Ithmaar Holding B.S.C — Interim / Quarterly Report 2021

Aug 14, 2021

Detailed analysis of accumulated losses

Date:	12 August 2021
Listed Company Name:	Ithmaar Holding B.S.C.
Define the period of the financial	Interim Financial information Q2 2021
statements
Accumulated losses:	USD 829.0 million
Accumulated losses to capital	109%
ratio:
The main reasons leading to these	The accumulated losses before reorganization amounted to 68.8% in
accumulated losses and their	December 2016. These represent mainly impairment provisions resulting
history:	from non-core investments as a result of financial crises.
	During 2018, the Company early adopted FAS30 (AAOIFI equivalent of
	IFRS9) which resulted in additional impairment provisions and
	consequently increased the accumulated losses percentage to 98%.
	During 2020, the accumulated losses increased by \$87.5 million mainly due
	to impact of Covid-19. During Q2 2021, the accumulated losses decreased
	by \$4.8 million mainly due to net income attributable to shareholders.
Measures to be taken to address	The Board of Directors is working on various initiatives to improve the capital,
accumulated losses:	which will strengthen the Company's consolidated equity, including sale
	and/or restructuring of non-core assets, subject to further review,
	negotiations and necessary regulatory approvals.

Authorized to signatory

h القابضة Recipe Chinan Holding &

شركة الإثمار القابضة ش.م.ب.، ص.ب ٢٨٢٠، برج السيف، ضاحية السيف، مملكة البحرين هاتف: ٩٧٣١٧٥٨٤٠٠٠ فاكس: ٩٧٣١٧٥٨٤٠١٧ البريد الإلكتروني: info@ithmaarholding.com Ithmaar Holding B.S.C., PO Box 2820, Seef Tower, Seef District, Kingdom of Bahrain Tel +973 1758 4000 Fax +973 1758 4017 Email info@ithmaarholding.com مرخص من قبل مصرف البحرين الركزي كشركة استثمارية فئة ١ Licensed as an Investment Firm Category 1 by the Central Bank of Bahrain