P r e s e n t a t i o n Earnings

January 2018

2

Disclaimer

Information contained in this presentation is subject to change without prior notice. Its accuracy is not guaranteed and it may not

contain all material information related to the company. Neither SADAFCO nor its associates make any representation regarding,

and assume no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information

contained herein.

Nothing in this presentation shall form the basis of any contract or commitment whatsoever. This presentation is furnished to you

solely for your information. You may not redistribute it to any other person.

This presentation contains forward-looking statements that are made on the basis of current knowledge and assumptions. Various

factors could cause future results, performance or events to differ materially from those mentioned in the presentation.

3

Our Vision, Mission & Values

MISSION

Develop, produce and market a range of

nutritious food propositions for all age

groups and create maximum shareholder

value through teamwork

VISION

To be the Brand of Choice

4

Business Highlights

Cash Flow

Cash and Deposit Balances

9M’2017/18 : SAR472mn

9M’2016/17 : SAR432mn Above balance after

dividend payment of SAR195mn

Capital Expenditure

9M’2017/18 : SAR95mn

9M’2016/17 : SAR62mn

Sales 9M’2017/18 : SAR1,314mn

9M’2016/17 : SAR1,357mn

Net Profit 9M’2017/18 : SAR210mn

9M’2016/17 : SAR230mn

YoY

3.2%

• Announced the distribution of an interim dividend of SAR2/ share in Nov’17 • Construction of new Tabuk Depot completed

YoY

8.7%

Recent Developments

New Tabuk

Depot

5

Sales & Profitability

SAR mn Sales SAR mn Gross Profit

159 185 175 171 149

36% 41% 39% 39%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

100

110

120

130

140

150

160

170

180

190

Q3'16/17 Q4'16/17 Q1'17/18 Q2'17/18 Q3'17/18

As % of Net Sales

436 447 453 441 420

Q3'16/17 Q4'16/17 Q1'17/18 Q2'17/18 Q3'17/18

68 73 77

75 58

16% 16% 17% 17%

14%

3%

8%

13%

18%

23%

28%

0

10

20

30

40

50

60

70

80

90

Q3'16/17 Q4'16/17 Q1'17/18 Q2'17/18 Q3'17/18

As % of Net Sales

SAR mn Net Profit

6

1,547 1,642 1,644 1,713 1,712

Q3'16/17 FY'16/17 Q1'17/18 Q2'17/18 Q3'17/18

SAR mn Steady Asset Base… SAR mn …build by Internally generated funds

1,189

1,263 1,209

1,284 1,277

Q3'16/17 FY'16/17 Q1'17/18 Q2'17/18 Q3'17/18

Shareholders' Equity

Strong Balance Sheet

Note: *Working Capital calculated as Current Assets net of Current Liabilities. Current Assets: Accounts receivable + Inventories + Deposits, prepayments & other current assets Current Liabilities: Accounts payable + Due to related parties + Accrued zakat + Dividend payable + Accruals & other current liabilities **Rolling 12-months net sales

286 231 204 255 267

15% 13% 11%

14% 15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

50

100

150

200

250

300

Q3'16/17 FY'16/17 Q1'17/18 Q2'17/18 Q3'17/18

Working Capital As % of Net Sales**

SAR mn Working Capital*

7

Cash Flow Summary

Cash Flow Bridge for rolling 12-months as of 30 December, 2017 SAR mn

432 472

366

131

195

-50

50

150

250

350

450

550

650

750

Cash and Cash Equivalents(30 Dec 2016)

Net cash from operatingactivities

Purchase of Property, Plantand Equipment (PP&E)

Dividends Paid Cash and Cash Equivalents(30 Dec 2017)

Free Cash Flow = SAR 239mn

Distributed an Interim Dividend of SAR 2 per share in Dec’17 in addition to the Annual Dividend

Note: Does not depict other cash outflow of ~SAR3.5mn which includes Board of Director remuneration, non-controlling interest and effect of exchange rate fluctuations

8

Product Portfolio

UHT Milk– Whole,

Low Fat, Skimmed,

Gold Milk

Flavored Milk

Date Milk

UHT Milk

Feta Cheese

Processed Cheese –

Triangles

Cheese Products

Ice cream

French Fries

Butter

Frozen

Ketchup

Tomato paste

Tomato Products

Arabic Coffee

Laban

Jump

Crispy

Cream

Juices–Growing-up

EVAP

Majestique

Soy Drink

Others

Milk Powder – Instant

Milk Powder

9

Shareholding Structure

Shareholding (as of 15 January 2018)

• Qurain Petrochemicals Industries (QPIC) is the largest shareholder of

SADAFCO

• QPIC, incorporated in 2004, is a private sector holding company in the

energy, petrochemical, food and related sectors

• QPIC is an associate of KIPCO group, which is one of the biggest diversified

holding companies in the Middle East and North Africa. KIPCO Group has

assets of around USD 32 billion under management or control

• KIPCO and QPIC both are listed on the Kuwait Stock Exchange

40.1%

59.9%

Source: Tadawul Stock Exchange

Public & Others

10

Shareholders’ Returns

Note: #Annualized Return calculated as sum of share price appreciation/depreciation and dividends paid during the period ending 15 January 2018, assuming no reinvestment of dividends

Share Price Performance SAR mn

Consistent Dividends* SAR per share

0

2

4

6

8

10

20

60

100

140

180

220

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

De

c-1

5

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

De

c-1

6

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Tradin

g Vo

lum

e, Mn

Shares

SAR

SASE Index SADAFCO Volume (Mn)

Source: Bloomberg; SAR Saudi Riyal; SASE Index (Rebased to SAR 123.0 on 03 January 2015)

SAR 128.0

113.0 (SAR)

SAR 123.0

(15 Jan 2018)

Market Cap (SAR Mn): 4,160 52 Week

High

135.0 (SAR)

52 Week Low

Compounded Annual Return# of

6.0% over the last 3 years

3.5

4.0 4.0

14/15 15/16 16/17

Declared Dividend per share

Note: *Announced the distribution of an interim dividend of SAR2/ share in Nov’17

11

Going Forward…

“The results for the quarter and nine months continue to reflect

SADAFCO’S strategy to make profitable sales, and to protect both our

market share and strong financial position.

The deflationary trend in dairy and food prices triggered by irrational

discounting by the competition, continued further reductions in the

consumer base along with increase in energy & manpower costs, will put

additional pressure on future growth and margins.

However, despite the overall market conditions, we have managed to

deliver a robust net margin of ~16% for the nine months.

Given our strong financial position we are poised to handle these

challenges effectively”