R E S P O N S I B L E I N V E S T I N G : A W I N - W I N E Q UAT I O N
Energy
|
Cement
|
Transportation & Logistics
|
Mining | Agrifoods
EGX Sustainability Conference | October 25, 2015
African Leader in Infrastructure and Industry
Qalaa Holdings (CCAP.CA on the Egyptian Stock Exchange) is an African leader in infrastructure and industry. Formerly
known as Citadel Capital, Qalaa Holdings controls subsidiaries in core industries including Energy, Cement, Agrifoods,
Transportation & Logistics, and Mining
Leadership in Core Industries Across MEA
Syria
ENERGY
CEMENT
Deep Regional
Knowledge, Strong
Industry Know-How
Experienced and
Dedicated Management
Team
EGP 9.1 bn
EGP 2.9 bn^
Paid-in capital
Market capitalization
Revenue Progression
EBITDA Progression
(in EGP bn)
(in EGP mn)
TRANSPORTATION &
LOGISTICS
2Q14
181.2
Current Operations
Potential Operations
289.3
2.09
AGRIFOODS
1.56
MINING
2Q15
2Q14
2Q15
^ As of October 11, 2015 – Share price of EGP 1.83
EGX Sustainability Conference
2
Our View on Responsible Investing
Qalaa Holdings’ views responsible investments as a self-regulating mechanism whereby we can monitor and ensure
that our policies and actions have a positive impact on our environment, employees, communities, and stakeholders.
Our investment strategy aims to generate social and environmental impact alongside financial return
Subsidiaries
Social
Environmental
Economic
EGX Sustainability Conference
3
Importance of Responsible Investing
We firmly believe that we have a duty towards the communities
in which we do business, and our aim is to make a long-lasting
impact that leaves them in better conditions than before.
•
Our investments create jobs and help make economies
more efficient, more sustainable and more globally
competitive.
•
At Qalaa Holdings, the double bottom line is taken into
consideration with every investment decision. “ The
Double Bottom Line,” is a term coined to measure a
company’s success based on both positive social impact
and financial performance
Environmental
Sustainability
Economic
Social
EGX Sustainability Conference
4
Pillars of our Sustainability & Corporate Responsibility
Program
Human Capital & Social Development
Education
138 and counting
scholarships for graduate
studies abroad awarded by
the Qalaa Holdings
Scholarship Foundation
(QHSF)
US$
30,000
donated annually to the
Qalaa Holdings Financial
Services Center (QHFS)
at the American University
in Cairo
Management
Training
Over US$
100,000
contributed by RVR
Management Training
Program for the training of
over 6000 residents in
Kenya and Uganda in
management and
entrepreneurship
Sustainability & Governance
Skills &
Vocational
Training
Community
Development
Environmental
Sustainability
Governance &
Transparency
500 Welders
13,000
30%
feddans
of farmland in Sudan are
being rehabilitated by
Wafra for local
communities
reduction in the total
amount of SO2 emissions
as a result of cleaner Euro
V diesel supplied by the
Egyptian Refining
Company (ERC)
Investing in Internal
Audit committee as
a key element of
QH’s management
trained by the Egyptian
Refining Company (ERC)
270
4+
22%
145,000 tons
credit hours of academic
courses for ASEC
Engineering’s Professional
Diploma for the Cement
Industry
schools renovated in Sudan
as well as the
establishment of farmers
training programs
of agricultural yield at
Sudanese agricultural
producer, Wafra, is
earmarked for the local
community
of agricultural waste
collected and processed in
FY14 by solid waste
management company,
Tawazon
Continued
refinement of policy
& charters
• Risk Assessment
Framework
• Anti fraud & insider
trading policy
• New financial
reporting systems
EGX Sustainability Conference
5
Qalaa Holdings Scholarship Foundation (QHSF)
Facts about QHSF
Established in 2007 by Qalaa Holdings
138 awarded scholarships
Open to all academic disciplines
124 Master’s degrees and 15 PhDs
Applicants agree to return to work in Egypt
EGX Sustainability Conference
6
Video: RVR Management Training Program
EGX Sustainability Conference
7
Other Examples of Our Responsible Investing Initiatives
• Africa Railways: Rift Valley Railways (RVR ), the primary investment of Africa Railways, strengthened historic ties with the communities living
along the railway in Kenya through a program called, “Transforming Lives in Africa with Every Move.” The program is carried out at the local
level through 59 Community- Based Organizations.
