World Bank Group Donor Forum. Paris - May 17-18, 2011

Transcription

1 World Bank Group Donor Forum Paris - May 17-18, 2011

2 Wadi Group-IFC Collaboration for Sustained Growth

3 Establishment The founding families, Freiji & Nasrallah, started in the Poultry Business over 40 years ago. Over 30 companies established in Lebanon, Syria, Jordan, Saudi Arabia, Egypt & Sudan. Wadi Group s first companies were established in Egypt in 1984.

4 Current Structure 16 Companies 2 Main Divisions Agro-Food and Industrial

5 Consumer Products Pickled olives & vegetables, olive oil, various pastes Organic Fresh Herbs, Fruits & Vegetables

6 Consumer Products Poultry Meat Fresh and Further Processed Products

7 Products to Poultry Growers Poultry Feed for Layer and Broiler flocks

8 Products to Poultry Growers Hatching Eggs, Day old broiler, layer, and broiler parent chicks

9 Environmental cooling products Cooling Cell Pads

10 Glass packaging products for food and beverage processors Glass Containers

11 Soybean Crushing Plant Monocalcium Phosphate Plant Choline Chloride Plant

12 Fish Farming

13 River Port Terminal

14 Wadi Group Historical 14

15 Group Performance 1,000,000 Revenue Growth Sales in 1000 USD 750, , ,000 0 '04 '06 '08 '10 '12 '14 '16 '18 ' : Targeting average annual growth of 30%. Years

16 Sales in 1000 USD Group Performance 800, , , ,000 0 Local vs Export Sales '02'04'06'08'10'12'14'16'18'20 Local Export Export started in year 2000, Spanned over 25 countries Targeting 20% of total sales starting 2015 Years

17 Number of Full Time Employees Group Performance Employment Growth '98 '00 '02 '04 '06 '08 '10 '12 '15 Poultry Agro-Food Feed Industries Administration 3-D Column 8 Expected to reach 5700 full time employees by 2015 Years

18 400,000 Group Performance Fixed Capital Investments 300,000 In 1000 USD 200, ,000 0 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Poultry / Fish Feed 3-D Column 8 Agro-Food Industries Planned Investments of USD 200 Million Years

19 Wadi Group / IFC 19

20 Collaboration with IFC Corporate Finance: Four Medium Term Loan for a total of US$ 57.5 Million starting from in 1997 to finance expansions in poultry, agriculture, food and industries in Lebanon and Egypt.

21 Collaboration with IFC Advisory Services: Feasibility study for broiler contract farming: Vertical integration of the broiler operation with an objective to improve grower s performance and hedging market risk. - Corporate governance advisory: Identification of issues and recommendations to develop good corporate governance practices in board structure, control environment, minority shareholders rights, transparency and disclosure, and family business principles and policies.

22 Collaboration with IFC Advisory Services: Family Business Advice: Assistance in setting up family council and education & communication sub-committees, formulating family employment policy, and facilitating the first two family assemblies. - Organic waste optimization program: Recommendations to minimize waste from operations, improve quality of organic composting, and assess BioCarbon credit possibilities.

23 Collaboration with IFC Training and Seminars: - Management Training Program EDGE. - Joint technical seminar on the Avian Influenza. - Presentation of Wadi Case Study at IFC Training Seminar Is training an expense or an investment? - Presentation of Wadi s Corporate Governance practice Reporting on Corporate Governance in the Mashreq Region IFC/Reuters joint workshop. - Joint presentation of family employment policy Arab German Family Business Summit. - Presentation of Case Study: Wadi Family Governance Yemeni Businessmen Club Family Conference in Sana a, Yemen.

24 Why work with IFC? 24

25 Why work with IFC? Market s perception of IFC: - IFC is bureaucratic and loan request procedures are lengthy and difficult to follow. - Financing or refinancing decisions are made in Washington by staff not sensitive to regional circumstances. - Loan collaterals and securities are exaggerated and often involve the personal guarantees of project owners. - Fees (front end, commitment, availability, waiver, legal) and out of pocket expenses increase the cost of loan substantially. - Conditions for first and subsequent disbursements are complex. - World Bank political outlook and financial policies prevail over IFC s financing ability.

