Yamama Cement Company

Up To

31-12-2016

1. Background

2. Production facilities

3. Process of cement manufacturing

4. Quality control system

5. Occupational health, safety Environmental management

6. Yamama advantages

7. Market share

8. Financials summary

2

Contents

Background

• Established in 1961.

• The first cement company in the central region, the third in the KSA .

• Joint stock company .

• Capital of SR 2,025 billion.

• 202,5 million shares.

• Manufacturing facilities and head office are located in Riyadh.

• 900 employees.

3

Production Facilities

4

Production lines

PRODUCTION START UP

CLINKERCAPACITY

(Tons /Year)

CLINKERCAPACITY

(Tons /Day)KILN

196696,0003001

1972256,0008002

1978480,00015003

1978480,00015004

1982480,00015005

1985960,00030006

20073,200,000100007

5,952,00018600TOTAL

5

crusher raw mill kiln cement millmixing bed clinker storagecooler

Cement Manufacturing Processes

6

1. Type 1 - Ordinary Portland Cement (OPC)

2. Type 5 – Sulphate Resistant Cement (SRC)

3. Finishing Cement

Types Of CEMENT

7

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2,7002,836

4,274

4,698

5,188

5,5755,412 5,378

6,075 6,1275,873 5,836

Production clinker (2005– 2016) YAMAMA CEMENT

8

Yamama sticks to quality policy in all processes of cement production,Yamama obtained ISO 9001-2000

Yamama’s state-of-the-art compact laboratory automation system ensure that cementproduced is in line with international quality standards.

Quality Control System

9

Yamama obtained such certificates in these fields

Occupational health and safety & Environmental management

10

Fully integrated

Local Power Supply Station

Low energy cost

All lines built by Polysius CO. (Germany)

Yamama Advantages

11

Market Share

12

• KSA consumption is at 56 Million Ton for 2016

• Average growth for the past five years was (3%)

• Estimated Average growth for next five years is (0-2%)

• Yamama historical market share is around from (10% - 14% )

Market Outlook

13

0

10

20

30

40

50

60

70

2011 2012 2013 2014 2015 2016

50

55 55

62 62 63

43

48

5458 57 56

48

5356 57

61

56

8 6

15

22 23

28

Production capacity (klinker) Actual production (klinker) Sales (cement) Inventory (klinker)

Used from design

capacity

%88

Used from design

capacity

%98

Used from design

capacity

%86

Used from design

capacity

%93

Used from design

capacity

%92

Capacity utilization + Sales + Inventory (In Million)

( KSA)

Used from design

capacity

%89

14

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2011 2012 2013 2014 2015 2016

5,412 5,378

6,075 6,127 5,873 5,836

5,976

6,346 6,361

5,432

5,831

5,376

6,010

6,373 6,311

5,447 5,825

5,357

Kilnker Cement Sales

Production(Clinker & Cement) – Sales (In thousand)

YAMAMA CEMENT

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20162015

Total Sales 55,758 Ton (-9%)Total Sales 61,440 Ton

Market Share (2015–2016) (In thousand)

Yamama535710%

Saudia732313%

Eastern 26385%

Qassem40417%

Yanbu644012%Arabia

44538%

Southern744513%

Tabuk13402%

Riyadh35896%

Najran29005%

Madinah31366%

North18653%

Aljouf18843%

Alsafwa18573%

Haeil13922%

Um Alqura980%

Yamama58259%

Saudia770313%

Eastern 31195%

Qassem44057%

Yanbu700811%

Arabia53809%

Southern849014%

Tabuk13012%

Riyadh33726%

Najran44607%

Madinah26554%

North23704%

Aljouf17263%

Alsafwa18613%

Haeil17663%

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Total Production 55,621 Ton (-2%)Total Production 57,024 Ton

20162015

Production Clinker (2015–2016) (In thousand)

Yamama583610%

Saudia759314%

Eastern 29935%

Qassem34386%

Yanbu571110%Arabia

33686%

Southern769014%

Tabuk13122%

Riyadh32266%

Najran33546%

Madinah35256%

North22504%

Aljouf15753%

Alsafwa16683%

Haeil19744%

Um Alqura1080%

Yamama587310%

Saudia785614%

Eastern 34706%

Qassem37156%

Yanbu651011%

Arabia37477%

Southern721613%

Tabuk13082%

Riyadh32356%

Najran37226%

Madinah27945%

North26395%

Aljouf15813%

Alsafwa15463%

Haeil18133%

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Financial Summary FOR YAMAMA CEMENT

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Yamama New Project

19

Yamama New Project

Yamama cement has singed a contracts for the construction of the

New Project as follows (Total Estimated cost 4 Billion SR)

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Project Contractor SR(M)

2 production lines

(20,000 TPD)

Thyssenkrupp (TK) 2,800 (LSTK)

Power Plant Wartsila 480

Full supply Arabian Gas 280

Residential City. N/A Under process

Financing of Yamama New Project

Yamama cement singed tow partial funding with the

banks to the finance the new project as follow: -

1) With the Saudi Industrial Development Fund (SIDF) at 900 MSR. The

maximum corporate finance from (SIDF)

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Financing of Yamama New Project

2) With the (National Commercial Bank (NCB) & Samba financial Group

(SFG) at 1 Billion SR.

22

0

200

400

600

800

1,000

1,200

1,400

1,600

2008 2009 2010 2011 2012 2013 2014 2015 2016

11231163

1272

1442

1,576 1,542

1,329 1,311

1,125

611 562

657 740

818 870

671 615

366

SALES NET PROFIT

Sales and Net Profit (SR Million)

23

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2008 2009 2010 2011 2012 2013 2014 2015 2016

3,589 3,694 3,6533,821

4,0054,263

4,079 3,981 3,974

2,8413,055

3,1593,375

3,5993,893 3,732 3,681 3,726

Assets Equity

Asset and Shareholders Equity (SR Million)

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20162015201420132012201120102009

3,9743,9814,0794,2634,0053,8213,6533,694Total Assets

248300338339358256228217Other Liabilities

00103148190267422Debt

3,7263,6813,7313,8933,5993,3753,1593,055Equity

0%0%0%1%1%6%8%14%Debt to Equity ratio

1,1251,3111,3291,5421,5761,4421,2721,163Sales

366615671870818740657562Net profit

6928559081,1101,077965871785EBITDA

33%47%50%56%52%51%52%48%Net profit margin

202608608608608540540405Dividends

55%99%91%70%74%73%82%72%Dividends payout

9%15%16%20%20%19%18%15%Return on Assets

10%17%18%22%23%22%21%18%Return on Equity

1.823.043.314.304.045.484.874.16Earning per share

Financial Summary (SR Million)

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For a copy of this presentation can be access for the company's website

www.yamamacement.com

For ease of communication with investors we established e-mail to receive any questions.

IRO@yamamcement.com

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