2020 SOCIAL & ECONOMIC IMPACT REPORT This report was prepared with the approval of Galaxy Group of Companies’ Board of Directors Analysis was conducted using data from 2019
© ALL RIGHTS ARE RESERVED 2020 The use, disclosure and dissemination of the information contained in the report by third parties is strictly prohibited without the official written consent of Galaxy Group of Companies.
GALAXY GROUP OF COMANIES / 2020
FOREWORD
2
Nowadays, when everyone’s aiming for the stars,
know, everyone you ever heard of, every human being
trying to explore the universe, we at Galaxy
who ever was, lived out their lives. The aggregate
believe in the commitment to improve our
of our joy and suffering, thousands of confident
own community and the lives around us whilst
religions, ideologies, and economic doctrines, every
simultaneously preserving our home—Armenia.
hunter and forager, every hero and coward, every creator and destroyer of civilization, every king and
We often get questions as to why we carry out our
peasant, every young couple in love, every mother
development projects even in times of instability.
and father, hopeful child, inventor and explorer,
Carl Sagan’s famous quote on the Pale Blue Dot—
every teacher of morals, every corrupt politician,
very much symbolic for us in many regards—was
every “superstar”, every “supreme leader”, every
a major source of inspiration for our company’s
saint and sinner in the history of our species lived
ideology and the values we strive to achieve and
there—on a mote of dust suspended in a sunbeam.”
subsequently promote. “That’s here. That’s home. That’s us.” (the famous caption on the photo) serves both as a reminder and an embodiment of what
In our relationship with our community, we believe
and, most importantly, for who we are working
values like transparency and accountability serve
towards. An excerpt from the Pale Blue Dot reads,
a simple purpose—we aspire to have a substantial
GURGEN KHACHATRYAN
“Look again at that dot. That’s here. That’s home.
impact on the development of our country. Our
Co-founder of Galaxy Group of Companies
That’s us. On it everyone you love, everyone you
reports are thus a modest record of that impact.
Chairman of the Board of Directors at Ucom
GALAXY GROUP OF COMANIES / 2020
TABLE OF CONTENTS
2 FOREWORD 4 ABOUT THE COMPANY OUR STORY
COMPANIES UNDER GALAXY GROUP
GALAXY’S WORLD-WIDE BUSINESS RELATIONS
8 GALAXY COMMUNITY IN NUMBERS
GALAXY COMMUNITY DEMOGRAPHIC PROFILE
13 SOCIO-ECONOMIC IMPACT
EMPLOYEES AND SALARY FUND
JOB PROFILE AND SALARY COMPARISON
19 ECONOMIC ACTIVITY IN NUMBERS
TAXES PAID IN 2019
GDP IMPACT IN 2019
IMPACT. FINANCES AND BANKING IN 2019
3
GALAXY GROUP OF COMANIES / 2020
4
ABOUT THE COMPANY
FOREWORD
TABLE OF CONTENTS
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
GALAXY GROUP OF COMANIES / 2020
OUR STORY
5
Galaxy Group of Companies was founded in 1999 by Aram, Gurgen and Artyom Khachatryans. As a result of 20 years of operation, Galaxy Group has grown from a team of 30 employees to Armenia’s number one employer, having over 3,000 highly paid employees and over 800,000 active subscribers and customers. From an idea to a project, from a project to a company – Galaxy has created its companies from the ground up, assuming the corporate management role. Currently, each of the 15 companies operating under Galaxy Group was created from scratch—first came the idea or the concept, then those became investment projects which was then followed by incorporation of partners and international investors. As a results, those investment projects became established companies famous to the public for their exceptional quality and service culture. Galaxy Group of Companies is represented in three countries—Armenia, Georgia and Belarus. Every company is one of its kind and operates to the highest standards, placing a lot of importance on innovation and corporate social responsibility culture. In the meantime, Galaxy Group continues carrying out huge CSR projects of its own aimed at education, innovation and arts with the purpose improving the quality of life of its community.
FOREWORD
TABLE OF CONTENTS
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
COMPANIES UNDER GALAXY GROUP
6
GALAXY GROUP OF COMANIES / 2020
Talent wins games, teams win championships. Companies at Galaxy are different but they are all a single team—united for a mission.
