INVESTOR RELATIONS: Quarterly Financial Update For the period ended 30 June 2010

INVESTOR RELATIONS:Quarterly Financial UpdateFor the period ended30 June 2010Release Date: 26th August, 2010

Disclaimer & General Notes

INDUSTRIES QATAR | Quarterly Financial Update | 2

Industries Qatar QSC:

The companies in which Industries Qatar QSC directly and indirectly owns investments are separate entities. In this presentation, “IQ” and “the group” are sometimes used for convenience in reference to Industries Qatar QSC.

Disclaimer:

This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Industries Qatar QSC. All statements other than statements of historical fact are deemed to be forward-looking statements, being statements of future expectations that are based on current expectations and assumptions, and involve known and unknown risks and uncertainties that could cause actual results, operations and business performance or events impacting the group to differ materially from those expressed or as may be inferred from these statements.

There are a number of factors that could affect the realisation of these forward-looking statements such as: (a) price fluctuations in crude oil and natural gas, (b) changes in demand or market conditions for the group’s products, (c) loss of market share and industry competition, (d) environmental risks and natural disasters, (e) changes in legislative, fiscal and regulatory conditions, (f) changes in economic and financial market conditions and (g) political risks. As such, results could differ substantially from those stated, or as may be inferred from the forward-looking statements contained herein. All forward-looking statements contained in this presentation are made as of the date of this presentation, as marked on the Cover page.

Industries Qatar QSC, its Directors, officers, advisors, contractors and agents shall not be liable in any way for any costs, losses or other detrimental effects resulting or arising from the use of or reliance by any party on any forward-looking statement and / or other material contained herein. Industries Qatar QSC, its subsidiary, joint ventures and associated companies are further in no way obliged to update or publish revisions to any forward-looking statement or any other material contained herein which may or may not be known to have changed or to be inaccurate as a result of new information, future events or any reason whatsoever. Industries Qatar QSC does not guarantee the accuracy of the historical statements contained herein.

General Notes: IQ’s accounting year follows the calendar year. No adjustment has been made for leap years. Where applicable, all values refer to IQ’s share. Values expressed in QR billions and percentages have been rounded to 1 decimal point. All other values have been rounded to the nearest

whole number. Values expressed in US $’s have been translated at the rate of US $1 = QR3.64.


o Earnings up 80% on last year adjusted profitsNet profit of QR2.6bn: +0.0% v unadjusted profits (QR2.6bn), +79.5% v adjusted profits (QR1.4bn, ex ‘price difference’ claim of QR1.2bn booked in H1, 2009).

o Group set to beat full year profit target of QR4.1bnRevenue in line; Net profit: 64% of full year target (QR4.1bn) achieved in H1, 2010.

o Revenues up 21% on sharp steel price movementRevenue: QR5.5bn (+20.8% v H1, 2009); petrochemical and steel prices ahead of budget, fertiliser marginally behind.

o Volumes affected by planned / unplanned shutdowns, but utilisation still good at 95%All plants experienced shutdowns, but methanol (52 days) and MTBE (87 days) heavily impacted. Shutdowns due to maintenance and / or technical reasons only.

o Strong QoQ, YoY gross margin driven by steel segmentGross margin of 50.8%: +3.6% v Q1, 2010; driven by steel: 41.5% (+25.2% v Q1, 2010)

o RLOC / Qatofin launched, mega-projects on trackRLOC / Qatofin: Commercial production started in Q2, 2010; LDPE-3, QAFCO 5 and QAFCO 6 on track; Qatar Melamine due to launch in Q3, 2010.

o Significant PPE / PUD investment YTDIncremental spend of QR2.5bn primarily attributable to LDPE-3, QAFCO 5 and QAFCO 6.

