ASE Main Dividend Distributing Companies

Transcription

1 ASE Main Dividend Distributing Companies Amman, January 27, 2013 Report prepared by: Feras H. Musmar Senior Research Analyst Awraq Investments Sa ad M. Hudairi Research Analyst Awraq Investments 1/27/2013 1

2 Top ASE Dividend Names Name Ticker Sector Last Price Avg. Traded Volume *All companies pay dividends on an annual basis, prices and other indicators as of January 20 th *Source: Amman Stock Exchange (ASE), Companies Financials Trailing EPS P/E (x) P/Bv (x) Return on Equity Return on Assets Dividend Yield (%) Free Float Jordan Duty Free Shops JDFS Commercial Services % 24.39% 9.52% 9.090% Irbid District Electricity Company IREL Utilities and Energy % 3.1% 9.00% % Al-Eqbal Investment Company EICO Tobacco and Cigarettes , % 31.98% 8.27% % Jordan Ahli Bank AHLI Banks , % 0.90% 8.18% % Arab Banking Corporation ABCO Bank , % 1.17% 7.61% 9.643% Al Dawliyah For Hotels & Malls MALL Hotels and Tourism , % 5.5% 7.21% % Arab Jordan Investment Bank AJIB Banks , % 1.47% 6.90% 20.04% Invest Bank INVB Banks , % 2.02% 6.78% % Jordan Telecom Group JTEL Technology and Communication , % 13.60% 6.69% 7.120% Cairo Amman Bank CABK Banks , % 1.80% 6.39% % Jordan Kuwait Bank JOKB Banks , % 1.87% 6.35% % Bank Of Jordan BOJX Banks , % 1.84% 6.28% % Arab Potash Company APOT Mining and Extraction Industries , % 19.13% 6.26% 2.144% Arab international company for Edu. AIEI Educational Services , % 14.47% 5.83% % Jordan Electric Power Company JOEP Utilities and Energy , % 1.67% 4.75% % Bank Al-Etihad UBSI Banks , % 0.51% 4.14% % Jordan Islamic Bank JOIB Banks , % 1.20% 3.75% % Jordan Phosphate Mines JOPH Mining and Extraction Industries , % 16.58% 3.25% 9.065% 2

3 Companies Nine Months 2012 Performance * All financials are up to Q unless noted. Source : Companies financials Net Income (9m- 2012) Net Income (9m- 2011) Net Income Growth JDFS (Full Year 2011) 8,500,901 11,825, % IREL (H1 2012) 3,378,453 2,243, % EICO 19,263,842 16,510, % AHLI 18,380,784 18,210, % ABCO 7,730,000 9,560, % MALL 2,627,064 2,108, % AJIB 11,725,309 9,445, % INVB 8,250,000 3,630, % JTEL 62,245,627 65,270, % CABK 25,293,791 26,809, % JOKB 41,706,439 32,888, % BOJX 28,560,000 27,460, % APOT 167,442, ,064, % AIEI (H1 2012) 8,186,616 6,853, % JOEP 8,425,683 7,933, % UBSI 9,662,378 12,016, % JOIB 28,340,000 21,070, % JOPH 113,452, ,981, % 3

