad The may also merge with

or such entities according to the provisions of the Law and its Executive Regulations

Page 10 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December20 18

1 About The company (followed)

c) Companys location

The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo

d) Companys Duration

The companys duration is twenty-five years from the date of registration in the commercial register the fiscal year for the company begins on the 15t of January and ends on December of each year

e) Approval of the financial statements

The financial statements of the Company for the year ended 31 December 2018 were authorized for issuance in accordance with a decree of the board of directors held on 27 February 2019

2 Basis for preparation of financial statements

21 Commitment to accounting standards and laws

These financial statements have been prepared in accordance with the Egyptian Accounting Standards and

prevailing the Egyptian laws and regulations

22 Disclosure and presentation currency

The financial statements are presented in Egyptian Pound which is the Companys functional currency

23 Use of estimates and judgments

The preparation of the financial statements in conformity with the Egyptian Accounting Standards requires

management to make estimates and assumptions that affect assets and liabilities income and expenses during

the financial period

Actual results may differ from these estimates The estimates and assumptions are reviewed on on-going basis

and proving the effects of this modification of the accounting estimates in the period in which estimates are

revised and future periods that Would be affected by such modifications

The assumptions and estimates are especially in the application of accounting policies with significant impact on

amounts included in the financial statements and which are disclosed in the following notes

Fixed assets

Investment Property

Financial instruments

Provisions

3 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements

31 Foreign currencies translation

Transactions in foreign currencies are initially recorded using the exchange rate prevailing on the date of the transaction

Monetary assets and liabilities denominated in foreign currencies are retranslated using the exchange rates prevailing at the Financial position date All differences are recognized in the statement of income

Nonmonetary items that are measured at the historical cost in foreign currencies are translated using the exchange rates prevailing at the date of the initial recognition

Page II of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

32 Fixed assets and its deprecation

The first recognition and initial measurement

Fixed assets are stated at the historical cost after deducting the accumulated depreciation a nd the accumulated impairment losses-if any

a Subsequent Cost

Such cost includes the cost of replacing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied All other repair and maintenance costs are recognized in the statement of income as incurred

b Depreciation

Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of the asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The depreciation amount is carried on the statement of income according to the straight line method by the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates

Description Depreciation

rate

Building constructions facilities and decoration 5

Computers and Programs 50

Other assets 25

33 Investments property

The Investments property is the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal activity of the company The initial record of these investments is done using the cost model - the acquisition cost - or at the date of exchange to be re-measured the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the change included in the recoverable amount of the acquisition cost of these investments in the statement of income In the event of a rise in its recoverable amount is added to the same item and within the limits already recognized on the statement of income previous financial periods and do not include any of these real estate investments and properties held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company

The real estate investment is recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using the straight-line method and according to the estimated useful life of each asset in accordance with the following

Asset Useful Life

Building (Commercial shops renovation and decoration) 20 years

34 Projects under construction

The expensed amounts on the purchase or construction and installation of fixed assets are recorded under these items until those assets are ready for use after which those amounts are transferred to the fixed assets

Page I2 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

35 Investments in subsidiaries and associates

Investments in subsidiaries and associates are stated at cost method According to this method investments recorded at cost- cost of acquisition- at the purchase order date less permanent impairment losses if any such impairment losses are recognized in the statement of income

36 Investments available for sale

These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to the initial recognition they are measured at fair value and changes therein other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are derecognized the gain or losses accumu lated in equity is reclassified to the statement of income - if the Company cannot estimate the fair value it can be stated at cost less impairment loss

37 Investments at fair value through profit and loss

This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily acquired for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed together and there is evidence of recent actual transactions that resulted in short-term profit

38 Inventory

a) Agricultural tractors pipes telecommunications

The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in first-out principal

b) Automotive

Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made

c) Consumer Electronics

The raw material inventories are stated at lower of cost or net realizable value The cost raw material is based on the weighted average principal

39 Revenue

bull Sales revenue

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the goods when the buyer receives them and in case of exportation the risks and rewards of the ownership of the sold goods are transferred according to the freight conditions where revenues are usually recognized when the goods are exported

bull Dividends

Revenue is recognized when the companys right to receive the payment is established

bull Credit interest

Credit interest revenues are recognized on the basis of time ratio taking into consideration the rate of return on the original value

Page 13 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

310 Impairment in value of assets

1) Financial assets

A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually significant financial assets are tested for impairment on an individual basis all impairment losses are recognized in the statement of income Impairment losses are reversed in the statement of income when there is evidence recover of the impairment losses

2) Non-financial assets

The Companys non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount A cashshygenerating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that woul d have been determined net of depreciation or amortization if no impairment loss had been recognized

311 Provisions

A provision is recognized when the Company has legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefits will be required to settle these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate

312 Taxes

A Income Tax

Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently being implemented in this regard while using the prevailing income tax at the date of preparing the financial position The tax on income should be reflected in the statement of income

B Deferred taxes

Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities is recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the present value of assets and liabilities It should be taken into account that the deferred tax maybe considered an asset of the company if there is a strong possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set against future taxes

313 Accounts Receivable notes receivable debtors and other debit balances and suppliers Adva nce payments

The accounts receivable debtors and other debit balances suppliers Advance payments are recorded at the original invoice amount net of any impairment losses that are not expected to be collected by the company

Page 14 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

314 Related Parties Transactions

Transactions with related parties are recorded in the same way as in normal course of business according to the conditions stated by the companys management and on the same basis as transactions with others

315 Legal reserve

According to the companys status 5 of the net profit is to be deducted through apportion account for the purpose of forming legal reserves such deductions should stop when the legal reserves are equal to 50 of the companys issued capital in the event the said reserve falls below percentage deduction is resumed

316 Employees Benefits

The company is paying its share in the social insurance according to the Social Insurance Act No 79 of in 1975 as amended and is recognized in wages and salaries in the statement of income according to the accrual basis

317 The Contingents Liabilities And Commitments

The contingent liabilities of which the company is part of as well as commitments appear off the financial position as they dont represent actual assets or liabilities at the date of financial statements

318 Dividends

Dividends are recognized as obligation in the period in which the declarations of distributions are made

319 Cash Flow Statement

The cash flow statement is prepared according to the indirect method

320 Cash and cash equivalents

For the Purpose of preparing the cash flow statement Cash and cash equivalent include cash on hand and at banks time deposits less than three month and letter of grantees cover less than three months

321 Comparative Figures

The comparative figures are reclassified when it is necessary to comply with the current figures The current years comparative figures werent amended

322 Earnings per share

The company presented the data related to the basic share of its regular shares Earnings per share is calculated by dividing the companys profits on the number of ordinary shares of the company by the weighted average of the number of shares during the year

323 Capital management

- The Board of Directors policy is to maintain a strong capital base to keep investor creditors and market confidence and to sustain future development of the business

- The board of directors aspires to make balance between the higher interest rate which achieved with the higher levels of the borrowing and the merits and guarantees provided by keeping adequate capital

Page 150126

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Income (Profit and Loss)

Notes 31122018 31122017

EGP EGP

Net Sales (21 ) 6820352322 6123957199

(Less)

Cost of sales (22) (6329796618) (5695317244)

Gross profit 490555704 428639955

(Less)

Sales ampdistribution expenses (23) (161 308369) (131 091 613)

General ampadministrative expenses (24) (5026938) (7009727)

Depreciation of administrative assets (21 675) (63070)

Impairment of inventory (1 028446)

Impairment of receivables amp notes receivables (788034)

(138164410)Total expenses ( 168 173462)

290475545Net operating profits 322382242

Add 1(Less)

Gain from associated companies 16875000

Takaful contribution for health insurance (8182905)

Income from investment property 6459538 6869892

Investment property Depreciation (470025) (470025)

(loss) 1Gain from Investments at fair value through profit

and loss (5081 541) 24097942

Gain From sale Investments available for sale 42010 1 362

Finance expenses (15 591 566) (3964100)

Credit interest 7263419 7806067

Provision (17) (805382)

Provisions no longer required (17) 9970574 40029426

Foreign currency exchange (loss) I Gain (3424259) (20061 255)

Net profits for the year before taxes 329437105 344784854

(Less) 1Add

Income tax (19) (71 057509) (73143 008)

Deferred tax 52446 61 925

Net profits for the year after taxes 271 703771258432042 Earnings per share (EGP 1share) (25) 047 056

- The accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 6 of 26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Comprehensive Income

Net profits for the year after taxes

Add

Other comprehensive Income

Available for sale investments (Net Change in fair value)

3111212018 31122017

EGP EGP

258432042 271 703771

96055 110799

Comprehensive income for the year 258528097 271 814570

- accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud Osama Fat~_--r 11_

~~

Page 7 of 26

--

IVIIVl Group for Industry and International Trade (SAc) Separate Financial statements for the year ended 31 December2018

Separate statement of Changes in Equity

Investments

Paid-up Legal General revaluation Retained Profit for the Description Capital Reserve Reserve reserve earnings year Total

EGP EGP EGP EGP EGP EGP EGP Balance as of January 1 2017 245520000 9816917 64462273 (316804) 177 838457 175126164 672447007 Retained earning (175126164) (175126164)

Transferred to legal reserve 8891 923 (8 891 923)

Dividends distribution (32263034) (32263034)

Comprehensive Income 110799 271 703771 271814570

Balance as of 31 December 2017 245520000 18708840 64462273 (206005) 136683500 271 703771 736872 379

Balance as of January 1 2018 245520000 18708840 64462273 (206005) 136683500 271 703771 736872 379

Retrained earning 271 703771 (271703771)

Additional paid in capital 61 380000 (61 380000)

Transferred to legal reserve 13585189 (13585 189)

Dividends distribution (50396116) (50 396 116)

Retained earnings adjustment (6898092) (6898092)

Comprehensive Income 96055 258432042 258432042

Balance as of 31 December 2018 306900000 32294029 64462273 (109950) 276127874 258432432 938106268

The accompanying notes are an integrated part of the separated financial statement

