ARMENIA I GEORGIA I BELARUS
© Copyright, GALAXY GROUP OF COMPANIES 2020 All rights reserved. 2020 info@galaxygroup.am ANNUAL REPORT: FIRST EDITION/2020 No part of this book may be reproduced or used in any manner without written permission of the copyright owner except for the use of quotations in a book review.
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FOREWORD Nowadays, when everyone’s aiming for the stars, trying to explore the universe, we at Galaxy believe in the commitment to improve our own community and the lives around us whilst simultaneously preserving our home— Armenia. We often get questions as to why we carry out our development projects even in times of instability. Carl Sagan’s famous quote on the Pale Blue Dot—very much symbolic for us in many regards—was a major source of inspiration for our company’s ideology and the values we strive to achieve and 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 and, most importantly, for who we are working towards. An excerpt from the Pale Blue Dot reads, “Look again at that dot. That’s here. That’s home. That’s us. On it everyone you love, everyone you
know, everyone you ever heard of, every human being who ever was, lived out their lives. The aggregate of our joy and suffering, thousands of confident religions, ideologies, and economic doctrines, every hunter and forager, every hero and coward, every creator and destroyer of civilization, every king and peasant, every young couple in love, every mother and father, hopeful child, inventor and explorer, every teacher of morals, every corrupt politician, every “superstar”, every “supreme leader”, every saint and sinner in the history of our species lived there—on a mote of dust suspended in a sunbeam.”
In our relationship with our community, we believe values like transparency and accountability serve a simple purpose—we aspire to have a substantial impact on the development of our country. Our reports are thus a modest record of that impact.
GURGEN KHACHATRYAN CoFounder & Co-Chairman Chairman of the BoD at Ucom
TABLE OF CONTENTS
5 FOREWORD 8 WELCOME TO GALAXY GROUP OF COMPANIES 10
THE ADDRESS OF THE FOUNDERS
12
COMPANIES UNDER GALAXY GROUP
15
THE COMPANY
16
OUR STORY
18 OUR VALUES 20 OUR PEOPLE 22 OUR MODEL 24 BUSINESS DEVELOPMENT TIMELINE
27
OUR PORTFOLIO
28
THE COMPANIES
48 BUSINESS PROJECTS 54 WORLD-WIDE BUSINESS RELATIONS
57
CORPORATE SOCIAL RESPONSABILITY
58
OUR MISSION
60 #BECAUSE WE CARE 62 KEY PROJECTS & CAUSES 64 PROJECTS & PARTNERSHIPS
81
OUR COMMUNITY
82
COMMUNITY IN NUMBERS
88 DEMOGRAPHIC PROFILE
91
SOCIO-ECONOMIC IMPACT
92
EMPLOYEES AND SALARY FUND
JOB PROFILE AND SALARY COMPARISON
103
98
ECONOMIC ACTIVITY IN NUMBERS
104
TAXES PAID IN 2019
106
GDP IMPACT IN 2019
108
FINANCES AND BANKING IN 2019
8
GALAXY GROUP IN THE SPOTLIGHT
WELCOME TO GALAXY GROUP OF COMPANIES
Galaxy Group of Companies is a factory that forms, assembles and delivers successful businesses. Founded in 1999 by Aram, Gurgen and Artyom Khachatryans, the company grew from 30 employees to 3000, becoming one of the biggest group of companies in Eastern Europe. This is a group of companies that always strives for excellence by seeing ahead, asking questions yet to be actualized and combining previous experiences into something more developed, more successful. Galaxy is a house of professionals with shared standards and ethics, united by a mission to improve lives and communities. Welcome to our Galaxy!
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COU NTR IE S
B U SI N ESSE S
PARTN E R C OM PAN I E S
E M PLOYE E S
CU S TOM E R S
3
15
200+
3000
800.000+
10
GALAXY GROUP IN THE SPOTLIGHT
GURGEN KHACHATRYAN CoFounder & Co-Chairman gurgen@galaxygroup.am
ARTYOM KHACHATRYAN CoFounder & Co-Chairman artyom@galaxygroup.am
ARAM KHACHATRYAN CoFounder & CEO aram@galaxygroup.am
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THE ADDRESS OF THE FOUNDERS
“ In business mistakes are inevitable. In fact, 90% of businesses fail not because of mistakes but because they stop at the first mistake. We at Galaxy Group belong to the other 10% that starts over and over again until they achieve their goal. Hard work, continuous learning and consistency are the foundation of our team’s success. From small to big, we don’t have minor tasks—in our mission to deliver success, every detail is important. While everyone’s aiming at the stars, trying to explore the universe, we at Galaxy believe in the commitment to improve our own home, community and the lives around us. Whatever you search for—that’s here, that’s home, that’s us! ”
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GALAXY GROUP IN THE SPOTLIGHT
COMPANIES UNDER GALAXY GROUP Talents win games, teams win championships!
