SALAM INTERNATIONAL INVESTMENT LIMITED Q.S.C. INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2010
Interim Condensed Consolidated Financial Information CONTENTS Page (s) Review report to the Board of Directors 1 Interim condensed consolidated financial information Interim condensed consolidated statement of financial position 2-3 Interim condensed consolidated statement of income 4 Interim condensed consolidated statement of comprehensive income 5 Interim condensed consolidated statement of changes in equity 6-7 Interim condensed consolidated statement of cash flows 8-9 Notes to the interim condensed consolidated financial information 10-19
Independent Auditors Review Report To The Board of Directors Salam International Investment Limited Q.S.C. Doha State of Qatar Introduction We have reviewed the accompanying interim condensed consolidated statement of financial position of Salam International Investment Limited Q.S.C. (the Company ) and its subsidiaries (together to as the Group ) as at 2010 and the related interim condensed consolidated statements of income, comprehensive income, changes in equity and cash flows for the six month period then ended and the related notes ( interim condensed consolidated financial information ). The Board of Directors is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with IAS 34 Interim Financial Reporting. Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review. Scope of Review We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information as at 2010 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting. 28 July 2010 Ahmed Hussain Doha KPMG State of Qatar Qatar Auditors Registry Number 197.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 2010 In Qatari Riyals Note 2010 31 December 2009 Reviewed Audited ASSETS Non-current assets Property, plant and equipment 4 398,120,878 450,714,916 Investment properties 5 728,041,843 655,099,677 Intangible assets 114,067,777 113,580,472 Investment in associates 242,528,605 249,389,499 Available-for-sale investments 6 90,236,739 104,523,657 Retention receivables 32,763,101 32,425,935 Loan to an associate company 5,572,015 2,852,476 Other noncurrent assets 5,647,465 8,900,855 Total non-current assets 1,616,978,423 1,617,487,487 Current assets Inventories 264,130,977 263,576,208 Excess of revenue over billings 116,469,567 116,319,636 Other current assets 109,523,362 83,252,180 Retention receivables 57,395,802 57,869,652 Due from related parties 154,968,102 28,855,678 Trade and other receivables 268,241,459 346,087,097 Investments at fair value through profit or loss 6 7,351,214 5,982,036 Cash and bank balances 7 164,387,559 172,883,389 Total current assets 1,142,468,042 1,074,825,876 TOTAL ASSETS 2,759,446,465 2,692,313,363 (Continued) This interim condensed consolidated financial information was approved by the Board of Directors and was signed on their behalf by the following on 28 July 2010: Mr. Issa Abdul Salam Abu Issa Chairman and Chief Executive Officer Mr. Hussam Abdul Salam Abu Issa Vice Chairman and Chief Operating Officer The attached notes 1 to 14 form an integral part of this interim condensed consolidated financial information. 2
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 2010 In Qatari Riyals (Continued) Note 2009 31 December 2009 Reviewed Audited EQUITY AND LIABILITIES Equity Share capital 989,736,680 989,736,680 Legal reserve 350,753,099 350,753,099 Investments fair value reserve (2,620,922) 6,854,164 Property revaluation surplus 624,389 747,310 Proposed cash dividends - 69,281,568 Retained earnings 202,162,349 133,268,287 Total equity attributable to equity holders of the Parent 1,540,655,595 1,550,641,108 Non-controlling interests 4,313,925 3,473,840 Total equity 1,544,969,520 1,554,114,948 LIABILITIES Non-current liabilities Employees end of service benefits 31,730,602 28,829,384 Retention payables 6,594,988 10,900,743 Borrowings 289,411,300 227,569,441 Notes payable 21,929,469 37,661,090 Other liabilities 3,564,901 3,720,052 Total non-current liabilities 353,231,260 308,680,710 Current liabilities Due to related parties 15,506,740 10,094,920 Excess of billings over revenues 48,853,334 36,279,805 Advances from customers 3,883,685 9,319,802 Retention payables 22,824,667 27,474,516 Other liabilities 298,777,131 297,573,352 Trade and other payables 193,644,099 179,827,932 Notes payable 34,057,883 37,224,650 Bank overdrafts 7 122,190,076 131,305,261 Borrowings 121,508,070 100,417,467 Total current liabilities 861,245,685 829,517,705 TOTAL LIABILITIES 1,214,476,945 1,138,198,415 TOTAL EQUITY AND LIABILITIES 2,759,446,465 2,692,313,363 This interim condensed consolidated financial information was approved by the Board of Directors and was signed on their behalf by the following on 28 July 2010: Mr. Issa Abdul Salam Abu Issa Chairman and Chief Executive Officer Mr. Hussam Abdul Salam Abu Issa Vice Chairman and Chief Operating Officer The attached notes 1 to 14 form an integral part of this interim condensed consolidated financial information. 3