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud Osama Fathy

~~~~~amp ~~

Page 8 of26

IVIM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Cash Flows Notes

Cash flows from operating activities

Net profit before income tax

Adjustments to reconcile net profits to cash flows From operating

activities

Gain from associated companies

Fixed assets depreciation (4)

Investment Property depreciation (5)

Impairment of inventory

Impairment of receivables amp notes receivables

Retained earnings Adgustement

Provision (17)

Provisions no longer required (17)

(loss)Gains from investments at fair value through profit and loss (14)

Gain From sale Investments available for sale (8)

Finance expenses

Credit interest

31122018

EGP

329437 105

(16875000)

9487801

470025

1 028446

788034

(6898092)

805382

(9970574)

5081 541

(42010)

15591566

(7263419)

31122017

EGP

344784854

8880771

470025

(40029426)

(24097942)

3964100

(7806067)

Net Operating income 321 640805 286166315

Change in inventory (9) (1 344070) (230 943 151)

Change in Receivables and notes receivables (10) 47836108 (46798191)

Change in due from related parties (11-1) 34585869 (42687617)

Change in Suppliers Advance payments (37198525) (147437344)

Change in Debtors and other debit balances (12) 8 126828 (34741 493)

Change in suppliers amp Notes payables (18) (256401541) (299 898 055)

Change in Due to related parties (11-2) (74404 831) (7718795)

Change in Customers Advance payments 40458323 56345820

Change in creditors and other credit balances (20) 19648426 (27463284)

Cash flows (used in) operating activities 102947392 (495175795)

Paid Income Tax (134350631) (102012 702)

Used from impairment (543799)

Paid Debit Interest (15591 566) (3964100)

Net Cash flow provided by operating activities (47538604) (601 152597)

Cash flows from investment activities

(Payments) for purchase of fixed assets and projects under construction (4) (19269772) (19795923)

(Payments) for Investments in subsidiaries and associates (7) (265 127 985) (33388600)

Proceeds for purchasing non-current assets held for sale (13) 21 246940 (21 246940)

Proceeds from credit interest 7263419 7806067

Change in Investments at fair value through profit and loss (14) 141 381 032 338824694

Proceeds from Investments Available for sale (8) 560374 123 112

Net cash flows used in investment activities (113945992) 272322410

Cash flows from financing activities

(Payments) 1 Proceeds from credit banks 151 480998 24659688

Dividends distribution (57043119) (62273509)

Net cash flows provided by financing activities 94437879 (37613821)

Net change in cash and cash equivalents during the year (67046717) (366444008)

Cash and cash equivalents at the beginning of the year 158467208 524911 216

Cash and cash equivalents at the end of the year (15) 91420491 158467208

The accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Jl~~

MM Group 18Financial poundTT

International Trade (SAE) 31

Notes To The Separate Financial

1 About The company

a) Companys background

is established under the Law No159 of 1981 and of law No 95 of 1992 and its executive

MM Group for Industry and International Trade its executive regulations and the and has been registered in the -TIrYIOCfi1 under No609 10 of Ramadan city on

Based on a held on April 5 2016 the decree of the for investment and free zones no 6382 year 2016 which decided to split the company into shy

for the industry and international trade (SAE) (Splitter) company (SAE) (Splitted)

of the company at book value on the Companys financial statements at December 31 2015 to assess the assets and liabilities of the company for the purpose of and it was in the comercial on december 29 2016

According to the of 30of the shares of MM

PYfrrflln as of January 6th 2017 that agree to make an Initial for industry and international trade company in the

stock market on 1 2017

b) Companys purpose

tractors and related equipment loaders overhauls (b) maintenance installation and

cars agricultural tractors and related all spare maintenance and other related

equipping which is exported by the company

producing the production supplies to serve the Companys purposes

Importing all and products authorized for import in accordance to the Law

utilizing commercial for trading in electronic devices related to remole and providing technical technological services trading of telecommunication devices and mobile phones and the maintenance and repair thereof through specialized service centres

the sale and purchase of real estate properties land and movable assets to serve the Companys purposes for areas mentioned in the Ministerial Decree No 12 of Law No 94 of as well as the Sinai

and Shalateen which requires a prior approval from GAFIs -hirrnCl

split air conditioners and mobile phones in one of the new industrial areas

and products authorized for export in accordance to the Law

and mentioned as a part of the purpose including vehicles

fork and loader

Sale of mobile aelces lines and mobile recharge cards

Sale of electrical and non-electrical household appliances

The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in or abroad The may also merge with

or such entities according to the provisions of the Law and its Executive Regulations

Page 10 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December20 18

1 About The company (followed)

c) Companys location

The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo

d) Companys Duration

The companys duration is twenty-five years from the date of registration in the commercial register the fiscal year for the company begins on the 15t of January and ends on December of each year

e) Approval of the financial statements

The financial statements of the Company for the year ended 31 December 2018 were authorized for issuance in accordance with a decree of the board of directors held on 27 February 2019

2 Basis for preparation of financial statements

21 Commitment to accounting standards and laws

These financial statements have been prepared in accordance with the Egyptian Accounting Standards and

prevailing the Egyptian laws and regulations

22 Disclosure and presentation currency

The financial statements are presented in Egyptian Pound which is the Companys functional currency

23 Use of estimates and judgments

The preparation of the financial statements in conformity with the Egyptian Accounting Standards requires

management to make estimates and assumptions that affect assets and liabilities income and expenses during

the financial period

Actual results may differ from these estimates The estimates and assumptions are reviewed on on-going basis

and proving the effects of this modification of the accounting estimates in the period in which estimates are

revised and future periods that Would be affected by such modifications

The assumptions and estimates are especially in the application of accounting policies with significant impact on

amounts included in the financial statements and which are disclosed in the following notes

Fixed assets

Investment Property

Financial instruments

Provisions

3 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements

31 Foreign currencies translation

Transactions in foreign currencies are initially recorded using the exchange rate prevailing on the date of the transaction

Monetary assets and liabilities denominated in foreign currencies are retranslated using the exchange rates prevailing at the Financial position date All differences are recognized in the statement of income

Nonmonetary items that are measured at the historical cost in foreign currencies are translated using the exchange rates prevailing at the date of the initial recognition

Page II of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

32 Fixed assets and its deprecation

The first recognition and initial measurement

Fixed assets are stated at the historical cost after deducting the accumulated depreciation a nd the accumulated impairment losses-if any

a Subsequent Cost

Such cost includes the cost of replacing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied All other repair and maintenance costs are recognized in the statement of income as incurred

b Depreciation

Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of the asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The depreciation amount is carried on the statement of income according to the straight line method by the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates

Description Depreciation

rate

Building constructions facilities and decoration 5

Computers and Programs 50

Other assets 25

33 Investments property

The Investments property is the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal activity of the company The initial record of these investments is done using the cost model - the acquisition cost - or at the date of exchange to be re-measured the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the change included in the recoverable amount of the acquisition cost of these investments in the statement of income In the event of a rise in its recoverable amount is added to the same item and within the limits already recognized on the statement of income previous financial periods and do not include any of these real estate investments and properties held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company

The real estate investment is recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using the straight-line method and according to the estimated useful life of each asset in accordance with the following

Asset Useful Life

Building (Commercial shops renovation and decoration) 20 years

34 Projects under construction

The expensed amounts on the purchase or construction and installation of fixed assets are recorded under these items until those assets are ready for use after which those amounts are transferred to the fixed assets

Page I2 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

35 Investments in subsidiaries and associates

Investments in subsidiaries and associates are stated at cost method According to this method investments recorded at cost- cost of acquisition- at the purchase order date less permanent impairment losses if any such impairment losses are recognized in the statement of income

36 Investments available for sale

These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to the initial recognition they are measured at fair value and changes therein other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are derecognized the gain or losses accumu lated in equity is reclassified to the statement of income - if the Company cannot estimate the fair value it can be stated at cost less impairment loss

37 Investments at fair value through profit and loss

This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily acquired for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed together and there is evidence of recent actual transactions that resulted in short-term profit

38 Inventory

a) Agricultural tractors pipes telecommunications

The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in first-out principal

b) Automotive

Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made

c) Consumer Electronics

The raw material inventories are stated at lower of cost or net realizable value The cost raw material is based on the weighted average principal

39 Revenue

bull Sales revenue

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the goods when the buyer receives them and in case of exportation the risks and rewards of the ownership of the sold goods are transferred according to the freight conditions where revenues are usually recognized when the goods are exported

bull Dividends

Revenue is recognized when the companys right to receive the payment is established

bull Credit interest

Credit interest revenues are recognized on the basis of time ratio taking into consideration the rate of return on the original value

Page 13 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

310 Impairment in value of assets

1) Financial assets

A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually significant financial assets are tested for impairment on an individual basis all impairment losses are recognized in the statement of income Impairment losses are reversed in the statement of income when there is evidence recover of the impairment losses

2) Non-financial assets

The Companys non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount A cashshygenerating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that woul d have been determined net of depreciation or amortization if no impairment loss had been recognized

311 Provisions

A provision is recognized when the Company has legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefits will be required to settle these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate

312 Taxes

A Income Tax

Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently being implemented in this regard while using the prevailing income tax at the date of preparing the financial position The tax on income should be reflected in the statement of income

B Deferred taxes

Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities is recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the present value of assets and liabilities It should be taken into account that the deferred tax maybe considered an asset of the company if there is a strong possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set against future taxes

313 Accounts Receivable notes receivable debtors and other debit balances and suppliers Adva nce payments

The accounts receivable debtors and other debit balances suppliers Advance payments are recorded at the original invoice amount net of any impairment losses that are not expected to be collected by the company

Page 14 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

314 Related Parties Transactions

Transactions with related parties are recorded in the same way as in normal course of business according to the conditions stated by the companys management and on the same basis as transactions with others

315 Legal reserve

According to the companys status 5 of the net profit is to be deducted through apportion account for the purpose of forming legal reserves such deductions should stop when the legal reserves are equal to 50 of the companys issued capital in the event the said reserve falls below percentage deduction is resumed

316 Employees Benefits

The company is paying its share in the social insurance according to the Social Insurance Act No 79 of in 1975 as amended and is recognized in wages and salaries in the statement of income according to the accrual basis

317 The Contingents Liabilities And Commitments

The contingent liabilities of which the company is part of as well as commitments appear off the financial position as they dont represent actual assets or liabilities at the date of financial statements

318 Dividends

Dividends are recognized as obligation in the period in which the declarations of distributions are made

319 Cash Flow Statement

The cash flow statement is prepared according to the indirect method

320 Cash and cash equivalents

For the Purpose of preparing the cash flow statement Cash and cash equivalent include cash on hand and at banks time deposits less than three month and letter of grantees cover less than three months

321 Comparative Figures

The comparative figures are reclassified when it is necessary to comply with the current figures The current years comparative figures werent amended

322 Earnings per share

The company presented the data related to the basic share of its regular shares Earnings per share is calculated by dividing the companys profits on the number of ordinary shares of the company by the weighted average of the number of shares during the year

323 Capital management

- The Board of Directors policy is to maintain a strong capital base to keep investor creditors and market confidence and to sustain future development of the business

- The board of directors aspires to make balance between the higher interest rate which achieved with the higher levels of the borrowing and the merits and guarantees provided by keeping adequate capital

Page 150126

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Comprehensive Income

Net profits for the year after taxes

Add

Other comprehensive Income

Available for sale investments (Net Change in fair value)

3111212018 31122017

EGP EGP

258432042 271 703771

96055 110799

Comprehensive income for the year 258528097 271 814570

- accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud Osama Fat~_--r 11_

~~

Page 7 of 26

--

IVIIVl Group for Industry and International Trade (SAc) Separate Financial statements for the year ended 31 December2018

Separate statement of Changes in Equity

Investments

Paid-up Legal General revaluation Retained Profit for the Description Capital Reserve Reserve reserve earnings year Total

EGP EGP EGP EGP EGP EGP EGP Balance as of January 1 2017 245520000 9816917 64462273 (316804) 177 838457 175126164 672447007 Retained earning (175126164) (175126164)

Transferred to legal reserve 8891 923 (8 891 923)

Dividends distribution (32263034) (32263034)

Comprehensive Income 110799 271 703771 271814570

Balance as of 31 December 2017 245520000 18708840 64462273 (206005) 136683500 271 703771 736872 379

Balance as of January 1 2018 245520000 18708840 64462273 (206005) 136683500 271 703771 736872 379

Retrained earning 271 703771 (271703771)

Additional paid in capital 61 380000 (61 380000)

Transferred to legal reserve 13585189 (13585 189)

Dividends distribution (50396116) (50 396 116)

Retained earnings adjustment (6898092) (6898092)

Comprehensive Income 96055 258432042 258432042

Balance as of 31 December 2018 306900000 32294029 64462273 (109950) 276127874 258432432 938106268

The accompanying notes are an integrated part of the separated financial statement

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud Osama Fathy

~~~~~amp ~~

Page 8 of26

IVIM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Cash Flows Notes

Cash flows from operating activities

Net profit before income tax

Adjustments to reconcile net profits to cash flows From operating

activities

Gain from associated companies

Fixed assets depreciation (4)

Investment Property depreciation (5)

Impairment of inventory

Impairment of receivables amp notes receivables

Retained earnings Adgustement

Provision (17)

Provisions no longer required (17)

(loss)Gains from investments at fair value through profit and loss (14)

Gain From sale Investments available for sale (8)

Finance expenses

Credit interest

31122018

EGP

329437 105

(16875000)

9487801

470025

1 028446

788034

(6898092)

805382

(9970574)

5081 541

(42010)

15591566

(7263419)

31122017

EGP

344784854

8880771

470025

(40029426)

(24097942)

3964100

(7806067)

Net Operating income 321 640805 286166315

Change in inventory (9) (1 344070) (230 943 151)

Change in Receivables and notes receivables (10) 47836108 (46798191)

Change in due from related parties (11-1) 34585869 (42687617)

Change in Suppliers Advance payments (37198525) (147437344)

Change in Debtors and other debit balances (12) 8 126828 (34741 493)

Change in suppliers amp Notes payables (18) (256401541) (299 898 055)

Change in Due to related parties (11-2) (74404 831) (7718795)

Change in Customers Advance payments 40458323 56345820

Change in creditors and other credit balances (20) 19648426 (27463284)

Cash flows (used in) operating activities 102947392 (495175795)

Paid Income Tax (134350631) (102012 702)

Used from impairment (543799)

Paid Debit Interest (15591 566) (3964100)

Net Cash flow provided by operating activities (47538604) (601 152597)

Cash flows from investment activities

(Payments) for purchase of fixed assets and projects under construction (4) (19269772) (19795923)

(Payments) for Investments in subsidiaries and associates (7) (265 127 985) (33388600)

Proceeds for purchasing non-current assets held for sale (13) 21 246940 (21 246940)

Proceeds from credit interest 7263419 7806067

Change in Investments at fair value through profit and loss (14) 141 381 032 338824694

Proceeds from Investments Available for sale (8) 560374 123 112

Net cash flows used in investment activities (113945992) 272322410

Cash flows from financing activities

(Payments) 1 Proceeds from credit banks 151 480998 24659688

Dividends distribution (57043119) (62273509)

Net cash flows provided by financing activities 94437879 (37613821)

Net change in cash and cash equivalents during the year (67046717) (366444008)

Cash and cash equivalents at the beginning of the year 158467208 524911 216

Cash and cash equivalents at the end of the year (15) 91420491 158467208

The accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Jl~~

MM Group 18Financial poundTT

International Trade (SAE) 31

Notes To The Separate Financial

1 About The company

a) Companys background

is established under the Law No159 of 1981 and of law No 95 of 1992 and its executive