At some point in time, the companies in our portfolio were once considered as projects. We are multidisciplinary which helps us combine best practices from different industries and segments to create exceptional value for our customers. Each one is unique, offering disruptive and innovative products. We are all unified by a promise to never stop searching for better solutions. Our approach and point of view is always customer oriented and human-centric, which allows us to bring unique, innovative solutions.
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FOREWORD WELCOME TO GALAXY GROUP OF COMPANIES THE ADDRESS OF THE FOUNDERS COMPANIES UNDER GALAXY GROUP THE COMPANY OUR PORTFOLIO CORPORATE SOCIAL RESPONSABILITY OUR COMMUNITY SOCIO-ECONOMIC IMPACT ECONOMIC ACTIVITY IN NUMBERS
THE COMPANY
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GALAXY GROUP IN THE SPOTLIGHT
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OUR STORY Galaxy Group of Companies is a story for entrepreneurs and startup ventures.
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.
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GALAXY GROUP IN THE SPOTLIGHT
OUR VALUES The people that we work for and work with are our main source of inspiration.
We are always the first to ask questions and answer them with our work. Our ability to see ahead and calculate all courses of action lead us to practical innovation with maximal output. We always think about the markets of tomorrow. We work hard, we try, we evaluate, we deliver and we grow. We demand a lot from our partners and ourselves because there is a lot at stake. In our pursuit to better ourselves, we are also determined to help people and improve their lives. We strive to change the game not for the sake of merely shaking things up but pushing ourselves and our competitors towards better understanding and comprehension of our customers’ needs. We’re on a mission to improve people’s everyday lives.
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FORWARD THINKING
We always challenge the ordinary, rethink the existing.
CONTINUOUS LEARNING
Excellence comes from our ability to learn from each other.
GAME-CHANGING
With every market we enter and every project we initiate, we set new standards for the industry.
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GALAXY GROUP IN THE SPOTLIGHT
OUR PEOPLE Human is the reason; human is the answer!
The people that we work for and work with are our main source of inspiration. With people relying on us, we cannot compromise. Knowing that the lives of our consumers have improved thanks to our work is the ultimate reward and all the motivation we need to push further. We hope to ensure a higher quality of life for people by increasing efficiency, delivering simpler spoliations, and constantly pushing the boundaries of innovation. It takes years of hard work and team dedication to make an ovenight success.
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ARA KHACHATRYAN
HAYK LORIKYAN
Chief Operating Officer ara@galaxygroup.am
Deputy CEO, Business Development hayk@galaxygroup.am
EDGAR KARAPETYAN
SHUSHAN HARUTYUNYAN
Deputy CEO, Strategy and Business edgar@galaxygroup.am
Chief Communications Officer shushan@galaxygroup.am
MIKHAIL BROYAN
ELMIRA HOVHANNISYAN
Chief Investment Officer mikhail@galaxygroup.am
Chief HR Officer elmira@galaxygroup.am
GAYANE KROYAN
ARMAN MURADYAN
Chief Marketing & Research Officer gayane@galaxygroup.am
Chief Audit Executive arman@galaxygroup.am
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GALAXY GROUP IN THE SPOTLIGHT
OUR MODEL
Galaxy Group of Companies guarantees compliance with high international standards of corporate governance, application of best practices and management. Through continuous learning and the pursuit of perfection we have managed to transform the perceptions of doing business, while establishing a novel culture within the whole business ecosystem. Stemming from the customer-oriented and human-centric philosophy we generate unique and innovative solutions. To establish a distinct, measurable and accessible environment across all activities of Galaxy Group of Companies, we developed and introduced procedures and mechanisms as well as norms and directives ensuring successful implementation of standards.
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CONCEPT Initially, all you have is an idea but that idea is everything. We at Galaxy have developed our own set of tools and funnel for testing ideas.
PROJECT As we go further with the project, we develop, form and deliver it to the highest quality. We involve partners, investors and hire project teams to set it up for success.
COMPANY Companies are the core of our Galaxy. They perform and deliver the customers and come back to home base for strategy, consulting, business development and reporting.
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GALAXY GROUP IN THE SPOTLIGHT
BUSINESS DEVELOPMENT TIMELINE One step at a time is all it takes to get where we are right now.
We have been disrupting industries since 1999! What first began as a food distribution company, soon enlarged its portfolio to spheres such as consumer goods, retail, real estate, hospitality, telecommunications, and IT industries. As of today, Galaxy has 3,000+ employees and is represented in 3 countries with over 10 diverse fields of operations. We seek, evaluate, invest and deliver an innovative, life-changing solution that reinvents market standards, raise consumer expectations, and create a long-lasting positive impact on our customers’ lives.