Key Highlights

Revenue, Net Profit By Quarter


2,176 2,331

2,583 2,567 2,655

2,791

612 853

1,197 1,048

1,214 1,416

800 366

0

500

1,000

1,500

2,000

2,500

3,000

Q1, 2009 Q2, 2009 Q3, 2009 Q4, 2009 Q1, 2010 Q2, 2010

QRm

Net Profit Price Difference Claim Revenue

o Earnings up 80% on last year adjusted profitsNet profit of QR2.6bn: +0.0% v unadjusted profits (QR2.6bn), +79.5% v adjusted profits (QR1.4bn, ex ‘price difference’ claim of QR1.2bn booked in H1, 2009).

o Most segments reported profit growth on last yearPetrochemicals: +36.4%; Fertiliser: +11.9%; Steel -36.3%

o Revenue up YoY, QoQ Revenue: +20.8% v H1, 2009, +5.1% v Q1, 2010

o All segments reported revenue growth on last yearPetrochemicals: +41.5%; Fertiliser: +12.5%; Steel +11.9%

o Group set to beat full year profit target of QR4.1bnRevenue (QR10.9bn) and gross profit (QR4.9bn) appear achievable

o 2010 budgeted price expectations appear reasonable YoY price inflation on 2009 averages: Petrochemicals ≈5%, urea ≈2%, steel +7%

o All segments on target

H1 Performance v Budget


Revenue Gross Profit Net Profit0%

20%

40%

60%

80%

100%

50% 55%64%

50% 45%36%

H1, 2010 BTA

3,473

1,830 1,846 2,603

01,0002,0003,0004,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

QR STEEL BAR

20092008 2010

2,772

889 948 1,105

964 0

1,0002,0003,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

QR UREA

20092008 2010

3,657

1,722 2,452

2,942 2,766

01,0002,0003,0004,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

QR MTBE

20092008 2010

6,580

3,261 4,009 5,557

5,425

02,0004,0006,0008,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

QR LDPE

20092008 2010

Key Product Prices By Quarter


Sustained petrochemical product prices recovery

Prices stabilised / troughed Positive price recovery

Price / Volume Variance Bridge

o Revenue improvement principally due to product pricesPetrochemicals: +QR753.4m; Fertiliser: +QR117.2m; Steel: +QR322.3m

o Planned / unplanned shutdowns affected group volumes


H1, 2009 Price variance Volume variance H1, 20100

1,000

2,000

3,000

4,000

5,000

6,000

4,507

5,446 +1,193 -255

QRm

Utilisation Rates By Plant / Product


o Group utilisation running at 95%

o Methanol, MTBE affected by planned / unplanned shutdownsUnplanned shutdown (MTBE: 38 days) to enable mechanical repairs, and not due to demand-related concerns or feedstock supply issues. Planned shutdowns (Methanol: 52 days; MTBE: 50 days) for routine maintenance.

o All other plants had planned shutdowns

o No further shutdowns planned for 2010.

NOTE: Utilisation excludes RLOC / Qatofin. To be included from Q3, 2010.

Ethylene LDPE Methanol MTBE Ammonia Urea Steel Bar50%

60%

70%

80%

90%

100%

110%

108%

98%

71%

57%

104%101%

97%

Gross Margin By Segment


o Gross margins at highest levels since 2008, at 51%

o Petrochemical margins affected by shutdownsQoQ dip attributable to fuel additives shutdowns

o Steel segment benefited from improved prices, reduced production costs

Q1, 09 Q2, 09 Q3, 09 Q4, 09 Q1, 10 Q2, 100%

20%

40%

60%

80%

37%47% 51%

60% 57%63%

62% 60%

5% 16%

41%

IQ Petrochemicals Fertiliser Steel

Current Projects Spend To Date

o Projects in progress and on budgetLDPE-3 (Q4, 2011), QAFCO 5 (Q1, 2011) and QAFCO 6 (Q1, 2012) ahead of schedule

o Qatar Melamine due to launch in H2, 2010

o QS Upgrade Project announced in Q1Works due to start in H2, 2010

o RLOC / Qatofin commercial production started in Q2Qatofin operating at 80% utilisation, sales recognised in Q2


