a a a A a .TT Interim Condensed Consolidated Financial Information (Unaudited) and Independent Auditor's Review Report Jazeera Airways K.S.C.P.

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1 .TT Jzeer Airwys K..C.P. Kuwit Interim Condensed Consolidted Finncil Informtion (Unudited) nd Independent Auditor's Review Report : J. j A

2 d M Jzeer Airwys K..C.P. Kuwit 121 Contents li Pe 1121 Independent Auditor's Review Report 1 rm Interim Condensed Consolidted ttement of Finncil Position (Unudited) 2 Interim Condensed Consolidted ttement of Income (Unudited) el Interim Condensed Consolidted ttement of Comprehensive Income (Unudited) 4 Interim Condensed Consolidted ttement of Chnes in Equity (Unudited) 5 NA Li.> Interim Condensed Consolidted ttement of Csh Flows (Unudited) 6 Notes to the Interim Condensed Consolidted Finncil Informtion (Unudited) 7-12 i 11.1A = I

3 1st 11..A Deloitte. Deloitte & Touche Al-Wzzn & Co. Ahmed Al-Jber treet, hrq Dr Al-Awdi Complex, Floors 7 & 9 P.O. Box 20174, ft Kuwit Tel : , Fx : , !AI el el iii REPORT ON REVIEW OF INTERIM CONDENED CONOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTOR OF JAZEERA AIRWAY K..C.P. Introduction We hve reviewed the ccompnyin interim condensed consolidted sttement of finncil position of Jzeer Airwys K..C.P. ("the Ultimte Prent Compny") nd its subsidiries (toether clled "the Group") s t 2017 nd the relted interim condensed consolidted sttements of income nd comprehensive income for three-month nd nine -month periods then ended nd the relted interim condensed consolidted sttements of chnes in equity nd csh flows for the nine -month period then ended. Mnement is responsible for the preprtion nd presenttion of this interim condensed consolidted finncil informtion in ccordnce with Interntionl Accountin tndrd 34 - Interim Finncil Reportin. Our responsibility is to express conclusion on this interim condensed consolidted finncil informtion bsed on our review. cope of Review 131 C't We conducted our review in ccordnce with Interntionl tndrd on Review Enements 2410, "Review of Interim Finncil Informtion Performed by the Independent Auditor of the Entity". A review of interim finncil informtion consists of mkin inquiries, primrily of persons responsible for finncil nd ccountin mtters, nd pplyin nlyticl nd other review procedures. A review is substntilly less in scope thn n udit conducted in ccordnce with Interntionl tndrds on Auditin nd consequently does not enble us to obtin ssurnce tht we would become wre of ll sinificnt mtters tht miht be identified in n udit. Accordinly, we do not express n udit opinion. Conclusion!"..] ma Bsed on our review, nothin hs come to our ttention tht cuses us to believe tht the ccompnyin interim condensed consolidted finncil informtion is not prepred, in ll mteril respects, in ccordnce with Interntionl Accountin tndrd 34 - Interim Finncil Reportin. Report on other Lel nd Reultory Requirements Furthermore, bsed on our review, the interim condensed consolidted finncil informtion is in reement with the books of ccount of the Ultimte Prent Compny. We further report tht, to the best of our knowlede nd belief, we hve not become wre of ny mteril violtions of the Compnies Lw No. 1 of 2016 nd its executive reultions or of the Memorndum of Incorportion nd Articles of Assocition, s mended durin the nine months period ended 2017, tht miht hve hd mteril effect on the business of the Ultimte Prent Compny or on its finncil position. Tll Y. Al-Muzini Licence No. 209A Deloitte & Touche AI-Wzzn & Co. Kuwit 31 October 2017

