ALDREES PETROLEUM & TRANSPORT SERVICE CO.

COMPANY PROFILE

31st Mar FY2019

THE COMPANYTHE VISION

To be one of the top multi-commodity, bulk transportation companies and a Full Logistics

Services Provider (LSP) in the Kingdom of Saudi Arabia.

To be the undisputed No. 1 petroleum retail brand name in Saudi Arabia in terms of size,

excellent service and technology – Aldrees Petrol station in every corner.

THE MISSION

To consistently meet the logistical needs of its customers by providing comprehensive

transport solutions with its wide array of fleet and full services portfolio in logistics.

To provide total convenience to all motorists by operating petrol stations all over Saudi Arabia

that will serve as one-stop haven to re-fuel, rest and relax (3 Rs).

To be a catalyst of the nation’s growth through equitable benefits for all stakeholders and

continue achieving sustainable growth and deliver consistent good return to shareholders.

شركة الدريس للخدمات البترولية والنقليات

One of the top multi-commodity transportation companies in Saudi Arabia

• 3679 fleet strength of various types of trucks and trailers as of March 31, 2019

(1275 tractor heads & 2404 of various tanker, dumper, and trailer types)

• ISO 9001 & OHSAS 18001-certifed operation. SQAS Audit Certification by CEFIC

• GPS-equipped fleet for special projects

• ERP-supported operations

WHAT WE ARE NOW

The biggest petroleum retail company in Saudi Arabia

• 448 Petrol Stations as of March 31, 2019

• ISO 9001 & OHSAS 18001-certified operation

• 1st RFID-equipped petrol pumps and automated dispensing system in Saudi Arabia!

• ERP-supported operations

ALDREES BERTSCHI LOGISTICS SERVICES CO. – Joint Venture with a global chemical logistics service provider BERTSCHI

• Full chemical logistics services: on-site & off-site

• Partnership with BERTSCHI: A Responsible Care Member

• Europe’s leader in Rail Logistics

• ISO Tank and Lined ISO Box Containers: Better than ISO Standard!

• Logistics support services, including tank cleaning, decanting, slitting, labeling, drumming, etc.

شركة الدريس للخدمات البترولية والنقليات

2404 Trailers

1275 Tractor Heads

5387 Employees

448

Gas Stations58

years

189K Ton per week1.3 BillionQ1 Y2019 Revenue

2017

2016

2015

2015

2005

2004

2002

1962

Year 2002Became aLIMITED LIABILITY

COMPANY

Year 2005Became a

SAUDI JOINT STOCK COMPANY

with a start-up Capitalization of SAR200 million

Year 2017

Market capitalization was

increased to

SAR500 million

Year 1962

Started as a Saudi Limited

Partnership under the name

MOHAMMED SAAD ALDREES &

SONS CO.

Year 2004Officially named

ALDREES PETROLEUM AND

TRANSPORT SERVICES

COMPANY

Year 2015

Market capitalization was increased to SAR400 million

Year 2016Aldrees colorChanged for Re-branding.

Year 2015

A venture with BERTSCHI was officialy registered

with the Chamber of Commerce and named as

ALDREES BERTSCHI LOGISTICS COMPANY

2019

Year 2019

Market capitalization was

increased to

SAR600 million

TRANSPORT SAFETY & QUALITY

ALDREES Financial Report ended 31 March 2019 ITLE

7

Presented by

Rasmy G. Awad

Financial Consultant

Historical Data

ALDREES was established as a family company in 1962.

The group has nine divisions; the two biggest divisions, the Petroleum and Transport became listed company in the year 2006, known today as ALDREES PETROLEUM AND TRANSPORT SERVICES COMPANY.

