Nomu Parallel market Goes live with seven companies

Saudi Arabia Saudi Arabia January 18, 2010 Key themes Nomu, the newly launched parallel equity market in the Kingdom went live with all the seven stocks ending limit up (+20%) on the first trading day. Nomu offers a new avenue for smaller companies to raise capital in a more cost effective way compared to the main market. Launch of Nomu also supports the Vision 2030 objectives which envisages SME contribution to increase to 35% of GDP from 20% currently. Nomu Parallel market Goes live with seven companies Research Department ARC Research Tel +966 11 211 9370, research@alrajhi-capital.com Nomu, the newly launched parallel equity market in the Kingdom went live with all the seven stocks ending limit up (+20%) on the first trading day. The parallel market is designed as an alternative platform for companies to go public with lower requirements compared to the main market. Lower market capitalization (minimum SAR 10mn) and less stringent listing requirements makes Nomu an attractive platform for small and medium sized enterprises. In our view, Nomu offers a new avenue for smaller companies to raise capital in a more cost effective way compared to the main market. Lower floatation requirement (20% vs. 30% in the main market) is likely to make Nomu attractive for family owned companies helping them in enhancing corporatization and visibility to attract talent. Launch of Nomu also supports the Vision 2030 objectives which envisages SME contribution to increase to 35% of GDP from 20% currently, and for developing capital markets further providing additional sources of funding for issuers to access capital. We also expect Nomu to support private equity investments in the SME sector with an additional exit route. Investment in the parallel market is restricted to Qualified Investors given higher risks associated with investments in smaller companies with lower disclosures. The Nomu listed companies also have an option to transition to the main market after meeting certain criteria. Figure 1 Nomu: Valuation snapshot of listed companies Company 2016 Ann* M cap (SAR mn) Free float (%) P/E (x) EV/EBITDA (x) P/B (x) RoE 1 Abu moati @ 240.0 20.0% 12.4 15.1 1.2 9.7% 2 Al Omran 168.0 20.0% 8.8 8.0 1.4 15.5% 3 Al Samaani 87.8 20.0% 11.3 9.2 5.1 45.4% 4 Arab Sea Information Systems 110.0 20.0% 17.8 15.2 0.6 3.3% 5 Baazeem 394.9 20.0% 12.4 11.0 2.2 18.0% 6 Development works for food 81.3 20.0% 13.2 11.5 6.0 45.4% 7 Raydan 720.0 30.0% 14.8 10.7 1.3 19.9% Source: Company prospectus, Al Rajhi Capital; Note: * Valuation metrics based on IPO price and 2016 annualized figures; @ Financial year ending March, all figures for financial year ending March 2016 Figure 2 Market cap split of listed Nomu companies Figure 3 Free float market cap split of listed Nomu companies Raydan 40% Abu moati 13% Al Omran 9% Al Samaani 5% Raydan 50% Abu moati 11% Al Omran 8% Al Samaani 4% Development works for food 5% Baazeem 22% Source: Company prospectus, Al Rajhi Capital; Note: Based on IPO price Arab Sea Information Systems 6% Development works for food 4% Arab Sea Information Systems 5% Baazeem 18% Source: Company prospectus, Al Rajhi Capital; Note: Based on IPO price; free float is post dilution Please see penultimate page for additional important disclosures. Al Rajhi Capital (Al Rajhi) is a foreign broker-dealer unregistered in the USA. Al Rajhi research is prepared by research analysts who are not registered in the USA. Al Rajhi research is distributed in the USA pursuant to Rule 15a-6 of the Securities Exchange Act of 1934 solely by Rosenblatt Securities, an SEC registered and FINRA-member broker-dealer.

Figure 4 Overview of companies listed on Nomu Company Sales (SAR mn) # Net margin # Sales CAGR* Net Profit CAGR* 1 Abu moati @ 440 4.4% 0.4% -5.4% Specializes in school and office stationary and supplies, invests in real estate 2 Al Omran 153 12.5% 20.6% 27.3% 3 Al Samaani 45 17.4% 11.7% 48.0% 4 Arab Sea Information Systems 49 12.6% -2.9% -15.2% 5 Baazeem 333 9.5% 3.5% -0.4% Details Manufacturing of home appliances (including wholesale/ retail trading) and paper & plastic products Provides storage systems solutions (via manufacturing/ importing). Only company to issue new shares (promoters/ existing shareholders did not tender their shares in IPO) Services include computer systems, internet services, CCTV systems, connectivity and monitoring systems Distributor of consumer products through owning a reputable global and local brands 6 Development works for food 40 15.5% 46.4% NA Specializes in setting up and managing different restaurants and cafes 7 Raydan 315 15.5% 14.7% 19.6% Owns and operates banquet restaurants which specialize in Saudi traditional food (incl. patisserie and sweet factory) Source: Company prospectus, Al Rajhi Capital; Note: * from 2013-2016 and annualized figures for 2016; # 2016 annualized figures @ Financial year ending March, all figures for financial year ending March 2016 Figure 5 Overview Nomu Key Features Nomu - Parallel market Admission Document Offering Process Transition to Main Market Financial Disclosure Criteria Modified, less stringent