Download - Driving Innovative Growth

Driving Innovative Growth

January 2014

April 21, 2023| 2 |

Contents

Country Background

Market Background

About Ajjawi

Ajjawi Sales Philosophy

Ajjawi Business Presentation 2013

04/21/23| 3 |

Welcome

Ajjawi & RB / Aug. 2011April 21, 2023| 3 | Ajjawi Business Presentation 2013

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Disclaimer

All information contained in this presentation are considered deemed confidential. No part of this presentation is allowed to be used, transferred or copied by any mean to any other person or entity other than those who are directly related to it, without the prior written consent and approval of Ajjawi.

Furthermore; this business presentation contains proprietary information including; trade secrets, vital data and sensitive details. The unauthorized disclosure of it may cause damage and harm to its owners, and hence it should be treated with strict confidentiality.


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Safe Harbor Statement

Although statistical data, market information & business environment details are based on current information and the official sources it was taken from, it is believed to be accurate and correct at the time of its preparation. Ajjawi assumes no responsibility or liability for the changes that may occur to the data and relative statistics provided due to the ongoing market changes and the effect of both political and economical situations on it.

This business presentation may be exposed to varying degrees of risks and uncertainties related to other factors including; competitive pricing, consumption or usage levels, physical risks, legislative, fiscal, tax and regulatory developments, economical, political and social conditions within the Palestinian Territories.

All of these risks, in addition to others, may materially effect this presentation and should be taken into consideration as such.


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Country Background

Country BackgroundAjjawi Business Presentation 2013

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Country Background

Country Background

Palestine

Located on the Western edge of the Asian Continent and the Eastern extremity of the Mediterranean Sea.

Palestinian Territories have two definitions: Legal & Political.

Legally; Palestinian Territories are that part of Palestine which been annexed by Israeli after 1967 war.

Politically; Palestinian Territories are that part handed over to PLO to establish The Palestinian Authority after the Oslo Agreements.

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Country Background

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Palestinian Territories is Divided into:

Area A: The PNA exercises full autonomy.

Area B: Palestinian jurisdiction is limited , security is handled by the Israelis.

Area C: Full Israeli control.

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Selected Indicators 2010

Indicator West Bank

Gaza Strip

Palestinian Territories

Total Area (Km2) 5,655.0 365.0 6,020.0

Population Density (Capita / KM2) 450 4,279 682

Natural Increase Rate, Mid Year 2.7 3.3 2.9

Sex Ratio 103.1 103.1 103.1

Crude Birth Rate 30.1 37.1 32.8

Crude Death Rate 4.2 4.0 4.1

Population < 15 Years (%) 39.4 44.4 41.3

Population > 65 Years (%) 3.3 2.4 3.0

Average Household Size 5.6 6.3 5.8

Average Housing Density 1.5 1.8 1.6

Median Age 16.5 Years


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PalestinianDemographicFeatures2010

Fertility Rate 5.93

Infant Mortality Rate (Per 1000 Birth). 30

Life Expectancy at Birth (Years) 72.3

Net Migration Rate - Average / 1000 18.7

% Of Illiterate Palestinian Population 10 Years Plus 11.60%

15 Years Plus 13.90%

Palestinian Population Worldwide 8,521,450

Average of Household Size, 2009 2.9

Average Vehicles / 1000 Population 133


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Palestinian Population By Sex & RegionEnd of 2010

Region Males Females Both Sexes

Palestinian Territories 2,085,996 2,022.635 4,108,631

West Bank 1,293,146 1,253,579 2,546,725

Gaza Strip 792,850 769,056 1,561,906


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Population Pyramid 67% of The Palestinian

Population is below 29 Years.


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53.1

0%

31.0

0%

15.9

0%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Urban Rural Camps

Population By Place of Living


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National AccountsFY 2009

IndicatorPalestinian Territories

West Bank Gaza Strip

GDP (US $ Million) 5,241.3 4,071.5 1,169.8GDP / Capita (US $) 1,415.7 1,837.8 786.8GNI (US $ Million) 5,716.7 4,467.2 1,249.5GNI / Capita (US $) 1,544.1 2,016.4 840.4GDI (US Million) 7,682.6 5,643.7 2,038.9GDI / Capita (US $) 2,075.1 2,547.5 1,084.7Final Consumption Expenditure (US $ Million) 6,696.4 5,083.7 1,612.7Total Value of Exports (US $ Million) 518.0 518.0 0.0Total Value of Imports(US $ Million) 3,600.0 3,327.0 273.0


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Percentage Contribution to GDP by Economic Activity In The Palestinian Territory for the Year 2010 at Constant Prices,

(2004 is the Base Year)


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Living Standards & Humanitarian Aid (2010)

% of households below poverty line: 51.5%. Number of individuals below poverty line: 2,095,437 % of households that lost more than half of their income

during Al Aqsa Intifada: 51.6%. % of households that indicated their need for assistance:

67.0%. Average monthly per capita expenditure in The

Palestinian Territories (US $): 128.0 Average number of rooms in housing units: 3.3 Average number of persons / room (housing density): 1.8


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Information & Communication Technology (06)

Availability of TV sets: 95.3%. Availability of satellite dish for households having TV

sets: 80.4%. Availability of PC at home: 32.9%.