8

10

Number of Employees 3,185 3457 -272 -7.87% 2202 2160 42 1.94% 5387 5617 -230 -4.09%

Number of Stations 448 459 -11 -2.40% 0 0.00% 448 459 -11 -2.40%

Number of Trucks 0 0 0 0.00% 1275 1291 -16 -1.24% 1275 1291 -16 -1.24%

ELIMINATION

Amount Ratio Amount Ratio Amount % Amount Ratio Amount Ratio Amount % Amount ENTRIES Amount Ratio Amount Ratio Amount %

TOTAL SALES 1,226,324 100% 1,236,024 100% (9,700) -0.78% 91,995 100% 69,529 100% 22,466 32.31% 1,318,319 (20,378) 1,297,941 100% 1,285,176 100% 33,144 2.58%

NET SALES 1,226,324 100% 1,236,024 100% (9,700) -0.78% 91,995 100% 69,529 100% 22,466 32.31% 1,318,319 (20,378) 1,297,941 100% 1,285,176 100% 12,766 0.99%

TOTAL COST OF SALES 1,189,982 97.04% 1,186,016 95.95% 3,966 0.33% 60,695 65.98% 50,391 72.47% 10,304 20.45% 1,250,677 (20,378) 1,230,299 94.79% 1,216,028 94.62% 14,270 1.17%

371,018,509 ########

GROSS PROFIT/(LOSS) 36,342 2.96% 50,008 4.05% (13,667) -27.33% 31,301 34.02% 19,139 27.53% 12,162 63.55% 67,642 67,642 5.21% 69,147 5.38% (1,505) -2.18%

EXPENSES

SALES PROMOTION EXPENSES 880 0.07% 2,930 0.24% (2,050) -69.97% 369 0.40% 210 0.30% 160 75.99% 1,249 1,249 0.10% 3,140 0.24% (1,891) -60.21%

TOTAL GEN. & ADMIN. EXPENSES 15,723 1.28% 15,233 1.23% 490 3.22% 14,017 15.24% 10,341 14.87% 3,676 35.55% 29,740 29,740 2.29% 25,574 1.99% 4,166 16.29%

TOTAL S,G&A EXPENSES 16,603 1.35% 18,163 1.47% (1,560) -8.59% 14,386 15.64% 10,551 15.17% 3,836 36.35% 30,989 30,989 2.39% 28,714 2.23% 2,275 7.92%

OPERATING INCOME 19,739 1.61% 31,845 2.58% (12,106) -38.02% 16,914 18.39% 8,588 12.35% 8,326 96.95% 36,653 36,653 2.82% 40,433 3.15% (3,780) -9.35%

FINANCIAL CHARGES 13,665 1.11% 15,977 1.29% (2,312) -14.47% 3,114 3.38% 2,517 3.62% 597 23.70% 16,779 16,779 1.29% 18,494 1.44% (1,715) -9.28%

SHARE OF LOSS ON INVESTMENTS 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0 0.00% 0 0.00% 0 0.00%

OTHER INCOMES 7,717 0.63% (235) -0.02% 7,952 3383.3% 5,657 6.15% 840 1.21% 4,817 573.77% 13,374 13,374 1.03% 605 0.05% 12,769 2112.1%

NET PROFIT/(LOSS) BEFORE ZAKAT 13,790 1.12% 15,633 1.26% (1,843) -11.79% 19,458 21.15% 6,911 9.94% 12,547 -181.56% 33,248 33,248 2.56% 22,543 1.75% 10,704 47.48%

ZAKAT 1,680 0.14% 300 0.02% 1,380 460.00% 1,680 1.83% 150 0.22% 1,530 1020.00% 3,360 3,360 0.26% 450 0.04% 2,910 646.67%

NET PROFIT/(LOSS) 12,110 0.99% 15,333 1.24% (3,223) -21.02% 17,778 19.32% 6,761 9.72% 11,017 -162.96% 29,888 29,888 2.30% 22,093 1.72% 7,794 35.28%

Aldrees Petroleum and Transport Services Company

PROFIT & LOSS STATEMENT-SUMMARY

2019 versus 2018FOR Q1 ended 31 MARCH

Q1 2019 Q1 2018 VARIANCEQ1 2018 VARIANCE Q1 2019

ALDREES - CONSOLIDATED

(In Thousand Saudi Riyals)

