Annual Financial Report

Orascom Investment Holding S.A.E

11 November 2025

 

 

     http://www.rns-pdf.londonstockexchange.com/rns/1069H_1-2025-11-11.pdf

Orascom Investment Holding

S.A.E.

Consolidated Financial Statements

As at and for the year ended

December 31, 2023 (IFRS)

Together with the auditor's report

US$

ORASCOM INVESTMENT HOLDING S.A.E.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF
(In thousands of US$)	Note			December31,2023				December31,2022
								Restated (a)
Assets
Property and equipment	15			31,558				18,600
Intangible assets	16			--				--
Investment property	17			--				8,166
Equity accounted investees	13			19,858				24,803
Financial assets at amortized cost	18			47,975				90,471
Financial assets at FVTPL	18			24,332				27,504
Total non-current assets				123,723				169,544
Inventories				35				--
Trade receivables	20			5,208				10,921
Other assets	21			2,057				2,918
Cash and cash equivalents	22			73,583				66,880
Total current assets				80,883				80,719
Total assets				204,606				250,263
Equity
Share capital	23			95,890				95,890
Reserves				(56,507)				(37,025)
Retained earnings				27,532				66,809
Equity attributable to equity holders of the Company				66,915				125,674
Non-controlling interests				(301)				(462)
Total equity				66,614				125,212
Liabilities
Borrowings	24			100,009				77,886
Trade payables and other liabilities	26			-				189
Deferred tax liabilities	19-1			9,396				12,363
Total non-current liabilities				109,405				90,438
Borrowings	24			3,386				1,986
Trade payables and other liabilities	26			15,593				19,784
Income tax liabilities				2,328				4,141
Provisions	25			7,280				8,702
Total current liabilities				28,587				34,613
Total liabilities				137,992				125,051
Total equity and liabilities				204,606				250,263

* The accompanying notes from page (5) to page (47) are an integral part of these consolidated financial statements.

^(a) 2022 figures are being restated to reflect the corrected comparative figures refer to note (3)

Chief Financial Officer                                                                                                                        Chairman

ORASCOM INVESTMENT HOLDING S.A.E.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED
(In thousands of US$, except per share amounts)			Note
					December 31 ,2023		December 31 ,2022 Restated (a)
Continuing operations
Revenues			7		5,754		5,085
Other Income					115		4,843
Total Income					5,869		9,928
Purchases and services			8		(4,761)		(6,444)
Other expenses			10		(225)		(627)
Provisions no longer required / (formed)			25		(1,487)		(1,718)
Personnel cost			9		(9,081)		(5,678)
Depreciation and amortization			11		(1,627)		(579)
Impairment loss of other financial assets			18		(49,448)		614
Operating (loss)					(60,760)		(4,504)
Finance income			12		4,241		23,534
Losses / Gain on financial assets at FVTPL			12		(3,956)		6,467
Finance expense			12		(9,611)		(2,013)
Net foreign currencies translation differences			12		19,783		24,776
Share of profit from equity accounted investee			13		18,103		26,113
Impairment of share of profit from equity accounted investee			13		(18,103)		(26,113)
(Loss) /Profit before income tax					(50,303)		48,260
Income tax expense			14		1,567		(9,997)
(loss) /Profit for the year from continued operations					(48,736)		38,263
Discontinued operations
Gain /(Loss) from discontinued operation (net of income tax)			28		9,434		(620)
(Loss) Profit for the year					(39,302)		37,643
Other comprehensive income:
Items that may subsequently reclassified to profit or loss net of tax
Foreign operations- Foreign currencies translation differences					(19,834)		(19,625)
Total					(19,834)		(19,625)
Total other comprehensive loss for the year					(59,136)		18,018
Profit / (loss) for the year attributable to:
Owners of the Company from continuing operations			27		(48,711)		37,719
Owners of the Company from discontinuing operations			28		9,434		(620)
Non-controlling interests					(25)		544
Total					(39,302)		37,643
Total other comprehensive loss for the year attributable to:
Owners of the Company					(59,197)		17,066
Non-controlling interests					61		952
Total					(59,136)		18,018
(losses) / Earnings per share from continuing operation - basic & diluted			27		(0.0093)		0.0072
Earnings / (losses) per share from discontinued operations- basic & diluted		27			0.0018		(0.0001)
* The accompanying notes from page (5) to page (47) are an integral part of these consolidated financial statements.

^(a) 2022 figures are being restated to reflect the corrected comparative figures refer to note (3)

			ORASCOM INVESTMENT HOLDING S.A.E.
			CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2023
(In thousands of US$)				Note	Share capital		Legal reserve			Translation    reserve				Treasury Share reserve		Other reserves		Total reserves			Retained earnings			Equity attributable to owners of the parent company					Non-controlling interests		Total equity
As of January 1, 2022				23	95,890		25,245			(36,492)				--		--		(11,247)			30,615			115,258					20,214		135,472
Foreign operations- Foreign currencies translation differences					--		--			(20,033)				--		--		(20,033)			--			(20,033)					408		(19,625)
Gain for the year					--		--			--				--		--		--			12,345			12,345					544		12,889
Total comprehensive (loss) for the year					--		--			(20,033)				--		--		(20,033)			12,345			(7,688)					952		(6,736)
Transactions with owners of the Company
Disposal subsidiary with NCI					--		--			--				--		--		--			--			---					(21,628)		(21,628)
Contribution of Koryolink *					--		--			--				--		8,075		8,075			--			8,075					--		8,075
Transferred to legal reserve					--		905			--				--		-		905			(905)			--					--		--
Total transactions with owners of the Company					--		905			--				--		8,075		8,980			(905)			8,075					(21,628)		(13,553)
As of December 31, 2022					95,890		26,150			(56,525)				--		8,075		(22,300)			42,055			115,645					(462)		115,183
(In thousands of US$)					Share capital			Legal reserve			Translation reserves			Treasury Share reserve			Other reserves			Total reserves		Retained earnings				Equity attributable to owners of the parent company				Non-controlling interests		Total equity
As of January 1, 2023				23	95,890			26,150			(56,525)			--			8,075			(22,300)		42,055				115,645				(462)		115,183
Restatements (a)				3	--			--			(6,650)			--			(8,075)			(14,725)		24,754				10,029				--		10,029
As of January 1, 2023, restated (a)					95,890			26,150			(63,175)			--			--			(37,025)		66,809				125,674				(462)		125,212
Foreign operations- Foreign currencies translation differences					--			--			(19,920)			--			--			(19,920)		--				(19,920)				86		(19,834)
Loss for the year					--			--			--			--			-			-		(39,277)				(39,277)				(25)		(39,302)
Total comprehensive (loss) for the year					--			--			(19,920)			--			--			(19,920)		(39,277)				(59,197)				61		(59,136)
Transactions with owners of the company
Payment of NCI Share in investment in Subs					--			--			--			--			--			--		--				--				100		100
Gain from Sale of Treasury Share					--			--			--			449			(11)			438		--				438				--		438
Total transactions with owners of the Company					--			--			--			449			(11)			438		--				438				100		538
As of December 31, 2023					95,890			26,150			(83,095)			449			(11)			(56,507)		27,532				66,915				(301)		66,614
		The accompanying notes from page (5) to page (47) are an integral part of these consolidated financial statements.

^(a) 2022 figures are being restated to reflect the corrected comparative figures refer to note (3)

ORASCOM INVESTMENT HOLDING S.A.E.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED
(In thousands of US$)	Notes			December 31,2023			December 31,2022 Restated (a)
(Loss) /Profit for the year before tax				(50,303)			48,260
Adjustments for:
Depreciation and amortization	11			1,627			579
Finance income	12			(4,241)			(23,534)
Finance expense	12			9,611			2,013
Foreign exchange (gain) /loss				(19,783)			(24,776)
Impairment of financial assets				49,448			(614)
impairment of cash and cash equivalents				--			(53)
(Loss)/Gain from valuation financial assets at fair market value				3,956			(6,467)
Change in provisions	25			1,185			(81)
Changes in other assets				2,533			(1,530)
Changes in other liabilities				(2,353)			(4,779)
Cash flows (used in) by operating activities				(8,320)			(10,982)
Income tax paid				(3,484)			-
Interest received				4,021			105
Net cash flows (used in) operating activities				(7,783)			(10,877)
Cash flows from investing activities
Cash out flow for investments in:
Acquisition of Property and equipment				(6,042)			(10,399)
Acquisition of financial assets				--			(22,671)
Cash proceed from sale process of TWA	28			--			32,000
Cash collected from sales of investment property				18,075
Proceeds from Investments Held for Trading				4,651			--
Cash Paid Investments Held for Trading				(3,799)			--
Cash flows generated by (used in) investing activities				12,885			(1,070)
Cash flows from financing activities
Interest paid	24			(3,238)			(197)
Proceeds from Sale & lease back				4,854			-
Proceeds from loan and bank facilities	24			906			88,058
Payments for finance leasing				(91)			--
Cash from NCI related to their share in subsidiary				100			--
Cash from Sale Treasury share				435
Other financial assets - Koryolink bank				--			(78,694)
Payments for loans and bank facilities	24			--			(14)
Cash flows generated by financing activities				2,966			9,153
Net change in cash and cash equivalents from continuing operations				8,068			(2,794)
Discontinuing operations
Net cash flows generated by / (used in) operating activities				352			(2,451)
Net cash generated by / (used in) discontinued operations				352			(2,451)
Net change in cash and cash equivalents				8,420			(5,245)
Cash and cash equivalents at the beginning of the period				66,880			69,222
Effect of exchange rates on cash and cash equivalents continued				(1,717)			2,903
Cash and cash equivalents at the end of the year				73,583			66,880
* The accompanying notes from page (5) to page (47) are an integral part of these consolidated financial statements.

^(a) 2022 figures are being restated to reflect the corrected comparative figures refer to note (3)

1.     General information

Orascom Investment Holding S.A.E. ("OIH" or the "Company") is an Egyptian Joint Stock Company pursuant to the provisions of the Capital Market Law No. 95 of 1992, and its executive regulations. The Company was registered at Commercial Register under No 394061. The Company's Head Office located at Nile City Towers, Armlet Boulak-Cairo-Egypt. The Company was established on November 29, 2011 (the "inception") and until this date the businesses of the Company were performed under various entities which were controlled by Orascom Telecom Holding, S.A.E. ("OTH"). As part of a larger transaction pursuant to which VimpelCom Ltd had acquired OTH dated April 14, 2011, its shareholders agreed to affect the demerger, whereby, OTH was split into two companies, OTH and the Company ("Demerger"). The Demerger resulted in the transfer of certain telecom, cable and media and technology assets (the "OIH Assets") to the Company.

The Company and its subsidiaries (the "Group") is a mobile telecommunications business operating in high growth emerging markets in the Middle East, Africa and Asia. The Company is a subsidiary of Orascom Telecom Media and Technology Investments S.à.r.l. (the "Ultimate Parent Company").

The Company's shares are listed on the Egyptian Stock Exchange under ISIN number  EGS693V1C014 and has Global Depositary Receipts (GDRs) which are listed on the London Stock Exchange under ISIN number US68555D2062, and Egyptian stock exchange under number 2349649

The information presented in this document for the 12 months ended 31 December 2023 has been presented in thousands of United States Dollar ("US$"), except earnings per share and unless otherwise stated.

2.     Material accounting policies

2.1 Basis of accounting

The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board ("IASB") and adopted by the European Union (hereinafter referred to as "IFRS Accounting Standards").

They were approved and authorized for issue by the Company's board of directors on April 26, 2023.

The Consolidated Financial Statements have been prepared on a going concern basis, as Management have verified the absence of financial, management or other indicators that could indicate critical issues regarding the Group's ability to meet its obligations in the foreseeable future, and during 12 months following the date of authorization. The description of the methods through which the Group manages financial risks is contained in the following note 4 relating to "Financial risk management".

For presentational purposes, the current/non-current distinction has been used for the statement of financial position. The statement of comprehensive income is presented using the one-statement approach. Expenses are analyzed in the statement of profit or loss using a classification based on their nature. The indirect method has been selected to present the cash flows statement.

2.2 Application of new and revised International Financial Reporting Standards ("IFRSs")

2.2.1 New currently effective requirements

Effective date	New standards or amendments
January 1, 2023	IFRS 17 - Insurance Contracts
January 1, 2023	Amendments to IAS 1 - Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current
January 1, 2023	Amendments to IAS 1 - Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies
January 1, 2023	Amendments to IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates
January 1, 2023	Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)

In the current year, the group has applied a number of amendments to IFRS Accounting Standards issued by the IASB that are effective for an accounting period that begins on or after 1 January 2023. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements."

2.2.2 Forthcoming requirements

Effective date	New standards or amendments
January 1, 2024	Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)
January 1, 2024	Non-current Liabilities with Covenants (Amendments to IAS 1)
January 1, 2024	Supplier Finance Arrangements (Amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments: Disclosures)
January 1, 2024	Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
1 January 2025	Lack of Exchangeability - Amendments to IAS 21
1 January 2026	Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7
1 January 2026	Annual Improvements to IFRS Accounting Standards - Volume 11
1 January 2027	IFRS 18 Presentation and Disclosure in Financial Statements
1 January 2027	IFRS 19 Subsidiaries without Public Accountability: Disclosures

"The directors do not expect that the adoption of the standards listed above will have a material impact on the financial statements of the group in future periods, except if indicated below."

2.3 Summary of material accounting principles and policies

The main accounting principles and policies adopted in preparing these consolidated financial statements are set out below. These policies have been applied consistently by the Group entities.

§ Basis of consolidation

Subsidiaries are all entities (including structured entities) over which the Group has control.

The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and can affect those returns through its power over the entity.

The consolidated financial statements include the financial statements of the Company and the financial statements of those entities over which the Company has control, both directly and indirectly, from the date on which control is transferred to the Group until the date such control ceases.

The financial statements used in the consolidation process are those prepared by the individual Group entities in accordance with IFRS Accounting Standards.

§ Consolidation procedures used are as follows:

-     The assets and liabilities and income and expenses of subsidiaries are included on a line-by-line basis, allocating to non-controlling interests, where applicable, the share of equity and profit or loss for the year that is attributable to them.

-     The resulting balances are presented separately in equity and the consolidated income statement; the acquisition method of accounting is used to account for business combinations.

-     The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree, and the equity interests issued by the Group.

-     The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognized amounts of acquiree's identifiable net assets.

