11

Middle East Debt Capital Market Conference

Middle East Debt Capital Market Conference

April 2008

22

Overview

Strategy

Financial Overview & Outlook

Agenda

Liability Management

Annexures

33

Excellent management

track record & strong

shareholder support

Premier holding

company focused on

MENA

Assets under management :

~ US$24 billion

Presence across 21 countries

Presence across 21 countries

Key Verticals:Financial

Services & Media

Employees7000+

KIPCO: Overview

S&P Rating:BBB+

CI Rating: A-

16 years of continued

profitability

Among the most actively traded stock

on KSE

44

0

200

400

600

800

1000

1200

1400

J an- 02 Feb- 03 Apr- 04 J un- 05 J ul- 06 J ul- 07

0

20

40

60

80

100

120

140

KIPCO Volumes KIPCO Prices

KIPCO: Ownership & Liquidity

• KIPCO’s major shareholder, Al Futtooh Investment Company (AFI) is owned by prominent members of the Al-Sabah family

*As on April 15, 2008; since March 26, 2007 KIPCO share price is trading ex-Dividend

KIPCO Share – Price & Volume (2002-2008YTD)

Source: KSE website

• KIPCO is among the most actively traded stocks on KSE

• KIPCO constitutes 1.9% of market cap* of KSE

• Average daily trading volume in 2007 was 5.9 million shares

• Since Jan 2002, KIPCO stock price has appreciated at a CAGR of 57%

Apr-08

Total Outstanding Shares as on March 23, 2008: 1,049.6 million

Shareholding Pattern – March 2008

Primary Promoter

(AFI ) 44.3%

Treasury Shares 2.7%

Investment Funds6.2%

Investment Companies

31.9%

HNIs7.2%

Retail I nvestors

7.7%

55

1994

1988 Acquisition of United Gulf Bank (UGB)

Acquisition of stake in United Real Estate Company (UREC)1994

Acquisition of stake in Burgan Bank

Establishment of United Industries Company (UIC)1996

Formation of Gulf DTH (Showtime)1995

1996 Acquisition of Saudia Dairy and Foodstuff Company (SADAFCO) by UIC

1996 Acquisition of stake in Gulf Insurance Company (GIC)

Acquisition of stake in NMTC (Wataniya Telecom)1999

2003 Establishment of United Networks Company (UNC)

2005 Initial Public Offering of SADAFCO

2006 Established US$2 billion EMTN programme

2007 Sale of stake in Wataniya Telecom

Sale of stake in United Aviation, Jet Aviation & United Fisheries of Kuwait (UFK)2007

1998 Formation of Kipco Asset Management Company (KAMCO)

KIPCO: Key Milestones

Credit rating upgraded by two notches to BBB+ by S&P - Highest rated Holding Company in the MENA Region2007

66

3 Companies

Media

US$ 158 Million

US$ 164 Million

10 companies

Industrial

US$ 1,138 Million

US$ 283 Million

Total Assets

The KIPCO Group comprises over 50 companies across diversified sectors

21 Companies

Financial Services

5 companies

Management Services

5 Companies

Real Estate

US$ 18,092 Million

US$ 1.8 Million

Total Revenue

US$ 2,053 Million

US$ 1.2 Million

Total Assets

US$ 881 Million

Total Revenue

US$ 91 Million

KIPCO Group Companies: Asset Composition

On a 100% basis, Total Assets of the KIPCO Group Companies is over US$20 billion. Core Banking and Insurance assets account for 80% (US$16.4 billion) of the total assets of Group Companies. In addition assets of the KIPCO Parent* are US$3.6 billion.