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Yerevan Mall
Roomshin Construction company that delivers complex solutions for commercial real estate
Pahest 33
The first family-oriented shopping and entertainment center in Armenia
Concept Bar-restaurant with unique interior & Music Program)
Teryan 5 & Coutyard by Marriott MegaFood Company dealing with Import and Distribution of food products; official distributor of world renowned brands
1999
Chronograph Armenia
IUnetworks
2005
IT company providing Software Solutions to Governments & Businesses
Luxury Watches & Jewellery store
2008
2009
Chronograph Georgia
MegaToys Chain of retail stores with exclusive, high quality & eco-friendly toys
2010
The first new generation movie theatre with 6 halls and the best technology
Luxury Watches & Jewellery store
2011
2012
Downtown café & Restaurant located at the top touristic destination in Yerevan, Armenia
The first Fiber optic Internet & IP TV provider in Armenia
Chain of retail stores for a full line of sportswear & accessories
Chain of mid class Watches & Jewellery stores
Santafè
Ucom
MegaSport
TI’ME Armenia
2013
2014
Residential & hotel (The first mixed-use building with executive apartments managed by Marriott hotel
TI’ME Belarus
KinoPark
2015
Chain of mid class Watches & Jewellery stores
2016
2017
Chain of mid class Watches & Jewellery stores
Concept store for jewelry & accessories
Concept store for jewelry & accessories
TI’ME Georgia
Pandora Armenia
Pandora Belarus
Deltapro
Captain Kid
Company that imports, produces and implements complex work with sophisticated facilities - skylight, glass doors and windows, composite panels
Kids entrainment center with a conceptual customer journey, unique games & characters
Ucom & Orange Ucom acquires Orange Armenia (France Telecom) becoming a telecommunications company
2019
2020
The famous French café & bakery (official franchise of a chain of stores in Armenia
PAUL Armenia
UNFOLD
FOREWORD WELCOME TO GALAXY GROUP OF COMPANIES THE ADDRESS OF THE FOUNDERS COMPANIES UNDER GALAXY GROUP THE COMPANY OUR PORTFOLIO CORPORATE SOCIAL RESPONSABILITY OUR COMMUNITY SOCIO-ECONOMIC IMPACT ECONOMIC ACTIVITY IN NUMBERS
OUR PORTFOLIO
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KEY BUSINESS PROFILES
Partners
Established:
2009
Profile:
Telecommunications
Employees:
1700
CEO:
Ara Khachatryan
Market Share:
40%
Contact:
www.ucom.am
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Executive Summary Ucom is the fastest fixed and mobile services provider in Armenia. It is the absolute leader in IPTV and fixed internet market in Armenia and occupies the key position on the Armenian mobile internet market. This is testified by the world famous Speedtest by Ookla, the global leader in internet testing and analysis, which awarded Ucom “The Fastest Mobile Internet in Armenia 2017� prize.
Products & Services Internet
Fixed Services
IPTV
Mobile Services
Game-Changing Solution In 2008-2009, Ucom partnered with Ericsson to make Yerevan the first city in the world with a full coverage of Fiber optic communication network. Ucom also pioneered IPTV in Armenia which not only caused a disruption in the consumer market within two years of its introduction but also changed the perception of television consumption as a whole.
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KEY BUSINESS PROFILES
Partners
Established:
2008
Profile:
Hardware & Software
Employees:
245
CEO:
Vahram Merangulyan
Market Share:
N/A
Contact:
www.iunetworks.am
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Executive Summary IUNetworks is an information Technology company that provides integrated solutions of hardware supply and software development. By applying practical innovation, strategic planning and knowledge management it is delivering tangible results for both the private sector and the public sector, i.e. state organizations.
Products & Services Electrical Engineering Supply and Distribution Software Development System
Game-Changing Solution IUnetworks introduced the concept of Single Electronic Window (SEW) in Armenia with the intention to simplify interactions between state bodies and minimize administrative burden for economic operators. Following up on their success in Armenia, IUnetworks has expaned its scope of operations to other countries, cooperating with international governments.
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KEY BUSINESS PROFILES
Partners
Established:
2014
Profile:
Shopping & Entertainment Center
Employees:
140
CEO:
Vazrik Sekoyan
Market Share:
73%
Contact:
www.yerevanmall.am
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Executive Summary Yerevan Mall is the largest mall in its size in Armenia. It has 60.000 sq/m area with 25.000 sq/m of leasing area and hosts a variety of more than 100 international brands. The company works in close partnership with franchise retailer ALHOKAIR Group with its world-renowned brands. It also works with Europe’s largest hypermarket chain Carrefour. With its subdivisions Kinopark Cinema and Captain Kids Treasure Island entertainment centers, Yerevan Mall became a favorite leisure destination for families.
Products & Services Ladies’ & Men’s Fashion
Electronics & Mobile
Coffee Shops
Accessories & Shoes
Entertainment & Music
Jewellery & Gifts
Optical & Sunglasses
Health Products & Cosmetics
Restaurants & Food
Game-Changing Solution Besides acting as a hub for shopping activities, Yerevan Mall is a family-oriented entertainment center with Captain Kid and Kinopark being its flagship sources of recreational activities for families.