-     Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured, and settlement is accounted for within equity. Otherwise, other contingent consideration is remeasured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognized in consolidated profit or loss.

-     Goodwill represents the excess of the cost of an acquisition over the interest acquired in the net fair value at the acquisition date of the assets and liabilities of the entity or business acquired. Goodwill relating to investments accounted for using the equity method is included in the carrying amount of the investment. Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair values of non-controlling interest over the net identifiable assets acquired and the liabilities assumed. If the consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in the consolidated profit or loss.

-     Acquisition costs on business combinations are expensed as incurred, except if they relate to issue debt or equity securities.

-     The purchase of equity holdings from non-controlling holders are accounted for as equity transactions that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration received and the relevant share of the carrying value of net assets of the subsidiary is recorded in equity.

-     Intra-group balances and transactions, and any unrealized income and expenses (except for foreign currency transaction gains or losses) arising from intra-group transactions, are eliminated. Unrealized gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group's interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

§ Interests in equity-accounted investees

The Group's interests in equity-accounted investees comprise interests in associates and a joint venture.

   - Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.

- Interests in associates and the joint venture are accounted for using the equity method. They are initially recognized at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group's share of the profit or loss and OCI of equity accounted investees, until the date on which significant influence or joint control ceases.

The equity method is as follows:

-       The Group's share of the profit or loss of an investee is recognized in the consolidated profit or loss from the date when significant influence begins up to the date when that significant influence ceases or when the investment is classified as held for sale. Investments in associates with negative shareholders' equity are recorded till the Group's interest is reduced to zero and a provision for its losses is accrued only if the Group has a legal or constructive obligation to cover such losses.

-       The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and it's carrying value.

-       If the ownership interest in an associate is reduced, but significant influence is retained, only a proportionate share of the amounts previously recognized in the consolidated other comprehensive income is reclassified to consolidated profit or loss.

-       Unrealized gains and losses generated from transactions between the Company, or its subsidiaries and its investees accounted for using the equity method are eliminated on consolidation for the portion pertaining to the Group; unrealized losses are eliminated unless they represent impairment.

-       Management fees received from associates are included within revenue.

Appendix A includes a list of the entities included in the scope of consolidation.

§ Non-controlling interests

Non-controlling interests of consolidated subsidiaries are presented separately from the Group's equity" therein".

Non-controlling interests that represent current equity interests and entitle their holders to a proportionate share of the net assets of the entity in liquidation, they may be measured at initial recognition either at fair value or in the Proportionate share of the non-controlling interests in the recognized values of the net assets acquired - The Measurement basis for each acquisition transaction is selected separately.

The non-controlling interest in an acquire is initially measured at the non-controlling interest proportionate share in the fair value of the assets, liabilities and contingent consideration recognized on acquisition date.

§ Foreign currency translation

Functional and presentation currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The functional currency of the Company is Egyptian pound. The Consolidated Financial Statements are presented in 'US Dollars' (US$), which is the Group's presentation currency. The numbers disclosed according to the presentation currency "US$" represent the translation of the group financial results recognized in its functional currency "EGP "converted to US$ using the appropriate exchange rates

Transactions and balances

Transactions in foreign currencies are translated into the functional currency of the relevant entity at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated, at the reporting date, into the prevailing exchange rates at that date. Foreign currency exchange differences arising on the settlement of transactions and the translation of the statement of financial position are recognized in the income statement. Gains and losses on long-term financing provided to Group subsidiaries by the parent company, for which settlement is neither planned nor likely to occur, are initially recognized in. other comprehensive income and reclassified to the income statement on disposal of the relevant entity, transaction in foreign currency for non-monetary assets and liabilities carried at historical cost are initially recorded using closing rate at the date of the transaction while items carried at fair value should be reported at the rate that existed when fair values were determined.

If a gain or loss on a non-monetary item is recognized in other comprehensive income, any foreign exchange component of that gain or loss is also recognized in other comprehensive income.

Group companies

The financial statements of the Group entities are translated into the presentation currency as follows:

·      Assets and liabilities are translated at the closing exchange rate.

·      Income and expenses are translated at the average exchange rate for the year.

·      All resulting exchange differences are recognized as a separate component of equity in the "translation reserve" until the group loses control of the relevant subsidiary. When the group disposes of a foreign operation the translation reserve, previously recognized in equity, is transferred to the income statement.

·      Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and are translated at the closing exchange rate; and

·      In the preparation of the consolidated cash flow statement, the cash flows of foreign subsidiaries are translated at the average exchange rate for the year, except for the opening and closing cash balances.

The exchange rates applied in relation to the US$ are as follows:

	Average for the  year ended  December 31, 2023		Closing rate as of December 31, 2023	Average for the year ended December 31, 2022	Closing rate as of December 31, 2022
Egyptian Pound (EGP)	0.0326	0.0324		0.0521	0.0404
Pakistan Rupee (PKR)	0.0036	0.0036		0.00490	0.00442
Euro (EUR)	1.0815	1.1038		1.05374	1.07021
BRL	0.2003	0.2061		0.2723	0.2723
LBP Lebanese Pounds (LBP)	0.00007	0.00007		0.0007	0.0007

Property and equipment

Property and equipment are stated at purchase cost or production cost, net of accumulated depreciation and any impairment losses. Cost includes expenditure directly attributable to bringing the asset to the location and condition necessary for use and any dismantling and removal costs which may be incurred because of contractual obligations, which require the asset to be returned to its original state and condition.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Each asset is treated separately if it has an autonomously determinable useful life and value. Depreciation is charged at rates calculated to write off the costs over their estimated useful lives on a straight-line basis from the date the asset is available and ready for use.

The useful lives of property and equipment and their residual values are reviewed and updated, where necessary, at least at each year-end. Land is not depreciated. When a depreciable asset is composed of identifiable separate components whose useful lives vary significantly from those of other components of the asset, depreciation is calculated for each component separately, applying the "component approach".

The useful lives estimated by the Group for the various categories of property and equipment are as follows:

	Number of years
Buildings	50
Leasehold improvements and renovations	3-8
Machinery	5-10
Computer equipment	3-5
Furniture and fixtures	5-10
Vehicles	3-6

Gains or (losses) arising from the sale or retirement of assets are determined as the difference between the net disposal proceeds and the net carrying amount of the asset sold or retired and are recognized in the income statement in the period incurred.

Leases

With the adoption of IFRS 16, the Group recognizes a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use. Each lease payment is allocated between the principal liability and finance costs. Finance costs are charged to the income statement over the lease period using the effective interest rate method.

As A leasee , right-of-use assets are  initially measured at cost comprising the following: (i) the amount of the initial measurement of lease liability; (ii) any lease payments made at or before the commencement date less any lease incentives received; (iii) any initial direct costs and, if applicable, (iv) restoration costs. Payments associated with short-term leases and leases of low-value assets are recognized as an expense in the income statement on a straight-line basis.

Lease liabilities are initially measured at the net present value of the following: (i) fixed lease payments, (ii) variable lease payment that are based on an index or a rate and, if applicable, (iii) amounts expected to be payable by the lessee under residual value guarantees, and (iv) the exercise price of a purchase option if the lessee is reasonably certain to exercise that option. Lease liabilities do not include any non-lease components that may be included in the related contracts.

Lease payments are subsequently measured at amortized cost and discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group's incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

The right-of-use asset is subsequently depreciated on a straight-line basis over the entire term of the contract, unless the contract provides for the transfer of ownership at the end of the lease term or the cost of the lease reflects the fact that the lessee will exercise the purchase option. In this case, the depreciation must be the shorter of the useful life of the asset and the duration of the contract. The estimated useful lives for right-of-use assets are calculated according to the same criterion applied to owned tangible assets. In addition, the right-of-use asset is decreased by any impairment losses and adjusted to reflect any remeasurement of the associated lease liability.

In the statement of financial position, the Group presents right-of-use assets within property and equipment and lease liabilities within current and non-current borrowings.

In the income statement, interest expense on lease liabilities constitutes a component of financial expenses and is shown separately from the depreciation of right-of-use assets.

Sale and leaseback

An entity (the seller-lessee) transfers an asset to another entity (the buyer-lessor) and leases that asset back from the buyer-lessor, both the seller-lessee and the buyer-lessor shall account for the transfer contract and the lease.

Assessing whether the transfer of the asset is a sale

An entity shall apply the requirements for determining when a performance obligation is satisfied in IFRS 15 to determine whether the transfer of an asset is accounted for as a sale of that asset.

Transfer of the asset is a sale.

 If the transfer of an asset by the seller-lessee satisfies the requirements of IFRS 15 to be accounted for as a sale of the asset:

The seller-lessee shall measure the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right of use retained by the seller-lessee. Accordingly, the seller-lessee shall recognise only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor.

If the fair value of the consideration for the sale of an asset does not equal the fair value of the asset, or if the payments for the lease are not at market rates, an entity shall make the following adjustments to measure the sale proceeds at fair value:

·    Any below-market terms shall be accounted for as a prepayment of lease payments; and

·    Any above-market terms shall be accounted for as additional financing provided by the buyer-lessor to the seller-lessee.

Transfer of the asset is not a sale :

 If the transfer of an asset by the seller-lessee does not satisfy the requirements of IFRS 15 to be accounted for as a sale of the asset, the seller-lessee shall continue to recognise the transferred asset and shall recognise a financial liability equal to the transfer proceeds. It shall account for the financial liability applying IFRS 9.

Impairment of non-financial assets

Assets that have an indefinite useful life - for example, goodwill- are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. In determining an asset's value in use, the estimated future cash flows are discounted using a pre-tax rate that reflects the market's current assessment of the cost of money for the investment period and the specific risk profile of the asset. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units, "CGU"). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the CGUs, or groups of CGUs, that is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognized immediately as an expense and is not subsequently reversed.

Investment property

Investment properties are property (land or a building or part of a building or both) held by the Group to earn rental income or for capital appreciation or both, rather than for sale in the ordinary course of business or for use in supply of goods or services or for administrative purposes. Investment properties are initially measured at cost. The cost of a purchased investment property comprises its purchase price and any directly attributable expenditure.

Directly attributable expenditure includes, for example, professional fees for legal services, property transfer taxes and other transaction costs. Subsequent to initial recognition, the Group has elected to measure investment properties at cost less accumulated depreciation and accumulated impairment losses, if any.

 Investment property is derecognized upon disposal, when it is permanently withdrawn from use and no future economic benefits expected from its disposal. Gains or losses arising from the retirement or disposal of investment property are determined as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the consolidated profit or loss in the period of the retirement or disposal. Reclassifications to / from investment property are made when, and only when, there is a change of use.

Revenue from operating lease rentals is recognized on a straight-line basis over the relevant term of the lease. The rental income generated by investment properties is recognized within revenues in the consolidated income statement.

Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each component of the investment properties. The estimated useful lives of leased units are estimated at 50 years.

Financial assets

§ Recognition and measurement

Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument.

A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

§ Classification and Subsequent Measurement

The Group classifies non-derivative financial assets into the following categories:

·    Amortized cost

·    FVOCI - debt investment

·    FVOCI - equity investment or

·    FVTPL.

Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

·    It is held within a business model whose objective is to hold assets to collect contractual cash flows; and

·    Its contractual terms give rise on specific dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as FVTPL:

·      It is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

·      Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading the Group may irrevocably elect to present subsequent changes in the investment's fair value in OCI. This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

§ Financial assets - Business model assessment

The Group assesses the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed, and information is provided to management. The information considered includes:

·      The stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management's strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities, or expected cash outflows or realizing cash flows through the sale of the assets.

·      How the performance of the portfolio is evaluated and reported to the Group's management.

·      the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed.

·      How managers of the business are compensated - e.g., whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

·      The frequency, volume, and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the Group's continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

§ Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, 'principal' is defined as the fair value of the financial asset on initial recognition. 'Interest' is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period and for other basic lending risks and costs (e.g., liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers:

·      Contingent events that would change the amount or timing of cash flows.

·      terms that may adjust the contractual coupon rate, including variable-rate features.

·      prepayment and extension features; and

·      terms that limit the Group's claim to cash flows from specified assets (e.g., non-recourse features).

§ Financial assets - Subsequent measurement and gains and losses

Financial assets at FVTPL	These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Financial assets at amortized cost	These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairments losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss derecognition is recognized in profit or loss.

§ Financial liabilities - Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.

§ Derecognition

Financial assets are derecognized when one of the following conditions is met:

-     The contractual right to receive the cash flows from the asset has expired.

-     The Group has substantially transferred all of the risks and rewards related to the asset, transferring its rights to receive the cash flows from the asset or assuming a contractual obligation to pass the cash flows received to one or more beneficiaries by virtue of an agreement that meets the requirements set out in IFRS 9 (pass through test)

-     The Group has not transferred nor substantially maintained all the risks and rewards related to the financial asset but has transferred control.

§ Impairment of financial assets

The Group recognizes loss allowances for expected credit losses ("ECL") on:

- Trade receivables related to fees and commission under the scope of IFRS 15 ("Revenues from Contracts with Customers")

- Financial assets measured at amortized cost or at FVOCI. The Group applies a simplified approach to measure some of these assets. For further information, please, refer to the section 3. Use of estimates and critical judgments- Impairment of financial assets.

Impairment losses on financial assets are recognized in the consolidated statement of profit or loss under "Impairment loss of other financial assets".

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

For trade receivables related to fees and commission, the Group measures loss allowances at an amount equal to 12-month ECLs.

For financial assets measured at amortized cost or at FVOCI, the Group measures loss allowances at an amount equal to 12-month ECLs. However, a lifetime ECLs is elected if the credit risk on the financial instruments has increased significantly since initial recognition.

Significant increase in credit risk and default

When determining whether the credit risk of a financial asset has increased significantly since initial recognition, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group's historical experience and informed credit assessment and including forward-looking information.

The Group considers a financial asset to be in default when:

§ There is a breach of financial covenants by the counterparty; or the information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without considering any collateral held by the Group);

or

§ The financial asset is more than 90 days past due unless the Group has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate

Measurement of ECLs

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e., the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive).

ECLs are discounted at the effective interest rate of the financial asset.

Credit-impaired financial assets

At each reporting date, the Group assesses whether financial assets are credit impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired includes the following observable data:

·      Significant financial difficulty of the borrower or issuer.

·      A breach of contract such as a default or being more than 90 days past due.

·      The restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise.

·      It is probable that the borrower will enter bankruptcy or another financial reorganization; or

·      The disappearance of an active market for a security because of financial difficulties.