12 Companies

Medical & Others

US$ 131 Million

US$ 46 Million

* Not included in the sectoral composition above

77

Media

84.5% 63.3% 50.6% 65.0%

Notes: 1. Stakes given are as on Dec 31, 2007 2. Overall group stake in Showtime is 78% 3. Overall group stake in United Gulf Bank is 87%

Financial Services

Geographic Presence in MENA

11 countries 6 countries Kuwait 22 countries

Shareholding

KIPCO: Core Operating Companies

88

Overview

Strategy

Financial Overview & Outlook

Agenda

Liability Management

In Summary

Annexures

99

Building Businesses

Strong managerial expertise

Thought leadership

RegionalOutlook

Investing in engines of

growth

Diversified revenue streams

Bein

g fi

rst

In th

e re

gio

n

MEN

A

Target ROE:

20%

Bala

nce

dP

ort

folio

Team approach

KIPCO Strategy: Corner Stones

1010

Invest in green field ventures to introduce new products & services in the region

Invest through M&A transactions to regionalise, build scale & attain market leadership

Invest in Our Success

Invest in ‘What We Know’

Invest with Financial Discipline

Invest primarily in MENA Region with selective global diversification

KIPCO: Investment Philosophy

1111

Listed Equity Portfolio

Private Equity/ Hedge Fund Portfolios

Listed Equity Portfolio

Rated Fixed Income

Private Equity

Seed Capital Investment

Invest or partner in regional products, Islamic & conventional products for the region

JVs/meaningful stakes in global companies

New Businesses

Existing Businesses

Global Regional

Focus onFinancial Services

Focus onFinancial Services

Selective Regional and Global Diversification

Selective Regional and Global Diversification

KIPCO Strategy: Looking AheadKIPCO Strategy: Looking Ahead

Increase ownership

Strengthen capital base

Deeper & faster regionalisation

Consolidation

KIPCO: Looking Ahead

1212

Overview

Strategy

Financial Overview & Outlook

Agenda

Liability Management

In Summary

Annexures

1313

2,402

569

724801

2004 2005 2006 2007

Consolidated Equity*

406

247

552

3,203

2004 2005 2006 2007

US$ million

130

86

173

1,889

2004 2005 2006 2007

US$ million

15,222 4,698

2,763

3,643

2004 2005 2006 2007

US$ million US$ million

KIPCO (Consolidated): Key Financials

* Attributable to equity holders of the Parent

Net Income*Total Revenues

Consolidated Assets

CAGR: 62%CAGR: 77%

CAGR: 180%CAGR: 134%

1414

2974

193 173

33

244187

112

GIC UGB BB KIPCO2006 2007

KIPCO & Core Companies: 2007 Financials

Net Income – KIPCO and Core Companies

29102

193 173142

268 271

1,889

GIC UGB BB KIPCO2006 2007

US$ million991%163%389% 40%

Net Income – KIPCO and Core Companies (Excluding Non-Recurring Gains**)

US$ million41%51%14% -3%

** Primarily on account of sale of NMTC (Wataniya Telecom)

1515

KIPCO Outlook for 2008: Overview

• MENA region fundamentals getting stronger in 2008

• KIPCO continues to regionalise

Organic growth through expansion in commercial banking, investment

banking, asset management and insurance sectors

Consolidation opportunity in the media sector

• Expanding financial services adjacencies

Long term savings and pension plan

Re takaful

• Making a Difference Project

Education: K-12 Projects in India, GCC and broader MENA Region

Housing: Residential Housing in Algeria, Saudi Arabia, Egypt and Syria

A focused strategy aimed at organic growth and continued margin expansion

would result in an improved portfolio.

This coupled with greater operational flexibility and continued discipline in

capital allocation better positions KIPCO to take advantage of the growth

opportunities in the region.

