Zamil Process Equipment Co. recently achieved a milestone in nuclear components manufacturing with the completion of a Reactor Pool Tank, which will serve as an outer enclosure for the first nuclear research reactor in the Kingdom, to be installed at the King Abdulaziz City for Science and Technology (KACST) in Riyadh, Saudi Arabia.

This unprecedented achievement marks the first time a large national company has manufactured a nuclear component that meets the category of nuclear safety according to international standards, proving Zamil Steel’s ability to meet the requirements of nuclear power production projects in keeping with the Kingdom’s plans for future development.

Designed and manufactured per ASME Section III, Div. 1, Subsection ND, Class 3 Components requirements according to a basic design carried out by Investigacion Aplicada (INVAP) from Argentina, the tank was manufactured in strict compliance with nuclear equipment manufacturing standards throughout all phases, from materials procurement to shipment. The vessel was built inside a dust-free enclosure in order to meet the stringent guidelines for nuclear components fabrication.

Each activity was monitored and tracked by detailed shop travelers using a sequence of fabrication steps at the monitoring, inspection and testing stages. All inspections, nondestructive examinations and hydrostatic tests were witnessed by representatives from both INVAP and KACST.

The successful fabrication of the reactor pool tank provided a valuable experience that has enhanced the company’s existing capabilities, preparing it to undertake more extensive manufacturing of a range of critical components that will be needed for the upcoming implementation of nuclear energy programs in Saudi Arabia.
The Board of Directors of Zamil Industrial is pleased to invite all shareholders to attend its general assembly to convene in an ordinary session on Sunday, 31 December 2017, at the Zamil Air Conditioners Auditorium in Dammam’s First Industrial City at 6:30 pm (location: https://goo.gl/maps/1xeBXFCxVV82). The following items on its agenda will be reviewed and discussed:

1. Vote on the Updated Audit Committee Charter (attached).
2. Vote on the Updated Nomination & Remuneration Charter (attached).
3. Vote on the Updated Board Membership Policy (attached).
4. Vote on the Board, Committees, and Executive Management Remuneration Policy (attached).

The quorum for this meeting is for shareholders representing at least 25 percent of the company's paid-up capital. If such quorum is not attained, a second meeting can be held after one hour from the time the first meeting was supposed to convene. In all cases, the second meeting shall be deemed valid irrespective of the number of shares represented therein. Each shareholder registered with the company register at the Securities Depository Center (Depository Center) shall have the right to attend the general assembly meeting at the end of the trading session preceding the general assembly meeting.

Shareholders who cannot attend the meeting may appoint a proxy, while taking into consideration that the proxy must not be a member of the board or an employee of the company. Copies of the proxies should be submitted to the company with a copy of a valid ID at least two days prior to the meeting date by mail (P.O. Box 14441, Dammam 31424). The proxy must be attested by the Chamber of Commerce & Industry if the shareholder is a member of the same, a company, or legal entity; or a licensed bank or an Authorized Person in the Kingdom, provided that the authorizing shareholder holds an account with the attesting bank or Authorized Person; or a Notary Public or Person licensed for attesting. The original proxy must be submitted on the day of the meeting. The proxy will be valid for another meeting if this meeting’s quorum is not met.

The company would also like to inform its shareholders that electronic voting will be available to enable them to vote on the agenda items of this meeting. Shareholders who are registered in the Tadawulaty services portal can effectively vote online from 10 am on Wednesday, 27/12/2017 until 4 pm on Sunday, 31/12/2017. The company invites its shareholders and urges them to actively participate and vote online by visiting the Tadawulaty web page at www.edaa.com.sa, a free service available to all shareholders.

Shareholders are welcome to send their inquiries by directly contacting our Corporate Communications & Investor Relations department by phone (+966138108180) or by email (investors@zamilindustrial.com).

Attached documents: Zamil Industrial AGM Files | Proxy Letter
Zamil Industrial Corporate Loss Prevention Department (CLPD) successfully passed the external certification audit for Integrated Management System, unifying the three standards into one coherent system – ISO 9001:2015; ISO 14001:2015; OHSAS 18001:2007. The third-party auditor from ABS performed the four-day rigorous assessment and evaluation of CLPD’s management system.

The scope of the audit involved the management of health, safety, environment, and loss prevention services to Zamil Industrial subsidiaries. No non-conformances were identified during the audit, thus affirming the compliance to the requirements of the standards, and acknowledging the effectiveness of the existing management system of CLPD.

This achievement is another attestation to CLPD’s genuine commitment to deliver its objectives, sustain development initiatives, and operate within the core values of Zamil Industrial.
Zamil Higher Institute for Industrial Training (ZHIIT) has recently signed a partnership agreement with TPC Training Systems, a leading American training systems and services company headquartered near Chicago, Illinois.

The new partnership will place the institute in a leading position compared with other training companies and institutions by providing more technical and vocational training services in various fields of technology. With the comprehensive training solutions and technologies that TPC Training Systems provides, the partnership will enhance the institute’s existing locally and internationally accredited training curriculums and facilities.

Dr. Mohamed Abdulla Sharif, director of the institute, stated that TPC’s innovative and comprehensive solutions address the constant challenges and requirements of maintenance and operation technicians across different manufacturing and service industries.

He added that an exhibition will be held at the institute in Dammam on December 5-6, 2017, featuring the expanded total training solutions available through the combination of training curriculums and facilities at both ZHIIT and TPC Training Systems. The exhibition will feature a virtual reality simulation crane and rigging operator training modules, as well as blended learning solutions to support all aspects of the technician training cycle.
Zamil Industrial Investment Company (Zamil Industrial) was awarded the Bronze category of “Mowaamah Certification” for the year 2018, in recognition of its efforts to provide a supportive and motivational work environment for people with disabilities.

The “Mowaamah Certification”, launched by the Ministry of Labor and Social Development in Saudi Arabia, adopts best practices and standards while creating a work environment that comprehensively supports the special needs of workers with disabilities.

The system, which is part of the "Tawafuq" program to facilitate the employment of people with disabilities, aims to support and empower these individuals as effective members of the workforce in the private sector. The program increases employers and companies’ awareness of the benefits of hiring the disabled and supports them in implementing industry best practices to adapt work environments with appropriate modifications for people with disabilities, while increasing their employment opportunities.

To obtain the “Mowaamah Certification”, organizations must undergo a comprehensive review and audit of their work environment by a ministry-approved firm. The audit process determines the compatibility of the specific job and its functions with the type and degree of employee disability, and details the requirements of the work environment and the facilitative services needed to meet the guidelines of the executive regulations of the Saudi Labor and Workmen Law.

Zamil Industrial continually seeks to adopt and implement best practices and national and international standards, while developing a work environment that is more inclusive and supportive of people with disabilities, which in turn leads to their increased participation in the labor market.
Zamil Industrial Investment Company (Zamil Industrial) has announced its consolidated interim financial results for the period ending 30 September 2017.

Revenues for the third quarter of 2017 amounted to SAR 1,022.9 million (USD 272.8 million), compared with SAR 1,099.2 million (USD 293.1 million) for the same period in 2016, a decrease of 6.9 percent.

Gross profits for the third quarter were SAR 200.1 million (USD 53.4 million), compared with gross profits of SAR 241.8 million (USD 64.5 million) for the same period in 2016, a decrease of 17.2 percent.

Operating profits during the third quarter were SAR 41.1 million (USD 11 million), compared with SAR 73.9 million (USD 19.7 million) for the same period in 2016, a decrease of 44.4 percent.