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME In Qatari Riyals For the three months ended For the six months ended Note 2010 2009 2010 2009 Reviewed Reviewed Reviewed Reviewed Operating income 409,696,205 426,492,259 849,691,311 877,951,045 Operating cost (292,434,339) (306,266,395) (606,835,087) (624,825,759) Gross profit 117,261,866 120,225,864 242,856,224 253,125,286 Investment income 10 15,053,472 13,671,344 38,339,103 30,713,025 Other operating income 1,936,585 1,535,153 3,710,751 2,939,474 Service and consultancy income 1,531,236 2,433,840 2,536,530 4,556,089 Other income 16,868,062 5,981,002 22,510,443 11,491,506 152,651,221 143,847,203 309,953,051 302,825,380 Salaries and staff benefits (53,041,254) (52,154,165) (104,482,751) (105,591,690) General and administrative expenses (44,400,065) (40,937,895) (87,384,993) (81,572,624) Amortisation of intangible (465,243) (593,808) (977,158) (1,196,634) assets Depreciation of investment properties 5 (552,242) (552,242) (1,098,415) (1,098,416) Depreciation of property, plant 4 (13,752,155) (11,446,259) (26,588,232) (23,191,585) and equipment Impairment on available-for-sale investments - - - (8,969,730) Impairment on investment in associates (152,198) - (252,198) - Finance costs (7,992,410) (6,578,228) (14,155,456) (12,430,551) Profit before General Managers 32,295,654 31,584,606 75,013,848 68,774150 profit share Executives and general managers profit share (1,333,931) (2,041,154) (4,140,314) (4,417,602) Profit for the period 30,961,723 29,543,452 70,873,534 64,356,548 Attributable to: Equity holders of the Parent 29,377,858 29,893,744 68,771,141 63,295,118 Non-controlling interests 1,583,865 (350,292) 2,102,393 1,061,430 Profit for the period 30,961,723 29,543,452 70,873,534 64,356,548 Basic and diluted earnings per share (QR) 12 0.30 0.30 0.69 0.64 The attached notes 1 to 14 form an integral part of this interim condensed consolidated financial information. 4
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME In Qatari Riyals For the three months ended For the six months ended June 30 2010 2009 2010 2009 Reviewed Reviewed Reviewed Reviewed Profit for the period 30,961,723 29,543,452 70,873,534 64,356,548 Other comprehensive income: Transfer to profit on disposal of available-forsale investments (166,703) - (4,337,806) - Net movement in cumulative changes in fair value of available-for-sale investments (6,768,105) 8,562,747 (5,137,280) (9,940,627) Impairment loss on available-for-sale investments transferred to profit - - - 8,969,730 Revaluation reserve realised 61,800 161,901 122,921 324,331 Other comprehensive income / (loss) for the period (6,873,008) 8,724,648 (9,352,165) (646,566) Comprehensive income for the period 24,088,715 38,268,100 61,521,369 63,709,982 The attached notes 1 to 14 form an integral part of this interim condensed consolidated financial information. 5
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY In Qatari Riyals Equity Attributable to equity holders of the parent Six months ended 2010 (reviewed) Share capital Legal reserve* Investments fair value reserve Property revaluation reserve Proposed cash dividends Retained earnings Total Noncontrolling interests Total equity Balance as at 1 January 2010 (audited) 989,736,680 350,753,099 6,854,164 747,310 69,281,568 133,268,287 1,550,641,108 3,473,840 1,554,114,948 Profit for the period - - - - - 68,771,141 68,771,141 2,102,393 70,873,534 Other comprehensive income for the period Transfer to profit on disposal of available-for-sale investments - - (4,337,806) - - - (4,337,806) - (4,337,806) Revaluation surplus realized - - - - - 122,921 122,921-122,921 Net movement in cumulative changes in fair value of available-for-sale investments - - (5,137,280) - - - (5,137,280) - (5,137,280) Comprehensive income for the period - - (9,475,086) - - 122,921 (9,352,165) - (9,352,165) Cash dividend paid - - - - (69,281,568) - (69,281,568) - (69,281,568) Transferred from revaluation surplus to retained earnings - - - (122,921) - - (122,921) - (122,921) Movement in non-controlling interests - - - - - - - (1,262,308) (1,262,308) Balance at 2010 (reviewed) 989,736,680 350,753,099 (2,620,922) 624,389-202,162,349 1,540,655,595 4,313,925 1,544,969,520 *Legal reserve will be accounted for at the year-end. The attached notes 1 to 14 form an integral part of this interim condensed consolidated financial information. 6
