Your Complete Building Solution

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC) 1 2 0 1 3 R e p o r t A n n u a l CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC) Your Complete Buildin...
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CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

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2 0 1 3

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A n n u a l

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

Your Complete Building Solution

A n n u a l

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index

01

02 CEO Statement

03

03 Board of Directors

05

04 Introduction

09

05 Key Business Lines

11

06 Building Material Manufacturing Saudi Arabia

19

07 Building Material Manufacturing International

33

08 Construction Services Saudi Arabia

43

09 Construction Services International

57

10 Sustainable Development / CSR

63

11 Financial Results

69



Financial Statements

70



Zakat & Statutory Payments

77



Dividend Policy

79

12 Independent Auditors' Report

80

13 Contact Information

124

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CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

01 Chairman's Statement

01 Chairman's Statement

Chairman'S Statement

Construction Products Holding Company (CPC) stands poised for yet another milestone. I would like to take a moment to reflect on our journey, and the invaluable contributions of our many stakeholders, in particular, the unceasing commitment and manifold contributions of our shareholders.

Great leadership, management and staff have played a key role in our growth, of equal importance has been our relationship with SBG. As CPC has evolved, this relationship has developed from that of a supplier to SBG, to a vital partner – providing SBG with a single source for the logistical requirements that allow them to confidently take-on, and complete, even the most ambitious mega-projects. As we take our next big step forward, I would like to thank and congratulate each and everyone who has contributed in making CPC a major force in construction. Through our shareholders, Board, management and staff across all of our subsidiaries, we have truly lived up to our promise to provide the Kingdom, and the world, with 'Complete Building Solutions'.

Saleh Binladen

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CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

The last couple of years have provided us with unprecedented opportunities, and undreamed of challenges – and all have been met with the same equanimity by our Board, who’s support has been integral to our continued advancement.

02 CEO Statement

CEO Statement

Since its inception, CPC takes pride in its success that rests on 3 core factors: quality products, value engineering and understanding the priorities of its customers. This helped us to not only remain afloat, but also to grow in what remains a challenging environment in the whole MENA region: Our business volume and the number of projects in which we are involved increased and we have added, over the years, many new production lines and have improved existing ones.

The positive outcomes of 2013 have also been boosted by extensive reorganization, restructuring measures, and streamlining our businesses and sizing our operations for nearterm demand levels. At the same time, and keeping in mind that we need to keep on attracting more business and investors, we continuously look for innovations in our businesses, to invest in our people, and to improve what we offer in order to maintain our strong business model, and to expand on it where opportunities exist. Along these lines, in 2014 we are planning a strong presence in Africa, focusing mainly on present markets, Egypt and Senegal. To conclude, I would like to thank CPC team for their hard work and enthusiasm, and our shareholders for their trust in our capabilities and deliverables. I would also like to thank our clients for their trust in us and in our products, assuring them all of our continued drive and determination to continue providing fast and productive ways to successfully fulfill our commitment in providing excellent products and services in the field of construction, while maintaining excellent quality control.

Mu'taz Sawwaf

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CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

In 2013, CPC recorded a profit of 837.12 million (before Zakat “taxes”). The profit and earnings represent increases of 6% compared with the 2012 outcomes. Our clients now benefit from contracting services and production lines.

03 Board Of Directors

Board of directors Saleh Binladen

Saad Binladen

Mu'taz Sawwaf

Walid Samaha

Gasem AL-Shaikh

Taimor Labib CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

Alaa Al Jabri

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03 Board Composition

Board composition

The Company currently consists of seven Board Members with two remaining members to be chosen. The Company is currently short-listing appropriate candidates and expects to fill the two vacant independent director positions within 60 days of filing its IPO application with the CMA. Given the stature and the size of CPC, it is imperative that the directors selected bring value addition to the board and represent the independent shareholders effectively.

No.

Director Name

Title

Nationality

Executive / Non-Executiv

Independency

Saleh Mohammed Binladen

Chairman

Saudi

Non-Executive

Non-Independent (SBG)

2

Saad Mohammed Binladen

Member

Saudi

Non-Executive

Non-Independent (SBG)

3

Mu’taz Wasef Sawwaf

Member

Lebanese

Executive (CEO)

Non-Independent (SBG)

4

Walid Kamel Samaha

Member

Jordanian

Executive (COO)

Non-Independent (SBG)

5

Qasim Saleh Al Sheikh

Member

Saudi

Non-Executive

Non-Independent (SBG)

6

Taimoor Yahya Labib

Member

US

Non-Executive

7

Alaa Shakeeb Al Jabri

Member

Saudi

Non-Executive

Independent

8

[Vacant]

Member

Non-Executive

Independent

9

[Vacant]

Member

Non-Executive

Independent

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Non-Independent (Sirat Holding “Standard Chartered Private Equity”)

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04 Introduction

Introduction Construction Products Holding Company (CPC) is a Closed Joint Stock Company, founded in Jeddah, Saudi Arabia in 2007 with the aim of providing quality construction products and exceptional services in the field of supplying building materials. While CPC is focused primarily on serving Saudi Arabia, it has also developed significant interests in regional and international markets. CPC was established to consolidate the operations of seven companies in Saudi Arabia that had been developed to serve the needs of the Saudi Binladin Group (SBG). Since then, CPC has expanded rapidly into a one-stop-shop for the construction sector, providing a comprehensive range of building materials and services under one roof. At the same time, CPC has developed a strong customer base beyond SBG.

CPC’s many subsidiaries and joint ventures are focused on providing high-end quality specialized building materials and professional services that are critical to the construction sector. The companies within CPC have a long track record of working with each other and the group is capable of providing seamless and complete building solutions.

CPC’s holding structure comprises of a number of subsidiaries that specialize in various construction materials, transport and logistics services, all of which serve the building industry under one umbrella. We have implemented the “One-Stop-Shop” concept in Saudi Arabia and plan to implement it in the rest of the MENA region. On average 80% of a typical construction is built with materials provided by CPC subsidiaries. CPC has managed to maintain its leadership towards excellent construction products by committing to quality usage of latest and new technologies, and, most importantly, committing to its people. CPC invests great time and energy in training and developing talents and is strongly committed to attracting and developing local skills across all its divisions and subsidiaries. Today CPC is headquartered in Jeddah covering regional and international markets through its subsidiaries in Riyadh, Bahra, Dammam, and its established offices in Qatar, UAE, Egypt, India, and Syria providing clients with “Complete Building Solution” facilities for all their construction needs. Our vision is to “become your complete building solution” and our mission is “to provide our clients with high-end quality construction building materials and services”.

CPC’s overall offer ranges from the production and supply of key components such as precast, power cables, glass and aluminium, steel structures, marble and granite, readymix concrete and adhesives, to specialized building solutions and finishing services. They also provide design and installation services in all areas.

Our main focus is to provide customers with a comprehensive range of building A n n u a l

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CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

CPC executed turnkey projects for both the public as well as the private sectors and earned its reputation as the leading quality construction material provider in the Kingdom of Saudi Arabia. Its products cater to the ever-changing needs of the market, and its experience covers all market sectors from Corporate Headquarters, to Commercial Office Buildings, Mega Projects, Mixed Use Facilities, Hospitality/ Public Assembly, and Commercial and Private Interiors.

materials and services under one roof. Our offerings include complete turnkey projects for government and commercial purposes, private villas, holy sites, high-rise buildings, furnished compounds, major shopping malls, airports, and even complete cities.

05 Key Bu s ine s s Li ne s

Key Business Lines

CPC Holding Company

Building Materials Manufacturing – International

Building Materials Manufacturing - KSA

Construction Services - KSA

Construction Services International

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

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05 Key B u s i n es s L ines

Building Materials Manufacturing - KSA

Concrete Products and Services

Metal

Marble and Granite

Electromechanical Supporting Products

Cables

Adhesive

BMPC, Premco, Ready Mix, Arabian Austrian Ready Mix, PCPC Rabigh

RSC, BSC, UAAC, Roots Steel International, Roots Steel KSA

MGIC, Marble & Granite (Cyprus) Limited, MGI-FHL Marbles (Greece), MGIC Italy, D-Wire

FAME, ITCC

Bahra Cables

AMC

Woodwork, Gypsum and GRC

Sacodeco, DEBAGE

Building Materials Manufacturing – International

Egypt

Concrete Products and Services Premco Ready Mix Egypt, Premco Egypt

Paints

UCMC and Robert Paints

UAE

China

Metal

UAAC Egypt, BSC Egypt, Roots Steel Egypt

Marble and Granite

GNMT

Concrete Products and Services

Technocast UAE

Qatar

Syria

Metal

Concrete Products and Services

Concrete Products and Services

Polyco, Ginco Steel

QD-CPC Industries

Premco Syria, Ready Mix Homs, Adra Ready Mix

Metal

USBC Syria, UAAC Syria, BSC Syria

Key Business Lines

Construction Services - KSA

Electromechanical Services

Civil Works

Construction Vision EM, Inma Utilities, MTTS, Empower, Vision Networks, EFECO KSA, Vision Etimaad Contracting, First Vision

Axal Arabia, Haramain Gate, Orascom, Maytas Infra, Dorra Al Haramain, Arabtec KSA, Impregilo

Finishing Services

Construction Equipment Rental and Services

Fast Finishing, Sacodeco

Equipment Rental, Roots Scaffolding, UITC, Arabtec Equipment

Foundation

Huta

Construction Services International

Egypt

India

Electromechanical Services

Real Estate & Engineering Services

Real Estate & Engineering Services

Vision Qatar

Focus Engineering, Focus Management, CPC Industrial Development

Preferred Engineering India

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CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

Qatar

05 Key B us i n es s L ines

CPC’s operations are divided into two main business lines

which together, deliver every link of the supply chain, for even the biggest projects.

Each of these sectors compliments each other and together they allow CPC to deliver on our promise of ‘Complete Building Solutions’ for any project, regardless of size or complexity. As new technology becomes available, CPC invests – either in new companies or by developing key alliances – in order to remain at the forefront of international construction. Our core business areas are:

A. Building Material Manufacturing - KSA The building materials market is a sector of economy which provides the basic and essential components for construction projects. In order to keep abreast of the latest developments, we constantly broaden our manufacturing industrial chain, locally and internationally, to meet the demands of different project types and at massive production capabilities.