Net profits for the third quarter of 2017, after deduction of Zakat and tax, were SAR 21.9 million (USD 5.8 million), compared with SAR 41.1 million (USD 11 million) during the same period in 2016, a decrease of 46.7 percent, and compared with SAR 36.4 million (USD 9.7 million) posted in the previous quarter (Q2 2017), a drop of 39.8 percent.

Total comprehensive income for the third quarter of 2017 amounted to SAR 21.5 million (USD 5.7 million), compared with SAR 41.7 million (USD 11.1 million) in the corresponding quarter of last year, a decrease of 48.3 percent, and compared with SAR 37.2 million (USD 9.9 million) posted in the previous quarter, a drop of 42.1 percent.

Revenues for the nine-month period ended 30 September 2017 amounted to SAR 3,146.4 million (USD 839 million), compared with SAR 3,730.7 million (USD 994.8 million) for the same period in 2016, a decrease of 15.6 percent.

Gross profits for the nine months were SAR 648.9 million (USD 173 million), compared with gross profits of SAR 771.2 million (USD 205.6 million) for the same period in 2016, a decrease of 15.9 percent.

Operating profits for the nine months were SAR 170.5 million (USD 45.5 million), compared with SAR 252.1 million (USD 67.2 million) for the same period in 2016, a decrease of 32.3 percent.

Net profits for the nine-month period ended 30 September 2017, after deduction of Zakat and tax, were SAR 100.2 million (USD 26.7 million), compared with SAR 145.3 million (USD 38.7 million), a decrease of 31.1 percent over the same period in 2016.

Total comprehensive income for the nine months amounted to SAR 105.8 million (USD 28.2 million), compared with SAR 139.4 million (USD 37.2 million) in the corresponding period of last year, a decrease of 24.1 percent.

Earnings per share for the nine-month period ended 30 September 2017 were SAR 1.67, compared with SAR 2.42 during the same period in 2016.

Equity attributable to shareholders (after the elimination of Minority Interest) as of 30 September 2017 amounted to SAR 1,666.4 million (USD 444.4 million), compared with SAR 1,696.7 million (USD 452.4) as of 30 September 2016, a decrease of 1.8 percent.

The decrease in net profits in the third quarter of 2017, when compared with the same period last year, was due to lower sales in the Steel and Insulation sectors and lower operating margins in the air-conditioning (AC), Steel and Insulation sectors attributable to project delays as a result of a general slowdown in the contracting business ecosystem.

The decrease in net profits in the nine-month period ending 30 September 2017, when compared with the same period last year, was due to lower sales and operating margins in the AC, Steel and Insulation sectors attributable to project delays as a result of a general slowdown in the contracting business ecosystem. The reduction in net profits is also attributed to the increase in financial charges.

The decrease in net profits in the third quarter, when compared with the second quarter of this year, was due to lower sales and operating margins in the AC, Steel and Insulation sectors. The decrease is also attributed to reduction in income from associate investments and increase in financial charges.

Comparative figures have been restated and reclassified based on IFRS transition effective 1 January 2016. The restated numbers are available in note 15 (first-time adoption of IFRS) in the interim condensed consolidated financial statements for the period ending 30 September 2017.
Zamil Industrial Investment Co. (Zamil Industrial) has received the "Best Use of K2 SmartForms Award" in the recent K2 Business Process Automation Awards. This honor recognizes outstanding customer achievements across all the Middle East.

K2 SmartForms provides customers a faster, easier way to create forms for business applications. Reusable components can be dragged and dropped into place, and then the form can be tied to workflow.

The K2 team was impressed with Zamil Industrial’s remarkably high level of utilization of K2 SmartForms through the company’s replacement of a legacy workflow system. The effective use and early adoption of K2 SmartForms has enabled it to become a core product in increasing employee productivity and formed a solid foundation to support future growth.

The award honors Zamil Industrial efforts to guide the implementation of process automation throughout the company, to the benefit of its business, its employees and its valued customers. The company will continue its dedication to making the most of the latest technological solutions.
The Research and Development Center at Zamil Central Air Conditioners Company (ZCA) was recently evaluated and approved by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) for product certification testing at its 50 and 600 TR testing facilities.

The laboratories were approved to test Water Chilling Packages using the vapor compression cycle (air-cooled) in accordance with current AHRI Standards 550/590 and 551/591 and the Certification Operations Manual.

The tests were conducted at the Dammam Second Industrial Plant facility under the supervision of Justin Prosser of AHRI USA, accompanied by third-party inspectors from CETIAT France. Meetings, testing and results evaluation took place within the period July 18 – 27, 2017. The laboratories are accessible to engineers and integral to product development and the creation of customized solutions for a broad range of clients.

Mohammed Khawaldeh, director of Unitary and Applied Product units at Zamil, commented, “We are excited to announce yet another milestone for the newly built research and development center. The company views this approval as another step toward positioning Zamil Central Air Conditioners as an undisputed market leader that not only supplies high-quality products but also offers clients access to its internationally certified testing facilities.”

In addition, the laboratories at the new ZCA Research and Development Center are equipped to perform a wide range of tests under many recognized national and international standards, including AHRI 210/240, AHRI 410, AHRI 310/380, AHRI 430, AHRI 440, AHRI 340/360, ASHRAE 116, ASHRAE 37, ASHRAE 41.1, AHRI 365, ISO 5151, SASO 385, SASO 2682, UL 1995, and others.

“This achievement would not be possible without the combined efforts of ZCA Chiller Team and Lab Team who worked tirelessly day and night leading to the successful audit. The company looks forward to the next successful series of testing accreditations, positive proof of Zamil’s unrivaled technical competence as an industry leader and complete building solutions provider in Saudi Arabia and the MENA region,” Khawaldeh added.
Zamil Projects, a business unit of Zamil Air Conditioning and Refrigeration Services Company, has been awarded a new contract worth SAR 65 million (USD 17.3 million) from China’s Electric Power Construction Corporation (SEPCO III) to supply and install various HVAC systems and equipment at the Saline Water Conversion Corporation (SWCC) Power Plant Phase-III project in the western region of Saudi Arabia.

Under the contract with SEPCO III, Zamil Projects will supply more than 1,600 of HVAC systems and equipment, including centrifugal chillers, chilled water systems, central split units, and Building Management Systems (BMS) control systems. Zamil Projects also will perform all essential HVAC system engineering, supply, installation, testing, and commissioning services for various buildings at the power plant project in Yanbu.

The power plant, being built on the Red Sea coast, will cost SAR 5.16 billion (USD 1.37 billion) and have a power generation capacity of 2,500 MW, in addition to producing 550,000 cubic meters of desalinated water a day to supply the holy city of Medina.

Competition for this contract was extremely tight, and only companies that previously demonstrated capability and commitment to handle the scope of work and stringent quality guidelines and time limits were considered for the project. Zamil Projects is proud to emerge as the leader and is dedicated to the timely completion of this project and to exceeding the expectations of the client.

In the past, Zamil Projects and SEPCO cooperated on the 3,000-MW Ras Al Khair power plant project, an undertaking that challenged the company to provide specialized, top-quality products and services on a stringent timetable. Zamil Projects rose to the challenge, validating the trust of our clients and leading to our participation in this prestigious project.

Zamil Air Conditioning and Refrigeration Services is a key product and service provider in Saudi Arabia’s industrial expansion. Since the company specializes in creating customized solutions for all types of complex operations, it is uniquely positioned to meet the needs of clients in a timely and cost-effective manner.
Further to the announcement on Tadawul dated 2 August 2017 with regard to the Board decision to distribute cash dividends for the first half of 2017, the company would like to notify the public that the distribution date will be on 21 August 2017 by means of transfer to shareholders’ accounts.

