Madinaty Master Plan - Talaat Moustafa Group

SELECTED FINANCIAL INFORMATIONSelected Financial and Operating DataThe Company is a newly-formed joint stock company incorporated under the laws of Egypt and has no operatinghistory of its own. The Company is a holding company under which, with effect from October 2007, the real estatedevelopment activities conducted by companies in which the Talaat Mostafa family had significant interests havebeen combined as a consolidated group. In October 2007, the Company increased, through a series of transactions,its direct and indirect ownership in Arab Company, San Stefano Real Estate and Alexandria Real Estate to 99.9 percent., 98.4 per cent. and 98.6 per cent. of the issued and outstanding shares, respectively, and increased its ownershipin Alexandria for Urban Development to 100 per cent. of the issued and outstanding shares, comprised of a 40.0 percent. direct interest and a 60.0 per cent. interest held by Alexandria Real Estate. See “Description of TMG —Corporate Structure”. Accordingly, the financial statements included in this offering circular beginning on page F-2,together with the notes thereto are those of the Operating Companies.No historical or pro forma consolidated financial information for TMG taking into account the effects of theRestructuring is included in this offering circular. The Financial Statements cannot simply be combined to establishor estimate the consolidated financial position or results of operations of the TMG consolidated group that wascreated through the Restructuring. The future presentation of consolidated financial information for TMG willinvolve the application of EAS 29 relating to business combinations. This will require, among other matters,determining which constituent company is to be treated as the accounting acquirer in the transactions comprisingthe Restructuring, establishing the fair values of the assets and liabilities of the constituent companies treated ashaving been acquired for accounting purposes in those transactions and making certain eliminations relating tointercompany transactions.In addition, each of San Stefano Real Estate, Alexandria Real Estate and Alexandria for Urban Development owns aminority interest in ICON, the company holding the Group’s interests in its hotel and resort complexes. Each of SanStefano Real Estate and Alexandria Real Estate accounts for ICON as an investment in their respective financialstatements included in this offering circular (Alexandria for Urban Development is consolidated with AlexandriaReal Estate). As a result of the Restructuring, the Operating Companies will be combined as a consolidated groupunder the Company and ICON will be indirectly majority owned by the Company. Accordingly, ICON will be fullyconsolidated with the Company in the future.The following selected financial information should be read together with the other information contained in thisoffering circular, including “Management’s Discussion and Analysis of Financial Condition and Results ofOperations” and the Financial Statements and related notes included elsewhere in this offering circular. Thisfinancial information is historical and not necessarily indicative of results to be expected in any future period.The following selected income statement, cash flow and balance sheet data, and the Financial Statements includedin this offering circular from which it is derived, was prepared in accordance with EAS in effect at the time ofpreparing the relevant financial statements. EAS differs in certain respects from IFRS. For a description ofsignificant differences between IFRS and EAS, see “Summary of Significant Differences Between IFRS and EAS”.29