AGTHIA Group — Interim / Quarterly Report 2022

May 8, 2022

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AGTHIA GROUP PJSC DIRECTORS’ REPORT

Dear Shareholders,

On behalf of the Board of Directors, I am pleased to present our quarterly report and condensed consolidated financial statements of Agthia Group PJSC (the “Company”) and its subsidiaries (the “Group”) for the period ended 31 March 2022.

As we enter the second year of our five-year strategy, 2022 sees us continuing to focus on our transformational journey while navigating ongoing market volatility and unprecedented inflationary pressure. We continue to proactively manage cost and supply chain disruptions by maintaining our strategic efforts on 1) optimizing our product and channel mix, 2) pricing to address input costs whilst preserving product quality and availability, and 3) optimizing our cost structure and accelerating synergy extraction from acquired entities.

Quarter one of 2022 marks the first quarter to consolidate the performance of all five acquisitions announced throughout 2021. M&A strategy execution has laid the foundations for reshaping the business model into four primary verticals, in line with our tactical approach of unlocking new revenue streams in the consumer-based value-add products. Seamless integration of the acquired entities into Agthia remains the core focus of our Transformation office to set the roadmap for 2022 onwards, while ensuring we are on track to reap the benefits of the continuous journey of integration:

• Al Foah Dates in UAE: Phase one of the integration was completed as planned in 2021. We successfully re-sized the organization while integrating processes and people and unlocking sizable synergies. This year sees our focus shift onto long-term growth initiatives and building our snacking footprint across markets. During the first quarter of 2022, we have progressed with rebranding our core Date Crown portfolio and value engineering packaging to support better brand positioning with an optimized cost structure.

• Al Faysal Bakery in Kuwait: The 2021 integration focus was directed towards processes and governance while ensuring business continuity and on-track execution. This year will see us shift focus to a consolidated management structure in Kuwait to allow us to leverage Al Faysal’s strong selling and distribution network in the country to unlock go-tomarket opportunities for other Agthia business lines. We successfully piloted the launch of Al Foah and BMB products in Kuwait via Al Faysal and will continue to monitor progress and plan new launches.

• Nabil Foods in Jordan and Atyab in Egypt: Our 2022 focus is to consolidate Nabil Foods and Atyab operations under one Protein business unit to enhance Agthia’s strategy to diversify its offering. In Q1, we completed a diagnosis of the value creation opportunities arising from the consolidation of Atyab and Nabil Food and mapped out a plan for longterm value-enhancing integration of the two businesses. Going forward, both teams will focus on executing the plan and realizing synergies.

• BMB Group in UAE: Q1 2022 focus was on the first 100 days diagnosis which is near completion along with initiating low-hanging synergies. We have taken a cautious approach to integration, to ensure we maintain the entrepreneurial mindset that has been the cornerstone of the success of this business. We are now in the process of initiating a longterm value creation plan focused on co-new product development opportunities, go-to-market synergies and consolidation of production sites.

In summary, as we execute the M&A strategy with discipline, we pursue achieving a seamless transition, rapidly identifying commercial benefits and extracting cost synergies to reposition Agthia Group towards heightened growth and competitiveness.

Agthia Group PJSC

P.O.Box 37725, 17[th] Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.com

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On 7 April 2022, the Company held its Annual General Meeting where shareholders approved an 8.25fils dividend per share for the second half of 2021 in line with the semi-annual dividend policy. Total dividends distributed for the year amounted to AED 130.6 million (AED 118.8 million in 2020). The shareholders also approved the appointment of our first female board representative, Ms. Sharmila Jennifer Murat. We extend our gratitude and regards to Mr. Saifuddin Rupawala who resigned from the board to focus entirely on running LuLu Group International. Furthermore, to showcase our commitment to monitoring and reporting our environmental, social and governance performance, we successfully published the 2021 Sustainability Report, our second standalone report, which is available on the Company’s corporate website.