Presentation of allowance for ECL

ECL for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

For financial instruments at FVOCI, the ECL is charged to consolidated profit or loss and is recognized in OCI.

Write-off

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities to comply with the Group's procedures for recovery of amounts due. Subsequent recoveries of an asset that was previously written off are recognized as a reversal of impairment in the consolidated statement of profit or loss when the recovery occurs.

Financial liabilities

Financial liabilities consisting of borrowings, trade payables and other obligations are recognized when the Group becomes a party to the related contractual clauses and are initially recognized at fair value, adjusted by any directly attributable transaction costs.

Financial liabilities and trade payables, with the exception of derivative financial instruments, are subsequently measured at amortized cost using the effective interest rate method

§ Derecognition of financial liabilities

The financial liabilities are derecognized when they are extinguished, namely when the contractual obligation has been met, cancelled, or prescribed. An exchange of debt instruments with substantially different contractual terms, must be accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the contractual terms of an existing financial liability must be accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.

Finance income and finance costs

The Group's finance income and finance costs include:

·      Interest income.

·      Interest expense.

·      Dividend income.

·      Net gain or loss on financial assets at FVTPL.

·      Foreign currency gain or loss on financial assets and financial liabilities; impairment losses (and reversals).

Interest income or expense is recognised under the effective interest method. Dividend income is recognised in profit or loss on the date on which the Group's right to receive payment is established.

The 'effective interest rate' is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to the gross carrying amount of the financial asset, or the amortised cost of the financial liability.

In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit‑impaired) or to the amortised cost of the liability. However, for financial assets that have become credit‑impaired after initial recognition, interest income is calculated by applying the effective interest rate to the amortised cost of the financial asset. If the asset is no longer credit‑impaired, then the calculation of interest income reverts to the gross basis.

Interest income is recognized using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash-flow discounted at the original effective interest rate of the instrument and continues unwinding the discount as interest income. Interest income on impaired loans is recognized using the original effective interest rate.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. In the consolidated statement of financial position, bank overdrafts are shown within borrowings in current liabilities.

The group recognize loss allowances for ECL on the cash closing balance. The group measures loss allowances at an amount equal to 12-month ECLs.

Current and deferred income tax

The tax expense for the year comprises current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized directly in equity. In this case, the tax is also recognized in equity.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date in the countries where the Group's subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. However, deferred income tax is not accounted for if it arises from initial recognition of goodwill or the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the reporting date and are expected to apply when the related deferred income tax asset is realized, or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries, associates, and joint ventures, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the near future.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis, or their tax assets and liabilities will be realised simultaneously.

Provisions

Provisions are only recognized when the Group has a present legal or constructive obligation arising from past events that will probably result in a future outflow of resources, and the amount has been reliably estimated. Provisions are not recognized for future operating losses. The amount provided represents the best estimate of the present value of the outlay required to meet the obligation. The interest rate used in determining the present value of the liability reflects current market rates and considers the specific risk of each liability.

Earnings per share

Basic Earnings Per Share:

Basic earnings per share are calculated by dividing the profit for the year attributable to equity holders of the Company, both from continuing and discontinued operations, by the weighted average number of ordinary shares in issue during the year excluding ordinary shares purchased by the Company and held as treasury shares.

Diluted Earnings Per Share:

Diluted earnings per share are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of ordinary shares of the Company outstanding during the year where, compared to basic earnings per share, the weighted average number of shares outstanding is modified to include the conversion of all dilutive potential shares, while the profit for the year is modified to include the effects of such conversion net of taxation. Diluted earnings per share are not calculated when there are losses as any dilutive effect would improve earnings per share.

Discontinued operations

A discontinued operation is a component of the Group's business that represents a separate major line of business or geographical area of operations that has been disposed of or is held for sale, or is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs at the earliest of disposal or when the operation meets the criteria to be classified as held for sale, if earlier. When an operation is classified as a discontinued operation, the comparative income statement is re-presented as if the operation had been discontinued from the start of the comparative period.

Business Combination

The acquisition method of accounting is used to account for all business combination, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises:

·      Fair values of the assets transferred.

·      Liabilities incurred to the former owners of the acquired business.

·      Equity interests issued by the group.

·      Fair value of any asset or liability resulting from a contingent consideration arrangement and.

·      Fair value of any pre-existing equity interest in the subsidiary.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.

Acquisition-related costs are expensed as incurred.

The excess of the:

·      Consideration transferred.

·      Amount of any non-controlling interest in the acquired entity, and

·      Acquisition date fair value of any previous equity interest in the acquired entity

Over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired, the difference is recognized directly on profit or loss as a bargain purchase.

Where the settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as the date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.

Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in the consolidated profit or loss.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquire is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in the consolidated profit or loss.

In case that initial treatment of business combination is not complete at the end of financial period consolidated, the group recognizes temporary amounts for accounts and during the measurement period not to exceed one year from the date of acquisition. The adjustment is performed retrospectively for completion of new information (Intangible assets, deferred taxes/provisions, and others).

Segment reporting

Operating segments are reported in a manner which is consistent with the internal reporting information provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the board of directors of the Company.

Revenue from contracts with customers

The company recognizes revenue based on the following five steps:

·      Determination of the contract with the client.

·      Determination of the contractual obligation to transport goods and/or services (known as performance obligations).

·      Determination of the price of the transaction.

·      Allocation of the transaction price to performance obligations determined based on the independent selling price for each good or service.

·      Recognition of income upon fulfilment of the relevant performance obligation.

The Group does not recognize any assets associated with the incremental costs of obtaining a contract with a customer that are expected to be not recovered. The majority of revenue is recognized over a period of time and the Group applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortisation period of the asset that would otherwise be recognized is one year or less.

Specifically, the Group mainly recognizes revenue from financial services and cables.

The following is a statement of the group revenues and how to define each revenue:

A.  Revenue from Entertainment Segment

Revenue from entertainment segment is predominantly generated by Orascom pyramids entertainment ("OPE") and Orascom sound and light "OSL" which includes Sound and light shows and entertainment activities and the pyramids site.

B.  Revenue from investment property Segment

Revenue from investment property is recognized according to the accrual basis and in the straight-line manner according to the rental contract duration.

C-1 Orascom pyramids entertainment ("OPE")

·      Rental income: Rental income is recognized according to the accrual basis and in the straight-line manner according to the essence of the lease agreement.

·      Sponsorship Revenue: Care income is recognized by the distribution of sponsorship consideration on a straight-line basis over the duration of the sponsorship contract.

·      Events revenue: Events revenue is recognized when performing event for customers and no revenue is recognized in case of uncertainty of refund for this revenue or associated costs.

C-2 Orascom sound and light "OSL

·      Revenues of sound and light shows: - It is represented in the revenues resulting from sound light shows presented within the archaeological pyramids area.

EBITDA Definition (Alternative performance measure)

·      Adjusted earnings before interest, tax, depreciation, and amortisation (adjusted EBITDA).

·      A management has presented the performance measure adjusted EBITDA because it monitors this performance measure at a consolidated level, and it believes that this measure is relevant to an understanding of the Group's financial performance. Adjusted EBITDA is calculated by adjusting profit from continuing operations to exclude the impact of taxation, net finance costs, depreciation, amortisation, impairment losses/reversals related to goodwill, intangible assets, and other financial assets.

·      Adjusted EBITDA is not a defined performance measure in IFRS Accounting Standards. The Group's definition of adjusted EBITDA may not be comparable with similarly titled performance measures and disclosures by other entities.

Repurchase and reissue of ordinary shares (treasury shares)

When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity and the resulting surplus or deficit on the transaction is presented within share premium.

3.     Restatements of comparative figures

Discounting effect of non-interest-bearing loan & related tax impact

In August 2022, the Company received a non-interest-bearing shareholder loan granted by Koryolink, in response to a request from one of its shareholders, for an amount of EUR 81.7 million (USD 86 million). In accordance with IFRS 9, the loan should have been measured at fair value on initial recognition by discounting the expected future cash flows using an appropriate market interest rate. The restatement corrects the initial recognition by applying a revised discount rate to better reflect market conditions at the time of the transaction.

Furthermore, it was identified that the difference between the face value and the fair value was not classified in accordance with IFRS 9. the difference between the face value and the fair value has been restated in 2022 to profit or loss as finance income, to better reflect the nature of the transaction and ensure consistency with IFRS 9 accounting standard. The adjustment had no impact on total equity and resulted in a reclassification from other reserves in equity to profit or loss. Subsequently, the unwinding of interest is recorded as finance expense in PL.

i.  Consolidated statement of financial position

	Impact Of Restatement
31 December 2022		Koryolink
(Thousands of USD)	As previously Reported	loan discounting effect	As restated
Total assets	250,263	--	250,263
Total liabilities	135,080	(10,029)	125,051
Borrowings (non-current) - Note (24)	93,187	(15,300)	77,887
Deferred Tax Liability - Note (19-1)	7,092	5,271	12,363
Others	34,801	--	34,801
Total equity	115,183	10,029	125,212
Reserves	(22,300)	(14,725)	(37,025)
Retained earnings	42,055	24,754	66,809
Others	95,428	--	95,428

ii.        Consolidated income statement

		Impact of Restatement
31 December 2022	As previously		Koryolink loan
(Thousands of USD)	Reported		discounting effect	As restated
Finance income - Note (12)	105		23,429	23,534
Financial assets at FVTPL - Note (12)	6,467		--	6,467
Finance expense- Note (12)	(944)		(1,069)	(2,013)
Net foreign currencies translation differences- Note (12)	17,111		7,665	24,776
Others	(4,504)		--	(4,504)
Income tax expenses - Note (14)	(4,726)		(5,271)	(9,997)
Profit for the year from continued operations	13,509		24,754	38,263

iii.       Consolidated cash flow statement

		Impact of Restatement
31 December 2022	As previously	Koryolink loan
(Thousands of USD)	Reported	discounting effect	As restated
(Loss) for the year before tax	18,235	30,025	48,260
Finance income- Note (12)	(105)	(23,429)	(23,534)
Finance expense- Note (12)	944	1,069	2,013
Others	(30,056)	(7,665)	(37,721)
Net cash used in operating activities	(10,982)	--	(10,982)
Others	5,742	--	5,742
Net (decrease) increase in cash and cash equivalents	(5,241)	--	(5,241)
Cash and cash equivalents at the beginning of the year	69,222	--	69,222
Changes in cumulative translation adjustments	2,903	--	2,903
Cash and cash equivalents at the end of the year	66,880	--	66,880

4.     Use of estimates and critical judgements

The preparation of the Consolidated Financial Statements requires that the directors apply accounting policies and methodologies that, in some circumstances, are based upon complex and subjective judgments and estimates that are based on historical experience and assumptions that are considered reasonable and realistic at the time, considering the relevant circumstances for example the assessment of control over subsidiaries and associates as well as the impairment of goodwill amount.  The application of such estimates and assumptions affects the amounts recorded in the consolidated statement of financial position, the consolidated income statement, the consolidated statement of comprehensive income and cash flows, as well as in the notes.  Actual results might differ from such estimates due to the uncertainty surrounding the assumptions and conditions upon which estimates are based. The accounting estimates that require the more subjective judgment of management in making assumptions or estimates regarding the effects of matters that are inherently uncertain and for which changes in conditions may significantly affect the results reported in these Consolidated Financial Statements are summarised below.

A.  Valuation of financial instruments - Note (18)

-     'Fair value' is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Group has access at that date. The fair value of a liability reflects its non‑performance risk.

-     A number of the Group's accounting policies and disclosures require the measurement of fair values, for both financial and non‑financial assets and liabilities

-     When one is available, the Group measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as 'active' if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis

-     If there is no quoted price in an active market, then the Group uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would consider in pricing a transaction.

-     If an asset or a liability measured at fair value has a bid price and an ask price, then the Group measures assets and long positions at a bid price and liabilities and short positions at an ask price.

-     The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price - i.e., the fair value of the consideration given or received. If the Group determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique for which any unobservable inputs are judged to be insignificant in relation to the measurement, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data, or the transaction is closed out.

B.  Fair value hierarchy

For fair value measurement recognized in the statement of financial position, IFRS 13 requires an entity to classify fair value measurements based on a fair value hierarchy, with the following levels, by reference to the significance of the inputs used in making measurement:

·    Level 1 inputs are unadjusted quoted prices in active markets for items identical to the asset being measured.

·    Level 2 inputs are inputs other than quoted prices in active markets included within Level 1 that are directly or indirectly observable.

·    Level 3 inputs are unobservable inputs that are usually determined based on management's assumptions. However, Level 3 inputs must reflect the assumptions that market participants would use when determining an appropriate price for the asset.

Fair value is a market-based measure, based on assumptions of prices and inputs considered from the perspective of a market participant that are current as of the measurement date, rather than an entity-specific measure.

Therefore, even when market assumptions are not readily available, the funds the Group invest into have their own assumptions that are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including the type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed.  

Accordingly, the degree of judgment exercised by various funds in determining fair value is greatest for investments categorized in Level 3.  In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement.

When determining fair value, the funds use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The valuation techniques used by the funds to determine fair value are consistent with the market or income approaches.  The market approach includes valuation techniques that use prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities, or a group of assets and liabilities. The funds generally use the market approach to value exchange-traded securities.

The funds value equity securities that are traded on a national securities exchange at their last reported sales price. The funds generally value equity securities traded in the over the counter (OTC) markets and listed securities for which no sale was reported on that date at their last reported bid price if held long, and last reported ask price if sold short. To the extent that equity securities are actively traded, and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. Equity securities traded on inactive markets or valued by reference to similar instruments are generally categorized in Level 2 of the fair value hierarchy.

The Group has not disclosed the fair values of financial instruments such as short-term trade receivables, trade payables, other receivables, and other payables, because their carrying amounts are a reasonable approximation of fair value.

C.  Impairment of non-current assets

Non-current assets are reviewed to determine whether there are any indications that the net carrying amount of these assets may not be recoverable and that they have suffered an impairment loss that needs to be recognized. In order to determine whether any such elements exist, it is necessary to make subjective measurements, based on information obtained within the Group, in the market and on past experience. When indicators are identified that an asset may have become impaired, the Group estimates the impairment loss using suitable valuation techniques. The identification of elements indicating that a potential impairment exists and estimates of the amount of the impairment, depend on factors that may vary in time, affecting management's assessments and estimates.