MM Group for Industry and International Trade its executive regulations and the and has been registered in the -TIrYIOCfi1 under No609 10 of Ramadan city on

Based on a held on April 5 2016 the decree of the for investment and free zones no 6382 year 2016 which decided to split the company into shy

for the industry and international trade (SAE) (Splitter) company (SAE) (Splitted)

of the company at book value on the Companys financial statements at December 31 2015 to assess the assets and liabilities of the company for the purpose of and it was in the comercial on december 29 2016

According to the of 30of the shares of MM

PYfrrflln as of January 6th 2017 that agree to make an Initial for industry and international trade company in the

stock market on 1 2017

b) Companys purpose

tractors and related equipment loaders overhauls (b) maintenance installation and

cars agricultural tractors and related all spare maintenance and other related

equipping which is exported by the company

producing the production supplies to serve the Companys purposes

Importing all and products authorized for import in accordance to the Law

utilizing commercial for trading in electronic devices related to remole and providing technical technological services trading of telecommunication devices and mobile phones and the maintenance and repair thereof through specialized service centres

the sale and purchase of real estate properties land and movable assets to serve the Companys purposes for areas mentioned in the Ministerial Decree No 12 of Law No 94 of as well as the Sinai

and Shalateen which requires a prior approval from GAFIs -hirrnCl

split air conditioners and mobile phones in one of the new industrial areas

and products authorized for export in accordance to the Law

and mentioned as a part of the purpose including vehicles

fork and loader

Sale of mobile aelces lines and mobile recharge cards

Sale of electrical and non-electrical household appliances

The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in or abroad The may also merge with

or such entities according to the provisions of the Law and its Executive Regulations

Page 10 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December20 18

1 About The company (followed)

c) Companys location

The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo

d) Companys Duration

The companys duration is twenty-five years from the date of registration in the commercial register the fiscal year for the company begins on the 15t of January and ends on December of each year

e) Approval of the financial statements

The financial statements of the Company for the year ended 31 December 2018 were authorized for issuance in accordance with a decree of the board of directors held on 27 February 2019

2 Basis for preparation of financial statements

21 Commitment to accounting standards and laws

These financial statements have been prepared in accordance with the Egyptian Accounting Standards and

prevailing the Egyptian laws and regulations

22 Disclosure and presentation currency

The financial statements are presented in Egyptian Pound which is the Companys functional currency

23 Use of estimates and judgments

The preparation of the financial statements in conformity with the Egyptian Accounting Standards requires

management to make estimates and assumptions that affect assets and liabilities income and expenses during

the financial period

Actual results may differ from these estimates The estimates and assumptions are reviewed on on-going basis

and proving the effects of this modification of the accounting estimates in the period in which estimates are

revised and future periods that Would be affected by such modifications

The assumptions and estimates are especially in the application of accounting policies with significant impact on

amounts included in the financial statements and which are disclosed in the following notes

Fixed assets

Investment Property

Financial instruments

Provisions

3 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements

31 Foreign currencies translation

Transactions in foreign currencies are initially recorded using the exchange rate prevailing on the date of the transaction

Monetary assets and liabilities denominated in foreign currencies are retranslated using the exchange rates prevailing at the Financial position date All differences are recognized in the statement of income

Nonmonetary items that are measured at the historical cost in foreign currencies are translated using the exchange rates prevailing at the date of the initial recognition

Page II of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

32 Fixed assets and its deprecation

The first recognition and initial measurement

Fixed assets are stated at the historical cost after deducting the accumulated depreciation a nd the accumulated impairment losses-if any

a Subsequent Cost

Such cost includes the cost of replacing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied All other repair and maintenance costs are recognized in the statement of income as incurred

b Depreciation

Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of the asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The depreciation amount is carried on the statement of income according to the straight line method by the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates

Description Depreciation

rate

Building constructions facilities and decoration 5

Computers and Programs 50

Other assets 25

33 Investments property

The Investments property is the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal activity of the company The initial record of these investments is done using the cost model - the acquisition cost - or at the date of exchange to be re-measured the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the change included in the recoverable amount of the acquisition cost of these investments in the statement of income In the event of a rise in its recoverable amount is added to the same item and within the limits already recognized on the statement of income previous financial periods and do not include any of these real estate investments and properties held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company

The real estate investment is recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using the straight-line method and according to the estimated useful life of each asset in accordance with the following

Asset Useful Life

Building (Commercial shops renovation and decoration) 20 years

34 Projects under construction

The expensed amounts on the purchase or construction and installation of fixed assets are recorded under these items until those assets are ready for use after which those amounts are transferred to the fixed assets

Page I2 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

35 Investments in subsidiaries and associates

Investments in subsidiaries and associates are stated at cost method According to this method investments recorded at cost- cost of acquisition- at the purchase order date less permanent impairment losses if any such impairment losses are recognized in the statement of income

36 Investments available for sale

These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to the initial recognition they are measured at fair value and changes therein other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are derecognized the gain or losses accumu lated in equity is reclassified to the statement of income - if the Company cannot estimate the fair value it can be stated at cost less impairment loss

37 Investments at fair value through profit and loss

This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily acquired for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed together and there is evidence of recent actual transactions that resulted in short-term profit

38 Inventory

a) Agricultural tractors pipes telecommunications

The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in first-out principal

b) Automotive

Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made

c) Consumer Electronics

The raw material inventories are stated at lower of cost or net realizable value The cost raw material is based on the weighted average principal

39 Revenue

bull Sales revenue

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the goods when the buyer receives them and in case of exportation the risks and rewards of the ownership of the sold goods are transferred according to the freight conditions where revenues are usually recognized when the goods are exported

bull Dividends

Revenue is recognized when the companys right to receive the payment is established

bull Credit interest

Credit interest revenues are recognized on the basis of time ratio taking into consideration the rate of return on the original value

Page 13 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

310 Impairment in value of assets

1) Financial assets

A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually significant financial assets are tested for impairment on an individual basis all impairment losses are recognized in the statement of income Impairment losses are reversed in the statement of income when there is evidence recover of the impairment losses

2) Non-financial assets

The Companys non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount A cashshygenerating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that woul d have been determined net of depreciation or amortization if no impairment loss had been recognized

311 Provisions

A provision is recognized when the Company has legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefits will be required to settle these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate

312 Taxes

A Income Tax

Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently being implemented in this regard while using the prevailing income tax at the date of preparing the financial position The tax on income should be reflected in the statement of income

B Deferred taxes

Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities is recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the present value of assets and liabilities It should be taken into account that the deferred tax maybe considered an asset of the company if there is a strong possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set against future taxes

313 Accounts Receivable notes receivable debtors and other debit balances and suppliers Adva nce payments

The accounts receivable debtors and other debit balances suppliers Advance payments are recorded at the original invoice amount net of any impairment losses that are not expected to be collected by the company

Page 14 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

314 Related Parties Transactions

Transactions with related parties are recorded in the same way as in normal course of business according to the conditions stated by the companys management and on the same basis as transactions with others

315 Legal reserve

According to the companys status 5 of the net profit is to be deducted through apportion account for the purpose of forming legal reserves such deductions should stop when the legal reserves are equal to 50 of the companys issued capital in the event the said reserve falls below percentage deduction is resumed

316 Employees Benefits

The company is paying its share in the social insurance according to the Social Insurance Act No 79 of in 1975 as amended and is recognized in wages and salaries in the statement of income according to the accrual basis

317 The Contingents Liabilities And Commitments

The contingent liabilities of which the company is part of as well as commitments appear off the financial position as they dont represent actual assets or liabilities at the date of financial statements

318 Dividends

Dividends are recognized as obligation in the period in which the declarations of distributions are made

319 Cash Flow Statement

The cash flow statement is prepared according to the indirect method

320 Cash and cash equivalents

For the Purpose of preparing the cash flow statement Cash and cash equivalent include cash on hand and at banks time deposits less than three month and letter of grantees cover less than three months

321 Comparative Figures

The comparative figures are reclassified when it is necessary to comply with the current figures The current years comparative figures werent amended

322 Earnings per share

The company presented the data related to the basic share of its regular shares Earnings per share is calculated by dividing the companys profits on the number of ordinary shares of the company by the weighted average of the number of shares during the year

323 Capital management

- The Board of Directors policy is to maintain a strong capital base to keep investor creditors and market confidence and to sustain future development of the business

- The board of directors aspires to make balance between the higher interest rate which achieved with the higher levels of the borrowing and the merits and guarantees provided by keeping adequate capital

Page 150126

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

--

IVIIVl Group for Industry and International Trade (SAc) Separate Financial statements for the year ended 31 December2018

Separate statement of Changes in Equity

Investments

Paid-up Legal General revaluation Retained Profit for the Description Capital Reserve Reserve reserve earnings year Total

EGP EGP EGP EGP EGP EGP EGP Balance as of January 1 2017 245520000 9816917 64462273 (316804) 177 838457 175126164 672447007 Retained earning (175126164) (175126164)

Transferred to legal reserve 8891 923 (8 891 923)

Dividends distribution (32263034) (32263034)

Comprehensive Income 110799 271 703771 271814570

Balance as of 31 December 2017 245520000 18708840 64462273 (206005) 136683500 271 703771 736872 379

Balance as of January 1 2018 245520000 18708840 64462273 (206005) 136683500 271 703771 736872 379

Retrained earning 271 703771 (271703771)

Additional paid in capital 61 380000 (61 380000)

Transferred to legal reserve 13585189 (13585 189)

Dividends distribution (50396116) (50 396 116)

Retained earnings adjustment (6898092) (6898092)

Comprehensive Income 96055 258432042 258432042

Balance as of 31 December 2018 306900000 32294029 64462273 (109950) 276127874 258432432 938106268

The accompanying notes are an integrated part of the separated financial statement

