analysis of Mobinil financial situation in 2005 - 2006

1. Presented to : Dr. Ashraf Ibrahim Case Study 2005-2006

2. Mobinil Profile Since its inception in May 1998, Mobinil has strived to maintain its position as the leading Mobile service operator in Egypt. Mobinil is committed to being the leading Mobile service provider in Egypt, providing the best quality service for the customers, the best working environment for the employees, top value for the shareholders, and proudly contributing to the development of the community.

7. THE FINANCIAL RATIOS

8. 1. Liquidity 2005 2006 Current ratio 29% 27% Quick ratio 28% 25% Cash ratio 14% 8% Horizontal analysis 2005 2006 Inventory 100% 129.23% Accounts receivable 100% 142.60%

9. 2. Assets Management 2005 2006 Inventory turnover 22.62 21.88 Inventory days on hand 15.92 16.45 Accounts receivable turnover 12.18 10.13 Average collecting period 29.55 35.52 Accounts payable turnover 1.02 1.00 Average paying period 354.42 359.18 Fixed assets turnover 0.97 0.99 Total assets turnover 0.83 0.86

10. 3. Debt 2005 2006 Debt ratio 0.76 0.78 Debt / equity ratio 0.86 1.09 Times interest earned 14.40 12.31 Horizontal analysis 2005 2006 Total assets 100% 114.44% Long term liabilities 100% 134.44% Total liabilities 100% 117.02% Total Shareholders' Equity 100% 106.22% Vertical analysis 2005 2006 Retained earnings 0.38% 0.49% Reserves 3.06% 3.40%

11. 4. Profitability 2005 2006 Gross profit margin 0.82 0.81 Horizontal analysis 2005 2006 Operating Revenue 100% 118.61% Cost of Service 100% 125.00% Gross Profit 100% 117.21% Operating profit margin 0.52 0.46 Horizontal analysis 2005 2006 Depreciation & Amortization 100% 129.94% General & Administration Expenses 100% 150.07% Operating Profit 100% 104.81% Net profit margin 0.27 0.24 Horizontal analysis 2005 2006 Interest expenses 100% 128.38% Taxes 100% 118.90% Return on total assets 0.22 0.21 Return on equity 0.94 0.93 Earning per share 13.48 14.20

12. CONCLUSION

15. Thank you