4 Jordan Duty Free Shops (JDFS) Jordan Duty Free was founded in 1997, with the opening of the first shop in Jordan s capital Amman. Evolving from a locally focused outlet into one of Jordan s top public shareholding companies, JDF grew to operate sixteen duty free shops in Jordan. JDF shops are strategically located at the kingdom s land and sea borders, to serve both arriving and departing travelers; focused on meeting customers retail shopping needs. The latest financial statements released showed net income close to JOD 4.08 million in H1 2012, a drop of 10.5% compared to the same period in the previous year. This drop was mainly due to the decrease in sales which amounted to JOD 17.7 million in H compared to JOD million in H1 2011, a drop of 19%. To understand the reason of the drop we need a further understanding of the company s sales structure; the duty free shops are distributed in several areas in Jordan, while most of the shops reported increase in sales, the shops that are located at the northern borders of Jordan (the Syrian-Jordanian borders) witnessed a drop of around 70% in sales, due to the political events occurring in Syria which severely affected the movement of goods and travelers between the two countries, which was the main reason behind the drop in total sales. JDFS has a constant dividend distribution policy of distribution 100% of capital which the company maintained through out the period ( ), Even though the company s net income dropped, we believe the company will be able to maintain its dividend policy this year also. Our main concern for JDFS is that the company is rarely traded, where its average daily volume for the last 12 months amounted to 457 shares only. Current Price Capital 7,500,000 Market Cap 79,500, Week High Week Low Months Return (%) (7.89%) Dividend Yield (%) 9.52% Free Float (%) 9.09% Average Traded Volume

5 Irbid District Electricity Company (IREL) The company was originally formed in year 1957 to generate and distribute electricity, but in year 1997 ceased all generating activities and focuses plainly on purchasing generated energy then distributing and selling energy to consumers based on the area assigned to the company according to the concession granted by the government. The company s concession area covers 26% of Jordan. The company s operations are similar to JOEP (mentioned before in this report), but while JOEP s area of concession covers the capital Amman and districts near it, IREL s area covers Irbid, Jarash, Mafraq and Ajloun districts. Therefore the company also wasn t affected by the increase in electricity generations costs. The company s revenues witnessed an increase of 18.5% to reach JD 68 million during the first nine months of 2012, while the net income of the company reached JD 3.38 million, compared to JD 2.24 million. Current Price Capital 6,000,000 Market Cap 60,000, Week High Week Low Months Return (%) (16.67%) Dividend Yield (%) 9.00% Free Float (%) % Average Traded Volume 570 The company s dividend payments has been volatile throughout the past four years reaching as high as 150% in 2009 and then dropping to 90% in 2011, variations in distributions was due to volatility of net income. Due to the increase witnessed in net income and the company s history in dividend payments we believe this year the company will at least be able to pay 90% as last year. Similar to JDFS, the company s average traded volume is low, where the average traded volume for the last 12 months amounted to 570 shares only

6 Al Eqbal Investment Company (EICO) Al-Eqbal Investment Company manufactures and sells molasses (flavored tobacco) branded as Al-Fakher, which is one of the top selling brands of molasses in the region. The company used to manufacture and sell cigarettes through its subsidiary International Tobacco and Cigarettes Company but sold the company in 2011 to Philip Morris due to unprofitable operations. EICO witnessed improved margins after the sale in addition to providing the company with a gain of JD 4.96 million. Although revenues of the company dropped to JD million in the first nine months of 2012 (compared to JD million in the previous year), the company s focus on improving the efficiency of its operations was clearly reflected in the improvement of its gross profit margin which increased from 31.2% to 41%. Also the net income of the company has slightly dropped to JD million from JD 16.51, but this was due to an abnormal gain the company observed during year 2011 after selling its tobacco company. If we exclude the affect of the sale we can see that the company s EBT has increased by about 39%. The company s dividend payout has been increasing throughout the last four years, were the company distributed 30% in 2008 and then gradually increased to reach 100% in However, last year the company was initially planning to distribute 75% as cash dividends and 25% stock dividend but due to the demand of investors it ended up paying 100% cash dividends. This year the company is planning to pay 100% cash dividends and distribute 25% as stock dividends. Current Price Capital 20,000,000 Market Cap 241,800, Week High Week Low Months Return (%) 86.29% Dividend Yield (%) 8.27% Free Float (%) % Average Traded Volume 6,