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY In Qatari Riyals Equity Attributable to equity holders of the parent Six months ended 2009 (reviewed) Share capital Legal reserve* Investments fair value reserve Property revaluation reserve Proposed cash dividends Proposed issue of bonus shares Retained earnings Total Noncontrolling interests Total equity Balance as at 1 January 2009 (audited) 931,516,880 337,650,076 6,013,119 4,262,839 58,219,805 58,219,800 83,261,533 1,479,144,052 7,272,284 1,486,416,336 Profit for the period - - - - - - 63,295,118 63,295,118 1,061,430 64,356,548 Other comprehensive loss for the period Net movement in cumulative changes in fair value of available-for-sale investments - - (9,940,627) - - - - (9,940,627) - (9,940,627) Revaluation reserve realised - - - - - - 324,331 324,331-324,331 Impairment loss on availablefor-sale investments transferred to profit - - 8,969,730 - - - - 8,969,730-8,969,730 Comprehensive income for the period - - (970,897) - - - 324,331 (646,566) - (646,566) Bonus shares issued 58,219,800 - - - - (58,219,800) - - - - Cash dividends paid - - - - (58,219,805) - - (58,219,805) - (58,219,805) Transferred from revaluation surplus to retained earnings - - - (324,331) - - (324,331) - (324,331) Acquisition of noncontrolling interests - - - - - - - - (2,624,618) (2,624,618) Net movement in noncontrolling interests - - - - - - - - (1,257,476) (1,257,476) Balance at 2009 (reviewed) 989,736,680 337,650,076 5,042,222 3,938,508 - - 146,880,982 1,483,248,468 4,451,620 1,487,700,088 The attached notes 1 to 14 form an integral part of this interim condensed consolidated financial information. 7
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS In Qatari Riyals Six months ended 2010 2009 Reviewed Reviewed OPERATING ACTIVITIES Profit for the period 70,873,534 64,356,548 Adjustments for : Provision for doubtful receivables 2,982,706 3,189,802 Provision for slow moving inventory 2,604,473 2,834,565 Impairment on available-for-sale investments - 8,969,730 Gain on sale of available-for-sale investments (4,613,531) - Unrealised loss/gain on trading securities (1,369,178) 855,840 Amortisation of intangible assets 977,158 1,196,634 Depreciation on investment properties 1,357,344 1,098,416 Depreciation of property, plant and equipment 28,753,233 24,772,023 Loss on sale of property, plant and equipment 1,310,264 (166,310) Provided employees end of service benefits 4,442,990 4,331,281 Finance costs 14,155,456 12,430,551 Interest income (4,948,688) (4,660,911) Dividend income (3,208,556) (3,689,865) Share of results from investments in associates 1,282,983 2,819,380 Operating profit before working capital changes 114,600,188 118,337,684 Change in excess of revenue over billings (149,931) (36,621,197) Change in other assets (23,017,792) (58,943,343) Change in inventories 991,023 19,466,433 Change in retentions receivables 136,684 (12,852,226) Change in due from related parties (125,933,129) (25,367,144) Change in receivables and other assets 74,992,344 102,890,439 Change in payables and other liabilities 14,643,963 (76,771,563) Change in due to related parties 5,411,820 100,442 Change in excess of billings over revenue 12,573,529 19,574,993 Change in retention payables (8,955,604) 8,305,454 Change in loans to associated companies (2,719,539) - Change in advances from customers (5,436,117) (7,063,270) Cash generated from operations 57,137,439 51,056,702 Employees end of service benefits paid (1,609,323) (1,216,954) Net cash from operating activities 55,528,116 49,839,748 (Continued) The attached notes 1 to 14 form an integral part of this interim condensed consolidated financial information. 8