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KEY BUSINESS PROFILES
Partners
Established:
2009
Profile:
Retail & Service of Luxury Watches & Jewellery
Employees:
42
CEO :
Gabriel Avetisyan
Market Share:
60% Watches, Jewellery 40%
Contact:
www.chronograph.am
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Executive Summary Chronograph boutiques are luxury multi-brand stores with the finest selection of highend watches, accessories and jewelry. Unparalleled competitive edge of the boutique is the biggest selection of luxury brands in Armenia and Georgia and also the provision of a professional service of maintenance and repair of premium jewelry and luxury goods that are represented in the boutique.
Products & Services Fine Swiss and German Watches Jewellery & Accessories Repair Service
Game-Changing Solution Chronograph was the first retail store of its kind—both in Armenia and the region—to offer luxury watches and jewelry from world-renowned brands.
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KEY BUSINESS PROFILES
Partners
Established:
2012
Profile:
Retail & Service of Watches & Jewellery
Employees:
300
CEO:
Arsen Mnatsakanyan
Market Share:
60% Watches, Jewellery 40%
Contact:
www.time.am , www.time.ge , www.time.by
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Executive Summary Timeless represents world-famous watches and jewelry brands in Armenia, Georgia and Belarus. Boasting a wide portfolio of watches for men and women, TIME stores cater consumer’s shopping needs by featuring watches and jewelry from renowned international brands.
Products & Services Watches Jewellery & Accessories Repair Service
Game-Changing Solution In addition to improving the market for mid-class watches and jewelry, TI’ME offers a premium service for its customers at an affordable cost, providing a unique customer experience that is otherwise found only at high-end stores.
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KEY BUSINESS PROFILES
Partners
Established:
2005
Profile:
Retail of Sportswear & Sportsgoods
Employees:
50
CEO:
Hayk Chilingaryan
Market Share:
20%
Contact:
www.megasport.am
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Executive Summary Megasport is a leading chain of retail stores for a full line of sporting goods. Megasport holds exclusive distribution and dealership rights for over 20 well-known European brands and offers sporting goods and equipment for a wide range of customers both in B2B and B2C markets.
Products & Services Sportswear Sports Equipment
Game-Changing Solution While there is a significant prevalence of sportswear brands in Armenia, Megasport is the first of its kind to offer professional, authentic sportswear and highly-specialized equipment for different sports (Olympic and otherwise).
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KEY BUSINESS PROFILES
Partners
Established:
2011
Profile:
Retail of Children’s Product
Employees:
30
CEO:
Anna Avetisyan
Market Share:
30%
Contact:
www.megatoys.am
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Executive Summary The company is a retailer of high-quality toys, games, child care products and kids’ furniture in the market, with strong portfolio of world known brands. We provide highquality entertainment and lifestyle products that are beloved by children and enjoyed by families.
Products & Services Toys & Games
Kids’ Furniture
Child Care Products
Outdoor Play
Game-Changing Solution Having children’s safety at heart, MegaToys is committed to selling only eco-friendly and high-quality toys and other children’s products.
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KEY BUSINESS PROFILES
Partners
Established:
1999
Profile:
Import & Distribution of Food Products
Employees:
291
CEO:
Aram Khachatryan
Market Share:
22%
Contact:
www.megafood.am
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Executive Summary The company is the largest importer and distributor of confectionery and food products on the local market. It gradually increased its volume and market share and widened its range of offerings by introducing new food products of world-known brands to the local market. The volume in 2017 reached 6800 tons.
Products & Services Confectionery & Chocolate, Cereals, Pulses and Other Commodity Products Food Ingredients, Food Service Products (HoReCa) Dairy Products
Game-Changing Solution Megafood was the first official importer and distributor of food products from famous brands in Armenia, causing a massive change in its industry by eliminating third-party resellers.
44
KEY BUSINESS PROFILES Established:
2005
Profile:
Entertainment & Hospitality
Employees:
120
CEO:
Hrach Martirosyan
Market Share:
N/A
Contact:
www.santafe.am
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Executive Summary One of the well-known open-air cafĂŠ-restaurants in Yerevan, SantaFe is located in the central district of the city, near famous monuments such as the Cascade and Opera House. The company recruits professionals from different countries and different culinary backgrounds to deliver the finest service and food.
Products & Services HD Quality Broadcasting of Sporting Events Wine & Bungalow Zone The Biggest & Most Exclusive Bar in Yerevan
Game-Changing Solution SantaFe was the first open air bar in Yerevan to build and incorporate ground fountains, a green zone, wine zone and children’s playground into its design.