COMMERCIAL REAL ESTATE & CONSTRUCTION
FOREWORD
ENTERTAINMENT & HOSPITALITY
TABLE OF CONTENTS
IMPORTATION & PRODUCTION
ABOUT THE COMPANY
RETAIL & CONSUMER GOODS
GALAXY COMMUNITY IN NUMBERS
TELECOMMUNICATION & IT
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
GALAXY’S WORLD-WIDE RELATIONS
7
GALAXY GROUP OF COMANIES / 2020
A journey is best measured by friends made along the way rather than miles. During the 20 years of our journey, we have established and proudly maintained strategic partnerships with 200+ partner companies from over 20 major business destinations in the world.
Sweden Denmark Norway Netherlands UK France Germany Switzerland Austria Spain Italy Greece Russia Ukraine Bulgaria Poland USA UAE Japan Taiwan China
FOREWORD
TABLE OF CONTENTS
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
GALAXY GROUP OF COMANIES / 2020
8
GALAXY COMMUNITY IN NUMBERS
FOREWORD
TABLE OF CONTENTS
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
GALAXY COMMUNITY IN NUMBERS
GALAXY GROUP OF COMANIES / 2020
9
Active customers
FOREWORD
TABLE OF CONTENTS
800,000+ ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
GALAXY COMMUNITY IN NUMBERS
GALAXY GROUP OF COMANIES / 2020
10
Access to every 3rd family in Armenia
FOREWORD
TABLE OF CONTENTS
1,000,000 ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
GALAXY COMMUNITY IN NUMBERS
GALAXY GROUP OF COMANIES / 2020
11
Followers of the group of companies in Armenia
FOREWORD
TABLE OF CONTENTS
1,500,000+ ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
GALAXY COMMUNITY DEMOGRAPHIC PROFILE
GALAXY GROUP OF COMANIES / 2020
HIGHER EDUCATION
MEDIUM AND HIGH INCOME GROUP
18-55 YO
WOMEN 56.3%
MEN
URBAN POPULATION
44.7%
76%
SOCIALIZING: active walking, purchase, public food centers
12
INTERNET AS THE PRIMARY SOURCE OF INFORMATION
82%
46.3%
PAID EMPLOYEES (PRIVATE AND PUBLIC SECTORS)
CRITICAL MASS, CIVIL ACTIVISM
DEMOGRAPHIC
FOREWORD
BEHAVIOR
TABLE OF CONTENTS
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
GALAXY GROUP OF COMANIES / 2020
13
SOCIO-ECONOMIC IMPACT
FOREWORD
TABLE OF CONTENTS
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
EMPLOYESS AND SALARY FUND
187,300 ֏ *
RA
GALAXY GROUP OF COMANIES / 2020
Average monthly income
14
** 421,179
Employees
3.709 bln ֏
Paid income tax
376,165 ֏
2,864
Average monthly income
Employees
* ֏ = Armenian Currency: Dram (AMD) FOREWORD
** Private sector
TABLE OF CONTENTS
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
EMPLOYESS AND SALARY FUND
15
20% salary increase compared to the 3% in the RA
GALAXY GROUP OF COMANIES / 2020
Salary increase dynamics 2018
2019
400,000 ֏ 300,000 ֏ 200,000 ֏ 100,000 ֏ 0֏
314,058 ֏
181,865 ֏
376,165 ֏
187,300 ֏
GALAXY RA
FOREWORD
TABLE OF CONTENTS
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
EMPLOYESS AND SALARY FUND
16
GALAXY GROUP OF COMANIES / 2020
Gender distribution
2,864 employees 56%
1,598
Men
FOREWORD
44%
1,266
Women
TABLE OF CONTENTS
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
JOB PROFILE AND SALARY COMPARISON
17
GALAXY GROUP OF COMANIES / 2020
Salaries based on company size
1-9 employees
138,280 ֏ 95,679 ֏
10 - 49 employees
259,240 ֏ 95,516 ֏
50 - 249 employees
291,997 ֏ 90,569 ֏
> 250 employees
383,663 ֏ 139,415 ֏ 0
200,000 ֏
400,000 ֏
GALAXY RA
FOREWORD
TABLE OF CONTENTS
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
JOB PROFILE AND SALARY COMPARISON
18
Galaxy Group of Companies is one of the most in-demand organizations of highly qualified workforce in Armenia.