7 Jordan Ahli Bank(AHLI) Jordan Ahli Bank (previously Jordan National Bank) is a leading Jordanian institution which was established in 1955, the bank has a regional presence in Lebanon, Palestine and Cyprus. Net credit facilities increased in the first nine months of 2012 by 10% compared to last year reaching JOD 1,289 million which constitutes about 63% of deposits. This increase in facilities was the direct reason of the increase in interest income which increased by about 10% for the same period. AL-Ahli bank net profit slightly increased by 1% compared to the same period last year were it reached JOD million even though net credit facilities and interest income increased significantly. The increase in facilities and interest income did not make a huge impact on net income because of the increase in provision for doubtful debts which rose by around 12% comparing to the first nine months of the previous year. The bank has increased its capital from JOD million in Q to JOD million, an increase of around 15%. The bank has been consistently distributing 10% cash dividends in the past years from 2008 to 2011 and it seems that the bank has a stock dividend policy in which it is committed to, meaning the bank will most probably distribute 10% this year as well. Current Price 1.26 Capital 150,000,000 Market Cap 186,000, Week High Week Low Months Return (%) (8.70%) Dividend Yield (%) 8.18% Free Float (%) % Average Traded Volume 65,

8 Arab Banking Corporation(ABCO) Arab Banking Corporation was incorporated in Jordan in 1990 as a Jordanian public shareholding company. It is a member of the Arab Banking Corporation Group, one of the largest Arab international banks with its head offices in the Kingdom of Bahrain and with branches and offices in all parts of the world. Arab Banking Corporation (Jordan) performs all banking operations at its head office in Amman and its 25 branches and 49 automatic teller machines (ATMs) in all parts of the Kingdom. The Arab banking corporation Q3 statements revealed a decrease in net profit as they dropped 19% compared to the same period last year and amounted to JD 7.73 million. The main reason behind the drop was a significant increase in the provisions for doubtful debts which were reported at JOD 3.38 million compared to Q which were JOD 1.6 million, an increase of 107%. ABC bank has been increasing its capital over the years, increasing from JOD 34.5 million in 2005 to reach JOD 100 million in 2012 through stock dividends except last year where the bank increased its capital through private placement and distributed 9% cash dividends; which was the first year the bank distributes cash dividends in the past five years. Therefore under the light of the drop in profitability the bank witnessed during the year it is uncertain that the bank will distribute cash dividends this year, nevertheless the bank offers an attractive dividend yield of 7.75%. Current Price 1.06 Capital 100,000,000 Market Cap 104,000, Week High Week Low Months Return (%) 2.04 Dividend Yield (%) 4.95% Free Float (%) 9.643% Average Traded Volume 11,

9 Al Dawliyah For Hotels & Malls (MALL) Al Dawliyah for Hotels and Malls PLC is a Jordan-based public shareholding company which goals cover construction, development, operation, sale, and rent of hotels for its own account or for the account of other parties. The Company currently owns and operates Amman Sheraton Hotel, a five stars hotel located in the capital Amman. In the first seven months of 2012, tourism revenues in Jordan increased 17% to JD 1.5 billion. While total visitor numbers declined 6% to 3.79 million tourist, the total number of overnight visitors increased 6.1% to 2.46 million tourist, this has favorably affected revenues of most hotels in Jordan, MALL s Sheraton was no exception where it reported an increase of 24% in net income where it amounted to JD 2.63 million in the first nine months of 2012 under the light of increases in the hotel s revenues. Current Price 1.04 Capital 43,200,000 Market Cap 44,928, Week High Week Low Months Return (%) 22.35% Dividend Yield (%) 7.21% Free Float (%) % Average Traded Volume 17,420 MALL has a dividend policy were it commits to paying sustainable cash dividends over time. The company s cash dividends has increased from around 6% in years 2008 and 2009 to 7% in

