Global Investment House
A success story
May 2008
Company overview
2
A leading GCC and MENA player
Overview
Global Investment House is a leading asset management and investment banking company providing a comprehensive range
of financial services with operations across the GCC, the wider MENA region and in other emerging markets, with around 457
employees globally
Listed on the Kuwait Stock Exchange (since May 2003), the Bahrain Stock Exchange (since October 2004) and the Dubai
Financial Market (since September 2005) and on LSE (expected 21 May 2008)
Rated BBB (long term) and F3 (short term) by Fitch (4 June 2007)
Market capitalisation of approximately KD1.0bn (US$3.8bn) as of 18 May 2008 1, expected to go up to KD 1.3 bn (US$ 5 bn)
post GDR
5 business pillars: creating an integrated client driven business model
Asset Management Principal Investments Investment Banking Real Estate Brokerage
& Treasury
Net operating income Net operating income Net operating income Net operating income Operations to commence in
KD 23.2m2 KD 113.8m2 KD 13.8m2 KD 3.5m2 2008
• Client base an advantage • Supports AM by building • Creates investment • Builds expertise that • Helped by strong research
to other pillars track record and making opportunities for Asset supports IB and AM capacity and AM client
• Non-discretionary portfolio co-investments Management clients businesses base
will support initial • Supports IB by making • Generates principal • Completes full product
development of Brokerage investments in start-ups investment opportunities range
Supported by brand building and innovative research product
3
(1) Pre-GDR
(2) As at 31 December 2007; segment figures are inclusive of inter segmental revenues
History of strong growth
Global has grown significantly since its inception
1998/99 2008
1 office in Kuwait Presence in 16 countries across MENA region
47 employees 457 employees1
Kuwait focused Asset Management and IB business Five pillars with wide range of products
4 funds with US$653m AuM 30 funds with US$9.3bn AuM4
Approximately US$58m of shareholders equity Approximately US$1.1bn in shareholders equity4
Share price and market capitalisation2 Geographic presence3
Share price Market cap
(KD) (KD million)
1.4 1,000
1.2
800
1.0
0.8 600
0.6 400
0.4
200
0.2
0.0 0
Jun-03 Jan-04 May-08
Jul-04 Feb-05 Aug-05 Mar-06 Sep-06 Mar-07 Oct-07 Apr-08
Market Cap Global KSE (rebased) Brent crude oil price (rebased)
(1) As at 31 December 2007 Source: FactSet, Bloomberg
(2) Kuwait Stock Exchange
(3) Also has a presence in Pakistan, India and Hong Kong
4
(4) As at 31 March 2008
Strategy
“To be the preferred Investment Bank in the region”
Establish a significant local presence in each market in the GCC
and wider MENA region where they operate
Invest in organic growth:
Market expansion: Local to International
– Grow Saudi operations to similar scale as existing Kuwaiti
Geographic operations
Product development: Local to Int‟l
expansion – Invest in expanding existing operations in the region, particularly
Kuwaiti and Regional and
International International Egypt and Qatar, in the coming years
products products
in Kuwait market in GCC market Strategic investments in MENA and selected emerging market
countries to expand presence
GCC and Country-specific Virtually
International product local player
products developed and placed in every Increase proportion of assets in its private equity and other
Local
in Kuwait market in the same country market
alternative asset funds which generate higher fees