D.  Impairment of financial assets

The Group applies a simplified approach to measure expected credit losses of trade receivables related to fees and commission and financial assets measured at amortized cost and FVOCI. In a simplified approach expected credit losses are measured on the basis of a lifetime or 12-month expected loss allowance. The expected credit losses are based on historical information on actual credit losses on receivables. The model considers other information on the future economic conditions available at the time of the measurement.

E.  Discontinued operation

A discontinued operation is a component of the Group's business, the operations, and cash flows of which can be clearly distinguished from the rest of the Group and which:

-       Represents a separate major line of business or geographic area of operations.

-       Is part of a single coordinated plan to dispose of a separate major line of business or geographic area of operations; or

-       Is a subsidiary acquired exclusively with a view to resale.

Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held‑for‑sale. When an operation is classified as a discontinued operation, the comparative statement of profit or loss and OCI is re‑presented as if the operation had been discontinued from the start of the comparative year.

F.  Intangibles

Intangible assets constitute a significant part of the Group's total assets and the scheduled amortisation charges from a significant part of the annual operation expenses. The useful economic lives arrived at, on the basis of management's estimates and assumptions, have a major impact on the valuation of intangible assets.

At the end of each reporting period, the Group reviews the carrying amounts of its intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the recoverable amount of the intangible asset is estimated, in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, intangible assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

G.  Significant influence in North Korea

The Company's investment in North Korea relates primarily to the 60% voting rights in the local telecom operator Koryolink. The accounting treatment has been modified during 2015 through recognizing it as an investment in associates instead of subsidiaries, as the OIH (Egypt) Group management believes in the existence of significant influence instead of control.

In the light of international sanctions that the United States administration has decided to impose on the North Korean government and its various departments, the OIH (Egypt) Group's management closely monitors ongoing activities to make sure that the sanctions are not violated, and the two sides reached some understanding of the organizational and commercial frameworks focused on organizing the work of telecommunications market in North Korea.

H.  Depreciation of non-current assets

The cost of property and equipment is depreciated on a straight-line basis throughout the useful economic life of the relevant asset. The useful economic life is determined by management at the time the asset is acquired and is based upon historical experience for similar assets, market conditions, and forecasts regarding future events that could have an impact on useful life, including changes in technology. Therefore, the actual useful economic life may differ from the estimated useful life. The Group periodically evaluates sector and technology changes in order to update the remaining useful life. Such periodic updates could result in a change during the depreciation period, and therefore also in the depreciation in future periods.

I.   Taxes

Income taxes (both current income tax and deferred taxes) are determined in each country whereby the

Group operates in accordance with a prudent interpretation of the applicable tax regulations.

This process results in complex estimates in determining taxable and deductible income and taxable temporary differences between accounting and tax values. In particular, deferred tax assets are recognized when it is probable that there will be future taxable income against which the temporary differences can be utilised. The assessment of the recoverability of deferred tax assets, in relation to tax losses that can be used in future periods and deductible temporary differences, considers the estimated future taxable income on the basis of a prudent tax planning.

J.   Provisions and contingent liabilities

Management assesses events and circumstances indicating that the Group may have an obligation resulting in the ordinary course of business, Management applies its judgment in determining whether the recognition criteria have been met through assessing the probability of the obligation, making assumptions about timing and amounts of future cash outflows expected to settle the obligation.

5.     Financial Risk Management

Financial risk factors

The Group is exposed to a variety of financial risks: market risk (including foreign exchange risk and cash flow and fair value interest rate risk), credit risk and liquidity risk. In particular, the Group is exposed to risks from movements in exchange rates, interest rates and market prices. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's performance through ongoing operational and finance activities. The management has overall responsibility for the establishment and oversight of the Group's risk management framework.

i)      Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposure with acceptable parameters, while optimizing the returns.

The Group's strategy is aimed wherever possible at eliminating currency risk and managing derivatives in compliance with the policies and strategies defined within the Group, taking into consideration the different effects that these instruments could have on the profit or loss and the statement of financial position as a function of their classification and accounting treatment.

ii)     Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising when its business transactions are in currencies other than its functional currency. The main currencies to which the Group is exposed are the US dollar ("US$"), the Euro ("EUR"), DPRK Won ("KPW") , Brazilian Real ("BRL") , Lebanese Pound( LBP) and the Egyptian Pound ("EGP").

The Group is exposed to foreign currency risk arising in two separate ways:

a)    Foreign exchange operations risk

The Group entities predominantly execute their operating activities in their respective functional currencies. Some Group subsidiaries are, however, exposed to foreign currency risks in connection with scheduled payments in currencies that are not their functional currencies.

In general, this relates to foreign currency denominated supplier payables due to capital expenditures and receivables. The Group monitors the exposure to foreign currency risk on a group basis.

Management has set up a policy to require Group companies to manage their foreign exchange risk against their functional currency. In addition, the Group manages foreign currency risk by matching its principal cash outflows to the currency in which the principal cash inflows are denominated. This is generally achieved by obtaining loan financing in the relevant currency

At year end, major net assets / (net liabilities) foreign currencies positions presented in 'US Dollars' (US$), were as follows:

	December 31, 2022	December 31, 2022	December 31, 2022	December 31, 2022
	Assets in currency	(Liabilities) in currency	Net assets/(liabilities) in currency	Net assets/(liabilities)  in US$
US$	96,298	(4,223)	92,075	92,075
LBP	18,364,576	(16,490,847)	1,873,729	1,312
Euro	87,142	(60,273)	26,868	28,754
GBP	1	-	1	2
BRL	15,784	(9,279)	6,505	903

	December 31, 2023	December 31, 2023	December 31, 2023	December 31, 2023
	Assets in currency	(Liabilities) in currency	Net assets/(liabilities) in currency	Net assets/(liabilities)  in US$
US$	101,083	(2,780)	98,303	98,303
LBP	76,064,187	(42,202,771)	33,861,416	2,257
Euro	84,052	(65,713)	18,339	20,242
GBP	1	--	1	2
BRL	11,310	(1,781)	9,529	1,964

b)    As of December 31, 2023, if the functional currencies had increased/(decreased) by 10% against the US$, Euro, BRL, and GBP with all other variables held constant, the translation of foreign currency would have resulted in an increase / (decrease) of US$ $ (8,981) thousand and LBP 226 and Euro of (349) as well as BRL 7,565 of net profit (2022: US$ $8,370 thousand and Euro of 493 and LBP 119 as well as BRL 384 of net profit).

c)     Foreign exchange translation risk

Due to its international presence, the Group's Consolidated Financial Statements are exposed to foreign exchange fluctuations, as these affect the translation of subsidiaries' assets and liabilities denominated in foreign currencies to the US$ (the Group's presentational currency). The currencies concerned are mainly the Egyptian pound, and the Euro. This represents a translational risk rather than a financial risk given that these movements are posted directly to equity in the cumulative translation reserve

iii)    Price risk

The Group has no exposure to equity instruments of other entities that are publicly traded.

iv)   Cash flow and fair value interest rate risk

The Groups interest rate risk arises from borrowings. Borrowings received at variable interest rates expose the Group to cash flow interest rate risk. The Group has not entered into any derivative financial instruments to hedge its exposure to cash flow interest rate risk.

All borrowings from banks outstanding as of December 31, 2023, US$ 26,028 thousand and December 31, 2022 (US$ 15,865 thousand) note 23 are at a fixed interest rate, at a variable interest rate and interest rate free.

The Group analyses its interest rate exposure on a dynamic basis. The Group calculates the impact on the consolidated profit or loss of a defined interest rate shift. The same interest rate shift is used for all currencies.

The impact of a 1% interest rate shift would be a maximum increase/decrease in 2023 finance costs of US$ 0.93 million (2022: US$ 0.205 million).

v)    Fair value hierarchy

The following tables analyze financial instruments carried at fair value, by level, on 31 December 2023 and 2022:

	At 31 December 2023
(Millions of US$)	Level 1	Level 2	Level 3	Total
Financial instruments FVTPL	--	--	24,332	24,332
Total assets	--	--	24,332	24,332

	At 31 December 2022
(Millions of US$)	Level 1	Level 2	Level 3	Total
Financial instruments FVTPL	--	--	27,504	27,504
Total assets	--	--	27,504	27,504

The investment in Lighthouse Energy fund has been classified as Level 3. Investments classified within Level 3 have significant unobservable inputs, as they trade infrequently. Level 3 instruments include private equity securities. As observable prices are not available for these securities, there were various techniques applied to derive the fair value.

These techniques include comparable trading multiples, comparable transaction multiples and discounted cash flow analysis.

The following table provides quantitative information related to the significant unobservable inputs for Level 3 fair value measurements as at 31 December 2023 of the Lighthouse Energy fund

(Millions of US$)	Valuation Technique		Unobservable inputs	Range	Sensitivity
Unlisted private equity investments	Discounted cash flow		PPA prices Discount rates Merchant power prices CAPEX Interest rates	40 to 130 EUR/MWh 7.5%-13.5% 39 to 281 EUR/MWh Solar EUR 0.6 to 0.8 MN/MW Wind EUR 1.2 to 1.7 MN/MW 4.5% to 7 %	The estimated FV would increase, if the PPA prices were higher. The estimated FV would increase if the discount rates were lower. The estimated FV would increase if the merchant power prices were higher. The estimated FV would increase if the CAPEX prices were lower. The estimated FV would increase if the interest rates were lower.
Fair Value Level 3

The following table shows the fair values of financial assets and financial liabilities, including their levels in the fair value hierarchyaccording as of December 31, 2023, and December 31, 2022.

(In thousands of US$)	As at December 31, 2023,
Statement of financial position	At amortized Cost	Financial assets FVPL	Others		Level 1	Level 2	Level 3
Cash and cash equivalents	73,583	--	--		--	--	--
Financial assets at amortised cost	47,975						47,975
Trade receivables	5,208	--	--		--	--	--
Financial assets at FVTPL (Note.18)	--	24,332	--		--	--	24,332
Other assets	2,057	--	--		--	--	--
Borrowings	103,395	--	--		--	103,395	--
Tarde payable and other labilities	15,593	--	--		--	--	--

		(In thousands of US$)		As at December 31, 2022
	Statement of financial position		At amortized Cost			Financial assets FVPL		Others			Level 1		Level 2		Level 3
Cash and cash equivalents				66,880	--		--					--		--		--
Financial assets at amortised cost				90,471												90,471
Trade receivables				10,921	--		--					--		--		--
Financial assets at FVTPL (Note 18)				--	27,504		--					--		--		27,504
Other assets				2,918	--		--					--		--		--
Borrowings				79,872	--		--					--		79,872		--
Tarde payable and other labilities				19,973	--		--					--		--		--

vi)   Credit Risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group's receivables from customers and investments in debt securities. The carrying amounts of financial assets and contract assets represent the maximum credit exposure.

Impairment losses on financial assets and contract assets recognized in profit or loss were as follow: -

(In thousands of US$)	December 31, 2023	December 31, 2022
Impairment loss on trade receivables (note 20)	(3,963)	980
Impairment loss on other assets (note 21)	(52)	(104)
Impairment loss in other non-current assets (note 21)	--	(209)
Impairment loss of other financial assets (note 18)	(45,019)	--
Impairment loss in cash and cash equivalent (note 22)	(414)	(53)
Total	(49,448)	614

·    Cash and cash equivalents

The Group Companies have placed funds with the following financial institutions based on their credit rating: -

	Rating
Name of Bank	2023	2022
Arab Bank Zurich	BB	BB
CA Indosuez LU	A+	A
Credit Agricole Egypt	A+	A+
QNB Bank	B-	A+
FAB Bank	AA-	B-
Bank Masr	B-	B+
Banco General S. A	BBB-	BBB-
Audi Bank	CCC	CCC

The Group held cash and cash equivalents of US$ 73,583 million (2022: US$ 66,880 million) with banks which are rated BB and A+ based on Standard & Poor and are considered to have low credit risk. The cash balances are measured on 12-month expected credit losses.

The Group held cash of US$0.552 million in a Lebanese bank as at December 31, 2023 (December 31, 2022: US$1.774 million). Considering Lebanon's economic and financial crisis represented in (hyperinflation, currency devaluation, and significant restrictions on foreign currency transfers), the Group assessed the recoverability of these cash balances and accordingly, The Group decided to fully impair the total cash balance.

During August 2022, Koryolink decided, at the request of a shareholder in the company, to grant shareholders, without discrimination, a non-interest loan in accordance with the rules and procedures of local law, according to the percentage of its contribution to the company's capital. Accordingly, a cash amounting to US$ 86 million was transferred to the account of Orascom Investment Holding Company bank account in the Republic of Korea, knowing that all local regulations and laws regarding bank transfers and transactions will be applied to the mentioned amounts, and Orascom Investment Company will continue to comply with international sanctions resolutions in this regard.

·    Trade receivables

The Group's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate. Details of concentration of revenue are included in notes 6.

The risk management committee has established a credit policy under which each new customer is analysed individually for creditworthiness before the Group's standard payment and delivery terms and conditions are offered. The Group's review includes external ratings, if they are available, financial statements, credit agency information, industry information and in some cases bank references. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the risk management committee.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether they are a wholesale, retail or end-user customer, their geographic location, industry, trading history with the Group and existence of previous financial difficulties.

The Group is monitoring the economic environment in Brazil and is taking actions to limit its exposure to customers in countries experiencing particular economic volatility and discussion with government of Lebanon regarding releasing of the dues.

The Group does not require collateral in respect of trade and other receivables.

The Group does not have trade receivable and contract assets for which no loss allowance is recognized because of collateral.

As of December 31, 2023, and 2022, the exposure to credit risk for trade receivables risk and contract assets by Geographic region was as follows: -

(In thousands of US$)	Carrying amount December 31, 2023	Carrying amount December 31, 2022
Egypt	2,009	220
Brazil	685	903
Lebanon	2,514	9,798
Total	5,208	10,921

As of December 31, 2023, and 2022, the exposure to credit risk for trade receivables by type of counterparty was as follows: -

(In thousands of US$)	Carrying amount December 31, 2023	Carrying amount December 31, 2022
Entertainment	2,009	220
Rentals	685	903
GSM	2,514	9,798
Total	5,208	10,921

vii)  Liquidity Risk

The Group monitors and mitigates liquidity risk arising from the uncertainty of cash inflows and outflows by maintaining sufficient liquidity of cash balances. In general, liquidity risk is monitored at entity level whereby each subsidiary is responsible for managing and monitoring its cash flows and rolling liquidity reserve forecast in order to ensure that it has sufficient committed facilities to meet its liquidity needs.