4 11 Jzeer Airwys K..C.P. Kuwit riont riti Fil, roi I I 4 I ti!pj r 113 Interim Condensed Consolidted ttement of Finncil Position (Unudited) s t 2017 AET Non -current ssets Note 2017 (Unudited) Kuwiti Dinrs 31 December 2016 (Audited) 2016 (Unudited) Property nd equipment 3 11,899,807 5,624,192 5,805,578 Advnce for mintennce 12,213,208 10,432,847 11,564,325 ecurity deposit with lessor 2,482,320 2,482,320 2,962,928 Current ssets 26,595,335 18,539,359 20,332,831 Inventories, expendble prts nd supplies 221, , ,323 Trde nd other receivbles 2,509,198 5,508,594 2,346,741 Csh nd bnk blnces 4 29,369,010 29,441,328 32,503,391 32,100,132 35,172,546 35,071,455 Totl ssets 58,695,467 53,711,905 55,404,286 LIABILITIE AND EQUITY Equity hre cpitl 5 20,000,000 20,000,000 20,000,000 Lel reserve 2,735,709 2,735,709 1,607,146 Retined ernins 16,769,922 14,225,922 16,570,329 Totl equity 39,505,631 36,961,631 38,177,475 Non -current libilities Post employment benefits 2,453,459 2,494,102 2,755,682 Reserve for lese mintennce 482,501 1,194,848 1,189,592 Current libilities 2,935,960 3,688,950 3,945,274 Due to bnks 895,819 Trde nd other pybles 13,425,442 9,584,620 9,116,948 Deferred revenue 2,828,434 3,476,704 3,268,770 16,253,876 13,061,324 13,281,537 Totl libilities nd equity 58,695,467 53,711,905 55,404,286 CL sa. 1.0 The ccompnyin notes re n interl prt of this interim condensed consolidted finncil informtion. clei trim 41- Fel e tc417 Mrwn Mrzouq Boodi Chirmn 2

5 1"1.4 nt3 ctra rol c8a rj Jzeer Airwys K..C.P. Kuwit Interim Condensed Consolidted ttement of Income (Unudited) - Nine months ended 2017 Continuin opertions Three months ended Kuwiti Dinrs Nine months ended Note Revenue 21,933,176 18,776,039 46,018,707 43,456,359 Opertin costs (12,660,916) (11,817,532) (33,550,922) (31,175,481) Opertin profit 9,272,260 6,958,507 12,467,785 12,280,878 Other income 124, , , ,829 Generl nd dministrtive expenses (968,570) (934,578) (2,967,964) (2,814,568) Finnce costs (346) (1,712) (9,869) (4,393) Forein currency in/(loss) 147,554 82,614 36,972 (91,850) Forein currency trnsltion reserve reclssified to sttement of income - 2,427,421 Profit before contribution nd txes 8,574,925 6,323,796 9,981,776 12,522,317 Zkt (84,655) (62,010) (99,411) (126,083) Contribution to Kuwit Foundtion for the Advncement of ciences (77,174) (56,640) (89,836) (112,701) Ntionl Lbour upport Tx (211,640) (155,024) (248,529) (315,207) Profit for the period from continuin opertions 8,201,456 6,050,122 9,544,000 11,968,326 Discontinued opertions Net (loss)/profit for the period from discontinued opertions (30,420) 42,730 Net profit for the period 8,201,456 6,019,702 9,544,000 12,011,056 Attributble to: hreholders of the Ultimte Prent Compny 8,201,456 6,019,702 9,544,000 12,011, Ernins per shre (fils) - Bsic & Diluted 6 From continuin nd discontinued opertions From continuin opertions From discontinued opertions (0.15) :13 The ccompnyin notes re n interl prt of this interim condensed consolidted finncil informtion. cs] tl Lc 3

6 r*/.231 M1 Jzeer Airwys K..C.P. Kuwit Interim Condensed Consolidted ttement of Comprehensive Income (Unudited) - Nine months ended 2017 Kuwiti Dinrs 7 Three months ended Nine months ended Profit for the period 8,201,456 6,019,702 9,544,000 12,011,056 Other comprehensive income Items tht my be reclssified subsequently to sttement of income Totl comprehensive income for the period 8,201,456 6,019,702 9,544,000 12,011,056 Attributble to: 111 hreholders of the Ultimte Prent Compny 8,201,456 6,019,702 9,544,000 12,011,056 The ccompnyin notes re n interl prt of this interim condensed consolidted finncil informtion. c c 51 c9 Lizis 4