Preparing to move into fourth-quadrant while enhancing growth in each of the quadrants
Product Build on AM reputation and client base to introduce new products to
and service new markets
expansion
Increase fee generating activities and achieve a better balance of
revenue contribution from the five pillars including Investment
Banking and Brokerage
5
Capital increase
Successfully concluded a USD 1.150 bn GDR issuance with expected LSE listing on 21 May 2008
Geographical split of all demand
UK (11%) Pre-GDR Post-GDR
Europe (10%)
US (10%) Number of issued ordinary shares 94.6 million 125.2 million
GCC ex Saudi (34%)
Market cap (US$ equivalent) US $ 3.8bn US $ 5.0bn
Saudi Arabia (32%)
Asia (2%) Book value* per ordinary share (US US $ 1.23 US $ 1.82
$ equivalent)
Geographical split of institutional demand * Based on 31 March 2008 adjusted financial
results
UK (15%)
Europe (3%)
Issue price per GDR US $ 18.75
US (13%)
Book value per GDR US $ 9.12
GCC ex Saudi (44%)
* Based on 31 March 2008 adjusted financial
Saudi Arabia (21%) results
Asia (3%)
Investor type Use of global offer proceeds
Up to 25% for organic growth in the GCC and MENA regions
Long (36%)
Up to 25% as co-investments in new AuM funds in the short to medium term
Hedge (15%)
Up to 50% for acquisitions to enhance distribution channels, including Asset
ME HNWI (16%)
Management businesses or a commercial bank
ME institutional (33%) 6
Economic environment
7
Kuwait overview
Country Rating • Aa2 (Moody‟s), AA- (S&P), AA- (Fitch)
Federal Structure • The State of Kuwait is organized as a
parliamentary constitutional monarchy
Nominal GDP • US$ 102 billion (2006), 21.6% growth over
previous year
Population • 3.1 million (2006 estimate) – 1.2 million
non-national
• US$ 32,015 in 2006
Per Capita Income
• Amongst the highest in the world
• 5th largest oil reserves in the world
Proven Oil Reserves • 102 billion barrels proven oil reserves
(8.3% of the world‟s total)
• Tied to a basket of major currencies
Pegged Exchange
Rate
8
Kuwait – key economic statistics (Y/E 2006)
Real GDP Growth (%) and Nominal GDP Value (USD bn) Oil Production
120 19%
3.0 70
100 2.5 60
14%
80 50
2.0
40
60 10% 1.5
30
40 1.0
5% 20
20 0.5 10
0 0% 0.0 0
2002 2003 2004 2005 2006 2002 2003 2004 2005 2006
Nominal GDP (US $ bn) Real GDP Grow th Rate Crude Oil Production, b/d mn Crude Oil Export Price, US$bn
Composition of GDP (%) Current Account and Inflation
Electricty & water
Transpo rt, stro rage
1%
& co mmunicatio n
5%
Co nstructio n 60 10%
2%
Who lesale & retail 50
4%
40
Oil& gas
Financial Institutio ns 53%
30 5%
1 2%
20
Real Estate
4% 10
Other
13% 0 0%
2003 2004 2005 2006 2007
M anufacturing
6% Current account (USD bn) Consumer price index
Source: Central Bank of Kuwait & Global Research 9
Gulf Cooperation Council (“GCC”) overview
Bahrain Kuwait Oman Qatar Saudi Arabia UAE
Created in 1981, GCC is a regional organisation comprised of 6 nations with shared objectives for economic and social
development.
The GCC holds 40% of world‟s proven oil and 23% of natural gas reserves.
The GDP of GCC states is estimated to be about USD 735 billion; comparable to Mexico (USD 743 billion), Australia (USD 745
billion) & Netherlands (USD 665 Billion).
Due to high oil prices, the Gulf‟s current account has moved from a deficit in the 1990s to a strong surplus in ‟02-06.
Current account surplus of the GCC states was about USD 200 billion in 2006.
Total export earnings of the six GCC states were more than USD 1.5 trillion between 2002-06.