CPC currently supplies: A.1) Concrete Products & Services Fundamental to any construction project, concrete has become an incredibly complex industry on its own. Our local and international factories do not simply manufacture concrete, but develop state-of-the-art concrete solutions based on client/ project requirements. Key factories and business units: Premco Precast, Premco Ready Mix, Bahra Modern Precast, Arabian Austrian Ready Mix, PCPC Rabigh.

A.2) Metal The metal industry has undergone monumental changes, and the future promises to be even more dynamic — requiring us to become more efficient to address global competition and changing technologies. CPC has established and acquired partnerships with leading factories and business units in the Metal & Steel industry, providing products and services ranging from all structural steel requirements to decorative metalwork, and aluminum.

Key factories and business units: BSC, RSC, UAAC, Roots Steel International, Roots Steel KSA.

A.3) Marble & Granite Highly prized in the Saudi construction market, granite and marble are used both on the exterior and interior of buildings. CPC produces marble and granite, both in our own quarries and outsourced, for all applications – from highly detailed decorative work, to cladding. Key factories and business units: Marble & Granite International (MGIC).

A.4) Electro Mechanical Supporting Products Electro-mechanics are the myriad little things that make a project work. In order to control this vital aspect, CPC offers specialized pre-engineered solutions and custom made installations, with detailed engineering ideas, solutions and detailed fabrication shop drawings to take any project from concept to completion. Key factories and business units: FAME, ITCC.

A.5) Cables Wherever construction happens, wires and cables are needed. To meet the everincreasing de mand for electric cables and wires, CPC joined forces with international partners, to locally produce a variety of high quality cables and electrical wiring, using state-of-the-art German technology. Key factories and business units: Bahra Cables.

KEY Business lineS A.6) Adhesives

C. Construction Services - KSA

An often underestimated aspect of every project is adhesives, on which incredible demands are placed in the harsh regional climate. CPC locally produces adhesives, under their own label and under license from leading US companies. To meet the diverse needs of the construction industry, we produce a vast array of products ranging from adhesives and grouts, to epoxies, bonding agents and specialty products.

The Saudi Arabian Construction projects market, particularly its civil and infrastructure sectors, are increasing dramatically in size over the past 12 years and is expected to continue to grow as the Kingdom pushes ahead with its ambitious development plans. To meet this demand, CPC has established or acquired numerous specialized contracting companies, both locally and internationally.

Key factories and business units: AMC.

Our key business units are segregated into the following sectors:

A.7) GRC & Woodwork The skilled craftsmen required to bring raw materials to life are a highly sought after and dwindling resource. Our unique team of artisans provide woodwork and gypsum solutions for the construction industry for interior and exterior finishing and decoration - from planning tailored solutions to manufacturing unique furnishings and drapery, to finishing and decorative work. Key factories and business units: Sacodeco.

B. Building Material Manufacturing International

B.1) Concrete Products & Services Key factories and business units: Premco Ready Mix Egypt, Premco Egypt, Technocast UAE, QD-CPC Industries, Premco Syria, Ready Mix Homs, Ready Mix Aleppo, Adra Ready Mix.

B.2) Metal Key factories and business units: UAAC Egypt, BSC Egypt, Roots Steel Epypt, Polyco, Ginco Steel, USBC Syria, UAAC Syria, BSC Syria.

Electromechanical contracting is the brain behind all the utilities and controls of any project. From supply to designing and applying the different components needed. Through our subsidiaries, CPC provides electromechanical service solutions for every aspect of construction. Service Providers: Vision EM, Inma Utilities, EMPOWER, Vision Networks, MTTS, EFECO KSA, Vision Etimaad Contracting, First Vision.

C.2) Civil Works Civil engineering sets a project up to succeed. In order to ensure the highest standards, CPC has established and acquired partnerships with a number of specialized civil engineering and foundation contracting companies. Each company brings special skills to the table, allowing us to meet the requirements of any project. Service Providers: Axal Arabia, Harmain Gate, Orascom, Maytas infra, Dorra Al-Haramain, Arabtec KSA, Impreglio and Huta Foundation.

B.3) Marble & Granite Key factories and business units: Global New Material Technology (GNMT).

B.4) Paints Key factories and business units: UCMC, Robert Paints. A n n u a l

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CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

CPC currently supplies:

C.1) Electromechanical Services

05 Key B us i n es s L ines

C.3) Finishing Services & Products The perfect finishings is the final touch in a project. To meet the growing demand for high end finishing products and sophisticated designs, CPC provides cutting-edge services for any project – regardless of size or complexity. Service Providers: Fast Finishing, Sacodeco.

C.4) Construction Equipment Rental & Services Incredible growth in the sector has led many construction companies to hire machinery for specific projects. Rather than buying equipment outright, companies look to maximize their project budgets. CPC has taken advantage of this new market opportunity by creating its own construction equipment rental business unit that caters to equipment needs in KSA. Service Providers: Equipment Rental Company, Roots Scaffolding, UITC, Arabtec Equipment.

D. Construction Services - International Our key business units are segregated into the following sectors:

D.1) Electromechanical Services Service Providers: Vision Qatar.

D.2) Real Estate & Engineering Services Service Providers: Preferred Engineering India.

D.3) Engineering Services Service Providers: Preferred Engineering India, Focus Engineering Egypt, Focus Managment Egypt, CPC Industrial Development.

06 AMC • BAHRA CABLES • BPC • BSC & RSC • FAME • MGIC • PREMCO • PREMCO READY MIX • ROOTS STEEL INTERNATIONAL • UAAC • SACODECO

BUILDING MATERIAL MANUFACTURING Saudi Arabia Revenue 2012 2013

Net Income 5,465,810 6,147,605

2012 2013

491,967 358,982

06 Companies Overview

ADHESIVE MANUFACTURING COMPANY COMPANY OVERVIEW

AMC is a Saudi limited liability company that has been serving it’s valued customers since it was incorporated in 1992. Over the years, AMC has proved to be one of the leading manufacturers of chemicals and additives for building and construction. Originally part of the Saudi Binladen Group, AMC is currently a proud member of an elite group of companies under the strong leadership and guidance of CPC (Construction Products Holding Co).

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

Shamiyah “Makkah Haram”, KAIA “King Abdul Aziz International Airport”, Strategy Al Mowahad “Ministry of Interior”, KSAU “King Saud Bin Abdul Aziz University for Health Sciences”, Capital Market Authority “CMA”, Correctional Facilities, DOKAAE, Mataf Expansion, Senegal Airport, KAFD “King Abdullah Financial District”, Princess Noura University.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

16,203

13,974

-14%

Total Assets

17,860

15,366

-14%

Current Liabilities

3,814

1,076

-72%

Total Liabilities

5,312

2,704

-49%

Total Equity

12,548

12,661

1%

Income Statement 000's SAR

A2012

A2013

B2013

Revenue

10,818

11,763

16,195

9%

Gross Profit

2,768

2,697

4,267

-3%

Growth (%)

Operating Income

979

1,132

2,046

16%

Net Income Before Zakat & Tax and Minority Interest

979

1,132

1,943

16%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

-

-

Net Income

988

1,132

1,943

15%

06 Companies Overview

BAHRA ADVANCED MANUFACTURING CABLE COMPANY COMPANY OVERVIEW

BCC, etablished in 2007 as a part of CPC Industries and based in Bahra, is a producer of low, medium, and high voltage cables in Saudi Arabia. The company plans to manufacture a wide variety of copper products such as copper tapes and bus bars. Catering to the electrical manufacturing sector, BCC is equipped with state-of-the-art production lines to provide and ensure high quality products. Design, production system and management are supported by leading German technology.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

Princess Noura University, KSAU “King Saud Bin Abdul Aziz University for Health Sciences”, Strategy Al Mowahad “Ministry of Interior”, Public Service Center, Shumaisi, KAIA “King Abdul Aziz International Airport”, Shamiya Project, Mataf Expansion, SANG Project “National Guard”, HHR Project “Haramain High Speed Railway Project”.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

1,660,486

1,045,844

-37%

Total Assets

2,261,144

1,468,349

-35%

Current Liabilities

1,452,525

918,996

-37%

Total Liabilities

1,645,206

1,038,500

-37%

Total Equity

615,938

429,849

-30%

000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

1,556,577

2,281,612

1,990,116

47%

Gross Profit

156,335

205,187

256,196

31%

Operating Income

110,064

144,622

87,308

31%

Net Income Before Zakat & Tax and Minority Interest

76,470

101,295

79,208

32%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

523

31,683

-

Net Income

76,470

101,295

79,208

32%

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Income Statement

06 Companies Overview

BAHRA MODERN PRECAST COMPANY

Bahra Modern Precast Co. Ltd

COMPANY OVERVIEW

BPC produces all types of precast concrete for construction, ranging from pre-stressed beams to gigantic segments for bridge construction located at CPC Bahra Industrial Complex, constructed on an area of 840,000m2. The most important aims of the complex are: • Securing the self-sufficiency of requirements for improvement of Jamarat project and it’s surrounding area. • Quality assurance and ensuring the completion of the project within the time schedule. • Securing the future requirements for the areas surrounding the sanctuary areas of Makkah. • Securing the requirements of the Kingdom of Saudi Arabia in general.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS HHR Project “Haramain High Speed Railway Project”, Jamarat, Sanctuary Areas of Makkah.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

105,799

93,581

-12%

Total Assets

228,705

193,068

-16%

Current Liabilities

166,957

123,868

-26%

Total Liabilities

176,921

135,802

-23%

Total Equity

51,784

57,266

11%

Income Statement 000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

158,310

216,824

169,015

37%

Gross Profit

30,510

31,808

54,567

4%

Operating Income

4,434

5,160

12,100

16%

Net Income Before Zakat & Tax and Minority Interest

5,328

5,884

9,771

10%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

(2,664)

(2,942)