7 Pr RA II Jzeer Airwys K..C.P. Kuwit Interim Condensed Consolidted ttement of Chnes in Equity (Unudited) - Nine months ended 2017 IAI IA ri l 01 :"A te hre cpitl Lel reserve Kuwiti Dinrs Retined ernins Forein currency trnsltion reserve Totl equity At 1 Jnury ,000,000 2,735,709 14,225,922-36,961,631 Totl comprehensive income for the period - 9,544,000-9,544,000 Dividend (Note 5) - - (7,000,000) - (7,000,000) At ,000,000 2,735,709 16,769,922-39,505,631 At 1 Jnury ,000,000 1,607,146 7,559,273 2,427,421 31,593,840 Totl comprehensive income for the period ,011,056-12,011,056 Forein currency trnsltion reserve reclssified to sttement of income - - (2,427,421) (2,427,421) Dividend (Note 5) - - (3,000,000) - (3,000,000) At ,000,000 1,607,146 16,570,329-38,177,475 The ccompnyin notes re n interl prt of this interim condensed consolidted finncil informtion. -A Et A A 5

8 Jzeer Airwys K..C.P. Kuwit r' K -- r -r0: c :II Interim Condensed Consolidted ttement of Csh Flows (Unudited) - Nine months ended 2017 Csh flows from opertin ctivities Note 2017 (Unudited) Kuwiti Dinrs 2016 (Unudited) Profit for the period 9,544,000 12,011,056 Adjustments for: Deprecition 3 597, ,040 Finnce costs 9,869 4,393 Forein exchne (in)/loss (36,972) 95,371 Provision for post -employment benefits 336, ,753 Forein currency trnsltion reserve reclssified to sttement of income (2,427,421) Opertin profit before workin cpitl chnes 10,451,118 10,545,192 Decrese in inventories, expendble prts nd supplies 700 8,742 Decrese/(increse) in trde nd other receivbles 2,999,396 (717,206) Decrese in reserve for lese mintennce (712,347) (538,725) Increse in trde nd other pybles 3,877, ,244 Decrese in deferred revenue (648,270) (1,966,094) Post -employment benefits pid (376,944) (325,806) Net csh from opertin ctivities 15,591,447 7,773,347 Csh flows from investin ctivities Purchse of property nd equipment (net of disposl) 3 (6,873,535) (1,131,130) Increse in dvnce for mintennce (1,780,361) (2,892,608) Decrese in security deposit with lessors - 5,120 Net csh used in investin ctivities (8,653,896) (4,018,618) Csh flows from finncin ctivities Proceeds from overdrft 895,819 Dividend pid - (7,000,000) (3,000,000) Finnce costs pid (9,869) (4,393) Net csh used in finncin ctivities (7,009,869) (2,108,574) Net (decrese)/ increse in csh nd csh equivlents (72,318) 1,646, Csh nd csh equivlents t beinnin of period 4. 29,441,328 30,857,236 Csh nd csh equivlents t end of period 4 29,369,010 32,503,391, The ccompnyin notes re n interl prt of this interim condensed consolidted finncil informtion "cs 6

