Savola Group — Capital/Financing Update 2016

Nov 7, 2016

The Savola Group announces the Expected Financial Impact of the Floatation of the Egyptian Pound Exchange Rate Against Foreign Currencies

2050 · 07/11/2016 08:28:22 · Announcement #44514 · View on Saudi Exchange

The Savola Group announces the Expected Financial Impact of the Floatation of the Egyptian Pound Exchange Rate Against Foreign Currencies

Savola Group's (Savola) would like to announce that its operations in Egypt, managed by its subsidiary (Savola Foods Company), which is fully owned by Savola will be impacted negatively due to the floatation of Egyptian Pound.

These operations of Savola Foods in Egypt include edible oil and vegetable ghee, which is managed through Afia International (Egypt), Sugar businesses that are operated through United Sugar Company of Egypt and Alexandria Sugar Company, in addition to Pasta that is operated through Al-Maleka and Al-Farasha Companies (Egypt).

As a result of the official floatation of the Egyptian Pound exchange rate against foreign currencies, Savola Group announces that the expected financial impact of that said floatation will negatively affect the fourth quarter 2016 consolidated net profit of Savola by SAR 171 Million approximately, which was calculated based on the government floated rate range officially announced in this respect. It is worth mentioning that Savola has previously taken a number of measures, over the year, that have significantly decreased its exposure and the resulting 'hit' of Egyptian pound devaluation against foreign currencies, this efforts have been actively managed by the company, which enable it to avoid much bigger loss.

In that regard, Savola reassures its respected investors that it will take all necessary measures to minimize the impact on its operations in the future. In addition, it will continue to observe the situations closely for any developments on that matter.

May Allah guide us to success

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