Dear Shareholders,

It is my pleasure to present to you the financial statements of Asiya Capital Investments Company K.S.C.P. ("Asiya") for the year ended 2024.

Summary

The year 2024 was an important one for Asiya's core investments. The Board worked collaboratively to take a number of critical decisions aimed at enhancing the value of our portfolio and supporting long-term performance. Some of the key developments and initiatives during the year included:

1. Performance of SAMHI Hotels Limited ("SAMHI")

   Following its IPO in September 2023, Asiya became the largest shareholder in SAMHI, which is listed on both the National Stock Exchange ("NSE") and the Bombay Stock Exchange ("BSE") in India.

   Operationally, SAMHI has demonstrated strong financial performance. It has continued to deleverage and is poised to report its first annual profit after tax since inception. However, due to a combination of market volatility, outflows of international capital, and the expiry of the IPO lock-up period, the stock has traded at a significant discount relative to its peers.

2. Active Shareholder Role in Atlantic Gulf and Pacific ("AGP")

   We have maintained an active role in the oversight of AGP, working closely with fellow shareholders to mitigate risks. In this regard, we undertook several initiatives to improve corporate governance, enhance the capital structure of AGP's underlying businesses, and facilitate changes in executive management. These steps aim to align management incentives with performance objectives and drive long-term growth.

3. Expense Rationalization

   Our cost rationalization initiatives continued in 2024, resulting in a 9% reduction in annual operating expenses. Total operating expenses decreased to KWD 0.87 million in 2024, compared to KWD 0.95 million in 2023.

In the remaining sections, we provide more detail regarding our two core investments.

SAMHI

As stated above, subsequent to the IPO, SAMHI has delivered strong operating performance. Key achievements include:

• The portfolio has 4,939 operating rooms across 32 properties as of 31 December 2024.
• For the 9 months ended 31 December 2024, SAMHI had a profit after tax of INR 396 million (compared to a loss of INR 2,459 for the 9 months ended 31 December 2023).
• Investors like Abu Dhabi Investment Authority and Societe Generale had bought shares of SAMHI through block/bulk deals in 2024.

However, the stock of SAMHI continues to trade at significant discounts to other publicly listed hospitality companies in India. We are optimistic that, as the company becomes profitable and delivers on certain growth and deleveraging milestones, the valuation multiples of the stock will converge to peer group companies.

AGP

AGP, headquartered in Singapore, is a market-leading gas infrastructure company in Asia. AGP's key holdings include:

• City Gas: Minority stake in 19 gas distribution concessions in India (a geographic area covering 85 million people).
• LNG JV: 20% stake in an LNG Terminals business.
• EPC: Majority stake in an Engineering Procurement and Construction ("EPC") business in Philippines and engineering operations.

In 2024, in collaboration with other shareholders, we continued the restructuring exercise, initiated towards the end of 2023:

• The City Gas business attracted additional investment by a consortium of Japanese investors, which enhances the long-term profile of the business. The transaction was completed in March 2024.
• This transaction diluted AGP's holding in the City Gas business to approximately 13.4%, but released the needed liquidity to support the EPC business with needed liquidity to stabilize operations. For the EPC business, we instituted a new, properly-incentivized management team and implemented improved corporate governance to enhance sustainability.
• The LNG JV continued to find attractive investment opportunities and is working a strong pipeline of LNG terminal projects in Vietnam, Indonesia, Australia, and India.

Financial Performance

Key highlights of our financial performance for 2024 are as follows:

• Net Profit: Asiya recorded a net profit of KWD 0.28 million in 2024, compared to a net loss of KWD 14.21 million in 2023. The improvement was driven primarily by:
  • A net gain of KWD 0.31 million on financial assets at fair value through profit or loss, compared to a loss of KWD 14.1 million in 2023.
  • Reduced operating expenses, as noted above.
• Earnings Per Share (EPS): EPS improved significantly to 0.35 fils in 2024, compared to (17.77) fils in 2023.
• Total Assets and Shareholders' Equity: Both remained stable at KWD 70.62 million and KWD 69.58 million, respectively.

In line with our financial performance and long-term capital priorities, the Board is not recommending a dividend distribution for the year.

Looking Ahead

The outlook for 2025 presents several challenges. Increased trade tensions and related uncertainties in capital markets could impact the performance of our core investments. In particular, these developments have the potential to increase our overall cost of capital and impact our ability to raise capital for the various business units within AGP. In response, our key priorities for 2025 are:

1. Support SAMHI: We will continue to engage actively at the board level to help SAMHI reach its full operational, financial, and market potential. We are optimistic that improved fundamentals will lead to a re-rating of the stock closer to its fair valuation.
2. Restructure AGP: Our focus will remain on completing the restructuring of AGP, especially its EPC subsidiary. The company is also focused on a potential strategic investor to unlock further value and enhance sustainability. The company is also working on refinancing efforts to achieve a more sustainable capital structure and overall reduction in its financing costs.
3. Asset Monetization: We aim to monetize several smaller assets, including a land parcel in Kuala Lumpur. In addition, we are in the process of redeeming capital from our private equity investments, most of which are nearing the end of their holding periods.

Closing Remarks

On behalf of the Board of Directors, our employees, and myself, I extend our deepest gratitude to His Highness the Amir of Kuwait Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, and to our Government for its steadfast support of Kuwait's national institutions and companies. We pray to Almighty God to continue blessing our beloved homeland with safety, security, and prosperity.

Sincerely,

Dari Ali Al-Rasheed Al-Bader
Chairman,