Availability of internet at home: 15.9%. Persons (10 years and above) who have access to the

internet: 26.4%. Persons (10 years and above) who use computers:

50.9%. % of households who have a mobile phone: 81.0%. % of households who have a telephone line: 50.8%.

% of households who view Palestine TV: 29.9%.


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Mass Media

2005 2006 2007 2008 2009


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Available Media in Palestine

Bill Boards Local Radio Stations News papers Magazines Internet TV Digital Signage Taxi and Bus Media


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Culture

2005 2006 2007 2008 2009


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Legal StructureThe Legal framework in Palestine is sourced from many origins. It is a pool of laws that had been accumulated with time depending on the regime that governed Palestine.

Sources Of LawsThe Old Ottoman Civil Law “Al Magella”.British Decrees carrying the force of law, imposed by the

British Mandate over Palestine.Jordan applied its own laws during the annexation of the

West Bank after 1948.


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Sources Of Laws … Continued Egyptian regulations and laws deemed necessary for

the Egyptians during their administration of the Gaza Strip.

Israeli military orders (Laws& regulations) during their occupation of the West Bank & Gaza Strip.

Palestinian Authority legal framework is still a matrix of all a/m laws & regulations and the agreements signed with the Israelis.

Currently some new basic laws & regulations had been passed by PLC while a high profile Technical Committee supported with International Legal Experts are preparing a modern Palestinian Constitution.

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Market Background

Market BackgroundAjjawi Business Presentation 2013

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Market Background


The Palestinian Market is characterized of being endowed with poor financial resources.

The Palestinian retail market is an unorganized market. Small groceries and kiosks dominate the total number of

existing retail outlets. Some mini markets and very few big supermarkets are available in main cities only.

Recently some hypermarkets are witnessed in the three major cities; Ramallah, Nablus and Hebron.

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Market Background


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The Palestinian situation had created unique market features; many of the Palestinian working in Israel had

gained the buying habits and trends that are dominant in Israel, while those who lived in Diaspora or had been

educated in other parts of the world brought back with them the life styles, buying habits and trends that were

gained from their relative markets.

Furthermore, the different levels of income among Palestinians (from very poor to very rich) created a

potential for very low priced items to the high expensive premium alternatives.

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Market Background


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The deterioration of economic conditions in the Palestinian Territory can be attributed to three factors:

The continuation of Israeli practices and measures against Palestinians, such as withholding PNA's VAT and customs

transfers (estimated at US$600 million/month). Overall, the Israeli measures against the Palestinian people have

deprived the Palestinian people of more than 60% of their government's budget.

The Declaration of the Palestinian State in September and USA threats to stop the financial support to the PNA.

The failure of the Palestinian factions, in reaching a political accord in order to set the national political agenda to

overcome the current economic crisis.

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Market Background


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Such deterioration in economic activity produces certain classical features such as;

High unemployment and poverty rates that threaten the social fabric of the country.

Distortions in the economic structure towards an increase in the economic activities that cater to basic needs. These economies suffer from structural changes in the industrial

base towards the production of low-value low-wage manufacturing.

The mobility of many workers from the formal sector into the informal sector.

Widening income and consumption gaps in favor of the rich and wealthy accompanied by an increase in the

marginalization of the poor.

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Market Background


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Market SegmentationLike any other market, the Palestinian market is divided into very clear subgroups that possess similar characteristics. These sub groups (segments) can include elements such as:

Usage: Heavy vs. lightDemographics: Age, sex, marital status, income, educational

status.Geography: Regional, national, international, rural, urban,

camp.Psychographics: attitudes, beliefs, perceptions, preferences, etc.Benefits: What is in it for me? How does it improve my life?

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Market Background


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Market Volume

PALESTINIAN CENTRAL BUREAU OF STATISTICS ESTIMATES THE ANNUAL CONSUMPTION AND EXPENDITURE ON HOUSEHOLD AND PERSONAL CARE ITEMS (2009) IN THE WEST BANK TO BE:

HOME CARE PRODUCTS: ± 82,000,000.00 US$PERSONAL CARE PRODUCTS: ± 153,000,000.00US$FOOD PRODUCTS: ± 350,000,000.00US$

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Market Background


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About Ajjawi


Distribution ChannelsDepending on the size, type, location and economical justification of the retail outlet, many distribution channels exists in Palestine; Direct retail (Super markets, groceries,& Kiosks) Wholesalers & semi wholesalers. Remote or far-to-reach POS at villages and surrounding

rural areas. Pharmacies & Drug Stores. Limited function distributors. Sales force. Etc...