4,885

10%

Net Income

5,328

5,884

9,771

10%

06 Companies Overview

BAHRA STEEL COMPANY RIYADH STEEL COMPANY

BSC

RSC

COMPANY OVERVIEW

BSC, established in 2005 and based in Jeddah, focuses on cutting and bending of steel, production of wire mesh, and steel straightening. RSC, established in 2008 as a spin-off from BSC and based in Riyadh, engages in the production of construction related steel products. Both companies provide customers with a variety of quality steel product and services using state of the art equipment produced by leading European manufacturers. Both companies provide service of factory-completed work such as pre-assembled columns and beams to be transported to the project site and thereby reducing on-site assembly time.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS Mataf Expansion, KAUST “King Abdullah University of Science & Technology”, HHR Project “Haramain High Speed Railway Project”, KAFD “King Abdullah Financial District”. BSC

FINANCIAL RESULTS

Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

326,082

279,782

-14%

Total Assets

347,401

299,126

-14%

Current Liabilities

250,742

193,673

-23%

Total Liabilities

253,277

196,726

-22%

Total Equity

102,400

94,124

-8%

A2012

A2013

B2013

Growth (%)

Revenue

644,734

751,745

579,353

17%

Gross Profit

53,228

59,341

57,805

11%

Operating Income

39,174

43,969

49,101

12%

Net Income Before Zakat & Tax and Minority Interest

39,174

43,969

38,397

12%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

19,198

-

Net Income

39,174

43,969

38,397

12%

RSC Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

112,586

92,990

-17%

Total Assets

134,760

111,053

-18%

Current Liabilities

99,365

74,500

-25%

Total Liabilities

99,977

75,297

-25%

Total Equity

34,783

35,757

3%

Income Statement

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000's SAR

A2012

A2013

B2013

Revenue

166,300

187,135

187,483

13%

Gross Profit

27,179

14,048

21,207

-48%

Growth (%)

Operating Income

23,363

9,737

15,149

-58%

Net Income Before Zakat & Tax and Minority Interest

23,363

9,737

14,392

-58%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

-

-

Net Income

23,363

9,737

14,392

-58%

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CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

Income Statement 000's SAR

06 Companies Overview

FACTORY FOR ASSEMBLY OF MECHANICAL & ELECTRICAL WORKS COMPANY OVERVIEW

FAME is a limited liability Company established in 2009, and is specialized in the preEngineered solutions and Custom Made installations. The factory provides detailed engineering ideas, solutions and detailed fabrication shop drawings for the: • Assembled Panel Boards • Manufactured Cable Trays and Metal works • Custom Made piping, supports, rollers and steel frames.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

Shamiyah “Makkah Haram”, KAIA “King Abdul Aziz International Airport”, Strategy Al Mowahad “Ministry of Interior”, KSAU “King Saud Bin Abdul Aziz University for Health Sciences”, Capital Market Authority “CMA”, Correctional Facilities, DOKAAE, Mataf Expansion, Senegal Airport, KAFD “King Abdullah Financial District”, Princess Noura University, Ministry of Interior.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Total Assets

37,608

37,371

Current Assets

29,706

Current Liabilities

33,659

Total Liabilities

34,608

Total Equity

3,000

Growth (%)

27,918

-6% -1%

9,415

-72%

26,607

787%

10,763

-69%

Income Statement 000's SAR

A2012

A2013

B2013

Growth (%)

Gross Profit

8,647

6,159

10,852

-29%

5,496

-34%

Revenue

Operating Income

Net Income Before Zakat & Tax and Minority Interest Zakat & Tax

Minority Non-controlling interest Net Income

55,546 5,322 5,360 -

5,360

58,122 3,338 3,522 -

3,522

61,241 6,916 -

3,682 5,496

5%

-37% -

-34%

06 Companies Overview

MARBLE & GRANITE INTERNATIONAL COMPANY

MGIC

COMPANY OVERVIEW

MGIC is a limited Liability company established in 1982 and is leading the industry in the production and installation of marble and granite products. Today, MGIC has 18 existing quarries, 7 new quarries with concessions pending, and 7 prospective quarries. We operate the largest Middle Eastern stone producing factory with highly experienced experts handling installation projects both within Saudi Arabia and worldwide.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

Mataf Expansion, Princess Noura University, HHR Project “Haramain High Speed Railway Project”, Casablanca Palace “Morroco”, Royal Palace Riyadh.

FINANCIAL RESULTS Balance Sheet A2012

A2013

Growth (%)

485,199

423,375

-13%

Total Assets

912,128

849,586

-7%

Current Liabilities

457,915

472,315

3%

Total Liabilities

521,643

536,546

3%

Total Equity

390,485

313,040

-20%

Income Statement 000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

1,201,113

1,131,422

1,079,460

-6%

Gross Profit

306,157

304,437

345,554

-1%

Operating Income

243,557

245,127

241,610

1%

Net Income Before Zakat & Tax and Minority Interest

241,774

241,420

217,049

-

Zakat & Tax

(370)

(1,906)

-

415%

A n n u a l

Minority Non-controlling interest

(869)

309

-

-136%

Net Income

241,404

239,513

217,049

-1%

R e p o r t

2 0 1 3

2 5

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

000's SAR Current Assets

06 Companies Overview

PRECAST MANUFACTURING COMPANY COMPANY OVERVIEW

PREMCO is a limited liability company established in 1991 and leads the construction industry in manufacturing general contracting products, maintenance, decoration, and renovation of residential and commercial precast buildings. PREMCO is recognized for the exceptional quality in such products as precast concrete including hollow core slabs, double tee slabs, wall frames, cladding panels and boundary walls. Our glass fiber reinforced cement products are well known and highly demanded for decorative elements. The lightweight Acotec wall panels offered at PREMCO are easily installed, fire proof, and moisture resistant. PREMCO relies on the superior quality of its products and commitment to customer service to continue growth in the construction industry with exceptional quality products while remaining consistent, profitable and efficient.

Income Statement

000's SAR

A2012

A2013

B2013

Revenue

625,445

536,010

776,029

-14%

126,977

-165%

33,208

-438%

OVERVIEW OF MAJOR COMPLETED AND Gross Profit 37,440 (24,203) ONGOING PROJECTS Operating Income

14,495

(48,943)

Growth (%)

Mataf Expansion, KAUST “King Abdullah HHR Net Income Before Zakat & Tax and Minority Interest University 50,737 of Science (26,573) & Technology”, 30,531 -152% Project “Haramain High Speed Railway Project”,- Ministry of- Interior United Command Zakat & Tax Center, KAFHA “King Abdullah Foundation for Humanitarian Minority Non-controlling interest - Activities”, - Royal Palace Riyadh. Net Income 50,737 (26,573) 30,531 -152%

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

373,658

295,456

-21%

Total Assets

847,483

760,888

-10%

Current Liabilities

283,657

182,035

-36%

Total Liabilities

330,886

231,416

-30%

Total Equity

516,597

529,472

2%

Income Statement 000's SAR

A2012

A2013

B2013

Revenue

625,445

536,010

776,029

-14%

Gross Profit

37,440

(24,203)

126,977

-165%

Growth (%)

Operating Income

14,495

(48,943)

33,208

-438%

Net Income Before Zakat & Tax and Minority Interest

50,737

(26,573)

30,531

-152%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

-

-

Net Income

50,737

(26,573)

30,531

-152%

Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

373,658

295,456

-21%

Total Assets

847,483

760,888

-10%

Current Liabilities

283,657

182,035

-36%

Total Liabilities

330,886

231,416

-30%

Total Equity

516,597

529,472

2%

06 Companies Overview

PREMCO READY MIX COMPANY COMPANY OVERVIEW

Premco Ready Mix Company is a limited liability company located in Jeddah and was established in 2008 to accommodate the heavy demand of concrete for projects throughout Saudi Arabia and neighboring countries. Premco Ready Mix Company currently has an annual capacity of around 3,744,00 m3 of different types and grades of concrete, with a facility that includes 15 batching plants.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

Mataf Expansion, Princess Noura University, HHR Project “Haramain High Speed Railway Project”, KAFHA “King Abdullah Foundation for Humanitarian Activities”.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

114,584

94,856

-17%

Total Assets

493,633

517,426

5%

Current Liabilities

174,941

448,984

157%

Total Liabilities

439,691

454,484

3%

Total Equity

53,942

62,942

17%

000's SAR

A2012

A2013

B2013

Revenue

673,161

669,208

607,649

-1%

Gross Profit

43,663

18,583

111,561

-57%

Growth (%)

Operating Income

23,570

3,555

35,320

-85%

Net Income Before Zakat & Tax and Minority Interest

30,321

15,420

28,521

-49%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

(9,096)

(4,626)

8,556

-49%

Net Income

30,321

15,420

28,521

-49%

A n n u a l

R e p o r t

2 0 1 3

2 7

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

Income Statement

06 Companies Overview

ROOTS STEEL INTERNATIONAL COMPANY COMPANY OVERVIEW

Roots Steel is a joint venture of Construction Products Holding Company and Roots Group Arabia to meet the growing demand for Pre-Engineered Buildings in the Middle East and Africa. Established in 2008, the company is presently operating in Saudi Arabia, UAE, Syria, and Egypt with manufacturing plants in Syria (2009), Egypt (2010) & UAE (2010). Roots Steel offers general contractors, builders and end-users customized, highperformance metal buildings systems and components for industrial, commercial and institutional use. We provide design & detail engineering, project management, manufacturing, erection and after-sales service.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

Princess Noura University, KSAU “King Saud Bin Abdul Aziz University for Health Sciences”, King Abdullah Foundation, KAIA “King Abdul Aziz International Airport”, HHR Project “Haramain High Speed Railway Project”.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

105,313

215,324

104%

Total Assets

225,481

375,650

67%

Current Liabilities

148,545

304,201

105%

Total Liabilities

162,926

69,867

-57%

Total Equity

62,555

32,003

-49%

Income Statement 000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

153,453

462,173

581,976

201%

Gross Profit

40,022

40,880

69,524

2%

Operating Income

20,767

17,008

35,879

-18%

Net Income Before Zakat & Tax and Minority Interest

-

-

32,113

-

Zakat & Tax

(13)

(1,264)

-

9623%

Minority Non-controlling interest

-

(5,205)