application Material Changes Disclosure Similar to the Main Market Source: Tadawul Simpler offering process, similar to a private placement The company must: 1. Be listed on Nomu - Parallel Market for at least 2 years 2. Meet the Main Market requirements Disclosure of quarterly financial statements within 45 calendar days from the end of the period and year-end financial statements within 90 calendar days from the end of the period Figure 6 Criteria for offering & listing processes Admission requirements The issuer must be a Saudi joint stock company or a joint stock company which the majority of its capital is owned by citizens of a member state of the Cooperation Council for the Arab States of the Gulf and enjoys a nationality of one of them Minimum market cap of SAR 10 million. At least 20% of shares owned by the qualified public, with no single investor owning more than 5%. Min 1 year of operational and financial performance. Financial advisor mandatory, legal advisor optional. Annual audited financial statements. Quarterly reviewed financial statements. Disclosure of material information. No profitability track record required. Lock Up Period: 100% of pre-offering investor shares for one year. If the expected aggregate market value for all shares to be listed exceeds SAR 40 million, at least 50 public shareholders are required. If the expected aggregate market value for all shares to be listed is less than SAR 40 million, at least 35 public shareholders are required. Source: Tadawul Disclosures Please refer to the important disclosures at the back of this report. 2

Figure 7 Key differences between Main market and Nomu - parallel market Main market Nomu - parallel market Minimum Market Cap SAR 100 million SAR 10 million % Offered At least 30% At least 20% Public Shareholders At least 200 If the expected aggregate market value for all shares to be listed exceeds SAR 40 million, at least 50 public shareholders are required. If the expected aggregate market value for all shares to be listed is less than SAR 40 million, at least 35 public shareholders are required. Continuous Obligations Standard disclosure requirements. Disclosure of quarterly financial statements within 30 calendar days from the end of the period and year-end financial statements within 90 calendar days from the end of the period Lighter financial disclosure requirements (with regards to time permissible to disclose) Disclosure of quarterly financial statements within 45 calendar days from the end of the period and year-end financial statements within 90 calendar days from the end of the period Daily Fluctuation Limits ±10% ±20% Source: Tadawul Figure 8 Who can invest in Nomu - parallel market? Investors qualified to invest in Nomu 1. Authorized Persons act for their own account. 2. Clients of a person authorized by the Authority to conduct managing activities provided that this Authorized Person has been appointed as an investment manager on terms which enable it to make decisions concerning the acceptance of an offer and investment in Nomu - Parallel Market on the client s behalf without obtaining prior approval from the client. 3. The Government of the Kingdom, any government body, any supranational authority recognized by the Authority or the Exchange, and any other stock exchange recognized by the Authority or the Securities Depository Center. 4. Government-owned companies either directly or through a portfolio managed by a person authorized to carry out managing activities. 5. Companies and funds established in a member state of the Cooperation Council for the Arab States of the Gulf. 6. Investment Funds. 7. Qualified Foreign Investors. 8. Any other legal persons allowed to open an investment account in the Kingdom and an account at the Depositary Center. 9. Natural persons allowed to open an investment account in the Kingdom and an account at the Depositary Center, and fulfill any of the following criteria: a. has conducted transactions in security markets of not less than 40 million Saudi riyals in total, and not less than ten transactions in each quarter during the last twelve months. b. the average size of his securities portfolio shall exceed 10 million Saudi riyals during the last twelve months. c. holds the General Securities Qualification Certificate which is recognized by the Authority. 10. Any other persons prescribed by the Authority. Source: Tadawul Disclosures Please refer to the important disclosures at the back of this report. 3

