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The Directors of GB Auto are pleased to
present their Annual Report together
with the audited consolidated finan-
cial statements for the year ended 31
December 2016
Principal Activities
GB Auto is a leading player in the
MENA region’s automotive industry
and non-bank financial services field.
It is the holding company for a group
of subsidiaries operating at all levels of
the value chain, including assembling,
distributing, and selling passenger cars
and commercial vehicles, manufactur-
ing semi-trailers and superstructures
for trucks and buses, selling automotive
components, motorcycles, and three-
wheelers, tires, and construction equip-
ment, as well as providing after-sales
services through a nation-wide after-
sales service network and non-bank
financial services that include financial
leasing, factoring, consumer finance,
and micro financing. The company
owns and operates four manufacturing
and assembly facilities for passenger
cars and commercial vehicles.
The detailed analysis by line of busi-
ness is dealt with by management
elsewhere in this Annual Report.
Operating results
The consolidated group revenue for
the year 2016 reached LE 15,285.7 mil-
lion versus LE 12,264.7 million the
previous year, a decrease of 24.6%. Net
loss for the year stood at LE 865.7 mil-
lion, falling by 471.4% from 2015 levels.
Dividends
The shareholders will discuss any sug-
gested profit distributions at the upcom-
ing Annual General AssemblyMeeting.
Directors
The Directors of the company are
shownonpages 48 and49of thisAnnual
Report. Also provided is their industry
background information. The Board is
constituted of four Non-Executive Di-
rectors and three ExecutiveDirectors.
Corporate Governance
The Board is committed to and provides
oversight to the management of GB Auto
and its subsidiaries, meeting at least
three times eachyear. TheBoardhas cre-
ated aCorporateGovernanceCommittee
ofthreemembers,anAuditCommitteeof
three independent directors along with
representatives from company manage-
ment, and a Remuneration Committee
made up of three independent directors
together with representatives fromcom-
panymanagement.
Employees
The number of employees at GB Auto
as of 31 December 2016 was 10,100 in-
cluding all subsidiaries and ventures.
Shareholders
The shareholding structure of the
company as of 31 December 2016 was
as follows: Dr. Raouf Ghabbour family
and related parties holding 59.9%; pub-
lic holding 40.1%.
Annual General Meeting
The annual general meeting was held
at 11:00 am on 19 April 2017 at the GB
Academy Building, 6th of October –
KM 28, Cairo-Alexandria Desert Road.
Auditor
A resolution will be proposed to ap-
point the external auditor and autho-
rize the fees charged. The external
auditor authorizes the directors to
determine their remuneration at the
Annual General Meeting.
Approved by the Board
26
th
March, 2017
Board
Report
2016 ANNUAL REPORT
60
Audited Financial Statements