10 Arab Jordan Investment Bank (AJIB) The Arab Jordan Investment Bank (AJIB) was founded in 1978, to become the first investment bank in Jordan. It offers a wide variety of investment, commercial and private banking products and solutions. AJIB reported a remarkable increase in net income of 24% in Q3 2012, where net income amounted to JOD 11.7 million compared to the same period which reported JOD 9.45 million. Even though provisions for impairment increased by about 36%, net income maintained its growth due to increasing interest income and commission income, combined with a substantial drop in other provisions which dropped from JOD 3.3 million to JOD 0.16 million, a drop of 95%. The bank witnessed changes in the structure of its loan portfolio, government loans increased from JOD million to JOD million, an increase of over 150% and which constitutes 24% of total loans, while retail loans increased by 32%. The overall loans portfolio have increased by 20%, making the bank s loan to deposit ratio increase from around 62% to 73.7% by the end of Q The bank has continuously distributing cash dividends, increasing from 8% in 2009 to 10% in 2010 and Current Price 1.45 Capital 100,000,000 Market Cap 145,000, Week High Week Low Months Return (%) 7.41% Dividend Yield (%) 6.90% Free Float (%) 20.04% Average Traded Volume 9,

11 Invest Bank (INVB) The Invest Bank started its activities in 1982 under the name Jordan Investment and Finance Company with an authorized capital of JOD 6 million, the bank transformed into an investment bank in year 1989 and grew significantly from then, where it now has the paid up capital of JOD 100 million. The bank had an important role in establishing Jordan Duty Free Shops (JDFS) one of the largest market caps in the ASE - and currently owns 10% of the company. The bank s profitability has increased notably during 2012, where the bank reported a net income of JOD 8.25 million during the first nine months of 2012, more than double the profits of JOD 3.63 reported in the same period last year. Aside from a slight growth in interest income, provisions taken for impairment of credit facilities dropped to JD 509 thousand compared to JOD 14 million taken in the first nine months last year, which implies the bank might take additional provisions in the upcoming periods. Also the bank sold lands and buildings it used to own to move to a new location, which resulted in gains of JD 4.3 million, the previous two factors were the main reason behind the abnormal increase in net income. The bank has been a victim to an embezzlement during 2012, which caused the bank to report a loss of JD 3.7 million and forced the bank to take additional provisions of JOD 6.7 million for transactions that the bank is unsure about their accuracy. The Bank did not distribute any dividends for the last five years except for last year where the bank had distributed 8% of capital, judging from the current position of the bank and profitable operations we believe it is quite probable that the bank will distribute dividends this year as well, since the bank has reported profits in spite of the embezzlement witnessed during the year and made abnormal gains due to assets sale. Current Price 1.18 Capital 100,000,000 Market Cap 118,000, Week High Week Low Months Return (%) (6.35%) Dividend Yield (%) 6.78% Free Float (%) % Average Traded Volume 15,

12 Jordan Telecom Group (JTEL) Jordan Telecom Group (JTEL) also known as Orange Jordan the commercial brand of France Telecom Group - is one of the three telecommunications services provider in Jordan, the company is the sole provider for landlines in the country, the second largest mobile phone services provider and one of the major internet services providers in the country. It is also responsible for the administration of the basic telecommunications infrastructure which is the base of Jordan's telecommunications services industry. The group s net income decrease by around 5.0% in which it amounted to JOD 62.2 million compared to Q which amounted to JOD 65.2 million, the group also witnessed a decrease in net income at the end of 2011 by 5% compared to end of 2010 which reported JOD 89 million. In the first nine months in 2012 the company reported a drop in total revenues amounted to JOD 305 million also during the same period the group dropped its operating expenses by 2%. The group was distributing dividends in a decelerating rate. The group paid cash dividends in 2009 of 42%, followed by 39% in 2010 and the latest payment of cash dividends in 2011 were 36%. In the light of the decrease witnessed this year we believe dividend distribution might drop further, nevertheless the company s fundamentals remain good and its current dividend yield attractive at 6.79%. Current Price 5.38 Capital 250,000,000 Market Cap 1,325,000, Week High Week Low Months Return (%) (2.54%) Dividend Yield (%) 6.69% Free Float (%) 7.12% Average Traded Volume 10,