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KEY BUSINESS PROFILES Established:
2017
Profile:
Hospitality
Employees:
40
CEO:
Hrach Martirosyan
Market Share:
N/A
Contact:
www.pahest33.am
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Executive Summary Located in the glamorous “Bohemian Area� of Yerevan, the new PAHEST 33 Bar Restaurant is the perfect place to go to on late evenings and enjoy fine drinks served by the best barmen in Armenia. It offers not only mouthwatering Armenian fusion cuisine, but also an impeccably curated music offering, with some fine turntable talent providing the soundtrack to your dining experience every night.
Products & Services International Cuisine
Live & DJ Music
Fusion Cuisine
The Biggest & Most Exclusive Bar in Yerevan
Game-Changing Solution Featuring a very conceptual design, PAHEST 33 is the first underground bar restaurant in Yerevan that deviates from conventional standards to offer a new perspective on what such an establishment ought to be.
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KEY BUSINESS PROFILES Established:
2019
Profile:
Hotel & Premium Residence
Perspective Employees:
120
Contact: www.teryan5.am
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Executive Summary Marriott Courtyard is a real estate development project encompassing a 75 meters tall 22 story building, in the heart of Yerevan. The building will house a well known Marriott Courtyard hotel with 173 rooms, as well as 75 luxury residencesin the top 11 floors. Amenities include 4 levels of underground parking, Spa, Gym and 24 hour room service. The building is first of its kind in Armenia to offer pre-build luxury apartments for sale as well as a fullservice for the residences.
50
KEY BUSINESS PROFILES Established:
2019
Profile:
Bakery Café Chain
Perspective Employees:
200
Contact: www.paularmenia.am
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Executive Summary First opened in 1889, PAUL has become a leading French family-owned artisan bakery serving a range of savoury products throughout the day. With a five generation family tradition of quality, flavour, heritage and integrity of ingredients, PAUL has gained a reputation of sourcing and producing the finest, highest quality products. With a presence in over 34 countries, PAUL currently has more than 620 shops operating worldwide. Armenia will be the latest country to open PAUL shops in the capital city of Yerevan, creating new benchmarks and bringing new quality into the Armenian market.
52
KEY BUSINESS PROFILES Established:
2019
Profile:
IT & Tech
Perspective Employees:
6000
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INNOVATION & TECHNOLOGY PARK
Executive Summary The park will develop and provide business infrastructure along with creating and supporting an “innovation ecosystem” that is made possible through a data center, research and development, acceleration and incubation centers, venture funds, prototyping facilities, and education. The park will become THE PLACE that is aiding, supporting and systematically creating Innovation across all verticals. Collectively, through worldclass facilities and systems, Innovation & Technology Park will essentially act as “its own district” - meaning that it will have it’s own financial and legal structure, as well as it will create pipelines in order to constantly support the ecosystem. As a result, the park will increase the capabilities of Armenia and the region.
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GALAXY GROUP IN THE SPOTLIGHT
WORLD-WIDE BUSINESS RELATIONS
A journey is best measured by friends 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.
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EU COUNTRIES
CIS COUNTRIES
USA CHINA
JAPAN
UAE
Sweden
Denmark
Norway
Netherlands
UK
France
Germany
Switzerland
Austria
Spain
Italy
Greece
Russia
TAIWAN
Ukraine
Bulgaria
Poland
USA
UAE
Japan
Taiwan
China
UNFOLD FOREWORD WELCOME TO GALAXY GROUP OF COMPANIES THE ADDRESS OF THE FOUNDERS COMPANIES UNDER GALAXY GROUP THE COMPANY OUR PORTFOLIO CORPORATE SOCIAL RESPONSABILITY OUR COMMUNITY SOCIO-ECONOMIC IMPACT ECONOMIC ACTIVITY IN NUMBERS
CORPORATE SOCIAL RESPONSIBILITY
58
PARTNERSHIPS FOR DEVELOPMENT
OUR MISSION
Our community helped us succeed and it is our mission to better the lives of those around us. There are people we haven’t been able to reach through our business initiatives. We hope to correct the course through our foundation.
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SOCIAL PROJECTS
Improving Lives and Communities Support for the underprivileged
EDUCATIONAL PROJECTS
Bringing Innovation to the Mainstream Talent cultivation, innovation to the educational system, equal opportunities for all
POLICY PROJECTS
Work for Impact Institutional mindset in ordinary things
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PARTNERSHIPS FOR DEVELOPMENT
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#BECAUSE WE CARE You may wonder why we do this. The answer is simple—because we care.
#BecauseWeCare was a 2019 year-end CSR project born out of a simple research on statistics. This was the first campaign that involved all the companies of the Galaxy Group of Companies. Within the scopes of the campaign, we visited more than 600 elderly people in 2 public & 5 private care centers in Yerevan and the regions. On December 25, over 100 of our teammates headed to seven different directions to communicate their warmth to our grandparents. Within the scopes of the campaign, a needs assessment was conducted for the private care centers and all the necessities for a year were provided. The campaign of care and warmth, however, did not stop there. We asked our community, our partners and followers to share their love, warmth and care with the elderly, dedicating their time to them not only on the New Year’s Eve but also throughout the year.