Nomu listed companies overview Abo Moati The company specializes in school and office stationary and supplies through its stores around Saudi Arabia, in addition to real estate investments. Abo Moati owns 11 bookstores around the kingdom, 2 stores for precision supplies, and 3 stores for Wave trading co (wholesale inks and printers). Investing in Real estate is one of the strategic activities of the company, and the book value of the company s properties exceed SAR111 million. The company is planning to open new branches in the kingdom and start retailing accessories. Figure 9 Abo Moati: Financial summary Issue Price (SAR) 15.0 in SAR '000 Mar-14 Mar-15 Mar-16 Sept-16 (6M) No. of Shares before IPO (mn) 16.0 Revenue 517,584 508,202 440,162 167,213 Offered shares (%) 20.0 growth (%) 19.2% -1.8% -13.4% Offered Shares 3.2 Gross Profit 58,954 57,107 50,238 17,961 No. of shares post IPO (mn) 16.0 margin (%) 11.4% 11.2% 11.4% 10.7% Market cap (SAR mn) 240.0 Operating profit 31,699 32,287 24,295 6,439 Free Float Market Cap (SAR mn) 48.0 margin (%) 6.1% 6.4% 5.5% 3.9% EBITDA 33,328 34,123 25,829 7,759 Key Shareholders post offering (above 10%) margin (%) 6.4% 6.7% 5.9% 4.6% Saeed Omar Basaeed 19.30% Net profit 26,232 27,545 19,429 5,140 Saad Abdullah Abo Moati 17.77% margin (%) 5.1% 5.4% 4.4% 3.1% Abdullah Saad Abo Moati 14.64% Key Metrics in SAR '000 Mar-14 Mar-15 Mar-16 Sept-16 (6M) Mar-14 Mar-15 Mar-16 Sept-16 (6M) Cash/equivalents 13,479 14,718 11,621 27,492 Per Share Ratios Current Assets 230,650 245,075 226,382 222,097 EPS (SAR) 1.64 1.72 1.21 0.32 Property, Plant & Equipment 105,746 117,350 119,393 118,678 DPS (SAR) 0.00 0.91 0.50 0.00 Other Non-current Assets 24,695 26,141 24,368.38 24,393.20 Return Ratios Total 374,571 403,283 381,764 392,660 RoE* 14.7% 14.4% 9.7% 5.0% Current liabilities 156,729 184,183 161,299 173,764 RoIC* 8.8% 8.4% 6.2% 3.2% Non-current liabilities 39,014 27,884 20,792 14,143 RoA* 7.0% 6.8% 5.1% 2.6% Shareholders' Equity 178,827 191,216 199,672 204,754 Valuation Ratios Total 374,571 403,283 381,764 392,660 P/E* 9.15 8.71 12.35 23.35 Total Debt 169,766 179,287 166,229 157,542 EV/EBITDA* 11.75 11.67 15.10 23.55 Net Debt 156,287 164,569 154,608 130,050 P/B 1.34 1.26 1.20 1.17 Dividend yield* 0.0% 6.1% 3.3% 0.0% Cash Flow statement Div Payout Ratio 0.0% 53.0% 41.2% 0.0% in SAR '000 Mar-14 Mar-15 Mar-16 Sept-16 (6M) Leverage Ratios Net Cash from Operations (22,543) 20,771 22,612 25,259 Debt/ Equity 0.95 0.94 0.83 0.77 Net Cash from Investing (54,444) (14,453) (3,653) (640) Net debt/ EBITDA* 4.69 4.82 5.99 8.38 Net Cash from Financing 77,471 (5,080) (22,055) (8,748) Net Debt/Equity 0.87 0.86 0.77 0.64 Net change in Cash 484 1,238 (3,096) 15,871 Disclosures Please refer to the important disclosures at the back of this report. 4

Al Omran Al-Omran company was established in 2003 with a capital of SAR 6mn. The main activities of the company include: Manufacturing of home appliances and paper & plastic products, and wholesale/ retail trading in home appliances. The company has presence in real-estate sector. Activities include buying lands & managing real estate. Finally, the company operates in exporting & importing home appliances and electronic products. Figure 10 Al Omran: Financial summary Issue Price (SAR) 28.0 in SAR 000' 2013 2014 2015 2016 9M No. of Shares before IPO (mn) 6.0 Revenue 87,049 94,678 116,947 114,641 Offered shares (%) 20.0 growth (%) 8.8% 23.5% Offered Shares (mn) 1.2 Gross Profit 21,456 20,570 22,078 25,951 No. of shares post IPO (mn) 6.0 margin (%) 24.6% 21.7% 18.9% 22.6% Market cap (SAR mn) 168.0 Operating profit 10,591 8,692 9,066 15,543 Free Float Market Cap (SAR mn) 33.6 margin (%) 12.2% 9.2% 7.8% 13.6% EBITDA 12,862 10,823 11,452 17,516 Key Shareholders post offering (above 10%) margin (%) 14.8% 11.4% 9.8% 15.3% Mohammed omran Alomran 40.0% Net profit 9,242 7,409 7,780 14,307 Mohammed naser Alomran 31.9% margin (%) 10.6% 7.8% 6.7% 12.5% Key Metrics in SAR 000' 2013 2014 2015 2016 9M 2013 2014 2015 2016 9M Cash/equivalents 2,962 3,587 4,447 1,811 Per Share Ratios Current Assets 67,699 82,590 80,453 101,275 EPS (SAR) 1.54 1.23 1.30 2.38 Property, Plant & Equipment 57,664 57,949 57,256 56,640 DPS (SAR) 0.00 0.00 1.00 2.00 Other Non-current Assets 3034 4591 6023 5,179 Return Ratios Total 128,397 145,130 143,732 163,094 RoE* 8.2% 6.2% 6.4% 15.5% Current liabilities 10,115 21,462 19,894 34,739 RoIC* 8.3% 5.7% 6.0% 13.6% Non-current liabilities 5,089 3,441 2,264 5,145 RoA* 7.2% 5.1% 5.4% 11.7% Shareholders' Equity 113,193 120,227 121,574 123,210 Valuation Ratios Total 128,397 145,130 143,732 163,094 P/E* 18.18 22.68 21.59 8.81 Total Debt 2,852 12,817 11,042 21,044 EV/EBITDA* 14.56 17.30 16.35 8.02 Net Debt (110) 9,230 6,595 19,233 P/B 1.48 1.40 1.38 1.36 Dividend yield* 0.0% 0.0% 3.6% 9.5% Cash Flow statement Div Payout Ratio 0.0% 0.0% 77.1% 83.9% in SAR 000' 2013 2014 2015 2016 9M Leverage Ratios Net Cash from Operations 3,287 (3,529) 12,794 (3,057) Debt/ Equity 0.03 0.11 0.09 0.17 Net Cash from Investing (121) (2,358) (1,607) (1,358) Net debt/ EBITDA* (0.01) 0.85 0.58 0.82 Net Cash from Financing (1,616) 6,513 (10,326) 1,781 Net Debt/ Equity (0.00) 0.08 0.05 0.16 Net change in Cash 1,550 626 861 (2,634) Disclosures Please refer to the important disclosures at the back of this report. 5