1616

187

306

2007 Normalised 2008E

33

52

2007 Normalised 2008E

112

141

2007 Normalised 2008E

Net Income – Burgan Bank

Net Income - GIC Net Income - UGB

US$ million

EBITDA - Showtime

US$ millionUS$ million

US$ million

58%

26%

64%

3

26

2007A 2008E

671%

Core Companies: Projections

1717

244

388

2007A* 2008E

Net Income

US$ million

On a normalised basis, KIPCO net income is projected to

increase at a growth rate of 59% over 2007-08

59%

* On a normalised basis

KIPCO (Parent): Projections

1818

Overview

Strategy

Financial Overview & Outlook

Agenda

Liability Management

In Summary

Annexures

1919

Financial Targets

Well defined financial targets at the Parent Level

Target Debt/Equity: not to exceed 2.5x

Target Net debt/investments: 20-30%

Financial Policies

Optimise sources of funds

Diversification of debt instruments from domestic to global markets

Extend maturity profile

Maintain adequate committed and uncommitted Lines of Credit to cover short term maturing debt

Proactive management of cost of funds to reduce spread vis-à-vis benchmark rates

KIPCO (Parent): Financing Policies & Targets

2020

Commercial bank term borrowing from Kuwaiti banks secured by collateral Established money market lines from Kuwaiti and regional banks

1990

First bond issue of KD12 million (US$41 million) in Kuwait 1994

Term borrowing from regional banks New borrowings only on unsecured basis 2000

US$100 million debut international syndicated loan completed No outstanding borrowings on secured basis 2004

Highlights

US$175 million international syndicated loan completed 2005

Assigned investment grade rating by Standard & Poor’s Set up US$2 billion EMTN programme Drawdown of US$635 million in two tranches under the EMTN programme

2006

First issuer of KIBOR based floating rate bonds 2001

Net debt/investment portfolio ratio < 1% Based on target net debt/ investment portfolio value, additional borrowing capacity of >

US$1 billion 2007

KIPCO (Parent): Liability Management

2121

Debt Type: Dec 2005*

Maturity Profile: Dec 2005* Maturity Profile: Dec 2007*

Debt Type: Dec 2007*

MTN65%

Term Loan14%

KD Bonds21%

1- 2 yrs .

6%

2- 3 yrs .

16%

3- 4 yrs .

47%

0- 1 yr.

31%

* Assuming, the exercise of extension option on KD Bonds

Total Gross Debt: US$ 963 million

0-1 yr.34.8%

4-5 yrs.25.4%

3-4 yrs.8.6%

2-3 yrs.10.6% 1-2 yrs.

20.7%Total Gross Debt: US$816 million

KD Bonds37.4%

Money Market3.5%

Syndicated Loans33.7%

Committed Lines

25.5%

Total Gross Debt: US$816 million Total Gross Debt: US$ 963 million

KIPCO (Parent): Debt Profile

2222

963952824

2005 2006 2007

1,290

9551

2005 2006 2007

- 327

857773

2005 2006 2007

KIPCO is now a Net Placer of Funds

Liquidity Position (C= A-B)

Gross Debt (A) Cash and Liquid Assets (B)

US$ million

US$ million

US$ million

KIPCO (Parent): Net Placer of Funds

2323

Key Rating Ratios December

2006December

2007

Cash Coverage (ST Debt) 0.5x 3.1x

Unutilised available lines coverage (ST Debt) 0.9x 1.4x

Cash Coverage (upto 3 year debt) 0.2x 2.3x

Unutilised available lines coverage (upto 3 year debt) 0.4x 1.1x

Net Debt/Investment Portfolio 29% 0.5%

Dividend/Interest Coverage 2.1x 8.7x

Core Investments/Investment Portfolio 99% 91%

KIPCO (Parent): Key Liquidity Ratios

2424

Overview

Strategy

Financial Overview & Outlook

Liability Management

In Summary

Annexures

Agenda

2525

Diversification by industry and asset class

Widespread presence across financial services, media, industrial and real estate sector

Over 50 companies under management Investment strategy continues to promote diversification across geography,

industry and asset class

Strong market conditions

Strong GDP growth registered by GCC economies (Kuwait:18.7% in 2006) All GCC markets in positive territory on YTD basis (Kuwait market up 17.0%) Strong oil prices, significant industrial & infrastructural investments drive

economic growth

Geographical diversification

Presence in 21 countries As at December 31, 2007; 36% of assets are from outside Kuwait