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS In Qatari Riyals (Continued) Six months ended 2010 2009 Reviewed Reviewed INVESTING ACTIVITIES Payments for purchase of property, plant and equipment (37,866,973) (26,833,990) Proceeds from sale of property, plant and equipment 2,265,096 1,310,467 Payments for purchase of investment properties (1,842,717) (1,705,432) Payments for available-for-sale investments (290,798) (2,682,430) Net movement in intangible assets (369,463) (2,743,096) Proceeds from sale of available for sale investments 9,716,161 - Net movement in investment in associate companies (98,749) (1,360,000) Dividends received from an associate 3,471,921 683,511 Dividends received from investments 3,208,556 3,689,865 Interest received 4,948,688 4,660,911 Net outflow on acquisition of subsidiary net of cash (4,132,413) - Net cash flows used in investing activities (20,990,691) (24,980,194) FINANCING ACTIVITIES Net movement in borrowings 69,679,650 28,499,607 Net movement in notes payable (18,898,388) 39,472,568 Net movement in non-controlling interests (1,262,308) (3,882,094) Finance costs paid (14,155,456) (12,430,551) Dividends paid (69,281,568) (58,219,805) Cash flows used in financing activities (33,918,070) (6,560,275) Increase in cash and cash equivalents 619,355 18,299,279 Cash and cash equivalents at the beginning of the period 41,578,128 (36,466,114) Cash and cash equivalents at the end of the period (Note 7) 42,197,483 (18,166,835) The attached notes 1 to 14 form an integral part of this interim condensed consolidated financial information. 9
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 1 STATUS AND OPERATIONS Salam International Investment Limited Q.S.C. (the Company ) is a public shareholding company incorporated in the State of Qatar under Amiri Decree No. (1) on 14 January 1998. The accompanying interim condensed consolidated financial information represents the consolidated accounts of the Company and its subsidiaries (together referred to as the Group ). The main activities of the Company are to establish, incorporate, acquire, and own enterprises in the commercial, industrial, educational, real estate, financial and services sectors. 2 SIGNIFICANT ACCOUNTING POLICIES (a) Basis of preparation and accounting policies The accompanying interim condensed consolidated financial information is prepared in accordance with International Accounting Standard (IAS) 34 - Interim Financial Reporting. They do not include all of the information required for full annual financial statements, therefore should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2009. In addition, results for the six month period ended 2010 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2010. The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those followed in the preparation of the Group s annual financial statements for the year ended 31 December 2009. A number of new standards, amendments to standards and interpretations have been issued that are not yet effective for the period ended 2010 and have not been applied in preparing these condensed consolidated interim financial information: - IFRS 9, Financial Instruments is the first standard issued as part of a wider project to replace IAS39. IFRS 9 retains but simplifies the mixed measurement model and establishes two primary measurement categories for financial assets: amortised cost and fair value. The basis of classification depends on the entity's business model and the contractual cash flow characteristics of the financial asset. The standard can be adopted early prospectively, and prior periods need not be restated if an entity adopts the standard for reporting periods beginning before 1 January 2012. These interim condensed consolidated financial information incorporate the financial information of the Group. All significant inter-company transactions and balances are eliminated on consolidation. The interim condensed consolidated financial information is prepared in Qatari Riyals and all values are rounded to the nearest Qatari Riyal except when otherwise indicated. 10
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (b) Significant accounting judgement, estimates and assumptions The preparation of this interim condensed consolidated financial information requires management to make judgements, estimates and assumptions of future events that affect the application of accounting policies and the reported amounts and actual results may differ from these estimates. In preparing these interim condensed consolidated financial information, the significant judgements made by management in applying the Group s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2009. 11