Q1 2018 VARIANCE Q1 2019PARTICULARS

PETROLEUM DIVISION TRANSPORT DIVISIONQ1 2019

11

Number of Employees 3,185 3,157 28 0.89% 2202 2047 155 7.57% 5387 5204 183 3.52%

Number of Stations 448 445 3 0.67% 0 0.00% 448 445 3 0.67%

Number of Trucks 0 0 0 0.00% 1275 1283 -8 -0.62% 1275 1283 -8 -0.62%

ELIMINATION

Amount Ratio Amount Ratio Amount % Amount Ratio Amount Ratio Amount % Amount ENTRIES Amount Ratio Amount Ratio Amount %

TOTAL SALES 1,226,324 100% 1,247,456 100% (21,133) -1.69% 91,995 100% 85,152 100% 6,844 8.04% 1,318,319 (20,378) 1,297,941 100% 1,315,359 100% (17,418) -1.32%

NET SALES 1,226,324 100% 1,247,456 100% (21,133) -1.69% 91,995 100% 85,152 100% 6,844 8.04% 1,318,319 (20,378) 1,297,941 100% 1,315,359 100% (17,418) -1.32%

TOTAL COST OF SALE 1,189,982 97.04% 1,210,830 97.1% (20,848) -1.72% 60,695 65.98% 57,209 67.19% 3,485 6.09% 1,250,677 (20,378) 1,230,299 94.79% 1,250,791 95.09% (20,492) -1.64%

########### 73,585,578

GROSS PROFIT/(LOSS) 36,342 2.96% 36,626 2.94% (285) -0.78% 31,301 34.02% 27,942 32.81% 3,359 12.02% 67,642 67,642 5.21% 64,568 4.91% 3,074 4.76%

EXPENSES

SALES PROMOTION EXPENSES 880 0.07% 968 0.08% (88) -9.05% 369 0.40% 220 0.26% 149 67.76% 1,249 1,249 0.10% 1,188 0.09% 62 5.19%

TOTAL GEN. & ADMIN. EXPENSES 15,723 1.28% 13,518 1.08% 2,205 16.31% 14,017 15.24% 12,720 14.94% 1,297 10.19% 29,740 29,740 2.29% 26,238 1.99% 3,501 13.34%

TOTAL S,G&A EXPENSES 16,603 1.35% 14,486 1.16% 2,117 14.61% 14,386 15.64% 12,940 15.20% 1,446 11.17% 30,989 30,989 2.39% 27,426 2.09% 3,563 12.99%

OPERATING INCOME 19,739 1.61% 22,141 1.77% (2,402) -10.85% 16,914 18.39% 15,002 17.62% 1,913 12.75% 36,653 36,653 2.82% 37,142 2.82% (489) -1.32%

FINANCIAL CHARGES 13,665 1.11% 16,162 1.30% (2,497) -15.45% 3,114 3.38% 3,256 3.82% (143) -4.38% 16,779 16,779 1.29% 19,418 1.48% (2,639) -13.59%

SHARE OF INCOME(LOSS)-INVESTMENTS 0 0.00% 0 0.00% 0 0.00% 0 0.00% 2,550 2.99% (2,550) -100.0% 0 0 0.00% 2,550 0.19% (2,550) -100.0%

OTHER INCOMES 7,717 0.63% (125) -0.01% 7,842 6255% 5,657 6.15% 448 0.53% 5,208 1161.38% 13,374 13,374 1.03% 323 0.02% 13,051 4039.3%

NET PROFIT/(LOSS) BEFORE ZAKAT 13,790 1.12% 5,853 0.47% 7,937 135.61% 19,458 21.15% 14,744 17.32% 4,714 31.97% 33,248 33,248 2.56% 20,597 1.57% 12,651 61.42%

