A'ayan Leasing and Investment K S C P : Transcript of the Analysts Conference

Transcript of the analysts' conference of the financial results of A'ayan Leasing and Investment Company for Q2 For the year ending on 31/12/2023.

Ahmed El-Shazly- EFG Hermes:

Good afternoon, everyone and welcome to A'ayan Leasing and Investment's 2Q 2023 results conference call. This is Ahmed El-Shazlyfrom EFG Hermes. And it's a pleasure to have with us on the call today from A'ayan's management, Mr

Abdullah Mohammed Al-Shatti, CEO, Mr Seyed Abu Thahir, Assistant CEO - Finance and Financial Planning, and Mr Abdullah Abu Hadedah, Assistant CEO - Investment and Corporate Finance.

I now hand over the call to Mr Abdullah Abu Hadedah to start with the presentation. Thank you.

Abdullah Abu Hadedah		Thank you. As-salamu alaykum wa rahmatullahi wa barakatuh.
- Aayan:
		Good afternoon, everyone. Thank you for joining us today to cover A'ayan Leasing
		and Investment Company's 2023 2nd Quarter financial results.
		In today's presentation, our CEO Mr. Abdullah Al-Shattiwill shed some light on the
		company's most recent developments and financial highlights. Afterwards, Mr.
		Seyed Abu Thahir, our Assistant CEO - Finance and Financial Planning will take
		you through the details of our financial results. This shall be followed by a Q&A
		session.
		Please note that we only can comment on questions and information that has been
		publicly disclosed. In addition, the presentation will be available on our website.
		Please feel free to send any follow-up questions to our Investor Relations email.
		Before we start, I would like to bring your attention to the disclaimer on Slide # 3.
		We would like to bring your attention with respect to the forward looking statements
		and confidential information.
		On the next slide, we can see the Board of Directors and Executive Management
		team.
		Now, I would like to hand over the presentation to my colleague, Mr. Abdullah Al-
		Shatti.
Abdullah Al-Shatti -		As-salamu alaykum wa rahmatullahi wa barakatuh.
Aayan:
		I would like to welcome you to this conference. It is a pleasure for me to present
		Q2-2023 highlights and developments.
		We are continuing our strategy and building on the Group's 3 pillars:
		Leasing; in which our subsidiary, one of the leading operating lease companies in
		Kuwait, has been outperforming with its exceptional achievement and the
		Investment; After our final debt settlement with creditors, we have focused on
		restrengthening our direct investments sector by expanding into various
		opportunities to enhance our shareholders' value. In Real estate; with its excellent
		returns, adding value constantly and improving A'ayan's profitability.
		If we go to the next slides, we can see a snapshot on our performance this for the
		first six months, which is a clear indication of the successful implementation of the
		approved strategy of rebuilding our direct investments sector and expanding in
		operating lease fleet.

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Transcript of the analysts' conference of the financial results of A'ayan Leasing and Investment Company for Q2 For the year ending on 31/12/2023.

You can see that our total income has increased by 40% in the first half of the year 2023 compared to the same period last year, reaching KD 13.2 million. In addition, profit attributable to the equity shareholders of A'ayan for the first half of 2023 has reached KD 6.8 million as compared to KD 4.5 million during first half of 2022, with a growth of 51%. Furthermore, earnings per share have reached 10.28 Fils per share during the first half of year 2023 against 6.42 Fils during first half of year 2022. There has been an increase of 60% in Earnings per share.

I would like to go through the snapshot for the financial position. The total assets were KD 139.5 million during last year as of June 2022 and it has increased to KD

150.9 million with an increase of around KD 11.4 million in the first half of 2023, with an 8% growth level. This is mainly due to the investment acquisition in associates and the investments in financial assets at fair value through profit or loss, along with increase in operating lease fleet.

In terms of the liabilities, KD 39.7 million was reported as on 30th June 2022 which has now become KD 46.7 million, with an increase of 18%. This is mainly from utilizing KD 10 million during 2022 out of total KD 20 million facility.

In terms of equity attributable to equity holders of A'ayan, KD 87.4 million was reported as of 30th June 2022, and as of 30th June 2023, it has increased to KD

92.5 million with an increase of 6%. This increase is mainly due to net profits during the period after netting off cash dividends during the current year.

During H1 2023, we have distributed 7.5 Fils per share (at a total of approximately KD 5 million) as cash dividends for the 2022 financial year, as approved in the shareholders AGM.

We have been exploring and evaluating various opportunities across different industries to rebuild and further strengthen our investment and real estate portfolios.

In addition, we have only utilized half of the financing facility of KD 20 million that has been granted to our fully owned subsidiary. Still, we have around KD 10 million, which can be utilized.

This is in a nutshell of Aayan's performance for H1-2023 and its financial position as on 30th June 2023.

Now, Mr. Seyed Abu Thahir will continue the presentation to provide the detailed insights of financial results and financial position of Aayan.

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Transcript of the analysts' conference of the financial results of A'ayan Leasing and Investment Company for Q2 For the year ending on 31/12/2023.

Seyed Abu Thahir - Aayan:

Thank you, Mr Abdullah Al-Shatti.

As-salamu alaykum wa rahmatullahi wa barakatuh. Good afternoon, everyone.

First of all, I would like to welcome you all, to the analyst conference on the Q2- 2023 earnings. We would like to present A'ayan's Q2 and H1 performance

highlights, noting that the interim condensed financial statements have been uploaded on A'ayan's website as well on the Boursa Kuwait portal .

Now, let me take you through the snapshot of the results for Q2 and H1 2023 in comparison to the same periods last year. In terms of the net profit attributable to A'ayan's equity shareholders, we have reached KD 3.9 million in Q2 2023 as compared to 2.3 million in Q2 2022, with a growth of 69%, and KD 6.8 million in H1 2023, up by 51% from KD 4.5 million in H1 2022.

In terms of EPS, we reached 5.85 Fils per share during Q2 2023 against 3.33 Fils per share in Q2 2022, and 10.28 Fils in H1 2023 in comparison with 6.42 Fils in H1 2022. There has been an increase in EPS by 76% and 60%, respectively. The reason for increase in the growth rate as compared to the net profit by 10% is mainly due to the capital reduction from KD 71 million to KD 66 million which took effect on 15 May 2022.

On the total income analysis by segment, Alhamdulillah, all the sectors have reported a positive increase as compared to the previous year. The investment sector's income is up by 126%, which is followed by leasing with 16% and by real estate with 6%. As Mr. Abdullah Al-Shatti has explained in the previous slides, this shift is in line with our strategy plan moving forward.

In terms of the income contribution by segment, there is an increased share of contribution from the investment sector by 14% in the H1 2023 as compared to H1 2022.

I would like to go through the financial position on the next slide.

The total assets were KD 139.5 million on 30th June 2022 which increased to KD

150.9 million with an increase of around KD 11.4 million with an 8% growth rate. This is mainly due to investment acquisition in associates and investments in

financial assets at fair value through profit or loss along with operating lease assets portfolio.

In terms of the liabilities, it was KD 39.8 million as reported on 30th June 2022 which increased to KD 46.7 million on 30th June 2023, mainly due to KD 10 million which has been utilised out of the total KD 20 million financing facility.

In terms of the equity attributable to A'ayan's equity holders, KD 87.4 million was reported as of 30th June 2022 and KD 92.5 million as of 30th June 2023, after 5 million KD cash dividends as approved during Q1-2023.

In terms of book value per share, 132 Fils on 30th June 2022 has reached to 139 Fils per share as on 30th June 2023, after 7.5 Fils cash dividends per share.

We have reached the next slide where we can see the consolidated income statement.

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