13 Cairo Amman Bank (CABK) Cairo Amman Bank was established as a public company in 1960 and currently has more than 77 branches in Jordan alone, in addition to its operations in Palestine. The bank has been targeting mainly retail customers where 55% of the current loan portfolio is granted to retail customers. The net income of the bank during the first nine months of 2012 amounted to JOD 25.3, a 5.6% drop compared to JOD 26.8 million earned in the same period last year. The drop was mainly due to non-reoccurring profits that the bank witnessed in the previous year that the bank did not earn this year, where the bank gained JOD 5.4 million for selling a part of the bank s investments in financial securities last year. In addition to having unrealized losses through the income statement of JOD 1.45 million during this year. If the previous items were normalized, it can be noted that the income before tax for the bank that was earned from core operations grew by 18.5%. The bank has been paying dividends at an accelerating rate where cash dividends increased from 5% back in 2008 to 17% in 2011, also the bank has been paying cash dividends constantly every year for more than five years. Although the bank s operations have improved net income witnessed a drop, making an increase in dividends unlikely this yearthe current Dividend Yield is 6.20% Current Price 2.66 Capital 100,000,000 Market Cap 266,000, Week High Week Low Months Return (%) (1.12%) Dividend Yield (%) 6.39% Free Float (%) 16.12% Average Traded Volume 10,

14 Jordan Kuwait Bank (JOKB) In 1976 a group of prominent Jordanian and Kuwaiti Investors came together to establish a joint investment project in Jordan under the name of Jordan Kuwait Bank, for the first 20 years the bank continued to be a medium-sized bank with moderate performance, the bank took a massive turn starting from year 1997 and is now currently the fifth bank in terms of market capitalization. The bank s net income for the first nine months of 2012 amounted to JOD million, a 10.9% increase compared to JOD million in the previous year. The bank s interest income increased 5.9%, while gains from trading securities more than doubled to reach JOD 3.61 million. The bank has been distributing dividends at an increasing rate, where dividends increased from 10% in 2008 to 20% in Due to the bank s improvement in profitability, and dividend paying policy the bank is expected to at least pay 20% this year. The current dividend yield is 6.41%. Current Price 3.15 Capital 100,000,000 Market Cap 315,000, Week High Week Low Months Return (%) (5.97%) Dividend Yield (%) 6.35% Free Float (%) % Average Traded Volume 5,

15 Bank of Jordan (BOJX) Bank of Jordan was established back in 1960 and currently has 96 branches in Jordan and Palestine, the bank also operates in Syria through its subsidiary (Bank of Jordan Syria). The bank announced at the beginning of the year that it will focus on the retail sector, which is evident through the changes in the bank s loan portfolio composition where retail loans consisted 25.6% by the end of Q compared to 18.9% at the beginning of the year. On the other hand loans granted to Large corporations and SMEs dropped 27% and 14% respectively. The bank s net credit facilities has dropped 12% since the beginning of the year while its NPL ratio increased from 9.8% to 11.8%, increasing the probability that the bank was affected by the events in Syria where the bank operates a series of branches. In spite of the drop in facilities, the bank s Net income has increased 4% to reach JD million compared to JD million reported in the same period last year. Also it should be noted that minority interest income has increased from JD 489 thousand to JD 6.6 million. The bank has been constantly paying 15% cash dividends during the last four years, and most likely to distribute at least 15% in the following year, since the bank managed to increase net income, unless further provisions were taken in the fourth quarter of Current Price 2.39 Capital 155,100,000 Market Cap 370,689, Week High Week Low Months Return (%) 14.35% Dividend Yield (%) 6.28% Free Float (%) % Average Traded Volume 52,