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud Osama Fathy

~~~~~amp ~~

Page 8 of26

IVIM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Cash Flows Notes

Cash flows from operating activities

Net profit before income tax

Adjustments to reconcile net profits to cash flows From operating

activities

Gain from associated companies

Fixed assets depreciation (4)

Investment Property depreciation (5)

Impairment of inventory

Impairment of receivables amp notes receivables

Retained earnings Adgustement

Provision (17)

Provisions no longer required (17)

(loss)Gains from investments at fair value through profit and loss (14)

Gain From sale Investments available for sale (8)

Finance expenses

Credit interest

31122018

EGP

329437 105

(16875000)

9487801

470025

1 028446

788034

(6898092)

805382

(9970574)

5081 541

(42010)

15591566

(7263419)

31122017

EGP

344784854

8880771

470025

(40029426)

(24097942)

3964100

(7806067)

Net Operating income 321 640805 286166315

Change in inventory (9) (1 344070) (230 943 151)

Change in Receivables and notes receivables (10) 47836108 (46798191)

Change in due from related parties (11-1) 34585869 (42687617)

Change in Suppliers Advance payments (37198525) (147437344)

Change in Debtors and other debit balances (12) 8 126828 (34741 493)

Change in suppliers amp Notes payables (18) (256401541) (299 898 055)

Change in Due to related parties (11-2) (74404 831) (7718795)

Change in Customers Advance payments 40458323 56345820

Change in creditors and other credit balances (20) 19648426 (27463284)

Cash flows (used in) operating activities 102947392 (495175795)

Paid Income Tax (134350631) (102012 702)

Used from impairment (543799)

Paid Debit Interest (15591 566) (3964100)

Net Cash flow provided by operating activities (47538604) (601 152597)

Cash flows from investment activities

(Payments) for purchase of fixed assets and projects under construction (4) (19269772) (19795923)

(Payments) for Investments in subsidiaries and associates (7) (265 127 985) (33388600)

Proceeds for purchasing non-current assets held for sale (13) 21 246940 (21 246940)

Proceeds from credit interest 7263419 7806067

Change in Investments at fair value through profit and loss (14) 141 381 032 338824694

Proceeds from Investments Available for sale (8) 560374 123 112

Net cash flows used in investment activities (113945992) 272322410

Cash flows from financing activities

(Payments) 1 Proceeds from credit banks 151 480998 24659688

Dividends distribution (57043119) (62273509)

Net cash flows provided by financing activities 94437879 (37613821)

Net change in cash and cash equivalents during the year (67046717) (366444008)

Cash and cash equivalents at the beginning of the year 158467208 524911 216

Cash and cash equivalents at the end of the year (15) 91420491 158467208

The accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Jl~~

MM Group 18Financial poundTT

International Trade (SAE) 31

Notes To The Separate Financial

1 About The company

a) Companys background

is established under the Law No159 of 1981 and of law No 95 of 1992 and its executive

MM Group for Industry and International Trade its executive regulations and the and has been registered in the -TIrYIOCfi1 under No609 10 of Ramadan city on

Based on a held on April 5 2016 the decree of the for investment and free zones no 6382 year 2016 which decided to split the company into shy

for the industry and international trade (SAE) (Splitter) company (SAE) (Splitted)

of the company at book value on the Companys financial statements at December 31 2015 to assess the assets and liabilities of the company for the purpose of and it was in the comercial on december 29 2016

According to the of 30of the shares of MM

PYfrrflln as of January 6th 2017 that agree to make an Initial for industry and international trade company in the

stock market on 1 2017

b) Companys purpose

tractors and related equipment loaders overhauls (b) maintenance installation and

cars agricultural tractors and related all spare maintenance and other related

equipping which is exported by the company

producing the production supplies to serve the Companys purposes

Importing all and products authorized for import in accordance to the Law

utilizing commercial for trading in electronic devices related to remole and providing technical technological services trading of telecommunication devices and mobile phones and the maintenance and repair thereof through specialized service centres

the sale and purchase of real estate properties land and movable assets to serve the Companys purposes for areas mentioned in the Ministerial Decree No 12 of Law No 94 of as well as the Sinai

and Shalateen which requires a prior approval from GAFIs -hirrnCl

split air conditioners and mobile phones in one of the new industrial areas

and products authorized for export in accordance to the Law

and mentioned as a part of the purpose including vehicles

fork and loader

Sale of mobile aelces lines and mobile recharge cards

Sale of electrical and non-electrical household appliances

The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in or abroad The may also merge with

or such entities according to the provisions of the Law and its Executive Regulations

Page 10 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December20 18

1 About The company (followed)

c) Companys location

The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo

d) Companys Duration

The companys duration is twenty-five years from the date of registration in the commercial register the fiscal year for the company begins on the 15t of January and ends on December of each year

e) Approval of the financial statements

The financial statements of the Company for the year ended 31 December 2018 were authorized for issuance in accordance with a decree of the board of directors held on 27 February 2019

2 Basis for preparation of financial statements

21 Commitment to accounting standards and laws

These financial statements have been prepared in accordance with the Egyptian Accounting Standards and

prevailing the Egyptian laws and regulations

22 Disclosure and presentation currency

The financial statements are presented in Egyptian Pound which is the Companys functional currency

23 Use of estimates and judgments

The preparation of the financial statements in conformity with the Egyptian Accounting Standards requires

management to make estimates and assumptions that affect assets and liabilities income and expenses during

the financial period

Actual results may differ from these estimates The estimates and assumptions are reviewed on on-going basis

and proving the effects of this modification of the accounting estimates in the period in which estimates are

revised and future periods that Would be affected by such modifications

The assumptions and estimates are especially in the application of accounting policies with significant impact on

amounts included in the financial statements and which are disclosed in the following notes

Fixed assets

Investment Property

Financial instruments

Provisions

3 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements

31 Foreign currencies translation

Transactions in foreign currencies are initially recorded using the exchange rate prevailing on the date of the transaction

Monetary assets and liabilities denominated in foreign currencies are retranslated using the exchange rates prevailing at the Financial position date All differences are recognized in the statement of income

Nonmonetary items that are measured at the historical cost in foreign currencies are translated using the exchange rates prevailing at the date of the initial recognition

Page II of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

32 Fixed assets and its deprecation

The first recognition and initial measurement

Fixed assets are stated at the historical cost after deducting the accumulated depreciation a nd the accumulated impairment losses-if any

a Subsequent Cost

Such cost includes the cost of replacing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied All other repair and maintenance costs are recognized in the statement of income as incurred

b Depreciation

Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of the asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The depreciation amount is carried on the statement of income according to the straight line method by the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates

Description Depreciation

rate

Building constructions facilities and decoration 5

Computers and Programs 50

Other assets 25

33 Investments property

The Investments property is the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal activity of the company The initial record of these investments is done using the cost model - the acquisition cost - or at the date of exchange to be re-measured the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the change included in the recoverable amount of the acquisition cost of these investments in the statement of income In the event of a rise in its recoverable amount is added to the same item and within the limits already recognized on the statement of income previous financial periods and do not include any of these real estate investments and properties held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company

The real estate investment is recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using the straight-line method and according to the estimated useful life of each asset in accordance with the following

Asset Useful Life

Building (Commercial shops renovation and decoration) 20 years

34 Projects under construction

The expensed amounts on the purchase or construction and installation of fixed assets are recorded under these items until those assets are ready for use after which those amounts are transferred to the fixed assets

Page I2 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

35 Investments in subsidiaries and associates

Investments in subsidiaries and associates are stated at cost method According to this method investments recorded at cost- cost of acquisition- at the purchase order date less permanent impairment losses if any such impairment losses are recognized in the statement of income

36 Investments available for sale

These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to the initial recognition they are measured at fair value and changes therein other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are derecognized the gain or losses accumu lated in equity is reclassified to the statement of income - if the Company cannot estimate the fair value it can be stated at cost less impairment loss

37 Investments at fair value through profit and loss

This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily acquired for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed together and there is evidence of recent actual transactions that resulted in short-term profit

38 Inventory

a) Agricultural tractors pipes telecommunications

The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in first-out principal

b) Automotive

Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made

c) Consumer Electronics

The raw material inventories are stated at lower of cost or net realizable value The cost raw material is based on the weighted average principal

39 Revenue

bull Sales revenue

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the goods when the buyer receives them and in case of exportation the risks and rewards of the ownership of the sold goods are transferred according to the freight conditions where revenues are usually recognized when the goods are exported

bull Dividends

Revenue is recognized when the companys right to receive the payment is established

bull Credit interest

Credit interest revenues are recognized on the basis of time ratio taking into consideration the rate of return on the original value

Page 13 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

310 Impairment in value of assets

1) Financial assets

A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually significant financial assets are tested for impairment on an individual basis all impairment losses are recognized in the statement of income Impairment losses are reversed in the statement of income when there is evidence recover of the impairment losses

2) Non-financial assets

The Companys non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount A cashshygenerating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that woul d have been determined net of depreciation or amortization if no impairment loss had been recognized

311 Provisions

A provision is recognized when the Company has legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefits will be required to settle these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate

312 Taxes

A Income Tax

Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently being implemented in this regard while using the prevailing income tax at the date of preparing the financial position The tax on income should be reflected in the statement of income

B Deferred taxes

Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities is recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the present value of assets and liabilities It should be taken into account that the deferred tax maybe considered an asset of the company if there is a strong possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set against future taxes

313 Accounts Receivable notes receivable debtors and other debit balances and suppliers Adva nce payments

The accounts receivable debtors and other debit balances suppliers Advance payments are recorded at the original invoice amount net of any impairment losses that are not expected to be collected by the company

Page 14 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

314 Related Parties Transactions

Transactions with related parties are recorded in the same way as in normal course of business according to the conditions stated by the companys management and on the same basis as transactions with others

315 Legal reserve

According to the companys status 5 of the net profit is to be deducted through apportion account for the purpose of forming legal reserves such deductions should stop when the legal reserves are equal to 50 of the companys issued capital in the event the said reserve falls below percentage deduction is resumed

316 Employees Benefits

The company is paying its share in the social insurance according to the Social Insurance Act No 79 of in 1975 as amended and is recognized in wages and salaries in the statement of income according to the accrual basis

317 The Contingents Liabilities And Commitments

The contingent liabilities of which the company is part of as well as commitments appear off the financial position as they dont represent actual assets or liabilities at the date of financial statements

318 Dividends

Dividends are recognized as obligation in the period in which the declarations of distributions are made

319 Cash Flow Statement

The cash flow statement is prepared according to the indirect method

320 Cash and cash equivalents

For the Purpose of preparing the cash flow statement Cash and cash equivalent include cash on hand and at banks time deposits less than three month and letter of grantees cover less than three months

321 Comparative Figures

The comparative figures are reclassified when it is necessary to comply with the current figures The current years comparative figures werent amended

322 Earnings per share

The company presented the data related to the basic share of its regular shares Earnings per share is calculated by dividing the companys profits on the number of ordinary shares of the company by the weighted average of the number of shares during the year

323 Capital management

- The Board of Directors policy is to maintain a strong capital base to keep investor creditors and market confidence and to sustain future development of the business

- The board of directors aspires to make balance between the higher interest rate which achieved with the higher levels of the borrowing and the merits and guarantees provided by keeping adequate capital

Page 150126

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

IVIM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

Separate Statement of Cash Flows Notes

Cash flows from operating activities

Net profit before income tax

Adjustments to reconcile net profits to cash flows From operating

activities

Gain from associated companies

Fixed assets depreciation (4)

Investment Property depreciation (5)

Impairment of inventory

Impairment of receivables amp notes receivables

Retained earnings Adgustement

Provision (17)

Provisions no longer required (17)

(loss)Gains from investments at fair value through profit and loss (14)

Gain From sale Investments available for sale (8)

Finance expenses

Credit interest

31122018

EGP

329437 105

(16875000)

9487801

470025

1 028446

788034

(6898092)

805382

(9970574)

5081 541

(42010)

15591566

(7263419)

31122017

EGP

344784854

8880771

470025

(40029426)

(24097942)

3964100

(7806067)

Net Operating income 321 640805 286166315

Change in inventory (9) (1 344070) (230 943 151)

Change in Receivables and notes receivables (10) 47836108 (46798191)

Change in due from related parties (11-1) 34585869 (42687617)

Change in Suppliers Advance payments (37198525) (147437344)

Change in Debtors and other debit balances (12) 8 126828 (34741 493)

Change in suppliers amp Notes payables (18) (256401541) (299 898 055)

Change in Due to related parties (11-2) (74404 831) (7718795)

Change in Customers Advance payments 40458323 56345820

Change in creditors and other credit balances (20) 19648426 (27463284)

Cash flows (used in) operating activities 102947392 (495175795)

Paid Income Tax (134350631) (102012 702)

Used from impairment (543799)

Paid Debit Interest (15591 566) (3964100)

Net Cash flow provided by operating activities (47538604) (601 152597)

Cash flows from investment activities

(Payments) for purchase of fixed assets and projects under construction (4) (19269772) (19795923)

(Payments) for Investments in subsidiaries and associates (7) (265 127 985) (33388600)

Proceeds for purchasing non-current assets held for sale (13) 21 246940 (21 246940)

Proceeds from credit interest 7263419 7806067

Change in Investments at fair value through profit and loss (14) 141 381 032 338824694

Proceeds from Investments Available for sale (8) 560374 123 112

Net cash flows used in investment activities (113945992) 272322410

Cash flows from financing activities

(Payments) 1 Proceeds from credit banks 151 480998 24659688

Dividends distribution (57043119) (62273509)

Net cash flows provided by financing activities 94437879 (37613821)

Net change in cash and cash equivalents during the year (67046717) (366444008)

Cash and cash equivalents at the beginning of the year 158467208 524911 216

Cash and cash equivalents at the end of the year (15) 91420491 158467208

The accompanying notes are an integrated part of the separated financial statements

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Jl~~

MM Group 18Financial poundTT

International Trade (SAE) 31

Notes To The Separate Financial

1 About The company