• Nile Logistics: Provide affordable, reliable, fuel-efficient and environmentally-friendly logistics solutions. River has much lower carbon
footprints than road transport.
• ASCOM: Produces thermal, acoustic and fireproof insulation materials from its US$ 70 million greenfield facility in Egypt. The products play an
important role in the conservation of energy in a wide range of industries. By helping reduce waste energy, they curb the use of fuels that
contribute to climate change through the emission of greenhouse gases.
• TAQA Arabia: TAQA Arabia has converted numerous factories from fuel oil to natural gas and pioneered the conversion of thousands of motor
vehicles from gasoline to the greener compressed natural gas.
• Gozour: Dina Farms, a part of Qalaa Holdings’ agrifoods subsidiary Gozour, is using the world’s top irrigation systems for maximum water
efficiency on its 9,500 feddans of land in Egypt.
EGX Sustainability Conference
8
Environmental Compliance Strategy
Qalaa Holdings’ Environmental Compliance Strategy is drawn from its adherence to local laws , adoption of global
guidelines and close coordination with its DFIs
Laws & Regulations
Reporting Frameworks
Global Guidelines
Ensuring strict compliance across all our
subsidiaries to environmental laws and
regulations adopted in each of the
countries where we operate
Qalaa Holdings works closely with our
Development Financing Institution (DFI)
partners to enhance the company’s
compliance and reporting frameworks
As a member of Global Impact Investing
Network and United Nations Global
Compact, we are committed to adopting
their programs and systems into the
company’s environmental strategy
EGX Sustainability Conference
9
Our Governance Framework
EGX Sustainability Conference
10
Adopting GRI for Measuring Success
We measure our performance against the
indicators of the Global Reporting Initiative
(GRI-G3.1), level A.
Facts about GRI:
•
•
•
•
Among the leading worldwide
sustainability reporting systems,
The official reporting standard of the UN
Global Compact
Applies a rigorous stakeholder
approach to standard development
Universal application and industrytailored guidance
GRI Key Performance Indicators
Direct and Indirect Economic Impacts
Environmental
Energy
Labor Practices
Diversity & Human Rights
Society
Product Responsibility
EGX Sustainability Conference
11
Clear Reporting Lines Facilitating GRI
Qalaa Holdings’ organization structure ensures a decentralized approach in data compilation and facilitates the
adoption of global best practices in sustainability reporting.
Global Reporting Initiative
Energy
Cement
Transportation & Logistics
Mining
EGX Sustainability Conference
12
Global Affiliations & Endorsements
As part of our dedication to responsible investing, Qalaa Holdings is a member of the Global Impact Investing Network
(GIIN) and the United Nations Global Compact (UNGC) Egypt Network.
A non-profit organization dedicated to
increasing the effectiveness of for-profit
investing that addresses social and
environmental challenges. Our
membership in GIIN helps us to select
and apply social, environmental and
financial performance metrics, including
metrics commonly used to assess
performance in our core industries.
The UNGC is the world's largest voluntary
corporate social responsibility initiative
with over 12,000 business and nonbusiness participants from 145 countries,
and is a strategic policy initiative for
businesses that are committed to aligning
their operations and strategies with ten
universally accepted principles in the
areas of human rights, labor,
environment and anti-corruption.
World Finance –
Best Corporate
Governance
Award for 2015
Corporate Livewire
– Innovation
& Excellence
Award – 2015
IOSH Railway
Group
Int. – Job Safety
Award 2015
EGX Sustainability Conference
13
Our Co-investors and Development Finance Institutions
EGX Sustainability Conference
14
10 Years of Investing Responsibly in Africa
EGX Sustainability Conference
15
Thank You
For more info about QH’s Responsible Investing initiatives please visit: www.qalaaholdings.com