SEKEM Sustainability Report - 2015

I see SEKEM as a resistance model against the craze of growth and prosperity – as well as the craze of money and avarice."

SEKEMs economic year 2015 was strongly characterized by reliable partnerships and supporters. Since the Egyptian revolution SEKEMs companies had to face various challenges. But thanks to a reliable and committed network of partners, who continuously supported SEKEM, even though they were aware of the difficulties, SEKEM is getting back on track.

It is clear to us now, that you have to experience SEKEM yourself to really understand its relevance. Reconciling Muslim and European culture, sustainable agriculture and professional production, work and life in the SEKEM community is unique."

Tino Nitsch, Davert GmbH

SEKEMs shareholder remained with the initiative and even supported the acquisition of new partners. In 2015, SEKEM organized a shareholder visit: Several SEKEM supporters from Europe traveled to the land of the pyramids and pharaohs and convinced themselves of SEKEMS sustainable business practice.

SEKEMs partner company Davert that successfully distributes SEKEM products in Germany visited the SEKEM Farm. Together, SEKEM and Davert developed a wide range of great Organic products that have been presented at the 2015’s “Biofach”, the leading fair for the Organic sector in Europe.

It is my passion to communicate with people and to convince them of the value of something good.”

To foster the trust of the local market and to improve quality, SEKEM monitored its presence through a reliable customer service department.

All in all, SEKEM focused in 2015 on stability, resilience and healthy growth. The SEKEM Group of Companies started to rethink and develop its management structure to foster autonomy and decentralization. By defining new leading and organizational structures, the individual companies shall benefit from more efficiency and sustainability.

ISIS Organic keeps its position as one of the biggest and most successful Organic companies in the Middle East. The enterprise opened a new bottling plant for ISIS table water in February, which has been running very prosperous in 2015.

We have chosen a special bottle design to distinguish ourselves from the other producers of bottled water."

Mamdouh Abou El Eish, GM, ISIS Organic

2015

136

2014

92

2013

75

Total amount of customer complaints & claims.

2015

1:36

2014

1:46

2013

1:60

Rate of highest to lowest annual full-time salary.

2015

36

2014

4

2013

11

Total amount of internal investments

(in million EGP).

2015

10%

2014

10%

2013

0%

Share of net profit invested into community development.

SEKEMs company Lotus could accomplish its objectives in 2015. Different new products have been added to the production, such as the currently very popular crops chia and quinoa as well as jojoba oil. Read about Mohamed Abd El Ghany.

ATOS Pharma had a difficult start into 2015. After hiring a new General Manager and investing in trainings for employees and sales staff, the situation became better from month to month. At the end of the year the company started the production of different diagnostic items, for instance a device for testing the infection of Helicobacter pylori bacterium or Hepatitis C virus, a pregnancy test or a drug screening test. All these devices have been imported until now and ATOS Pharma will be the first national company producing and marketing diagnostic tests in the coming year.

Likewise, NatureTex faced difficulties in the first half of 2015, while managed to get back on track afterwards. New product lines have been developed and the co-workers have been supported by many trainings and social activities.

Sustainable Business Practice

SEKEM Agriculture did not initiate new investments in 2015 but could manage to bear all costs independently. To support sustainable business practice of other companies in Egypt that are engaged to agriculture SEKEM developed, together with partners, a Self-Assessment Tool based on the existing Sustainability Flower framework. The system is called Sustainability Flower Self-Assessment Tool and is available as an easy-to-use online tool.

Consolidated Business Performance 2015

Even though SEKEM increased its sales, the Profit Before Tax as well as the Profit for the Year are below last year, as there has been a loss in books due to the devaluation of the US Dollar and Euro at the end of 2015.

Still, the company managed to achieve debt reduction as planed. The main target for the year 2015 has been resilience and debt reduction, which will remain for the year 2016 as well.

2015

100%

2014

100%

2013

100%

Share of organic waste recycled.

2015

12%

2014

10%

2013

3%

Share of sales revenues from new products and services in the last three years.

2015

2.5

2014

2.1

2013

2.0

Total weight of waste per 1000 EGP sales.

2015

51%

2014

32%

2013

34%

Share of non- organic waste recycled.

2015

1:36

2014

1:46

2013

1:60

Ratio of highest to lowest annual full- time salary.

2015

56%

2014

62%

2013

57%

Share of sales value of products with known Carbon Footprint.

2015

99%

2014

99%

2013

99%

Share of export sales value of products that have an Organic & Demeter Certificate.

2015

60%

2014

63%

2013

83%

Share of sales value of products that have an Organic & Demeter Certificate.

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