Al Samaani Al Samaani started operations in 1994 with a capital of SAR 100,000 which now reached SAR 9,000,000.The head office located in Buraydah. Main activities: The main activity of the company is to provide new solutions for different storage systems. The company manufactures and imports all types of Shelves and Storage platforms. Also, the company expanded operations to manufacture special products to provide customized storage systems to clients. In 2017, the company plans to add a new production line costing around SAR 9mn. Figure 11 Al Samaani: Financial summary Issue Price (SAR) 78.0 in SAR 000' 2013 2014 2015 2016 9M No. of Shares before IPO (mn) 0.9 Revenue 32,106 45,721 48,256 33,519 Offered shares (%) 20.0 growth (%) 42.4% 5.5% Offered Shares (mn) 0.2 Gross Profit 7,275 9,100 15,385 12,547 No. of shares post IPO (mn) 1.1 margin (%) 22.7% 19.9% 31.9% 37.4% Market cap (SAR mn) 87.8 Operating profit 2,411 3,029 5,469 6,035 Free Float Market Cap (SAR mn) 17.6 margin (%) 7.5% 6.6% 11.3% 18.0% EBITDA 3,698 4,422 6,917 7,044 Key Shareholders post offering (above 10%) margin (%) 11.5% 9.7% 14.3% 21.0% Bandar Alsamaani 28.8% Net profit 2,399 2,928 4,808 5,834 Mohammed Alsamaani 15.2% margin (%) 7.5% 6.4% 10.0% 17.4% Abdullah Alsamaani 12.8% Key Metrics in SAR 000' 2013 2014 2015 2016 9M 2013 2014 2015 2016 9M Cash/equivalents 1,009 3,996 1,747 2,006 Per Share Ratios Current Assets 12,792 21,623 21,544 20,137 EPS (SAR) 2.13 2.60 4.27 5.19 Property, Plant & Equipment 6,759 8,250 5,628 5,333 DPS (SAR) 0.00 0.00 1.37 0.00 Other Non-current Assets Return Ratios Total 19,551 29,873 27,172 25,470 RoE* 31.5% 26.0% 41.7% 45.4% Current liabilities 9,973 17,169 14,615 8,114 RoIC* 29.5% 35.5% 50.8% 51.8% Non-current liabilities 1,954 1,457 1,039 215 RoA* 12.3% 9.8% 17.7% 30.5% Shareholders' Equity 7,624 11,247 11,518 17,141 Valuation Ratios Total 19,551 29,873 27,172 25,470 P/E* 36.58 29.97 18.25 11.28 Total Debt 1,216 912 608 304 EV/EBITDA* 23.27 19.46 12.44 9.16 Net Debt 207 (3,084) (1,139) (1,702) P/B 11.51 7.80 7.62 5.12 Dividend yield* 0.0% 0.0% 1.8% 0.0% Cash Flow statement Div Payout Ratio 0.0% 0.0% 32.1% 0.0% in SAR 000' 2013 2014 2015 2016 9M Leverage Ratios Net Cash from Operations 667 (2,379) 3,650 9,685 Debt/ Equity 0.16 0.08 0.05 0.02 Net Cash from Investing (2,464) (2,905) 1,080 (715) Net debt/ EBITDA* 0.06 (0.70) (0.16) (0.18) Net Cash from Financing 1,216 8,271 (6,979) (8,786) Net Debt/Equity 0.03 (0.27) (0.10) (0.10) Net change in Cash (581) 2,987 (2,249) 184 Disclosures Please refer to the important disclosures at the back of this report. 6

Arab Sea Information Systems Arab Sea Information Systems was established in 2001 with a capital of SAR 50mn and now it doubled to SAR 100mn. The headquarters are located in Riyadh. The company provides a large number of services such as computer systems and internet services, CCTV systems, connectivity between military communication systems, monitoring and remote control systems, and others. The company provides services in both local and global markets (such as Spain, China, and Brazil). Figure 12 Arab sea: Financial summary Issue Price (SAR) 11.0 in SAR 000' 2013 2014 2015 2016 9M No. of Shares before IPO (mn) 10.0 Revenue 53,683 59,333 60,050 36,805 Offered shares (%) 20.0 growth (%) 10.5% 1.2% Offered Shares (mn) 2.0 Gross Profit 22,359 26,903 25,086 14,140 No. of shares post IPO (mn) 10.0 margin (%) 41.7% 45.3% 41.8% 38.4% Market cap (SAR mn) 110.0 Operating profit 11,444 11,326 6,790 5,043 Free Float Market Cap (SAR mn) 22.0 margin (%) 21.3% 19.1% 11.3% 13.7% EBITDA 12,092 12,117 7,541 5,579 Key Shareholders post offering (above 10%) margin (%) 22.5% 20.4% 12.6% 15.2% Mohammed Al-Suhaibani 37.8% Net profit 10,148 17,361 5,918 4,644 Beige company 21.3% margin (%) 18.9% 29.3% 9.9% 12.6% Key Metrics in SAR 000' 2013 2014 2015 2016 9M 2013 2014 2015 2016 9M Cash/equivalents 559 540 1,107 114 Per Share Ratios Current Assets 65,242 60,053 70,468 50,080 EPS (SAR) 1.01 1.74 0.59 0.46 Property, Plant & Equipment 106,766 121,737 1,283 1,812 DPS (SAR) 0.00 0.00 0.00 0.00 Other Non-current Assets 113847 147,580 Return Ratios* Total 172,008 181,790 185,598 199,472 RoE 6.3% 9.8% 3.3% 3.3% Current liabilities 9,536 3,385 3,962 10,028 RoIC 6.0% 5.5% 3.0% 2.8% Non-current liabilities 1,064 1,433 1,518 1,911 RoA 5.9% 9.6% 3.2% 3.1% Shareholders' Equity 161,408 176,972 180,118 187,533 Valuation Ratios Total 172,008 181,790 185,598 199,472 P/E* 10.84 6.34 18.59 17.76 Total Debt - - - - EV/EBITDA* 9.09 9.07 14.57 14.77 Net Debt (559) (540) (1,107) (114) P/B 0.68 0.62 0.61 0.59 Dividend yield* 0.0% 0.0% 0.0% 0.0% Cash Flow statement Div Payout Ratio 0.0% 0.0% 0.0% 0.0% in SAR 000' 2013 2014 2015 2016 9M Leverage Ratios Net Cash from Operations 17,350 22,933 23,361 20,306 Debt/ Equity 0.00 0.00 0.00 0.00 Net Cash from Investing (17,313) (23,102) (23,258) (20,804) Net debt/ EBITDA* (0.05) (0.04) (0.15) (0.02) Net Cash from Financing - 150 (30) (498) Net Debt/Equity (0.00) (0.00) (0.01) (0.00) Net change in Cash 37 (19) 73 (996) Disclosures Please refer to the important disclosures at the back of this report. 7