ZAKAT 1,680 0.14% 300 0.02% 1,380 460.00% 1,680 1.83% 776 0.91% 904 116.36% 3,360 3,360 0.26% 1,076 0.08% 2,284 212.13%

NET PROFIT/(LOSS) 12,110 0.99% 5,553 0.45% 6,557 118.09% 17,778 19.32% 13,968 16.40% 3,810 27.28% 29,888 29,888 2.30% 19,520 1.48% 10,367 53.11%

Aldrees Petroleum and Transport Services Company

PROFIT & LOSS STATEMENT-SUMMARY

Q1 2019 versus Q4 2018

Q1 2019 -versus- Q4 2018

PARTICULARSPETROLEUM DIVISION TRANSPORT DIVISION ALDREES - CONSOLIDATED

Q1 2019 Q4 2018 VARIANCEQ4 2018 VARIANCE Q1 2019 Q4 2018 Q1 2019 Q1 2019VARIANCE

(In Thousand Saudi Riyals)

12

Owned Rented Operated SAPTCO &

Others

T.2019 T.2018

16 373 38 21 448 459

PSD number of stations breakdown as of 31 March FY2019

13

NUMBER OF SERVICE STATIONS BY AREA

Central Province 247Eastern Province 83Western Province 85Southern Province 25Northern Province 8

TOTAL 448

Out of the (448) Service Stations,

there are (68) Service Stations

located in between highways.

14

DESCRIPTIONNO. OF

STATIONRATIO

RENTED STATIONS 373 83%

OWNED STATIONS 16 4%

OPERATING STATIONS 38 8%

SAPTCO STATIONS & OTHERS** 21 5%

TOTAL 448 100%

CONTRACTS MORE THAN 10 YEARS 174 47%

CONTRACTS LESS THAN 10 YEARS 199 53%

RENTED STATIONS ON AVERAGE

LEASING PERIOD10 YEARS

YEARLY AVERAGE RENTAL COST

PER STATION SR600,000

YEARLY AVERAGE RENTAL INCOME

PER STATIONSR420,000

SERVICE STATION OPERATIONS

AS OF 31 MARCH 2019

** (13) Stations – SAPTCO , (1) Station – Air Force, (4) Stations – Gen Security,(1) Station – Transport Division –

(1) Station – Gen Intelligence – (1) Station – Gen Investigation

Stations All Over KSA10,000 stations

1st Al-DREES (5%)

2nd Al-TASHELAT (3%)

3rd NAFT (2%)

3rd SASCO (2%)

4th INDIVIDUALS (88%)

Notes:There are estimated 10,000 Service Stations in KSA:---ALDREES has the most number of Service Stations (5%)

followed by Al Tashel’at at (3%), NAFT (2%) & SASCO (2%), and88% is privately owned (among small players).

15

Fuel sales & cost rates by Halalas/Liter (Without VAT)

The above selling rates are within the 50 kilometers range from ARAMCO, then, for every additional 50 kilometers from refinery the selling rates are increased by one halala/liter.

16

Purchase Sales Margin Purchase Sales Margin

Petrol 91 66 75 9 121 130 9

Petrol 95 81 90 9 185 194 9

Diesel 41.55 45 3.45 41.50 45 3.50

Fuel Type

Old / Previous Rates as of

29 Dec 2015

Revised Rates as of

01 Jan 2018

17

Credit Cash Total Credit Cash Total Credit Cash Total

Q1 448 85,739 231,848 317,587 7,681 37,165 44,846 81,799 606,878 688,677 733,523

TOTAL 448 85,739 231,848 317,587 7,681 37,165 44,846 81,799 606,878 688,677 733,523

17.47

1.19

18.00

Credit Cash Total Credit Cash Total Credit Cash Total

Q1 459 99,324 180,655 279,979 10,663 56,740 67,403 95,102 569,802 664,904 732,307

TOTAL 459 99,324 180,655 279,979 10,663 56,740 67,403 95,102 569,802 664,904 732,307

14.67

1.71

16.53

Credit Cash Total Credit Cash Total Credit Cash Total

DIFF (11) -13,585 51,193 37,608 -2,982 -19,575 -22,557 -13,303 37,076 23,773 1,216

% -2.40% -13.68% 28.34% 13.43% -27.97% -34.50% -33.47% -13.99% 6.51% 3.58% 0.17%

TOTAL SALES VOLUME VARIANCE - INCREASE(DECREASE)