Laws and regulations in certain countries, such as North Korea, in which the Group operates limit the conversion of current cash balances into foreign currency. Given the nature of the business, Group companies may have to make payments in foreign currencies (for example capital expenditures), the lack of individual entity foreign currency reserves means that these companies are largely dependent on the Company to make these payments on its behalf.

The table below analyses the Group's financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date. The amounts disclosed in the tables are the gross contractual, undiscounted cash flows including interest, charges, and other fees.

(In thousands of US$)	Carrying amount	Expected cash flows (*)	Less than 1 year	Between 1 and 5 years	More than 5 years
Liabilities
Liabilities to banks	13,857	28,569	2,601	17,576	8,392
Loan from KL	70,905	86,770	--	86,770	--
Trade payables and other liabilities	15,593	15,593	15,593	--	--
Finance lease liability	18,633	29,542	3,283	10,220	16,039
As of December 31, 2023	118,988	160,474	21,477	114,566	24,431

	Carrying amount	Expected cash flows (*)	Less than 1 year	Between 1 and 5 years	More than 5 years
Liabilities
Liabilities to banks	14,989	30,778	1,903	28,875	--
Loan from KL	64,007	86,770	--	86,770	--
Trade payables and other liabilities	19,784	19,784	19,784	--	--
Finance lease liability	876	1,474	251	1,223	--
As of December 31, 2022	99,656	138,806	21,938	116,868	--

* Expected cash flows are the gross contractual undiscounted cash flows including interest, charges, and other fees.

viii) Capital risk management

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern and to maintain an optimal capital structure to reduce the cost of capital.

ix)   Other risks

Governmental authorisations

Certain future Group activities, including the GSM operations in Lebanon, are dependent on obtaining appropriate government authorisations. Should these authorisations not be obtained or delayed, there could be an adverse impact on the future operations of the Group, such as a decrease in revenues or penalty payments due to contractual counterparties.

The telecommunications activity in Lebanon is in accordance with the agreement with the Ministry of Telecommunications for the management of Mobile Interim Company One (MIC1) which expired in

January 31, 2013, and has been renewed annually till December 2019, where the management received a letter from the ministry of telecommunications in Lebanon to terminate the contract and to proceed in handing over the management.

Political and economic risk in emerging countries

A significant amount of the Group's operations is conducted in Egypt, North Korea. The operations of the Group depend on the market economy of the countries in which the subsidiaries or associate operate. In particular, these markets are characterised by economies that are in various stages of development or are undergoing restructuring. Therefore, the operating results of the Group are affected by the current and future economic and political developments in these countries. In particular, the results of operations could be unfavourably affected by changes in the political or governmental structures or weaknesses in the local economies in the countries where it operates. These changes could also have an unfavourable impact on financial condition, performance, and business prospects.

Regulatory risk in emerging countries

Due to the nature of the legal and tax jurisdictions in the emerging countries where the Group operates, it is possible that laws and regulations could be amended. This could include factors such as the current tendency to withhold tax on the dividends of these subsidiaries, receiving excessive tax assessments, granting of relief to certain operations and practices relating to foreign currency exchange. These factors could have an unfavourable effect on the financial activities of the Group and on the ability to receive funds from the subsidiaries.

Revenue generated by the majority of the Group subsidiaries is expressed in local currency. The Group expects to receive most of this revenue from its subsidiaries and therefore it relies on their ability to be able to transfer funds. The regulations in the various countries, such as North Korea, where Koryolink operates could reduce the ability to pay interest and dividends and to repay loans, credit instruments and securities expressed in foreign currency through the transfer of currency. In addition, in some countries it could be difficult to convert large amounts of foreign currency due to central bank regulations. The central banks may amend regulations in the future and therefore the ability of the Company to receive funds from its subsidiaries may change.

Classes of financial instrument

The tables below present the Groups financial assets and liabilities by category.

	As of December 31, 2023			As of December 31, 2022
(In thousands of US$)	At amortised Cost	At FVTPL	Total	At amortised Cost	At FVTPL	Total
Assets
Cash and cash equivalents	73,583	--	73,583	66,880	--	66,880
Trade receivables	5,208	--	5,208	10,921	--	10,921
Financial assets at FVTPL	--	24,332	24,332	--	27,504	27,504
Other assets	2,057	--	2,057	2,918	--	2,918
Total	80,848	24,332	105,180	80,719	27,504	108,223

	As of December 31, 2023		As of December 31, 2022
(In thousands of US$)	At amortised Cost	Total	At amortised Cost	Total
Liabilities
Borrowings (a)	103,395	103,395	79,872	79,872
Trade payable & other liabilities	15,593	15,593	19,973	19,973
Total	118,988	118,988	99,845	99,845

 

^(a) 2022 figures are being restated to reflect the corrected comparative figures refer to note (3)

6.     Segment reporting

-       The chief operating decision-maker has been identified as the board of directors of the Company. The board of directors reviews the Group's internal reporting in order to assess its performance and allocate resources, mainly from a geographical perspective, of the mobile telecommunication business.

-       Pursuant to the decision to dispose of entities previously included in the Media and Technology segment, OIH management has changed its internal reporting as analysed by the chief operating decision-maker and revised the reportable operating segments as follows:

·      Cables: relating to the provision of direct broadband and high-speed connectivity to telecom operators, internet service providers and major corporations through submarine fibre optic cables. The segment results were represented as discontinued operations

·      GSM - Lebanon: Relating to management contract for the Lebanese mobile telecommunications operator, Alfa, which is owned by the Lebanese Government. The contract was terminated in December 2020. As a result, no revenue was recognized from this contract since 2022.

However, based on our assessment, we continue to consider OTL as part of ongoing operations, as there is currently no formal plan in place for the disposal of this segment.

·      Investment property: investment properties relate to real estate property the Group owns in Sao Paolo; Brazil presented as discontinued operations. (refer to note 29)

·      Entertainment: relates to the entertainment activities provided by OPE and S&L in the Pyramid's area in Egypt.

·      Other: relates mainly to the Group's equity investments, income and expenses related to the parent company of the Group (OIH) in addition the entertainment activities provided by OPE in the Pyramid's area in Egypt.

-       The Group reports on segment reporting, which are independently managed. The chief operating decision-maker assesses the performance of such operating segments based on:

A.    Total revenue: The total sales generated by the segment -- (6-A)

B.    Adjusted EBITDA: A measure of profitability that excludes certain expenses and taxes. It is calculated as profit before income tax expense, share of profit/(loss) of investment in associates and related impairment loss, foreign exchange gains /(loss), financial expense, financial income, gains/(losses) on disposal of non-current assets, impairment charges and depreciation and amortization. --(6-B)

C.    Segment capital expenditure: The total cost incurred during the period to acquire property, equipment, and intangible assets (excluding goodwill) for the segment. --(6-C)

6-A) Revenue by Segment

	For the year ended December 31, 2023				For the year ended December 31, 2022
(In thousands of US$)	Total segment revenue		Revenue from external customers	Adjusted EBITDA	Total segment revenue		Revenue from external customers	Adjusted EBITDA
Entertainments	5,754		5,754	1,860	5,982		5,982	1,937
Investment property	--		--	--	1,361		1,361	1,361
Other	--		--	(60,993)	--		--	(7,223)
Total	5,754		5,754	(59,133)	7,343		7,343	(3,925)

6-B) Adjusted EBITDA

Reconciliation of adjusted EBITDA to profit / (loss) before income tax

(In thousands of US$)		For the year ended December 31, 2023			For the year ended  December 31, 2022
Adjusted EBITDA		(59,133)			(3,925)
Depreciation and amortization		(1,627)			(579)
Finance income		4,241			23,534
Financial assets at FVTPL		(3,956)			6,467
Finance expense		(9,611)			(2,013)
Net foreign currencies translation differences		19,783			24,776
(loss) / Profit before income tax		(50,303)			48,260
December 31,2023		Entertainments		Others		Total
Adjusted EBITDA		1,860		(60,993)		(59,133)
Depreciation and amortization		(1,563)		(64)		(1,627)
Finance income		20		4,221		4,241
Financial assets at FVTPL		--		(3,956)		(3,956)
Finance expense		(4,300)		(5,311)		(9,611)
Net foreign currencies translation differences		120		19,663		19,783
(loss) before income tax		(3,863)		(46,440)		(50,303)
December 31,2022		Entertainments		Others		Total
Adjusted EBITDA		2,416		(6,341)		(3,925)
Depreciation and amortization		(275)		(304)		(579)
Finance income		--		23,534		23,534
Financial assets at FVTPL		--		6,467		6,467
Finance expense		(328)		(1,685)		(2,013)
Net foreign currencies translation differences		79		24,697		24,776
Profit before income tax		1,892		46,368		48,260

6-C) Segment capital expenditure

§ Assets per segment 

The following table illustrates assets for each reportable segment as they are regularly provided to the board of directors.

	December 31, 2023			December 31, 2022
(In thousands of US$)	Property and equipment	Equity investments	Total	Property and equipment	Equity investments	Total
Entertainment	30,325	--	30,325	17,133	--	17,133
Other	1,233	19,858	21,091	1,467	24,803	26,270
Total	31,558	19,858	51,416	18,600	24,803	43,403

§ Capital expenditure

The table below illustrates the capital expenditure incurred by each segment for the year ended December 31,2023 and the year ended December 31,2022:

(In thousands of US$)	For the year ended December 31, 2023	For the year ended December 31, 2022
Entertainment	17,162	12,970
Other	1,222	146
Total	18,384	13,116

 

7.     Revenues

Disaggregation of revenue from contracts with customers.

The table below illustrates the Geographical, Service line and Timing of revenue incurred by each segment for the year ended December 31, 2023, and December 31, 2022:

	(In thousands of US$)			For the year ended December 31, 2023					For the year ended December 31, 2022
	Entertainment			5,754					5,085
	Total			5,754					5,085
		(In thousands of US$)		For the year ended December 31, 2023				For the year ended December 31, 2022
		Primary geographical markets
		Egypt		5,754				5,085
		Total		5,754				5,085
		Major service lines
		Entertainment		5,754				5,085
		Total		5,754				5,085
		Timing of revenue recognition
		Services transferred over a period		5,754				5,085
		Total		5,754				5,085

 

8.     Purchases and services

(In thousands of US$)	For the year ended December 31, 2023	For the year ended  December 31, 2022
Rental of local network, technical sites & other leases	59	43
Maintenance costs	155	133
Consulting and professional services	2,291	4,332
Purchases of goods and changes in inventories	59	26
Advertising and promotional services	141	575
Utilities and energy cost	32	52
Site expense	959	197
IT supplies and expense	69	46
Insurance expenses	23	29
Airfare expenses	79	23
Accommodation, meals and per diem	57	42
Bank and post office charges	228	183
Other service expenses	609	763
Total	4,761	6,444

9.     Personnel Costs

(In thousands of US$)	For the year ended December 31, 2023	For the year ended  December 31, 2022
Wages and Salaries	8,048	4,860
Contractual bonuses	474	433
Other benefits	91	67
Pension Costs - defined contribution plan	163	10
Social Security	256	303
Subscription and membership dues	8	5
Other personnel Costs	41	--
Total	9,081	5,678

 

10.  Other expenses

(In thousands of US$)	For the year ended December 31, 2023	For the year ended December 31, 2022
Real estate taxes	--	19
Other taxes	--	111
Other operating expenses	225	497
Total	225	627

 

11.  Depreciation and amortisation

(In thousands of US$)	For the year ended December 31,2023	For the year ended December 31,2022
Depreciation of tangible assets
Buildings	453	129
Right of use	871	--
Commercial and other tangible assets	303	236
Depreciation of investment property
Buildings	--	214
Total	1,627	579

 

12.  Net financing income

(In thousands of US$)	For the year ended December 31,2023	For the year ended December 31,2022
Interest income	4,241	105
Fair value adjustment of financial liabilities - Koryolink (a)		23,429
Financial assets at FVTPL- Net change in fair value	--	6,467
Finance income	4,241	30,001
Financial assets at FVTPL- Net change in fair value *	(3,956)	--
Interest expense on borrowings (a)	(9,611)	(2,013)
Finance expense	(13,567)	(2,013)
Net foreign currencies translation differences (a)	19,783	24,776
Net foreign currencies translation differences	19,783	24,776
Net financing (costs)	10,457	52,764

(*) Amount representing the value of the Loss resulted from the F.V adjustment of investment fund -- refer to note (18)

^(a) 2022 figures are being restated to reflect the corrected comparative figures refer to note (3)

13.  Equity accounted investees

Investment in equity accounted investees primarily relate to the investment in telecommunication operator in North Korea (Cheo Technology Koryolink)

The following table provides a breakdown of equity accounted investees:

Company	Country	Ownership	2023	%	2022
Cheo Technology-Koryolink	DPRK	60%	550,528	60%	537,370
Accumulated impairment loss (*)			(530,670)		(512,567)
Total			19,858		24,803

(*) The group does not recognize any profits from the company due to the sanctions and the probability of collecting such profits through dividends process. Accordingly, the group impairs any profit recognized from Koryolink and maintain the original investment which represent management's best estimate of the recoverable value.

The following table presents the movement on the investment of Koryolink during the year:

(In thousands of US$)	2023	2022
Opening balance	24,803	39,185
Share of profit of equity accounted investee before impairment	18,103	20,660
Gain from dilution	--	5,453
Impairment loss	(18,103)	(26,113)
Foreign currency translation differences	(4,945)	(14,382)
Ending balance	19,858	24,803

Koryolink:

The tables below set forth-summary financial information of the associate company.

§ Summarised statement of financial position

(In thousands of US$)	2023		2022
Assets	392,033		370,044
Liabilities	(34,512)		(37,345)
Net assets	357,521		332,699
§ Summarised statement of income statement

(In thousands of US$)		For the year ended December 31, 2023		For the year ended December 31, 2022
Revenues		80,122		76,812
Total expense		(49,950)		(46,204)
Profit for the period after tax		30,172		30,608
Share of profit of the associate company		18,103	20,660

The Group's investments in North Korea related primarily to the 75% voting rights in the local telecom operator Koryolink.

The accounting treatment has been modified during period ended September 30, 2015, though recognizing it as an investment in associates instead of investment in subsidiaries, as the Group management believes that the existence of significant influence instead of control due to the increase of the restrictions, financial and operating difficulties facing Koryolink due to the international sanction imposed by the international community including the United States of America, the European Union, and the United Nations."