Total foreign assets held by GCC countries is about USD 1.6 trillion; China‟s FX reserves is USD 1.1 trillion
Average per capita income of GCC states is fairly high at USD 20,500 (Portugal 18,000 / Korea 18,000)
Source: Goldman Sachs, Institute of International Finance, IMF
10
Strong macroeconomic fundamentals
Strong GDP growth in GCC GCC among the fastest growing economies in the world
520 12
495 10.010.0
Real GDP growth rates (%)
500
10
GCC real GDP (US$bn)
470 8.3
480 7.3
8 7.2
6.5
460 6.1 6.5
444
6
440 3.6 4.0
3.4
415 4 2.9
420 2.42.0 2.7 2.1 2.7 2.7
2
400
380 0
Euro Japan UK US Brazil GCC Russia India China
360
Area
2004 2005 2006 2007E 2006 2007
Source: Global insight Source: IMF
Record levels of liquidity on the back of high government Low levels of correlation with developed and other emerging
surpluses markets
300 Correlation with international equity markets 2001 to 2007 (%)
Current account surplus (US$bn)
259
239
250
Correlation matrix GCC
200
FTSE 0.19
150 120129
S&P 0.06
100
49 52 Nikkei 0.24
37 42
50 22 25
7 8 3 3 MSCI EM 0.15
0
MSCI World 0.09
GCC Saudi UAE Kuw ait Qatar Oman Bahrain
2006 2007
Source: IMF Source: Global and Reuters 11
Stock market performance
Kuwait Stock Market
Transactions Volume Value Market Cap No. of
Year ('000) (mn shares) (US$ bn) (US$ bn) Companies Index Gains
2000 171.0 6,758.0 4.4 21.6 86 2.8%
2001 355.1 16,299.0 12.1 28.2 88 28.8%
2002 521.3 27,834.0 22.7 35.8 95 24.1%
2003 1,081.7 49,563.0 55.1 61.5 108 63.9%
2004 1,056.9 33,543.7 51.8 75.2 125 11.9%
2005 1,964.2 52,337.6 97.6 142.1 158 66.4%
2006 1,486.2 37,657.9 59.2 143.8 180 -9.2%
2007 2,101.1 70,432.8 135.5 210.5 196 30.0%
Source: ‘Global’ Research
The reasons for the strong growth in the markets are still present:
Strong macro-economic growth
Strong corporate earnings
Strong liquidity
High business and consumer confidence.
High oil prices
12
Investment highlights
13
Investment highlights
Comprehensive Asset Management and Investment Banking
product offerings
Extensive geographic reach
Large and expanding client base
Well positioned to benefit from high regional growth
Strong historical performance
14
Comprehensive Asset Management and Investment Banking
product offerings
Asset Management Investment Banking Research Brokerage
Balanced
Start-ups Pan MENA coverage On-line facility
& bond funds
Equity funds IPOs 100+ companies
Telephone facility
Money market funds Equity placing Indices
OTC transactions
Islamic funds M&A
Derivatives transactions
Corporate Bonds and
Funds of hedge funds syndicated loans
Margin trading
Private equity funds Islamic finance
Corporate advisory & Securities trading and
Real estate funds structuring settlement
Portfolio management Margin lending Custody services
Innovation driving new product offerings in the region
Research Funds Start-up promotion
Among first pan-MENA focused research Introduced funds of hedge funds Innovative approach in starting new businesses
Over 70,000 subscribers Launched MENA country focused equity funds and attracting third party investors
First to launch audited regional indices Offers private equity funds Generates investment opportunities for clients
and Global
15
Extensive geographic reach
Year of Activities
Country Br
Unique MENA based platform that is able to provide a full Expansion strategy –
entry AM PI IB o RE Investment Banking product suite across the region Saudi
1998 Kuwait ● ● ● ● ●
2003 Bahrain ● Build on existing client
2004 UAE ● ● relationships in Saudi
Oman ● Recruit up to 35
employees by year-end
2005 Jordan ● ● ● ● ●
2008
Tunisia ● ● ● Establish research hub -
India ● to enhance brand name
Qatar Launch
– Investment Banking:
Hong Kong ● aimed at mid-market with a
2006
Pakistan ● ● ● focus on equity
placements and Islamic
Sudan ● ● structured products
Yemen – Asset Management:
Egypt ● ● ● existing products to
Saudis, followed by Saudi
2007 Iran ● AM Asset Management funds
– Brokerage: to tap increase
Saudi Arabia PI Principal Investments Bro Brokerage
● Existing direct
and indirect Planned
operations in trading activity in Saudi
2008 Turkey IB Investment Banking RE Real Estate operations (medium term)
16
Large and expanding customer base
Dedicated client relationship
Number of clients
management
6,525 Invested in building dedicated