Baazeem The company is a distributor of consumer products through owning a reputable global and local brands such as Maog cleaning supplies, Rio Mare Tuna and Merito press spray. Rio Mare and Maog trademarks contributed the largest share in 2015 comprising 32.2% and 23.6% of total sales respectively. The company is targeting revenue of SAR 550mn by 2020, and net profit margin of 10% in addition to continuing the expansion plan to GCC countries, as well as the rest of Arab and African markets. In 2013 and 2014, the company distributed cash dividends of SAR13.16mn, and SAR12.07mn in 2015 (SAR1.19/share). Figure 13 Baazeem: Financial summary Issue Price (SAR) 39.0 in SAR 000 2013 2014 2015 9M2016 No. of Shares before IPO (mn) 10.1 Revenue 300,327 316,509 344,392 249,805 Offered shares (%) 30.0 growth (%) 5.4% 8.8% Offered Shares(mn) 3.0 Gross Profit 120,428 128,314 146,580 106,404 No. of shares post IPO(mn) 10.1 margin (%) 40.1% 40.5% 42.6% 42.6% Market cap (SAR MN) 394.9 Operating profit 37,396 38,123 41,000 26,510 Free Float Market Cap (SAR MN) 118.5 margin (%) 12.5% 12.0% 11.9% 10.6% EBITDA 38,563 39,564 42,259 27,515 Key Shareholders post offering (above 10%) margin (%) 12.8% 12.5% 12.3% 11.0% Salem Saleh Baazeem 39.5% Net profit 32,172 32,913 36,907 23,820 margin (%) 10.7% 10.4% 10.7% 9.5% Key Metrics in SAR 000 2013 2014 2015 9M2016 2013 2014 2015 9M2016 Cash/equivalents 19,133 8,939 1,228 10,430 Per Share Ratios Current Assets 159,590 171,139 192,092 227,744 EPS (SAR) 3.18 3.25 3.65 2.35 Property, Plant & Equipment 9,366 8,998 9,513 9,056 DPS (SAR) 1.30 1.30 1.19 0.00 Other Non-current Assets 62109.3 60637.686 60007.6 60,558 Return Ratios Total 231,065 240,775 261,613 297,358 RoE* 21.2% 20.5% 21.2% 18.0% Current liabilities 75,220 75,525 82,956 115,912 RoIC* 19.5% 16.8% 16.0% 13.3% Non-current liabilities 3,870 4,673 4,863 5,325 RoA* 13.9% 13.7% 14.1% 10.7% Shareholders' Equity 151,975 160,578 173,793 176,120 Valuation Ratios Total 231,065 240,775 261,613 297,358 P/E* 12.27 12.00 10.70 12.43 Total Debt 48,181 60,140 66,262 77,677 EV/EBITDA* 9.44 9.80 9.53 11.04 Net Debt 29,048 51,201 65,034 67,247 P/B 2.60 2.46 2.27 2.24 Dividend yield* 3.3% 3.3% 3.1% 0.0% Cash Flow statement Div Payout Ratio 40.9% 40.0% 32.7% 0.0% in SAR 000 2013 2014 2015 9M2016 Leverage Ratios Net Cash from Operations 13,855 (15,179) 6,734 (22,445) Debt/ Equity 0.32 0.37 0.38 0.44 Net Cash from Investing (5,992) (15) 112 (1,098) Net debt/ EBITDA* 0.75 1.29 1.54 1.83 Net Cash from Financing (5,900) 5,000 (3,558) 21,750 Net Debt/Equity 0.19 0.32 0.37 0.38 Net change in Cash 1,963 (10,194) 3,288 (1,793) Disclosures Please refer to the important disclosures at the back of this report. 8

Development works for food Established in 2010, the company specializes in setting up and managing different restaurants and cafes. Restaurants segment is characterized by diversity, where the company has three different brand names. Mahbob restaurant specializes in shawarma (8 branches ), Juice time for fresh juices (10 branches), and 8 branches for Bait Katakit which specializes in fried chicken (Broasted). The company has not distributed dividends in 2013-2016 as the company was focused on its expansion strategy. The company is targeting 110 branches over the next 5 years (from 26 branches currently). Figure 14 Development Works for Food: Financial summary Issue Price (SAR) 65.0 in SAR 000 2013 2014 2015 9M2016 No. of Shares before IPO (mn) 1.3 Revenue 12,647 29,669 34,663 29,735 Offered shares (%) 30.0 growth (%) 134.6% 16.8% Offered Shares 0.3 Gross Profit 4,899 11,612 16,337 14,779 No. of shares post IPO (mn) 1.3 margin (%) 38.7% 39.1% 47.1% 49.7% Market cap (SAR mn) 81.3 Operating profit (3,480) 759 5,650 4,498 Free Float Market Cap (SAR mn) 16.3 margin (%) -27.5% 2.6% 16.3% 15.1% EBITDA (2,277) 2,059 7,161 5,503 Key Shareholders post offering (above 10%) margin (%) -18.0% 6.9% 20.7% 18.5% Horizon Analytical company 44.0% Net profit (3,444) 1,013 5,786 4,602 Abdulrahman Naser Al-Asmari 20.0% margin (%) -27.2% 3.4% 16.7% 15.5% Key Metrics in SAR 000 2013 2014 2015 9M2016 2013 2014 2015 9M2016 Cash/equivalents 573 2,118 2,548 4,009 Per Share Ratios Current Assets 2,140 3,502 6,439 9,967 EPS (SAR) (2.76) 0.81 4.63 3.68 Property, Plant & Equipment 7,386 5,840 6,132 15,561 DPS (SAR) 0.00 0.00 0.00 0.00 Other Non-current Assets 0 0 0 2,987 Return Ratios Total 9,526 9,342 12,571 28,515 RoE* NA 13.2% 51.5% 45.4% Current liabilities 9,199 1,304 887 7,673 RoIC* NA 7.9% 46.0% 36.7% Non-current liabilities 227 355 448 7,312 RoA* NA 10.8% 46.0% 21.5% Shareholders' Equity 100 7,683 11,236 13,530 Valuation Ratios Total 9,526 9,342 12,571 28,515 P/E* NA 80.24 14.04 13.24 Total Debt 8,142 1,251 738 6,825 EV/EBITDA* NA 39.04 11.09 11.46 Net Debt 7,569 (867) (1,810) 2,816 P/B NA 10.58 7.23 6.01 Dividend yield* 0.0% 0.0% 0.0% 0.0% Cash Flow statement Div Payout Ratio 0.0% 0.0% 0.0% 0.0% in SAR 000 2013 2014 2015 9M2016 Leverage Ratios Net Cash from Operations (1,844) 2,870 4,603 - Debt/ Equity 81.42 0.16 0.07 0.50 Net Cash from Investing (3,601) 246 (1,939) - Net debt/ EBITDA* NA (0.42) (0.25) 0.38 Net Cash from Financing 5,392 (1,571) (2,234) - Net Debt/Equity NA (0.11) (0.16) 0.21 Net change in Cash (54) 1,545 431 - Disclosures Please refer to the important disclosures at the back of this report. 9