a) Companys background

is established under the Law No159 of 1981 and of law No 95 of 1992 and its executive

MM Group for Industry and International Trade its executive regulations and the and has been registered in the -TIrYIOCfi1 under No609 10 of Ramadan city on

Based on a held on April 5 2016 the decree of the for investment and free zones no 6382 year 2016 which decided to split the company into shy

for the industry and international trade (SAE) (Splitter) company (SAE) (Splitted)

of the company at book value on the Companys financial statements at December 31 2015 to assess the assets and liabilities of the company for the purpose of and it was in the comercial on december 29 2016

According to the of 30of the shares of MM

PYfrrflln as of January 6th 2017 that agree to make an Initial for industry and international trade company in the

stock market on 1 2017

b) Companys purpose

tractors and related equipment loaders overhauls (b) maintenance installation and

cars agricultural tractors and related all spare maintenance and other related

equipping which is exported by the company

producing the production supplies to serve the Companys purposes

Importing all and products authorized for import in accordance to the Law

utilizing commercial for trading in electronic devices related to remole and providing technical technological services trading of telecommunication devices and mobile phones and the maintenance and repair thereof through specialized service centres

the sale and purchase of real estate properties land and movable assets to serve the Companys purposes for areas mentioned in the Ministerial Decree No 12 of Law No 94 of as well as the Sinai

and Shalateen which requires a prior approval from GAFIs -hirrnCl

split air conditioners and mobile phones in one of the new industrial areas

and products authorized for export in accordance to the Law

and mentioned as a part of the purpose including vehicles

fork and loader

Sale of mobile aelces lines and mobile recharge cards

Sale of electrical and non-electrical household appliances

The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in or abroad The may also merge with

or such entities according to the provisions of the Law and its Executive Regulations

Page 10 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December20 18

1 About The company (followed)

c) Companys location

The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo

d) Companys Duration

The companys duration is twenty-five years from the date of registration in the commercial register the fiscal year for the company begins on the 15t of January and ends on December of each year

e) Approval of the financial statements

The financial statements of the Company for the year ended 31 December 2018 were authorized for issuance in accordance with a decree of the board of directors held on 27 February 2019

2 Basis for preparation of financial statements

21 Commitment to accounting standards and laws

These financial statements have been prepared in accordance with the Egyptian Accounting Standards and

prevailing the Egyptian laws and regulations

22 Disclosure and presentation currency

The financial statements are presented in Egyptian Pound which is the Companys functional currency

23 Use of estimates and judgments

The preparation of the financial statements in conformity with the Egyptian Accounting Standards requires

management to make estimates and assumptions that affect assets and liabilities income and expenses during

the financial period

Actual results may differ from these estimates The estimates and assumptions are reviewed on on-going basis

and proving the effects of this modification of the accounting estimates in the period in which estimates are

revised and future periods that Would be affected by such modifications

The assumptions and estimates are especially in the application of accounting policies with significant impact on

amounts included in the financial statements and which are disclosed in the following notes

Fixed assets

Investment Property

Financial instruments

Provisions

3 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements

31 Foreign currencies translation

Transactions in foreign currencies are initially recorded using the exchange rate prevailing on the date of the transaction

Monetary assets and liabilities denominated in foreign currencies are retranslated using the exchange rates prevailing at the Financial position date All differences are recognized in the statement of income

Nonmonetary items that are measured at the historical cost in foreign currencies are translated using the exchange rates prevailing at the date of the initial recognition

Page II of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

32 Fixed assets and its deprecation

The first recognition and initial measurement

Fixed assets are stated at the historical cost after deducting the accumulated depreciation a nd the accumulated impairment losses-if any

a Subsequent Cost

Such cost includes the cost of replacing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied All other repair and maintenance costs are recognized in the statement of income as incurred

b Depreciation

Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of the asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The depreciation amount is carried on the statement of income according to the straight line method by the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates

Description Depreciation

rate

Building constructions facilities and decoration 5

Computers and Programs 50

Other assets 25

33 Investments property

The Investments property is the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal activity of the company The initial record of these investments is done using the cost model - the acquisition cost - or at the date of exchange to be re-measured the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the change included in the recoverable amount of the acquisition cost of these investments in the statement of income In the event of a rise in its recoverable amount is added to the same item and within the limits already recognized on the statement of income previous financial periods and do not include any of these real estate investments and properties held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company

The real estate investment is recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using the straight-line method and according to the estimated useful life of each asset in accordance with the following

Asset Useful Life

Building (Commercial shops renovation and decoration) 20 years

34 Projects under construction

The expensed amounts on the purchase or construction and installation of fixed assets are recorded under these items until those assets are ready for use after which those amounts are transferred to the fixed assets

Page I2 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

35 Investments in subsidiaries and associates

Investments in subsidiaries and associates are stated at cost method According to this method investments recorded at cost- cost of acquisition- at the purchase order date less permanent impairment losses if any such impairment losses are recognized in the statement of income

36 Investments available for sale

These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to the initial recognition they are measured at fair value and changes therein other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are derecognized the gain or losses accumu lated in equity is reclassified to the statement of income - if the Company cannot estimate the fair value it can be stated at cost less impairment loss

37 Investments at fair value through profit and loss

This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily acquired for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed together and there is evidence of recent actual transactions that resulted in short-term profit

38 Inventory

a) Agricultural tractors pipes telecommunications

The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in first-out principal

b) Automotive

Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made

c) Consumer Electronics

The raw material inventories are stated at lower of cost or net realizable value The cost raw material is based on the weighted average principal

39 Revenue

bull Sales revenue

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the goods when the buyer receives them and in case of exportation the risks and rewards of the ownership of the sold goods are transferred according to the freight conditions where revenues are usually recognized when the goods are exported

bull Dividends

Revenue is recognized when the companys right to receive the payment is established

bull Credit interest

Credit interest revenues are recognized on the basis of time ratio taking into consideration the rate of return on the original value

Page 13 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

310 Impairment in value of assets

1) Financial assets

A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually significant financial assets are tested for impairment on an individual basis all impairment losses are recognized in the statement of income Impairment losses are reversed in the statement of income when there is evidence recover of the impairment losses

2) Non-financial assets

The Companys non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount A cashshygenerating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that woul d have been determined net of depreciation or amortization if no impairment loss had been recognized

311 Provisions

A provision is recognized when the Company has legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefits will be required to settle these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate

312 Taxes

A Income Tax

Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently being implemented in this regard while using the prevailing income tax at the date of preparing the financial position The tax on income should be reflected in the statement of income

B Deferred taxes

Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities is recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the present value of assets and liabilities It should be taken into account that the deferred tax maybe considered an asset of the company if there is a strong possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set against future taxes

313 Accounts Receivable notes receivable debtors and other debit balances and suppliers Adva nce payments

The accounts receivable debtors and other debit balances suppliers Advance payments are recorded at the original invoice amount net of any impairment losses that are not expected to be collected by the company

Page 14 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

314 Related Parties Transactions

Transactions with related parties are recorded in the same way as in normal course of business according to the conditions stated by the companys management and on the same basis as transactions with others

315 Legal reserve

According to the companys status 5 of the net profit is to be deducted through apportion account for the purpose of forming legal reserves such deductions should stop when the legal reserves are equal to 50 of the companys issued capital in the event the said reserve falls below percentage deduction is resumed

316 Employees Benefits

The company is paying its share in the social insurance according to the Social Insurance Act No 79 of in 1975 as amended and is recognized in wages and salaries in the statement of income according to the accrual basis

317 The Contingents Liabilities And Commitments

The contingent liabilities of which the company is part of as well as commitments appear off the financial position as they dont represent actual assets or liabilities at the date of financial statements

318 Dividends

Dividends are recognized as obligation in the period in which the declarations of distributions are made

319 Cash Flow Statement

The cash flow statement is prepared according to the indirect method

320 Cash and cash equivalents

For the Purpose of preparing the cash flow statement Cash and cash equivalent include cash on hand and at banks time deposits less than three month and letter of grantees cover less than three months

321 Comparative Figures

The comparative figures are reclassified when it is necessary to comply with the current figures The current years comparative figures werent amended

322 Earnings per share

The company presented the data related to the basic share of its regular shares Earnings per share is calculated by dividing the companys profits on the number of ordinary shares of the company by the weighted average of the number of shares during the year

323 Capital management

- The Board of Directors policy is to maintain a strong capital base to keep investor creditors and market confidence and to sustain future development of the business

- The board of directors aspires to make balance between the higher interest rate which achieved with the higher levels of the borrowing and the merits and guarantees provided by keeping adequate capital

Page 150126

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group 18Financial poundTT

International Trade (SAE) 31

Notes To The Separate Financial

1 About The company

a) Companys background

is established under the Law No159 of 1981 and of law No 95 of 1992 and its executive

MM Group for Industry and International Trade its executive regulations and the and has been registered in the -TIrYIOCfi1 under No609 10 of Ramadan city on

Based on a held on April 5 2016 the decree of the for investment and free zones no 6382 year 2016 which decided to split the company into shy

for the industry and international trade (SAE) (Splitter) company (SAE) (Splitted)

of the company at book value on the Companys financial statements at December 31 2015 to assess the assets and liabilities of the company for the purpose of and it was in the comercial on december 29 2016

According to the of 30of the shares of MM

PYfrrflln as of January 6th 2017 that agree to make an Initial for industry and international trade company in the

stock market on 1 2017

b) Companys purpose

tractors and related equipment loaders overhauls (b) maintenance installation and

cars agricultural tractors and related all spare maintenance and other related

equipping which is exported by the company

producing the production supplies to serve the Companys purposes

Importing all and products authorized for import in accordance to the Law

utilizing commercial for trading in electronic devices related to remole and providing technical technological services trading of telecommunication devices and mobile phones and the maintenance and repair thereof through specialized service centres

the sale and purchase of real estate properties land and movable assets to serve the Companys purposes for areas mentioned in the Ministerial Decree No 12 of Law No 94 of as well as the Sinai

and Shalateen which requires a prior approval from GAFIs -hirrnCl

split air conditioners and mobile phones in one of the new industrial areas

and products authorized for export in accordance to the Law

and mentioned as a part of the purpose including vehicles

fork and loader

Sale of mobile aelces lines and mobile recharge cards

Sale of electrical and non-electrical household appliances

The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in or abroad The may also merge with

or such entities according to the provisions of the Law and its Executive Regulations

Page 10 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December20 18

1 About The company (followed)

c) Companys location

The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo

d) Companys Duration

The companys duration is twenty-five years from the date of registration in the commercial register the fiscal year for the company begins on the 15t of January and ends on December of each year

e) Approval of the financial statements

The financial statements of the Company for the year ended 31 December 2018 were authorized for issuance in accordance with a decree of the board of directors held on 27 February 2019

2 Basis for preparation of financial statements

21 Commitment to accounting standards and laws

These financial statements have been prepared in accordance with the Egyptian Accounting Standards and

prevailing the Egyptian laws and regulations

22 Disclosure and presentation currency

The financial statements are presented in Egyptian Pound which is the Companys functional currency

23 Use of estimates and judgments

The preparation of the financial statements in conformity with the Egyptian Accounting Standards requires

management to make estimates and assumptions that affect assets and liabilities income and expenses during

the financial period

Actual results may differ from these estimates The estimates and assumptions are reviewed on on-going basis

and proving the effects of this modification of the accounting estimates in the period in which estimates are

revised and future periods that Would be affected by such modifications

The assumptions and estimates are especially in the application of accounting policies with significant impact on

amounts included in the financial statements and which are disclosed in the following notes

Fixed assets

Investment Property

Financial instruments

Provisions

3 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements

31 Foreign currencies translation

Transactions in foreign currencies are initially recorded using the exchange rate prevailing on the date of the transaction

Monetary assets and liabilities denominated in foreign currencies are retranslated using the exchange rates prevailing at the Financial position date All differences are recognized in the statement of income

Nonmonetary items that are measured at the historical cost in foreign currencies are translated using the exchange rates prevailing at the date of the initial recognition

Page II of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

32 Fixed assets and its deprecation

The first recognition and initial measurement

Fixed assets are stated at the historical cost after deducting the accumulated depreciation a nd the accumulated impairment losses-if any

a Subsequent Cost

Such cost includes the cost of replacing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied All other repair and maintenance costs are recognized in the statement of income as incurred

b Depreciation

Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of the asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The depreciation amount is carried on the statement of income according to the straight line method by the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates

Description Depreciation

rate

Building constructions facilities and decoration 5

Computers and Programs 50

Other assets 25

33 Investments property