Excellent track record

16 years of continued profitability Effected successful investments (greenfield/ acquisitions) and profitable

exits

Experienced management team

Average stay with KIPCO of the executive management is 9 years Exec. Vice Chairman, Group COO & Group CFO have been with the Group for

over 18 years Recent inclusions have rich experience in varied sectors

Key Strengths: Business profile

2626

As at December 31, 2007, net debt/investments was 0.5% vis-à-vis the target 25-30%

Cash/debt due in 12 months of 3.1x Large liquid asset base (62% of investment portfolio in listed/ liquid assets) Liquidity monitored on a daily basis

Strong share price Backed by strong and supportive shareholders with strong regional standing Good access to domestic and international capital markets Well developed lender base in Kuwait, region and the world Balanced debt maturity profile

Very low leverage

Very good liquidity

Funding flexibility

Target net debt/investment portfolio: 25%-30% Dividends/interest + expenses coverage >2 times Dividends/interest coverage >3 times

Conservative financial policies

Key Strengths: Financial profile

2727

Moody’s FSR Rating: C-

S&P: BBB+/Positive

S&P: BBB+/Positive

Moody’s: Baa3

Key Rating Considerations

Strong Profitability

Adequate Capitalisation

Growing Franchise

Improved Funding Profile

Key Rating Considerations

Strong Operational Performance

Strong Competitive Position

Good Capitalisation

Improved Net Combined Ratio

Key Rating Considerations

Strong Operational Performance

Comprehensive Risk Management

Adequate Capitalisation

Improved Asset Quality

Key Strengths: High credit worthiness of Underlying Assets

2828

Thought leadership in the MENA Region – holds many firsts to its credit

First 100% private owned company in MENA to hold highest credit rating (BBB+/Stable/A2) from S&P

Strong credit profile – diversified lender base and balanced maturity

High quality of underlying assets – financial services operating companies have investment grade rating

Strong track-record of execution by the operating companies

Clear strategy and quality of management team

Why KIPCO?

2929

3030

Annexure 1: Management Team

Overview

Strategy

Financial Overview & Outlook

Liability Management

In Summary

Agenda

3131

Faisal Hamad Al Ayyar Executive Vice Chairman

Mr. Al Ayyar was the Managing Director of the KIPCO Group for the last 17 years. He is one of the most well-known and successful entrepreneurs in the Gulf region. His focus on shareholder value has enabled KIPCO to become one of the leading groups in the MENA area. He has been strongly involved in the transformation of group companies such as United Gulf Bank (UGB), Gulf Insurance Company (GIC), Burgan Bank, SADAFCO and Showtime. Mr. Al Ayyar is a former fighter pilot of the Kuwait Air Force.

Pinak Pani Maitra Group CFO

Mr. Maitra has worked for the KIPCO Group for more than 18 years. He is a key member of the Group’s risk management and strategy development team. He is also responsible for performance analysis and budget evaluation of KIPCO and its companies. He is a non executive Board Director with a number of KIPCO’s operating subsidiary companies, including Showtime, Hunter Capital and Pulsar Knowledge Centre, Delhi. Prior to joining KIPCO, Mr. Maitra worked for the accountancy firms Arthur Andersen and Arthur Young.

Ahmad Essa Al Ajeel Vice President, Marketing/R&D/PR

Mr. Al Ajeel has worked for the KIPCO Group since 1994. His current responsibilities include financial institution relationship development and coordinating Group marketing activities. Prior to joining KIPCO, he worked for the Industrial Bank of

Japan and the Kuwait Foreign Trading Contracting & Investment Company. Mr. Al Ajeel is a non-executive Board Director of United Networks, Kuwait.

Samer Khanachet Chief Operating OfficerMr. Khanachet became Chief Operating Officer of KIPCO in 2008. For the previous 17 years, he was President of United Gulf Management, KIPCO’s subsidiary in the United States, where he identified strategic resources to support KIPCO’s activities in

financial services, media and other sectors across the MENA region. He holds BSc degrees from theMassachusetts Institute of Technology (MIT) and an MBA from Harvard University. He sits on boards and committees at the American University of Kuwait, MIT, Harvard and the Forsyth Institute.