Raydan The company owns and operates banquet restaurants which specialize in Saudi traditional food, in addition to operating patisserie and sweet factory through Rushah sweets. Currently, the company is operating 17 branches for Raydan restaurants, representing 91.6% of 2015 sales, and 7 branches for Raushah sweets which represent 8.4% of 2015 revenues. The company is targeting 50 branches by 2021 and is also planning to expand in the GCC region over the next five years. Figure 55 Raydan: Financial summary Issue Price (SAR) 32.0 (in SAR '000) 2013 2014 2015 9M2016 No. of Shares before IPO (mn) 22.5 Revenue 208,578 255,207 314,130 235,967 Offered shares (%) 30.0 growth (%) 22.4% 23.1% Offered Shares(mn) 6.8 Gross Profit 37,718 49,305 69,769 62,891 No. of shares post IPO (mn) 22.5 margin (%) 18.1% 19.3% 22.2% 26.7% Market cap (SAR mn) 720.0 Operating profit 26,680 33,360 50,488 40,056 Free Float Market Cap (SAR mn) 216.0 margin (%) 12.8% 13.1% 16.1% 17.0% EBITDA 33,788 44,206 65,539 51,852 Key Shareholders post offering (above 10%) margin (%) 16.2% 17.3% 20.9% 22.0% Mansour Al-Salami 29.4% Net profit 28,511 34,138 50,221 36,600 margin (%) 13.7% 13.4% 16.0% 15.5% Key Metrics (in SAR '000) 2013 2014 2015 9M2016 2013 2014 2015 9M2016 Cash/equivalents 16,618 37,178 40,216 22,823 Per Share Ratios Current Assets 34,527 61,253 77,747 63,718 EPS (SAR) 1.27 1.52 2.23 1.63 Property, Plant & Equipment 141,567 263,843 254,644 249,894 DPS (SAR) 0.73 1.23 2.18 0.00 Other Non-current Assets 5000 4548 4253 3,626 Return Ratios Total 181,094 329,644 336,644 317,239 RoE* 25.9% 14.1% 20.6% 19.9% Current liabilities 67,306 24,752 61,328 61,514 RoIC* 16.6% 10.2% 15.7% 19.4% Non-current liabilities 3,704 62,563 31,798 10,500 RoA* 15.7% 10.4% 14.9% 15.4% Shareholders' Equity 110,084 242,329 243,518 245,225 Valuation Ratios Total 181,094 329,644 336,644 317,239 P/E* (x) 25.25 21.09 14.34 14.75 Total Debt 45,000 65,859 68,351 43,013 EV/EBITDA* (x) 22.15 16.94 11.42 10.71 Net Debt 28,382 28,681 28,135 20,190 P/B (x) 6.54 2.97 2.96 2.94 Dividend yield* 2.3% 3.8% 6.8% 0.0% Cash Flow statement Div Payout Ratio 57.5% 80.8% 97.6% 0.0% (in SAR '000) 2013 2014 2015 9M2016 Leverage Ratios Net Cash from Operations 33,574 41,169 54,163 49,202 Debt/ Equity (x) 0.41 0.27 0.28 0.18 Net Cash from Investing (11,796) (132,537) (3,556) (6,476) Net debt/ EBITDA* (x) 0.84 0.65 0.43 0.29 Net Cash from Financing (16,393) 111,928 (49,026) (60,286) Net Debt/Equity (x) 0.26 0.12 0.12 0.08 Net change in Cash 5,385 20,560 1,581 (17,560) Disclosures Please refer to the important disclosures at the back of this report. 10

IMPORTANT DISCLOSURES FOR U.S. PERSONS This research report was prepared by Al Rajhi Capital (Al Rajhi), a company authorized to engage in securities activities in Saudi Arabia. Al Rajhi is not a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. This research report is provided for distribution to major U.S. institutional investors in reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the Exchange Act ). Any U.S. recipient of this research report wishing to effect any transaction to buy or sell securities or related financial instruments based on the information provided in this research report should do so only through Rosenblatt Securities Inc, 40 Wall Street 59th Floor, New York NY 10005, a registered broker dealer in the United States. Under no circumstances should any recipient of this research report effect any transaction to buy or sell securities or related financial instruments through Al Rajhi. Rosenblatt Securities Inc. accepts responsibility for the contents of this research report, subject to the terms set out below, to the extent that it is delivered to a U.S. person other than a major U.S. institutional investor. The analyst whose name appears in this research report is not registered or qualified as a research analyst with the Financial Industry Regulatory Authority ( FINRA ) and may not be an associated person of Rosenblatt Securities Inc. and, therefore, may not be subject to applicable restrictions under FINRA Rules on communications with a subject company, public appearances and trading securities held by a research analyst account. Ownership and Material Conflicts of Interest Rosenblatt Securities Inc. or its affiliates does not beneficially own, as determined in accordance with Section 13(d) of the Exchange Act, 1% or more of any of the equity securities mentioned in the report. Rosenblatt Securities Inc, its affiliates and/or their respective officers, directors or employees may have interests, or long or short positions, and may at any time make purchases or sales as a principal or agent of the securities referred to herein. Rosenblatt Securities Inc. is not aware of any material conflict of interest as of the date of this publication. Compensation and Investment Banking Activities Rosenblatt Securities Inc. or any affiliate has not managed or co-managed a public offering of securities for the subject company in the past 12 months, nor received compensation for investment banking services from the subject company in the past 12 months, neither does it or any affiliate expect to receive, or intends to seek compensation for investment banking services from the subject company in the next 3 months. Additional Disclosures This research report is for distribution only under such circumstances as may be permitted by applicable law. This research report has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient, even if sent only to a single recipient. This research report is not guaranteed