Esterad Investment BSC : Press Release Q4 2022 – English-_English_-_BHB_-_v2_NM_(004)_-_FINAL

• ESTERAD Reports BD 2.2 million Profits for 2022"

Achieved 27% YoY Increase in Net Profit Attributable to the Shareholders

& Board Recommended Distribution of 6% Cash Dividend of the Capital

Esterad Investment Co. B.S.C. ''ESTERAD" (Trading code: ESTERAD) announced in its Board of Directors meeting on Monday, February 27th 2023, the financial results for the year ending on December 31st 2022.

As for the fourth quarter results, ESTERAD reported a net profit attributable to the shareholders of BD 1,233,103 compared to BD 668,477 for the fourth quarter of last year, an increase of 84%. Earnings per share during the last quarter amounted to 8.84 fils, compared to 4.79 fils in the same quarter last year. The increase in profits recorded in this quarter is attributed to the increase in the real estate and private equity portfolio returns. The total comprehensive income attributable to the shareholders amounted to BD 1,644,980 in the fourth quarter of 2022, compared to BD 125,555 in the fourth quarter of 2021, an increase of 1210%. ESTERAD achieved a total income of BD 1,862,544 during current quarter, compared to BD 1,203,371 in the last quarter of last year, an increase of 55%.

ESTERAD achieved a net profit for 2022 full year attributable to the shareholders of BD 2,161,278, compared to BD 1,707,221 last year, which indicates an increase of 27%. The basic earnings per share reached 15.50 fils, compared to 12.24 fils last year. The total comprehensive income for the period attributable to the shareholders for the year 2022 amounted to BD 2,097,956, compared to BD 1,074,532 for the previous year, an increase of 95%. Total income for the year amounted to BD 4,398,274 compared to BD 3,474,147 for the same period last year, an increase of 27%. This increase in net profit and total comprehensive income is primarily attributed to the increase in revenues from the company's real estate and private equity portfolios.

The total equity of the parent company's shareholders as at the end of December 2022 amounted to BD 35,501,813, compared to BD 34,240,946 as of December 2021, indicating an increase of 4%. The total assets at the end of December 2022 amounted to BD 53,601,286 compared to BD 50,300,119 as in December 2021, an increase of 7%.

Commenting on the financial results, Mr. Hisham Al Rayes, Chairman of the Board of Directors of Esterad Investment Co, said: "These results underscore the success of ESTERAD's new, transformative strategy and its continued operational resilience despite the challenging business environment.

ESTERAD recorded a 27% growth in net profit compared to the previous year, further demonstrating that we are on a positive growth trajectory. As we move into 2023 and our 50th year of service, we are focusing our activities to reposition the company with large strategic acquisitions that we believe will take ESTERAD to the next level.

He added: "ESTERAD expects that the strategic acquisition of a majority stake in Venture Capital Bank ("VCBank"), an Islamic wholesale bank licensed by the Central Bank of Bahrain ("CBB") will have a positive impact on the Company's financial position in the medium term and to develop new financial and commercial activities as we elevate ESTERAD and position the company to achieve sustainable success.

He concluded by saying, "The Board of Directors recommended to the next AGM the distribution of cash dividends of 6% of the capital, equivalent to 6 fils per share, subject to AGM Approval''.

Meanwhile, Mr. Ahmed Abdulrahman - CEO, added, "ESTERAD achieved positive results attributable to a continued focus on strengthening core-performing investments and identifying new income generating investments in opportunistic

sectors and we look forward to maintaining this growth momentum in the coming years''.

About Esterad Investment Co. B.S.C. (ESTERAD)

Esterad Investment Co. B.S.C. ("ESTERAD"), is one of the oldest, and a leading investment firm in the Kingdom of Bahrain. Established in 1973 and listed on the Bahrain Stock Exchange, ESTERAD has pioneered the setting of key national projects and industries and has a long and proven track record of secure investments in a variety of assets, regionally and internationally. These include Saudi Cement Co, now the largest cement production company in the Kingdom of Saudi Arabia; Balexco, the first privatisation by the Government of Bahrain; and the Bahrain Livestock Firm, amongst many other notable investments. ESTERAD investment divisions include Real Estate, Private Equity and Public Market investments. The company invests proprietary capital across a broad spectrum of real estate investments in lucrative locations and sought-after destinations. The company also leverages extensive experience and expertise in multi sector private equity, investing in diversified industries including Cement, Aluminum, Retail, Infrastructure and Technology across the GCC. ESTERAD'S Public Instruments division invests capital in both equities and fixed income securities in Bahrain, regionally and internationally.

With an ambition rooted in transformative investments in Bahrain and beyond, ESTERAD'S world class management team select investments based on stringent risk parameters, and the value it will add to both shareholders, and the economies and societies in which we operate and serve.

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