2nd Quarter Financial Statement 2025

As at and for the six months ended 30 June 2025

1

Independent auditors' report on review of condensed consolidated interim financial information (continued)

Based on our review, nothing has come to our attention that causes us to believe that the accompanying 30 June 2025 condensed consolidated interim financial information is not prepared, in all material respects, in accordance with IAS 34, 'Interim Financial Reporting'.

‌The notes on pages 11 to 27 are an integral part of these condensed consolidated interim financial information.

‌Salam International Investment Limited Q.P.S.C.

As at 30 June 2025

In Qatari Riyals

bdul Salam Issa Abu Issa

Chief Executive Officer and Board Me

ief Financial Officer

The notes on pages 11 to 27 are a

sed consolidated inte financial information.

These condensed consolidated interim financial information were approved by the Board of Directors and signed on its behalf by the following on 12 August 2025:

‌The notes on pages 11 to 27 are an integral part of these condensed consolidated interim financial information

‌(1) The legal reserve will be accounted for at the year end.

‌The notes on pages 11 to 27 are an integral part of these condensed consolidated interim financial information.

‌The notes on pages 11 to 27 are an integral part of these condensed consolidated interim financial information.

‌The notes on pages 11 to 27 are an integral part of these condensed consolidated interim financial information.

9

‌The notes on pages 11 to 27 are an integral part of these condensed consolidated interim financial information.

As at and for the six months ended 30 June 2025

1. Reporting entity

   Salam International Investment Limited Q.P.S.C. (the "Company" or "SIIL") is a public shareholding company incorporated in the State of Qatar under Amiri Decree No. (1) on 14 January 1998. The registered address of the Company is PO Box 15224, Doha, State of Qatar. The commercial registration number of the Company is 20363. The shares of the Company are listed on Qatar Stock Exchange.

   These condensed consolidated interim financial information ("interim financial information") as at and for the six months ended 30 June 2025 comprise the Company and its subsidiaries (together referred to as the "Group").

   During the period, the Company purchased additional shares of 40,332 in Salam Bounain Development Company P.Q.S.C. and reached Group's ownership to 85.81% from 85.74%. There were no other changes in the ownership interest in the subsidiaries and associates.

   The primary activities of the Group are to establish, incorporate, acquire, and own enterprises in the contracting, energy and industry, consumer and luxury products, technology, real estate, and development sectors, and to invest in securities in local and overseas market. There were no changes to the primary activities compared to the comparative period.

2. Basis of accounting

   These interim financial information for the six months ended 30 June 2025 have been prepared in accordance with the IAS 34 Interim Financial Reporting, and should be read in conjunction with the Group's last annual consolidated financial statements as at and for the year ended 31 December 2024 ("last annual consolidated financial statements"). They do not include all of the information required for a complete set of financial statements prepared in accordance with IFRS Accounting Standards. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual consolidated financial statements.

   These interim financial information were authorized for issue by the Company's board of directors on 12 August 2025.

3. Use of judgement and estimates

In preparing these interim financial information, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual consolidated financial statements.

A number of the Group's accounting policies require the measurement of fair values, for both financial and non-financial assets and liabilities.

The Group has an established control framework with respect to the measurement of fair values.

The Group regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the Group assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of the Accounting Standards, including the level in the fair value hierarchy in which the valuations should be classified.

As at and for the six months ended 30 June 2025

1. Use of judgement and estimates (continued) Measurement of fair values (continued)

   When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

   • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

   • Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

   • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

     If the inputs used to measure the fair value of an asset or a liability are categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

     The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

     Further information about the assumptions made in measuring the fair values are included in Note 8 and Note 20.

2. New standards, interpretations and amendments

Except as described below, the accounting policies applied in these interim financial information are the same as those applied in the Group's consolidated financial statements as at and for the year ended 31 December 2024.

New and amended standards adopted by the Group

The Group adopted below amendment to standards effective as of 1 January 2025:

The application of the amendment listed above did not have a material impact on these condensed consolidated interim financial information.

