Investor Presentation3Q 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.

• 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 subsidiaries and associates operating in a wide array of sectors including real estate, telecommunications, tourism, industry and financial services

• The Company has been listed on the Palestine Exchange (PEX) since 1997. PADICO HOLDING’s shareholder profile is diverse and includes major investors from Palestine as well as international markets, exceeding 11,000 shareholders.

The PADICO Advantage

1. 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.

2. PADICO Holding has played a pioneer role in developing the Palestinian economy through establishing a number of innovative projects including founding the first securities 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 Ramallah and Gaza.

3. 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.

4. PADICO HOLDING has been listed on Palestine Exchange (PEX) since 1997, which guarantees high levels of transparency.

5. 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 witness continuous growth in its profits.

Our Investment Strategy

Effective CSR

Pioneer CSR strategy and Socially Responsible Investments (SRI)

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

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, hospitality, manufacturing and financial sectors under the umbrella of specialized holding companies, in addition to divestiture of underperforming investments or others in which PADICO HOLDING does not own a controlling stake.

Real Estate & Hospitality Sectors Restructuring Plan

Merging 14 subsidiaries operating in the real estate and hospitality sectors into a single Holding through a share swap transaction with a paid in capital of more than $ 150 Million.

PADICO HOLDING will own a controlling stake in the new holding.

Due diligence of the companies has already been conducted, and Ernst and Young is finalizing the update of their valuation. International Consultancy firms have already been contacted in order to submit their proposals for preparing a 5 year business plan for the newly created holding.

Recent Developments

During the first nine months of 2010, Palestine Tourism Investment Company (PTIC) and PIEDCO Gaza have successfully completed their capital restructuring plans, and have become ready for the merger process.

PADICO Increased its stake in PIEDCO Holding from 55.32% to 77.87% through the purchase of PIF and Arab Bank’s Shares.

Al Mashtal for Tourism Investments has successfully raised its paid-in capital to USD33million, and is currently in the preparation phase for starting operations at Al Mashtal Hotel in Gaza, during the first quarter of 2011 .

Industrial Sector Restructuring Plan

Consolidating 5 industrial companies under the umbrella of Palestine Industrial Investment Company (PIIC).

PADICO HOLDING will own a controlling stake in the Holding.

The new Holding has already acquired PADICO’s shares in NCI, in addition to PADICO and PIEDCO’s shares in GMC. Best Buy has been divested and Akarat is currently available to be merged with PRICO Holding.

Palestine Exchange (PEX) Restructuring Plan

Transform PEX from a private shareholding company to a public shareholding company.

PADICO HOLDING will reduce its holdings in PEX from 78% to around 51%, initially through private placement and then through an IPO that is expected to be accomplished during 2011.

Separate the Depositary and Clearance Center from trading activities.

Second: Issuing Corporate Eurobonds

Issuing the first Corporate Eurobonds in Palestine

•PADICO Holding is in the process of issuing the first corporate bonds in Palestine in the amount of USD70 million with 5 year maturity in January 2011.

•The bond proceeds will be used to re-pay outstanding high cost bank borrowings, in addition to financing future investment projects across a number of sectors.

•PADICO Holding has hired two highly respectful regional investment Banks to act as co- leaders and advisors on the issue.

Our Investment Outlook (2)

A Highlight Of Our Key Investments

Capital* 185.65

% ** 31.24

Capital 16.9

% 62.7

Capital 10.00

% 78.0

Capital 26.45

% 60.1

Capital 25.7

% 42

Capital 68.51

% 70.9

*Authorized capital in USD millions ** % owned by PADICO ***Holding as of 30-9-2010

Capital 26.5

% 77.8

PADICO HOLDING’s Financial Statements

Consolidated Income Statement Summary

Amount USD thousand 3Q 2009 3Q 2010 Change %

Operating Revenue 21,801 39,455 81%

Share of Associates’ results of Operations

31,802 28,937 (9)%

Gain From Financial Assets Portfolio 919 1,614 76%

Total Revenues 54,893 72,348 32%

Operating Expenses 14,431 25,254 75%

General & Admin. Expenses 9,225 10,795 17%

Finance cost 4,731 4,799 1.4%

Other Revenue (Expenses) 7,105 662 (91)%

Total Expenses 30,008 43,066 44%

Net Profit 31,688 28,888 (9)%

Consolidated Income Statement Summary

When compared to 3Q 2009, 3Q 2010 has witnessed:

81% growth in Operating Income accredited to the restructuring plan currently being implemented, and the enhanced operational efficiency at subsidiaries’ level.

