SAVOLA Company

Savola was founded in 1979 in the Kingdom of Saudi Arabia with share capital of SAR 40 million and 200 employees. Back then, we were a small-scale company importing and refining vegetable oil for sale on our local market. Like any successful business, however, we had a clear vision for the future: to become the leading strategic investment group for our region and generate profits for our shareholders and investors. In the decades that followed, dedication led to growth, followed by diversification and expansion. We initially faced fierce competition from established international players, yet were able to carve out a niche for ourselves by listening carefully to our customers’ needs and preferences. We also conducted in-depth research into the commodities market to minimize costs and maximize margins. 1994 saw us enter the sugar market by investing in our first refinery, located in Jeddah. At the time, annual production capacity was 500,000 tons per year. We also expanded our foods sector operations to Egypt, Algeria, the Levant, Iran, Morocco, Turkey, Sudan, and Kazakhstan. A few years later, in 1998, we made another bold addition to our portfolio by entering the retail sector through the acquisition of the Azizia Panda United group of stores. Already an established brand, we were able to enhance Panda’s positioning and benefit from its real estate holdings. Meanwhile, we also acquired minority stakes in related companies including Almarai, Herfy and Kinan, and made strategic investments in non-core sectors. Today, after almost four decades since Savola was founded, we let our results speak for themselves: 2015 brought net income of SAR 1.79 billion and earnings per share of SAR 3.36. But we believe that it takes more than profit margins to win over investors. Our commitment to ethical principles, summarized by our brand purpose, “Value Built on Values,” means shareholders know they are dealing with a partner they can trust. We are convinced that these guiding principles are the firm foundations on which we will build the successes of tomorrow.

Companies only survive and thrive when they have a clearly defined vision. At Savola, we exist to empower, inspire and strategically guide our companies, partners, customers and employees through supportive programmes and core values. From the CEO to the employee who has just started his or her career, all Savolans play a crucial role in making that vision a reality. We add value for investors, employees and wider society We are a business run for people, by people. This is why Savola’s mission is to have a positive impact on society, while generating profits and growth through strategic investment in the MENAT (Middle East, North Africa and Turkey) region. We are uniquely equipped for this role because of our sector-specific expertise, strong track record and excellent market positioning. In 2015, these factors meant we were able to report gross profit of SAR 5.1 billion and earnings per share of SAR 3.36. In the immediate future, we will increase our focus on our core sectors (food and retail) by gradually selling investments in other industries. These funds will then be used to tap into new markets and enter higher-value product categories. For example, the Thai Union partnership we agreed in 2015 will enable us to launch the John West seafood brand in 12 Middle Eastern markets in 2016. At an operational level, our goal is to gradually move toward a new model where our companies and brands have greater autonomy. We will do this by proactively providing strategic guidance and thought leadership to our companies enabling them to grow and succeed. This way, they will be able to concentrate on strengthening product marketing and branding to increase consumer loyalty in each country. We act in accordance with our values At Savola, ethical principles – honesty, conscientiousness, caring justice and self-control – shape the way we do business. They always have and they always will. That is why we were honored to receive the 2015 Saafah Role Model award in Saudi Arabia, ranking us first out of 31 Saudi companies for integrity and transparency.

Mr. Sulaiman A. K. Al-Muhaidib CHAIRMAN

Mr. Bader Abdullah Alissa VICE CHAIRMAN OF THE BOARD

Eng. Abdullah Mohammed Noor Rehaimi BOARD MEMBER

Savola is composed of companies under two main entities (Savola Foods and Savola Retail) and our specialized investment portfolio. The table below outlines the corporate structure we use to balance our strategic investments and generate top quality products for our investors and shareholders.

At Savola, we know how to turn expertise into profits and growth through flawless governance. It is what we have been doing since 1979. We believe that good governance is the foundation on which we build our future success. Our passion for specialist knowledge is the reason we focus our strategic investments on just two core sectors: food and retail. It is also the rationale behind controlling our managed investments through two dedicated companies led by experts in their respective fields. In addition to managed investments, our portfolio includes strategic minority stakes in carefully selected companies. Savola Foods Savola Foods has come a long way over its history of almost four decades. Having initially offered just edible oil and ghee, the company now manages a wide range of market-leading brands in 30 countries. With household names such as Afia, Shams and Italiano, these brands are loved by consumers and sought out by investors. We never rest easy, though, which is why Savola Foods is currently expanding into new markets and higher-value product categories. Savola Retail Savola Retail operates Panda – a major regional grocery store chain – which used to operates under two brands when Savola group acquired it in 1998 . As of 2016, there is only one brand Panda operates in three different formats including hypermarkets, supermarkets and convenience stores with total number of stores of 498 . These are mainly located in the Kingdom of Saudi Arabia,in addition to its regional expansion in Egypt and UAE. Non-managed investments At Savola, we rely on our unique market knowledge and insight to invest in companies that complement our existing portfolio of assets. The stakes we hold in businesses within our core sectors, such as Almarai (36.52%) and Herfy (49%), help to cement our industry-specific knowledge and generate higher profits. We also leverage our investment expertise through holdings in non-core sectors. One example of this is our presence in the real estate sector through companies such as Kinan International Company for Real Estate Development (in which we own a 29.9% stake), Knowledge Economic City (11.5%) and Dar Altamlik. We also hold a 15% stake in financial services company Swicorp and the Swicorp Joussour Fund, as well as a 49% stake in Intaj Capital Limited Fund.

For Savola, values are not just words on a page – they are a blueprint for concrete actions we take as individuals, as a team and as a company every day. Since the group was founded in 1979, this was the way we do business:

Net income SAR 1.79 billion Gross profit SAR 5.1 billion Operational profit SAR 1.83 billion Net income (before capital gains and exceptional items) SAR 1.5 billion Earnings per share SAR 3.36 Savola Foods A joint venture was agreed with Thai Union to launch the John West seafood brand in 12 markets We developed new healthy edible oils such as omega 3 sunflower oil and sesame oil Sales volume 4.03 million tons Consolidated revenue SAR 13.2 billion Net income SAR 687 million Gross profit SAR 1.87 billion Savola Retail The number of Panda outlets increased by 44% Own-brand sales increased by 14% year-on-year Consolidated revenue SAR 13.5 billion Net income SAR 146 million Gross profit SAR 3.245 billion Store openings 152