Lakhdar Moussi Senior Vice President, Financial Services

Mr. Moussi joined KIPCO Group in December 2005 to assist and advise on the Group’s expansion plans in the insurance, manufacturing and real estate sectors. He brings over 36 years experience in insurance, project finance, banking, investment, manufacturing, consulting and contracting. He has worked in Algeria, France, Bahrain and Canada. Over the last 16 years, he has been extensively involved in the region’s insurance industry through his association with ARIG, Bahrain.

Declan Sawey Group Treasurer

Mr. Sawey is a professional with over 16 years experience in treasury and investment management. Prior to joining KIPCO in 2007, Mr. Sawey was Head of Asset & Liability Management for HBOS Corporate. Mr Sawey also has extensive Middle East experience, having worked for Gulf Bank and the Kuwait Investment Authority.

He is a Fellow of the Institute of Chartered Accountants in England and Wales, a Chartered Financial Analyst (CFA) Charter holder and a Member of the Association of Corporate Treasurers (MCT).

Executive Management

3232

Antony Miles Strover Advisor Corporate Finance

Mr. Antony Miles Strover has been associated with the KIPCO Group since 1996. Mr. Strover has been involved in acquisitions, structuring and financing of various transactions of the KIPCO managed companies. He also advises the KIPCO management on investment structure, governance and control policy, and provides taxation-related advice to KIPCO companies. Mr. Strover is registered as an authorised auditor by the Ministry of Commerce of the State of Kuwait and is also a Fellow of the Institute of Chartered Accountants in England and Wales. Prior to joining KIPCO, Mr. Strover was a Partner in Peat Marwick Mitchell & Co. Mohsen Ali Hussain Group Chief Internal Auditor

Mr. Hussain joined UGB in 2001. He was appointed as KIPCO Group Chief Internal Auditor in May 2006. He has over 15 years of experience in public accounting and internal auditing and was previously employed by KPMG, Arab Insurance Group (ARIG), National Bank of Bahrain and Ahli United Bank. He is a Certified Public Accountant (CPA), a Certified Information System Auditor (CISA), a Certified Internal Auditor (CIA) and hold a BSc in Accounting.

Robert Drolet Senior Vice President, Technology & Media

Mr. Drolet is responsible for the supervision, development and optimisation of KIPCO's communications and media portfolio. Prior to joining KIPCO in 2006, he led and advised on successful turnarounds, major merger and acquisition transactions and strategic alliances. Mr. Drolet has 14 years experience in the telecom and media industry – he was CEO of Continental Europe, CEO of US Communications Solutions and Global Chief Commercial Officer for Cable & Wireless, following senior positions in the UK cable industry and at Bell Canada International. He is a member of the Québec Bar and a Solicitor (England & Wales).

Mazen HawaGroup Vice President, Finance & Operations

Mr. Hawa joined KIPCO in 2001. His responsibilities include Group financial control and serving as advisor to a number of KIPCO’s operating subsidiaries. He is Vice Chairman of the United Pharmaceutical Company, Kuwait and a non-executive Board Director of the Fajr Al Gulf Insurance Company, Lebanon. He is a certified member of the American Institute of Certified Public Accountants and the Institute of Management Accountants. Prior to joining KIPCO, Mr. Hawa worked for the assurance and business advisory group of Arthur Andersen.

Robert Hipkins Group Communication Director

Mr. Hipkins has responsibility for KIPCO’s corporate communications. He joined KIPCO in February 2007 and was previously a senior consultant with Hill & Knowlton, one of the world’s leading public relations companies. Mr. Hipkins has over 20 years experience in public relations and marketing in the UK, the United States, Europe and the Middle East. He is a graduate of Edinburgh University, Scotland.