9% decrease in Share of Associates’ Results of Operations due to a decrease in PALTEL Group’s net profit from JOD72 million in Q3 2009 to JOD 65.1 million in Q3 2010.

32% growth in Total Revenues.

6% decrease in Income Before Tax which amounted to USD 29.94 million in Q3 2010. This decrease resulted from the absence of Gain From Business Combination of Subsidiaries which is a non recurring item that amounted to USD 6.14 million, and was incorporated in Q3 2009 revenues. When excluding this item for comparative purposes only, income generated from the Company’s main and continuing activities has actually witnessed an increase of 16% when comparing Q3 2010 to Q3 2009.

In Q3 2010, Comprehensive Income amounted to USD 32.04 million, resulting from an increase in Fair Value of Financial Assets which totaled USD 2.43 million, in addition to USD 0.72 million of Foreign Currency Translation.

Revenue Sources

Revenue Sources/ USD Million

3Q

2009 %

3Q

2010 % Change %

Operating Revenue 21.8 39% 39.46 55% 17.66 81%

Share of Associates’ Results of Operations

31.8 58% 28.94 40% (2.86) (9)%

Gain From Financial Assets Portfolio

0.92 2% 1.61 2% 0.69 75%

Other Revenue 0.37 1% 2.34 3% 1.97 532%

Total Revenue 54.89 100% 72.35 100% 17.46 32%

Consolidated Balance Sheet SummaryAmount / USD thousand 2009 3Q 2010 Change

%

Cash & Financial Investments

95,425 90,430 (5)%

Investment in Associates 308,120 324,611 5%

Investment in Properties 69,431 64,392 (7)%

Accounts Receivable & Loans

35,609 43,444 22%

Other Assets 111,610 114,050 2%

Total assets 620,197 636,920 3%

Loans & Credit Facilities 165,803 154,190 (7)%

Other liabilities 24,689 25,416 3%

Total liabilities 190,492 179,788 (6)%

Total equity 429,705 457,132 6%

Outstanding shares 250,000 250,000 -

Total liabilities decreased by 6% due to a decline in loans & credit facilities from USD165.8 million in 2009 to USD154.19 million in 3Q 2010, accredited to the Company’s strategy of reducing borrowings and debt obligations.

Assets

Assets USD Thousand 2009 %

3Q

2010 % Change %

Cash and Financial Investments 95,425 15% 90,430 14% (4,994) (5)%

Investment in Properties 69,431 11% 64,392 10% (5,039) (7)%

Investment in Associates 308,120 50% 324,611 51% 16,491 5%

Accounts Receivable & Loans 35,609 6% 43,444 7% 7,835 22%

Property, Plant & Equipment, and Intangible Assets and Projects in Progress and

106,770 17% 108,450 17% 1,680 2%

Inventories & Read for Sale Properties

4,842 1% 5,609 1% 767 16%

Total 620,197 100% 636,936 100% 16,739 3%

Key Subsidiaries and Affiliates

Paltel Group

• Established in 1995 as the first Palestinian telecommunication company. The Group’s services cover all aspects of the communication spectrum.

• PALTEL is currently undergoing a process of internal corporate restructuring aiming to reach an optimal firm size and enhance overall efficiency.

• Number of subscribers has increased by 26% in 3Q 2010 when compared to 3Q 2009 to reach 2.643 million.

• The decline in PALTEL Group’s net income resulted from an increase in losses registered by associates which rose from JOD 4.96 million in Q3 2009 to JOD 6.99 million in Q3 2010. This loss is mainly attributed to the share of VTEL Holdings in the results of operations. Moreover, PALTEL’s net income has also decreased due to an increase in the “other expenses” item which amounted to JOD 7.74 million in Q3 2010 compared to JOD 5.63 million in Q3 2009. The increase in “other expenses” resulted from the final payment that was made out to the Palestinian Authority as part of the licensing agreement which was recently signed between the two parties.

Income Statement

(Amounts in JOD thousand)

3Q

2009

3Q

2010

Change

%

Operating Revenue 231,913 252,420 9%

Gross Profit 179,177 192,579 7%

Operating Income 74,010 85,700 16%

Net Income 72,022 65,099 (10)%

Balance Sheet

(Amounts in JOD thousand)

2009

3Q

2010

Change

%

Total Assets 531,270 548,160 3%

Total Liabilities 180,085 177,803 (1)%

Total Equity 351,185 370,357 5%

Palestine Real Estate investment Company (PRICO)

• PRICO is considered PADICO HOLDING’s arm in the real estate and construction sector.

• When compared to 3Q2009, 3Q 2010 has witnessed:

- 362% increase in operating revenues.

- 486% increase in gross profit.