16 Arab Potash Company (APOT) Arab Potash is a company that is primarily involved in harvesting minerals from the Dead Sea. The company was formed in 1956 as a pan-arab business venture and has a 100-year concession from the government of Jordan to manufacture and market mineral products derived from the Dead Sea. The capital of the Arab Potash Company is JOD million. It has a concession from the Jordanian Government to exploit, manufacture, and market the mineral resources of the Dead Sea, until the year The company currently has 3.6% of the global market supply share. The company s net income in Q amounted to JOD million, compared to the same period last year which amounted to JOD million a drop of 22.86%. The drop was mainly due to a drop in the operating revenue of the Arab potash company which reached JOD million in Q compared to the same period last year which amounted to JOD million a drop of around 12%. The other operating segment that is specialized in producing potassium nitrate fertilizer also witnessed a drop in which it reached JOD 11.6 million in Q million compared to JOD16.3 million in Q Throughout the years the company s dividend payout has increased significantly from 70% in 2008 to 300% in But due to the drop witnessed in profitability and declining sales during 2012 we believe there is a chance the company might distribute slightly below 300% it distributed last year. Liquidity can be a concern for APOT s share where its average traded volume for the last months amounted to 1,009 shares only Current Price 47.9 Capital 83,318,000 Market Cap 3,990,932, Week High Week Low Months Return (%) 22.48% Dividend Yield (%) 6.26% Free Float (%) 2.14% Average Traded Volume 1,009 16

17 The Arab International Company for Education and Investment (AIEI) The company main stated goal is to establish educational institutions and provide educational services. The company owns and operates the Applied Science University (ASU), the largest private higher education in Jordan, located in Amman. Also the company owns 59% of Ibin Al Haitham Hospital (Ticker: IBNH) a large private hospital with the capacity of 200 beds. The company s total revenues increased 29% in the first nine months of 2012 to reach JD 25.5 million. While the university s revenues dropped slightly to JD million, the hospital s revenues more than doubled to reach JD 12 million, mostly due to Libyans coming to Jordan to be medicated during year Net income has increased 19% to reach JD 8.19 million. The company has been paying dividends at an accelerating rate where cash dividends increased from 8% back in 2008 to 20% in 2011, also the company has been paying cash dividends constantly every year for more than five years. The increase in profits witnessed during 2012 along with the company s policy makes us believe the company will distribute at least 20% this year. The current Dividend Yield is 6.51% Current Price 3.43 Capital 40,500,000 Market Cap 138,920, Week High Week Low Months Return (%) 35.04% Dividend Yield (%) 5.83% Free Float (%) % Average Traded Volume 3,

18 Jordan Electric Power Company (JOEP) The company was originally formed in year 1938 to generate and distribute electricity, but in year 1978 JOEP ceased all generating activities and focused plainly on purchasing generated electricity then distributing and selling energy to consumers based on the area assigned to the company by its concession which is granted by the government. The previous concession lasted for 50 years, expired in year 2012 and then was extended to year Currently the company is negotiating the new concession terms with the government. Because the company purchases the energy it sells at an already set tariff, JOEP was not heavily effected by the increase in electricity generation costs that Jordan faced during 2012 due to disruptions in gas supplies from Egypt which forced the country to import oil fuel and use it to generate electricity. The company s revenues went up 28% to JD 532 million in the first nine months of 2012, but due to the variable nature of the company s operating expenses, they have also increased by 28%, combined with a 40% increase in administrative expenses, the company reported an increase of 6% in net income where it amounted to JD 8.43 million for the first nine months of The company s dividend distribution behavior has varied through the period from 2006 to 2011 in response to variations in net income, in years where net income dropped significantly (such as years 2009 and 2010) the company distributed 7.5%, while in year 2011 profitability has increased the company distributed 16%, we believe dividends this year will not fall below that level. The current dividend yield is 4.76% Current Price 3.37 Capital 100,000,000 Market Cap 337,000, Week High Week Low Months Return (%) (0.88%) Dividend Yield (%) 4.75% Free Float (%) 56.33% Average Traded Volume 23,839 18