1. New standards, interpretations and amendments (continued)

   Impact of new standards (issued but not yet adopted by the Group)

   Effective date	New standards or amendments
   1 January 2026	Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)
   	Contract referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)
   	Annual Improvements to IFRS Accounting Standards (Volume 11)
   1 January 2027	IFRS 18 Presentation and Disclosure in Financial Statements
   	IFRS 19 Subsidiaries without Public Accountability: Disclosure
   To be determined	Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)

   The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

2. Property and equipment

   	30 June 2025 (Reviewed)	31 December 2024 (Audited)
   Cost
   Balance at the beginning of the period / year	1,099,824,195	999,483,496
   Additions	54,658,019	129,513,399
   Disposals	(8,831,752)	(21,404,018)
   Reclassification to investment property - depreciation offset	(19,149,684)	(3,237,834)
   Revaluation of building reclassified to investment property	4,581,070	1,435,112
   Reclassification to investment properties	(18,017,100)	(3,663,367)
   Write-offs	(23,881)	(2,302,593)
   Balance at	1,113,040,867	1,099,824,195
   Accumulated depreciation
   Balance at the beginning of the period / year	757,885,121	739,312,868
   Depreciation	15,891,158	44,467,227
   Disposals	(8,831,592)	(20,359,668)
   Reclassification to investment property - depreciation offset	(19,149,684)	(3,237,834)
   Write-offs	(23,811)	(2,297,472)
   Balance at	745,771,192	757,885,121
   Carrying amounts at	367,269,675	341,939,074

3. Leases

   The Group has lease contracts for lands and other buildings used in its operation. The carrying amount of right-of-use assets and lease liabilities of these leases are as follow:

   1. Right of use assets

      	30 June 2025 (Reviewed)	31 December 2024 (Audited)
      Cost
      Balance at the beginning of the period / year	153,293,209	128,415,659
      Additions	9,338,153	17,166,341
      Modifications	(5,049,498)	7,711,209
      Balance at	157,581,864	153,293,209
      Accumulated depreciation
      Balance at the beginning of the period / year	71,894,903	59,432,716
      Depreciation	6,586,459	12,462,187
      Balance at	78,481,362	71,894,903
      Carrying amounts at	79,100,502	81,398,306

   2. Lease liabilities

   	30 June 2025 (Reviewed)	31 December 2024 (Audited)
   Balance at the beginning of the period / year	80,297,830	67,304,873
   Additions	9,338,153	17,166,341
   Modifications	(5,049,498)	6,735,395
   Interest expense	2,146,060	4,002,788
   Principal repayments	(5,779,981)	(10,908,779)
   Interest paid	(2,146,060)	(4,002,788)
   Balance at	78,806,504	80,297,830

   Lease liabilities are presented in the condensed consolidated statement of financial position as follows:

   	30 June 2025 (Reviewed)	31 December 2024 (Audited)
   Non-current	67,886,591	69,914,584
   Current	10,919,913	10,383,246
   Balance at	78,806,504	80,297,830

4. Intangible assets and goodwill

14

1. Intangible assets and goodwill (continued)

   (i) Intangible assets
   	30 June 2025	31 December 2024
   	(Reviewed)	(Audited)
   Cost
   Balance at the beginning of the period / year	78,958,631	78,981,994
   Additions	5,655	134,980
   Write-off	-	(158,343)
   Balance at	78,964,286	78,958,631
   Accumulated amortisation
   Balance at the beginning of the period / year	57,291,846	54,019,229
   Amortisation	1,609,964	3,400,626
   Write off	-	(128,009)
   Balance at	58,901,810	57,291,846
   Carrying amounts at	20,062,476	21,666,785

2. Investment properties

Investment properties comprises a number of completed commercial, residential and industrial properties that are leased to third parties and vacant lands.

Investment properties consist of following:

15

1. Investment properties (continued)

   	30 June 2025	31 December 2024
   	(Reviewed)	(Audited)
   Completed properties
   Located in State of Qatar	2,157,017,100	2,139,000,000
   Located in United Arab Emirates	90,633,663	85,450,495
   	2,247,650,763	2,224,450,495
   Vacant land
   Located in State of Palestine (Ramallah)	19,525,723	21,435,617
   	2,267,176,486	2,245,886,112

   • The Group has no restrictions on the realisability of its investment properties and has no contractual obligations either to purchase, construct or develop investment properties other than those disclosed in Note 13

   • Certain investment properties of the Group with fair value at 30 June 2025 of QR 2,116,000,000 (31 December 2024: QR 2,116,000,000) are mortgaged to a local bank against the facilities obtained by the Group.

   • The rental income recognised by the Group during the period ended 30 June 2025 was QR 53,228,349 (30 June 2024: QR 56,439,308) and was included as part of revenue.

   • Changes in fair value of the investment properties are recognised as gain or loss in the condensed consolidated statement of profit or loss.

     Measurement of fair values

     The investment properties are stated at fair value, which has been determined based on valuations performed by external independent valuers as at 30 June 2025. Those valuers are accredited with recognised and relevant professional qualifications and with recent experience in the location and category of those investment properties being valued. In arriving at estimated market values, the valuers have used their market knowledge and professional judgement and not only relied on historical comparable transactions.