- 263% 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 - Ramallah/ Total cost $11 million.

.

Income Statement

(Amounts in JOD thousand)

3Q

2009

3Q

2010

Change

%

Operating Revenues 2,930 13,548 362%

Gross Profit 674 3,952 486%

Net Income (1,409) 2,299 263%

Balance Sheet

(Amounts in JOD thousand)

2009

3Q

2010

Change

%

Total Assets 81,079 86,698 7%

Total Liabilities 18,121 21,548 19%

Total Equity 62,959 65,151 3%

Palestine Exchange (PEX) • PEX represents one of PADICO

HOLDING’s avant-garde accomplishments in the financial sector.

• The Exchange currently has 40 listed companies.

• PEX’s total market cap as of 30-9-10 amounted to USD

2,501,637,169.

• Applicable regulations at PEX are compatible with best international practice.

Income Statement

(Amounts in USD Thousand)

3Q

2009

3Q

2010

Change

%

Operating Revenues 2,256 2,101 (7)%

Net Income 457 (32) (105)%

Balance Sheet

(Amounts in USD thousand)

2009

3Q

2010

Change

%

Total Assets 12,494 12,601 0.86%

Total Liabilities 822 910 11%

Total Equity 11,672 11,691 0.16%

Palestine Industrial Investment Company (PIIC)

• PIIC was established in 1994 as a holding company with investments in PPC and PPIC.

• As part of PADICO HOLDING’s restructuring process, 5 industrial companies are currently being consolidated under the umbrella of PIIC.

• When comparing 3Q 2010 to 3Q 2009:

- Sales grew by 41%. - Gross profit advanced by 100%. - Net income increased by 71%.

Income Statement

(Amounts in JOD Thousand)

3Q

2009

3Q

2010

Change

%

Sales 10,321 14,537 41%

Gross Profit 2,343 4,681 100%

Net Income 1,772 3,037 71%

Balance Sheet

(Amounts in JOD thousand)

2009

3Q

2010

Change

%

Total Assets 34,920 39,429 13%

Total Liabilities 8,414 9,332 11%

Total Equity 26,506 30,097 14%

Palestine Poultry Company (PPC)

• When comparing 3Q 2010 to 3Q 2009: - Net income advanced by 65%. - Gross profit increased by 96%.

• PPC’s stock has witnessed significant performance with the share price increasing by 124% during 3Q 2010 closing at 2.89 JOD as of 30-9-2010.

• PPC’s future plans focus on completing the Company’s production cycle through establishing a slaughter house, which will start operations by the end of 2010. The new facility will initially produce 3,000 birds per hour, which will be gradually increased to reach 6,000 birds per hour.

• The company also plans to establish additional chicken farms in the first quarter of 2011.

Income Statement

(Amounts in JOD Thousand)

3Q

2009

3Q

2010

Change

%

Operating Revenues 9,377 13,360 42%

Gross Profit 2,389 4,686 96%

Net Income 1,914 3,150 65%

Balance Sheet

(Amounts in JOD thousand)

2009

3Q

2010 %

Total Assets 23,237 27,019 16%

Total Liabilities 7,561 8,282 10%

Total Equity 15,676 18,737 20%

PADICO HOLDING’s Stock

(www.reuters.com) Stock Chart

Stock Performance

• As of 30-9-2010, PADICO HOLDING’s share alone constituted 27 % of PEX’s total trading volume, and 19% of PEX’s total trading value, which is a strong implication of the stock’s high liquidity and demand levels!

• As of 30-9-2010, PADICO HOLDING’s share contributed 14% of PEX’s total market cap.

• PADICO HOLDING’s share price has witnessed an increase during the first nine months of 2010 where it opened at 1.21$ on 1/1/10 and closed up by 12% at 1.36$ as of 30-9-2010.

2008 2009 1Q 2010

1H2010

3Q2010

Closing Share Price (USD)

1.21 1.19 1.31 1.39 1.36

BV/ Share (USD) 1.38 1.45 1.5 1.53 1.58

EPS (USD) 0.09 0.17 0.04 0.075 0.109

P/E (x) 13.44 7.00 8.18 9.27 9.36

P/BV (x) 0.87 0.82 0.87 0.91 0.86

Market Capitalization (USD Million)

303 298 328 347.5 340

Future Projects 2010-2013

Future Projects

• PADICO HOLDING’s future strategy focuses its 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.

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.

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 involve 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 January 2011

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..

Contact Information

PADICO HOLDINGRamallah – PalestineTel: + 970 2 240 3336Fax: + 970 2 240 3363

P.O.Box: 1708 Ramallah – PalestineEmail: padico_ramallah@padico.com