First Milling Co. — Capital/Financing Update 2023

Aug 1, 2023

First Milling Co. Announces the upgrade of two flour milling units A&B in its plant in Jeddah city.

2283 · 01/08/2023 08:14:49 · Announcement #75072 · View on Saudi Exchange

First Milling Co. Announces the upgrade of two flour milling units A&B in its plant in Jeddah city.

Element List	Explanation
Introduction	First Milling Company, is thrilled to announce that it has signed a new contract with Buhler AG, one of the leading manufacturers of milling equipment with its head office in Switzerland, to purchase two new flour mills and upgrade the existing capacity of mill A and B in its largest plant in Jeddah city.

The new project will allow First Mills to increase its production capacity and to continue providing the highest quality products to its customers. Mill A will be upgraded from current wheat milling capacity of 300 tons/day to 550 tons/day (+83.3%) and Mill B will be upgraded from current wheat milling capacity of 450 tons/day to 550 tons/day (+22.2%). Further, First Mills has obtained the approval from General Food Security Authority (GFSA) for capacity upgrade for both mills. Date of Board Resolution in Regard to the Project 2023-04-11 Corresponding to 1444-09-20 Project Start Date Q2 of the fiscal year ending 31 December 2024. Project Cost The total approximate cost of the project is 98 million Saudi Riyal Financing method for the project This project will be financed by Company's own resources. Expected completion date of the project Q4 of the fiscal year ending 31 December 2024 for Mill A

Q4 of the fiscal year ending 31 December 2025 for Mill B Expected Impact on the Company’s Financial Results Future efficiency improvement and growth will positively impact the financial results in the coming periods. Expected Date on Which the Impact on the Financial Results of the Company will Start Q4 of the fiscal year ending 31 December 2024 by commissioning Mill A. Expected Date for the Pilot Production of the Project to Begin Q4 of the fiscal year ending 31 December 2024 for Mill A.

Q4 of the fiscal year ending 31 December 2025 for Mill B. Duration of the pilot production of the project 1 month for each Mill. Expected date for the commercial production of the project Q4 of the fiscal year ending 31 December 2024 for Mill A

Q4 of the fiscal year ending 31 December 2025 for Mill B Executing Party/Counter Party in the Project/Contract Buhler AG Related Parties None. Additional Information The contract has been signed on 13/01/1445 corresponding to 31/07/2023.

Further material updates of the project and its progress will be announced when they occur.

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