Food Processing Industry

Nov 2018 VALUE PROPOSITION:

SERVE A LARGE AND GROWING F&B MARKET

KSA’S COMPETITIVE ADVANTAGE

WELL DEVELOPED FOOD PROCESSING ECOSYSTEM

GOVERNMENT COMMITMENT TO GROW THE SECTOR 11

SERVE A LARGE AND 01 GROWING F&B MARKET KSA’S FOOD AND BEVERAGE MARKET IS EXPECTED TO WITNESS 6% ANNUAL GROWTH BETWEEN 2013 AND 2021

Bn USD

59 CAGR: Compound Annual Growth Rate 60 03 +6% 55 CAGR13-21 52 02 04 49 02 04 02 03 46 06 06 9.0% 6.1% 44 03 40 02 06 38 02 05 Animal and Dairy 40 36 02 03 05 02 03 05 VegetableOils 01 03 05 02 05 04 02 05 04 12 04 04 04 04 11 03 10 03 09 10 03 08 09 7.0% 5.5% 07 08 12 12 Seafood Beverages 10 11 20 09 09 10 08 08

16 17 12 13 13 14 15 10 11 6.3% 6.9% Fruits, Nuts and Meat andPoultry Vegetables 0 2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F 6.1% Confectionary, Animal and Vegetable Oils Fruits, Nuts and Vegetables Starch Product Seafood Confectionary, Starch Product and Coffee and Coffee Dairy Meat and Poultry Beverages

4 SAUDI ARABIA IS LOCATED AT THE HEART OF A THRIVING REGION

Crossroads of international trade roads between 3 continents

>10% of worldtrade passes through the Red Sea

Riyadh, Jeddah,Dammam are pivotal locations for distribution to key markets in the Middle East, Egypt and East Africa

5 11

KSA’S COMPETITIVE 02 ADVANTAGE Seafood: Current situation and opportunities for investment

Current situation

• Saudi Arabia's seafood consumption is expected to AL JOWF grow by 7.4% p.a. reaching 500,000 tons in 2030 1 TABOUK • Saudi Arabia's 1,800km coastline on the Red Sea HAEL offers plenty of opportunities for investors 2 • Clusters of fisheries with advanced infrastructure 3 AL QASIM 4 56 covering the full value chain (feed mills, 7 8 hatcheries, grow-outs and processing plants) 9 • KSA is strategically located to become a quality seafood exporter serving the GCC which is AL BAAHA expected to import 770,000 tons of fish by 2030 11 10 12 • KSA is an approved exporting country to the EU; 13 ASEER 14 farmed shrimp are exported to EU, Japan and the JAZAN 15 USA

Source: NIS Cluster Strategy for Food Processing, Team analysis 11

WELL-DEVELOPED FOOD 03 PROCESSING ECOSYSTEM FOOD PROCESSING IS WELL ESTABLISHED IN KSA DUE TO THREE MAIN FACTORS

'Ar'ar

Sakakah RELIABLE TRANSPORTATION INFRASTRUCTURE Tabuk Established roads, rail, seaports and airport networksconnectingall Saudi cities Ha'il Dammam Yanbu Medina Al Qassim

Mecca RIYADH ADVANCED COLD CHAIN Jeddah Eastern Segment grew at 4% CAGRfrom USD ~773M in 2010 to USD ~949M in 2015 Expected to further grow to USD ~1,640M by 2020

Abha International Najran Regional Jazan Domestic RICH POOL OF TALENT 27 AIRPORTS

~150k current employees in thesector Connecting Saudi Arabia with 81 airports in 45 countries Access to graduates from highly recognized Saudi universities Total capacity of ~1.5 million tons of cargoes >80M passengers hosted every year King Abdulaziz International Airport in Jeddahis the third largest airport in the Middle East by passenger traffic (~30Mn) Undergoing project for capacity expansion - From 55 to 100 million passengers potentially handledannually LOGISTICS AND TRANSPORTATION BY SEA AND LAND

10MAIN HARBORS >200,000 KM OFFROADS >1,700 KM OFF RAILS Largest marine network in the Middle East region 6 leading container ports 66,000 km of roadways connecting major cities and Cargo line: 556 km starting at King Abdul Aziz Port in >240 million tons of cargo handled in 2017 providing access to railways, ports and airports Dammam and ending in Riyadh King Abdullah Port at KAEC with 4 million TEU annual capacity – 5,000 km highways Branch lines: 486 km connecting industrial sites Fastest growing port in the world and deepest port in the Middle East – 6,000 km bridges and facilities Port throughput increased by 14% in first half of 2017 – 11,000 kmdouble-lane >1.3 M passengers travelling annually Planned capacity of 20 million TEU – 49,000 kmsingle-lane Approx 700,000 containers handled every year >140,000 km of dirt roads 12,000 km of roads connecting Saudi Arabia’s regions to international borders

ARABIANGULF Extensive land connections within Saudi Iraq Ras Al-Khair Port Arabia as wellas access to Gulf Jubail Commercial Port Cooperation Councilfree trade area 'Ar'ar King Fahad Jubail Industrial Port Jordan DhibaPort International boundary Sakakah King AbdulazizSeaport Al lawf Kuwait Express way (incl. futureexpansions) Tabuk Bahrein King Fahad Yanbu Industrial Port Main roads Ha'il Dammam RIYADH Buraidah Yanbu Commercial Port UAE GCC-FTA countries King Abdullah Port at KAEC Makkah Al MadinahAl Qassim Jeddah IslamicPort Eastern Non GCC-FTA countries JEDDAH RIYADH Makkah Eastern Oman REDSEA Al bahah Al bahah Inudstrial Port 'Asir JizanPort CommercialPort Abha 10 Najran Jazan Yemen TEU: Twenty-foot Equivalent Unit 11

GOVERNMENT COMMITMENT 04 TO GROW THE SECTOR KSA OFFERS A RANGE OF INCENTIVES FOR INVESTORS IN THE FOOD PROCESSING SECTOR

CLEAR ALLOCATION OF ROLES ALONG 01 02 03 THE INVESTMENT VALUE CHAIN LOWLAND LEASES SOFTLOANS TRADEAGREEMENTS SECTORDEVELOPER SECTORREGULATOR LICENSESISSUER ENABLER For establishment From dedicated World Trade of food processing development funds Organization(WTO) Ministry of Saudi Food and Drug Ministry of Saudi Agricultural factories (Saudi Industrial GCC free trade Environment,Water Authority (SFDA) Environment,Water Development Fund Development Fund, agreement and Agriculture and Agriculture Saudi Agricultural Greater Arab FreeTrade Development Fund) Area (GAFTA) Double taxation avoidance (DTA) Bilateral Investment treaties Ministry ofCommerce Saudi Standards, Ministry ofCommerce Saudi Industrial and Investment Metrology andQuality and Investment Development Fund Organization (SASO)

Ministry of Energy, GCCStandardization GeneralInvestment Saudi Industrial Industry andMineral Organization Authority PropertyAuthority Resources Thank you