Almarai Co. — Capital/Financing Update 2014

Feb 4, 2014

Almarai Company announces the progress on its integrated poultry farming and production facilities

2280 · 04/02/2014 16:04:11 · Announcement #33194 · View on Saudi Exchange

Almarai Company announces the progress on its integrated poultry farming and production facilities

Further to Almarai announcement on Tadawul wbsite on 29/08/1434H (corresponding to 08/07/2013G), about its progress on its integrated poultry farming and production facilities., Almarai Company is pleased to announce the successful completion and start of operations of its third production line, the last of the three lines originally planned. The initial production runs have successfully passed all quality tests, allowing the gradual build up of the line for commercial commissioning.

This important milestone, marks the end in the process of the Almarai strategic investment to develop the construction of an integrated production facility and the required infrastructure in the Hail region, which began in April 12th 2010 and the scope of which was further increased by the Board of Directors of Almarai on June 21st 2011. The total amount of this investment will reached 4,355 million SAR

As mentioned in our earlier communications of our Poultry strategic initiative, the span of this project is large and complex and is composed of various elements from parent farms, hatcheries, broiler farms, feed mills to this new integrated production facilities and related infrastructure as well as distribution capabilities. All the other components of this strategic initiatives will continue as the gradual increase in volumes will take place.

With the completion of this major milestone, over the next 12 months a gradual increase in the designed capacity of the plant will take place. The full potential of the investment will be realized though additional volumes, up to a target of 200 million birds per annum at project completion, compared with a capacity of 25 million birds in the old poultry plant that was in place when Almarai acquired the HADCO company in 2009.

With this milestone Almarai will be in a stronger position to successfully complete its strategic initiative in the Poultry segment and gradually deliver stronger cash-flows during the next financial periods.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.