9 1'1 Ist cridi r , Et Di I r N. lt N..11 N Jzeer Airwys K..C.P. Kuwit Notes to the Interim Condensed Consolidted Finncil Informtion (Unudited) Constitution nd ctivities Jzeer Airwys K..C.P. (the "Ultimte Prent Compny") ws incorported by Amiri Decree on 3 Mrch 2004 s Kuwiti Public hreholdin Compny under the lws of Kuwit nd is ened in the business of ir trnsporttion nd commercil pssener services under license from the Directorte Generl of Civil Avition. The objects of the Ultimte Prent Compny re - Air trnsporttion services without the luxury services. Crry out ll ir trnsporttion nd other ir services nd ll other relted ctivities includin people ir trnsporttion, cro, oods nd mils in Kuwit nd brod. Provide ircrft nd other relted sset purchsin services in fvour of others nd coordinte with the mnufcturers. Provide both opertin nd finncin lese services s needed nd required by the clients "vition compnies". Mrket the ircrft to cover the medium nd lon-term needs of the vition compnies tht sk for such services. Assist vition compnies to mrket their ircrft throuh sle or lese. Ene in providin nd finncin the technicl support nd vrious ssets mnement services to vition compnies. Assist in co -investment processes specilized in the vition industry. Invest whether prtilly or wholly in supplyin ircrft, enines nd spre prts s per needs of the clients "vition compnies" nd mnufcturers. Provide ll ircrft relted services to vition compnies nd others whether in Kuwit or brod, such s: hndlin, mintennce nd other services. Bookin tickets nd psseners' services. upply nd del in deliverin nd mnin ll services nd products required by vition sector, in order to properly crry out opertions nd mintin, support nd provide ircrft customs brokere services. Ownin rel estte nd movble property to conduct its opertions within the limits s stipulted by lw. Providin services of finncin ircrft purchse projects (in whole or in prt) in liht of the evlution studies nd determinin the fctors of risks ssocited with such projects. Estblishin nd utilizin ircrft service sttions, wrehouses, hnrs, workshops, fctories, s well s ll mchineries, devices nd equipment relted to the compny's purposes. Investin in fields of ir trnsporttion of psseners, oods, fcilities nd utilities required to serve the compny's purposes or its chievement. Foundin nd estblishin brnches nd encies of the compny in Kuwit nd brod s well s conductin the businesses of round, technicl nd commercil ency of Arbin nd forein irlines inside Kuwit nd brod. Providin service of tourism, trvel nd freiht nd conductin ll its relted businesses includin lnd conveynce, holidys nd flihts' interted services, cr rentl with or without driver, s well s ll touristic businesses relted to the compny's purposes, in ddition to holdin celebrtions, competitions, exhibitions, currency exchne trnsctions nd sellin oods nd products on the compny's ircrft, offices nd premises, s well s ny other hotels, resturnts or touristic entities estblished or utilized by the ultimte prent compny nd issuin necessry mzines nd publictions, includin commercil ds. Providin services of mnement nd mrketin in ddition to the consultncy services relted to the field of ircrft industry. Conductin ll ir cro businesses inside nd outside Kuwit within the limits s stipulted by lw. 7

10 ft l!et Lill 134 ii 131 1* 1:61 M Jzeer Airwys K..C.P. Kuwit Notes to the Interim Condensed Consolidted Finncil Informtion (Unudited) Conductin ll businesses of trnsportin, hndlin, distributin nd customs clernce of oods relted to ir cro. Estblishin vition, wireless studies, enineerin, ir nd round services institutes, in ddition to trinin the technicl personnel in the field of vition nd qulifyin the Kuwiti citizens in order to ssume the technicl, dministrtive nd commercil businesses required to chieve the compny's purposes. Ownin nd rntin ny privilees, leses or investments, s well s outsourcin ny businesses or other rihts relted ircrft. Investin surplus funds in investment nd rel estte portfolios mned by specilized compnies or entities. The Ultimte Prent Compny hs the followin subsidiries: Nme of the Compny Country of Incorportion Percente of Holdin Description Al hb Avition ervices W.L.L. (formerly known s "Al hb Intermedite Aircrft Lesin Compny W.L.L.") Kuwit 99.99% 99.99% Prent Compny hb Avition LLC United ttes ubsidiry of Intermedite of Americ - 100% Prent Compny The reminin shreholdin in the Intermedite Prent Compny is held by prty for the beneficil interest of the Ultimte Prent Compny. The Ultimte Prent Compny, the Intermedite Prent Compny nd the subsidiry of Intermedite Prent Compny re toether referred to in these interim consolidted finncil informtion s the Group. The Intermedite Prent Compny nd subsidiry of the Intermedite Prent Compny, which were ened in lesin ircrft, decided in 2014 to discontinue this business nd sell the ircrft. The sle ws completed in The Intermedite Prent Compny intends to enter into other vition business. hb Avition LLC, the subsidiry of the Intermedite Prent Compny, ws dissolved durin the yer The ddress of the reistered office of the Ultimte Prent Compny is Kuwit Interntionl Airport, P.O. Box 29288, ft 13153, Kuwit. ii The number of personnel employed by the Group s of 2017 ws 491(31 December 2016: 482, 2016: 455). This interim consolidted finncil informtion ws pproved for issue by the Bord of Directors on 31 October Bsis of preprtion nd sinificnt ccountin policies ist sa The interim condensed consolidted finncil informtion hs been prepred in ccordnce with Interntionl Accountin tndrd No. 34, Interim Finncil Reportin. The ccountin policies used in the preprtion of the interim condensed consolidted finncil informtion for the period re consistent with those used in the preprtion of the nnul consolidted finncil sttements for the yer ended 31 December This interim condensed consolidted finncil informtion does not contin informtion nd disclosures required for complete consolidted finncil sttements prepred in ccordnce with Interntionl Finncil Reportin tndrds. In the opinion of the mnement, ll djustments (consistin of norml recurrin ccruls) considered necessry for fir presenttion hve been included. Results for the nine months period ended 2017 re not necessrily indictive of the results tht my be expected for the yer endin 31 December For further informtion, refer to the consolidted finncil sttements nd notes thereto included in the consolidted finncil sttements of the Group for the yer ended 31 December