14,708

-

Net Income

7,305

(10,610)

32,113

-245%

06 Companies Overview

UNITED ARAB ALUMINUM COMPANY COMPANY OVERVIEW

UAAC is one of the regions leading companies in the development, commercialization and distribution of a wide range of high quality aluminum products, ranging from window frames and shutters to frameless structural glazing. The company also offers bespoke solutions to match the requirements of the most cutting edge projects.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS Senegal Airport, Princess Noura University, KAUST “King Abdullah University of Science & Technology”, HHR Project “Haramain High Speed Railway Project”, Ministry of Interior United Command Center, KAFHA “King Abdullah Foundation for Humanitarian Activities”, Casablanca Palace “Morroco”.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

175,586

270,381

54%

Total Assets

245,800

344,089

40%

Current Liabilities

134,688

272,196

102%

Total Liabilities

144,301

282,621

96%

Total Equity

101,499

61,468

-39%

000's SAR

A2012

A2013

B2013

Revenue

262,449

262,396

302,264

-

Gross Profit

5,516

(16,955)

34,854

-407%

Operating Income

(5,025)

(37,482)

3,909

646%

Net Income Before Zakat & Tax and Minority Interest

449

(35,814)

-

-8076%

A n n u a l

Growth (%)

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

(135)

(8,572)

947

6259%

Net Income

449

(35,814)

3,909

-8076%

R e p o r t

2 0 1 3

2 9

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

Income Statement

06 Companies Overview

SAUDI COMPANY FOR DEVELOPMENT OF CONSTRUCTION AND TRADING COMPANY OVERVIEW

Established in 1990 and based in Jeddah, Saudi Company for Development of Construction and Trading (SACODECO) specializes in interior and exterior finishing and decoration works including design, supply, application and installation for both public and private clients.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS Senegal Airport, Princess Noura University, KAUST “King Abdullah University of Science & Technology”, Ministry of Interior United Command Center, Casablanca Palace “Morroco”, Royal Palace Riyadh.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Current Assets

414,547

412,992

Growth (%) -

Total Assets

574,705

587,606

2%

Current Liabilities

472,809

479,869

1%

Total Liabilities

514,705

527,606

3%

Total Equity

60,000

60,000

-

Income Statement 000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

799,423

592,838

778,482

-26%

Gross Profit

183,925

158,186

214,006

-14%

Operating Income

137,663

114,685

155,102

-17%

Net Income Before Zakat & Tax and Minority Interest

153,908

121,935

142,693

-21%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

-

-

Net Income

153,908

121,935

142,693

-21%

07 CHINA • EGYPT • QATAR • SYRIA • UAE

BUILDING MATERIAL MANUFACTURING International Revenue 2012 2013

113,839 88,902

Net Income 2012 2013

(76,240) (43,474)

07 Companies Overview

CHINA GLOBAL NEW MATERIAL TECHNOLOGY (JI’AN) CO. LTD. CPC owns a special high quality marble factory in Ji’an, China. With an investment of 15,000,000 USD, the company is expanding its production capacity in a major emerging market and will deliver its innovative building technologies more quickly to the growing number of customers based in China, Saudi Arabia and the GCC region. The move is to invest in buying GNMT factory as part of the company’s ongoing program to consolidate and optimize its global production network. China is a positive investment environment, the availability of raw materials and the efficiency of the Industry Park infrastructure, encouraged us to expand our Industrial Building Material Manufacturing.

Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

-

18,567

-

Total Assets

-

76,311

-

Current Liabilities

-

6,058

-

Total Liabilities

-

6,058

-

Total Equity

-

68,253

-

Income Statement 000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

-

17,175

-

-

Gross Profit

-

6,136

-

-

Operating Income

-

(1,546)

-

-

Net Income Before Zakat & Tax and Minority Interest

-

(1,546)

-

-

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

-

-

Net Income

-

(1,825)

-

-

07 Companies Overview

EGYPT CPC - Egypt for Industrial Development Company is a member of Construction Products Holding Company (CPC) a closed joint stock company registered under the rules and regulations of the Kingdom of Saudi Arabia. CPC’s Mission is to provide top quality services with a reasonable return on investment to the shareholders, to provide our community with a safe and friendly working environment, to maintain our employees’ compensation package at a level higher than the local standards, and to build leadership services and brands in Industrial sector markets around the world. CPC - Egypt acquired 1,500,000 m2 of land in 6th of October City to construct the first private Industrial park in Egypt, fully owned and managed by a private sector company.

PREMCO EGYPT

Is a newly established company in the industrial area at 6th of October City – Egypt. Premco precast produces a wide variety of precast concrete products and can even design products to suit the unique requirements of individual clients.

PREMCO READY MIX EGYPT A newly built domestic firm duly registered in the early 2009 in 6th of October City – Egypt.

A n n u a l

R e p o r t

2 0 1 3

3 5

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

We are engaged in the production and manufacture of ready-mixed concrete to provide the needs of the people particularly in the construction and engineering sectors. One of the company’s objectives is to contribute to the imfrastructure projects of both the private and government sectors as a supplier of superior readymix concrete in airfields/landing fields, roads, bridges, telecommunication lines, transmission lines, water, oil & gas pumping stations, dams, reservoirs, ports and harbors, residential and commercial buildings, hotels, private/residential villas and other similar structures.

07 Companies Overview

UAAC EGYPT [Company is under formation] UAAC is one of the regions leading companies in the development, commercialization, and distribution of a wide range of high quality aluminum products, ranging from window frames and shutters to frameless structural glazing. The company also offers bespoke solutions to match the requirements of the most cutting edge projects.

ROOTS STEEL EGYPT Established in 2010, Roots Steel Egypt offers general contractors, builders and endusers customized, high-performance metal buildings systems and components for industrial, commercial and institutional use. We provide design & detail engineering, project management, manufacturing, erection and after-sales service.

CPC EGYPT - CONSOLIDATED (000’S EGP) Balance Sheet 000's EGP

A2012

A2013

Growth (%)

Current Assets

205,880

327,386

59%

Total Assets

356,719

501,477

41%

Current Liabilities

169,329

224,891

33%

Total Liabilities

182,093

249,544

37%

Total Equity

174,626

251,933

44%

Income Statement 000's EGP

A2012

A2013

B2013

Growth (%)

Revenue

176,967

259,410

212,984

47%

Gross Profit

84,631

136,269

85,483

61%

Operating Income

77,020

123,436

69,522

60%

Net Income Before Zakat & Tax and Minority Interest

84,045

137,918

58,077

64%

Zakat & Tax

21,918

37,599

12152

72%

Minority Non-controlling interest

21,584

37,676

10502

75%

Net Income

62,127

100,319

45,925

61%

07 Companies Overview

QATAR QD - CPC Incorporated in January 2011, Qatari Diar Construction Products Company Industries W.L.L (‘QD - CPC Industries W.L.L’) has established a series of innovative, market penetrating, Qatar-based building materials manufacturing facilities which will become the “complete building solution” for their clients. Today, QD - CPC Industries W.L.L owns and manages the wholly owned operating building materials factories engaged in the related business segments. On an area of 200,000 square meters as an initial phase, QD - CPC Industries has its Industrial Complex located in Mesaieed Industrial Area. The objective behind the QD - CPC investment is to establish a “Complete Building Solution” as an integrated building materials manufacturing company in Qatar, which will capitalize on the growth opportunities emerging in the Qatari Real Estate Development and Construction sector. Ultimately, we aim to build customer preference achieving the status of a key player in Qatar’s building materials industry over loyalty and gain market the next five years.

PREMCO READY MIX

QD - CPC, as well, owns “Premco Ready Mix Concrete”, which is built on an area of 20,000 square meters on Dokhan road, at a cost of QR 40 million. The plant has been operating since September 2012 with a production capacity of 240 cubic meters per hour. PREMCO Ready Mix produces different types and grades of high quality concrete, super structure, sub-structure, mass and light-weight, using standard cementitious materials, GGBS, microsilica, fly ash and aggregate.

NATIONAL ASPHALT COMPANY

The company also owns the National Asphalt Factory (NAF), which is built on an area of 10,000 square meters on Dokhan road at a cost of QR14 million. The plant has been operating since September 2012 with a production capacity of 240 tons/hour.

2. WEARING COURSE ( SCT2-) The top of road but for heavy traffic, STC2 is more courses which is in contact directly with the wheel of vehicle and heavy vehicle. 3. INTERMIDIATE COURSE (BCT1-) 1) In asphaltic concrete paving, an intermediate course between the course base and the surfacing material; consists of intermediate-size aggregate bound by bituminous material. 2) A row of masonry units laid between, and used to bind, an inner and an outer wall. 4. BASE COURSE (IC1-) Base Course is the layer immediately under the wearing surface (Applies whether the wearing surface is bituminous or cement concrete and or more inch thick or is but a thin bituminous layer). As base course lies close under the pavement surface it is subjected to severe loading. The material in a base course must be of extremely high quality and its construction must be done carefully.

A n n u a l

R e p o r t

2 0 1 3

3 7

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

1. WEARING COURSE ( SCT1-) The top layers of pavement which is in direct contact with the wheel of the vehicle. Usually constructed of material in which bitumen is used as binder materials.

07 Companies Overview

PREMCO PRECAST QATAR

CPC - Qatar complex at the Mesaieed industrial zone accommodates four factories including “PREMCO for Precast Concrete” which is built on an area of 77,682 square meters, at a cost of QR120 million, and started production in October 2013. Production capacity of the plant is 450 slabs daily, plus 750 walls and other precast concrete products. Premco Precast Qatar design, produce and erect the following precast elements with grey cement & Pigmented finished: Precast and Pre-stressed Beams/ Precast Columns/ Staircase/ Load Bearing Wall/ Foundations/ Decorative members/ Load and non-load bearing members/ Prestressed and Post-Tensioned Beams and Columns/ Pre-stressed Hollow Core Slabs/ Cladding Panels/ Solid Panels/ Sandwich Panels/ Insulated Panels

UNITED ARAB ALUMINUM COMPANY

The complex accommodates also the United Arabian Aluminum Company (UAAC), which was built on an area of 25304 square meters at a cost of QD30 million, and started production in November 2013. The aluminum factory consists of production lines to manufacture a wide range of aluminum products tailored to suit all construction requirements such as walls, cladding, doors and windows. UAAC produces various products using the latest technology including aluminum doors, windows, shop fronts, louvers, sunshades, rolling shutters, venetian blinds, conventional & structural glazed curtain walls, frameless structural glazing, sky lights, vaults, domes, verandas, hand rails, balustrades, automatic sliding and revolting doors...etc.