Bibhau TamangGroup Vice President, Financial Control Mr. Tamang has been with KIPCO since 2000. He brings with him over 16 years of experience in strategic planning, debt capital markets, mergers and acquisitions, initial public offerings and greenfield projects. He has been instrumental in establishing Pulsar Knowledge Centre and is also on the Board. He has done his MBA from Brigham Young University, USA. Prior to joining KIPCO, Mr. Tamang worked at Novell Inc.

Executive Management (Contd.)

3333

Annexure 2 : Major Investments

Overview

Strategy

Financial Overview & Outlook

Liability Management

In Summary

Agenda

3434

0.0

0.5

1.0

1.5

2.0

2.5

Jan-02 Apr-03 Jul-04 Oct-05 Jan-07 Apr-08

Established as an offshore commercial bank in 1980, acquired by KIPCO in 1988 and transformed into a leading investment bank

Licensed as a universal wholesale bank

Operations include asset management, corporate finance, equity, real estate, treasury and commercial banking

Diversified asset base with assets under management of US$7.3 billion

Rated by Moody’s (Baa3/Stable)

Dual Listing on Kuwait Stock Exchange & Bahrain Stock exchange

101

81

43

268

2004 2005 2006 2007

CAGR: 84%2.18

Sou

rce:

Blo

ombe

rg,

Bah

rain

Sto

ck

Exc

hang

e

Sou

rce:

Com

pany

US$ million

US$Net Income Share Price Movement

United Gulf Bank

3535

0.0

1.0

2.0

3.0

4.0

Jan-02 Apr-03 Jul-04 Oct-05 Jan-07 Apr-08

Incorporated in 1962; acquired by KIPCO in 1996 Market leader in Kuwait in life, property and casualty insurance segments Comprehensive offerings include life, health, motor, property, casualty, marine and aviation

insurance Network of 10 local branches and operations in six countries: Kuwait, Bahrain, Saudi Arabia,

Lebanon, Egypt and Syria Rated by Standard & Poor’s (BBB+/Positive) Listed on Kuwait Stock Exchange

Marine InsuranceAviation InsuranceCasualty Insurance Property InsuranceHealth Insurance Life Insurance

142

29

2024

2004 2005 2006 2007

CAGR: 92%

Sou

rce:

Blo

ombe

rg ,

Kuw

ait

Sto

ck

Exc

hang

e

Sou

rce:

Com

pany

2.98

US$ million

US$Net Income Share Price Movement

Gulf Insurance Company

3636

0

1

2

3

4

5

Jan-02 Apr-03 Jul-04 Oct-05 Jan-07 Apr-08

Incorporated in 1975 and privatised in 1995

3rd fastest growing bank in terms of profitability

Fostering transparency and governance through international best practices

Technology-driven, innovative provider of financial services

Network of 20 branches, 42 ATMs, 6 K-Net ATMs and 24 Kiosks

Rated by Standard & Poor’s (BBB+/Positive) and by Moody’s (A1/Stable)

Listed on the Kuwait Stock Exchange

Corporate Governance

M-Commerce SolutionsBeebank ServicesTechnology Leader

271

193

145

101

2004 2005 2006 2007

Net Income Share Price Movement

Sou

rce:

Blo

ombe

rg,

Kuw

ait

Sto

ck

Exc

hang

e

Sou

rce:

Com

pany

3.99US$ million

CAGR: 38%US$

Burgan Bank

3737

Highest RevenueHighest Revenue22 Territories in MENA Region

22 Territories in MENA RegionOffering

Over 50 Channels

Offering Over

50 Channels

Incorporated in 1995

Leading DTH Pay TV operator

Joint venture between KIPCO and Viacom Inc.

Widest range of program offerings: Over 50 channels

Operating licenses for 22 territories in the MENA region

Highest revenue among all TV platforms – Pay or Free to Air

Exclusive rights of FAPC for three seasons starting August 2007

Achieved positive EBITDA in 2007

Gulf DTH (Showtime)