5,573 client relationship teams
4,820
4,160 responsible for sales and
Growth
3,218 building client relationships
2,400
1,716
1,030 23 client relationship managers
in Kuwait alone
2000 2001 2002 2003 2004 2005 2006 2007
14 team members for the MENA
region
Diversity (by AuM) Length of relationships
As at 31 Jan 08 As at 31 Jan 08 2 sales professionals in Abu
Dhabi, 2 in Bahrain, 9 in Dubai
Number of clients for and 5 Jordan
1 year or less (26.1%)
Institutional investors (78.7%)
1 to 5 years (47.5%) The AM client base provides
Retail investors (21.3%) 6 to 8 years (18.0%)
distribution platform for IB,
More than 8 years (8.4%)
supports the roll out of the
brokerage service and produces
referral business for the real
estate business
17
Well positioned to benefit from high regional growth
Regional themes Global platform supporting future expansion
Leading Asset Management franchise with truly pan-MENA reach
Growing wealth Large network of over 6,500 clients, to be grown through geographic and product expansion
Sizeable number and scope of funds with potential to allow increased fees per client
Significant experience in the highly regulated Kuwaiti market, allowing Global to take expertise to
Developing regional new markets
capital markets Innovative Investment Banking products providing access to underserved mid-market segment
Wide geographic placement reach and services
Significant principal investment expertise
Unique investment
Local relationships and experience provide access to deals not open to international players
opportunities
Strong and developed track record
Increase assets under management supported by large number of well performing equity funds
Increased investment
and trading activity Pan-MENA trading and placement capability, supporting the establishment of the brokerage
business
Local know-how and existing client relationships
Liberalisation of
Licences to operate in Saudi, Egypt and Qatar
regional markets
Established relationships with regulators
18
Strong historical performance
Performance Profitability Revenue growth
Global 189% 64% 174% 38% 40%
ROE% Ind1,2 27% 31% 52% 17% n/a
100% 200
Global Industry¹
154
80% 72.5% 150
110
KDm
Financial 60% 43.9% 51.6%
100 80
39.1% 32.2%
40%
50 29
20% 18
22.1% 18.8%
16.8% 17.4%
0% 0
2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
Principal Investments Managed funds
Annualised gross Top performing Average annual
return (%) Selected fund types
funds returns %
38.0%
Global 10 large cap
Conventional funds 32.2%
index fund
22.5% Global Al-Durra
Investment 17.7% 18.7% 18.9% Islamic funds
Islamic fund
34.6%
Fund of hedge funds Zenith fund 17.8%
Real estate funds GCC Real Estate Fund 6.0%
2003 2004 2005 2006 2007
19
(1) Average of all banks and financial institutions in ME with total assets > US$1bn (Source: Bankscope);
(2) Growth in total operating income (IFRS)
Business segments
20
Integrated model
Used to build brand
Helped by strong
Research name in new markets
research capacity and
prior to launching new
AuM client base
products and operations
Completes full product
Expertise in research
offering to clients
gives an advantage to
Brokerage Investment Banking
AM and IB
Client base an advantage
other pillars
Non-discretionary Client base Creates investment
portfolio will support initial opportunities for Asset
development of Management clients
Brokerage Generates principal
Asset Management Real Estate investment opportunities
Supports AM by building
track record and making
co-investments Builds expertise that
Supports investment Principal Investments supports IB and AM
banking by making businesses
investments in start-ups
21
Asset Management
Overview
Background and development Strategy
Launched in 1998, with four funds by the end of 1999 Create specialised teams in certain regional offices
31 Dec 2007 AuM of KD2.3bn (US$8.6bn) Continue to develop innovative new fund products to meet
Mix of 30 conventional, Islamic and alternative funds regional demand
Principal investments experience and track record across Focus on higher margin alternative investments products
the region to launch a range of private equity funds Use Research as a marketing tool
Comprehensive product offering
Managed funds
Portfolios Others
MENA or GCC Alternative investments