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION In Qatari Riyals 3 SUBSIDIARIES Details of changes in Group s subsidiaries during the six month period ended 2010 are as follows: Qatar Transformer Company W.L.L. ( formerly known as Voltamp Manufacturing Qatar W.L.L. ) During the period, the Group acquired the remaining 66% of the voting shares of Qatar Transformers Company W.L.L. In which the Group has owned 34% of the voting shares before the acquisition date. Qatar Transformer Company W.L.L. is an unlisted Company specialising in the manufacture of transformers. The acquisition has been accounted for using the purchase method of accounting. The interim condensed consolidated financial information includes the results of Qatar Transformer Company W.L.L. share from the date of acquisition. 4 PROPERTY, PLANT AND EQUIPMENT 2010 31 December 2009 Reviewed Audited Cost: Balance as at 1 January 654,690,377 595,703,914 Assets acquired in business combination 14,324,375 - Additions for the period / year 37,866,973 80,514,775 Transfers (72,456,793) - Disposals (6,766,366) (21,528,312) Balance as at 627,658,566 654,690,377 Depreciation: Balance as at 1 January 203,975,461 161,831,400 Charge for the period / year 28,753,233 51,743,525 Relating to disposals (3,191,006) (9,599,464) Balance as at 229,537,688 203,975,461 Net book value 398,120,878 450,714,916 The depreciation charges have been allocated as follows: 2010 Reviewed 2009 Reviewed Operating cost 2,165,001 1,580,438 General & Administrative expenses 26,588,232 23,191,585 28,753,233 24,772,023 12
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION In Qatari Riyals 5 INVESTMENT PROPERTIES 2010 31 December 2009 Reviewed Audited Cost: Balance as at 1 January 668,708,236 669,134,618 Additions for the period / year 1,842,717 918,590 Transfers 72,456,793 - Other adjustments - (1,344,972) Balance as at 743,007,746 668,708,236 Depreciation: Balance as at 1 January 13,608,559 11,393,522 Charge for the period / year 1,098,415 2,215,037 Other adjustments 258,929 - Balance as at 14,965,903 13,608,559 Net book value 728,041,843 655,099,677 6 INVESTMENT IN SECURITIES 2010 31 December 2009 Reviewed Audited Investments at fair value through profit or loss Quoted shares-qatar 7,351,214 5,982,036 Available-for-sale investments Quoted shares at fair value Qatar 33,116,258 35,371,502 Quoted shares at fair value Outside Qatar 10,353,203 22,384,877 Unquoted shares and private equity 46,767,278 46,767,278 Total available for sale investments 90,236,739 104,523,657 Total investment in securities 97,587,953 110,505,693 7 CASH AND CASH EQUIVALENTS For the purposes of the consolidated statement of cash flows, cash and cash equivalents include bank balances and cash, net of outstanding bank overdrafts. Cash and cash equivalents at the end of the reporting period as shown in the consolidated statement of cash flows can be reconciled to the related items in the consolidated statement of financial position as follows: 2010 Reviewed 31 December 2009 Audited Bank balances and cash 164,387,559 172,883,389 13
Bank overdrafts (122,190,076) (131,305,261) Cash and cash equivalents 42,197,483 41,578,128 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION In Qatari Riyals 8 DIVIDENDS AND BONUS ISSUE The Shareholders General Assembly Meeting held on 24 February 2010 approved cash dividend in respect of the year ended 31 December 2009 of QR 0.70 per share (for the year ended 31 December 2008: 0.625 per share), amounting to a total of QR 69,281,568 (for the year ended 31 December 2008: QR 58,219,805). 9 RELATED PARTY DISCLOSURES (a) Transactions with related parties These represent transactions with related parties, i.e., the major shareholders, senior management and companies over which the Group exercises control or significant influence. The transactions with related parties consist principally of rent, purchase of computer software and accounting and other services. Pricing policies and terms of these transactions are at arms length and are approved by the Group s management. During the period, the subsidiaries of the Group entered into the following trading transactions with related parties that are not members of the Group: Six months period ended 2010 2009 Reviewed Reviewed Operating income 50,954,763 10,341,182 Operating cost 10,678,356 2,659,435 Rental income from investment properties 8,256,393 7,622,080 Other income 3,626,134 1,667,473 Other expense 587,431 1,354,375 Loans 78,260,963 5,400,000 (b) Compensation of key management personnel Six months period ended 2010 2009 Reviewed Reviewed General Manager s profit share 4,140,314 4,417,602 Salaries and other short term benefits 12,005,440 11,661,760 End of service benefits 517,190 475,658 16,662,944 16,555,020 14