Dividends eligibility will be for shareholders holding shares as of the close of trading on Monday, 7 August 2017, registered in the company share registry at the Depository Center (SDC) at the end of the second trading day following the due date on Wednesday, 9 August 2017. Transfer of dividends will be through the National Commercial Bank.
Zamil Steel Pre-Engineered Buildings Company was recently awarded a contract valued at SAR 25 million (USD 6.7 million) by the Kuwait Company for Process Plant Construction and Contracting K.S.C. for Agility – Kuwait’s four air-conditioned warehouses project.

The scope of the contract includes the supply of more than 4,600 metric tons of pre-engineered steel buildings and more than 100,000 square meters of sandwich panels, which will be used to construct the four air-conditioned warehouses in Mina Abdullah, Kuwait.

This challenging project includes 74 meter-wide buildings requiring specific features such as jack beams, dock levelers, mezzanines and 4.3 meter cantilevered platforms.

The project’s several component parts must be completed within a very tight time frame and demand an exceptional degree of attention to detail and coordination with selected sub-contractors for civil and electro-mechanical works.

“At Zamil Pre-Engineered Buildings Co., we will depend upon the vast production capacity of our plant and the unmatched caliber of our engineering team to deliver this project as per end user/customer expectations in terms of both quality and time,” said Mohammed Al Sahib, GM of Zamil Steel Building Products Group GCC.
The Board of Directors of Zamil Industrial Investment Co. has approved on Tuesday, 1 August 2017 the distribution of dividend to the shareholders for the First Half of 2017 as follows:

  1. Total amount of distribution of dividend SAR 60,000,000.
  2. Total eligible shares of 60,000,000.
  3. Divided per share SAR 1.00.
  4. Divided represent 10% of the Face value.
  5. First half 2017 dividends eligibility will be for shareholders holding shares as of Monday, 7 August 2017, registered in the company share registry at the Depository Center (SDC) at the end of the second trading day following the due date on Wednesday, 9 August 2017.
  6. Details of dividend distribution date: will be announced at a later stage.
Zamil Industrial Investment Company (Zamil Industrial) has announced its consolidated interim financial results for the period ending 30 June 2017.

Revenues for the second quarter of 2017 amounted to SAR 1,125.4 million (USD 300.1 million), compared with SAR 1,408.3 million (USD 375.5 million) for the same period in 2016, a decrease of 20.1 percent.

Gross profits for the second quarter were SAR 267.4 million (USD 71.3 million), compared with gross profits of SAR 308.9 million (USD 82.4 million) for the same period in 2016, a decrease of 13.4 percent.

Operating profits during the second quarter were SAR 65.2 million (USD 17.4 million), compared with SAR 99.5 million (USD 26.5 million) for the same period in 2016, a decrease of 34.5 percent.

Net profits for the second quarter of 2017, after deduction of Zakat and tax, were SAR 36.5 million (USD 9.7 million), compared with SAR 51.2 million (USD 13.6 million) during the same period in 2016, a decrease of 28.8 percent, and compared with SAR 41.8 million (USD 11.1 million) posted in the previous quarter (Q1 2017), a drop of 12.7 percent.

Total comprehensive income for the second quarter of 2017 amounted to SAR 37.2 million (USD 9.9 million), compared with SAR 49.9 million (USD 13.3 million) in the corresponding quarter of last year, a decrease of 25.5 percent, and compared with SAR 47 million (USD 12.5 million) in the previous quarter, a drop of 20.8 percent.

Revenues for the six-month period ended 30 June 2017 amounted to SAR 2,123.4 million (USD 566.2 million), compared with SAR 2,631.5 million (USD 701.7 million) for the same period in 2016, a decrease of 19.3 percent.

Gross profits for the six months were SAR 499.1 million (USD 133.1 million), compared with gross profits of SAR 579.2 million (USD 154.5 million) for the same period in 2016, a decrease of 13.8 percent.

Operating profits for the six months were SAR 129.5 million (USD 34.5 million), compared with SAR 178.2 million (USD 47.5 million) for the same period in 2016, a decrease of 27.3 percent.

Net profits for the six-month period ended 30 June 2017, after deduction of Zakat and tax, were SAR 78.2 million (USD 20.8 million), compared with SAR 104.1 million (USD 27.8 million), a decrease of 24.9 percent over the same period in 2016.

Total comprehensive income for the six months amounted to SAR 84.2 million (USD 22.4 million), compared with SAR 97.7 million (USD 26.1 million) in the corresponding period of last year, a decrease of 13.8 percent.

Earnings per share for the six-month period ended 30 June 2017 were SAR 1.30, compared with SAR 1.74 during the same period in 2016.

Equity attributable to shareholders (after the elimination of Minority Interest) as of 30 June 2017 amounted to SAR 1,704.8 million (USD 454.6 million), compared with SAR 1,680.6 million (USD 448.2) as of 30 June 2016, an increase of 1.4 percent.

The decrease in net income in the second quarter of 2017, when compared with the same period last year, was due to lower sales and operating margins in the AC, Steel and Insulation sectors attributable to project delays in Saudi Arabia as a result of a general slowdown in the contracting business ecosystem.

The decrease in net income in the six-month period ending 30 June 2017, when compared with the same period last year, was due to lower sales and operating margins in the AC, Steel and Insulation sectors attributable to project delays in Saudi Arabia as a result of a general slowdown in the contracting business ecosystem. The reduction in net income is also attributed to the increase in financial charges and reduction in income from associate investments.

The decrease in net income in the second quarter, when compared with the first quarter of this year, was due to lower sales in the Steel and Insulation sectors as well as lower margins in the AC and Insulation sectors. The decrease is also attributed to reduction in income from associate investments and other income.

Comparative figures have been restated based on IFRS transition effective 1 January 2016. The restated numbers are available in note 14 (first-time adoption of IFRS) in the interim condensed consolidated financial statements for the period ending 30 June 2017.
Zamil Steel Construction Company (ZSCC) was recently awarded a contract by Nalco Champion, valued at SAR 16.8 million (USD 4.5 million), for the Nalco Champion Consolidation Project in the eastern region of Saudi Arabia.

According to the contract, ZSCC will design, supply and erect a secondary supporting structure, composed of pre-engineered steel structural elements, as part of the upgrade of Nalco’s existing manufacturing facility in Dammam Second Industrial City. In addition, ZSCC will carry out demolition, relocation and installation works that include process piping, blender tanks, bulk storage tanks, process skids and related electrical and instrumentation works. These works also include engineering, procurement and construction services needed to complete civil works, external developments, and mechanical, electrical, and plumbing (MEP) works at the project site.

The Nalco Champion expansion project is a fast-track, multicomponent undertaking with complex safety and security requirements and a challenging time frame that will require an extraordinary level of attention to detail. Care must also be taken to exert zero impact on regular plant production during the facilities upgrade project. With the new expansion, the existing footprint of the Nalco Champion plant will increase to 19,000 square meters.

“Our company was chosen for this project for two important reasons: our capacity to furnish materials that meet the stringent quality standards of Nalco Champion and our ability to manage the project and consolidation in a timely fashion, with minimal disturbance to active business operations,” said Mohammed Al Sahib, Director of ZSCC. “We aim to customize our approach and deliver an upgrade consistent with each of the needs expressed by the client, demonstrating our unique offerings and abilities as applied to this type of undertaking.”