     The fair value measurement for investment properties has been categorised as Level 3 of the fair value hierarchy which is the discounted cash flow method or as Level 2 of the fair value hierarchy, which is the market comparison approach.

     The key assumptions used in valuation techniques and approach at 30 June 2025 are not significantly different from year end. There has also been no change in the status of the valuation uncertainty as set out in the last annual consolidated financial statements.

2. Equity-accounted investees

1. Equity-accounted investees (continued)

   (i) Interest in joint ventures	30 June 2025 (Reviewed)	31 December 2024 (Audited)
   Balance at the beginning of the period / year	73,806,106	67,348,670
   Additions	-	765,000
   Share of results from joint venture, net	5,295,161	11,236,987
   Dividends received during the period / year	(6,930,694)	(5,544,551)
   Balance at	72,170,573	73,806,106

   (ii) Interest in associates

   	30 June 2025 (Reviewed)	31 December 2024 (Audited)
   Balance at the beginning of the period / year	140,414,144	142,402,967
   Additions	2,264,000	528,000
   Share of results from associates, net	(1,057,006)	(2,516,823)
   Balance at	141,621,138	140,414,144

2. Investment securities

   	30 June 2025 (Reviewed)	31 December 2024 (Audited)
   Non-current investments
   Quoted equity securities - at FVOCI	46,388,173	51,660,097
   Unquoted equity securities - at FVOCI	47,925,332	46,002,081
   Balance at	94,313,505	97,662,178

   (i) The movement in the equity securities at FVOCI is as follows:

   	30 June 2025 (Reviewed)	31 December 2024 (Audited)
   Balance at the beginning of the period / year	97,662,178	93,843,039
   Disposals during the period / year	-	(2,855,471)
   Net change in fair value during the period / year	(3,348,673)	6,674,610
   Balance at	94,313,505	97,662,178

3. Cash and cash equivalents

   	30 June 2025 (Reviewed)	31 December 2024 (Audited)
   Cash balances	1,403,330	1,165,216
   Bank balances	63,919,852	148,587,110
   Short term deposits (Maturity less than 90 days)	81,458,207	35,501,587
   Term deposits (Maturity after 90 days)	50,000,000	54,200,000
   Cash and cash equivalents in the statement of financial position	196,781,389	239,453,913
   Less: Bank overdraft	(77,295,798)	(58,300,580)
   Less: Margin deposits against guarantees	(1,680,939)	(1,907,587)
   Less: Term deposits (Maturity after 90 days)	(50,000,000)	(54,200,000)
   Cash and cash equivalents in the statement of cash flow	67,804,652	125,045,746

4. Related parties

   The Group enters into transactions with companies and entities that fall within the definition of a related party as contained in International Accounting Standard No. 24, Related Party Disclosures. Related parties comprise companies under common ownership and/or common management and control, key management personnel, entities in which the shareholders have controlling interest, affiliates, and other related parties.

   1. Transactions with related parties

      	30 June 2025 (Reviewed)		30 June 2024 (Reviewed)
      Sale of goods and services	2,966,826		2,904,797
      Real estate income	8,751,368		13,762,742
      Operating cost	99,499		935,560
      Finance income	1,431,509		6,543,073
      Other income	-		55,400
      Other expenses	334,940		297,655

      12 Related parties (continued)
   2. Due from related parties

      	Relationship	30 June 2025 (Reviewed)	31 December 2024 (Audited)
      Serene Real Estate S.A.L.	Associate	114,409,229	110,759,229
      West Bay Medicare W.L.L.	Affiliate	139,090,930	134,696,953
      Mideco Trading and Contracting W.L.L.	Associate	41,667,049	38,265,065
      Salam Holdings W.L.L.	Affiliate	29,800,902	28,313,336
      Qatar Boom Electrical Engineering W.L.L.	Affiliate	18,031,990	17,326,539
      Salam Sice Tec Solutions W.L.L.	Associate	8,716,024	9,839,373
      Burhan International Construction Company W.L.L.	Affiliate	6,754,112	6,754,112
      Just Kidding	Associate	5,857,727	5,857,727
      Qatar Aluminum Extrusion Company P.Q.S.C	Associate	1,606,073	1,621,827
      Salam Jobson for Trading and Marine Services	Joint venture	1,606,539	805,868
      Eco Engineering and Energy Solution L.L.C	Affiliate	1,182,768	1,182,768
      Salam Stores Hugo Boss W.L.L.	Associate	801,163	585,703
      Atelier 101	Affiliate	385,681	463,761
      Al Hussam Holding W.L.L.	Affiliate	130,755	124,285
      Amiri Gems	Affiliate	101,772	64,584
      Nasser Bin Khaleed & Son Trading Company	Others	97,439	44,122
      Mr. Bassam Abu Issa	Others	9,027	110,011
      Mr. Mohammad Hammoudi	Others	2,465	439,442
      		370,251,645	357,254,705
      Allowance for impairment of due from related parties		(74,546,030)	(72,614,521)
      		295,705,615	284,640,184

