1. What are KIPCO’s investments based on?
Investments are based both on the inherent potential of individual companies, and on their fit within the KIPCO Group. As a result KIPCO has a well balanced portfolio of companies that provide sectoral and geographical diversification, and allows KIPCO to achieve its objective of sustained growth with profitability.


2. How does KIPCO assure a certainty of earnings?
KIPCO’s earnings are delivered from operating companies that are in sectors witnessing either a steady or rapid growth in profits. Over the past few years, KIPCO has invested in businesses that are now firmly established on the path of sustained growth.

KIPCO’s core companies, and KIPCO itself, are listed entities that are well researched and actively trading on the regional exchanges, indicating a high level of transparency and investor confidence in their operations.


3. How effective is KIPCO’s liability management?
KIPCO’s management has leveraged its track record in meeting its debt obligations, to pursue an optimum funding strategy aimed at reducing costs, balancing maturity profile, extending tenor and expanding the lender base. KIPCO has been assigned a Baa2/P-3 rating from Moody’s and BBB-/A3 rating from Standard and Poor’s.

4. What is KIPCO’s growth strategy? Or, What are the key components of the KIPCO strategy?
Leverage its position and reputation in the GCC and wider MENA regions to capture further growth in these regions: KIPCO believes it is well positioned through its network of relationships and strong reputation to identify opportunities for growth and generate attractive returns from its businesses. KIPCO seeks to penetrate new markets with its existing businesses and at the same time look for new opportunities that will generate attractive returns.

Acquire, create, build and selectively sell businesses in sectors that capitalise on regional opportunities: KIPCO currently focuses primarily on the banking, AMIB, insurance and media sectors but will seek to identify under-served and nascent markets with proven potential for regional growth. KIPCO will seek to leverage its growing regional footprint in the retail and commercial banking sector together with insurance services through plans to develop life and pensions and Islamic reinsurance products and services. KIPCO will continue to seek partnerships with global or local partners for investment in greenfield ventures for business with models that have been implemented successfully in other regions or countries.

Exercise management control over businesses: KIPCO seeks to acquire controlling or significant stakes in its businesses and majority representation on such businesses' boards of directors. Having a controlling position enables KIPCO to provide strategic direction and financial targets for its businesses.

Maximise value from businesses with a medium- to long-term horizon: KIPCO seeks to maximise value from businesses within 5 years of their establishment or acquisition by implementing a strategy of increasing its operating income, expanding sales both locally and regionally, and making acquisitions. The Company continually reviews its holdings, considering options to maximise value, including divesting of part or all of the businesses it owns.


5. What is KIPCO’s net debt to equity ratio?
As on December 2009, KIPCO had an interest bearing debt of US$1,694 million and cash of US$1,093 million at parent level. The net debt to equity ratio as on December 2009 stood at 0.31x


6. What are the improvements in KIPCO’s Interest Coverage Ratio?



7. What role does the ‘Annual Shahfafiyah Investor's Forum’ play in KIPCO's stratergy?
The Shahfafiyah (Transparency) Investor's Forum was launched in July 2005. The event creates a healthy two way dialogue between the company and its shareholders and members of the financial community. By allowing the management teams of each core operating companies to present their reviews and financial forecasts and the answer question about them, the forum is a regular opportunity for KIPCO to engage directly with its shareholders. It was an initiative to communicate extensively with the shareholders, and this forum provided the right platform for development of the management’s thoughts in fostering transparency and corporate governance in the region.