These sanctions have the effect of restricting financial transactions and the import and export of goods and services, including goods and services required to operate, maintain, and develop mobile networks. In addition, the restrictions implemented affect the ability of its associate to transfer profits to the parent (return of funds to its native).

On September 11, 2017, the United Nations Security Council issued a resolution obliging member state of the United Nations to pass laws prohibiting joint ventures and existing partnerships with the North Korean Republic unless approval is obtained to continue such joint ventures.

At the present, the Group's management submitted an official request through Ministry of the foreign affairs of the Government of the Arab Republic of Egypt in order to be excluded from adhering to the said resolution.

On December 26, 2018, the request to the Security Council Committee established to follow up the implementation of sanctions on North Korea was approved, with the exception of Koryolink, to ban foreign investment in North Korea and to allow Orascom Investment Holding to continue its activities in North Korea. And consider the company as a telecommunications infrastructure company offering a public service.

During the third quarter of 2022, Koryolink announced an increase in the company's capital by about 20 million euros, and KPTC, the shareholder of Koryolink by 25% at that time, subscribed to the entire shares of the capital increase, with Orascom Investment Holding refraining from subscribing to it. This increase led to a Dilution of Orascom Investment Holding's shareholding in Koryolink from 75% to 60%.

	Share capital (Before increase) Euro	%	Share capital (After increase) Euro*	%
Orascom investment holding	60,000,000	75%	60,000,000	60%
Post office Co.at North Korea	20,000,000	25%	40,000,000	40%
Total	80,000,000	100%	100,000,000	100%

*The functional currency for Koryolink is Euro.

14.  Income tax expenses

(In thousands of US$)	Note	For the year ended December 31, 2023	For the year ended December 31, 2022
Current income tax		22	(507)
Deferred tax (a)	(19-1)	1,545	10,504
Total income tax expenses		1,567	9,997

^(a) 2022 figures are being restated to reflect the corrected comparative figures refer to note (3)

15.  Property plant and equipment

(In thousands of US$)	Land & Buildings		Commercial & other tangible assets	Right Of Use		Assets under construction			Total
Cost	8,174		1,907	--		9,577			19,658
Accumulated depreciation & Impairment	(535)		(523)	--		--			(1,058)
Net book value as of January 1, 2023	7,639		1,384	--		9,577			18,600
Additions	788		487	11,388		5,721			18,384
Net disposals	--		--	--		--			--
Depreciation	(453)		(303)	(871)		--			(1,627)
Foreign currency translation differences	(1,528)		(268)	(39)		(1,964)			(3,799)
Net book value as of December 31,2023	6,446		1,300	10,478		13,334			31,558
Cost	7,334		2,014	11,349		13,334			34,031
Accumulated depreciation and impairment	(888)		(714)	(871)		--			(2,473)
(In thousands of US$)	Land & Buildings	Commercial & other tangible assets			Right Of Use		Assets under construction	Total
					--
Cost	3,354	1,445			--		10,286	15,085
Accumulated depreciation and impairment	(688)	(628)			--		--	(1,316)
Net book value as of January 1, 2022	2,666	817			--		10,286	13,769
Additions	7,806	1,354			--		3,956	13,116
Depreciation	(129)	(236)			--		--	(365)
Foreign currency translation differences	(2,704)	(551)			--		(4,665)	(7,920)
Net book value as of December 31,2022	7,639	1,384			--		9,577	18,600
Cost	8,174	1,907			--		9,577	19,658
Accumulated depreciation and impairment	(535)	(523)			--		--	(1,058)

 

16.  Intangible assets

(In thousands of US$)	License	Goodwill	Total
Cost	892	327	1,219
Accumulated amortization and impairment	(892)	(327)	(1,219)
Net book value as of January 1, 2023	--	--	--
Additions	--	--	--
Amortization	--	--	--
Foreign currency translation differences - Cost	(178)	(65)	(243)
Foreign currency translation differences - Accumulated	178	65	243
Net book value as of December 31, 2023	--	--	--
Cost	714	262	976
Accumulated amortization and impairment	(714)	(262)	(976)

(In thousands of US$)	License	Goodwill	Total
Cost	1,408	506	1,914
Accumulated amortization and impairment	(1,408)	(506)	(1,914)
Net book value as of January 1, 2022	--	--	--
Additions	--	--	--
Amortization	--	--	--
Foreign currency translation differences - Cost	(516)	(179)	(695)
Foreign currency translation differences - Accumulated	516	179	695
Net book value as of December 31, 2022	--	--	--
Cost	892	327	1,219
Accumulated amortization and impairment	(892)	(327)	(1,219)

The following table provides an analysis of goodwill:

		2023		2022
(In thousands of US$)		Other	Total	Other	Total
Opening balance
Cost		327	327	506	506
Accumulated impairment		(327)	(327)	(506)	(506)
Net book value of the opening balance		--	--	--	--
Foreign currency translation differences - Cost		(65)	(65)	(179)	(179)
Foreign currency translation differences - Accumulated		65	65	179	179
Net book value of the ending balance		--	--	--	--
Cost		262	262	327	327
Accumulated impairment		(262)	(262)	(327)	(327)

 

17.  Investment property

(In thousands of US$)	2023	2022
Cost	8,347	13,187
Accumulated depreciation and impairment	(181)	(22)
Net book value of opening balance	8,166	13,165
Addition	488	--
Disposal	(6,922)	--
Depreciation	(101)	(214)
Foreign currency translation differences	(1,631)	(4,785)
Net book value of ending balance	--	8,166
Cost	--	8,347
Accumulated amortization and impairment	--	(181)

-     According to the contract concluded with Bluestone Investment Company (the seller) regarding the sale of the seven floors in Brazil during 2015 to Orascom Investment Holding, which states a guarantee of obtaining a fixed annual return at the end of the fourth year of the contract, in the event of the company inability to rent the seven mentioned floors and achieve the return mentioned in the contract the company has the right for the return difference as per the contract, and the Company addressed the Bluestone Investment Company in order to obtain the return difference in accordance with the concluded contract.

-     In October 2021, the company received a letter from Bluestone Investment Company stating that Bluestone agreed to give the company 1.5 floor representative "6 offices" in the same building which correspondent to a final settlement on the guaranteed revenue mentioned in the original contract.

-     The fair value of investment property was determined by external, independent property valuers, having appropriate recognized professional qualifications and recent experience in the location and category of the property being valued.

-     The group acquired in December 2021 a real estate investment valued at approximately 13 million US dollars. Of this amount, 12 million US dollars were recognized as a gain, in financial year ending December 31, 2021, while 1 million US dollars represented transaction cost corresponds to the FV of the 1.5 floors received from the guaranteed revenue from Bluestone.

-     During May 2023, the group announced about an acquisition offer received regarding its owned assets in Brazil of which the Board of Directors approved to hire an independent financial consultant, to report a study related to the equivalent price of the assets and that in accordance with the requirements of article (43) from rules for listing and delisting securities on the stock exchange.

During September 2023 and for securing the selling transaction, the company established two subsidiaries in Brazil and the ownership of the investment property has been transferred to the two companies with the amount totaling to 87.5 million BRL equivalent to around 539 million Egyptian pounds (after deduction of due taxes).

The new entities was established due to the fact that, The initial disposal strategy for the building floors required all tenants to waive their pre-emptive rights, a condition that proved impractical to secure in the current circumstances so we implemented an alternative structural solution to Establishment the above mentioned New Entities and transfer The ownership of the targeted floors to both of them Subsequently, we sold 100% of the shares in these two entities to a third-party buyer.

-     In 2023, the Group disposed the remaining 1.5 floors equivalent to 6 offices to a third party for a value of BRL 87,5 Million equivalent in US$ 17,6 Million, as per the sale agreement executed. And Management considers this disposal price as an approximation of fair value.

(In thousands of US$)	2023	2022
less than one year (note 27-2)	853	89
One to two years	--	925
Two to three years	--	1,038
Four to five years	--	674
More than 5 years	--	562

Investment property revenue:

 

 

18.  Other Financial Assets

	As of December 31, 2023			As of December 31, 2022
(In thousands of US$)	Non-Current	Current	Total	Non-Current	Current	Total
Financial receivables at amortized cost (18.1.1)	--	--	--	--	--	--
Restricted cash at amortized cost (18.1.2)	47,975	--	47,975	90,471	--	90,471
Financial assets at FVTPL (18.2)	24,332	--	24,332	27,504	--	27,504
Total Other financial assets	72,307	--	72,307	117,975	--	117,975

18.1 Financial receivables at Amortized Cost
	18.1.1) Financial Receivables
	(In thousands of US$)		2023				2022
	Expected credit loss percentage		100%				100%
	Financial receivables		9,163				9,163
	Expected credit loss during the year (*)		(9,163)				(9,163)

(*) During September 2019 OIH sold the entire shares owned by the Group in Riza Capital to an external party for a consideration of US$ 13,323 thousand as well as interest with amount US$423 thousand. The transaction was structured such that the purchaser pays the consideration in six equal instalments starting from the date of sale and ending in February 2022.

However, up to October 2022, the purchaser only paid the first two instalments dated September 2019 and February 2020 with a total amount of US$ 4,442 thousand and US$107 thousand of the third instalment, which was due in August 2020. No change took place till December 2023.Therefore, after considering all facts and circumstances, the Group estimated an ECL of US$ 9,163 on this asset as the following: -

		2023	2022
(In thousands of US$)
Opening Balance		9,163	9,163
Total		9,163	9,163

18.1.2) Restricted Cash

	As of December 31, 2023			As of December 31, 2022
(In thousands of US$)	Non-current	Current	Total	Non-current	Current	Total
Pledged deposits	10	--	10	10	--	10
Cash on banks in North Korea	95,911	--	95,911	92,541	--	92,541
Expected credit loss*	(47,946)	--	(47,946)	(2,080)	--	(2,080)
Total	47,975	--	47,975	90,471	--	90,471

During August 2022, Koryolink decided, at the request of a shareholder in the company, to grant shareholders, without discrimination, a non-interest loan in accordance with the rules and procedures of local law, according to the percentage of its contribution to the company's capital. The loan, amounting to approximately 81.7 million euros (equivalent to U$D 86), was transferred to the account of Orascom Investment Holding Company in the Republic of Korea, knowing that all local regulations and laws regarding bank transfers and transactions will be applied to the mentioned amounts, and Orascom Investment Company will continue to comply with international sanctions resolutions in this regard.

It is worth noting that the loan is interest-free and for a period of 5 years, which can be automatically increased for another period or periods of 3 years each, and it will be agreed between the company and Koryolink on the method of repayment, whether in cash or by settlement with other balances between the two companies

Due to the sanctions imposed on north Korea, the group is not able to repatriate the cash balance out of the country.

* Expected credit loss of other financial assets is represented in the following:

(In thousands of US$)	2023	2022
Expected loss ratio	50%	36%
Cash at bank in North Korea- non-current	95,911	92,541
Expected credit loss during the year *	(47,946)	(2,080)
Net cash at bank in North Korea - non-current	47,965	90,461

(In thousands of US$)	2023	2022
Opening Balance	2,080	3,190
Charged during the year	45,019	79
Foreign currency translation differences	847	(1,189)
Total	47,946	2,080

During 2017, CHEO (Koryolink) the Company's subsidiary located at North Korea declared and distributed dividends amounting to EUR 46.7 million. The Company's share amounted to EUR 35 million, out of which EUR 29.2 million were directly transferred to the Company from North Korea to its bank account in Egypt. Therefore, we will assume a 50% likelihood that it will also be able to transfer the existing bank balance of EUR 81,7 million (cash balance in NK as of Dec 21).

* In 2023, OIH S.A.E. management performed ECL assessment on the cash received from Koryolink Loan and considered that there is 50% likelihood of recoverability due to the unpredictability of future developments, including potential changes in international sanctions, regulatory restrictions. Therefore, 50% ECL was recorded. As at 31 December 2023, ECL of USD 45 million was booked in profit or loss.

18.2 Financial assets at Fair Value Through profit or Loss (Lighthouse energy SCSP)

(In thousands of US$)	2023	2022
Investment in investment funds	24,332	27,504
Total	24,332	27,504

During 2022 the Company invested in investment fund which operates in renewable energy industry. The share of the company in the fair value of the investment amounted to EUR 25.7 million equivalent to US$ 27.5 million. This investment classified in the fund as of December 31,2022 as financial investment at fair value through profit or loss and its fair value is classified based on level 3 investments (levels of fair value revaluation) as there are inputs used that are not observed for assets and liabilities. There are no transfers between the levels for the year from January 1, 2023, to December 31, 2023, the investments in the fund assessed from the third level using unadjusted inputs provided by the fund management based on the team's internal assumptions for the investment's business plan. As the result of management evaluation represents the median valuation between minimum and maximum valuation ranges.

The following table shows fair value adjustment for the investment classified within the third level during the year.

(In thousands of US$)	2023	2022
Cost of the purchase	27,504	21,037
Effect of the Fair value (note 12)	(3,956)	6,467
Currency translation reserve	784	--
Total	24,332	27,504

19.  Deferred taxes

18.1 Recognized deferred tax assets and liabilities

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred income tax assets and liabilities relate to income taxes due to the same tax authority.

(In thousands of US$)		2023	2022
Deferred tax liabilities (a)		(9,396)	(12,363)
Net position of the deferred tax (liabilities)		(9,396)	(12,363)

^(a) 2022 figures are being restated to reflect the corrected comparative figures refer to note (3)

The movement in deferred tax liabilities is as follows:

(In thousands of US$)		2023	2022
As of January 1,		(12,363)	(4,812)
(Charged) to the income statement (Note 14)		1,545	(10,504)
Foreign currency translation differences		1,422	2,953
As of December 31,		(9,396)	(12,363)

A breakdown of the movement in deferred tax liabilities during 2023 and 2022, is provided in the tables below:

Deferred tax liabilities	Depreciation &amortization	Unremitted earnings	Forex	Other	Total
(In thousands of US$)
As of January 1, 2023	(532)	(588)	(8,486)	(2,757)	(12,363)
(Charged) to the statement of profit or loss	(169)	297	(324)	1,741	1,545
Foreign currency translation differences	107	113	653	549	1,422
As of December 31, 2023	(594)	(178)	(8,157)	(467)	(9,396)

Deferred tax liabilities	Depreciation & Amortization	Unremitted earnings	Forex	Other	Total
(In thousands of US$)
As of January 1, 2022	(241)	(1,207)	(434)	(2,930)	(4,812)
(Charged) to the statement of profit or loss	(489)	227	(9,065)	(1,177)	(10,504)
Foreign currency translation differences	198	392	1,013	1,350	2,953
As of December 31, 2022	(532)	(588)	(8,486)	(2,757)	(12,363)

No deferred tax liability has been recognized in respect of temporary differences associated with investments in subsidiaries, branches, and associates, where the Group is in a position to control the timing of the reversal of the temporary differences, and it is probable that such differences will not reverse in the foreseeable future.