Products
Money Funds of
Balanced Bond Equity Islamic Private Real Dis- Non-dis- Equity
market hedge cretionary cretionary
Murabaha
Placement
funds Equity Estate
funds
No of funds 2 1 8 3 2 6 5 3 N/A N/A N/A N/A
18 28 420 11 85 56 394 39 N/A N/A 192 137
AUM1,2
Total: 1,051 Total: 967 Total: 329
(1) As at 31 Dec 2007 – excludes Egypt fund which was launched in February 2008
(2) KD millions 22
Asset Management
Attractive growth and asset composition
AuM growth Managed funds composition
Funds Clients By fees (for the year ended 31 By assets (as at 31
AuM Dec 2007) December 2007)
%
KDbn 8% 6% 4%
10%
3.5 6,525 7,000 1% 1% 3% 4% 4%
5,573 2% 3%
3.0 6,000 2% 21% 15% 22%
4,820 4% 37%
2.3 3% 12% 3%
2.5 4,160 2.1 5,000
14.0% 9% 13% 8% 11% 1%
2.0 1.8 4,000
18.2% 6% 6% 8%
13.6%
1.5 41.2% 3,000 51% 4%
1.0
46.6% 45.3%
1.0 8.5% 2,000 51% 49% 47%
43.6% 29% 41%
0.5 44.8% 1,000
39.7% 36.5%
47.9%
0.0 0
2004 2005 2006 2007 2004 2005 2006 2007
Managed funds Portfolio Other Client Equity Hedge Islamic
Money market Private Equity Real Estate
Other
Managed funds and portfolios house the majority of Historically focused primarily on MENA equity stocks – the
assets (86%) bedrock of managed funds
„Other‟ comprises Murabaha and companies floated by However, Private Equity playing an increasingly important
Global role which is expected to continue
23
Principal Investments and Treasury
Overview
Background
Started in 1999 with KD9m (US$30.5m) to facilitate first stage of expansion outside of Kuwait; approximately KD659m
(US$2.4bn) invested as of 31 December 2007
Treasury operations to pursue short-term opportunistic investments and for general treasury management
Principal Investment criteria:
1. Attractive fundamentals and potential to generate attractive returns in their own right
2. Additional strategic benefits that support one of:
– our regional expansion: investments in associates outside of Kuwait providing new distribution channels and access to new markets
– our product expansion: investments in related financial service companies that can strengthen some of Global‟s five business pillars
– Supports our Asset Management and Investment Banking business
– Co-investments in private placements or new Global funds
24
Principal Investments and Treasury
Portfolio analysis
Principal investment portfolio size
KD(millions) Average carrying value for the year Annual gross income, as at 31 December of relevant period Annualised gross return (rhs)
600 38.0% 557 40%
35%
500
30%
400 334 25%
22.5% 18.9%
300 17.7% 20%
18.7% 15%
200 130
50 109 10%
64
100 23 48 9
5%
5
0 0%
2003 2004 2005 2006 2007
Investment by sector1 Investment by location1 Investment by type / purpose1
Financial Services 0.9% Kuw ait 1.4% Geographic expansion
14.4% 5.7% 3.2%
5.7%
Debt Securities 7.1% Jordan Financial services
1.8% 19.9%
Insurance 13.9%
2.2% 6.5% Other GCC Investment banking
38.2%
Real Estate 41.1%
Wider MENA Others
Funds
16.6% Asia Co-investments
18.4% Oil & Gas
Healthcare Cayman Island 28.3% Trading portfolio
1.4% 27.6%
21.0% Others 22.1% Others Fixed income securities
2.6%
(1) By value as at 31 December 2007
25
Investment Banking
Overview
Background Strategy and outlook
Set up in 1999 initially in response to demand from Asset Build Saudi Arabia operations
Management clients – Leverage-off existing relationships in Saudi Arabia
Historical focus on equity placements into start-ups that – Obtained licence in 2007
Global sponsors – Focus on mid market segment and equity raisings
Competitive cost-to-income ratio: commission of c. 5% on Offer more higher-value services
– Leverage off Islamic finance experience to offer more Islamic
equity raised, while maintaining a low cost base as many
products
mandates are generated through referrals from current
– Increase mandates relating to advisory and structuring mandates
clients
This expertise and capacity has been and is being used to
increase advisory and debt capital markets mandates,
including Islamic finance segment
Product suite
Equity capital markets & corporate advisory Debt capital markets
(KD 5.5m in revenues)(1) (KD 1.1m in revenues)(1)
2007: 13 transactions, total value of KD147m 2007: 64 transactions, total value of KD435m
Bonds and
Equity Listing Islamic
Start-ups IPOs M&A syndicated Others2