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PARTNERSHIPS FOR DEVELOPMENT
KEY PROJECTS & CAUSES
We believe that key partnerships with organizations whose mission is to better the lives of communities increases our impact and reach. Our partners make our impact possible. Each partner is unique in solving different segments: education, art, policies, etc. We are united to help our community.
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TEACH FOR ARMENIA
ARMENIAN STATE SYMPHONY ORCHESTRA
SEASIDE STARTUP SUMMIT
HOTEL INVESTMENT PLATFORM CEE & CAUCASUS
HR CONFERENCE
PECHA KUCHA
CREATIVE ARMENIA
NATIONAL CENTER OF ARMENIAN CARPET
ARMATHLABS
AYB SCHOOL
WORLD CONGRESS ON INFORMATION TECHNOLOGY
FOUNDATION FOR ARMENIAN SCIENCE AND TECHNOLOGY
64
PARTNERSHIPS FOR DEVELOPMENT
MAINSTREAMING CLASSICAL MUSIC
Galaxy Group of Companies and the Armenian State Symphony Orchestra will unite their efforts to make classical music more accessible. The launch of the partnership was also marked by the launch of the first joint project “People and Symphony�, involving more than 3,000 employees of 15 companies in Galaxy Group. Each person has their own contribution to the common cause, which is very valuable to us. It is important for us not only how people work but also how they organize their leisure. Thanks to the project, all members of Galaxy Group have the opportunity to receive tickets to all the ASSO concerts to visit with family, friends and loved ones. As a result of the cooperation, Galaxy Group of Companies and the ASSO plan to implement other ongoing projects targeting both the community and the general public.
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Partner:
Armenian State Symphony Orchestra
Start of the project:
February 2020
66
PARTNERSHIPS FOR DEVELOPMENT
HOTEL INVESTMENT PLATFORM CEE & CAUCASUS
POSITIONING & PROMOTING ARMENIA
HOTCO is the most prestigious event in Europe designed for the hotel development industry. Taking place in Budapest annually, the event gathers together around 400 decision-makers of the industry from around the world. We are honored to announce that Artyom Khachatryan, Co-Founder and Co-Chairman of Galaxy Group of Companies, was invited as a guest speaker at the conference to represent the industry developments in Armenia.
67
Partner:
Hotel Investment Platform
Start of the project:
January 2020
68
PARTNERSHIPS FOR DEVELOPMENT
SUPPORTING THE FUTURE OF WORK
The 8th Human Resources Management Forum became an effective platform for industry experts.More than 200 experts from Armenia, the United States, Poland, Germany, Austria, Malaysia, Jordan, Oman, Egypt, Lebanon, Kazakhstan and other countries presented their ideas and shared their experiences at the Forum. Through the joint efforts of the Cascade People & Business and the HR Association of Armenia, such a regional forum was organized in Armenia for the 8th time, and it was entitled “The Future of Work”. The forum’s main partners were the Galaxy Group of Companies and the VTB Armenia Bank. From the discussions involving the specialists and experts during 8th HR Regional Management Forum, it became clearer as to how the HR managers should prepare for the challenges of the century.
69
Partner:
Armenian HR Association
Start of the project:
September 2019
70
PARTNERSHIPS FOR DEVELOPMENT
SUPPORTING INNOVATIVE STARTUP PROJECTS
Galaxy Group of Companies and Startup Armenia Foundation will channel joint efforts into the implementation of innovation projects and support to startups. The cooperation established the bilateral commitment of the parties to invest continuous efforts in introducing innovation ecosystem in Armenia with the support of the startup community. The cooperation is grounded on the Innovation and Technology Park project announced by Galaxy Group of Companies earlier. Implemented jointly by Galaxy Group of Companies and its partners, the Innovation and Technology Park project aims at the creation of the first multi-industry Ecosystem in the region, where information technologies meet with the pivotal branches of the state economy to define the innovation modes of the next generation of goods and services, portraying Armenia and its innovative outlooks in the world.
71
Partner:
Startup Armenia Foundation
Start of the project:
August 2019
72
PARTNERSHIPS FOR DEVELOPMENT
SUPPORTING HUMAN-CENTRIC ARCHITECTURE
Do people design spaces, or does space design the people. How do we transform space into meaningful place? And how different is this human-centric approach from what we popularly perceive as architecture? These and other topics brought some 250 individuals, who are interested in architecture, to a PechaKucha night to listen to 10 presenters and special guests. The event was organized together with Galaxy Group of Companies, as part of the company’s social responsibility programs. During the discussion, the participants heard from the special guests: Marius Gomola, managing director of HOTCO, Stuart Rough, Broadway Malyan group chairman, Susanna Shamakyan, vice-president on partnerships, public policy and programs of FAST Foundation, Edgar Karapetyan, deputy CEO on strategy and business development of Galaxy Group of Companies, and Artak Knyazyan, co-founder and CEO of Archangel Architectural Studio.
