NIG Prospectus - London Stock Exchange

Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:20 pm – mac5 – 3776 Section 10b : 3776 Section 10b5 Profit from operationsProfit from operations is stated after charging:200611112200511112KD ‘000 KD ‘000Depreciation................................................................................................ 4,640 4,518Staff costs .................................................................................................. 28,201 1111239,088111126 Disposal of subsidiaries/businessesSignificant disposals during 2006:a. The parent company sold 28%, out of its 100% owned subsidiary Ikarus IndustrialPetroleum Company SAK (Closed), for a consideration of KD 64,140 thousand resulting in aprofit of KD34,258 thousand.b. The parent company sold 9%, out of its 80% owned subsidiary Denham Investment Ltd. fora consideration of KD17,487 thousand resulting in a profit of KD14,264 thousand.c. The parent company realised a profit of KD21,083 thousand on distribution of shares of thesubsidiary National Industries Company for Building Materials – SAK (Closed), whichrepresents the difference between the carrying value amounting to KD18,494 thousand andthe fair value amounting to KD39,577 thousand of the distributed shares. Further thisdistribution has diluted the group’s holding in the subsidiary from 74% to 51%.d. The parent company sold its 100% owned subsidiary Bunyan Al Mashrik Co. – KSCC [formerly named National Company for Readymix Concrete – SAK (Closed)]; for aconsideration of KD7,387 thousand resulting in no profit or loss in the consolidatedstatement of income.Significant disposals during 2005:a. The group disposed Newage Transmission Limited, a wholly owned subsidiary located in theUnited Kingdom, for a cash consideration of KD532 thousand resulting in a loss of KD1,264thousand.b. The group disposed Blanson trading division of BI Plastic and the group’s 50% interest inPerry Barromedical Inc. for a net combined cash consideration of KD1,117 thousandresulting in a loss of KD213 thousand.c. Provision of KD904 thousand has been made for pension obligations relating to businessesdisposed of in the United Kingdom.d. The group disposed 1% of its stake in its 52% owned subsidiary Noor Financial InvestmentCompany – KSC (Closed) for a consideration of KD564 thousand which resulted in a profitof KD24 thousand.F-32