The Investments property is the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal activity of the company The initial record of these investments is done using the cost model - the acquisition cost - or at the date of exchange to be re-measured the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the change included in the recoverable amount of the acquisition cost of these investments in the statement of income In the event of a rise in its recoverable amount is added to the same item and within the limits already recognized on the statement of income previous financial periods and do not include any of these real estate investments and properties held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company

The real estate investment is recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using the straight-line method and according to the estimated useful life of each asset in accordance with the following

Asset Useful Life

Building (Commercial shops renovation and decoration) 20 years

34 Projects under construction

The expensed amounts on the purchase or construction and installation of fixed assets are recorded under these items until those assets are ready for use after which those amounts are transferred to the fixed assets

Page I2 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

35 Investments in subsidiaries and associates

Investments in subsidiaries and associates are stated at cost method According to this method investments recorded at cost- cost of acquisition- at the purchase order date less permanent impairment losses if any such impairment losses are recognized in the statement of income

36 Investments available for sale

These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to the initial recognition they are measured at fair value and changes therein other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are derecognized the gain or losses accumu lated in equity is reclassified to the statement of income - if the Company cannot estimate the fair value it can be stated at cost less impairment loss

37 Investments at fair value through profit and loss

This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily acquired for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed together and there is evidence of recent actual transactions that resulted in short-term profit

38 Inventory

a) Agricultural tractors pipes telecommunications

The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in first-out principal

b) Automotive

Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made

c) Consumer Electronics

The raw material inventories are stated at lower of cost or net realizable value The cost raw material is based on the weighted average principal

39 Revenue

bull Sales revenue

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the goods when the buyer receives them and in case of exportation the risks and rewards of the ownership of the sold goods are transferred according to the freight conditions where revenues are usually recognized when the goods are exported

bull Dividends

Revenue is recognized when the companys right to receive the payment is established

bull Credit interest

Credit interest revenues are recognized on the basis of time ratio taking into consideration the rate of return on the original value

Page 13 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

310 Impairment in value of assets

1) Financial assets

A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually significant financial assets are tested for impairment on an individual basis all impairment losses are recognized in the statement of income Impairment losses are reversed in the statement of income when there is evidence recover of the impairment losses

2) Non-financial assets

The Companys non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount A cashshygenerating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that woul d have been determined net of depreciation or amortization if no impairment loss had been recognized

311 Provisions

A provision is recognized when the Company has legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefits will be required to settle these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate

312 Taxes

A Income Tax

Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently being implemented in this regard while using the prevailing income tax at the date of preparing the financial position The tax on income should be reflected in the statement of income

B Deferred taxes

Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities is recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the present value of assets and liabilities It should be taken into account that the deferred tax maybe considered an asset of the company if there is a strong possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set against future taxes

313 Accounts Receivable notes receivable debtors and other debit balances and suppliers Adva nce payments

The accounts receivable debtors and other debit balances suppliers Advance payments are recorded at the original invoice amount net of any impairment losses that are not expected to be collected by the company

Page 14 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

314 Related Parties Transactions

Transactions with related parties are recorded in the same way as in normal course of business according to the conditions stated by the companys management and on the same basis as transactions with others

315 Legal reserve

According to the companys status 5 of the net profit is to be deducted through apportion account for the purpose of forming legal reserves such deductions should stop when the legal reserves are equal to 50 of the companys issued capital in the event the said reserve falls below percentage deduction is resumed

316 Employees Benefits

The company is paying its share in the social insurance according to the Social Insurance Act No 79 of in 1975 as amended and is recognized in wages and salaries in the statement of income according to the accrual basis

317 The Contingents Liabilities And Commitments

The contingent liabilities of which the company is part of as well as commitments appear off the financial position as they dont represent actual assets or liabilities at the date of financial statements

318 Dividends

Dividends are recognized as obligation in the period in which the declarations of distributions are made

319 Cash Flow Statement

The cash flow statement is prepared according to the indirect method

320 Cash and cash equivalents

For the Purpose of preparing the cash flow statement Cash and cash equivalent include cash on hand and at banks time deposits less than three month and letter of grantees cover less than three months

321 Comparative Figures

The comparative figures are reclassified when it is necessary to comply with the current figures The current years comparative figures werent amended

322 Earnings per share

The company presented the data related to the basic share of its regular shares Earnings per share is calculated by dividing the companys profits on the number of ordinary shares of the company by the weighted average of the number of shares during the year

323 Capital management

- The Board of Directors policy is to maintain a strong capital base to keep investor creditors and market confidence and to sustain future development of the business

- The board of directors aspires to make balance between the higher interest rate which achieved with the higher levels of the borrowing and the merits and guarantees provided by keeping adequate capital

Page 150126

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December20 18

1 About The company (followed)

c) Companys location

The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo

d) Companys Duration

The companys duration is twenty-five years from the date of registration in the commercial register the fiscal year for the company begins on the 15t of January and ends on December of each year

e) Approval of the financial statements

The financial statements of the Company for the year ended 31 December 2018 were authorized for issuance in accordance with a decree of the board of directors held on 27 February 2019

2 Basis for preparation of financial statements

21 Commitment to accounting standards and laws

These financial statements have been prepared in accordance with the Egyptian Accounting Standards and

prevailing the Egyptian laws and regulations

22 Disclosure and presentation currency

The financial statements are presented in Egyptian Pound which is the Companys functional currency

23 Use of estimates and judgments

The preparation of the financial statements in conformity with the Egyptian Accounting Standards requires

management to make estimates and assumptions that affect assets and liabilities income and expenses during

the financial period

Actual results may differ from these estimates The estimates and assumptions are reviewed on on-going basis

and proving the effects of this modification of the accounting estimates in the period in which estimates are

revised and future periods that Would be affected by such modifications

The assumptions and estimates are especially in the application of accounting policies with significant impact on

amounts included in the financial statements and which are disclosed in the following notes

Fixed assets

Investment Property

Financial instruments

Provisions

3 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements

31 Foreign currencies translation

Transactions in foreign currencies are initially recorded using the exchange rate prevailing on the date of the transaction

Monetary assets and liabilities denominated in foreign currencies are retranslated using the exchange rates prevailing at the Financial position date All differences are recognized in the statement of income

Nonmonetary items that are measured at the historical cost in foreign currencies are translated using the exchange rates prevailing at the date of the initial recognition

Page II of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

32 Fixed assets and its deprecation

The first recognition and initial measurement

Fixed assets are stated at the historical cost after deducting the accumulated depreciation a nd the accumulated impairment losses-if any

a Subsequent Cost

Such cost includes the cost of replacing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied All other repair and maintenance costs are recognized in the statement of income as incurred

b Depreciation

Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of the asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The depreciation amount is carried on the statement of income according to the straight line method by the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates

Description Depreciation

rate

Building constructions facilities and decoration 5

Computers and Programs 50

Other assets 25

33 Investments property

The Investments property is the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal activity of the company The initial record of these investments is done using the cost model - the acquisition cost - or at the date of exchange to be re-measured the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the change included in the recoverable amount of the acquisition cost of these investments in the statement of income In the event of a rise in its recoverable amount is added to the same item and within the limits already recognized on the statement of income previous financial periods and do not include any of these real estate investments and properties held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company

The real estate investment is recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using the straight-line method and according to the estimated useful life of each asset in accordance with the following

Asset Useful Life

Building (Commercial shops renovation and decoration) 20 years

34 Projects under construction

The expensed amounts on the purchase or construction and installation of fixed assets are recorded under these items until those assets are ready for use after which those amounts are transferred to the fixed assets

Page I2 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

35 Investments in subsidiaries and associates

Investments in subsidiaries and associates are stated at cost method According to this method investments recorded at cost- cost of acquisition- at the purchase order date less permanent impairment losses if any such impairment losses are recognized in the statement of income

36 Investments available for sale

These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to the initial recognition they are measured at fair value and changes therein other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are derecognized the gain or losses accumu lated in equity is reclassified to the statement of income - if the Company cannot estimate the fair value it can be stated at cost less impairment loss

37 Investments at fair value through profit and loss

This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily acquired for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed together and there is evidence of recent actual transactions that resulted in short-term profit

38 Inventory

a) Agricultural tractors pipes telecommunications

The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in first-out principal

b) Automotive

Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made

c) Consumer Electronics

The raw material inventories are stated at lower of cost or net realizable value The cost raw material is based on the weighted average principal

39 Revenue

bull Sales revenue

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the goods when the buyer receives them and in case of exportation the risks and rewards of the ownership of the sold goods are transferred according to the freight conditions where revenues are usually recognized when the goods are exported

bull Dividends

Revenue is recognized when the companys right to receive the payment is established

bull Credit interest

Credit interest revenues are recognized on the basis of time ratio taking into consideration the rate of return on the original value

Page 13 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

310 Impairment in value of assets

1) Financial assets

A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually significant financial assets are tested for impairment on an individual basis all impairment losses are recognized in the statement of income Impairment losses are reversed in the statement of income when there is evidence recover of the impairment losses

2) Non-financial assets

The Companys non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount A cashshygenerating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that woul d have been determined net of depreciation or amortization if no impairment loss had been recognized

311 Provisions

A provision is recognized when the Company has legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefits will be required to settle these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate

312 Taxes

A Income Tax

Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently being implemented in this regard while using the prevailing income tax at the date of preparing the financial position The tax on income should be reflected in the statement of income

B Deferred taxes

Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities is recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the present value of assets and liabilities It should be taken into account that the deferred tax maybe considered an asset of the company if there is a strong possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set against future taxes

313 Accounts Receivable notes receivable debtors and other debit balances and suppliers Adva nce payments

The accounts receivable debtors and other debit balances suppliers Advance payments are recorded at the original invoice amount net of any impairment losses that are not expected to be collected by the company

Page 14 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

314 Related Parties Transactions

Transactions with related parties are recorded in the same way as in normal course of business according to the conditions stated by the companys management and on the same basis as transactions with others

315 Legal reserve

According to the companys status 5 of the net profit is to be deducted through apportion account for the purpose of forming legal reserves such deductions should stop when the legal reserves are equal to 50 of the companys issued capital in the event the said reserve falls below percentage deduction is resumed

316 Employees Benefits

The company is paying its share in the social insurance according to the Social Insurance Act No 79 of in 1975 as amended and is recognized in wages and salaries in the statement of income according to the accrual basis

317 The Contingents Liabilities And Commitments

The contingent liabilities of which the company is part of as well as commitments appear off the financial position as they dont represent actual assets or liabilities at the date of financial statements

318 Dividends

Dividends are recognized as obligation in the period in which the declarations of distributions are made

319 Cash Flow Statement

The cash flow statement is prepared according to the indirect method

320 Cash and cash equivalents

For the Purpose of preparing the cash flow statement Cash and cash equivalent include cash on hand and at banks time deposits less than three month and letter of grantees cover less than three months

321 Comparative Figures

The comparative figures are reclassified when it is necessary to comply with the current figures The current years comparative figures werent amended

322 Earnings per share

The company presented the data related to the basic share of its regular shares Earnings per share is calculated by dividing the companys profits on the number of ordinary shares of the company by the weighted average of the number of shares during the year

323 Capital management

- The Board of Directors policy is to maintain a strong capital base to keep investor creditors and market confidence and to sustain future development of the business

- The board of directors aspires to make balance between the higher interest rate which achieved with the higher levels of the borrowing and the merits and guarantees provided by keeping adequate capital

Page 150126

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

32 Fixed assets and its deprecation

The first recognition and initial measurement

Fixed assets are stated at the historical cost after deducting the accumulated depreciation a nd the accumulated impairment losses-if any

a Subsequent Cost

Such cost includes the cost of replacing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied All other repair and maintenance costs are recognized in the statement of income as incurred

b Depreciation

Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of the asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The depreciation amount is carried on the statement of income according to the straight line method by the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates

Description Depreciation

rate

Building constructions facilities and decoration 5

Computers and Programs 50

Other assets 25

33 Investments property

