Chairman’s Message

Board of Directors Report to the Shareholders

Dear Shareholders,

May peace and Allah's mercy and blessings be upon you.

The Board of Directors has the pleasure to welcome you to the annual meeting of the Ordinary General Assembly of your esteemed Company to present the BOD’s report on the results of the Company’s business and operations as on 30/09/2021.

First Education Company (FEC) is seeking to develop the performance of its investment portfolio in the education sector, seize new opportunities and exit investments at the right time, with the appropriate return.

FEC's investments recorded decline in performance during the academic year 2020-2021 on the back of Covid-19 precautions and the accompanying shift to e-learning and the reduction of tuition fees.

In the State of Kuwait, the revenues of Al Kalemah Al Tayebah Company (Al Resala Bilingual School) declined by 22.3%. Similarly, the revenues of Integrated Curricula Company (Al Nibras Ideal School) declined by 18% due to the Ministry of Education’s decision to reduce tuition fees by 25%.

In Riyadh city, Saudi Arabia, the Company’s management is negotiating with several parties to exit the Al-Nafal Educational Complex, and the Company is striving to collect the overdue rent amounting to Saudi Riyal 9.8 million from the university utilizing it.

In the Kingdom of Bahrain, the revenues of the Kingdom University decreased by 2.7%. the University also achieved a notable increase in the number of fresh students for the academic year 2021-2022.

In the Hashemite Kingdom of Jordan, the Petra Education Company (University of Petra) maintained its financial performance for the year 2021 with earnings per share estimated at 0.23 Jordanian dinar. Moreover, the University obtained an approval from the official educational authorities to open the Faculty of Dentistry.

As for the Company's future projects, the Company is seeking to exit an educational project in the Kingdom of Saudi Arabia during the financial year ending in August 2022. It is expected that the results of the associate companies will return to their pre-Covid-19 results. We expect a growth in the results of the Kingdom University in the Kingdom of Bahrain due to the increasing demand for enrollment in the university

The Company's consolidated revenues for the financial period ended in September 2021 declined by 47% to KD 144.254 (compared to KD 274,372 for the financial year ended in September 2020). The main reason for the decline in the Company's revenues is attributable to the fall in the results of the associate companies. On the other hand, the Company's consolidated expenses increased by 5% to KD 237,146 (compared to KD 225,709 for the financial year ended in September 2020). Finally, the net loss to the Company's shareholders at the end of the period reached KD 92,892 (compared to a profit of KD 48,663 in the previous financial year).

In conclusion, I would like to seize this opportunity to extend grateful thanks and appreciation to all members of the Company at all administrative and technical levels for their sincere efforts made in achieving these notable accomplishments, thanks to Allah Almighty. Also, I wish to all our esteemed shareholders continuous prosperity and success in the future.

Chairman 
Mr.Mohammad G AL-Tayyar