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2012 ANNUAL REPORT
5
the Japanese yen is making our Japanese
products including the Fuso chassis
substantially more price-competitive in
the local market. Moreover, the devalu-
ation of the Egyptian pound presents
an opportunity to continue the liquida-
tion of historical high-COGS imported
inventory including steel and imported
components in trailers, Swedish bus and
truck chasse and the like.
Meanwhile, I am absolutely delighted
with the new product innovation on the
bus front coming out of GB Polo and due
to market in the coming two months,
and I look forward to delivering very
important news regarding a new product
offering later this year.
Our goal for the Commercial Vehicles
and Construction Equipment LOB is
simple: To prove that we had the man-
agement skills, vision and persistence to
turn a loss-making line of business into a
profit center.
We see continued solid prospects for
the Motorcycles and Three-Wheelers di-
vision, where motorcycle sales to private
citizens will become an even more im-
portant growth driver in 2013. I also see
outstanding opportunities for us in the
Tires segment, where foreign currency
controls are shifting out of the market
small players who previously imported
tires in small two-to-four container
quantities from the GCC. Instead, these
traders are increasingly reliant on GB
Auto to provide their stock.
Our Financing Business will post
strong double-digit growth this year, and
the After-Sales segment will deliver a full
year of sales from Assiut and Cairo-Is-
maliyya as well as at least a quarter from
the Cairo Ring Road facility that will
open in 2H13.
With that, I will not belabor our
regional prospects in Algeria and Libya,
two very exciting markets where we
recently announced our decisive entry
into the market: passenger cars and tires
in Algeria, and passenger cars, pickup
trucks and tires in Libya. We entered
each of these markets after long study
with the right portfolio of brands, the
right strategy and — critically — the
right local partners. As was the case with
Iraq, I expect each of these markets to
make positive contributions to our bot-
tom line in their first year of operations.
Fellow shareholders, the period ahead
will be tough — but it will also present an
enormously thrilling business challenge.
Dr. Raouf Ghabbour, CEO
“It has become cliché to
say that 2013 represents
“uncharted waters”for
our industry and our
nation, but the simple
fact is that it does not.”
Summary Overview of Performance by Line of Business
(LE million)
2012 2011 %Change 2010 %Change
Passenger Cars
Revenue
6,072.3 5,741.9
5.8 5,383.0
6.7
Total Gross Profit
719.0 569.0
26.4 612.3
-7.1
Gross Profit Margin
%
11.8
9.9
1.9
11.4
(1.5)
Motorcycle & 3-Wheelers
Revenue
1,209.0 1,001.6
20.7 624.7
60.3
Gross Profit
228.5
254.4
(10.2)
169.7
49.9
Gross Profit Margin
% 18.9 25.4
(6.5)
27.2
(1.8)
Commercial Vehicles & Construction Equipment
Revenue
465.8
340.5
36.8 665.4
(48.8)
Gross Profit
20.5
6.3
226.5 77.0
(91.9)
Gross Profit Margin
%
4.4
1.8
2.6 11.6
(9.7)
Tires
Revenue
290.1
163.4
77.5 111.7
46.3
Gross Profit
42.7
24.6
73.6 18.5
33.2
Gross Profit Margin
% 14.7 15.1
(0.3)
16.6
(1.5)
Financing Businesses
Revenue
249.0
156.5
59.1 101.3
54.5
Gross Profit
69.4
38.5
80.3 19.6
96.8
Gross Profit Margin
% 27.9 24.6
3.3 19.3
5.3
Others
Revenue
4.0
11.5
(65.1)
33.3
(65.5)
Gross Profit
(10.0)
(9.5)
5.9 (11.5)
(18.0)
Gross Profit Margin
% (249.7)
(82.3)
(167.4)
(34.6)
(47.7)
Group
Revenue
8,290.1 7,415.3
11.8 6,919.4
7.2
Gross Profit
1,070.0
883.3
21.1 885.4
(0.2)
Gross Profit Margin
% 12.9 11.9
1.0 12.8
(0.9)