Esterad Investment BSC : Press Release Q2 2022 – English

Esterad Achieved H1-2022 Net Profit Attributable to the

Shareholders of BD 564 Thousand

"Esterad Announces Q2-2022 and Half Year 2022 Financial Results"

Esterad Investment Company B.S.C (Trading Code: ESTERAD) announced its financial results for the three months ended 30 June 2022, including the financial results for the first half of 2022 in its Board of Directors meeting convened on Thursday, 11 August 2022.

For the three months period ended 30 June 2022, Esterad reported a net profit attributable to the shareholders of BD 314,147, 41% lower than BD 532,954 reported for the same period last year. Earnings per share amounted to 2.3 fils, against 3.8 fils achieved in the same quarter last year. The total comprehensive income attributable to the shareholders is reported as loss of BD 190,789 against gain of BD 477,337 for the same period last year. Esterad achieved a total income of BD 997,453, 21% higher than BD 825,390 achieved for the same period in 2021. The income was impacted by the fair value losses amounting to BD 412,624 (2021: fair value profit of BD 77,645).

For the six months period ended 30 June 2022, Esterad achieved a net profit attributable to the shareholders of BD 564,319, 23% lower than BD 733,663 recorded in the same period last year. Earnings per share was 4.1 fils against 5.3 fils for the same period last year. The total comprehensive income attributable to the shareholders was BD 122,931, 85% lower than BD 839,009 achieved in the same period last year. The Company has achieved total income of BD 1,778,110 for the first six months of 2022, 16% higher than BD 1,537,167 achieved in the same period last year. The higher income has been affected by the fair value losses of BD 617,440 (2021: BD 32,808). The reduction in the Company's income and profitability reflects the impact of extreme geopolitical conditions and prevailing high rate of inflation in most economies, leading to decline in global financial markets and investment valuations.

Total shareholders' equity attributable to the shareholders at 30 June 2022 is reported as BD 33,537,565, 2% lower than BD 34,240,946 at 31 December 2021. The Company has reported total assets of BD 49,398,979 at the end of June 2022, 2% lower than BD 50,300,119 as reported at 31 December 2021.

The Chief Executive Officer of the Company Mr. Ahmed Abdulrahman stated his satisfaction on the overall Company results. He mentioned that, "We are pleased with the continued profitability of the Company in the light of exceptional economic challenges in the markets due to supply chain disruptions and high rate of inflation. We are working towards balancing the heightened risk with investments in sectors perceived as risk averse. During the last quarter the Company has taken majority stake in the country's most iconic preschool. The Company shall continue to diversity its sources of revenue. The Company is also making good progress in the completion of its Amwaj Beachfront project where it has launched show villas. These villas highlight the best residential experience including unique access to its private beach".

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