placing advisory finance
loans
(1) For the year ended 31 Dec 2007
(2) Including establishment of SPVs and margin lending 26
Significant investment banking experience
Selected transactions
(1) Mandated deals to date
27
Investment Banking growth initiatives
High growth investment banking Initiatives Actions
sector
GCC volumes (US$bn)
Leverage-off existing relationships in
30 Saudi Arabia
26.4
25 23.5 Build Saudi Arabia operations Obtained licence in 2007
21.3
20 Focus on mid market segment and
equity raisings
15
11.8
9.3
10
5.4
5.0 4.6
5 3.6 3.2 Leverage-off Islamic finance experience
0.8 1.4 to offer more Islamic products
0 Offer more higher value services
2004 2005 2006 2007 Move from equity placements to
DCM ECM M&A advisory and structuring mandates
Source: Dealogic
28
Real Estate investment
Background and development
Set up in 2006 to focus on commercial and residential real estate
Established to make opportunistic investments to take advantage of attractive growth in the real estate sector in the region
Real Estate expertise also supports Global‟s Asset Management and Investment Banking business
– Track record for Real Estate funds
– Expertise to win more real estate related Investment Banking business
Established a dedicated team based in Dubai – who are able to source and invest in high value opportunities for Global, their
clients and certain managed funds
Sold majority of portfolio in 2007 to focus on new opportunities
29
Real Estate Investment
Overview
Background
Set up in 2006 to make opportunistic investments to take advantage of attractive growth in the real estate sector in the region
In house real estate expertise provides opportunities for our Asset Management and Investment Banking businesses
Existing portfolio5
Arjan Project –
Property Dubai Health Care City II Khayal Project1 Al Basateen
Dubai Land
Location Dubai Dubai Ras Al Khaimah Sharjah
Serviced Residential,
Type Commercial Residential Residential Commercial, Hotel Land
Apartments
Land area (sq m) 11,210 8,372 12,094 24,859 132,256 75,864
Potential built up area 30,878 sq m 40,195 sq m 58,047 sq m 74,605 sq m 370,319 sq m 2 N/A
Expected date of
Q2 2008 Q3 2008 Q2 2008 N/A
commencement
Expected date of completion Q2-Q3 2010 Q3-Q4 2010 Q2-Q3 2011 N/A
Purchase cost paid (KDm)3 7.3 3.1 4.7 3.0
Amount outstanding
13.0 7.2 27.7 0
(KDm)4
(1) Owns a 60% stake in Island “A”
(2) Of a Total BuA of 617,198sq m
(3) The 2007 balance sheet also includes assets held by subsidiaries that are not part of the Real Estate pillar
(4) Amounts due over the development life of the project
30
(5) Some additional small holdings in Kuwait
Brokerage
Overview
Background Brokerage development plan
Started exposure to brokerage market in 2004 with stakes 1. Kuwait and Saudi operations by end of Q2 2008
in a number of brokerage companies in the region
2. Transfer all non-discretionary portfolios to brokerage arm
Set up own Brokerage division in Jan 2008, following
investments in new electronic platform and new hires 3. Start offering brokerage services to other existing clients
Expects regional trading activity to increase significantly
4. Leverage Research capability to generate new business
5. Connect regional operations to create a pan-GCC platform
Market leading research with 70,000 subscribers driving new brokerage offering
Among first to launch coverage
26 analysts
of KSE listed companies
Among the first to launch Coverage of over 100
country and sector specific companies representing
coverage in the GCC and MENA around 50% of the GCC market
region capitalisation
Research hubs in Kuwait, Coverage of 16 economies in
Jordan, Egypt and India MENA and South Asia
31
Market leading research capability
driving new brokerage offering
Research
Among the first to launch
Among first to launch
country and sector specific
coverage of KSE listed
coverage in the GCC and
companies
MENA region
Coverage of 16 economies
26 analysts in MENA and South Asia
Coverage of over 100
Research hubs in Kuwait, companies representing
Jordan, Egypt and India around 50% of the GCC
market capitalisation
With over 70,000 subscribers, Global’s research enhances its brand value and demonstrates its leading knowledge of
the region
32
Leading regional index publisher
Global is a leading regional index publisher