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION In Qatari Riyals 10 INVESTMENT INCOME For the three month period ended For the six month period ended 2010 2009 2010 2009 Reviewed Reviewed Reviewed Reviewed Rental income from investment properties 12,662,242 13,065,381 26,245,477 26,037,469 Profit on sale of investments 373,471-4,613,531 - Unrealised gain (loss) on investments at fair value through profit or loss (141,372) 1,084,587 353,637 (855,840) Interest income 2,698,905 2,143,244 4,948,688 4,660,911 Loss from investment in an associate (809,524) (3,784,727) (1,030,786) (2,819,380) Dividend income 269,750 1,162,859 3,208,556 3,689,865 Total 15,053,472 13,671,344 38,339,103 30,713,025 11 CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS 2010 Reviewed 31 December 2009 Audited Capital commitments 5,269,445 35,700,000 Letters of credit 81,144,041 72,221,952 Letters of guarantees 413,779,149 400,474,090 12 BASIC AND DILUTED EARNINGS PER SHARE Basic earnings per share amounts are calculated by dividing the net profit for the period / year attributable to equity holders of the parent by the weighted average number of ordinary shares outstanding at the statement of financial position date. The basic and diluted earnings per share are the same as there were no dilutive effects on earnings. Three months period ended Six months period ended 2010 2010 2009 2009 Reviewed Reviewed Reviewed Reviewed Net profit attributable to equity holders of the parent 29,377,858 29,893,744 68,771,141 63,295,118 Adjusted weighted average number of outstanding shares 98,973,668 98,973,668 98,973,668 98,973,668 15
Basic and diluted earnings per share (QR) 0.30 0.30 0.69 0.64 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 13 SEGMENT INFORMATION The Group operates in the areas of contracting, interiors, energy and power, consumer and luxury products, technology and communication and real estate and investments. Transactions between segments are conducted at estimated market rates, as approved by management, and are eliminated on consolidation. The following table shows the distribution of the Group s revenue, expenditure and summary of assets and liabilities: 16
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION In Qatari Riyals 13 SEGMENT INFORMATION (CONTINUED) 2010 Contracting Interiors Energy & Power Consumer and luxury products Technology and telecommunication Real estate and investments Operating income From external customers 189,544,194 86,872,686 164,536,997 330,234,440 77,598,744 904,250 849,691,311 Inter-segment 820,091 2,491,201 3,151,942 1,964,191 860,047 6,493,922 15,781,394 Total operating income 190,364,285 89,363,887 167,688,939 332,198,631 78,458,791 7,398,172 865,472,705 Total Segment results 5,562,614 16,186,099 6,095,048 14,186,831 4,681,301 22,059,248 68,771,141 Assets and liabilities Segment assets 297,379,391 141,495,023 223,161,398 893,215,774 128,190,187 1,076,004,692 2,759,446,465 Segment liabilities 200,743,904 79,730,143 154,343,659 292,981,923 67,161,804 419,515,512 1,214,476,945 Other segment information Capital expenditures: Tangible assets 3,645,733 640,810 15,512,022 9,790,246 1,198,491 8,922,387 39,709,689 Intangible assets 158,868 - - 226,965 - - 385,833 3,804,601 640,810 15,512,022 10,017,211 1,198,491 8,922,387 40,095,522 Depreciation 5,058,711 2,247,787 1,901,855 15,950,363 334,752 2,193,179 27,686,647 Amortisation 24,790 11,598 14,638 371,290 23,579 531,263 977,158 17
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION In Qatari Riyals 13 SEGMENT INFORMATION (CONTINUED) 2009 Contracting Interiors Energy & Power Consumer and luxury products Technology and telecommunication Real estate and investments Total Operating income From external customers 180,689,071 114,068,081 158,788,190 304,730,750 118,607,202 1,067,751 877,951,045 Inter-segment 12,855,902 3,169,381 16,155 3,481,013 1,129,446 34,363,251 55,015,148 Total operating income 193,544,973 117,237,462 158,804,345 308,211,763 119,736,648 35,431,002 932,966,193 Segment results 2,250,325 19,693,974 17,581,435 (996,239) 12,994,815 11,770,808 63,295,118 Assets and liabilities Segment assets 338,680,026 202,446,119 143,876,056 947,806,709 153,460,523 957,113,293 2,743,382,726 Segment liabilities 251,143,499 134,032,270 95,045,475 325,178,755 85,231,429 365,051,210 1,255,682,638 Other segment information Capital expenditures: Tangible assets 4,522,111 3,356,293 4,707,509 10,378,348 1,057,554 4,517,607 28,539,422 Intangible assets - - - 57,814 - - 57,814 4,522,111 3,356,293 4,707,509 10,436,162 1,057,554 4,517,607 28,597,236 Depreciation 4,731,390 1,805,543 864,912 14,377,616 319,437 2,191,103 24,290,001 Amortisation 93,623 19,339 105,469 335,298 57,979 584,926 1,196,634 18
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 14 COMPARATIVE FIGURES Certain comparative figures were reclassified to match with the current period s presentation. Those reclassifications did not have any effect on the comparative consolidated net profit or equity. 19