This project enables ZSCC to venture into the process industry and accomplish the company’s objective of expanding its presence in the sector. ZSCC is privileged to work with Nalco Champion, which is part of the Ecolab Company, a Fortune 500 company.
Zamil Steel Construction Co. (ZSCC) has been awarded a full turnkey contract by Saudi Pharmaceutical Industries and Medical Appliances Corporation (SPIMACO) for the construction of SPIMACO’s headquarters and warehouse in Al-Fawazia Industrial Area, Al-Khobar in the Eastern Province of Saudi Arabia.

SPIMACO is a leader in the Saudi market for the development, manufacturing and sales of pharmaceutical products and medical appliances. Construction of this critical facility allows ZSCC to enter the Kingdom’s growing pharmaceutical sector.

The scope of the contract includes the design, fabrication, supply and erection of pre-engineered steel buildings, as well as the provision of all EPC works, including civil, electrical, structural, architectural, electrical, external and finishing works for the SPIMACO headquarters and warehouse complex. ZSCC will also perform the HVAC, firefighting systems, low current and communication systems, secondary infrastructure landscaping and hardscaping, and design verification and validation works at the project site.

Since the project is located near the sea, the high water table increases its complexity of scope by requiring adequate dewatering and shoring on all sides.

The main structure of the warehouse is a steel building that has been designed and fabricated and will be delivered by Zamil Steel, the subsidiary of Zamil Industrial engaged in pre-engineered steel design and fabrication.

The SPIMACO headquarters and warehouse construction project is a fast-track, multicomponent undertaking that requires a specific lead time for fitting and synchronization, in addition to the completion of other complex safety and security requirements within a challenging time frame.

“ZSCC’s reputation for turnkey project excellence in contracting services, product quality and prompt completion is on the rise throughout the region,” said Mohammed Al Sahib, director of ZSCC. “The SPIMACO headquarters and warehouse project provides us with yet another excellent opportunity for partnership in the growth of diverse businesses as we meet their needs for specialized, ready to use facilities on time, within budget and to their complete satisfaction.”

Zamil Steel Construction Co. caters to clients that require comprehensive solutions for industrial and commercial steel structures. The company offers engineering, procurement and construction services for setting up new projects in different market sectors. The firm provides the design, fabrication and supply of steel buildings, as well as related civil and concrete works; the erection of steel buildings; and the installation of firefighting and fire-alarm systems, architectural materials, mechanical systems, electrical systems and plumbing works through turnkey contracts using full-site management teams.
Zamil Air Conditioners Company has successfully completed the pilot solar energy conversion project for Saudi Electricity Company (SEC). The project focused on replacing the conventional energy sources of the SEC HVAC east workshop with a solar plant to create a “green” building.

The capacity of the new solar plant is 5,840 kWh of energy per year. The switch to solar enables the company to reduce the building’s lighting load from 3,000 watts to 840 watts, a reduction of 72 percent, and to reduce the fan coil load from 900 watts to just 520 watts, a reduction of 42 percent.

Senior officials from SEC visited the solar plant and expressed their appreciation to the company, commending the team’s extraordinary efforts to build the small solar plant, which is capable of running the HVAC workshop on clean, eco-friendly energy.

“This achievement allows Zamil Air Conditioners to prove its capability as a reliable business and technology partner, ready to provide materials and perform services that meet the diverse needs of leading national organizations like SEC,” commented Mohammed Khawaldeh, director of the Unitary and Applied Product units at Zamil. “As companies seek not only to lower their own energy costs but to reduce the impact of their operations on the environment, we offer the materials and skilled professionals needed to make the transition as effective and efficient as possible,” he added.
Zamil Industrial Investment Company (Zamil Industrial) has received the Occupational Safety and Health (OSH) Champions Award 2017 for the company’s excellence in OSH practices and its exceptional record in OSH performance levels.

The award, which was recently launched by the Ministry of Labor and Social Development in Saudi Arabia, aims to establish and promote the principles of safety and health in private sector organizations as part of the ministry’s efforts to achieve a stable workforce, attract new workers, enhance work performance, ensure worker safety and health, and maintain the workplace property and environment.

His Excellency, the Minister of Labor and Social Development, Dr. Ali bin Nasser Al-Ghafis, presented the awards to the representatives of the winning companies at a ceremony held on May 16, 2017, at the Ministry of Labor and Social Development in Riyadh, Saudi Arabia. Zamil Industrial was one of four national organizations to win the OSH Champions Award in 2017.

The OSH award targets three sectors of activity, including construction, industry and commerce, based on the latest statistics, which indicate high rates of injuries and work accidents in these areas during the past three years. The award recognizes companies that observe best practices in occupational safety and health in these specific sectors, and is meant to raise awareness among employers and employees regarding the importance of taking appropriate measures to protect workers from accidents and illness at work.

On this occasion, Awadh Eid Al-Ghamdi, the director of the Corporate Loss Prevention Department (CLPD) at Zamil Industrial, commented, “We are proud to accept this prestigious award, especially as it comes from an official government body, the Ministry of Labor and Social Development. The award represents the continued commitment of Zamil Industrial management and the CLPD team to achieve and maintain the highest possible standards of health and safety in the workplace. The OSH award will be added to the list of local and international awards that Zamil Industrial has received over the years in recognition of its outstanding performance in occupational safety and health.”

The winning organizations were chosen based on their benchmarking measures, records and evaluation of their performance in line with global best practices in OSH. They were also rated on five additional factors: their OSH records, the commitment of senior management to workplace health and safety, the strength and quality of their OSH management systems, the existence of reporting and communication channels, and their guidance and educational programs.
Zamil Industrial Investment Company (Zamil Industrial) has announced its consolidated interim financial results for the period ending 31 March 2017.

Revenues for the first quarter of 2017 amounted to SAR 997.9 million (USD 266.1 million), compared with SAR 1,223.2 million (USD 326.2 million) for the same period in 2016, a decrease of 18.4 percent.

Gross profits for the first quarter were SAR 256.6 million (USD 68.4 million), compared with gross profits of SAR 281.3 million (USD 75 million) for the same period in 2016, a decrease of 8.8 percent.

Operating profits during the first quarter were SAR 64.3 million (USD 17.1 million), compared with SAR 78.7 million (USD 21 million) for the same period in 2016, a decrease of 18.2 percent.

Net profits for the first quarter of 2017, after deduction of Zakat and tax, were SAR 41.8 million (USD 11.1 million), compared with SAR 52.9 million (USD 14.1 million) during the same period in 2016, a decrease of 21 percent, and compared with SAR 1 million (USD 0.27 million) posted in the previous quarter (Q4 2016), an increase of 4008 percent.

Total comprehensive income for the first quarter of 2017 amounted to SAR 47 million (USD 12.5 million), compared with SAR 47.8 million (USD 12.7 million) in the corresponding quarter of last year, a decrease of 1.6 percent, and compared to a loss of SAR 16 million (USD 4.3 million) in the previous quarter.

Earnings per share for the three-month period ended 31 March 2017 were SAR 0.7, compared with SAR 0.88 during the same period in 2016.

Equity attributable to shareholders (after the elimination of Minority Interest) as of 31 March 2017 amounted to SAR 1,727.6 million (USD 460.7 million), compared with SAR 1,725 million (USD 460 million) as of 31 March 2016, an increase of 0.15 percent.