GALAXY GROUP OF COMANIES / 2020
Employee Distribution
68%
Salary Comparison
Information and communication
1% Construction 2% Consultation 2% Security 4% Service
6% Real estate management 8% Retail 9% Wholesale
Construction
152,434 ֏ 189,953 ֏
Consultation
402,446 ֏ 191,748 ֏
Wholesale
355,515 ֏ 130,640 ֏
Service
94,061 ֏ 114,945 ֏
IT and Communication
431,121 ֏ 441,589 ֏
Real Estate Management
364,234 ֏ 150,000 ֏
Retail
207,791 ֏ 130,640 ֏
Security
131,963 ֏ 114,945 ֏ 0
FOREWORD
TABLE OF CONTENTS
ABOUT THE COMPANY
250,000 ֏
GALAXY COMMUNITY IN NUMBERS
GALAXY RA
500,000 ֏
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
GALAXY GROUP OF COMANIES / 2020
19
ECONOMIC ACTIVITY IN NUMBERS Taxes, loans, GDP impact
FOREWORD
TABLE OF CONTENTS
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
TAXES PAID IN 2019
20
Galaxy Group contributes to 1.01 % of the total taxes collected in Armenia.
GALAXY GROUP OF COMANIES / 2020
Taxes paid by Galaxy Group 2018
Taxes paid in the RA
2019
$ 32 mln
$ 3.2 bln
$ 31 mln
$ 3.1 bln
$ 30 mln
$ 3.0 bln
$ 29 mln
$ 2.9 bln
$ 28 mln
$ 2.8 bln
$ 27 mln
$ 2.7 bln
$ 26 mln
$ 2.6 bln
$ 25 mln
$ 2.5 bln
$ 27,723,056
$ 31,210,558 GALAXY
FOREWORD
TABLE OF CONTENTS
2018
2019
$2,723,016,664
$3,097,073,179 RA
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
GDP IMPACT IN 2019
21
GALAXY GROUP OF COMANIES / 2020
Acquisitions made by Galaxy Group from the local market amounted to USD 53 million in 2019.
Allocations to travel agencies
$
Services
$ 2,882,771
Fixed assets
$ 9,093,117
Talent development
$
554,100
Office goods & supplies
$
731,889
Transport
$
987,965
Banking and payment
$ 1,395,623
Rent
$ 6,408,999
Bills
$ 4,456,311
Marketing
$ 2,712,790
Commercial
$ 21,697,318 0
FOREWORD
$ 5 mln
TABLE OF CONTENTS
$ 10 mln
467,707
RA
$ 13.65 bln - RA GDP
$ 53 mln consumption - 0.4%
$ 20 mln
ABOUT THE COMPANY
GALAXY COMMUNITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
IMPACT. FINANCES & BANKING IN 2019
22
In 2019 Galaxy Group’s share in the total loans provided by Armenian banks amounted to 3.02%
GALAXY GROUP OF COMANIES / 2020
Galaxy Group loan statistics
Loans provided by the banks *
2018
2018
2019
$ 140 mln
2019
$ 4.3 bln
$ 120 mln
$ 4.2 bln
$ 100 mln
$ 4.1 bln
$ 80 mln
$ 4.0 bln
$ 60 mln
$ 3.9 bln
$ 40 mln $ 20 mln
$ 3.8 bln
$ 10 mln
$ 3.7 bln
$
$ 3.6 bln
0 $ 134,605,661
$
6,327,440
Loans provided
$ 128,044,927
Interest expense
**
FOREWORD
$ 10,505,007
TABLE OF CONTENTS
$
5,521,159
Bond
**
Interest on bonds totaled $ 207,000
ABOUT THE COMPANY
$ 3,865,600,665
GALAXY COMMUNITY IN NUMBERS
$ 4,239,168,093
Total loans in RA
*
* Non-commercial loans excluded
SOCIO-ECONOMIC IMPACT
ECONOMIC ACTIVITY IN NUMBERS
2020 THANK YOU www.galaxygroup.am
info@galaxygroup.am
This report was prepared with the approval of Galaxy Group of Companies’ Board of Directors Analysis was conducted using data from 2019
© ALL RIGHTS ARE RESERVED 2020 The use, disclosure and dissemination of the information contained in the report by third parties is strictly prohibited without the official written consent of Galaxy Group of Companies.