UNITED ARAB GLASS COMPANY

The complex also includes the United Arab Glass Company (UAGC) on an area of 20000 square meters at a cost of QD25 million, and production work will start in mid-June 2014. The plant will have specialized production lines for all kinds of glass (normal and formed), processed and bullet-proof glass.

SACODECO QATAR

SACODECO plant was built on an area of 38,235 square meters at a cost of QR30 million. The plant has several production lines for producing furniture, doors, kitchen cabinets, walls cladding, false ceilings, finishing products, interior decoration and hotel furniture. Starting operation on July 2014.

QD-CPC - CONSOLIDATED (000’S QR) Balance Sheet 000's QR

A2012

A2013

Growth (%)

Current Assets

114,736

77,581

-32%

Total Assets

187,367

246,737

32%

Current Liabilities

4,888

38,925

696%

Total Liabilities

5,308

74,080

1296%

Total Equity

182,059

172,657

-5%

Income Statement 000's QR

A2012

A2013

B2013

Growth (%)

Revenue

7,593

93,531

169,398

1132%

Gross Profit

(3,616)

2,319

28,453

-164%

Operating Income

(9,960)

(9,402)

7,663

-6%

Net Income Before Zakat & Tax and Minority Interest

(9,960)

(9,402)

7,663

-6%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

5,939

-

Net Income

(9,960)

(9,402)

7,663

-6%

07 Companies Overview

SYRIA CPC - Syria Holding Company was established in July 2007 with Saudi-Syrian investors, for the purpose of setting up factories in the Syrian territory producing various building materials. The factories as a general statement can be named as “One Stop Shop” for all your building materials supplies. The factories are not operating, due to the current political situation in Syria.

PREMCO SYRIA Premco is a division of CPC-Syria, which is part of CPC Saudi Arabia and throughout the region, CPC Syria was created to provide a local presence and enable the company to provide better, more efficient service in the country. Our product range is as broad as our experience in the industry. At Premco, our products are our strength and it counts from start to finish with every project. Our service is complete and covers each and every aspect of precast products, from design and manufacturing, through to installation on site. We offer a wide variety of precast products and continue to diversify our line to meet today’s ever changing design demands.

NATIONAL READY MIX HOMS National Ready Mix plant is built on an area of 48,000 M2 and is equipped with one batching plant with 100 Cu. M. per hour capacity. This batching plant is imported from the Turkish manufacturer GURIS known worldwide for its accuracy, fast delivery and effectiveness. This plant work with SKIP system and is provided with a humidity sensor which gives a consistent and distinguished mix.

UAAC SYRIA

A n n u a l

R e p o r t

2 0 1 3

3 9

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

With extensive experience in the building industry, UAAC is one of the Middle East leaders in the development, commercialization and distribution of high quality aluminum systems for windows, doors, sliding elements, curtain walls, conservatories and sun screening systems. UAAC systems provide solutions for residential, palaces and commercial projects including high rise buildings. Our research approach allows us to regularly extend our product range by offering solutions that are suitable for local markets together with our strategic German Partners in the Middle East (GUTMANN). UAAC also provides bespoke solutions for architects and consultants requiring nonstandard system and profiles (Tailor Made).

07 Companies Overview

BSC SYRIA At Bahra Steel our philosophy is creative and customer oriented. We put our experience into helping our customers build a structural project with no hassle. We treat our customer’s project as our own. This combined sense of quality and integrity has made Bahra Steel an industry leader in construction materials. Giving your project to a specialist in the business saves you time and money. Bahra Steel company will work as a partner with you to study the best way to help you in completing your project in the most economical way.

CPC SYRIA - CONSOLIDATED (000’S USD) Balance Sheet 000's USD

A2012

A2013

Growth (%)

Current Assets

17,666

6,016

-66%

Total Assets

77,269

29,247

-62%

Current Liabilities

38,444

15,592

-59%

Total Liabilities

42,444

15,604

-63%

Total Equity

34,825

13,643

-61%

Income Statement 000's USD

A2012

A2013

B2013

Growth (%)

Revenue

6,377

9,475

14,000

49%

Gross Profit

2,390

3,445

(3,226)

44%

Operating Income

(4,309)

(6,591)

(14,772)

53%

Net Income Before Zakat & Tax and Minority Interest

(4,309)

(6,591)

(14,772)

53%

Zakat & Tax

(268)

(700)

-

161%

Minority Non-controlling interest

-

-

(1,030)

-

Net Income

(18,745)

(10,321)

(14,772)

-45%

07 Companies Overview

UAE TECHNOCAST UAE Established in 2006, Techno Cast Precast (TCP) is now one of the UAE’s most respected independent suppliers of precast concrete products to the construction industry. Our service is complete and covers each and every aspect of precast concrete products, from design, manufacturing and testing, through to installation on site. Production at our manufacturing plant is carried out using the most modern of methods and equipment for our range of pre-stressed concrete products and precast concrete products, ensuring that the highest standards of quality are achieved. As an independent company we have enjoyed planned, consistent growth and have built up an enviable reputation for the quality of our products and excellent relationships with our customers.

Balance Sheet 000's AED

A2012

A2013

Growth (%)

Current Assets

59,182

262,005

343%

Total Assets

338,042

292,289

-14%

Current Liabilities

37,861

37,778

-

Total Liabilities

42,472

40,959

-4%

Total Equity

249,816

297,083

19%

Income Statement A2012

A2013

B2013

Growth (%)

Revenue

47,701

34,449

57,772

-28%

Gross Profit

10,706

3,470

14,009

-68%

Operating Income

(1,750)

108,683

(46)

-6310%

Net Income Before Zakat & Tax and Minority Interest

(1,750)

108,683

(204)

-6310%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

-

-

Net Income

(9,275)

108,683

(204)

-1272%

A n n u a l

R e p o r t

2 0 1 3

4 1

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

000's AED

08 AXAL ARABIA • EMPOWER • FAST • FIRST VISION • HARAMAIN GATE • VISION NETWORKS • MTTS • ORASCOM • RENTAL EQUIPMENT • VISION • HUTA

CONSTRUCTION SERVICES Saudi Arabia Revenue 2012 2013

Net Income

6,502,948 5,855,663

2012 2013

509,340 528,108

08 Companies Overview

AXAL ARABIA FOR CONSTRUCTION COMPANY COMPANY OVERVIEW

Axal Arabia for Construction Company was established in 2007 and headquartered in Jeddah. AXAL Arabia is a general construction contractors specialized in residential, commercial, entertainment, operation, renovation and building maintenance, roads and grounds. Active across all regions of the Kingdom of Saudi Arabia, working with the government and highly recognized firms to design, build, and maintain many of the Kingdom's most complex and challenging projects.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

KAIA “King Abdul Aziz International Airport”, Strategy Al Mowahad “Ministry of Interior”, National Guard, Correctional Facilities, Princess Noura University, Royal Palace Riyadh.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

293,826

174,895

-40%

Total Assets

332,902

201,933

-39%

Current Liabilities

249,099

176,895

-29%

Total Liabilities

256,399

186,933

-27%

Total Equity

76,503

15,000

-80%

Income Statement 000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

732,681

514,244

594,541

-30%

Gross Profit

47,786

37,661

71,904

-21%

Operating Income

30,242

22,082

46,941

-27%

Net Income Before Zakat & Tax and Minority Interest

33,188

22,438

42,247

-32%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

16,899

-

Net Income

33,188

22,438

42,247

-32%

08 Companies Overview

EMPOWER CONTRACTING COMPANY OVERVIEW

We provide electrical, mechanical, low current and clinical engineering turn-key solutions for all types of commercial buildings (hospitals, educational institutions, hotels, residential) along with all infrastructure requirements (central cooling/heating, water supply, water treatment, sewage treatment and power generation). Our main focus is in the health-care sector. We are in the process of completing the construction of the largest hospital in the Kingdom of Saudi Arabia (200,000 m2 built-up area – 560 beds – 16 Operation Theatres) and are in the engineering process of various new hospitals in both the eastern and western regions.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

Princess Noura University, KSAU “King Saud Bin Abdul Aziz University for Health Sciences”.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

134,835

182,774

-37%

Total Assets

137,604

186,032

-35%

Current Liabilities

86,073

131,365

-37%

Total Liabilities

89,133

135,990

-37%

Total Equity

48,471

50,042

-30%

000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

328,481

195,273

500,000

-41%

Gross Profit

35,511

22,594

58,942

-36%

Operating Income

23,567

2,848

52,647

-88%

Net Income Before Zakat & Tax and Minority Interest

23,567

2,848

50,015

-88%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

29,309

-

Net Income

23,567

2,848

50,015

-88%

A n n u a l

R e p o r t

2 0 1 3

4 5

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

Income Statement

08 Companies Overview

FAST FINISHING CONTRACTING COMPANY COMPANY OVERVIEW

FAST is a limited liability company based in Jeddah and was established in 2009. FAST specializes in interior and exterior finishing and decoration works including design, supply, application and installation for both public and private clients. Key Products/ Services: • Gypsum installation for interior and exterior design • Wood works including doors and windows, wardrobes, kitchen cabinets, wooden flooring, wall cladding • Hotel Furnishing including installation of carpets, lightning and ceramics

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

Shamiyah “Makkah Haram”, KAIA “King Abdul Aziz International Airport”, KSAU “King Saud Bin Abdul Aziz University for Health Sciences”, Security Buildings, DOKAAE, Mataf Expansion, KAUST “King Abdullah University of Science & Technology”, Makkah Clock, HHR Project “Haramain High Speed Railway Project”, Ministry of Interior, Haram First Ring Road.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

187,995

189,188

1%

Total Assets

216,451

231,861

7%

Current Liabilities

195,793

200,825

3%

Total Liabilities

213,451

228,861

7%

Total Equity

3,000

3,000

-

Income Statement 000's SAR

A2012

A2013

B2013

Revenue

315,755

350,155

308,074

Growth (%) 11%

Gross Profit

58,945

42,068

44,912

-29%

Operating Income

48,909

34,181

35,920

-30%

Net Income Before Zakat & Tax and Minority Interest

48,909

34,181

33,047

-30%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

-

-

Net Income

48,909

34,181

33,047

-30%

08 Companies Overview

FIRST VISION COMPANY FOR RENEWABLE ENERGY SYSTEMS

First Vision Company

‫دة‬

for Renewable Energy Systems A Green Vision

COMPANY OVERVIEW

First Vision Company is a specialized company providing turnkey solutions for utility and commercial scale energy projects. The company provides engineering, design, supply, installation and commissioning for a variety of renewable energy systems related to solar energy. We have established strong relations with international partners with a wide range of expertise in different technologies for utility scale and commercial solar projects across the world, to ensure delivery of the optimum solar solutions and systems for different types of projects, in order to best serve our clients in the Middle East and Saudi Arabia.