73
Partner:
Pecha-Kucha Yerevan
Start of the project:
September 2019
74
PARTNERSHIPS FOR DEVELOPMENT
COLLABORATION FOR INNOVATIVE ARMENIA
The collaboration project with the Foundation for Armenian Science and Technology (FAST) aims to work out the concept of making Armenia the new center of innovation. By cooperating on the project, the parties first and foremost unite their efforts to transform one of the industrial districts of Yerevan into an “Innovation District�, adapted for technology and development companies, non-profit initiatives, educational and development institutes. It will become the future workplace for more than 6000 leading professionals which will lead the integration of IT and innovation into all the major industries in the country, including engineering, finance, banking, healthcare, insurance, agriculture, mining, media, and telecommunication, Galaxy Group of Companies informed.
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Partner:
FAST Foundation
Start of the project:
April 2019
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PARTNERSHIPS FOR DEVELOPMENT
MAINSTREAMING INNOVATION
Galaxy Group of Companies and Teach For Armenia educational foundation have signed an official memorandum of cooperation. This is a significant event in the domain of Public-Private partnerships in Armenia as the parties have committed to the implementation of long-term programs, encompassing a large spectrum of stakeholders aiming at the introduction of innovative outlook in the sphere of education. The first materials of the joint project resulting from the cooperation presented at the beginning of the 2019-2020 program year and all relevant materials will have public access for the accountability and transparency of the project.
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Partner:
Teach for Armenia
Start of the project:
2019
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PARTNERSHIPS FOR DEVELOPMENT
SUPPORTING NON-CONVENTIONAL ARTS
On April 26, 2019 the results of the «Art of Shadows» photography challenge were summed up in an event hosted by Ucom and «Creative Armenia» cultural foundation. More than 50 artists, filmmakers, calligraphists, designers and photography professionals were present at the event. The creative youth were honored with the presence of RA President Armen Sargsyan and his wife Nune Sargsyan. During the event the new platform of «Creative Armenia Network» was presented, the members of which – musicians, filmmakers, writers and other representatives of the creative community – got acquainted with a range of programs, challenges and scholarship possibilities applicable to them.Talented creators who have been awarded a scholarship by the «Creative Armenia» and the Armenian General Benevolent Union, as well as the winners of the East-West Residency program to visit Villa Empain in Brussels, have also participated in the event and shared their experience and success stories with each other.
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Partner:
Creative Armenia
Start of the project:
March 2019
FOREWORD WELCOME TO GALAXY GROUP OF COMPANIES THE ADDRESS OF THE FOUNDERS COMPANIES UNDER GALAXY GROUP THE COMPANY OUR PORTFOLIO CORPORATE SOCIAL RESPONSABILITY OUR COMMUNITY SOCIO-ECONOMIC IMPACT ECONOMIC ACTIVITY IN NUMBERS
OUR COMMUNITY
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POSITIONING THE GALAXY GROUP
COMMUNITY IN NUMBERS
active customers
83
800,000+
84
1,000,000
85
access to every 3rd family
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POSITIONING THE GALAXY GROUP
followers in Armenia
87
1,500,000+
88
POSITIONING THE GALAXY GROUP
DEMOGRAPHIC PROFILE
Demography
MEDIUM AND HIGH INCOME GROUP
18-55 YO
HIGHER EDUCATION
WOMEN 56.3%
76% MEN
44.7%
INTERNET AS THE PRIMARY SOURCE OF INFORMATION
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Behavior
SOCIALIZING:
URBAN POPULATION
active walking, purchase, public food centers
82%
46.3%
PAID EMPLOYEES (PRIVATE AND PUBLIC SECTORS)
CRITICAL MASS, CIVIL ACTIVISM
FOREWORD WELCOME TO GALAXY GROUP OF COMPANIES THE ADDRESS OF THE FOUNDERS COMPANIES UNDER GALAXY GROUP THE COMPANY OUR PORTFOLIO CORPORATE SOCIAL RESPONSABILITY OUR COMMUNITY SOCIO-ECONOMIC IMPACT ECONOMIC ACTIVITY IN NUMBERS
SOCIO-ECONOMIC IMPACT
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POSITIONING THE GALAXY GROUP
EMPLOYEES AND SALARY FUND
* 3.709 bln AMD PAID INCOME TAX
**
376,165 AMD
183,300 AMD
AVERAGE MONTHLY INCOME
AVERAGE MONTHLY INCOME
2,864
421,179
EMPLOYEES
EMPLOYEES
***
* RA: Republic of Armenia ** AMD : Armenian Currency-Dram *** Private sector
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POSITIONING THE GALAXY GROUP
Salary increase dynamics *
2018
2019
400,000 AMD 300,000 AMD 200,000 AMD 100,000 AMD 0 AMD
314,058 AMD
181,865 AMD
376,165 AMD
187,300 AMD
GALAXY RA
* 20% salary increase compared to the 3% in the RA
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POSITIONING THE GALAXY GROUP
Gender distribution
2,864 employees 56%
1,598
1,266
Men Women
44%
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POSITIONING THE GALAXY GROUP
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JOB PROFILE AND SALARY COMPARISON Galaxy Group of Companies is one of the most in-demand organizations of highly qualified workforce in Armenia.