Pioneer in the region Covers a wide range of markets
Global General Index
Global Banking Index
Global Investment Index
Global Insurance Index
First regional company to publish audited index Global Real Estate Index
Global Industrial Index
data on the KSE
Global Services Index
Global Food Index
First to launch regional indices in the region
Global Kuwait Only Index
Global Non-Kuwaiti Index
Among the first to launch Islamic index
Global Large Cap. (Top 10)
Global Small Cap. (Low 10)
Global High Yield Index
Global Islamic Index
Helps enhance its regional and international brand exposure and to generate interest in its funds
33
Financial overview
34
Profit & loss statement
Revenue Profit after tax
KDm
160 154 100
140 16%
120 110 80
100 12%
80 60
80 9% 64%
53 91
60 59% 40
35 71
59% 19% 61
40
25% 52% 20 35
20 29% 20% 64% 22
32% 11% 29%
0 0
2005 2006 2007 Q1 07 Q108 2005 2006 2007 Q1 07 Q108
Fee income Gains Other Net income after tax (excluding minority interests)
Business mix (revenue) Cost / income ratio
Q107: KD35m Q108: KD53m
4%
15%
13% 30% 25.8%
1% 21.7%
21.3%
19.5% 19.1%
20% 16.7% 18.2% 17.0% 17.4%
14.3%
19% 51%
10%
83% 14%
0%
2005 2006 2007 Q107 Q108
Principal investments & Treasury Asset Management
Excluding interest Including interest
Investment Banking Brokerage
Real Estate
35
Balance sheet
Assets Equity and Liabilities
KDm KDm
1,000 913 967 1,000 913 967
4% 9%
724 30% 724
800 692 28% 800 692 16% 15%
4% 8%
600 28% 26% 600 11% 6%
43% 43%
400 301 400 3% 49% 54%
72% 70% 301 7%
72% 74% 47%
200 36% 200
36% 36% 33%
64% 32%
43%
0 0
2005 2006 2007 Q107 Q108 2005 2006 2007 Q107 Q108
Principal investments Other Shareholders equity Short-term Medium / long-term Other
Return on capital1 Capital/leverage ratios
Equity ROE% Tier 1 & 2 Leverage
KDm
350 72.5% 323 309 80% 40% 35.3% 2.5x
2.1x
300 1.9x
60% 2.0x
250 244 232 30%
15.0%
200 1.5x 20.1% 20.2% 1.5x
32.2% 43.9% 40% 20% 2.6% 2.5%
150 120 39.1% 37.8% 1.0x
100 20% 10% 20.3% 17.5% 17.7% 0.5x
50
0 0% 0% 0.0x
2005 2006 2007 Q107 Q108 2005 2006 2007
Shareholders equity ROE Tier 1 Tier 2 Leverage¹
(1) RoE for Q107 and Q108 based on annualised earnings
36
Target business mix
2007 revenue mix Medium term revenue mix strategy
2% Fee income contribution
11% 15%
To increase fee income contribution
7%
9% – Asset Management and Investment Banking to increase share to
1%
3% constitute a significantly higher proportion of revenues and enhance
1%
fee income contribution
Fee income (20%) – Brokerage to capitalise on established client base and to contribute
Asset based income (80%) to fee income
Other income (1%)¹
1%
1% Private equity and quoted security investments to contribute
Asset management 51% Investment banking PI - PE/Quoted securities
a smaller proportion of revenue as track record is already
PI - Fixed income PI - Co-investments Strategic associates
Lending & Finance Proprietary trading Real estate
established and holdings are realised
Brokerage
Co-investments expected to rise in line with growth in AuM
Principal Investments constituted the majority of revenues Investments in strategic associates will increase as we
in 2007 continue to acquire a number of significant stakes in
– large number of realisations and investments performed well strategic targets that may be integrated into the Global
Asset Management and Investment Banking the next franchise
largest
Brokerage expected to contribute in 2008
(1) Other income is comprised of income from strategic associates
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Global stock & shareholders
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Investing in Global Stock
Global stock is traded on Kuwait (KSE), Dubai (DFM) and Bahrain (BSE)
Market Reuters Code Bloomberg Code Market Code
Kuwait (KSE) GLOB.KW GLOBAL KK Global
Dubai (DFM) GLOB.DU GLOBAL UH Global
Bahrain (BSE) GIHB.BH GLOBAL BI Global
London (LSE) * GLOB LI GLOB
* wef 21 May 2008
S&P /IFCG Extended Frontier 150, comprising of the largest and most liquid stocks, placed Global amongst the best 19
listed companies on Kuwait Stock Exchange
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Ownership Key Points
Regulatory
– Public disclosure once ownership reaches 5% or over whether it is direct, indirect, or in
different markets.