The Investments property is the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal activity of the company The initial record of these investments is done using the cost model - the acquisition cost - or at the date of exchange to be re-measured the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the change included in the recoverable amount of the acquisition cost of these investments in the statement of income In the event of a rise in its recoverable amount is added to the same item and within the limits already recognized on the statement of income previous financial periods and do not include any of these real estate investments and properties held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company

The real estate investment is recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using the straight-line method and according to the estimated useful life of each asset in accordance with the following

Asset Useful Life

Building (Commercial shops renovation and decoration) 20 years

34 Projects under construction

The expensed amounts on the purchase or construction and installation of fixed assets are recorded under these items until those assets are ready for use after which those amounts are transferred to the fixed assets

Page I2 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

35 Investments in subsidiaries and associates

Investments in subsidiaries and associates are stated at cost method According to this method investments recorded at cost- cost of acquisition- at the purchase order date less permanent impairment losses if any such impairment losses are recognized in the statement of income

36 Investments available for sale

These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to the initial recognition they are measured at fair value and changes therein other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are derecognized the gain or losses accumu lated in equity is reclassified to the statement of income - if the Company cannot estimate the fair value it can be stated at cost less impairment loss

37 Investments at fair value through profit and loss

This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily acquired for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed together and there is evidence of recent actual transactions that resulted in short-term profit

38 Inventory

a) Agricultural tractors pipes telecommunications

The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in first-out principal

b) Automotive

Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made

c) Consumer Electronics

The raw material inventories are stated at lower of cost or net realizable value The cost raw material is based on the weighted average principal

39 Revenue

bull Sales revenue

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the goods when the buyer receives them and in case of exportation the risks and rewards of the ownership of the sold goods are transferred according to the freight conditions where revenues are usually recognized when the goods are exported

bull Dividends

Revenue is recognized when the companys right to receive the payment is established

bull Credit interest

Credit interest revenues are recognized on the basis of time ratio taking into consideration the rate of return on the original value

Page 13 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

310 Impairment in value of assets

1) Financial assets

A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually significant financial assets are tested for impairment on an individual basis all impairment losses are recognized in the statement of income Impairment losses are reversed in the statement of income when there is evidence recover of the impairment losses

2) Non-financial assets

The Companys non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount A cashshygenerating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that woul d have been determined net of depreciation or amortization if no impairment loss had been recognized

311 Provisions

A provision is recognized when the Company has legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefits will be required to settle these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate

312 Taxes

A Income Tax

Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently being implemented in this regard while using the prevailing income tax at the date of preparing the financial position The tax on income should be reflected in the statement of income

B Deferred taxes

Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities is recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the present value of assets and liabilities It should be taken into account that the deferred tax maybe considered an asset of the company if there is a strong possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set against future taxes

313 Accounts Receivable notes receivable debtors and other debit balances and suppliers Adva nce payments

The accounts receivable debtors and other debit balances suppliers Advance payments are recorded at the original invoice amount net of any impairment losses that are not expected to be collected by the company

Page 14 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

314 Related Parties Transactions

Transactions with related parties are recorded in the same way as in normal course of business according to the conditions stated by the companys management and on the same basis as transactions with others

315 Legal reserve

According to the companys status 5 of the net profit is to be deducted through apportion account for the purpose of forming legal reserves such deductions should stop when the legal reserves are equal to 50 of the companys issued capital in the event the said reserve falls below percentage deduction is resumed

316 Employees Benefits

The company is paying its share in the social insurance according to the Social Insurance Act No 79 of in 1975 as amended and is recognized in wages and salaries in the statement of income according to the accrual basis

317 The Contingents Liabilities And Commitments

The contingent liabilities of which the company is part of as well as commitments appear off the financial position as they dont represent actual assets or liabilities at the date of financial statements

318 Dividends

Dividends are recognized as obligation in the period in which the declarations of distributions are made

319 Cash Flow Statement

The cash flow statement is prepared according to the indirect method

320 Cash and cash equivalents

For the Purpose of preparing the cash flow statement Cash and cash equivalent include cash on hand and at banks time deposits less than three month and letter of grantees cover less than three months

321 Comparative Figures

The comparative figures are reclassified when it is necessary to comply with the current figures The current years comparative figures werent amended

322 Earnings per share

The company presented the data related to the basic share of its regular shares Earnings per share is calculated by dividing the companys profits on the number of ordinary shares of the company by the weighted average of the number of shares during the year

323 Capital management

- The Board of Directors policy is to maintain a strong capital base to keep investor creditors and market confidence and to sustain future development of the business

- The board of directors aspires to make balance between the higher interest rate which achieved with the higher levels of the borrowing and the merits and guarantees provided by keeping adequate capital

Page 150126

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

35 Investments in subsidiaries and associates

Investments in subsidiaries and associates are stated at cost method According to this method investments recorded at cost- cost of acquisition- at the purchase order date less permanent impairment losses if any such impairment losses are recognized in the statement of income

36 Investments available for sale

These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to the initial recognition they are measured at fair value and changes therein other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are derecognized the gain or losses accumu lated in equity is reclassified to the statement of income - if the Company cannot estimate the fair value it can be stated at cost less impairment loss

37 Investments at fair value through profit and loss

This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily acquired for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed together and there is evidence of recent actual transactions that resulted in short-term profit

38 Inventory

a) Agricultural tractors pipes telecommunications

The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in first-out principal

b) Automotive

Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made

c) Consumer Electronics

The raw material inventories are stated at lower of cost or net realizable value The cost raw material is based on the weighted average principal

39 Revenue

bull Sales revenue

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the goods when the buyer receives them and in case of exportation the risks and rewards of the ownership of the sold goods are transferred according to the freight conditions where revenues are usually recognized when the goods are exported

bull Dividends

Revenue is recognized when the companys right to receive the payment is established

bull Credit interest

Credit interest revenues are recognized on the basis of time ratio taking into consideration the rate of return on the original value

Page 13 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

310 Impairment in value of assets

1) Financial assets

A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually significant financial assets are tested for impairment on an individual basis all impairment losses are recognized in the statement of income Impairment losses are reversed in the statement of income when there is evidence recover of the impairment losses

2) Non-financial assets

The Companys non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount A cashshygenerating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that woul d have been determined net of depreciation or amortization if no impairment loss had been recognized

311 Provisions

A provision is recognized when the Company has legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefits will be required to settle these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate

312 Taxes

A Income Tax

Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently being implemented in this regard while using the prevailing income tax at the date of preparing the financial position The tax on income should be reflected in the statement of income

B Deferred taxes

Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities is recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the present value of assets and liabilities It should be taken into account that the deferred tax maybe considered an asset of the company if there is a strong possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set against future taxes

313 Accounts Receivable notes receivable debtors and other debit balances and suppliers Adva nce payments

The accounts receivable debtors and other debit balances suppliers Advance payments are recorded at the original invoice amount net of any impairment losses that are not expected to be collected by the company

Page 14 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

314 Related Parties Transactions

Transactions with related parties are recorded in the same way as in normal course of business according to the conditions stated by the companys management and on the same basis as transactions with others

315 Legal reserve

According to the companys status 5 of the net profit is to be deducted through apportion account for the purpose of forming legal reserves such deductions should stop when the legal reserves are equal to 50 of the companys issued capital in the event the said reserve falls below percentage deduction is resumed

316 Employees Benefits

The company is paying its share in the social insurance according to the Social Insurance Act No 79 of in 1975 as amended and is recognized in wages and salaries in the statement of income according to the accrual basis

317 The Contingents Liabilities And Commitments

The contingent liabilities of which the company is part of as well as commitments appear off the financial position as they dont represent actual assets or liabilities at the date of financial statements

318 Dividends

Dividends are recognized as obligation in the period in which the declarations of distributions are made

319 Cash Flow Statement

The cash flow statement is prepared according to the indirect method

320 Cash and cash equivalents

For the Purpose of preparing the cash flow statement Cash and cash equivalent include cash on hand and at banks time deposits less than three month and letter of grantees cover less than three months

321 Comparative Figures

The comparative figures are reclassified when it is necessary to comply with the current figures The current years comparative figures werent amended

322 Earnings per share

The company presented the data related to the basic share of its regular shares Earnings per share is calculated by dividing the companys profits on the number of ordinary shares of the company by the weighted average of the number of shares during the year

323 Capital management

- The Board of Directors policy is to maintain a strong capital base to keep investor creditors and market confidence and to sustain future development of the business

- The board of directors aspires to make balance between the higher interest rate which achieved with the higher levels of the borrowing and the merits and guarantees provided by keeping adequate capital

Page 150126

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

310 Impairment in value of assets

1) Financial assets

A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually significant financial assets are tested for impairment on an individual basis all impairment losses are recognized in the statement of income Impairment losses are reversed in the statement of income when there is evidence recover of the impairment losses

2) Non-financial assets

The Companys non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount A cashshygenerating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that woul d have been determined net of depreciation or amortization if no impairment loss had been recognized

311 Provisions

A provision is recognized when the Company has legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefits will be required to settle these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate

312 Taxes

A Income Tax

Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently being implemented in this regard while using the prevailing income tax at the date of preparing the financial position The tax on income should be reflected in the statement of income

B Deferred taxes

Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities is recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the present value of assets and liabilities It should be taken into account that the deferred tax maybe considered an asset of the company if there is a strong possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set against future taxes

313 Accounts Receivable notes receivable debtors and other debit balances and suppliers Adva nce payments

The accounts receivable debtors and other debit balances suppliers Advance payments are recorded at the original invoice amount net of any impairment losses that are not expected to be collected by the company

Page 14 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

314 Related Parties Transactions

Transactions with related parties are recorded in the same way as in normal course of business according to the conditions stated by the companys management and on the same basis as transactions with others

315 Legal reserve

According to the companys status 5 of the net profit is to be deducted through apportion account for the purpose of forming legal reserves such deductions should stop when the legal reserves are equal to 50 of the companys issued capital in the event the said reserve falls below percentage deduction is resumed

316 Employees Benefits

The company is paying its share in the social insurance according to the Social Insurance Act No 79 of in 1975 as amended and is recognized in wages and salaries in the statement of income according to the accrual basis

317 The Contingents Liabilities And Commitments

The contingent liabilities of which the company is part of as well as commitments appear off the financial position as they dont represent actual assets or liabilities at the date of financial statements

318 Dividends

Dividends are recognized as obligation in the period in which the declarations of distributions are made

319 Cash Flow Statement

The cash flow statement is prepared according to the indirect method

320 Cash and cash equivalents

For the Purpose of preparing the cash flow statement Cash and cash equivalent include cash on hand and at banks time deposits less than three month and letter of grantees cover less than three months

321 Comparative Figures

The comparative figures are reclassified when it is necessary to comply with the current figures The current years comparative figures werent amended

322 Earnings per share

The company presented the data related to the basic share of its regular shares Earnings per share is calculated by dividing the companys profits on the number of ordinary shares of the company by the weighted average of the number of shares during the year

323 Capital management

- The Board of Directors policy is to maintain a strong capital base to keep investor creditors and market confidence and to sustain future development of the business

- The board of directors aspires to make balance between the higher interest rate which achieved with the higher levels of the borrowing and the merits and guarantees provided by keeping adequate capital

Page 150126

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Financial statements for the ended 31 18

3 Significant accounting policies (followed)

314 Related Parties Transactions

Transactions with related parties are recorded in the same way as in normal course of business according to the conditions stated by the companys management and on the same basis as transactions with others

315 Legal reserve

According to the companys status 5 of the net profit is to be deducted through apportion account for the purpose of forming legal reserves such deductions should stop when the legal reserves are equal to 50 of the companys issued capital in the event the said reserve falls below percentage deduction is resumed

316 Employees Benefits

The company is paying its share in the social insurance according to the Social Insurance Act No 79 of in 1975 as amended and is recognized in wages and salaries in the statement of income according to the accrual basis

317 The Contingents Liabilities And Commitments

The contingent liabilities of which the company is part of as well as commitments appear off the financial position as they dont represent actual assets or liabilities at the date of financial statements