to be a complete statement or summary of any securities, markets, reports or developments referred to in this research report. Neither Al Rajhi nor any of its directors, officers, employees or agents shall have any liability, however arising, for any error, inaccuracy or incompleteness of fact or opinion in this research report or lack of care in this research report s preparation or publication, or any losses or damages which may arise from the use of this research report. Al Rajhi may rely on information barriers, such as Chinese Walls to control the flow of information within the areas, units, divisions, groups, or affiliates of Al Rajhi. Investing in any non-u.s. securities or related financial instruments (including ADRs) discussed in this research report may present certain risks. The securities of non-u.s. issuers may not be registered with, or be subject to the regulations of, the U.S. Securities and Exchange Commission. Information on such non-u.s. securities or related financial instruments may be limited. Foreign companies may not be subject to audit and reporting standards and regulatory requirements comparable to those in effect within the United States. The value of any investment or income from any securities or related financial instruments discussed in this research report denominated in a currency other than U.S. dollars is subject to exchange rate fluctuations that may have a positive or adverse effect on the value of or income from such securities or related financial instruments. Past performance is not necessarily a guide to future performance and no representation or warranty, express or implied, is made by Al Rajhi with respect to future performance. Income from investments may fluctuate. The price or value of the investments to which this research report relates, either directly or indirectly, may fall or rise against the interest of investors. Any recommendation or opinion contained in this research report may become outdated as a consequence of changes in the environment in which the issuer of the securities under analysis operates, in addition to changes in the estimates and forecasts, assumptions and valuation methodology used herein. No part of the content of this research report may be copied, forwarded or duplicated in any form or by any means without the prior consent of Al Rajhi and Al Rajhi accepts no liability whatsoever for the actions of third parties in this respect. This research document has been prepared by Al Rajhi Capital Company ( Al Rajhi Capital ) of Riyadh, Saudi Arabia. It has been prepared for the general use of Al Rajhi Capital s clients and may not be redistributed, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of Al Rajhi Capital. Receipt and review of this research document constitute your agreement not to redistribute, retransmit, or disclose to others the contents, opinions, conclusion, or information contained in this document prior to public disclosure of such information by Al Rajhi Capital. The information contained was obtained from various public sources believed to be reliable but we do not guarantee its accuracy. Al Rajhi Capital makes no representations or warranties (express or implied) regarding the data and information provided and Al Rajhi Capital does not represent that the information content of this document is complete, or free from any error, not misleading, or fit for any particular purpose. This research document provides general information only. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other investment products related to such securities or investments. It is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek financial, legal or tax advice regarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in this document and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities or other investments, if any, may fluctuate and that the price or value of such securities and investments may rise or fall. Fluctuations in exchange rates could have adverse effects on the value of or price of, or income derived from, certain investments. Accordingly, investors may receive back less than originally invested. Al Rajhi Capital or its officers or one or more of its affiliates (including research analysts) may have a financial interest in securities of the issuer(s) or related investments, including long or short positions in securities, warrants, futures, options, derivatives, or other financial instruments. Al Rajhi Capital or its affiliates may from time to time perform investment banking or other services for, solicit investment banking or other business from, any company mentioned in this research document. Al Rajhi Capital, together with its affiliates and employees, shall not be liable for any direct, indirect or consequential loss or damages that may arise, directly or indirectly, from any use of the information contained in this research document. This research document and any recommendations contained are subject to change without prior notice. Al Rajhi Capital assumes no responsibility to update the information in this research document. Neither the whole nor any part of this research document may be altered, duplicated, transmitted or distributed in any form or by any means. This research document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or which would subject Al Rajhi Capital or any of its affiliates to any registration or licensing requirement within such jurisdiction. Disclosures Please refer to the important disclosures at the back of this report. 11

