Addendum Announcement from Umm Al-Qura Cement Co. in regards to the occurrence of a major technical failure in one of the components of the cement mill No. (1)

Umm Al-Qura Cement Company announces that based on the technical report of the plant management and after studying many options for repair (maintenance), the company’s management decided that the best option that is in the interest of the company and its shareholders is to suffice to replace that damaged unit with a new one that was previously purchased from the manufacturer as a strategic spare part instead of repairing its damaged components.

It is expected that the process of supplying and installing the new unit will be completed by the end of October 2023 AD, and God’s willing, the mill will be restored to work normally as before the failure occurred.

2. Cancellation of the previously formed provision for maintenance with the amount of (2,515,000) Saudi riyals.

3. The purchase value of the new unit that was previously purchased from the manufacturer at a value of (1,433,000) Euros, in addition to shipping and installation costs.

4. As a result of the expected increase in the number of days by (31) days to complete the process of supplying and installing the new unit by the end of October 2023, it is expected that the total net profit will decrease during the year 2023 by an additional value of (1.2) million Saudi riyals over what was previously announced.