Kuwait Investment K S C P : Transcript of the Analysts Conference

Minutes of the analysts' conference for the first Second Quarter 2023

Kuwait Investment Company

Announcing the financial results for the quarter ending on 30/06/2023

Wednesday 09/08/2023

Minutes of the analysts' conference to announce the financial results of the Kuwait Investment Company (K.S.C.P), held on Wednesday 09/08/2023 at 01:00 (Kuwait time)

Participants from the Kuwait Investment Company

Conference management

Mr. Ahmed El-Shazly - EFG-Hermes

Minutes of the analysts' conference for the first Second Quarter 2023

Speaker 1 (Abdullah AbulQassim):

Good evening, this is Abdullah AbulQassim from Kuwait Investment Company's Investor Relations Unit. Welcome to the online analyst conference for the Kuwait Investment Company's second quarter of 2023.

Present with us today are Mr. Hany Elnowaihy, the chief financial officer CFO of Kuwait Investment Company, along with Mr. Faisal AL-Meshari, the Assistant General Manager for Direct Investments and Corporate Finance, and Mr. Emad Tifouni, the Assistant General Manager for Asset Management.

We will review the financial performance indicators of the company during the second quarter of 2023.

Please be informed that any future projections or prospects that might be discussed during the conference do not imply any guarantees or recommendations regarding the company's future performance.

During the conference, you may submit your inquiries in the question box provided within the program. And Inshallah we will address these inquiries at the conclusion of the conference . Next, we will proceed to Mr. Hany, chief Financial Officer (CFO) of the company to present the financial data.

Speaker 2 (Hany Elnowaihy):

Thank you Mr Abdullah. Good evening everyone. The Kuwait Investment Company which was established in 1961 is the first and the foremost investment firm in Kuwait and the entire Gulf region. It engages in all investment activities in private companies including asset management sector, among others.

Our company manages a significant amount of assets under management with 62% ownership primarily belonging to the Kuwait Investment Authority.

Minutes of the analysts' conference for the first Second Quarter 2023

Our operations cover managing assets for external clients and our own company and we have various activities including direct investments, corporate financing, online trading, market maker, and treasury-related activities.

Our investment strategy prioritizes long-term goals and emphasizes prudent policies, carefully considering calculated risks to safeguard the funds of both shareholders and clients. Our ultimate aim is to grow these funds.

For us, the amount of the assets owned by the company exceeds USD 800 million, the amount of the assets under management is USD 6.2 billion and the client base exceeds 2,000 clients. By reviewing the financial data presented, we can see positive revenue growth up to June 30, 2023.

The comparative revenue amount is KWD 4.5 million while it has risen to KWD 14.2 million at June 30, 2023.

We have slight increase in expenses because of heightened interest rates on a global and local level, leading to higher expenses.

In the past, we experienced losses in the comparative period, at a consolidated level, but we are now pleased to report a profit surpassing 5 million dinars.

Earnings per share for the first half of the year are six and a half fils per share. We experienced a slight decline in the value of assets owned by the company.

Our equity has risen after we distributed 5% cash dividends to our shareholders for the year 2022.

Speaker 1 (Abdullah AbulQassim):

We have come to the conclusion of the presentation and will now open the floor to any inquiries from the audience, although it appears that there are none. We express our gratitude to all who have attended. Thank you.