– Ceiling for total non-GCC investors ownership is 49%
Restrictions as per articles of association
– Maximum ownership by a single investor is limited to 20% of the issued capital.
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Awards & recognition
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Awards & recognitions
Global Investment House Global Investment House Global Investment House
Gulf Excellence Award Best Equity House in Kuwait Deal of the Year
Gulf Excellence – 2005 Euromoney – 2005 & 2006 The Banker – 2006
Global Investment House Global Investment House
Contribution to Islamic Fund the Middle East "Best Investment Bank in Kuwait”
Global Advisors (MEGA) - 2007 Euromoney magazine - 2007
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Awards & recognitions
Global Buyout Fund L.P.
Fund of the Year
Private Equity World Awards MENA, Terrapinn - 2007
Global 10 Large Cap Index Fund
Best Performing Fund in Kuwait
Lipper Reuters - 2006
Global Distressed Fund
4th Best in the World based on Sharpe Ratio
Barclays – 2007
Global Distressed Fund
3rd Best in the World
EurekaHedge - 2005
Global Umbrella Fund - Asia/Japan
Best Hedge Fund Manager in Asia
EurekaHedge - 2005
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Disclaimer
Global Investment House has obtained the information in this presentation from sources it believes to be reliable. Although Global Investment House has
taken all reasonable care to ensure that the information herein is accurate and correct, Global Investment House makes no representation or warranty,
express or implied, as to the accuracy, correctness or completeness of such information. Furthermore, Global Investment House makes no representation
or warranty, express or implied, that its future results will be consistent with results implied, directly or indirectly, by such information or with Global
Investment House’s past results. Any information herein is as of the date of this presentation and may change without notice. Global Investment House
undertakes no obligation to update the information in this presentation. In addition, information in this presentation may be condensed or incomplete, and
this presentation may not contain all material information in respect of Global Investment House.
This presentation also contains “forward-looking statements” that relate to, among other things, Global Investment House’s plans, objectives, goals, and
strategies. Such forward-looking statements may be characterized by words such as “anticipates,” “estimates,” “expects,” “projects,” “believes,” “intends,”
“plans,” “may,” “will” and “should” and similar expressions but are not the exclusive means of identifying such statements. Such forward-looking statements
involve known and unknown risks, uncertainties and other important factors that could cause Global Investment House’s results to be materially different
from the operating, financial or other results expressed or implied by such statements. Although Global Investment House believes the basis for such
forward-looking statements to be fair and reasonable, Global Investment House makes no representation or warranty, express or implied, as to the fairness
or reasonableness of such forward-looking statements. Furthermore, Global Investment House makes no representation or warranty, express or implied,
that the results anticipated by such forward-looking statements will be achieved. Such forward-looking statements represent, in each case, only one of many
possible scenarios and should not be viewed as the most likely or standard scenario. Global Investment House undertakes no obligation to update the
forward-looking statements in this presentation.
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