Disclaimer and additional disclosures for Equity Research Disclaimer This research document has been prepared by Al Rajhi Capital Company ( Al Rajhi Capital ) of Riyadh, Saudi Arabia. It has been prepared for the general use of Al Rajhi Capital s clients and may not be redistributed, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of Al Rajhi Capital. Receipt and review of this research document constitute your agreement not to redistribute, retransmit, or disclose to others the contents, opinions, conclusion, or information contained in this document prior to public disclosure of such information by Al Rajhi Capital. The information contained was obtained from various public sources believed to be reliable but we do not guarantee its accuracy. Al Rajhi Capital makes no representations or warranties (express or implied) regarding the data and information provided and Al Rajhi Capital does not represent that the information content of this document is complete, or free from any error, not misleading, or fit for any particular purpose. This research document provides general information only. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other investment products related to such securities or investments. It is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek financial, legal or tax advice regarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in this document and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities or other investments, if any, may fluctuate and that the price or value of such securities and investments may rise or fall. Fluctuations in exchange rates could have adverse effects on the value of or price of, or income derived from, certain investments. Accordingly, investors may receive back less than originally invested. Al Rajhi Capital or its officers or one or more of its affiliates (including research analysts) may have a financial interest in securities of the issuer(s) or related investments, including long or short positions in securities, warrants, futures, options, derivatives, or other financial instruments. Al Rajhi Capital or its affiliates may from time to time perform investment banking or other services for, solicit investment banking or other business from, any company mentioned in this research document. Al Rajhi Capital, together with its affiliates and employees, shall not be liable for any direct, indirect or consequential loss or damages that may arise, directly or indirectly, from any use of the information contained in this research document. This research document and any recommendations contained are subject to change without prior notice. Al Rajhi Capital assumes no responsibility to update the information in this research document. Neither the whole nor any part of this research document may be altered, duplicated, transmitted or distributed in any form or by any means. This research document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or which would subject Al Rajhi Capital or any of its affiliates to any registration or licensing requirement within such jurisdiction. Explanation of Al Rajhi Capital s rating system Al Rajhi Capital uses a three-tier rating system based on absolute upside or downside potential for all stocks under its coverage except financial stocks and those few other companies not compliant with Islamic Shariah law: "Overweight": Our target price is more than 10% above the current share price, and we expect the share price to reach the target on a 12 month time horizon. "Neutral": We expect the share price to settle at a level between 10% below the current share price and 10% above the current share price on a 12 month time horizon. "Underweight": Our target price is more than 10% below the current share price, and we expect the share price to reach the target on a 12 month time horizon. "Target price": We estimate target value per share for every stock we cover. This is normally based on widely accepted methods appropriate to the stock or sector under consideration, e.g. DCF (discounted cash flow) or SoTP (sum of the parts) analysis. Please note that the achievement of any price target may be impeded by general market and economic trends and other external factors, or if a company s profits or operating performance exceed or fall short of our expectations. Contact us Jithesh Gopi, CFA Head of Research and Financial Institutions Tel : +966 1 211 9332 Email: gopij@alrajhi-capital.com Al Rajhi Capital Research Department Head Office, King Fahad Road P.O. Box 5561, Riyadh 11432 Kingdom of Saudi Arabia Email: research@alrajhi-capital.com Al Rajhi Capital is licensed by the Saudi Arabian Capital Market Authority, License No. 07068/37. Disclosures Please refer to the important disclosures at the back of this report. 12