Financial Information

OVERVIEW
REPORT OF THE BOARD OF DIRECTORS TO THE SHAREHOLDERS
for the year ended 31 December 2011

The Board of Directors is pleased to present the 33rd Annual report since the formation of the company, highlighting the activities and results of the year ended December 31, 2011.

The unusual circumstances the Kingdom of Bahrain went through last year negatively impacted the economic
status in many industries, especially hotel activities business, which in turn led to the decline in revenues in general as compared to previous years. Accordingly, Crown Plaza Hotel activities and revenues were affected significantly. However, the managements of the company and the hotel worked hard to minimise losses while maintaining the high levels of services.

During the last quarter of the year, the construction of the 660-car park building project was completed.

The Board continues to study other projects as future initiatives, including the construction of a new five stars hotel within the vicinity of the existing hotel, and has already begun conducting the necessary studies and appointing project managers, and will soon appoint specialized consultants for this project.

The Board and the executive management are currently considering adding another specialized restaurant in
the car park building.

Net profit of the Company for the year 2011 amounted to BD 932,154 as compared to BD 3,614,201 in 2010 with a decrease of BD. 2,682,047. Equity of the shareholders amounted to BD 29,901,242 as compared to 30,521,614 as a result of the reasons set out above.

The Board of Directors proposes the following appropriations:

BAHRAINI DINAR
Cash Dividend of 12 percent (12 fils per share for shares traded ) 788,071
Donations to charity 15,000
Net profit transferred to retained earnings 129,083

The Board of Directors also proposes directors’ remuneration of BD 60,000.

The Board of Directors would like to express its deep gratitude and sincere appreciation to His Majesty King
Hamad Bin Isa Al Khalifa, King of the Kingdom of Bahrain, to HRH Prince Khalifa Bin Salman Al Khalifa, the Prime Minister and to HRH Prince Salman Bin Hamad Al Khalifa, the Crown Prince and Deputy Supreme Commander of the Bahrain Defence Force, and to the Ministers of the Kingdom of Bahrain for their continuing support and encouragement.

We also wish to reiterate our gratitude and appreciation to our respected clients for their support and finally, we are pleased to convey our appreciation and thanks to the company’s Chief Executive Officer and all employees for their sincere efforts towards developing the business of the Company.

Qassim Mohamed Yousif Fakhroo
Chairman

Date: 21 February 2012