11 11 Jzeer Airwys K..C.P. Kuwit l Notes to the Interim Condensed Consolidted Finncil Informtion (Unudited) rcila i Property nd equipment Cost Enines & rotbles Lesehold improvements Kuwiti Dinrs Furniture & equipment Vehicles Cpitl work -in - proress As t 31 December ,120,236 2,125,341 2,130,850 28, ,361 9,701,774 Additions ,315-6,848,830 6,875,545 Trnsfer 3,431,593 - (3,431,593) Disposls (2,067) - (2,067) As t ,551,829 2,125,741 2,155,098 28,986 3,713,598 16,575,252 Totl U.D. 1 L ell 9 N Deprecition As t 31 December ,447 1,010,525 2,072,505 19,105-4,077,582 Chre for the period 342, ,800 27,250 3, ,920 Disposls - - (57) - (57) As t ,318,059 1,235,325 2,099,698 22,363-4,675,445 Net book vlue As t ,233, ,416 55,400 6,623 3,713,598 11,899,807 As t 31 December ,144,789 1,114,816 58,345 9, ,361 5,624,192 As t ,230, ,618 59,811 10,967 1,039,972 5,805,578 Deprecition hs been llocted in the interim condensed consolidted sttement of income s follows: Kuwiti Dinrs Kuwiti Dinrs Three months ended (Unudited) Nine months ended (Unudited) Opertin costs 136, , , ,229 Generl nd dministrtive expenses 84,007 48, , , , , , , Csh nd bnk blnces Kuwiti Dinrs 31 December (Unudited) (Audited) (Unudited) Csh on hnd 18,352 26,803 28,034 Current ccount with bnks 4,204,692 2,570,201 1,624,962 Time deposits with bnks 25,145,966 26,844,324 30,850,395 Csh nd csh equivlents in the sttement of csh flows 29,369,010 29,441,328 32,503,391 The effective interest rte s of 2017 ws 1.6% to 13.25% (31 December 2016: 1.45% to 13%, 2016: 1.48% to 8.75%). 9

12 4 R 211 RI 9 :1131 IA 2Th r -131 Di l l 51 IA cll Jzeer Airwys K..C.P. Kuwit Notes to the Interim Condensed Consolidted Finncil Informtion (Unudited) hre cpitl The uthorised, issued nd fully pid up shre cpitl of the Ultimte Prent Compny s t 2017 is KD 20,000,000 pid in csh (31 December 2016: KD 20,000,000; 2016: KD 20,000,000) comprisin of 200,000,000 shres of 100 fils ech (31 December 2016: 200,000,000 shres of 100 fils ech; 2016: 200,000,000 shres of 100 fils ech). Dividend The Annul Generl Assembly of the shreholders of the Ultimte Prent Compny held on 30 April 2017 pproved the distribution of csh dividend of 35 fils per shre to the shreholders, mountin to KD 7,000,000 for the yer ended 31 December 2016 (31 December 2015: KD 3,000,000). 6. Ernins per shre Ernins per shre is clculted bsed on the ernins ttributble to the equity shreholders of the Ultimte Prent Compny for the period nd the weihted vere number of shres outstndin, s follows: From continuin nd discontinued opertions Three months ended (Unudited) Nine months ended (Unudited) Ernins for the period (in Kuwiti Dinr) 8,201,456 6,019,702 9,544,000 12,011,056 Weihted vere number of shres outstndin 200,000, ,000, ,000, ,000,000 Ernins per shre (fils) - Bsic & Diluted From continuin opertions Three months ended (Unudited) Nine months ended (Unudited) Ernins for the period (in Kuwiti Dinr) 8,201,456 6,050,122 9,544,000 11,968,326 Weihted vere number of shres outstndin 200,000, ,000, ,000, ,000,000 Ernins per shre (fils) - Bsic & Diluted From discontinued opertions Three months ended (Unudited) Nine months ended (Unudited) Ernins for the period (in Kuwiti Dinr) (30,420) 42,730 Weihted vere number of shres outstndin 200,000, ,000, ,000, ,000,000 Ernins per shre (fils) - Bsic & Diluted (0.15)