PERIOD NO. OF

STATIONS

DIESEL (Liters) PETROL 95 (Liters) PETROL 91 (Liters) TOTAL SALES

-PETROL

Daily Average Sales Per Station for Diesel 212 St)

Daily Average Sales Per Station for petrol 95 439 St )

Daily Average Sales Per Station for petrol 91 (447) ST

PERIOD

Fy2018

NO. OF

STATIONS

DIESEL (Liters) PETROL 95 (Liters) PETROL 91 (Liters)TOTAL SALES-

PETROL

Daily Average Sales Per Station for Diesel 202 St)

Daily Average Sales Per Station for petrol 95 388 St )

Daily Average Sales Per Station for petrol 91 (425 ) ST

2018 Sales Quantity

SALES VOLUME - PETROL & DIESEL FY 2019- 2018 Qty ( .000) ( STATIONS )

2019 Sales Quantity

PERIOD

Fy 2019

NO. OF

STATIONS

DIESEL (Liters) PETROL 95 (Liters) PETROL 91 (Liters) TOTAL SALES

-PETROL

18

Credit Cash Total Credit Cash Total Credit Cash Total

Q1 448 126,692 231,848 358,540 8,035 37,165 45,200 98,433 606,878 705,311 750,511

TOTAL 448 126,692 231,848 358,540 8,035 37,165 45,200 98,433 606,878 705,311 750,511

Credit Cash Total Credit Cash Total Credit Cash Total

Q1 459 140,167 180,655 320,822 11,659 56,740 68,399 119,325 569,802 689,127 757,526

TOTAL 459 140,167 180,655 320,822 11,659 56,740 68,399 119,325 569,802 689,127 757,526

Credit Cash Total Credit Cash Total Credit Cash Total

DIFF (11) -13,475 51,193 37,718 -3,624 -19,575 -23,199 -20,892 37,076 16,184 -7,015

% -2.40% -9.61% 28.34% 11.76% -31.08% -34.50% -33.92% -17.51% 6.51% 2.35% -0.93%

TOTAL SALES VOLUME VARIANCE - INCREASE(DECREASE)

PERIOD NO. OF

STATIONS

DIESEL (Liters) PETROL 95 (Liters) PETROL 91 (Liters) TOTAL SALES-

PETROL

2018 Sales Quantity

PERIOD

Fy 2017

NO. OF

STATIONS

DIESEL (Liters) PETROL 95 (Liters) PETROL 91 (Liters)TOTAL SALES-

PETROL

SALES VOLUME - PETROL & DIESEL FY 2019 -2018 Qty ( .000) ( TOTAL SALES )

2019Sales Quantity

PERIOD

Fy 2018

NO. OF

STATIONS

DIESEL (Liters) PETROL 95 (Liters) PETROL 91 (Liters) TOTAL SALES

-PETROL

ALDREES PETROLEUM AND TRANSPORT SERVICES CO.TRANSPORT DIVISION

VARIANCE ANALYSIS REPORT - Q1 YTD 2019 VS 2018

(AMOUNT IN MILLIONS SAR)

