To: Heba Serafi
Head of Disclosure at The Egyptian Exchange
7 August 2013
On August 6, the Board of Directors of Orascom Construction Industries SAE discussed material differences between the FY 2012 financial indicators announced on April 30 2013 and the FY 2012 audited financial statements. The following are the material differences:
1- The tax settlement was classified as an expense in 2012 rather than an adjustment to the balance sheet to reflect that this amount is not a correction of error related to previous years, but rather a settlement that was done in 2012.
It is worth noting that the tax settlement on the FY 2012 financial indicators was assumed as an equity adjustment in the balance sheet. Accordingly, there is no impact on the net equity at end of 2012.
2- An initial amendment to Egyptian Fertilizer Company's (EFC) existing natural gas supply agreement with GASCO was reached the natural gas price was amended. The new gas price is based on a formula that factors in the urea selling price and the quantity of gas supplied. By applying this formula the discounted cash flow for EFC is negatively affected by US$ 318 million, which had to be added to the goodwill impairment that was previously announced.
Kind regards,
Omar Darwazah
Head of Investor Relations
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