318 Dividends

Dividends are recognized as obligation in the period in which the declarations of distributions are made

319 Cash Flow Statement

The cash flow statement is prepared according to the indirect method

320 Cash and cash equivalents

For the Purpose of preparing the cash flow statement Cash and cash equivalent include cash on hand and at banks time deposits less than three month and letter of grantees cover less than three months

321 Comparative Figures

The comparative figures are reclassified when it is necessary to comply with the current figures The current years comparative figures werent amended

322 Earnings per share

The company presented the data related to the basic share of its regular shares Earnings per share is calculated by dividing the companys profits on the number of ordinary shares of the company by the weighted average of the number of shares during the year

323 Capital management

- The Board of Directors policy is to maintain a strong capital base to keep investor creditors and market confidence and to sustain future development of the business

- The board of directors aspires to make balance between the higher interest rate which achieved with the higher levels of the borrowing and the merits and guarantees provided by keeping adequate capital

Page 150126

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

3 Significant accounting policies (followed)

324 Fair value of financial instruments

The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes payable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments doesnt differ significantly from its book value at the date of the preparation of the financial statements

325 Financial instruments and risk management related

The companys financial instruments are represented in bank accounts Cash on hand amp at banks Receivables ampNotes Receivables Debtors amp other debit balances creditors and other credit balances The following shows the risks related to the financial instruments and the procedures followed by the company to minimize the effect of such risks

1) Credit risk

This risk is represented in the disability of clients to pay their liabilities and this risk in considered limited as the clients have good reputation

2) Liquidity risk

The liquidity risk is represented by factors that impact the repayment of amount or all of the companys commitment according to the companys policy the suitable policies are taken to decrease the risk level to the minimum

3) Interest rate risk

This risk is represented in the fluctuation in the financial instrument due to the fluctuation of the market interest rates which could affect the results of operation This risk is considered limited because the company is using fixed interest contracts for each transaction separately

4) Foreign currency risk

The foreign currency risk is the fluctuation of currency exchange rates since that affect the companys receivables and payables balance in foreign currency also asset and liability evaluation in foreign cu rrency Also as it is indicated in note (31) the assets and liabilities in foreign currency are evaluated using the official rate in the date of financial statements

Page 16 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets

Machinery Furniture

Buildings and equipment and office Elevators and

Description Land constructions and Devices vehicles devices computers air conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost in January 1 2018 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Addition during the year 11 772400 2554482 2532000 1 429961 2173589 522644 5654747 26639823

Balance in December 31 2018 19058400 16164432 19322431 14581654 15014027 11572017 6981 775 21 385804 124080540

Accumulated depreciation in January 1 2018 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871190

Depreciation of the year 808222 1 631 967 1 671 550 1 987868 1 782672 631 209 974313 9487801

Accumulated depreciation in December 31 2018 15025254 14858387 9567001 9050420 9789346 5088152 1 980431 65358991

Net book value in December 31 2018 19058400 1139178 4464044 5014653 5963607 1 782671 1 893623 19405373 58721 549

This figure is comprised of 2 839 012 Egyptian pounds as book value of assets completely depreciated but still in use

3111212018

EGP Machinery equipment And Device 47060

vehicles 1 748836 Furniture and office device 13258

computers 1 029858 2839012

Page 17 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Separate Financial statements for the year ended 31 December2018

4- Fixed Assets (Followed)

Machinery Fumiture

Buildings and equipment and office Elevators and air

Description Land constructions and Devices vehicles devices computers conditioners Decorations Total

EGP EGP EGP EGP EGP EGP EGP EGP EGP

Cost at 112017 7286000 16164432 14356263 9922654 7000703 7749572 6012917 9152254 77 644795

Addition during the year 2411 686 2127000 6583363 1 648856 446214 6578803 19795922

Cost at 31122017 7286000 16164432 16767949 12049654 13584066 9398428 6459131 15731057 97440717

Accumulated depreciation at 112017 13408810 11337323 6510718 4888715 6614920 3789546 440387 46990419

Depreciation of the year 808222 1 889097 1 384733 2173837 1 391 754 667397 565731 8880771

Accumulated depreciation at 31122017 14217032 13226420 7895451 7062552 8006674 4456943 1 006118 55871 190

Net book value as of 31122017 7286000 1 947400 3541 529 4154203 6521 514 1 391 754 2002188 14724939 41 569527

This figure is comprised of 1 542 787 Egyptian pounds as book value of assets completely depreciated but still in use

31 12201 7

EGP Machinery equipment And Device 47060

vehicles 1 171 962 Furniture and office device 10044

computers 313721 1 542787

Page 18 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

5- Investments property

EI Mohandeseen EIObour Description Showroom Showroom Total

EGP EGP EGP

Cost in January 1 2018 9400498 9400499

Balance in December 312018 9400498 9400499

Accumulated depreciation at January 1 2018 6631 997 6631 997

Depreciation of the year 470025 470025

Accumulated depreciation at December 312018 7102022 7102022

Net book value in December 31 2018 2298476 2298477

Net book value in December 312017 2768501 2768502

6shy Projects under construction

10th of Ramadan Buildings

Abo Rawash Buildings

31122018

EGP

158001

244349

30122017

EGP

7- Investments in subsidiaries and associates

31122018

Investment Percentage

Number of

Subsidiaries Shares

MM Group for Export amp

Import 99 9900

Qanawat for trading and distribution company 6267 6266666

402350

Value

EGP

Investment Percentage

30122017

Number of Value

EGP

99000 99 9900 99000

111 365685 3750 3750000 37500000

Associated Companies

Mediterranean Industrial company (Previously 4960 2480 2041459 4960 2480 2041459

Egyptian Ukraine company)

BPE Capital limited company 4310 14000000 14000000 4310 14000000 14 000 000

Ebtikar for Financial 5617 2237619 223761 900 4999 324996 32499600

Investment company Modern technology services

3500 525000 5250000 3500 525000 5250000 company

245053359 53791 059

111464685 37599000

356518044 91 390059

(Less)

Impairment in investments (388774) (388774)

in associated companies bullbullbull

356129270 91 001 285

bull The investment was reclassified in the subsidiaries according to purchase of 2516166 shares of the investments in Qanawat for trading and distribution company so that increase in the share from 375 to 6267 and so controlling the financial policies of the company

bullbull According to the shareholders agreement of the Ebtkar for financial investment company which states that there is non-control over the operational and financial policies of MM Group for Industry and International Trade Company and therefore has been classified investment in Ebtkar for financial investment company as an investment in sister companies

According to the authorized report by the general authority for investment in 2016 an impairment amounted to EGP 388774 of Egyptian Ukraine company

Page 19 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

8- Investments available for sale

Global Telecom Holding

Egypt for Tourism Resorts

share

Percentage

0001

000024

Purchase

Cost

EGP

188583

55145

Revaluation

differences

EGP

(98555)

(11 395)

Market Value

31122018

90028

43750

Market value

31122017

179087

377 000

243728 (109 950) 133778 556087

9- Inventory

31122018 31122017

EGP EGP

Equipment available for sale 307241513 392007 108

Spare Parts 28510353 21078278

Goods in transit 197514172 118836582

533266038 531 921 968

(Less)

Impairment of inventory (13306159) (12821 512)

519959879 519100456

10- Receivables amp Notes Receivables 31122018 31122017

EGP EGP

Accounts Receivables 279502074 340882926

Notes Receivable 56712115 36336213

Notes receivable under collection 3741044 10572 202

339955233 387791 341

(Less)

Impairment of receivables amp notes receivables (13190833) (12402799)

326764400 375388542

11- Related Parties Transactions

1) Due from related parties

Mediterranean industrial company (Previously Egyptian Ukraine company)

MM group for export and import company

Ebtikar for Financial Investment company

TBE Egypt for payment solutions and services company

Qanawat for trading and distribution company

Modern technology services company

31122018

EGP

7920420

266546

1 464050

31122017

EGP

5317428

177 959

5000000

28689918

5051 580

9651016 44236885

Page 20 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

11- Related Parties Transactions (followed)

2) Due to related parties

31122018 31122017

EGP EGP

MTI for Real Estate Investment 108192955 123136205

BPE Capital limited company 10000000

Shareholders credit balances 55993217 125454798

174186172 248591 003

12- Debtors and other debit balances

Withholding tax

Dividends debtors from associated companies

Vodafone company

Staff loan

Tax Authority VAT

Deposits due to others

Custom authority

Investments debtors

Prepaid expenses

Other debit balances

31122018

EGP

20657206

16875000

11 320635

4657645

1 705733

3976788

5663272

16284844

3111212017

EGP

18 135367

10897387

2968216

14507869

1 414133

3808093

3150000

4311 632

13200254

81 141123 72392951

(Less)

Impairment in debtors and other debit balances (27275) (27275)

81 113848 72365676

13- Non-current assets held for sale

TBE Egypt for payment solutions and services company

31122018

EGP

31122017

EGP

21 246940

21 246 940

According to the of the general assembly meeting held on March 1 2018 approved to sell the Investments in TBE Egypt for payment solutions and services company

14- Investments at fair value through profit and loss

Investments in portfolios managed by others

31122018

EGP

89849390

31122017

EGP

236311 963

89849390 236311 963

Page 21 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and I Financial statements for the 18

is-Cash on hand and at banks

31122018 31122017

EGP EGP

Current Account 86290 078 156173187

Time Deposits 515462 534941

Cash on Hands 4614951 1 759 080

16- Capital

- The authorized of the company was determined to be 100 000 000 EGP and the issued capital was determined on the date of establishment to be 21 000 000 distributed over 210 000 shares at a par value of 100 EGP and a of 5 250 000 EGP and has been registered in the commercial register on 3 1996

- According to the decision of the held on April 30 1997 the authorized capital was increased from 100 000 000 EGP to 150 000 000 and the issued and fully paid-up-capital amounted to 36 900 000 EGP distributed over 369 000 shares at a par value of 100 EGP per share and has been in the commercial 1997

- According to the decision of the tgtvtrrrl ltAmhh held on July 10 2003 the par value of the share was split from 100 EGP per share to EGP resulting in a paid up capital of 36 900 000 distributed on 3 690 000 shares at a par value of LE per share

- According to the decision of the board of directors held on 18 2006 the issued and paid up capital was increased from 36 900 000 EGP to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 EGP per share and has been in the commercial NO 555 on May 292006

- According to the decision of the board of directors held on March 3 2007 the issued and paid up capital was increase from 60 000 000 EGP to 90 000 000 EGP distributed over 9 000 000 shares at a par value of 10 EGP per share and has been in the commercial register NO 531 on April 22 2007

- According to the decision of the board of directors held on December 102007 the issued and paid up capital was increased from 90 000 000 EGP to 120 000 000 LE distributed over 12 000 000 shares at a par value of 10 EGP per share and has been registered in the commercial register NO 1767 on December 232007

- According to the decision of the board of directors meeting held on December 13 2008 the issued and up capital was increased from 150 000 000 EGP to 500 000 000 EGP and has been in the commercial NO 627 on April 21 2008

- The company then increased its issued and capital from 120 000 000 EGP to 180 000 000 EGP and has been in the commercial register NO 1887 on December 21 2008

to the decision of the board of directors meeting held on May 12 2010 the issued and up capital was increased from 180 000 000 EGP to 198 000 000 EGP million distributed over 19 000 shares with a par value of EGP1 a per share and has been registered in the commercial NO 1167 onMay 25 2010

Ar-rArrllnr1 to the decision of the general assembly held on September 27 2014 the issued and up was increased from 198 000 000 EGP to 264 000 000 EGP distributed over 26 400 000

shares with a par value of 10 EGP per share and has been registered in the commercial on March 162015

AccordlrlQ to the decision of the assembly held on June 18 2015 the issued and up was increased from 264 000 000 to 396 000 000 EGP from the general reserve a total of 132 000 000 EGP which was ultimately distributed across 39 600 000 shares at a par value of EGP per share and has been in the commercial register on October 25 2015

220f26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

1S- Capital (followed)

- According to the decision of the extraordinary general assembly held on April 4 2016 the company split the par value of shares from 10 EGP per share to 1 EGP per share distributed over 369000000 shares at a par value of 1 EGP per share and increase the authorized capital form 500 000 000 EGP to 1 000000000 EGP and has been registered in the commercial register on June 92016

- According to the decision of the extraordinary general assembly held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated entities MM Group for Industry and International Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 EGP distributed over 396 000 000 shares at a par value of 62 EGP and has been registered in the commercial register on December 292016

- According to the decision of the extraordinary general assembly held on May 24 2018 the issued and paid up capital was increased from 245 520 000 EGP to 306 900 000 EGP from the Retained earnings using a 61 380000 EGP which was ultimately distributed across 495 000 000 shares at a par value of 062 EGP per share and has been registered in the commercial register on July 10 2018

17- Provisions

31122018 31122017

EGP EGP

Beginning Balance

Transactions during the year

Provision during year

38120574

(9970574)

805382

78150000 (40029426)

28955382 38120574

18- Suppliers and Notes Payables

Suppliers

Notes Payable

31122018

EGP

280429948

9075265

289505213

31122017

EGP

543 325921

2580833

545 90S 754

19-Accrued income tax

31122018 31122017

EGP EGP

Beginning for the year 73143008 102012702

Income tax expense 71 057509 73143008

Payment for tax authority (73143008) (102012702)

Tax in advance (61 207623)

9849886 73143008

Page 23 or26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) r Financial statements for the year ended 31 December 2018

20- Creditors and other credit balances

Tax authority -VAT

Ministry of Health - Takaful contribution for health insurance

Creditor of fixed assets purchased

Tax authority - Dividends Tax

Tax authority

Accrued Expenses

Distribution creditors

Other credit balances

31122018

EGP

22493741

8182905

7772400

5228708

629554

4512971

31122017

EGP

13196075

3765500

514 276

6647003

3923602

48820279 28046456

21- Net Sales

Consumer Electronics activity

Telecommunication activity

Automotive activity

Tractors and Pipes activity

31122018

EGP

4556179584

1 440328626

777452550

46391 562

31122017

EGP

4521411512

1 259546296

298227252

44772139

6820352322 6123957199

22- Cost of Sales

31122018 31122017

EGP EGP

Consumer Electronics activity 4262929192 4213167267

Telecommunication activity 1 374559239 1 205522086

Automotive activity 661 251 464 247379 100

Tractors and Pipes activity 31 056723 29248791

6329796618 5695317244

23-Sales amp distributions Expenses

Salaries and Wages

Sales Commission expenses

Export expenses

Depreciation of fixed assets

Other Expenses

31122018

EGP

71 003470

11 593339

2885979

7924169

67901412

31122017

EGP

52974176

9992682

5062484

6636661

56425610

161 308369 131091613

Page 24 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

MM Group for Industry and International Trade (SAE) Financial statements for the year ended 31 December 2018

24-General amp Administrative Expenses

31122018 31122017f EGP EGP

Salaries and Wages 2504372 3 074 049

f Professional Expenses 137912 327831

Transportation Fees 247340 769615

Other Expenses 2137314 2838232

5026938 7009727

25- Earnings per share (EGP 1share)

31122018 31122017

EGP EGP

Net profit after tax 258432 042 271 703771

Less

Employees profit share 24551 044 25811 858

Board of directors profit share 23016544 24584258

210864454 221 307655

Weighted average of shares 445500 000 396 000 000

Earnings per share (EGPshare) 047 056

Weighted average of shares

31122018

EGP

396 000 000 x 1212= 396 000 000

Add

99 000 000 x 126 = 49500 000

445500000

According to Suggestion of the Board of Directors for the purpose to Calculate earnings per share

Page 25 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26

l r MM Group for Industry and International Trade (SAE)

Financial statements for the year ended 31 December 2018

26- Tax Status

The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows

1 Corporate Tax

- Corporate tax was inspected and settled till 31 December 2014 also the inspection and objection was made for the years 2015 amp 2016

- The Company submits tax returns regularly in accordance with the legal cut-off dates

2 VAT tax

- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates

3 Stamp Tax

- Stamp duty tax has been inspected and settled up to 31 June 2006 and no inspection has been made up to 2010 An estimated value was declared as per form (19) and was appealed to by the company with no set date for discussion by the internal committee of the tax authority

4 Withholding tax

Withholding tax was paid up to 31 December 2018 was inspected till 31 December 2017 and was appealed by the company to claim tax authority

5 Payroll Tax

- Payroll Tax was inspected and settled for the years 2005 through 2012

-The Company submits monthly reconciliations in accordance with the legal cut-off dates

Chairman Financial Manager

Khaled Gamal Mohamed Mahmoud

Page 26 of26