26 Why work with IFC? Wadi s financing experience: - IFC is able to fund on a long term basis while local banks rarely exceed a tenor of five years. - IFC is able to finance agricultural projects while local banks are only willing to finance the manufacturing and trading activities. - Local banks lack the expertise needed to evaluate new projects technically, which may lead to declining the financing or increasing the cost and securities. - IFC can lend in foreign currency on long term basis while local banks may prefer extending foreign currency only on short term basis. - Companies financed by IFC are perceived as well managed and good performing organizations by other potential creditors in the market.

27 Why work with IFC? Wadi s development experience: - Long term relationship with IFC has helped in laying the groundwork for continuous quality improvement throughout Wadi. - IFC has shouldered the responsibility of setting the expectations high and aligning Wadi with international standards. - IFC has steered Wadi in constantly assessing the organizational risks and adopting protective or hedging mechanisms against them. - IFC has alerted Wadi of the importance of Corporate Governance principles to sustain continuity and growth (Family Governance, Minority Rights, Control Environment, Board Directorship). - IFC has fostered Wadi s investment in human capital in conjuncture with social/ environmental awareness and accountabilities.

28 Wadi s development experience: During the past 3 years, Wadi Group engaged on a journey of managerial systems development with in parallel a series of environmental performance benchmarking composed of various ledgers Quality Corporate Social Responsibility and Environment

29 Why work with IFC? Wadi s communication experience: - IFC has improved Wadi s communication through timely and informative reporting. - Annual Environmental Action Plan: A quality incubation program that highlighted the pressing issues and their subsequent KPI s. - Annual Monitoring Report: A tool used in identifying viable alternatives to improve manufacturing processes, energy and water utilization, products and services quality, and management health and safety practices.

30 Why work with IFC? Wadi s communication experience: - Operations Review: A detailed and timely analysis of the markets, the operations, and the financial results communicated to creditors and shareholders. - Financial Reports: IFRS compliant Individual and Consolidated financial reports, issued on quarterly and annual basis, with ratio analysis. - Internal Communication: Created under HR to provide tactics for effectively delivering key messages and engaging with staff. - External Communication: Hired a PR agency to develop comprehensive communication objectives and media relations.

31 Why work with IFC? Wadi s Human Capital experience: Human Capital remains to be the main challenger for achieving sustained growth in Egypt. - Wadi s aim is to be the employer of choice: - By making the prosperity of our employees one of our key priorities. - By building a more service oriented organization. - By promoting the One Family Culture throughout the Group.

32 Why work with IFC? Wadi s strategy for being the employer of choice: - Define training needs in light of organizational goals, and provide training to staff that needs it. - Establish compensation and promotion systems based on performance and results.

33 Why work with IFC? Wadi s strategy for being the employer of choice: - Carry out employee surveys. - Practice career and succession planning. - Encourage promotion from within the organization. - Family involvement ex. Summer training for employee s children. - Open up the organization for internships to reach out to future job seekers.

34 Why work with IFC? Wadi s strategy for being the employer of choice: - Promote the organization through regular attendance of employment fairs. - Give preference when hiring to fresh graduates that could be easily blended into the organization s culture. - Reward creativity, team building, constructive communication, and trust. - Prohibit rehiring of staff that resigned. - Involve staff in selection and hiring of new recruits.

35 Why work with IFC? Wadi s strategy outcome: - Employees are motivated and feel valued. - They are part of the family. - They have hope for personal growth. - There is a price to pay in case they decide to leave. - Training is a tool to control turnover of ambitious employees. - Highly skilled, ambitious, and competent employees were only productive in the Wadi environment.

36 Why work with IFC? Wadi s perception of IFC: - IFC is a mentor rather than just a financier. - IFC is multipurpose - creditor, investor, technical advisor, sponsor. - IFC is resourceful global exposure, large and varied client base, qualified and international staff, high-ranking connections. - IFC, through the World Bank affiliation, has a unique relationship with governments and financial institutions. - IFC can enable access to credit at preferential rates and terms in case a financing relationship is already in existence. - IFC is a catalyst for exploring and appraising new investment opportunities. - IFC can be very flexible and fast.

37 Thank you..