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Investor Presentation 2Q &1H 2010

Investor Presentation 2Q &1H 2010. About PADICO Holding. Who We Are. PADICO HOLDING is a limited, public shareholding company which was established in 1993, through an initiative by distinguished Palestinian and other Arab businessmen in Diaspora.

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Investor Presentation 2Q &1H 2010

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  1. Investor Presentation 2Q &1H 2010

  2. About PADICO Holding

  3. Who We Are PADICO HOLDING is a limited, public shareholding company which was established in 1993, through an initiative by distinguished Palestinian and other Arab businessmen in Diaspora. The Company's paid in capital is 250 million shares/USD. The Company’s core mission is to develop and strengthen the Palestinian economy through investing in vital economic sectors. This mission is being fulfilled through a well structured, focused and resourceful group of associates and affiliates operating in a wide array of sectors including real estate, telecommunications, tourism, industry and financial services The Company has been listed on the Palestine XCHANGE since 1997. PADICO HOLDING’s shareholder profile is diverse and includes major investors from Palestine as well as international markets, exceeding 11,000 shareholders.

  4. The PADICO Advantage • The Board of Directors enjoys vast international experience in a broad range of sectors. This makes the board composition strong with a balanced blend of skills and experience, allowing it to offer all guidance required to achieve the Company’s goals. • PADICO Holding has played a pioneer role in developing the Palestinian economy through establishing a number of innovative projects including founding the first stock exchange, establishing the first telecommunications company, building the first industrial zone in the Gaza strip, and introducing 5 star hospitality services to Palestine through founding the Intercontinental Jaser Palace in Bethlehem, and the Movenpick hotels in Gaza and Ramallah. • PADICO HOLDING has a 16 year track record of leading a consistently superior financial performance despite regional political and economic instability. This makes PADICO a true model for investment in Palestine. • PADICO HOLDING has been listed on Palestine XCHANGE (PX) since 1997, which guarantees high levels of transparency. • The Company’s flexible and highly diversified investment strategy which focuses on executing investments in various economic sectors as well as geographical locations, has enabled the company to continuously generate profits.

  5. Our Investment Strategy Effective CSR Pioneer CSR strategy and Socially Responsible Investments (SRI)

  6. Risk Management PADICO HOLDING manages risk associated with the political and economic environment through: Sector diversification, with the concentration being in defensive sectors such as infrastructure, real estate and telecommunications. Separating the Company’s financial portfolio from its main operations, and assigning it to Rawan International Investment Co., a PADICO HOLDING subsidiary. PADICO HOLDING’s Investments by sector

  7. Our Investment Outlook (1) FIRST: Concluding The Restructuring Process The future plan focuses on concluding the restructuring process which involves merging investments in the real estate, tourism, manufacturing and financial sectors under the umbrella of specialized companies, in addition to divestiture of underperforming investments and others in which PADICO HOLDING does not own a controlling stake.

  8. Real Estate & Tourism Sectors Restructuring Plan

  9. Manufacturing Sector Restructuring Plan

  10. Palestine XCHANGE (PX) Restructuring Plan

  11. SECOND: Reducing Borrowings and Costs Our Investment Outlook (2)

  12. A Highlight Of Our Key Investments *Authorized capital in USD millions ** % owned by PADICO ***Holding as of 30-6-2010

  13. PADICO HOLDING’s Financial Statements

  14. Consolidated Income Statement Summary(Three months ended June 30) When compared to 2Q2009, 2Q 2010 has witnessed: - 108% increase in operating revenue. - 43% growth in total revenues. - (10)% decrease in general & administrative expenses. - 40% increase in net profit.

  15. Consolidated Income Statement Summary (Six months ended June 30) When compared to 1H 2009, 1H 2010 has witnessed: 89% growth in operational revenue accredited to the restructuring plan currently being implemented, and the enhanced operational efficiency at subsidiaries’ level. 21% growth in total revenues. 49% growth in operating income after excluding nonrecurring items. 3% growth in net profit.

  16. Revenue Sources

  17. Consolidated Balance Sheet Summary Total liabilities decreased by 6% due to a decline in loans & credit facilities from $165.8 million in 2009 to $153.29 million in 1H 2010, accredited to the Company’s strategy of reducing borrowings and debt obligations.

