NIG Prospectus - London Stock Exchange

Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:20 pm – mac5 – 3776 Section 10b : 3776 Section 10b30 Proposed dividendSubject to the requisite consent of the relevant authorities and approval from the generalassembly, the board of directors have proposed to distribute the following dividends for the yearended 31 December 2006 to the shareholders of record as of the date of the general assembly:a – Cash dividend of 70 Fils per share (2005: 60 Fils per share);– bonus shares of 10% (2005: 10%) of paid-up share capital;bThe following distributions for the year ended 31 December 2005 to the shareholders ofrecord on the date of the general assembly, were approved at the general assembly held on24 April 2006 and were subsequently distributed.– cash dividend of 60 Fils per share amounting to KD42,913 thousand;– bonus shares of 10% of paid-up share capital amounting to KD7,467 thousand;– one share of the subsidiary, National Industries Company for Building Materials – SAK(Closed) for every 10 shares held in the parent company.cFurther the shareholders, at the general assembly held on 24 April 2006, approved anamount of KD5,000 thousand to be distributed as donations from the profit for the yearended 31 December 2005.31 Defined benefit pensions schemesThe group has defined benefit pension schemes for the employees of certain subsidiaries in theUnited Kingdom. The following disclosures cover all the schemes on an aggregated basis. Theschemes are closed to new members and are not accruing further benefits. Actuarial calculationshave been made in order to determine pension liabilities and pension expenses in connection withthe group’s defined benefit pension schemes. The following assumptions have been used incalculating the liabilities and expenses incurred:200611112200511112Discount rate at 30 November.................................................................... 5.20% 4.90%Expected return on plan assets .................................................................. 6.20% 5.70%Future salary increases .............................................................................. N/A N/AFuture pension increases ............................................................................ 2.70% 2.70%Consolidated statement of income200611112200511112KD ‘000 KD ‘000Interest cost................................................................................................ 1,410 1,613Expected return on assets.......................................................................... (1,243) (1,453)Actuarial loss .............................................................................................. 231 510Loss on curtailments and settlements ...................................................... –1111297211112Net annual charge included in general and administrative expenses ........ 398 111121,64211112The actuarial loss of the schemes in excess of 10% of the present value of the defined benefitobligations are being charged as an expense over periods up to 18 years.F-42