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Points of Sale

NO. OF ESTABLISHMENTS IN OPERATION BY MAIN ECONOMIC ACTIVITY

ISIC ECONOMIC ACTIVITY TOTAL

5211 RETAIL SALES IN STORES WITH FOOD 15,877

5220 RETAIL SALES OF FOOD IN SPECIALIZED STORES 6,113

5231RETAIL SALES OF PHARMACEUTICALS GOODS & COSMETICS

1,578

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Points of Sale Classification

POINTS OF SALE CLASSIFICATIONS

CLASSIFICATION % QUANTITY (1

Strategic & key Accounts <2% ± 100

A 10% 612

B 22% 1345

C & Less 68% 4157

Pharmacies 100% 775(1 Direct retail only / West Bank.

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Market Background


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Retail Outlets Per Governorate

MAJOR RETAIL OUTLET PER GOVERNORATE

Governorate Inhabitants RETAIL OUTLETS

West Bank 2,546,725 6,214

Gaza Strip 1,561,906 2,122

Total Palestinian Territories 4,108,631 8,336

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Market Background


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Competition

Ajjawi Believes in vigorous yet fair competition and supports efforts to create a more open competitive

environment. More than ever before, it is vital to convince and inspire

consumers. That is what we do by listening to them; identifying their wishes and needs and translating it into

quality products that reply to their appeals, wishes and needs while launched in the market with reasonable

price structures.

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Competition

Competing companies can be classified into: Local manufacturers.

International suppliers. Regional suppliers ( Israel, Jordan UAE, SA, Etc..).

Gray Markets. “Bag Merchants”.

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About Ajjawi

About AjjawiAjjawi Business Presentation 2013

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About Ajjawi

About Ajjawi

Company Fact Sheet

Established in early Seventies of the last Century (1970). Ajjawi is a specialized & dedicated professional operation

concentrating its activities on ; Food & FMCGs Home and Personal care Products. Agri Business Automotive Real Estate & Services

We built our reputation and professionalism through hard work, long years of dedication and adherence to innovation and creativity.

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About Ajjawi

About AjjawiApril 21, 2023| 44 | Ajjawi Business Presentation 2013

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Company Fact Sheet

We are bringing our wealth of knowledge and expertise to the service of our customers and consumers – a truly local multinational operations.

Our deep roots in our culture and market give us our strong relationships with our customers and consumers and are the foundation of our future growth.

Our Long term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively, and to a willingness to embrace new ideas and learn continuously.

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About Ajjawi


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About Ajjawi


Vision“To be the Palestinian preferred supplier of essential and value-

added products and services for everyone, everywhere and every day that make peoples’ lives healthier, happier, and more

enjoyable.”

Mission StatementAjjawi is a leading enterprise devoted to providing Palestinian

customers & consumers essential products & services that improve the quality of everyday life. We are determent to

achieve success in our investments & business, always adhere to the strictest ethical and world class standards. We place high

priority in investing in our people & in serving our communities.

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About Ajjawi


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Ajjawi’s Main Responsibilities

Economic - Be profitable. Legal - Obey the law. Ethical - Do what is right. Discretionary - Contribute to community

and quality of life.

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About Ajjawi


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Strategic Objectives

To maintain Ajjawi’s leading position as “SUPPLIERS OF CHOICE” in the Palestinian Market.

Build superior consumer Brand Value by delivering the right bundle of consumer benefits at the right price compared to the competition.

Build shopper demand through superior customer collaboration by enhancing the relationships we have with our trade partners to achieve success with consumers.

Develop our product portfolio to better align with key consumer and customer trends, and the fastest-growing channels and demographic groups.

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About Ajjawi


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Strategic Objectives

To sustain and develop our marketing, sales, services and support to unbeatable levels with the highest customers’ & consumers’ satisfaction measures.

Develop existing infrastructure through the use of advanced information and communication technologies, more advanced infrastructures and better business vehicles.

Drive out costs and assets by creating a leaner cost structure and make better use of our assets to generate

savings we can reinvest in brand building.

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About Ajjawi


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Distribution Areas

Distribution areas are geographically separated into the following zones taking into consideration the existing geopolitical complications, ease of goods delivery and customers’ service standards:

Northern Zone; (Nablus, Jenin, Tulkarem & Salfit Governorates)

Central Zone; (Ramallah & Al Bireh, Jericho and Jerusalem Governorates).

Southern Zone; (Bethlehem & Hebron Governorates).