LDPE-3 QAFCO 5 QAFCO 6 Melamine Urea Revamp0.0

2.0

4.0

6.0

8.0

10.0

0.9

7.2

0.9

2.4

1.5

Spend To Date Balance

Stated in QR Bn

Summary Profit & Loss

o Commercial launch of RLOC / Qatofin in Q2, 2010o Other affected by reduced Other Income (QS ‘Price Difference’ claim booked in

H1, 2009), but aided by improved performance of Associates (QVC and

GUSC).

o Reduced finance charges despite higher loans balance


ActualStated in QR Million H1 QR m %

Revenue 5,446 +939 +21%

Cost of Sales -2,776 +174 -6%

Gross Profit 2,670 +1,113 +72%Gross Profit% +49.0% +14.5%

Selling Expenses -84 -16 +24%

G & A Expenses -266 -2 +1%

Operating Profit 2,320 +1,095 +89%

Other 372 -1,088 -74%

Finance Charges -61 -6 +12%

Net Profit 2,630 -1 -0%Net Profit % +48.3% -10.1%

v 2009 (H1)

Summary Balance Sheet

o Total Assets increase mainly due to investment in PPE / PUDQR2.5bn invested since 12/2009, mostly LDPE-3, QAFCO 5 and QAFCO 6

o Working Capital increased by QR466m Inventory increase from Qatofin & QS

o Loans increase due to drawdowns in QAPCO, QAFCO 5 debt

o Strong financial positionQuick Ratio (3.02 v 4.06 at 12/2009), Debt : Equity ratio (38.8% v 31.6% at 12/2009)



Property, Plant & Equipment 8,558 +1,047 +14%Projects Under Development 9,272 +1,150 +14%Cash & S-T Deposits 4,084 -1,750 -30%Other Assets 6,357 +702 +12%Total Assets 28,270 +1,149 +4%

Loans 7,260 +1,262 +21%Other Liabilities 2,322 +212 +10%Shareholders' Equity 18,688 -325 -2%Total Liabilities & Equity 28,270 +1,149 +4%

v 2009 (YE)

Summary Cash Flow Statement

o Significant spend in PUD & PPEQR2.5bn invested since 12/2009, mostly LDPE-3, QAFCO 5 and QAFCO 6

o Drawdown on loans Attributable to QAPCO drawdown of QR584.4m (Qatofin), QAFCO drawdown of QR819.0m (QAFCO 5).



Net Profit 2,632 -1 -0%Adjustments:

Depreciation 289 +42 +17%Other -697 -446 -178%

Cash From Operations 2,223 -405 -15%

Investment in PPE & PUD -2,491 -396 -19%Other investments -351 -2,094 +120%

Net movement in loans 1,259 +2,004 -269%Dividend paid -2,752 +1,650 +37%

Net Movement -2,112 +758 +26%

B/F Cash & Cash Equivalents 4,840 -1,096 -18%C/F Cash & Cash Equivalents 2,729 -338 -11%

v 2009 (H1)

Industries Qatar QSC:

Industries Qatar QSC (“IQ”) was incorporated as a Qatari joint stock company on April 19, 2003. The business operations of the company comprise the direct holding of shares in the following subsidiary and joint venture companies: (i) Qatar Steel Company QSC (“QS”), a wholly-owned subsidiary, engaged in the manufacture and sale of steel billets and reinforcing bars; (ii) Qatar Petrochemical Company Limited QSC (“QAPCO”), a joint venture owned 80% by IQ, engaged in the production and sale of ethylene, low-density polyethylene (“LDPE”), linear low-density polyethylene (“LLDPE”) and sulphur; (iii) Qatar Fertiliser Company SAQ (“QAFCO”), a joint venture owned 75% by IQ, engaged in the manufacture and sale of ammonia and urea; (iv) Qatar Fuel Additives Company Limited QSC (“QAFAC”), a joint venture owned 50% by IQ, is engaged in the production and export of methanol and methyl-tertiary-butyl-ether (“MTBE”); and (v) Fereej Real Estate Company, a joint venture owned 34% by IQ, engaged in investing in residential and commercial buildings, and the provision of facilities management and construction project management services.