The decrease in net income in the first quarter, when compared with the same period last year, was due to lower sales across all sectors primarily attributable to project delays in Saudi Arabia and also due to lower operating margin in the AC sector. The reduction in net income is also attributed to the increase in financial charges and non-controlling interest, as well as to the decrease in associate income.

The increase in net income in the first quarter of 2017, when compared with the fourth quarter of 2016, was primarily due to the adoption of International Financial Reporting Standards (IFRS). Additional impairment of goodwill amounting to SAR 59 million (USD 15.7) was recorded in December 2016. Operating profits decreased due to a reduction in overall sales and lesser operating margins.

Comparative figures have been restated based on IFRS transition effective 1 January 2016. The restated numbers are available in note 13 (first-time adoption of IFRS) in the interim condensed consolidated financial statements for the period ended 31 March 2017.
Zamil Industrial Investment Co. has announced that the company held its ordinary general assembly meeting in the Zamil Air Conditioners Auditorium in First Industrial City in Dammam on 4 May 2017, corresponding to 08-08-1438H, at 6:30 pm. Upon securing a quorum of 53.77%, the following resolutions were reached at this meeting:

  1. Approved the Board of Directors report for the fiscal year ending 31/12/2016;

  2. Approved the external auditors report for the fiscal year ending 31/12/2016;

  3. Approved the consolidated financial statements for the fiscal year ending 31/12/2016;

  4. Approved discharging the Board of Directors from any liabilities for the fiscal year ending 31/12/2016;

  5. Approved the Board of Directors recommendation to transfer the excess amount of SAR 120 million from Statutory Reserve to Retained Earnings, since the Statutory Reserve reached 30% of paid-up capital, and cease transferring 10% of Net Profits to Statutory Reserve;

  6. Approved the Board of Directors recommendation for the distribution of second half 2016 dividends at SAR 1.00 per share, which represents 10 percent of paid-up capital, in addition to the previously distributed first half 2016 dividends at SAR 1.00 per share. This brings the total distribution for the year ending 31/12/2016 to SAR 2.00 per share, representing 20% of paid-up capital. Second half 2016 dividend eligibility will apply to shareholders holding shares as of Thursday, 4 May 2017, registered in the company share registry at the Depository Center (SDC) at the end of the second trading day following the due date on Monday, 8 May 2017. Dividend distribution will be effective 18 May 2017 by means of transfer through the National Commercial Bank;

  7. Approved delegation to the Board of interim dividend distribution for the fiscal year 2017, and decided on the eligibility and distribution dates in compliance with the pertaining Capital Market Authority regulations;

  8. Approved the distribution of SAR 1,600,000 as Board Remuneration for the year ending 31/12/2016, at SAR 200,000 per Board Director;

  9. Approved the appointment of Ernst & Young as the external auditors, as per the recommendation of the Audit Committee, to review and audit the company’s quarterly and annual accounts for the year 2017 and the first quarter of 2018 and agree to their service fee;

  10. Approved the related party transactions between the company and Zamil Architectural Holding Company, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an interest, and renewed them for another year. Total purchase value in 2016 was SAR 1,192,688, agreed upon with the prevailing commercial terms;

  11. Approved the related party transactions between the company and Zamil Chem-Plast Industries, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an interest, and renewed them for another year. Total purchase value in 2016 was SAR 8,908,647, agreed upon with the prevailing commercial terms;

  12. Approved the related party transactions between the company and Zamil Trade & Services Holding Company, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an interest, and renewed them for another year. Total purchase value in 2016 was SAR 34,152,259, agreed upon with the prevailing commercial terms;

  13. Approved the related party transactions between the company and Zamil Real Estate Holding Company, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an interest, and renewed them for another year. Total purchase value in 2016 was SAR 19,571,258, agreed upon with the prevailing commercial terms.
Zamil Industrial Investment Co. (Zamil Industrial), in collaboration with the Commercial Division of Zamil Group Holding Co. and 3M Saudi Arabia, organized a symposium in observance of the World Day for Safety and Health at Work. The event was held on Thursday, April 27, 2017, at the premises of Zamil Higher Institute for Industrial Training in Dammam's First Industrial City.

Representatives from a number of major national companies attended the symposium, including Saudi Electricity Company and Methanol Chemicals Company (CHEMANOL); several officials from the Saudi Industrial Property Authority (MODON), the General Directorate of Civil Defense, the General Authority for Meteorology and Environmental Protection, Sipchem; and officials from Zamil Industrial sector businesses.

The participants delivered several presentations and research papers describing the occupational safety and health programs in place at their organizations, which aimed to increase awareness of the dimensions and consequences of work-related accidents and diseases. They highlighted programs and initiatives that protect factory workers and businesses from potential accidents and disasters and promote the health and safety of employees who work at the various organizations.

The event also included discussions of the participants’ views on and experiences with issues related to the promotion of occupational safety and health at the national level and explored ways to find effective means of reducing occupational accidents and diseases and creating safe and healthy work environments at all levels.

At the end of the symposium, several Zamil Industrial sectors that achieved outstanding performance in occupational safety, health and environmental protection during 2016 were honored.  Attendees also paid tribute to the participating companies, sponsors and supporters who contributed to the success of the event.

The World Day for Safety and Health at Work is an annual international campaign to promote safe, healthy and decent work. It is held on April 28 and has been observed by the International Labor Organization since 2003.
Zamil Industrial Investment Company (Zamil Industrial) would like to announce to its shareholders, who are unable to attend the Annual Ordinary General Meeting, that electronic voting shall be available to enable them to vote on the agenda items.

The meeting will be held as announced earlier on Thursday, 4 May 2017 corresponding to 08/08/1438H at 6:30 pm at the Zamil Air Conditioners auditorium in Dammam’s First Industrial City.

Shareholders who are registered in Tadawulaty services portal can effectively vote online from 10:00 am on Sunday, 30 April 2017 until 11:00 am on Thursday, 4 May 2017.

Zamil Industrial cordially invites its shareholders and urges them to actively participate and vote online by visiting the Tadawulaty web page at: www.tadawulaty.com.sa, a free service available to all shareholders.
The Board of Directors of Zamil Industrial Investment Co. is pleased to invite its shareholders to attend the Ordinary General Assembly Meeting to be held at the Zamil Air Conditioners Auditorium in Dammam’s First Industrial City on Thursday, 4 May 2017 corresponding to 08-08-1438H at 18:30 to consider the following agenda:

1. Vote on the Board of Directors report for the fiscal year ending 31/12/2016;

2. Vote on the external auditors report for the fiscal year ending 31/12/2016;

3. Vote on the consolidated financial statements for the fiscal year ending 31/12/2016;

4. Vote on discharging the Board of Directors from any liabilities for the fiscal year ending 31/12/2016;

5. Vote on the Board of Directors recommendation to transfer the excess amount of SAR 120 million from Statutory Reserve to Retained Earnings, since the Statutory Reserve reached 30% of paid-up capital, and cease transferring 10% of Net Profits to Statutory Reserve;

6. Vote on the Board of Directors recommendation for the distribution of second half 2016 dividends at SAR 1.00 per share, which represents 10 percent of paid-up capital, in addition to the previously distributed first half 2016 dividends at SAR 1.00 per share. This brings the total distribution for the year ending 31/12/2016 to SAR 2.00 per share, representing 20% of paid-up capital. Dividends eligibility will be for shareholders registered at the close of trading on the general assembly date;

7. Vote on delegating the Board to distribute interim dividends for the fiscal year 2017, and decide on the eligibility and distribution dates in compliance with the pertaining Capital Market Authority regulations;