13 :11 yq its Jzeer Airwys K..C.P. Kuwit Notes to the Interim Condensed Consolidted Finncil Informtion (Unudited) Relted prty trnsctions nd blnces Prties re considered to be relted if one prty hs the bility to control the other prty or exercise sinificnt influence over the other prty in mkin finncil or opertionl decisions. In the ordinry course of business,.31 the Group enters into trnsctions with relted prties (directors, key mneril personnel nd roup compnies). Pricin policies nd terms of these trnsctions re pproved by the Group's mnement. Trnsctions nd blnces with relted prties not disclosed elsewhere in this interim consolidted finncil informtion re s follows: Kuwiti Dinrs December (Unudited) (Audited) (Unudited) il Blnces 1)1 Due from relted prty 9,264 40, ,626 ia DI 1)1 Trnsctions Kuwiti Dinrs Three months ended (Unudited) Nine months ended (Unudited) les nd services 104, , , ,862 Generl nd dministrtive expenses 45,475 27,912 99, , ' Di 1131 DI Txes Key mnement compenstion lries nd other employment benefits 206, , , ,706 The Ultimte Prent Compny hs exemptions from tx libility under bilterl tx reement with countries to which it opertes pssener flihts. However, the Ultimte Prent Compny is continently lible for ny txes tht my finlly be determined by the txtion uthorities of those countries. The Group is lible for lternte minimum tx on sle of four ircrft owned by hb Avition LLC, incorported in the United ttes of Americ. In 2016, the Group pid this tx bsed on tx return filed nd is now witin tx ssessment order. 9. ement informtion The Group derives its revenue primrily from opertion of pssener irline service. On 15 Jnury 2015, the Group entered into n reement to sell its entire fleet of ircrft to third prties with effect from 23 December Accordinly, the pssener irline service informtion is disclosed s continuin opertions nd lesin of ircrft is shown s discontinued opertions in the interim condensed consolidted sttement of income. 10. Commitments nd continent libilities Cpitl Commitments 6,670,000 Kuwiti Dinrs 31 December (Unudited) (Audited) (Unudited) Bnk urntees 5,513,150 6,404,586 6,004,931 11

14 -D1.! 13 Jzeer Airwys K..C.P. Kuwit r3 Notes to the Interim Condensed Consolidted Finncil Informtion (Unudited) rd 11. Opertin lese expense The future minimum lese rent pyble on the opertin lese is pyble s follows: i-- Kuwiti Dinrs 31 December DI (Unudited) (Audited) (Unudited) A fi Di Not lter thn one yer 9,104,030 9,245,983 9,117,621 Lter thn one yer but not lter thn five yers 26,364,787 27,737,950 27,352,864 Lter thn five yers 17,966,872 24,195,699 26,156,358 53,435,689 61,179,632 62,626,843 ID1 Di A '41 4 ;Di 12

Appendix U: THE BOARD OF MANAGEMENT FOR THE REGAL HEIGHTS VILLAGE BUSINESS IMPROVEMENT AREA. Financial Statements For the Year Ended December 31, 2011

Appendix U: THE BOARD OF MANAGEMENT FOR THE REGAL HEIGHTS VILLAGE BUSINESS IMPROVEMENT AREA. Financial Statements For the Year Ended December 31, 2011 I Appendix U: Finncil Sttements For the Yer Ended December 31, 2011 0 DECEMBER 31, 2011 CONTENTS Pce Independent uditor s report 3 Finncil sttements Sttement of finncil position 4 Sttement of opertions