   3. Loan to associate companies

      	Relationship	30 June 2025 (Reviewed)	31 December 2024 (Audited)
      Dutchkid FZCO and Just Kidding General Trading Company	Associate	22,071,370	21,707,343
      Mideco Trading and Contracting W.L.L.	Associate	2,215,573	3,034,063
      		24,286,943	24,741,406

   4. Due to related parties

      	Relationship	30 June 2025 (Reviewed)	31 December 2024 (Audited)
      Shift Point L.L.C.	Joint venture	1,147,447	1,166,972
      Canon office Imaging W.L.L.	Associate	32,956	120,558
      Other related party	Affiliate	433,773	929
      		1,614,176	1,288,459

      12 Related parties (continued)
   5. Compensation of key management personnel

The above borrowings represent the loans obtained from various local and foreign banks to finance the construction of buildings and investment properties, working capital requirements, project finance loans and repayment of existing loans. These borrowings carry interest at commercial rates. The fair value of properties at 30 June 2025 amounted to QR 2,116,000,000 (31 December 2024: QR 2,116,000,000) are secured against these borrowings.

Borrowings are presented in the condensed consolidated statement of financial position as follows:

The Group's borrowings are subject to various covenants, some of which require compliance within 12 months of the reporting date. As of 30 June 2025, the Group is in compliance with all relevant covenants and expects to remain in compliance with these covenants over the 12 months following the reporting date.

The Group generates revenue primarily from the sale of products, provision of services and through construction contracts. Other sources of revenue include rental income from owned properties and leased investment properties.

The disaggregation of the Group's revenue from contracts with customers are as follow:

1. Revenue (continued) A. Contract balances

   The following table provide information about contract assets and contract liabilities from contracts with customers:

   	30 June 2025 (Reviewed)	31 December 2024 (Audited)
   Contract assets	145,462,501	137,146,568
   Contract liabilities	(68,354,115)	(36,185,551)
   Contract assets, net	77,108,386	100,961,017

   The contract assets primarily related to the Group's rights to consideration for work completed but not billed at the reporting date on several projects relating to the operating segments such as contracting, technology, and energy and industry. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer.

   The contract liabilities primarily relate to the advance consideration received from customers for several projects relating the operating segments such as contracting, technology, and energy and industry, for which revenue is recognised over time.

2. Operating cost

   For the six months ended
   	30 June 2025 (Reviewed)	30 June 2024 (Reviewed)
   Contract costs	250,083,798	257,451,540
   Cost of goods sold	304,610,339	308,410,284
   Cost of service	37,011,051	36,480,985
   Real estate costs	3,317,436	3,387,112
   Depreciation of property, plant, and equipment	1,874,251	3,599,243
   Depreciation of right-of-use assets	1,430,186	1,071,631
   Interest on lease liabilities	659,378	345,815
   Interest charged to projects	55,036	67,402
   Bank charges charged to projects	55,610	93,066
   	599,097,085	610,907,078

3. Other income

   For the six months ended
   	30 June 2025 (Reviewed)	30 June 2024 (Reviewed)
   Exchange income	3,240,238	1,775,877
   Consignment income	1,702,105	1,772,132
   Profit on disposal of property, plant and equipment	538,711	758,625
   Commission income	402,480	410,795
   Miscellaneous income	4,786,804	4,138,638
   	10,670,338	8,856,067

4. Net gain on investment properties

   For the six months ended
   	30 June 2025 (Reviewed)	30 June 2024 (Reviewed)
   Net fair value gain on investment properties	3,273,274	262,376
   	3,273,274	262,376

5. Contingent liabilities

   	30 June 2025 (Reviewed)	31 December 2024 (Audited)
   Letters of credit	47,938,082	42,523,246
   Letters of guarantees	225,498,859	207,266,125
   Capital commitment	4,637,211	27,774,169

6. Earnings per share

   Basic earnings per share amounts are calculated by dividing the profit / (loss) for the period attributable to equity holders of the parent by the weighted average number of ordinary shares outstanding during the period.

