Investor Presentation

Q3 / 9M 2020

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Shareholding structure and share information

Shareholding structure Share information

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23.23%

7.14%

9.50%60.13%

Abdulkadir AlMuhaidib & Sons Co.

Lafana Holding

Abdullah AlMuammar

Free Float

Share Information

Market Tadawul, Saudi Arabia

Currency SAR

ISIN code SA13Q050IP16

Listing date 3 May 2015

Financial year end 31 December

Authorized capital (SAR) 500,000,000

Issued shares 50,000,000

Paid capital (SAR) 500,000,000

Par value (SAR) 10.00

The Board of Directors

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Management

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Sami Al Safran – CEO• Over 25 years of professional experience• 19 years in the paper industry• Chemical Engineering graduate of King Fahd

University of Petroleum & Minerals (KFUPM)

Mohamed Saleh Darweesh – CFO• Over 25 years of experience in financial

management• Doctorate in Finance, USA• Certified Public Accountant (CPA), California,

USA

Wadia Malibari – COO• Over 25 years of experience• 10 years of experience with MEPCO and

WASCO• Qualified Chemical Engineer with an MBA

Najib Fakih Ibrahim – President, WASCO• Over 37 years of industry experience• 15 years of experience in waste management• 20 years of experience with Savola Group• Chemical Engineering graduate of KFUPM

Abdul Razik Askalani – Plant Manager• Over 28 years of relevant experience• 14 years of experience with MEPCO• Graduated with a BSc in Geo-Chemistry

Ahmad El Fazary– Chief Commercial Officer• Over 12 years of international marketing

experience• 5 years of experience at MEPCO• Post-Graduate diploma in International

Trading

Local inputs, global output

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80%

50%

A domestic operation using local components extensively

Around half of production is exported generating c. $ 100 million annually

Alignment with Saudi Vision 2030

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MEPCO is in complete uniformity with the Saudi 2030 vision by virtue of its operational model. This uniformity is achieved through:

Supporting Local Industry By using 80% local content worth > SAR 400 million in 2019, encouraging local industry

Spreading the Saudi Export Footprint

MEPCO allocates around half of its production to export markets. 2019 annual export sales of SAR 353 million (c. $100 million)

Growing The Non-petrochemical Sector

MEPCO is a non-petrochemical company that produces an international commodity (Containerboard)

Eco-friendly MEPCO’s core operational model is based on recycling, supporting the environmental dimension of the Saudi 2030 vision

Saudization

Reaching close to 50% (platinum level) against the requirement of 20%. MEPCO invested SAR 20 million to establish HIPIT-Higher Institute of Paper & Industrial Technologies that educates Saudi youth the Paper technology. Many of graduates work in MEPCO after graduation

About MEPCO

• MEPCO is the largest containerboard manufacturer for the secondary packaging industry in MENA region* with backward-integrated operations encompassing raw material sourcing and production.

• With a total installed capacity of 475,000 tons, it accounts for 53% of the Saudi containerboard market. In addition to containerboard, MEPCO also produces coreboard, plasterboard, absorbent Kraft, white top liner, Dual, Kraft liner and Semi Chemical Fluting.

• Waste Collection and Recycling Company (WASCO), is an integrated 100% subsidiary of MEPCO that supplies 85% of its raw material needs of recycled paper.

* MENA definition excludes Turkey and Israel.

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Production MEPCO

Raw Material Sourcing WASCO

Conversion

Ecology concept

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MEPCO uses recoveredpaper and industriallwaste water as inputs

This saves theenvironment from wastehazards and achieves abalances ecological system

MEPCO produces its ownpower with a capacity of48 MWC

B

A

Evolution of Installed Capacity

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Key Partners

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An integrated subsidiary of MEPCO, established in 2004 and specialized in management of recyclable waste paper and other materials

An educational institution established in 2013 by MEPCO for Saudi students taking the Academic Diploma in Paper & Industrial Technologies

Benefits of paper recycling

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Energy conservation• Uses 28-70%

less energy• Uses less water• Puts industrial

waste water to good use

Forest conservation• Preserves

natural ecosystems

Pollution reduction• Reduces the

need for landfills and incinerators

• Prevents water pollution

Recycling paper has a quantifiable impact on the global environment and on industry, replacing polluting manufacturing processes with renewable, greener and more efficient technology, while allowing forests to thrive and grow

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Financial Review

As of September 30, 2020

Financial performance: KPIs (SAR)

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44,772

25,217

111,712105,603

43,513

31,205

94,775

110,476

11,440

383

2,613

15,947

0

100,000

200,000

300,000

400,000

500,000

600,000

0

20,000

40,000

60,000

80,000

100,000

120,000

Q2 20 Q3 20 9M 19 9M 20

SA

R (0

00

)

SA

R (0

00

)

GP EBITDA NP Revenues

Financial performance: KPIs (margins)

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23.1%

15.1%

20.7%19.7%

22.5%

18.6%17.6%

20.7%

5.9%

0.2%0.5%

3.0%

0

0.2

0.4

0.6

0.8

1

1.2

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Q2 20 Q3 20 9M 19 9M 20

GPM EBITDAM NM Revenues

Financial performance: Deleveraging

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431 469

533

603 658

713 722 751 731

810

579 621

474

619

502 482 489 485

141

284 228

328

209 198 217

128 172

2 3 2 3 3 43

5 -

2.21

1.85

1.6

1.341.26

1.04 0.980.82

0.90

0

0.5

1

1.5

2

2.5

-

100

200

300

400

500

600

700

800

900

2011 2012 2013 2014 2015 2016 2017 2018 2019

Equity Medium term Borrowings Short term Borrowings Note Payables Debt Equity Ratio

Address

Al Khumrah Industrial Area,

P.O. Box 32913, Jeddah 21438

Kingdom of Saudi Arabia

Phone

Tel.: +966 (012) 6380111

Fax :+966 (012) 6389111

https://www.linkedin.com/company/middle-east-paper-co-https://twitter.com/MiddleEastPaperhttps://www.facebook.com/MepcoPaper/http://instagram.com/_mepco_

Investor PresentationShareholding structure and share informationThe Board of DirectorsManagementLocal inputs, global outputAlignment with Saudi Vision 2030About MEPCOEcology conceptEvolution of Installed CapacityKey PartnersBenefits of paper recyclingSlide Number 12Financial performance: KPIs (SAR)Financial performance: KPIs (margins)Financial performance: Deleveraging Slide Number 16