Astra Industrial Group — Earnings Release 2015

Feb 25, 2016

Astra Industrial Group announces the annual financial results for the period ending on 31-12-2015

1212 · 25/02/2016 15:38:42 · Announcement #41411 · View on Saudi Exchange

Astra Industrial Group announces the annual financial results for the period ending on 31-12-2015

Element	Current year	Previous year	% Change
Net profit (loss)	6,712,843	109,331,339	-93.86
Earning or loss per share, Riyals	0.08	1.37	-
Gross profit (loss)	585,754,389	604,633,133	-3.12
Operational profit (loss)	2,686,752	59,896,410	-95.51

*All figures are in Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	Net profit decrease in general due to: A) Increase in other expenses mainly from currency exchange losses in the following sectors: i) Pharmaceuticals sector ii) Specialty Chemicals sector B) Decrease in operating income mainly due to increase in selling and marketing expenses in all sectors and additional provisions on account receivables C) Lower sales in the following sectors: i) Pharmaceuticals sector ii) Power and Steel sector While noting it has been partially offset by lower losses in Power and Steel sector
Reclassifications in annual financial results	Certain comparative figures for the previous period have been reclassified to be consistent with the presentation of the current period.
Other notes	Comparative Figures: Comparatives figures for the similar twelve months period of the last year are from Audited Financial Statements Year-end Results: In light of the economic downturn in many of the markets in which we operate, the company decided to take a conservative approach towards the realizable value of receivables and inventories. Based on this, additional provisions were made which had played additional role along with the previously mentioned factors on affecting the results. Earnings Per Share: During the period, the Extraordinary General Assembly, in its annual meeting held on 9 Rajab 1436H (corresponding to 28 April 2015), has resolved to increase the share capital by SR 58,823,530 from the retained earnings (by issuing five bonus shares for every 63 shares held). The legal formalities have been completed. Earnings per share has been calculated for this period and comparative period of last year based on number of shares 80,000,000 Tanmiah Steel Company: In light of the continued shutdown of Tanmiah steel (that is owned 51% by Astra Industrial Group) plant, the company carried out a fair value assessment. As a result, Tanmiah Board of Directors decided to write down the assets by SR164M. This write down was booked as charge to the income statement of Tanmiah company. This write down had no impact on Astra Industrial Group (AIG) consolidated results as it relates to the capitalized borrowing cost that AIG used to eliminate in the consolidation process. Subsequent to the company's assessment, independent auditors of Tanmiah and AIG carried out an impairment review of fair value of the company and concluded no impairment is required. Audited FY15 vs. Q4 FY15 Reviewed: Some line items of Income statement and Balance sheets have been reclassified for Audited FY15 vs. Q4 FY15 Reviewed based on the audit field work.

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