19 Bank Al-Etihad (UBSI) Bank Al Etihad was established in 1978 as a public shareholding company. The bank was originally well known to be strong in corporate banking which has been the competitive edge of the bank. In year 2012, the bank started a rebranding campaign combined with a new growth strategy which focuses on gaining market share in the retail sector. The strategy can be considered successful since the bank s loan portfolio grew 10% the first nine months of 2012, as the retail segment of the portfolio grew by 39%, while Large corporations remained the largest bulk in the portfolio at JD 566 million, out of a total loan portfolio of JD 863 million. In spite of witnessing growth in interest income, commission income and net credit facilities, the bank s net income has dropped to JD 9.66 million in the first nine months of 2012 compared to JD million in the same period last year. The main reason for the drop was an increase of 28% in the provision of impairment of credit facilities which rose from JD10.46 million to JD 13.4 million by the end of Q UBSI dividend distribution dropped from 12% in 2010 to 6% in 2011 due to a drop in the bank s profitability, the success of the bank s rebranding is subjective since the bank was able to increase facilities but not net income, therefore the bank s distribution rate is uncertain this year Current Price 1.45 Capital 100,000,000 Market Cap 145,000, Week High Week Low Months Return (%) 5.84% Dividend Yield (%) 4.14% Free Float (%) 15.60% Average Traded Volume 89,

20 Jordan Islamic Bank (JOIB) Jordan Islamic Bank was established in 1978, as a public shareholding limited company to carry out all kinds of banking, financing and investment business operations in compliance with the Islamic Sharia and in accordance with the provisions of Jordan Islamic Bank s Special Law. The bank s net income reached JOD million in the first nine months of 2012 compared to JOD million, an increase of 35%. This growth was mainly caused by an increase in the deferred sale revenues of 29%, where deferred sales reached JOD 83.3 million compared to the previous period at which it amounted to JOD 64.4 million, the increase in deferred sale revenues was mainly fueled by the huge increase in deferred sale revenues granted for the government and public sector which amounted to JOD 17.5 million compared to the same period last year which amounted to JOD 0.5 million. The bank paid 15% cash dividends annually during each of the previous four years - except year 2009 where the bank paid 12% -, the bank s current dividend yield is 3.86% Current Price 3.2 Capital 125,000,000 Market Cap 400,000, Week High Week Low Months Return (%) 44.14% Dividend Yield (%) 3.75% Free Float (%) 24.92% Average Traded Volume 41,

21 Jordan Phosphate Mines (JOPH) Jordan Phosphate Mines Company was incorporated into a public shareholding company in JOPH operates in three mining locations across the central and southern parts of Jordan, while the estimated reserves are about 1.47 Billion Tonnes in the three Mines. JOPH produces up to 7 million tones a year of rock, making it the world's sixth largest phosphate rock producer and the second largest exporter. Jordan Phosphate Mines reported an increase in net income by around 11% in the first nine months of 2012 which amounted to JOD million compared to the first nine months of previous year in which the company earned JOD 102 million in spite of the decrease of 2% witnessed in net sales. During the first nine months of 2011 the company took about JOD as several provisions which the company did not take again or increase during 2012, causing net income to increase. The company s dividends has been volatile through out the last four years ranging between 20% to 50%, the company distributed 45% in Current Price Capital 75,000,000 Market Cap 1,037,250, Week High Week Low Months Return (%) 15.54% Dividend Yield (%) 3.25% Free Float (%) 9.07% Average Traded Volume 16,581 21

22 Companies Dividend Distributions EICO 30% 50% 50% 100% JDFS 100% 100% 100% 100% IREL 83% 150% 120% 90% AHLI 10% 10% 10% 10% ABCO 0% 0% 0% 9% JTEL 40% 42% 39% 36% INVB 0% 0% 0% 8% AJIB 10% 8% 10% 10% MALL 6% 6% 7% 7% AIEI 0% 7% 15% 20% BOJX 15% 15% 15% 15% JOKB 10% 15% 20% 20% CABK 5% 10% 15% 17% APOT 70% 70% 125% 300% JOEP 10% 7.5% 7.5% 16% UBSI 10% 10% 12% 6% JOIB 15% 12% 15% 15% JOPH 50% 20% 20% 45% * Source: Amman Stock Exchange (ASE) Disclosures 22

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