In the first quarter of 2022, Group net revenues registered 58% y-o-y growth crossing the AED 1 billion mark for the first quarter since inception. The Protein & Frozen segment contributed 28%, Snacking segment 24%, Water & Beverage and Other Food items segment 23%, and Agri segment 25% to Q1 2022 Group revenues.

Consumer business division (CBD) , under which the newly acquired entities are consolidated, recorded substantial growth of 83% versus last year. Recording AED 787 million in top-line, CBD now encompasses 75% of total group sales, in line with our strategy of diversifying our revenue streams towards higher growth consumer goods categories.

• Protein & Frozen (Nabil Foods, Atyab, Tomato Paste and Frozen Vegetables): Revenue came in at AED 294 million during Q1 2022, of which AED 253 million was collectively added by the consolidation of Nabil Foods and Atyab. Both businesses recorded higher sales growth versus the same period last year, supported by strong recovery in the Food Service channel for Nabil Foods and increased demand for cold cuts and chicken categories for Atyab. Overall segment margin enhanced as we included margin accretive businesses this year. Higher raw material and freight costs nevertheless weigh down individual profitability margins and this was particularly evident for Nabil Foods given the channel mix (food service vs. retail). EGP devaluation during the latter part of March 2022 adversely impacted the expected contribution from Atyab.

• Snacking (Al Foah Dates, BMB Group, Bakery in UAE and Al Faysal Bakery in Kuwait): Revenues came in at AED 255 million with the first quarter inclusion of BMB contributing AED 76 million and exclusion of frozen and ambient Bakery in UAE after a discontinuation decision for recurring losses. Both Al Foah and Al Faysal recorded higher y-o-y growth in top-line versus the same period last year as the former benefitted from a Ramadan shift in timing and the latter from the opening of schools. Overall profitability for the segment improved on continued cost optimization and synergies which more than offset higher raw and packaging material costs.

• Water & Other Food items (Water, Beverage, Dairy and Trading items):

• Water & Beverage revenues of AED 184 million recorded slightly lower sales versus last year (-4% y-o-y) driven by lower KSA water sales on competition and the strategic decision to discontinue the loss-making Beverage business (lost sales of AED 8 million) which more than offset the improved water performance across UAE, Kuwait, Oman and Turkey. In the local market, UAE water (Bottled Water + 5-gallon HOD) recorded higher sales during the period driven by rebound in volumes across retail and food services channels for bottled water and across corporates for 5-gallon HOD. In the retail channel, Agthia’s bottled water portfolio continues to preserve market leadership at a respective 28.6% and 28.5%

Agthia Group PJSC

P.O.Box 37725, 17[th] Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.com

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volume and value shares[1] despite the highly competitive environment. The impact of increased promotional index, higher PET resin prices and packaging material costs continues to linger on water segment profitability.

• Other Food items (Dairy and Trading Items): Other Food Items recorded sales of AED 54 million, up 7% relative to the same period last year on favourable mix management, strategic pricing activations and competitive promotions.

Agri-business division (ABD) revenues of AED 266 million were 13% higher versus last year. On profitability, global inflation in grain prices and freight costs put persistent pressure on margins which we continue to address through operational efficiencies and pricing adjustments.

Group net profit[2] in Q1 2022 prevailed at AED 82 million, growing by 66% y-o-y at a higher rate versus top-line. This is mainly driven by the consolidation of margin-accretive acquired entities and cost optimization initiatives from integration and productivity enhancements, both of which more than offset higher input and transportation costs.

Total group assets as of 31 March 2022 reached AED 6.6 billion. Total shareholders’ equity stood at AED 2.8 billion.

All in, I am pleased to present our first three months of 2022 as we demonstrated our ability to integrate the newly acquired companies while protecting our core business in the face of an amplified inflationary environment. We remain committed to driving value as we continue implementing our strategy despite challenging market conditions.

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Khalifa Sultan Al Suwaidi Chairman 09 May 2022

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1 AC Nielsen retail audit for bottled water excluding mineral water - MAT Feb 2022 submission

2 Attributable to shareholders

Agthia Group PJSC

P.O.Box 37725, 17[th] Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.com