(AMT IN SAR MILLIONS)AMOUNTASSIGNED AMOUNTASSIGNED AMT. ASSIGNED

(SAR) TRUCKS % (SAR) TRUCKS % (SAR) TRUCKS %

SALES REVENUE TOTAL 92.0 1,275 100.0% 69.5 1,291 100.0% 22.5 (16) 32.3%

A. FUEL OIL

PETROL SERV. DIV. - PSD 12.2 235 13.2% 12.6 235 18.1% (0.4) 0 -3.4%

MAADEN GROUP 0.0 0 0.0% 0.0 0 0.1% (0.0) 0 -100.0%

LOCAL Cash Fuel Delivery 0.9 18 1.0% 1.1 22 1.5% (0.1) (4) -13.2%

LOCAL Cash Fuel - Cost 3.5 3.8% 3.2 4.6% 0.3 0 8.1%

HFO - NRCC, MAADEN 2.0 46 2.2% 2.1 50 3.1% (0.1) (4) -5.2%

BASE OIL 1.7 32 1.9% 2.5 50 3.6% (0.8) (18) -30.9%

FUEL OIL TOTAL 20.3 331 22.1% 21.5 357 31.0% (1.2) (26) -5.8%

B. GRAINS AND OTHERS

BARLEY, CORN, SOYA 0.1 2 0.1% 0.0 0 0.0% 0.1 2 100.0%

SOYA & CORN SUBCON 0.0 0.0% 0.0 0.0% 0.0 0 0.0%

WHEAT - GRAIN SILO 0.0 2 0.0% 0.2 15 0.2% (0.2) (13) -100.0%

CEMENT SILOS - OTHERS 0.0 0 0.0% 0.1 25 0.1% (0.1) (25) -100.0%

GRAINS AND OTHERS TOTAL 0.1 4 0.1% 0.3 40 0.4% (0.2) (36.0) -60.3%

C. CHEMICALS

SABIC 6.0 118 6.5% 7.1 160 10.2% (1.1) (42) -15.6%

NON-SABIC 6.3 115 6.8% 6.6 130 9.4% (0.3) (15) -4.2%

MAADEN-MWSPC-MS/MGA-TRANSPORT 46.9 290 51.0% 22.2 290 31.9% 24.7 0 111.3%

MAADEN-MWSPC-MS/MGA-STANDBY 0.0 0.0% 0.0 0.0% 0.0 100.0%

CHEMICALS TOTAL 59.2 523 64.4% 35.9 580 51.6% 23.4 (57.0) 65.1%

D. UNITED SUGAR BULK 2.3 54 2.5% 3.2 48 4.6% (0.9) 6 -28.3%

TOTAL TRANSPORTATION OPERATIONS 81.9 912 89.0% 60.9 1,025 87.5% 21.1 (113) 34.6%SUPPLY CHAIN OPERATIONS

E. WAREHOUSING CONTRACTS 2.8 0 3.1% 2.5 0 3.5% 0.4 0 15.0%

F. OFF SITE CONTAINER SERVICES 6.1 145 6.6% 5.0 135 7.2% 1.1 10 22.5%

G. ONSITE FUEL OPERATIONS 1.0 21 1.0% 1.0 21 1.5% (0.1) 0 -5.6%

H. ISO TANK CONTAINER SERVICES 0.1 6 0.1% 0.2 6 0.3% (0.1) 0 -100.0%

TOTAL SUPPLY CHAIN OPERATIONS 10.0 172 10.9% 8.7 162 9.4% 1.4 10.0 15.7%

DOWN TIME AND OTHERS 0.0 191 0.0% 0.0 104 0.0% 0.0 87 100.0%

TOTAL SALES REVENUE 92.0 1,275 100.0% 69.5 1,291 97.0% 22.4 (16) 32.3%

TOTAL TRUCKS RELATED SALES 88.2 66.0

YTD 2019 YTD 2018 VARIANCE

MAN MITSUBISHI /

MODEL TGA19-400 ISUZU PER YEAR

2003 1 0 1

2004 49 0 49

2005 73 0 73

2006 57 46 103

2007 56 38 94

2008 69 41 191 301

2009 20 35 55

2011 1 98 99

2012 16 94 110

2013 2 239 241

2014 110 110

2015 25 25

2016 4 10 14

TOTAL 85 7 873 310 1,275

BRAND

%6.67% 0.55% 68.47% 24.31% 100%

TOTAL PER BRAND

MERCEDES VOLVO

TRANSPORT FLEET ANALYSIS AS OF 31 MAR 2019

YEARGRAND TOTAL

23

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