   The basic and diluted earnings per share are the same as there were no dilutive effects on earnings.

   For the six months ended 30 June
   	2025 (Reviewed)	2024 (Reviewed)
   Profit attributable to the owners of the Company	46,704,903	26,774,141
   Adjusted weighted average number of outstanding shares	1,143,145,870	1,143,145,870
   Basic and diluted earnings per share	0.041	0.023

7. Fair values of financial instruments

The Group's financial assets (trade and other receivables, retention receivables, due from related parties, loans to associate companies, and cash at bank) and financial liabilities (credit facilities, retention payable and trade and other payables) are measured at amortised cost and not at fair value. Management believes that the carrying values of these financial assets and financial liabilities as at the reporting date are a reasonable approximation of their fair values.

The following table shows the carrying amounts and fair values of financial assets, including their fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

As at 30 June 2025

1. Fair values of financial instruments (continued)

   As at 31 December 2024

   	Carrying amount	Fair value
   		Level 1	Level 2	Level 3
   Equity securities - FVOCI
   Quoted equity securities	51,660,097	51,660,097	-	-
   Unquoted equity securities	46,002,081	-	-	46,002,081
   	97,662,178	51,660,097	-	46,002,081

   The following table shows the valuation technique used in measuring Level 2 and level 3 fair values at 30 June 2025 and 31 December 2024 for financial instruments measured at fair value in the statement of financial position, as well as the significant unobservable inputs used.

   Valuation technique	Significant unobservable inputs	Inter-relationship between significant unobservable inputs and fair value measurement
   Market approach The transaction price of an investment in an unquoted equity instrument, which is identical to the investment being valued and made close to the measurement date, might be a reasonable starting point for measuring fair value at the measurement date.	Not applicable	Not applicable
   Adjusted net asset method This valuation model considers the fair value of the investee's assets and liabilities (both recognised in the statement of financial position and unrecognised). The unquoted equity securities that are carried at adjusted net assets value are valued on the basis of financial statements available. The management assessed that fair value considered for unquoted equity securities on the basis of adjusted net assets is appropriate as these investee's value are mainly derived from the holding of assets rather the deploying the assets.	Expected fair value of the assets and liabilities.	The estimated fair value would increase / (decrease) if the adjusted net assets were higher / (lower).

   Sensitivity analysis

   For the fair valuation of unquoted equity securities that are carried at adjusted net assets value, reasonably possible changes at the reporting date to the significant unobservable input would have the following effect on other comprehensive income.

   	Increase		Decrease
   30 June 2025
   Adjusted net assets (5% movement)	2,396,267		(2,396,267)
   31 December 2024
   Adjusted net assets (5% movement)	2,300,104		(2,300,104)

2. Operating segments

The Group has the following five strategic divisions, which are its reportable segments. These divisions offer different products and services, and are managed separately because they require different technology and marketing strategies.

Information related to each reportable segment is set out below. Segment profit (loss) before tax is used to measure performance because management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries.

1. Operating segments (continued)

   For the six months ended
   30 June 2024 (Reviewed)	Interior and fit-out	Power and energy	Luxury retail and distribution	Technology	Real estate and investments	Total
   External revenue	152,013,812	155,870,810	343,364,567	126,639,399	74,128,244	852,016,832
   Inter-segment revenue	284,871	4,298,445	2,196,968	8,449,001	28,778,026	44,007,311
   Segment revenue	152,298,683	160,169,255	345,561,535	135,088,400	102,906,270	896,024,143
   Segment profit	432,952	4,771,923	15,229,406	4,814,219	5,374,896	30,623,396
   Segment assets	326,049,075	351,067,425	460,636,606	165,279,544	3,119,916,107	4,422,948,757
   Segment liabilities	163,768,297	153,427,136	324,956,011	138,244,971	1,927,913,955	2,708,310,370
   Capital expenditures:
   Tangible assets	706,053	3,950,975	1,671,694	544,784	52,387,634	59,261,140
   Intangible assets	-	-	-	-	-	-
   	706,053	3,950,975	1,671,694	544,784	52,387,634	59,261,140

   Salam International Investment Limited Q.P.S.C. Notes to the condensed consolidated interim financial information

   As at and for the six months ended 30 June 2025

2. Risk management

   Group's risk management objectives and policies are consistent with annual consolidated financial statements for the year ended 31 December 2024.

3. Comparative figures

The corresponding figures presented for 2024 have been reclassified where necessary to preserve the consistency with the 2025 figures. However, such reclassification did not have any effect on the net profit, total assets or total equity for the comparative year.