Annual report 2020 eng

7 ANNUAL REPORT 2020 Brothers and Sisters: Allow me to review with you the Company's achievements on the ground during the past year, which were the result of the action plan laid down for managing the crisis, which enabled the Company to confront and reduce the negative effects resulting from the novel coronavirus epidemic. With the blessings of God, Mazaya Company was able to reduce the negative effect resulting from the reluctance of the tenants to pay their rental obligations towards the Company, following the shrinkage of all the markets and activities during the year, by offering rewarding rental discounts and exemptions to support the continuity of your activities and operations. Despite the negative effect resulting from this matter, nevertheless it has also assisted in increasing the collections of the old balances due by them, as it was stipulated in order to give such discount to pay all the outstanding amounts. This contributed in the Company's success to foster its cash liquidity during the crisis, despite the discounts given to its clients, and therefore resulted in the Company's ability to retain the majority of its tenants and support their continuation in the Company's properties. In addition, the Company's entry in new projects in 2020 led to fostering and increasing its rents compared with 2019. Furthermore, Mazaya Company succeeded during 2020 to achieve a significant saving in its administrative and operational expenses at the rate of 20% compared with 2019, as a result of the policy adopted by the Company reach a balanced and sustainable rate of the Company's operational costs in order to maximize the Company's profitability and raise its return rates. This matter has significantly contributed in reducing the negative effects resulting from the novel coronavirus epidemic during 2020. During the year 2020, the Company was able to reduce its debts with the banks as well as reduce the finance charges during the year, which was not achieved only by reducing the interest rates by the Central Bank of Kuwait but also as a result of the Company's success in the repayment of a significant part of its loans during the year, particularly those carrying high finance burdens rates.This resulted in reducing the average rate of the credit facilities costs to suitable levels. In addition, the Company is currently finalizing the transformation no the majority of its short term liabilities to the banks into medium and long term, in addition to its success during the year to restructure its liabilities to the banks to avoid the effects of the novel corona epidemic and its impact o the Company's cash flows, which has not prevented the Company from fulfilling all its obligations towards the contractors and main suppliers, despite the effects resulting from the outspread of the novel coronavirus endemic. Mazaya was able to stabilize the economic condition of the Company and foster the balance of cash flow during the year, as a percussion to resist the significant changes in which the world is living as a result of the effects of the coronavirus pandemic during 2020. Ladies and Gentlemen: At the end of my statement, I would like to extend my deep gratitude to the chairman and members of Mazaya Holding Company for their indefinite support and constant trust. I would also like to extend my heartfelt gratitude and appreciation to the shareholders of Mazaya Company and all our partners, as well as renew my gratitude and appreciation to all the executive teams of the Company for their dedication and constant efforts to lead, execute and accomplish the Company's operations with all creativity and leadership, and for their constant compliance with the mission and vision of "Mazaya" through the strategic plans laid down to fulfill the goals and aspirations of our valuable shareholders and clients. Peace and blessings of God upon you.