Should additional information arise in future periods resulting in differences between the tax base and accounting base of recorded assets and liabilities in the financial statements as of December 31, 2023, Management will reassess its estimate in a way that might result in the recognition of deferred taxes related to those assets and liabilities.

18.2 Unrecognized deferred tax assets

 The following schedule illustrates the unrecognized deferred tax assets for the group:

(In thousands of US$)	2023	2022
Carried forward losses	--	12,363
Total	--	12,363

Carried forward losses should be utilized within a period of 5-6 years at maximum. The management of the Group followed a prudent approach and did not recognize a deferred tax asset for unused tax losses as of December 31, 2023, as the management does not expect sufficient taxable results will be generated in the respective countries. The ability of the Group to settle these tax losses against future taxable profits is not impacted by not recording an asset.

Generally, the Group does not recognize deferred tax assets for temporary differences related to accruals for provisions, due to uncertainties in connection with the tax treatment of such expenses, as they might be challenged by local tax authorities.

20.  Trade receivables

(In thousands of US$)		2023	2022
Receivable due from government		14,382	19,083
Receivables due from telephone operators *		12,364	15,169
Other trade receivables		1,500	1,059
Allowance for doubtful receivables (ECL)		(23,038)	(24,390)
Total		5,208	10,921

* This balance related to Koryolink mainly this balance come from demerge processes dated 2010, and the whole balance is fully impaired.

The following table shows the movement in the allowance for doubtful receivables:

(In thousands of US$)	2023	2022
Opening balance	(24,390)	(35,465)
Addition (allowances recognized as an expense)	(3,963)	--
No Longer required	--	980
Foreign currency translation differences	5,315	10,095
Ending balance	(23,038)	(24,390)

The following table shows the ageing analysis of trade receivables as of December 31, 2023, and 2022, net of the relevant allowance for doubtful receivables:

	2023		2022
(In thousands of US$)	Gross	Allowance	Gross	Allowance
Not past due	1,126	--	232	--
Past due 0-30 days	44	--	--	--
Past due 31-120 days	15	--	--	--
Past due 121 - 150 days	148	--	--	--
Past due more than 150 days	26,913	(23,038)	35,079	(24,390)
Trade receivables	28,246	(23,038)	35,311	(24,390)

The maximum exposure to credit risk at the reporting date is the carrying value of the receivable. The Group does not hold any collateral as security and the increase mainly relating to the reversal of impairment related receivables Orascom telecom Lebanon.

21.  Other assets

(In thousands of US$)	As of December 31, 2023			As of December 31, 2022
	Non-current	Current	Total	Non-current	Current	Total
Prepaid expenses	--	239	239	--	201	201
Advances to suppliers	--	800	800	--	166	166
Receivables due from tax authority	--	67	67	--	93	93
Assets from current tax	--	40	40	--	45	45
Other non-trade assets	--	1,175	1,175	161	2,678	2,839
Allowance for doubtful of current assets	--	(264)	(264)	(161)	(265)	(426)
Total	--	2,057	2,057	--	2,918	2,918

(In thousands of US$)	As of December 31, 2023			As of December 31, 2022
	Non-current	Current	Total	Non-current	Current	Total
Opening Balance	161	265	426	--	390	390
Made during the year	--	52	52	209	24	233
Used during the year	(161)	--	(161)	--	--	--
Foreign currency translation differences	--	(53)	(53)	(48)	(149)	(197)
Total	--	264	264	161	265	426

 

22.  Cash and cash equivalents

(In thousands of US$)	2023	2022
Bank accounts and gross deposits	75,279	68,635
Cash on hand	78	19
	75,357	68,654
Impairment cash and equivalents	(1,774)	(1,774)
Total	73,583	66,880

The Group held cash of US$0.552 million in a Lebanese bank as at December 31, 2023 (December 31, 2022: US$1.774 million). Considering Lebanon's economic and financial crisis represented in (hyperinflation, currency devaluation, and significant restrictions on foreign currency transfers), the Group assessed the recoverability of these cash balances and accordingly, The Group decided to fully impair the total cash balance.

(In thousands of US$)	2023	2022
Opening Balance	(1,774)	(1,827)
Formed	--	--
Reversed	--	53
Total	(1,774)	(1,774)

 

23.  Equity attributable to the owners of the Company

i)   Share capital

On November 29, 2011, the Company was incorporated with an authorised and issued share capital amounting to EGP 2,203,190,060 (equivalent to US$ 366,148 thousand at date of transactions) distributed over 5,245,690,620 shares, each with a nominal value of EGP 0.42.

According to the decision of the Extraordinary General Assembly of Orascom Investment Holding dated October 19, 2020, and the approval of the General Investment Authority dated November 17, 2020, on demerging the company (refer to note no. 33), Orascom Investment Holding's share of the issued capital was EGP 577,025,968 (equivalent to US$ 95,890 thousand) divided on 5,245,690,620 shares with a nominal value of EGP 0.11 per share.

The following table lists the largest shareholders in the Company in addition to the other remaining shares as of December 31, 2023:

Shareholder	Ordinary shares	% Of ordinary shares having voting right
OTMTA (parent company)	2,709,989,320	51.661%
OTMTI	33.485.965	0,638 %
Other	2,502,215,335	47.70%
Total available common shares	5.245.690.620	100%

ii)  Translation reserve

Translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. The translation reserve is a component of equity that reflects the cumulative exchange differences arising from the translation of foreign currency assets and liabilities of our foreign operations. These differences are recognized in the translation reserve at the balance sheet date using the closing exchange rate. The translation reserve is not recognized in profit or loss but is presented as a separate component of equity. Any exchange differences arising on the disposal of a foreign operation are recognized in profit or loss.

iii) Legal reserve

According to the company's articles of association, 5% of the net profits are set aside to form the legal reserve, and these amounts may be stopped when the balance of this reserve reaches 50% of the value of the issued capital, and the retainer process is resumed when the reserve balance falls below this limit, and this reserve can be used to cover losses and can also be used to increase the company's capital, subject to the approval of the ordinary general assembly of the company's shareholders. Non-distributable earnings

Retained earnings include an amount of US$ 1.26 million as of December 31,2023 compared to US$ 1,58 million as of December 31,2022, which is not available for distribution representing a legal and special reserves at the subsidiaries level.

24.  Borrowings

	2023			2022
(In thousands of US$)	Current	Non-current	Total	Current	Non-current	Total
Loan from North Korea (a)	--	70,905	70,905	--	64,007	64,007
Bank loans	796	13,061	13,857	1,903	13,086	14,989
Finance lease liability	2,590	16,043	18,633	83	793	876
Total	3,386	100,009	103,395	1,986	77,886	79,872

^(a) 2022 figures are being restated to reflect the corrected comparative figures refer to note (3)

The following table shows the ageing of borrowings:

(In thousands of US$)	Due within one year	Due between one and five years	Due beyond five years	Total
Loan from North Korea	--	70,905	--	70,905
Bank loans	796	6,934	6,127	13,857
Finance lease liability	2,590	15,835	208	18,633
As of December 31, 2023	3,386	93,674	6,335	103,395
(In thousands of US$)	Due within one year	Due between one and five years	Due beyond five years	Total
Loan from North Korea	--	--	64,007	64,007
Bank loans	1,903	6,959	6,127	14,989
Finance lease liability	83	585	208	876
As of December 31, 2022	1,986	7,544	70,342	79,872

The following table provides the breakdown of total borrowings by currency of issue:

(In thousands of US$)		Euro	EGP	Total
	As of December 31, 2023	70,905	32,490	103,395
As of December 31, 2022		64,007	15,865	79,872

The following table illustrates the movements in the borrowings during the year:

(In thousands of US$)	2023	2022
Balance at the beginning of the year	79,872	10,190
of which:
Current borrowings	1,986	17
Non-current borrowings	77,886	10,173
Payments of loans	(91)	(15)
Proceeds from loans	906	73,366
cash from sale & lease back	4,854	--
Proceeds Finance lease liabilities	11,819	1,130
Interest Expenses	9,611	336
Interest Paid	(3,238)	(197)
Interest capitalized	954	1,587
Currency transaltion differences	(1,293)	(6,525)
Balance at the end of the year	103,395	79,872
of which:
Current borrowings	3,386	1,986
Non-current borrowings	100,009	77,886

i)   Bank Loans

The following table shows a breakdown of bank loans by country:

Description	Company	31 Dec 2023 In US$	31 Dec 2022 In US$	Original Currency	Nominal Value	Maturity	Nominal interest rate	Security
North Korea	OIH	70,905	64,007	Euro	81,707	Dec -27	-	Unsecured
Egyptian Banks	OPE	13,857	15,865	EGP	230,000	Oct-28	1% + corridor	Unsecured
Total		84,762	79,872

North Korea (Koryolink)

-       During August 2022, Koryolink decided, at the request of a shareholder in the company, to grant shareholders, without discrimination, a non-interest loan in accordance with the rules and procedures of local law, according to the percentage of its contribution to the company's capital. The loan, amounting to approximately 81.7 million euros (equivalent to US$ 90.18 million as of 31 December 2023), was transferred to the account of Orascom Investment Holding Company in the Republic of Korea, knowing that all local regulations and laws regarding bank transfers and transactions will be applied to the mentioned amounts, and Orascom Investment Company will continue to comply with international sanctions resolutions in this regard.

-       It is worth noting that the loan is interest-free and for a period of 5 years, which can be automatically increased for another period or periods of 3 years each, and it will be agreed between the company and Koryolink on the method of repayment, whether in cash or by settlement with other balances between the two companies.

Loan (Orascom Pyramids Entertainment (OPE)

On 30 September 2020, a long-term loan contract was signed between the Bank of the Arab International Banking Company and Orascom Pyramids for Entertainment Projects (LLC), provided that the Bank of the Arab International Banking Company grants the company financing in the form of a long-term loan amounting to EGP 230 million equivalent US$7.4 million. This is for the purpose of contributing to the financing of the remaining part of the investment costs of the project to develop and provide services in the visit area of Giza Pyramids and the adjacent and associated areas according to the usufruct licensing contract dated December 13, 2018, concluded between the Supreme Council of Antiquities and Orascom Investment Holding Company, as follows:

-       An amount of EGP 80 million equivalent US$ 2.6 million for the civil works for the restaurant complex and the connection of utilities. information systems and the accounting system for the project.

-       An amount of EGP 52 million equivalent US$ 1.7 million for the infrastructure works for the information network

-       An amount of EGP 90 million equivalent US$ 2.9 million for the civil works, renovations and improvements to the visitors' building, the VIP building "the current student building", the site of the visit, the organization of the area for the stables "horses camels - karts" and for the electric vans, the charging station and its maintenance.

-       An amount of EGP 8 million equivalent US$ ,26 million for the field work of The Nile Pyramids Lounge.

-       Provided that the company is committed to disbursing in accordance with the above items only with the same values, except for the items of civil works. The company is allowed to increase it by 10% as a discount on the surpluses of other exchange items, provided that the use of all items does not exceed the total value of the loan.

ii)  Finance lease liabilities

-       Finance Lease Contracts Liabilities:

The Group entered into finance lease transactions between OPE (Orascom pyramids Entertainment) and El Tayer For Leasing during the year 2022 with a total contractual amount EGP 23M (US$0.745M) in order to rent 6 electric buses and 2 charging stations, and the rental value is paid in quarterly instalments for a period of 27 instalments, while giving the company the right to own these buses and charging stations at the end of the contract period, and the payment of instalments ends on 30/7/2028, for a specific value.

-       Liabilities from sale and lease back transactions:

During March 2023, the company sold and leased its headquarters to GB for leasing for the amount of 156,594,000 Egyptian pounds (US$ 5,073,678) and for that the lessor approved to rent owned assets in 2005 - A. Nile City Towers- South Tower - Floor 26 that of 1304.95 square meter for 5 years starting from March 31, 2023 and ending March 31, 2028. This asset has been leased for 148,764,300 Egyptian pounds (US$ 4,819,994)  and the lessee has the right to buy the leased asset at the end of the contracted period  for 1 Egyptian Pounds, for the lessee to address the buying option for the lessor two months before the defined period ends and for the selling price at the end of contracted period to be equivalent to the unsettled current lease prices added to asset fair value at contracted date with 5% early-settlement penalty in accordance with terms and conditions as follows:

In the case of the lessee chose, as per his right, to buy the asset, the lessor has to propose a final selling contract to the lessee within a month from the end of contract date as long as the lessee applied all written terms and conditions. And in all cases, asset ownership cannot be transferred from lessor to lessee unless the lessee fully settles the contracted amount, formed a written contract between the two parties moreover the lessee is obliged to pay all expenses, taxes, customs and any other related payments of the selling contract.

During March 2024, the company requested to settle the amount of loan, penalties related to early-payments and the company transferred the amount in full including the early-payment penalties dated March 13, 2024, and is currently working towards signing the liability's settlement.

-       Operating Lease Contracts Liabilities:

During 2018, ana agreement has been made at The Pyramids area in giza with the amount of 20 million Egyptian pounds (US$ 0.648M.) with annual 10% increase starting from actual operating date or 50% of net profits, which ever is higher. The subsidiary was given a grace period to finalize its developments in the ancient area for the Egyptian government is committed to finalize some issue in the ancient area for then the subsidiary can actually begin operating. The actual start date of the lease contract is within the last quarter of year 2023. According to the governmental parties responsible for the project, company's management has approved to pay the minimum limit for the financial year starting July 1, 2022 and ending June 30, 2023.