FINANCIAL RESULTS Balance Sheet A2012

A2013

274

366

Growth (%) 34%

Total Assets

2,735

2,006

-27%

Current Liabilities

1,980

933

-53%

Total Liabilities

2,057

1,018

-51%

Total Equity

678

989

46%

Income Statement 000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

-

360

21,540

-

Gross Profit

-

44

1,123

-

Operating Income

(131)

(2,854)

630

2079%

Net Income Before Zakat & Tax and Minority Interest

(131)

(2,854)

586

2079%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

228

-

Net Income

(131)

(2,854)

586

2079%

A n n u a l

R e p o r t

2 0 1 3

4 7

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

000's SAR Current Assets

08 Companies Overview

HARAMAIN GATE HARAMAIN GATE For Construction LLC

COMPANY OVERVIEW

Haramain Gate Company “HGC” was established in 2007 and headquartered in Jeddah. HGC is specialized mainly in Civil, concrete & steel structure works in addition to the execution of finishing & E/M works Senior management of HGC focuses on delivering construction, price competitiveness on a timely fashion, with professional integrity & business ethics that constitute the foundation of our operations & is continuing to prosper.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

Shamiyah “Makkah Haram”, KAIA “King Abdul Aziz International Airport”, Strategy Al Mowahad “Ministry of Interior”, KSAU “King Saud Bin Abdul Aziz University for Health Sciences”, National Guard, Security Buildings, Correctional Facilities, Mataf Expansion, Royal Palace Riyadh, Haram First Ring Road.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

126,433

124,526

-2%

Total Assets

180,398

172,381

-4%

Current Liabilities

159,770

148,013

-7%

Total Liabilities

165,398

157,381

-5%

Total Equity

15,000

15,000

-

Income Statement 000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

640,408

815,118

763,133

27%

Gross Profit

45,572

60,758

50,253

33%

Operating Income

28,041

43,346

28,889

55%

Net Income Before Zakat & Tax and Minority Interest

52,238

58,103

26,000

11%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

10,400

-

Net Income

52,238

58,103

26,000

11%

08 Companies Overview

VISION NETWORKS COMPANY COMPANY OVERVIEW

Vision Networks Co. is a leading general construction contractor based in Jeddah and specialized in underground utility and earthwork services. Vision Networks Co. is your complete solution for all phases of underground utility installation and construction, street lighting installation & maintenance, subsurface utility engineering, sewerage installation & rehabilitation, storm water installation and restoration, and cable laying for power & communication networks. Vision Networks Co. offers its services to both public & private sectors and has a professional team that can attend to projects all over the Kingdom of Saudi Arabia and into the Gulf Countries. Vision Networks Co. is a company of the CPC Group and a member of the Binladen Group of Companies.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

85,222

45,488

-47%

Total Assets

104,952

71,109

-32%

Current Liabilities

85,088

76,910

-10%

Total Liabilities

86,261

78,895

-9%

Total Equity

18,691

(7,786)

-142%

000's SAR

A2012

A2013

B2013

Revenue

152,902

130,337

310,504

Growth (%) -15%

Gross Profit

7,133

(20,544)

31,830

-388%

Operating Income

525

(26,428)

20,016

-5134%

Net Income Before Zakat & Tax and Minority Interest

525

(26,428)

16,163

-5134%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

5,221

-

Net Income

525

(26,428)

16,163

-5134%

A n n u a l

R e p o r t

2 0 1 3

4 9

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

Income Statement

08 Companies Overview

MODERN TIMES TECHNICAL SYSTEMS COMPANY OVERVIEW

Since its inception in 1999, Modern Times Technical Systems (MTTS) is dedicated to bringing its clients the latest in technology & services. MTTS is the System Solutions House providing highly specialized solutions to be implemented in clients’ projects in the following areas: • Automation & Security Systems • Environmental Products • Water Systems • Pipes & Drainage Systems • Renewable Energy

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

Jamarat, King Abdul Aziz Endowment Project, KAFD “King Abdullah Financial District”, KSAU “King Saud Bin Abdul Aziz University for Health Sciences”, Princess Noura University, KAUST “King Abdullah University of Science & Technology”, Fairmont Hotel – Makkah.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

96,230

94,094

-2%

Total Assets

99,105

96,766

-2%

Current Liabilities

94,383

49,694

-47%

Total Liabilities

98,346

54,903

-44%

Total Equity

759

41,863

5416%

Income Statement 000's SAR

A2012

A2013

B2013

Revenue

148,980

138,751

179,003

Growth (%) -7%

Gross Profit

40,427

35,079

45,709

-13%

Operating Income

16,416

5,772

23,428

-65%

Net Income Before Zakat & Tax and Minority Interest

17,398

5,660

21,085

-67%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

13,988

-

Net Income

17,398

5,660

21,085

-67%

08 Companies Overview

ORASCOM COMPANY OVERVIEW

King Abdul‐Aziz International Airport development project (KAIA) is a massive development.The development is divided into 3 phases. The first phase includes construction of new terminal complex 400,000 sq.m., replacing existing North and South Terminals, construction of 42 contact gates with air bridges, and construction of new control tower, communications and Navigations System. The development will also include construction of new elevated access roads, interchanges and landside developments, new taxiways, and major new utilities networks (Power, Water,etc).

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS KAIA “King Abdul Aziz International Airport”, SANG “National Guard Housing Project”.

FINANCIAL RESULTS Balance Sheet A2012

A2013

Growth (%)

222,993

597,381

168%

Total Assets

370,995

746,268

101%

Current Liabilities

309,908

557,816

80%

Total Liabilities

312,462

644,517

106%

Total Equity

58,532

101,751

74%

Income Statement 000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

256,555

818,734

1,538,866

219%

Gross Profit

24,279

96,885

184,409

299%

Operating Income

3,517

60,642

146,506

1624%

Net Income Before Zakat & Tax and Minority Interest

3,423

50,981

146,506

1389%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

117,205

-

Net Income

3,423

50,981

146,506

1389%

A n n u a l

R e p o r t

2 0 1 3

5 1

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

000's SAR Current Assets

08 Companies Overview

RENTAL EQUIPMENT COMPANY COMPANY OVERVIEW

Established in 2009 and based in Jeddah, Rental Equipment focuses on rental of construction equipment as well as wholesale and retail trading in motor vehicles, trucks and car equipment. 98% owned by CPC Holding.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS Shamiyah “Makkah Haram”, KAIA “King Abdul Aziz International Airport”, Strategy Al Mowahad “Ministry of Interior” , KSAU “King Saud Bin Abdul Aziz University for Health Sciences”, CMA “Capital Market Authority”, National Guard, Security Buildings, Correctional Facilities, DOKAAE, Mataf Expansion, Kingdom Tower, Princess Noura University, KAUST “King Abdullah University of Science & Technology”, Makkah Clock, HHR Project “Haramain High Speed Railway Project”, Ministry of Interior United Command Center, Royal Palace Riyadh, Haram First Ring Road.

Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

619,039

567,658

-8%

Total Assets

1,963,373

1,872,846

-5%

Current Liabilities

1,380,926

1,056,356

-24%

Total Liabilities

1,388,164

1,065,687

-23%

Total Equity

575,209

807,159

40%

Income Statement 000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

593,746

840,204

638,782

42%

Gross Profit

137,906

272,216

433,829

97%

Operating Income

131,182

254,027

122,065

94%

Net Income Before Zakat & Tax and Minority Interest

132,810

254,350

121,065

92%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

-

-

Net Income

132,810

254,350

121,065

92%

08 Companies Overview

VISION ELECTRO MECHANICAL COMPANY COMPANY OVERVIEW

Established in 2007 in Bahra, Saudi Arabia. Vision specializes in Electro-Mechanical works, and is an advanced limited liability contracting company serving the construction industry. It was established to meet the need of the increased market demand for the Mega projects in Saudi Arabia specialized in providing complete engineering and construction services for key electro-mechanical projects.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

Senegal Airport, Princess Noura University, KAUST “King Abdullah University of Science & Technology”.

FINANCIAL RESULTS Balance Sheet A2012

A2013

Growth (%)

1,532,514

1,447,626

-6%

Total Assets

1,650,134

1,575,770

-5%

Current Liabilities

1,262,278

1,193,614

-5%

Total Liabilities

1,295,836

1,243,616

-4%

Total Equity

354,298

332,154

-6%

Income Statement 000's SAR

A2012

A2013

B2013

Revenue

2,445,434

2,167,980

3,269,743

-11%

Gross Profit

7,163

40,515

59,773

466%

Growth (%)

Operating Income

525

15,228

14,117

2801%

Net Income Before Zakat & Tax and Minority Interest

28,589

19,381

14,117

-32%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

4,800

-

Net Income

28,589

19,381

14,117

-32%

A n n u a l

R e p o r t

2 0 1 3

5 3

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

000's SAR Current Assets

08 Companies Overview

HUTA FOUNDATION WORKS COMPANY COMPANY OVERVIEW

HUTA Foundation is a limited liability company that was established in 2009, and headquartered in Jeddah, Saudi Arabia. HUTA Foundation is considered to be one of the leading foundation construction companies in the Kingdom of Saudi Arabia. HUTA Foundation employs a large number of employees and owns an important fleet of Foundation construction equipment. The diverse fleet of Piling Rigs, Anchoring Machines and other Foundation’s equipment provide the capability to execute all kind of Foundation Works such as: Bored Piles, Ground Water Control, Sheet Pile Wall, Diaphragm and Cut-off Walls, Micro Piles, Ground Anchors, Ground Improvement, Steel Piles, High Pressure Soil Injection, Mix-in-Place Method, Permeation Grouting, Dynamic Compaction.