8. Vote on the distribution of SAR 1,600,000 as Board Remuneration for the year ending 31/12/2016 at SAR 200,000 per Board Director;

9. Vote on the appointment of the external auditors, as per the recommendation of the Audit Committee, to review and audit the company’s quarterly and annual accounts for the year 2017 and the first quarter of 2018 and agree to their service fee;

10. Vote on the related party transactions between the company and Zamil Architectural Holding Company, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an interest, and renew them for another year. Total purchase value in 2016 was SAR 1,192,688, agreed upon with the prevailing commercial terms;

11. Vote on the related party transactions between the company and Zamil Chem-Plast Industries, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an interest, and renew them for another year. Total purchase value in 2016 was SAR 8,908,647, agreed upon with the prevailing commercial terms;

12. Vote on the related party transactions between the company and Zamil Trade & Services Holding Company, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an interest, and renew them for another year. Total purchase value in 2016 was SAR 34,152,259, agreed upon with the prevailing commercial terms;

13. Vote on the related party transactions between the company and Zamil Real Estate Holding Company, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an interest, and renew them for another year. Total purchase value in 2016 was SAR 19,571,258, agreed upon with the prevailing commercial terms.

The quorum necessary for this meeting is for shareholders representing at least 25% of the company's capital, and any shareholder has the right to attend the meeting. Shareholders who cannot attend the meeting may appoint a proxy, while taking into consideration that the proxy must not be a member of the board or an employee of the company. Copies of the proxies should be submitted to the company with a copy of a valid ID at least (2) days prior to the meeting date by mail (PO Box 14441, Dammam 31424). The proxies must be attested either by the Chamber of Commerce or a local bank or a Notary Public or an authorized person. The original proxy must be submitted on the day of the meeting. The proxy will be valid for another meeting if this meeting’s quorum is not met.

If such quorum is not attained, a second meeting can be held after one hour from the time the first meeting was supposed to convene. In all cases, the second meeting shall be deemed valid irrespective of the number of shares represented therein.

Shareholders are welcome to send their inquiries by directly contacting our Corporate Communications & Investor Relations department by phone (+96613-8108180) or by email (investors@zamilindustrial.com).

Attached documents: Proxy Letter

Zamil Steel Buildings Vietnam Co., Ltd., a subsidiary of Zamil Industrial Investment Co. (Zamil Industrial), has been awarded the prestigious Golden Dragon Award for the 14th consecutive year, marking its 20 years of excellence in Vietnam and Southeast Asia.

The award is given annually by the Vietnam Economic Times in collaboration with the Foreign Investment Agency (under the Ministry of Planning and Investment). The Golden Dragon Award program is one of the largest held in the country, aimed at recognizing foreign-invested enterprises that have achieved outstanding business performance and made significant contributions to the development of Vietnam’s economy. The award criteria focus on businesses’ efforts to maintain sustainable development, promote environmental protection and fulfill corporate social responsibility.

Established in 1997, Zamil Steel Buildings Vietnam has been growing over the past 20 years, with two factories in the north and south of Vietnam and an annual production capacity of 120,000 metric tons of steel buildings and steel structures. 

The company has successfully supplied more than 6,000 projects in the Asia Pacific region, of which around 2,000 steel buildings were delivered and installed in Vietnam. Zamil Steel Buildings Vietnam is proud of its efforts in aiming for sustainable growth and development.

Zamil Industrial Investment Co. (Zamil Industrial) has been selected by the United Safety Council (USC) as the recipient of the International Partner in Safety Award for the year 2016. Zamil Industrial was selected from a group of international organizations — across 13 different countries — that United Safety Council works with.

The award recognizes the company’s efforts for continuously educating its safety professionals within the Corporate Loss Prevention Department (CLPD) on Occupational Safety and Health Administration (OSHA) standards and earning the Certified Occupational Safety Specialist (COSS) designation in safety.

Zamil Industrial was also selected to receive the USC’s top honor of the Gold Award in the Corporate Award category. The award credited the commitment of the management and the engagement of the whole organization in occupational safety and health.

In addition, the director of the CLPD at Zamil Industrial, Engr. Awadh Al-Ghamdi, received a top honor in the “COSS Excellence in Safety Award” in the Individual Award categories, as well as the Certificate of Recognition in the Safety Leadership category from the USC.

These international awards acknowledge the significant contributions of the CLPD management and teams through the instigation of effective safety programs and initiatives. They also demonstrate the company’s genuine commitment to sustain rigorous safety management and to provide a safe, healthful and decent working environment free from foreseeable hazards and risks across the business units of Zamil Industrial.

The awards were presented at the USC’s 64th Annual Awards Banquet held on March 10, 2017, at the Rosen Plaza Hotel and Conference Center in Orlando, Florida, USA.

Based in Orlando, Florida, the United Safety Council is an independent, non-profit, non-governmental safety training and educational organization operating locally and nationally. The Council is a member of the American Association of Safety Councils, an international safety and services association.
Zamil Industrial Investment Company (Zamil Industrial) has announced its consolidated financial results (audited) for the year ended 31 December 2016.

Revenues for the year amounted to SAR 4,950.6 million (USD 1,320.2 million), compared with SAR 5,488.6 million (USD 1,463.6 million) for the same period in 2015, a decrease of 9.8 percent.

Gross profits were SAR 1,209.2 million (USD 322.4 million), compared with SAR 1,305.3 million (USD 348.1 million) for the same period in 2015, a decrease of 7.4 percent.

Operating profits were SAR 323.8 million (USD 86.3 million), compared with SAR 407.5 million (USD 108.7 million) for the same period in 2015, a decrease of 20.5 percent.

Net profits for the year were SAR 201 million (USD 53.6 million), compared with SAR 263 million (USD 70.1 million) during the same period in 2015, a decrease of 23.6 percent.

Earnings per share for the twelve-month period ended 31 December 2016 were SAR 3.35 (USD 0.9), compared with SAR 4.38 (USD 1.2) during the same period in 2015.

Equity attributable to shareholders (after the elimination of Minority Interest) as of 31 December 2016 amounted to SAR 1,939.8 million (USD 517.3 million), compared with SAR 1,885.1 million (USD 502.7 million) as of 31 December 2015, an increase of 2.9 percent.

The decreases in net profits and operating margins in the twelve-month period, when compared with the same period last year, are attributed to lower sales of core products in the Air Conditioning and Steel sectors, which were primarily due to project delays in Saudi Arabia and a general slowdown in contracting. The reduction in net profits is also attributed to the increase in financial charges, taxes, and loss from associate investments.

Certain figures for 2015 have been reclassified to conform to the presentation in the current year.
Zamil Steel Construction Company (ZSCC), a subsidiary of Zamil Industrial Investment Co. (Zamil Industrial), was recently awarded a turnkey project contract valued at SAR 26.45 million by the Saudi AlbiTek Company for the construction of its new baby wipes factory in the western region of Saudi Arabia.

The scope of the contract includes the provision of all engineering, procurement and construction services on a turnkey basis, including civil works, electrical works, mechanical and structural works, external and utilities works, and finishing works for the new Saudi AlbiTek baby wipes factory located in Rabigh city on the western coast of Saudi Arabia.

The main structure of the factory is a steel building that has been designed and fabricated and will be delivered by Zamil Steel, the subsidiary of Zamil Industrial engaged in pre-engineered steel design and fabrication. The project spans an area of 39,000 square meters, which includes the factory, administration and utilities buildings.

