ALAFCO AVIATION LEASE AND FINANCE COMPANY K.S.C.P. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION (UNAUDITED)

30 JUNE 2022

Ernst & Young

Tel: +965 2295 5000

Al Aiban, Al Osaimi & Partners

Fax: +965 2245 6419

P.O. Box 74

kuwait@kw.ey.com

18-20th Floor, Baitak Tower

ey.com/mena

Ahmed Al Jaber Street

Safat Square 13001, Kuwait

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF ALAFCO AVIATION LEASE AND FINANCE COMPANY K.S.C.P.

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of ALAFCO Aviation Lease and Finance Company K.S.C.P. (the "parent company") and its subsidiaries (collectively the "group") as at 30 June 2022, and the related interim condensed consolidated statements of income and comprehensive income for the three months and nine months periods then ended, and the related interim condensed consolidated statements of changes in equity and cash flows for the nine months period then ended. The management of the parent company is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with International Accounting Standard 34: Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim condensed consolidated financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34.

Report on Other Legal and Regulatory Requirements

Furthermore, based on our review, the interim condensed consolidated financial information is in agreement with the books of account of the parent company. We further report that, to the best of our knowledge and belief, we have not become aware of any violations of the Companies Law No. 1 of 2016, as amended, and its Executive Regulations, as amended, or of the parent company's Memorandum of Incorporation and Articles of Association during the nine months period ended 30 June 2022 that might have had a material effect on the business of the parent company or on its financial position.

We further report that, during the course of our review, we have not become aware of any material violations of the provisions of Law No. 7 of 2010 concerning the Capital Markets Authority and its related regulations during the nine months period ended 30 June 2022 that might have had a material effect on the business of the parent company or on its financial position.

ABDULKARIM ALSAMDAN

LICENCE NO. 208-A

EY

AL AIBAN, AL OSAIMI & PARTNERS

11 August 2022

Kuwait

ALAFCO Aviation Lease and Finance Company K.S.C.P. and Subsidiaries

INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

For the period ended 30 June 2022

Three months ended

Nine months ended

30 June

30 June

2022

2021

2022

2021

Notes

KD

KD

KD

KD

Operating lease income

20,151,196

24,888,671

71,113,635

76,637,371

Murabaha income

17,074

12,279

42,394

38,527

(Loss) gain on disposal of aircraft, engines and

-

2,409,682

equipment

(754,483)

(754,483)

Other income

1,560,682

388,292

3,583,115

413,824

Staff costs

(1,103,060)

(863,446)

(3,071,748)

(2,472,968)

Depreciation

4

(12,560,234) (12,601,169)

(38,044,445)

(37,785,638)

Impairment loss on aircraft, engines and

(15,559,467)

(28,743,803)

equipment

4

-

-

Other operating expenses

(3,109,238)

(1,164,071)

(4,814,072)

(3,338,211)

Reversal of (allowance for) credit loss on

1,135,842

976,797

receivables

(1,827,952)

(10,489,903)

Finance costs

(9,370,652)

(8,666,816)

(26,818,508)

(25,198,673)

───────── ─────────

─────────

─────────

LOSS FOR THE PERIOD BEFORE

CONTRIBUTION TO KUWAIT

FOUNDATION FOR THE ADVANCEMENT

OF SCIENCES (KFAS), NATIONAL LABOUR

(18,837,857)

(588,695)

(23,366,953)

(2,950,154)

SUPPORT TAX (NLST) AND ZAKAT

Contribution to KFAS

-

-

-

-

NLST

-

(17,644)

-

(142,195)

Zakat

-

(7,058)

-

(56,878)

───────── ─────────

─────────

─────────

LOSS FOR THE PERIOD

(18,837,857)

(613,397)

(23,366,953)

(3,149,227)

───────── ─────────

─────────

─────────

Basic and diluted loss per share

3

(19.79) fils

(0.64) fils

(24.54) fils

(3.31) fils

═════════ ═════════

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═════════

The attached notes 1 to 10 form part of this interim condensed consolidated financial information.

3

ALAFCO Aviation Lease and Finance Company K.S.C.P. and Subsidiaries

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

For the period ended 30 June 2022

Three months ended

Nine months ended

30 June

30 June

2022

2021

2022

2021

KD

KD

KD

KD

Loss for the period

(18,837,857)

(613,397)

(23,366,953)

(3,149,227)

─────────

─────────

─────────

─────────

Other comprehensive income (loss):

Items that are not reclassified subsequently to interim

condensed consolidated statement of income:

2,344,752

4,380,878

Foreign currency translation adjustment

(2,174,851)

(5,093,078)

─────────

─────────

─────────

─────────

Other comprehensive income (loss) for the period

2,344,752

(2,174,851)

4,380,878

(5,093,078)

─────────

─────────

─────────

─────────

Total comprehensive loss for the period

(16,493,105)

(2,788,248)

(18,986,075)

(8,242,305)

═════════

═════════

═════════

═════════

The attached notes 1 to 10 form part of this interim condensed consolidated financial information.

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ALAFCO - Aviation Lease and Finance Company KSCC published this content on 11 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 August 2022 07:45:06 UTC.