OVERVIEW OF MAJOR COMPLETED AND ONGOING PROJECTS

KAFHA “King Abdullah Foundation for Humanitarian Activities”, KAIA “King Abdul Aziz International Airport”, Shamiyah “Makkah Haram”, Umm AlQura Ring Road, FlyOver Bridge for Sports City.

FINANCIAL RESULTS Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

183,482

115,688

-37%

Total Assets

285,143

215,490

-24%

Current Liabilities

147,546

74,629

-49%

Total Liabilities

150,254

78,038

-48%

Total Equity

134,889

137,451

2%

Income Statement 000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

460,683

209,893

211,977

-54%

Gross Profit

74,870

38,356

53,893

-49%

Operating Income

56,937

25,622

28,767

-55%

Net Income Before Zakat & Tax and Minority Interest

56,937

25,622

24,452

-55%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

(28,184)

(12,683)

12,104

-55%

Net Income

56,937

25,622

24,452

-55%

09 EGYPT • INDIA • QATAR

CONSTRUCTION SERVICES International Revenue 2012 2013

95,221 140,691

Net Income 2012 2013

23,132 150,191

09 Companies Overview

EGYPT FOCUS ENGINEERING

Focus Engineering Services started in Cairo, Egypt as part of SBG on September 2003. Its role was primarily to review the designs performed by Dar Al Handassah for projects under construction by Saudi Binladen Group in Saudi Arabia. This included Architectural, Structural, MEP, Pre-Cast as well as all specialty issues.

FOCUS MANAGEMENT Focus Management & Development established in January 2010, by CPC Holding for Investment – Egypt. Focus started in seventh category, now we are in the fifth category. Focus will have completed by the end of the current year projects totaling EGP 100,000,000. Scope of works • Project Management and Technical Support for residential, commercial and industrial projects. • Value engineering and cost control. • Construction works for industrial buildings and warehouses. • Construction works for administration and residential buildings. • All types of finishes and decorations. • Infrastructure works, road works and landscaping works. • Mechanical, electrical, water supply and drainage works. • Fire fighting, fire alarm and HVAC.

09 Companies Overview

CPC INDUSTRIAL DEVELOPMENT CPC Egypt for Industrial Development was established in 2007 to introduce and develop the concept of Industrial Parks in Egypt. The total area of the land acquired was1,500,000 m2 in the city of the 6th of October to create the first Industrial Park in Egypt to be fully owned by the private sector. CPC takes pride in providing investors with high quality services based on international standards, which facilitate the establishment of their operation in Egypt. We also offer customizing services to suit our clients’ needs, in addition to a broad spectrum of development capabilities for industrial facilities, and competitive operational costs. On the 9th of March 2008 “CPC Egypt Private Industrial Park” acquired the status of a Private Investment Zone.

CPC EGYPT - CONSOLIDATED Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

205,880

327,386

59%

Total Assets

356,719

501,477

41%

Current Liabilities

169,329

224,891

33%

174,626

251,933

44%

Total Liabilities Total Equity

000's SAR

A2012

A2013

B2013

Growth (%)

Revenue

176,967

259,410

-

47%

Gross Profit

84,631

136,269

-

61%

Operating Income

77,020

123,436

-

60%

Net Income Before Zakat & Tax and Minority Interest

84,045

137,918

-

64%

Zakat & Tax

21,918

37,598

-

72%

Minority Non-controlling interest

21,583

37,676

-

75%

Net Income

62,127

100,319

-

61%

A n n u a l

R e p o r t

2 0 1 3

5 9

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

Income Statement

09 Companies Overview

INDIA PREFERRED ENGINEERING INDIA To cope with the available projects, a sister company has been established recently in Pune, India employing 60 Engineers and draftsmen with the capacity to expand up to 200. The company in Pune is under the name: Preferred Engineering Pvt. Ltd. which is running under supervision of Focus Engineering for quality assurance.

Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

117,364

23,607

-80%

Total Assets

133,529

56,925

-57%

Current Liabilities

95,389

406

-100%

Total Liabilities

96,635

1,198

-99%

Total Equity

36,894

55,727

51%

Income Statement 000's SAR

A2012

A2013

B2013

Revenue

2,386

2,450

-

3%

Gross Profit

676

628

-

-7%

Growth (%)

Operating Income

250

502

-

101%

Net Income Before Zakat & Tax and Minority Interest

250

502

-

101%

Zakat & Tax

-

200

-

-

Minority Non-controlling interest

125

116

-

-

Net Income

250

302

-

21%

09 Companies Overview

QATAR VISION QATAR Advanced Vision Electro-Mechanical Company is a limited liability contracting company established in Qatar since 2011 and serving the construction industry. The company was established to meet the needs of increased market demands for the Mega projects and is specialized in providing complete Engineering and construction services for Electro-Mechanical works. Advanced Vision is one of the elite group of companies under the umbrella of Construction Products Holding Company (CPC). Since establishment, the company achieved a recognized and certified fast growth. Advanced Vision Qatar is currently working on two of the biggest projects in Qatar: Khalifa Avenue and the ISF (Internal Security Forces) Camp. Today, Advanced Vision is one of the leading MEP contractors in Qatar. Our scope of work covers (but not only): Mechanical Works, Electrical Works, Low Current Systems and Infrastructural Works.

Balance Sheet 000's SAR

A2012

A2013

Growth (%)

Current Assets

39,188

78,630

101%

Total Assets

40,703

80,761

98%

Current Liabilities

40,592

80,154

97%

Total Liabilities

40,860

80,716

98%

Total Equity

(153)

43

-128%

Income Statement A2012

A2013

B2013

Growth (%)

Revenue

10,538

65,218

5,532

519%

Gross Profit

-

1,486

4,557

-

Operating Income

58

(3,418)

-

-5993%

Net Income Before Zakat & Tax and Minority Interest

58

(3,418)

-

-5993%

Zakat & Tax

-

-

-

-

Minority Non-controlling interest

-

-

-

-

Net Income

58

(3,418)

-

-5993%

A n n u a l

R e p o r t

2 0 1 3

6 1

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

000's SAR

10

SUSTAINABLE DEVELOPMENT

10 S u s t a i n a bl e D eve l o p m e n t

Disclosure on Management Approach: At CPC we have long realized that our business has an impact on the economy, society, and the environment. Now we believe that the time is right to start a dialogue on how we can incorporate sustainability concepts into the core of our business. Therefore, we have decided to adopt a sustainability agenda across our business not only to meet our project necessities but also to be our engine for growth as a strong business strategy. Focusing on sustainability in construction will help us make our brand stronger and enhance our risk management approach. Our commitment to sustainability highlights CPC’s objective of being the number one choice to employees and partners with whom we want to share our personal values and growth. As a market leader in our industry, specifically in a developing country where construction companies are key players in the market, CPC recognizes the importance of our role in sustainability and in creating solutions for pressing development challenges facing our community. We take this responsibility on with pride and try and reflect that in the way we manage our business; the areas we focus our investments in; the approach we take to developing local talents’ and of course the way we support our community and protect the environment.

SUSTAINABLE DEVELOPMENT/ CSR Strengthening our Community: A Sustainability Development Report was published in 2013 to reflect the commitment of CPC and how it became increasingly more engaged in strategic and measurable CSR, focusing on key issues of significance to our stakeholders and of relevance to our business. Based on our current market outreach, we have to date focused our activities around governance, talent development, job creation, and community service, with consideration to raising environmental awareness. We believe that we are at the beginning of the journey and we have yet to learn more and surely give more. We have impacted the lives of millions of people by creating more than 7,000 jobs for local talents through our subsidiaries. Yet, we have faced so many challenges during the last 4 years and we aim to address those challenges with a renewed sense of commitment that we can only do with your encouragement and support to Education, Health, Youth Welfare and Environment.

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

6 5

10

YH SUSTAINABLE DEVELOPMENT

S

YOUTH

WELFARE

EDUCATION

ENVIRONMENT E NVIRONMENT

HEALTH H EALTH

S u s t a i n a bl e D eve l o p m e n t

D

As part of CPC’s strategy in its continuous dedication towards its community, and as a reflection of being awarded a “B” classification from the Global Reporting Initiative (GRI), CPC focused on five fundamental values by providing support to the following organizations. Education: • Sponsoring the fifth Winter Enrichment Program at KAUST. • Organizing annual summer training programs for female students at CPC facilities. • Establishing a scholarship fund with Effat University. • Sponsoring environmental research for female students at Dar Alhekma University. Health: • United Nations World Food Program. • Bill & Melinda Gates Foundation (SHEFA Fund). • The Neonate Fund. • Help Center. Youth Welfare: • Support of the first female delegation to United Nations Conference on Sustainable Development (RIO + 20). • Human Resources Development Fund. • Saudi Falcons Racing Team. • Middle East Motorsports Management. Environment: • Financial support to “Our Water… Our Life” initiative. • Establishment of a Green Vision Company specialized in renewable energy systems. • Sponsorship of Green Building awareness. Sustainable Development: • Industrial Partner of the World Economic Forum. • Founding member of Pearl Initiative (Not for Profit Organization). • Reporting CSR activities to the Global Reporting Initiative. • Participant of the United Nation Global Compact.