Qatar Petroleum, the largest shareholder, provides all of the head office functions for IQ through a comprehensive service directive. The operations of the subsidiaries and joint venture remain independently managed by their respective Boards of Directors and senior management teams.

Fereej Real Estate Company

Incorporated in 2008 as a joint venture, Fereej is currently owned by IQ (34%), Qatar Real Estate Investment Company (33%) and Al-Koot Insurance And Re-Insurance Company (33%). The company’s activities are focused on investing in residential and commercial buildings, and the provision of facilities management and construction management services.

Qatar Fertiliser Company SAQ

Qatar Fertiliser Company SAQ (“QAFCO”) is the world’s largest single site producer of urea and ammonia. It was incorporated in 1969 and is currently a joint venture between Industries Qatar QSC (“IQ”) [75%], Fertiliser Holdings AS (10%) and Yara Netherland BV (15%). QAFCO is engaged in the manufacture and sale of ammonia and urea, which are sold primarily in the Indian sub-continent, and urea formaldehyde condensate.

About Industries Qatar QSC


Qatar Petrochemical Company Limited QSC

Incorporated in 1974 as a joint venture, Qatar Petrochemical Company Limited QSC (“QAPCO”) is currently owned by Industries Qatar QSC (“IQ”) [80%] and TOTAL Petrochemicals (France) [20%]. QAPCO has two joint ventures, Qatofin Company Limited QSC and Ras Laffan Olefins Cracker Company, and two associated companies, Qatar Vinyl Company Limited QSC and Qatar Plastic Products Company WLL.

QAPCO was established with the aim of utilising the associated and non-associated ethane gas from petroleum production. QAPCO is one of the leading producers of ethylene and variable grade low-density polyethylene (“LDPE”) [under the brand name “Lotrene”] in the Middle East, with sulphur being its by-product. The LDPE is marketed in over 75 countries, with the main markets being the Middle East, Far East, Africa and the Indian sub-continent. A substantial part of the ethylene produced is used in the LDPE production process, with the remainder being supplied to QAPCO’s associate, QVC, to meet its feed requirements.

Qatar Fuel Additives Company Limited QSC

Incorporated in 1991 as a joint venture, Qatar Fuel Additives Company Limited QSC (“QAFAC”) is currently owned by Industries Qatar QSC (“IQ”) [50%], OPIC Middle East Corporation [20%], International Octane Limited [15%] and LCY Middle East Corporation [15%]. The company was established as part of Qatar’s strategic plan to diversify its petrochemical base and expand its downstream industries. It is recognised as a producer and exporter of high quality methanol and methyl-tertiary-butyl-ether (“MTBE”). Its primary markets are the Far East, Europe and the Gulf region.

Qatar Steel QSC

Qatar Steel QSC (“QS”) was the first integrated steel producing company in the GCC region and is Qatar’s sole steel producer. Originally incorporated in 1974 as a joint venture between the State of Qatar, Kobe Steel and Tokyo Boeki, QS was subsequently wholly-acquired by Industries Qatar QSC (“IQ”) in 2003. QS is engaged in the manufacture and sale of steel bars, billets and reinforcing bars, which are sold primarily in the local and GCC markets.

About Industries Qatar QSC


For further information, Industries Qatar can be contacted as follows:

Email: [email protected]

Telephone: (974) 4430-8681

Fax: (974) 4429-3750

Mail: PO Box 3212, Doha, State of Qatar

Please refer to www.iq.com.qa for the latest information, publications, press releases and presentations about Industries Qatar and the IQ group.


Documents

INVESTOR RELATIONS: Quarterly Financial Update For the period ended 30 June 2010