Esterad Investment BSC : Press Release Q1 2022 – English

"ESTERAD" Achieves a 25% Increase in Net Profit Attributable to the Shareholders for the 3 months ended 31st March 2022

Esterad Investment Company BSC (Trading Code: ESTERAD) announced at a meeting of its board of directors yesterday the financial result for the three months ended March 31st, 2022.

Esterad achieved a net profit attributable to the shareholders of BD 250,172 compared to BD 200,709 for the same period of previous year, representing an increase of 25%. Earnings per shares were 1.79 fils compared to 1.44 fils in the previous year. The increase in net profit is due to income on real estate assets during the period.

The total comprehensive income attributable to the shareholders for the three months ended 31st March 2022 BD 313,720 compared to total comprehensive income of BD 361,672 of last year. representing a decrease of 13%. The decrease in total comprehensive income is attributed to the decrease in investment prices during the first quarter of 2022.

The total shareholders' equity attributable to the shareholders as of end of March 2022 BD33,728,354 compared to BD34,240,946 as of 2021 financial year-end, recording a slight decrease by 1%. The total assets by the end of March 2022 reduced to BD47,901,775 compared to BD50,300,119 as of end of December 2021, a decrease by 5%.

Total income for the three months period was BD 575,841 compared to BD 601,324 for the corresponding period last year, representing a decrease of 4%.

Commenting on these results, Mr. Hisham Al Rayes, Chairman of the Board of Directors of Esterad Investment Company, said: "We are pleased to achieve the goals set according to the business plan in the first quarter of 2022, and this comes in conjunction with our focus on the strategic acquisition of Venture Capital Bank © (VCB), where the approval of the shareholders of Esterad and VCB has been obtained for the acquisition and we are now in the process of obtaining final approvals from the regulatory authorities. This acquisition is considered a turning point for Esterad through the emergence of a group of new commercial and financial activities for the company, which will create investment opportunities. This acquisition will contribute to the development and growth of the company's business and the development of its sources of income by entering, the asset management business in the Kingdom of Bahrain and the Kingdom of Saudi Arabia through the affiliated company of VCB. It will directly reflect on Esterad and its shareholders. In conclusion, I thank the Central Bank of Bahrain for its support this strategy and I would also like to thank the shareholders and the Board of Directors of Venture Capital Bank (c) for sharing this vision, which will be positively reflected on all our stakeholders.

Mr. Ahmed Abdulrahman, CEO, added: "We are pleased to start 2022 with strong results, despite the impact of inflation and geopolitical conditions on asset prices, which resulted in fluctuations in the financial markets, but we were able to achieve positive results. During the first quarter of 2022 as a result of the company's strategic direction through diversifying sources of

income while maintaining cost management, this was reflected in an increase in net profits by 25% compared to the same period last year."

As for the Amwaj Beachfront project, work is in full swing, and a 65% completion rate has been reached for the first phase till 31 March end, as a real estate developer license was obtained for the project during the quarter, the process of initial reservations and sales began, and it is expected that this will be reflected positively on our financial statements during the year.

Note: The press release and the full financial statements are available on Bahrain Bourse's website.