SUPPORT TOWARDS SUSTAINABLE DEVELOPMENT

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

CPC Corporate Social Responsibility believes “We must invest in the communities in which we work in”…

A n n u a l

R e p o r t

2 0 1 3

6 7

11

Financial Results • Financial Statements • Zakat & Statutory Payments • Dividend Policy

11 Financial Results

Income Statement (Consolidated)

Construction Products Holding Company Income Statement 2009

2010

2011

2012

2013

Revenue

5,204,689

7,939,797

9,589,656

11,335,254

11,786,052

Cost of Sales

4,427,233

6,670,580

8,089,961

9,952,793

10,404,930

Gross Profit

777,456

1,269,217

1,499,695

1,382,461

1,381,122

Operating Income

438,095

794,814

797,745

825,222

757,496

Net Income

452,142

562,897

760,061

775,294

811,975

000's SAR

Financial statements Balance Sheet (Consolidated)

Construction Products Holding Company Balance Sheet 2009

2010

2011

2012

2013

Current Assets

2,809,538

3,168,726

5,565,972

6,745,544

7,278,169

Total Assets

6,173,564

7,493,919

9,860,224

11,416,067

11,688,956

Current Liabilities

2,722,589

2,876,682

5,462,162

6,941,317

7,400,587

Total Liabilities

4,854,342

5,467,622

7,257,338

8,492,325

8,277,191

Total Equity

1,319,222

2,026,297

2,602,906

2,923,742

3,411,765

000's SAR

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

7 1

11 Financial Results

Income Statement (Consolidated)

Construction Products Holding Company Detailed Income Statement Growth

2012

2013

Contracts revenue

8,668,513

6,824,189

-21%

Sales

1,987,510

3,981,289

100% 44%

000's SAR

Service revenue

679,231

980,574

Total Revenue

11,335,254

11,786,052

4%

Contracts cost

(7,840,014)

(6,075,621)

-23%

Cost of Sales

(1,615,914)

(3,694,764)

129%

Service cost

(496,865)

(634,545)

28%

(9,952,793)

(10,404,930)

5%

1,382,461

1,381,122

0%

Share of income of associates

32,823

22,655

-31%

Share of results of a joint venture

14,127

26,030

84%

Total Cost of Goods Sold Gross Profit

Selling and distribution expenses

(51,712)

(54,741)

6%

General and administration expenses

(435,757)

(470,722)

8%

Board Fee

(116,720)

(126,856)

9%

0

(19,993)

-

Impairment losses

Operating Profit

825,222

757,496

-8%

Finance cost

(50,557)

(82,859)

64%

68,720

173,847

153%

Other income / loss Net income from continuing operations

843,385

848,484

1%

Net loss from discontinuing operations

(53,118)

(11,362)

-79%

Net Income before zakat

790,267

837,122

6%

Zakat (for display)

(52,220)

(64,267)

23%

Income tax and deferred tax

(14,973)

(25,146)

68%

Net Income

775,294

811,975

5%

Financial statements Balance Sheet (Consolidated)

Construction Products Holding Company Detailed Balance Sheet

000's SAR Cash and cash equivalents Receivables and others Unbilled revenue Inventories Assets classified as held for sale

Total Current Assets Retentions receivable Investments (associates and financial instruments) Property, plant and equipment Deferred Charges and other assests Goodwill

2012

2013

Growth

797,546

780,036

-2%

2,929,916

3,939,324

34%

868,071

238,114

-73%

2,076,940

2,238,727

8%

0

56,474

-

6,745,544

7,278,169

8%

91,728

40,133

-56% -47%

481,049

254,900

4,060,496

4,081,912

1%

13,331

9,923

-26%

23,919

23,919

0%

Total Non-Current Assets

4,670,523

4,410,787

-6%

Total Assets

11,416,067

11,688,956

2%

782,202

1,288,396

65%

Due to Banks and short term debts Current portion of long term debt

307,153

308,629

0%

Short-term payables and others

5,135,779

5,224,970

2%

6,392

-10%

625,739

466,124

-26%

Zakat and tax payable

83,307

106,075

27%

6,941,317

7,400,587

7%

Long Term Debt

691,944

568,386

-18%

Long-term payables and others

274,335

35,031

-87%

End-of-service indemnities

230,629

273,186

18%

Obligation under capital lease -current

Total Current Liabilities

354,100

0

-100%

1,551,008

876,604

-43%

Capital

112,453

1,700,000

1412%

Share premium

307,366

0

-100%

Statutory reserve

64,910

67,747

4%

Retained earnings

1,665,830

1,089,643

-35%

Reserves and others

(88,407)

(202,589)

129%

Shareholder's current account (joint stock company)

Total Non-Current Liabilities

778,967

741,884

-5%

Total Equity

2,923,742

3,411,765

17%

Total Liabilities and Equity

11,416,067

11,688,956

2%

Non-controlling interests

A n n u a l

R e p o r t

2 0 1 3

7 3

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

7,137

Dividends payables

11 Financial Results

Revenue by Business Line

Construction Products Holding Company Revenue by Business Line 2012

000's SAR

Manufacturing

Revenue

KSA

2013 Net Income

Revenue

5,010,444

491,970

5,868,159

358,612

113,840

(76,240)

88,902

(43,474)

5,124,284

415,730

5,957,061

315,138

6,115,750

509,340

5,688,299

528,108

95,220

23,132

140,691

12,035

Total

6,210,970

532,472

5,828,990

540,143

Grand Total

11,335,254

948,202

11,786,052

855,281

International

Total

Net Income

Construction Services KSA International

BUILDING MATERIAL MANUFACTURING - Saudi Arabia Revenue

Net Income

2012

5,465,810

2013

6,147,605

2012

491,967

2013

358,982

BUILDING MATERIAL MANUFACTURING - International Revenue 2012 2013

Net Income 2012

113,839

(76,240)

2013

88,902

(43,474)

CONSTRUCTION SERVICES - Saudi Arabia Revenue

6,502,948

2013

5,855,663

2012

509,340

2013

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

2012

Net Income

528,108

CONSTRUCTION SERVICES - International Revenue 2012 2013

A n n u a l

95,221 140,691

R e p o r t

2 0 1 3

Net Income 2012 2013

23,132 150,191

7 5

11 Financial Results

Zakat & statutory payments Zakat and Statutory Payments CPC Holding and its local Subsidiaries are subject to the regulations of the Directorate of Zakat and Income Tax (“DZIT”) in the Kingdom of Saudi Arabia. CPC Holding foreign Subsidiaries are subject to Zakat and/or Income Tax according to the governing rules in their respective countries. Zakat and Income Tax is provided on our accrual basis. The Zakat charge is calculated on the Zakat and Income Tax base of each individual Subsidiary. Any difference in the estimate is computed when the final assessment is approved by the Directorate at which time the provision is cleared. No adjustments are made in the financial statements to account for any variance since Zakat and Income Tax are the liability of the Shareholders.

Corporate Governance Corporate Governance is a mechanism to control and direct all the Company’s activities to protect the rights of the Shareholders and Stakeholders (such as Employees, Customers and Suppliers).

Corporate Governance is the System by which Companies are directed and controlled. Board of Directors are responsible for the governance of the Subsidiaries through the three Sub-Committees (Executive Committee, Audit Committee and Remuneration and Nomination Committee) which were formed to monitor the implementation of the Corporate Governance in all Groups’ operations. The rules and regulations of CPC Holding Corporate Governance are in line with the rules and regulations of the Capital Market Authority in the Kingdom. Such governance will be constantly reviewed to ensure its suitability with the business operation and reflect new changes and developments set by the Capital Market Authority in the Kingdom along with the Policies and Procedures set by the Company’s Management.

A n n u a l

R e p o r t

2 0 1 3

7 7

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

Governance constitute a coherent set of procedures and organizational arrangements that govern the relation with the Shareholders, Board of Directors and Executive Management to achieve the objectives of long-term strategy to meet the needs of Shareholders, Stakeholders and regulators through the integrating, credibility and responsibility performance by the Companies Departments.

11 Financial Results

Dividend Policy As per Article (46) of CPC Holding Bylaws sets out Policy for Net Profit Distribution: Annual Net Profits of the Company will be distributed after deduction of all general expenses and other costs as follows: 1. 10% of the net profit will be set aside as Statutory Reserve and it is up to the Ordinary General Assembly to stop this reserve when it reaches 50% of the Share Capital. 2. Right to assign a share of the net profit not less than 5% of the nominal value of the share as preferred shares after setting aside the Statutory Reserve and prior to any Dividend distribution of Company annual Net Profit . 3. Ordinary General Assembly has the right according to the Company Board of Directors recommendation to allocate an agreed upon percentage from the Company’s Net Profit as an agreed upon Reserve and allocate it for certain or several purposes. 4. From the remaining balance a 1st payment to the Shareholders should be executed equivalent to (5%) from then paid up capital. 5. Allocate from the remaining balance a percentage not to exceed 10% as Board of Directors fee/ remuneration and not to exceed in all cases 5% of the Company Net Profit and not to exceed the amounts allowed by the governing laws. 6. The remaining balance after all above allocations to be distributed to Shareholders as additional dividend (share of profits).

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

DIVIDEND DISTRIBUTION FOR 2013 (SR'000) CPC HOLDING net profit before bod fee and remuneration less/ statutory reserve

877,392 67,747 809,645

less/ dividend (2013: nil) less/ bod fee and remuneration

117,602 692,043

less/ additional dividend (2013: nil) less/ zakat and income tax

82,318

balance net profit transfer to retained earnings

609,725

A n n u a l

R e p o r t

2 0 1 3

7 9

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

8 1

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

8 3

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

8 5

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

8 7

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

8 9

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

9 1

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

9 3

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

9 5

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

9 7

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

9 9

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

1 0 1

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

1 0 3

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

1 0 5

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

1 0 7

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

1 0 9

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

1 1 1

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

1 1 3

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

1 1 5

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

1 1 7

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

1 1 9

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

1 2 1

12 Independent Reports

Independent auditors' report

CONSTRUCTION PRODUCTS HOLDING COMPANY (CPC)

A n n u a l

R e p o r t

2 0 1 3

1 2 3

Contact information

13 Contact Information

Postal address P.O.Box 11669

Jeddah (21463) Kingdom of Saudi Arabia Contact numbers

Toll Free Number: 8001250007 +966 12 6579460 +966 12 6579412 E-mail

[email protected] Web address

http://www.cpcholding.com

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