Gaza Strip. Palestinian Market within Israel

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About Ajjawi


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Company Fact Sheet

Manpower:Sales force: 10Merchandisers: 02Logistics & Deliveries: 20Admin & Supporting Staff: 10

Facilities:Warehouses: 1 (30,000 m33)Operations Offices: o4Trucks & Vans: 06Vehicles: 17

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About Ajjawi


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Competitive & Comparative AdvantagesOur competitive advantages had contributed to our strong

historical operating performance excellence and should enable us to capitalize on sustainable long term future growth and

opportunities MARKETSHARE LEADER.

STRONG BRANDS STATE-OF-THE-ART INFRASTRUCTURE & SERVICES

DIVERSITY OF SOURCING EXPERIENCED MANAGEMENT TEAM

OUR PEOPLE

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About Ajjawi


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About Ajjawi


Some of Our Brands

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About Ajjawi


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Some of Our International Partners

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About Ajjawi


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Some of Our International Partners

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About Ajjawi


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Our Products

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About Ajjawi


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Our Products

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About Ajjawi


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Our Products

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About Ajjawi


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Our Products

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About Ajjawi


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Our Products


About Ajjawi

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Ajjawi Sales PhilosophyAjjawi Business Presentation 2013

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Ajjawi Sales Approach

Targets, key accounts, class (A) & (B) POS for direct retail activities.

Targets wholesalers and semi-wholesalers for remote/ far to reach and very small POS.

Wholesalers will be carefully selected to guarantee best customer service, complete coverage and dedication to

our business. Dedicated wholesalers will be assigned to dedicated

geographic area, routes and POS. Marketing, promotion, merchandizing, shelving, etc...

even for POS that are served by wholesalers and semi-wholesalers.

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Ajjawi Sales PhilosophyApril 21, 2023| 63 | Ajjawi Business Presentation 2013

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Ajjawi New Approach

Over One Year

We will turn the Company around We are completely aware of how do it We laid out the criteria to measure our progress We stated our ultimate, overriding goal:

“Create consistent, sustainable growth in sales & earnings that would take us to the top tier

of the local market performers”

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Our Approach

Enhancing brand image Educating customers Providing product usage and marketing assistance Providing after-sale service and support Put an end to chronic sales shortfalls Get our costs under control Improve our return on our invested capital Advanced POSM “Points of Sales management System”. Re-emphasize sales fundamentals( Availability, Visibility

and Accessibility).

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Our Approach

Driving Innovative Growth Strategies

Manage portfolio to balance growth, margin & cash flow.

Invest in brands, innovation, growth initiatives. Expand, versify to reply to market needs & trends

Deliver sustainable cost reduction. Disciplined capital management to improve ROI.

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Sales Strategies

20/80 sales policies. Pre-order system. Direct retail to key accounts , class A & B+ POS. Wholesalers & Semi Wholesalers operations to cover

remote, rural or far to reach POS. Active POS merchandizing & promotion activities. Very aggressive promotions and incentive schemes

tailored to every POS. Meaningful efficient marketing and advertising

campaigns.

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Customer &

Consumer Focused

Operations

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End Statement

WE BELIEVE THAT WE ARE ONE OF THE BEST BUSINESS PARTNERS IN PALESTINE. YOUR ESTEEMED COMPANY SERVES AND COMPLEMENTS

OUR PURPOSES BY BEING OUR STRATEGIC PARTNER WITH PRODUCTS THAT 100% FITS OUR BASKET AND REPLIES TO OUR CONSUMERS AND

CUSTOMERS NEEDS.

WE ARE FULLY AWARE OF YOUR PRODUCTS, BRANDS AND ITS BRANDS APEAL.

WE MASTER PRODUCTS MARKET OUTREACH AND DISTRIBUTION CHANNELS.

WE HAVE THE PROFESSIONALISM AND THE KNOWHOW REQUIRED TO BEST DISTRIBUTE YOUR PRODUCTS IN PALESTINE.

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End Statement

OUR EXISTING STATE-OF-THE-ART SET-UP AND INFRA STRUCTUREs GUARANTEES A SMOOTH AND SOFT OPERATION

AS EASY AS A “PRESS OF A BUTTOM”. WE CAN GUARANTEE A 100% COVERAGE OF THE PALESTINIAN

MARKET AT THE LEAST POSSIBLE COSTS. WE ARE COMMITTED TO A SUSTAINABLE LONG TERM GROWTH. WE FOLLOW INTERNATIONALLY ADOPTED & ACCEPTED ETHICS,

BUSINESS PRINCIPLES AND CODES.

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We Are Committed To;

Delivering, at short-term, Horizontal & vertical expansion.

Increase market shares and sales volumes. Investing for sustainable, long-term growth. Building strong capabilities at both sales and

administrative levels.

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Thank You