Savola Group — Capital/Financing Update 2015

Mar 18, 2015

FURTHER ANNOUNCEMENT FROM THE SAVOLA GROUP REGARDING ITS FINANCIAL FORECAST FOR THE FISCAL YEAR ENDING 31ST DECEMBER, 2015

2050 · 18/03/2015 16:31:02 · Announcement #37688 · View on Saudi Exchange

FURTHER ANNOUNCEMENT FROM THE SAVOLA GROUP REGARDING ITS FINANCIAL FORECAST FOR THE FISCAL YEAR ENDING 31ST DECEMBER, 2015

Further to the Savola Group (Savola) announcement dated 18th January, 2015 regarding its forecast for the full year and 1st quarter of 2015, in which the company announced that it is expected to achieve a net income (before capital gain) of SAR 360 Million for the 1st quarter of 2015.

In line with Savola transparency with its shareholders and investors in the capital market, Savola would like to announce that Savola will not be able to achieve its forecast for the first quarter of 2015 and the shortfall is expected to be around 50% of announced forecast. The revised expected net income (before capital gain) for the 1st quarter 2015 is SAR 178 Million. The reasons for this shortfall are:

a) The sales for Retail sector during January and February 2015 were lower than forecasted. In February, Retail sector launched several initiatives which succeeded in making up for some of the lost sales of January. Many initiatives have already been launched to ensure recovery of the gap in profitability and full year's profitability targets are not expected to change for the Retail sector.

b) While Foods sector is behind plan at operational income and net income level, the deficit is further widened due to the impact of devaluation of the local currencies against the foreign currencies in some countries, where the Savola operates, in addition to some operational difficulties in our overseas operations, which negatively impacting Foods sector income from operations. Management has already started implementing various initiatives to mitigate the impact of currency devaluation on profitability.

In this respect, Eng. Abdullah M. Rehaimi, Managing Director and CEO stated that most of the events impacting Savola first quarter income are exceptional, and Savola will take necessary measures to achieve the full year operating income guidance as announced earlier in Tadawul.

Savola will update the market with any further development in this regard.

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.