The following table the amount of finance lease liabilties as of December 31, 2023:

Description	Company	31 Dec 2023 In US$	31 Dec 2022 In US$	Original currency
Finance lease liabilities	OPE	612	876	EGP
Sale & Lease back	OIH	4,814	--	EGP
Operating lease liability	OPE	13,207	--	EGP
Total		18,633	876

25.  Provisions

(In thousands of US$)	2023	2022
Opening balance	8,702	11,769
Made	1,487	1,718
Used during the year	(302)	(1,799)
Foreign currency translation differences	(2,607)	(2,986)
Ending balance	7,280	8,702

Provisions are related to expected claims resulting from the Group companies' ordinary course of business. The required information about these provisions were not disclosed, according to the related IFRSs Accounting standards, because the management of the Group believes that doing so, will strongly affect the final settlement of these provisions for claims.

26.  Trade payables and other liabilities

	2023			2022
(In thousands of US$)	Current	Non-current	Total	Current	Non-current	Total
Trade payables
Trade payables due to suppliers	9,812	--	9,812	8,249	--	8,249
Customers credit balance	220	--	220	58	--	58
Other trade payables	724	--	724	987	--	987
Total	10,756	--	10,756	9,294	--	9,294
Other liabilities
Prepaid traffic & deferred income	994	--	994	137	--	137
Contract liabilities	--	--	--	--	189	189
Due to local authorities	6	--	6	3	--	3
Personnel payables	103	--	103	261	--	261
Subscriber deposits	63	--	63	17	--	17
Other credit balances *	3,671	--	3,671	10,072	--	10,072
Total other liabilities	4,837	--	4,837	10,490	189	10,679
Total	15,593	--	15,593	19,784	189	19,973

*  Other credit balances include employee benefits managed by OIH under the Management Agreement with the Ministry of Telecommunications. OIH oversees MIC1 SAL on behalf of the Republic of Lebanon, the owner of both mobile network operators.

Orascom Telecom Lebanon SAL (OTL) is created to manage the personnel of MIC, as employer, yet all personnel costs are charged to and reimbursed by the Lebanese Government as per the term of the management agreement. The amount which is included in the other credit balances - current as of December 31, 2023, is US$ 0.262 million (2022 US$ 0.262 million) and regarding to the remaining amount of other credit balance is comprised of accrued bonuses and other payable towards governments by US$ 2.8 million and US$2.7 million, respectively.

27.  Earnings / (Losses) per share --- (Basic & Diluted)

-   Basic (losses) / earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the year. For the purposes of the (losses) / earnings per share calculation, it has been assumed that the number of issued shares at the date of incorporation (5,245,690 thousand) had been outstanding during the year.

-   Diluted (losses) / earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. During the period covered by the report, the Company did not have any dilutive potential ordinary shares and as such diluted and basic (losses) / earnings per share from continuing operations and from discontinued operations are equal.

A.    Earnings / (Losses) per share from Continuing operation attributable to equity holders

Basic and diluted (in US$)

(In thousands of US$)	For the year ended	For the year ended
	December 31, 2023	December 31, 2022
(loss) / Earnings from continuing operations	(48,711)	37,719
Weighted average number of shares (in thousands of shares)	5,245,691	5,245,691
(Losses) / Earnings per share - basic and diluted	(0.0093)	0.0072

B.    Earnings / (Losses) per share from Discontinuing operation attributable to equity holders

Basic and diluted (in US$)

(In thousands of US$)	For the year ended	For the year ended
	December 31, 2023	December 31, 2022
Earnings / (Losses) from discontinuing operation	9,434	(620)
Weighted average number of shares (In thousands of shares)	5,245,691	5,245,691
Earnings / (Losses) per share - basic and diluted	0.0018	(0.0001)

28.  Discontinued operations

(In thousands of US$)		For the year ended December 31, 2023	For the year ended December 31, 2022
Loss on disposal of TWA	(28-1)	(500)	(620)
Disposal of floors in Brazil	(28-2)	9,413	--
Mena Cable	(28-3)	521	--
Profit/(Loss) (net of income tax)		9,434	(620)

28-1 Discontinued operations result from TWA:

During 2021 the Company has announced the sale of all shares of TWA, Orascom Investment Holding owns 51% of total TWA and the sale transaction is completed on 21 January 2022 and the share of Orascom Investment Holding amounted about US$ 35.5 million and the shares ownership has been transferred on that date mentioned above.

During the year 2023, the final selling price has been agreed to be around 35 million US$ and according to this adjustment, Orascom Investment Holding settled around US$ 500 thousands as adjustments to the transaction of subsidiary's selling.

TWA' results during the financial year ending (In Thousands of US$)			For the year ended December 31, 2023	For the year ended December 31, 2022
Sale value of Company in TWA received in 2022			--	32,005
Advanced payment of sale value paid in 2021			--	2,995
Total amount received			--	35,000
Carrying amount of assets sold			--	(44,818)
Disposal of carrying amount to NCI			--	21,628
Disposal of currency translation reserve			--	(5,300)
Company shares in TWA profit before tax			--	6,510
Income Tax			--	(7,130)
Group net loss from the disposal			--	(620)

28-2 Discontinued operations result from Sale of 1.5 Floor in Brazil:

During May 2023, the group announced about an acquisition offer received regarding its owned assets in Brazil of which the Board of Directors approved to hire an independent financial consultant, to report a study related to the equivalent price of the assets and that in accordance with the requirements of article (43) from rules for listing and delisting securities on the stock exchange.

During September 2023 and for securing the selling transaction, the company established two subsidiaries in Brazil and the ownership of the investment property has been transferred to the two companies with the amount totaling to 87.5 million BRL equivalent to around 539 million Egyptian pounds (after deduction of due taxes).

The Group disposed the remaining 1.5 floors equivalent to 6 offices to a third party for a value of BRL 87,5 Million equivalent in US$ 17,575 Million, as per the sale agreement executed Note (17).

And Management considers this disposal price as an approximation of fair value as follows:

(In Thousands of US$)		For the year ended December 31, 2023	For the year ended December 31, 2022
Cash Proceed resulted from disposal of 1.5 Floor		18,075	--
NBV of investment property		(7,079)	--
Total Gain resulted from disposal		10,996	--
Expenses incurred associated to Sales process		(32)	--
Rental income recognized before sale		853	--
Profit before tax		11,817	--
Income Tax		(2,404)	--
Group net Profit after tax		9,413	--

28-3 Discontinued operations result from Mena cable:

In 2023, the Group received EGP 16 million (US$ 521 thousand) which represents the total balance due to Orascom investments holding and its subsidiaries from Mena cable company regarding the technical malfunction of Mena Submarine Cable System and Transferring 100% of Group shares in MENA Cable to the Egyptian International Submarine Cables Company.

29.  Commitments

The commitments as of December 31, 2023, and December 31, 2022, are provided in the table below:

(In thousands of US$)	For the year ended December 31, 2023	For the year ended December 31, 2022
Purchase of property and equipment	499	4,600
Others	--	916
Total	499	5,516

30.  Related party transactions and balances

Transactions with, associates, affiliate, and other related parties with the Group throughout the year are not considered atypical or unusual, as they fall within the Group's normal course of business.

The main related party transactions and balances, other than those already disclosed in this consolidated financial statement, resulted from these transactions are summarised as follows:

(In thousands of US$)	Year ended December 31, 2023		Year ended December 31, 2022
	Exp paid on behalf of related party	Investment expenditure	Exp paid on behalf of related party	Investment expenditure
OIH
CHEO Technology JV - associate (a)	221	--	155	--
(In thousands of US$)	Year ended December 31, 2023		Year ended December 31, 2022
	Receivables	Payables	Receivables	Payables
OIH
CHEO Technology JV - associate	--	8,093	--	7,800

Balances receivables from CHEO Technology JV are fully impaired. Furthermore, the Group did not offset balances receivables against the payables relating to CHEO, due to the Group not intending to settle the recognized amounts on a net basis or to realize the asset settle the liability simultaneously.

^(a) 2022 figures are being restated to reflect the corrected comparative figures refer to note (3)

Key management compensation

§ Key management includes executive and non-executive directors, the chief financial officer and other managing directors considered key personnel.

§ The compensation paid or payable to key management for employee services amounted to US$ 1,6 million and 0.34 million, respectively for the years ended December 31, 2023, and December 31, 2022.

31.  Contingent assets and liabilities

The contingent liabilities, are represented in guarantees issued by the holding company and related to the activities of its subsidiaries, as follows:

Orascom Pyramids for Entertainment Projects

There are letters of guarantee equivalent to US$ 0,646 million in favour of the Bank of the International Arab Banking Company.

Orascom Investment Holding Company

There is letter of credit equivalent to US$ 2.4 million in favour of the National Bank.

 

32.  Reversal of provisions

(In thousands of US$) For the year ended December 31, 2023 For the year ended December 31, 2022 Reversal of provisions - 2,585 Total - 2,585 During OTL operation in Lebanon, the company accrued for a bonus for OTL employees. The accrued amount was more than the actual paid bonus; hence the company reversed the extra accruals in 2022.

33.  Subsequent events

 

§ On June 25, 2023, Orascom Investment Holding S.A.E. (the "Company") entered a strategic partnership with Caxton Holding LLC (the "Founders SPV"), a limited liability company established in the United Arab Emirates a company founded to revolutionize light electric mobility through battery-swapping technology and a fully integrated digital platform. The objective of the partnership is to drive a major transformation in the transportation sector within Egypt and across regional markets in the Middle East and Africa. As part of the investment structure, the Company established BluEV Holding Limited (the "HoldCo"), with an injection of an initial investment amount of $3 million.  As a result, the Company hold 98% interests in HoldCo, while the remaining 2% is held by Caxton Holding LLC (the "Founders SPV"),

Caxton Holding LLC (the "Founders SPV") is entitled to acquire a share of BluEV Holding Limited (the "HoldCo")'s total capital in the form of (Eligible Shares) in equal instalments expiring in 2029. They are also entitled to acquire a share of the Company's capital in the form of (Call Option Shares) to be vested in instalments expiring in 2027 and exercisable until December 31, 2031.

All rights to Founders SPV were granted starting from July 1, 2024, which will be vested based on the achievement of defined technical, commercial, operation and financial targets as well as the founders' continued service in HoldCo.

§ During March 2024, Orascom Investment Holding Company has made an early settlement for the sale and leaseback process for the 29th floor with an amount of approximately EGP 159 million (US$ 3.4 million), and several legal procedures are still in process.

§ On November 18, 2024, the Company's Board of Directors, representing experienced non-executive members and independent members, approved the following:

-     Acquisition of Misr Entertainment Investments Co. M.L. ' In principle, following all legal and regulatory procedures and authorizing engineer/Akil Bashir to negotiate acquisition terms.

-     Appointment of an independent financial adviser to submit a study of the exchange at the fair price of shares/shares in possession in accordance with the procedures set out in article 44 of the Rules for the Entry and Deletion of Securities in the Egyptian Stock Exchange.

-     To appoint a legal adviser to prepare a study on acquisition companies that is not unaware.

§ During December 2024, Koryolink grant shareholders, without discrimination, a 5 years non-interest bearing loan in accordance with the rules and procedures of local law, according to the percentage of its contribution to the company's capital. The loan, amounting to approximately 30 million euros was transferred to the account of Orascom Investment Holding Company in the Republic of Korea.

§ During the year 2024, the company paid the credit balance due to Koryolink Company with an amount of approximately 8 million euros from the company's bank account in North Korea.

§ In June 2025, the board of Directors approved a share buyback program of up 524,569 shares (10% of the company's capital), following the FRA's approval on June 18,2025, to be executed at market prices in accordance with regulatory requirements. No shares had been repurchased as of June 30, 2025.

§ Orascom Investment Holding's subsidiary, OSL for Entertainment Projects, has entered medium-term financing agreement with Commercial International Bank (CIB) the main financial collateral was provided as the following:

·      Agreement: A nine-year, medium-term financing deal with Commercial International Bank (CIB), signed in July 2025.

·      Parties: OSL for Entertainment Projects (a subsidiary of Orascom Investment Holding) and CIB.

·      Funding Breakdown:

o  Loan: US$ 9.146 million .

o  Loan: EGP 364.8 million (equivalent to US$ 11.81)

o  Letters of Guarantee: EGP 36 million (equivalent to US$ 1.2)and USD 1.5 million

·      Purpose: To fund the development of the sound and light shows and a new exhibition area at the Pyramids and Sphinx.

Orascom Investment Holding S.A.E.

Appendix A - Subsidiaries and investment in Equity accounted investees as of December 31, 2023

Segment	Country of incorporation and place of business	Entity name	Nature of business	Proportion of ordinary shares held by the Company (%)	Proportion of ordinary shares held by OIH Group (%)	Proportion of ordinary shares held by the non-controlling interest / other shareholders (%)	Investment type
Media and Technology	Egypt	Oracap Holding Co. (Free zone)	Other	100%	100%	0.00%	Subsidiary
Media and Technology	Malta	Oracap Far East Ltd	Other	100%	100%	0.00%	Subsidiary
Management services	Lebanon	Orascom Telecom Lebanon	Management services	99,8%	99,8%	0.20%	Subsidiary
Other	Luxembourg	OIH-Renewables	Other	100%	100%	0.00%	Subsidiary
Other	North Korea	Osorcon	Other	100%	100%	0.00%	Subsidiary
Investment Property	Netherlands	Victoire coop Investment Holding	Investment Property	100.00%	100.00%	0.00%	Subsidiary
Investment Property	Netherlands	Victoire BV	Investment Property	100.00%	100.00%	0.00%	Subsidiary
Investment Property	Brazil	INCA 9 (Brazil)	Investment Property	100.00%	100.00%	0.00%	Subsidiary
Investment Property	Brazil	INCA 19 (Brazil)	Investment Property	100.00%	100.00%	0.00%	Subsidiary
Energy	Egypt	O Capital for energy	Energy	99,2%	99,99%	0.01%	Subsidiary
Energy	Egypt	O Capital for services and construction	Energy	99,2%	99,99%	0.01%	Subsidiary
Media and Technology	Egypt	Orascom Telecom Venture co. "S.A.E"	Other	99,99%	99,99%	0.01%	Subsidiary
Entertainment	Egypt	Orascom Pyramids Entertainment "S.A.E"	Entertainment	100%	100%	0.00%	Subsidiary
Entertainment	Egypt	Orascom Prisme Pyramides Entertainment "S.A.E"	Entertainment	70%	70%	30%	Subsidiary
Entertainment	Egypt	Orascom Pyramids for Touristic Establishment	Entertainment	100%	100%	0.00%	Subsidiary
GSM North Korea	North Korea	CHEO Technology JV Company	Telecommunication operator	60%	60%	25.00%	Associate

 

END