The new factory construction project is a fast-track, multicomponent undertaking that requires a specific lead time for fitting and synchronization, in addition to the completion of other complex safety and security requirements within a challenging time frame. As a result, this project will demand an extraordinary level of attention to detail, with a focus on establishing and maintaining efficiency throughout the factory.

“Our proven turnkey expertise was key to our selection for the Saudi AlbiTek manufacturing facility project, and we are proud to participate in the company’s expansion strategy for Saudi Arabia. Our well-established network of design and materials manufacturing providers teamed with specialists in project management services is uniquely equipped to support the timely completion of this state-of-the-art manufacturing complex,” said Mohammed Al Sahib, director of ZSCC.
Zamil Industrial Investment Co. has announced that the company held its extraordinary general assembly meeting in the Zamil Air Conditioners Auditorium in the First Industrial City in Dammam on 9 February 2017 corresponding to 12-05-1438H at 06:30 pm. The resolutions of the meeting are as follows:

1. Approve amending the company bylaws in accordance with the new Companies Act;

2. Approve the Board’s decision to appoint Mr. Khalid Mohammed Saleh Al Fuhaid (independent member) in the vacant position for the Board’s current term which started on 1 May 2016 for three years;

3. Approve the set-up, the duties, and the internal regulations of the Audit Committee as well as the remuneration of its members upon the proposal of the Board of Directors for a three years term that starts on 1 May 2016. Note that the candidates are as follows:

1) Mr. Mohammad Sulaiman Al Harbi
2) Mr. Mohammed Ahmed Al Ghaith
3) Dr. Jassem Shaheen Al Rumaihi
 

Pursuant to the company’s announcement on 29/1/1438H (corresponding to 30/10/2016) regarding the conversion to International Financial Reporting Standards (IFRS), Zamil Industrial Investment Company (Zamil Industrial) is pleased to announce the following developments in the third phase of the project:

1) The project is progressing in the right direction as planned. To date, the company has not encountered any difficulties in the conversion process to IFRS. Zamil Industrial will issue quarterly financial statements in compliance with IFRS for the first quarter ending 31/3/2017.

2) The Company’s board of directors approved the IFRS-based accounting policies for the Company in its meeting dated 11/12/2016.

3) The company has prepared the opening IFRS consolidated balance sheet as at 1 January 2016 as per IFRS 1.
 
4) The Company will prepare the IFRS interim financial statements for the four quarters of 2016 before 31/3/2017.
 
5) The transition to IFRS has reduced shareholders’ equity as at 1 January 2016 by SAR 211.9 million. The significant differences are as follows:

- The Company recognized impairment of SAR 145 million for property, plant, and equipment of certain subsidiaries as a result of the difference between SOCPA standard and IAS 36

- The Company recognized impairment of SAR 61.6 million for its investment in an associate due to the difference between SOCPA standard and IAS 36

- The Company recognized additional depreciation of SAR 7.6 million as a result of reclassifying spare parts to property, plant and equipment and de-componentization of certain buildings and plants in accordance with IAS 16

- The Company re-measured its employees’ terminal benefits obligation in accordance with the requirements of IAS 19 and the IFRS based provision is less by SAR 2.3 million, resulting in an increase in shareholders’ equity

- The Company deconsolidated one of its subsidiaries as the conditions for consolidation defined in IFRS 10 were not met. The Company accounted for its investment in this subsidiary as an investment in an associated company. No impact on shareholders’ equity resulted from this difference.



6)  The Company did not utilize the ‘deemed cost’ exemption under IFRS 1, the remeasurement model under IAS 16, although the fair value of the Company’s lands, according to an independent valuer, was higher than the book value by SAR 186.5 million.

7) Accordingly, the company would like to confirm its readiness to start implementing IFRS in the first quarter of 2017 during the applicable regulatory deadline.
The Board of Directors of Zamil Industrial Investment Company has recommended the distribution of dividend to the shareholders for the Second Half of 2016 as follows:

  1. Total amount of distribution of dividend SAR 60,000,000
  2. Dividend per share SAR 1.00
  3. Total number of eligible shares 60,000,000
  4. Dividend represents 10% of the face value
  5. The eligibility of dividends shall be for the shareholders registered in the registers of the Securities Depository Center (SDC) on the close of trading on the general assembly meeting date, which will be decided at a later stage
  6. The dividend distribution date will be announced at a later stage.
Zamil Industrial Investment Co. (Zamil Industrial) has announced its consolidated interim financial results for the period ending 31 December 2016.

Net profits for the fourth quarter of 2016 were SAR 58.7 million (USD 15.6 million), compared with SAR 57.5 million (USD 15.3 million) during the same period in 2015, an increase of 2.2 percent, and SAR 40.1 million (USD 10.7 million) posted in the third quarter, an increase of 46.5 percent.

Gross profits for the fourth quarter of 2016 were SAR 349.3 million (USD 93.1 million), compared with gross profits of SAR 374.6 million (USD 99.9 million) for the same period in 2015, a decrease of 6.7 percent.

Operating profits during the fourth quarter of 2016 were SAR 88.5 million (USD 23.6 million), compared with SAR 126.6 million (USD 33.8 million) for the same period in 2015, a decrease of 30.1 percent.

During the twelve months ended 31 December 2016, net profits were SAR 201 million (USD 53.6 million), compared with SAR 263 million (USD 70.1 million) for the same period in 2015, a decrease of 23.6 percent.

Gross profits for the twelve months were SAR 1,228.9 million (USD 327.7 million), compared with SAR 1,305.3 million (USD 348.1 million) for the same period in 2015, a decrease of 5.8 percent.

Operating profits for the twelve months were SAR 336.4 million (USD 89.7 million), compared with SAR 407.5 million (USD 108.7 million) for the same period in 2015, a decrease of 17.5 percent.

Earnings per share for the twelve months that ended on 31 December 2016 were SAR 3.35, compared with SAR 4.38 during the same period in 2015.

The increase in net profits in the fourth quarter of 2016 over the same quarter of 2015 resulted from an increase in other income and non-controlling interests, as well as the reduction in impairment loss of non-current assets. The decrease in income from main operations resulted from lower sales of core products in the Air Conditioning (AC) and Steel sectors, which were primarily attributable to project delays in Saudi Arabia because of a general slowdown in the contracting business.

The decreases in net profits and operating margins in the twelve-month period, when compared with the same period last year, were attributed to lower sales of core products in the AC and Steel sectors, which were primarily attributable to project delays in Saudi Arabia and a general slowdown in contracting. The reduction in net profits is also attributed to the increase in financial charges and taxes, as well as the decrease in income from associate investments and other income.

The increase in net profits in the fourth quarter of 2016, when compared with the third quarter of 2016, resulted from higher sales and operating margins in the AC and Steel sectors, as well as the increase in other income and non-controlling interests.

Certain figures for the fourth quarter of 2015 have been reclassified to conform to the presentation in the current period.

Other notes:

  1. Revenues during the fourth quarter of 2016 amounted to SAR 1,199.2 million (USD 319.8 million), compared with SAR 1,452.5 million (USD 387.3 million) for the same period in 2015, a decrease of 17.4 percent.

  2. Revenues during the twelve months ended 31 December 2016 amounted to SAR 4,950.9 million (USD 1,320.2 million), compared with SAR 5,488.6 million (USD 1463.6 million) for the same period in 2015, a decrease of 9.8 percent.