Salaries based on company size
1-9 employees
138,280 AMD 95,679 AMD
10 - 49 employees
259,240 AMD 95,516 AMD
50 - 249 employees
291,997 AMD 90,569 AMD
> 250 employees
383,663 AMD 139,415 AMD 0
200,000 AMD
GALAXY RA
400,000 AMD
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POSITIONING THE GALAXY GROUP
Employee distribution
68%
Information and communication
1% Construction 2% Consultation 2% Security 4% Service 6% Real estate management
8% Retail
9% Wholesale
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Salary comparison
Construction
152,434 AMD 189,953 AMD
Consultation
402,446 AMD 191,748 AMD
Wholesale
355,515 AMD 130,640 AMD
Service
94,061 AMD 114,945 AMD
IT and Communication
431,121 AMD 441,589 AMD
Real Estate Management
364,234 AMD 150,000 AMD
Retail
207,791 AMD 130,640 AMD
Security
131,963 AMD 114,945 AMD 0
250,000 AMD
GALAXY RA
500,000 AMD
FOREWORD WELCOME TO GALAXY GROUP OF COMPANIES THE ADDRESS OF THE FOUNDERS COMPANIES UNDER GALAXY GROUP THE COMPANY OUR PORTFOLIO CORPORATE SOCIAL RESPONSABILITY OUR COMMUNITY SOCIO-ECONOMIC IMPACT ECONOMIC ACTIVITY IN NUMBERS
ECONOMIC ACTIVITY IN NUMBERS
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POSITIONING THE GALAXY GROUP
TAXES PAID IN 2019 Galaxy Group contributes to 1.01 % of the total taxes collected in Armenia.
Taxes paid by Galaxy Group
2018
2019
27,723,056 USD
31,210,558 USD
32 mln USD 31 mln USD 30 mln USD 29 mln USD 28 mln USD 27 mln USD 26 mln USD 25 mln USD
GALAXY
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Taxes paid in the RA
2018
2019
3.2 bln USD 3.1 bln USD 3.0 bln USD 2.9 bln USD 2.8 bln USD 2.7 bln USD 2.6 bln USD 2.5 bln USD
2,723,016,664 USD
3,097,073,179
RA
USD
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POSITIONING THE GALAXY GROUP
GDP IMPACT IN 2019 Acquisitions made by Galaxy Group from the local market amounted to USD 53 mln.
467,707 USD
Allocations to travel agencies Services
2,882,771 USD
Fixed assets
9,093,117 USD
Talent development
554,100 USD
Office goods & supplies
731,889 USD
Transport
987,965 USD
Banking and payment
1,395,623 USD
Rent
6,408,999 USD
Bills
4,456,311 USD
Marketing
2,712,790 USD 21,697,318 USD
Commercial 0
5 mln USD
10 mln USD
20 mln USD
RA USD 13.65 bln RA GDP
USD 53 mln consumption - 0.4%
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POSITIONING THE GALAXY GROUP
FINANCES & BANKING IN 2019 In 2019 the share in the total loans provided by Armenian banks amounted to 3.02%
Galaxy Group loan statistics 2019
2018 140 mln USD 120 mln USD 100 mln USD 80 mln USD 60 mln USD 40 mln USD 20 mln USD 10 mln USD 0 USD
134,605,661 USD
6,327,440 USD
Loans provided
128,044,927 USD
10,505,007 USD
Interest expense
5,521,159 USD
Bond *
* Interest on bonds totaled USD 207,000
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Loans provided by the banks **
2018
2019
3,865,600,665 USD
4,239,168,093 USD
4.3 bln USD 4.2 bln USD 4.1 bln USD 4.0 bln USD 3.9 bln USD 3.8 bln USD 3.7 bln USD 3.6 bln USD
Total loans in RA
** Non-commercial loans excluded
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@GalaxyGroupAM +374 11 50 00 03
1a Kievyan str. 0028 Yerevan, Armenia
Photo credits: © Copyright, Galaxy Group of Companies © Copyright, “Pale, Blue Dot“ NASA/JPL-Caltech © Copyright, Agape Grigoryan © Copyright, Christian Perner © Copyright, David Jorre © Copyright, Joanna Kosinska © Copyright, Joel Filipe © Copyright, Luca Bravo © Copyright, Scott Webb
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