  18. Key Subsidiaries and Affiliates

  19. Paltel Group Established in 1995 as the first Palestinian telecommunication company. The Group’s services cover all aspects of the communication spectrum. Number of subscribers has increased by 27% in 1H 2010 when compared to 1H 2009 to reach 2.58 million. Growth in operating income amounted to 12% when comparing 1H 2010 to 1H 2009.

  20. Palestine Real Estate investment Company (PRICO) • PRICO is considered PADICO HOLDING’s arm in the real estate and construction sector. • When compared to 1H 2009, 1H 2010 has witnessed: - 546% increase in operating revenues. - 547% increase in gross profit. - 322% increase in net income. • PRICO’s new projects include: - Rabiyet Al Quds residential complex- Beit Safafa/ Total cost $34 million. - Al Ghadeer Residential Complex- Jifna/ Total cost $24 million. - Prico House Two commercial center- Ramallah/ Total cost $12 million. .

  21. Palestine XCHANGE (PX) PX represents one of PADICO HOLDING’s avant-garde accomplishments in the financial sector. The XCHANGE currently has 41 listed companies, and an additional 9 companies are scheduled to go public during 2010. PX’s total market cap as of 30-6-10 amounted to $2.5 billion. Applicable regulations at the PX are compatible with best international practice.

  22. Palestine Industrial Investment Company (PIIC) PIIC was established in 1994 as a holding company. As part of PADICO HOLDING’s restructuring process, 6 industrial companies are currently being consolidated under the umbrella of PIIC. When comparing 1H 2010 to 1H 2009: - Sales grew by 42%. - Gross profit advanced by 132%. - Net income increased by 127%.

  23. When comparing 1H 2010 to 1H 2009: - Comprehensive net income advanced by 259%. - Operating profit increased by 146%. PPC’s stock has witnessed a significant performance with the share price increasing by 128.68% in 1H 2010 closing at 2.95 JOD as of 30-6-2010. PPC’s future plans focus on completing the Company’s production cycle through establishing a slaughter house, which will start operations in 3Q 2010. Palestine Poultry Company (PPC)

  24. PADICO HOLDING’s Stock

  25. Stock Chart (www.reuters.com)

  26. Stock Performance • As of 30-6-10, PADICO HOLDING and its subsidiaries and affiliates contributed 66.42% of PX’s total trading volume, 75.83% of PX’s total trading value, and 66% of total market cap. • PADICO HOLDING’s share alone constituted 26.19% of PX’s total trading volume, which is a strong implication of the stock’s high liquidity and demand levels! • PADICO HOLDING’s share price has witnessed an increase during the first half of 2010 where it opened at 1.21$ on 1/1/10 and closed up by 14.88% at 1.39$ as of 30-6-2010.

  27. Future Projects 2010-2013

  28. Future Projects PADICO HOLDING’s future strategy focuses investments in the infrastructure and real estate sectors. The 3 year future strategy allocates a budget of $ 100 Million: 30% for long term projects, and 70% for short and medium term projects.

  29. A. Power Generation Project • In partnership with local and regional investors, PADICO HOLDING will establish the first power generation plant located in Jenin, northern West Bank. • The plant will operate at total capacity of 400 MW, in two phases. • Total investment cost amounts to $ 300 Million. • The plant is expected to start operations by late 2014.

  30. B. Solid Waste Recycling Project • PADICO HOLDING has established The Palestinian Recycling Company “TADWEER”, the first company to offer specialized recycling services in Palestine. • The new Company’s pilot projects involves Building, managing, and operating a recycling and composting facility in Nablus and Jenin. • The projects’ total cost amounts to $ 5 Million, and operations will start in September 2010.

  31. C. Wastewater Treatment Project • PADICO HOLDING is the first private company to invest in wastewater in Palestine. • An MOU has been signed with Jenin Municipality to upgrade the existing wastewater treatment plant, and build a tertiary treatment unit which will produce water suitable for irrigation purposes. • The project’s estimated cost is around $ 2 Million, and will start operations in the beginning of 2011.

  32. Contact Information PADICO HOLDING Ramallah – Palestine Tel: + 970 2 240 3336 Fax: + 970 2 240 3363 P.O.Box: 1708 Ramallah – Palestine Email: padico_ramallah@padico.com

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