  3. Equity attributable to shareholders (after the elimination of Minority Interest) as of 31 December 2016 amounted to SAR 1,939.5 million (USD 517.2 million), compared with SAR 1,885.1 million (USD 502.7 million) as of 31 December 2015, an increase of 2.9 percent. Comparison figure was based on the audited financials as of 31 December 2015.
Zamil Steel Construction Company (ZSCC), a subsidiary of Zamil Industrial Investment Co. (Zamil Industrial), was recently awarded a turnkey project contract valued at SAR 8.5 million by the Zamil Alpla Plastics Middle East Company in Dammam, Saudi Arabia.

The project encompasses the construction, commissioning and handover of an extension to the existing Zamil Alpla Middle East plant, located at Dammam’s Second Industrial City. The new contract was awarded on a turnkey basis and includes structural, architectural, electrical and mechanical work on three primary buildings. The main extension structure is a steel building that has been designed, fabricated, and will be delivered by Zamil Steel, the subsidiary arm of Zamil Industrial engaged in pre-engineered steel design and fabrication.

The Zamil Alpla plant extension project is a highly complex undertaking. It will require intense coordination among various disciplines and parties and synchronization of various systems, in addition to the completion of a variety of complex safety and security requirements within a challenging time frame.

“ZSCC specializes in handling turnkey projects that require the utmost attention to quality due to their complexity and intended use. We offer extensive experience in coordinating our efforts to deliver the highest quality and customized solutions to our clients, which are often leading regional and multinational companies,” said Mohammed Al Sahib, director of ZSCC.

Zamil Steel Construction Co. caters to clients that require comprehensive solutions for industrial and commercial steel structures. The company offers engineering, procurement and construction services for setting up new projects in different market sectors. The firm provides the design, fabrication and supply of steel buildings, as well as related civil and concrete works; the erection of steel buildings; and the installation of firefighting and fire-alarm systems, architectural materials, mechanical systems, electrical systems and plumbing works through turnkey contracts using full-site management teams.

Zamil Structural Steel Co. (ZSSC), a subsidiary of Zamil Industrial Investment Co. (Zamil Industrial), has stepped into a new dimension by adding a new business scope, Major Steel Bridge Fabrication, into its products portfolio.

The company has successfully received certification from the American Institute of Steel Construction (AISC) for Certified Bridge Fabricator – Intermediate (Major) following a rigorous three-day on-site audit, which was conducted by the AISC’s inspectors in September 2016.

The certification comes in addition to the many prestigious international certifications held by ZSSC. AISC conducts scope expansion audits using criteria outlined by its certification program, which includes stringent fabrication techniques with close tolerance values, and establishes and implements welding procedures based on the new welding code (AWS D1.5).

Mandatory high-strength bolt pre-installation verification and rotational capacity tests also were demonstrated, in accordance with U.S. standards such as the Research Council on Structural Connections and the Federal Highway Administration.

ZSSC took up a strategic plan of offering diversified products to meet market needs and fulfill stakeholders’ expectations. The company is proud to be the first organization in Saudi Arabia to get certified by AISC for Steel Bridge Fabrication (Major Category).
Zamil Structural Steel Co. (ZSSC) has successfully completed the fabrication, supply and delivery of Package 2 (MAB-2) of the Clean Fuels Project, containing a large tonnage of steel products, including pipe racks and process structures, for the Kuwait National Petroleum Company (KNPC). This expansive project site is located at the Mina Abdullah coastal zone, 60 km south of Kuwait City, Kuwait.

FDH JV, a joint venture of Fluor Corporation, Daewoo E&C and Hyundai Heavy Industries, is the engineering, procurement and construction contractor for this project in southern Kuwait. KNPC currently owns and operates three major refineries: Mina Al Ahmadi (MAA), Mina Abdullah (MAB) and Shuaiba (SHU). A key goal of the Clean Fuels Project is to retire the processing facilities at Shuaiba Refinery and complete a major upgrade/expansion of the MAA and MAB refineries, creating a single KNPC refining complex.

The project also aims to boost production to meet market demand and specifications for transport fuels, to increase overall refining capacity from 736,000 BPSD to 800,000 BPSD once SHU operations have ceased, and to integrate the operating capabilities of the remaining two refineries, resulting in the most efficient utilization of the existing infrastructure. The former SHU facility will be repurposed to accommodate storage needs and operate export facilities at the complex.

ZSSC successfully supplied the entire scope of materials required by the Package 2 agreement over a period of 18 months, well within the agreed contractual delivery schedule and to the complete satisfaction of both FDH JV and KNPC. All ZSSC departments collaborated in the timely and efficient fabrication and delivery of the materials, ensuring top quality structural steel produced in accordance with KNPC specifications.

“We are proud to have provided the structural steel works necessary for completion of Package 2 of the Kuwait Clean Fuels Project,” said Ashraf Eisouh, general manager of ZSSC. “Energy efficiency is a top priority among today’s businesses, and this prestigious project provides a valuable template for the consolidation and integration of resources, infrastructure and operations designed to produce a most effective result.”

As one component of Kuwait’s 30-billion-dinar economic development plan, the Clean Fuels Project is expected to focus on the production of higher-value products intended for export, such as diesel and kerosene.
Zamil Industrial Investment Company (Zamil Industrial) would like to announce to its shareholders, who are unable to attend the Annual Extraordinary General Meeting, that electronic voting shall be available to enable them to vote on the agenda items. The meeting will be held as announced earlier on Thursday, 12/05/1438H corresponding to 9 February 2017 at 6:30 pm at the Zamil Air Conditioners auditorium in Dammam’s First Industrial City.

Shareholders who are registered in Tadawulaty services portal can effectively vote online from 10:00 am on Monday, 9 January 2017 until 11:00 am on Thursday, 9 February 2017.

Zamil Industrial cordially invites its shareholders and urges them to actively participate and vote online by visiting the Tadawulaty web page at www.tadawulaty.com.sa – a free service available to all shareholders.
The Board of Directors of Zamil Industrial is pleased to invite all shareholders to attend its general assembly to convene in an extraordinary session on Thursday, 9 February 2017, at the Zamil Air Conditioners Auditorium in Dammam’s First Industrial City at 6:30 pm. The following items on its agenda will be reviewed and discussed:

  1. Vote on amending the company bylaws in accordance with the new Companies Act (attached);
  2. Vote on the Board’s decision to appoint Mr. Khalid Mohammed Saleh Al Fuhaid (independent member) in the vacant position for the Board’s current term, which started on 1 May 2016 for three years;
  3. Vote on the set-up, the duties and the internal regulations of the Audit Committee as well as on the remuneration of its members upon the proposal of the Board of Directors for a three years term that commences on 1 May 2016. Note that the candidates are as follows:

a. Mr. Mohammad Sulaiman Al Harbi
b. Mr. Mohammed Ahmed Al Ghaith
c. Dr. Jassem Shaheen Al Rumaihi


The quorum for this meeting is for shareholders representing at least 50 percent of its capital, and any shareholder has the right to attend the meeting. Shareholders who cannot attend the meeting may appoint a proxy, while taking into consideration that the proxy must not be a member of the board or an employee of the company. Copies of the proxies should be submitted to the company with a copy of a valid ID at least two days prior to the meeting date by mail (P.O. Box 14441, Dammam 31424). The proxies must be attested either by the Chamber of Commerce or a local bank or a Notary Public or an authorized person. The original proxy must be submitted on the day of the meeting. The proxy will be valid for another meeting if this meeting's quorum is not met.

Shareholders are welcome to send their inquiries by directly contacting our Corporate Communications & Investor Relations department by phone (+966138108180) or by email (investors@zamilindustrial.com).

Attached documents: Click here to download.