Savola Group Announces Board's Recommendation to Reduce the Company's share Capital

Element List	Explanation
Introduction	Savola Group “Savola or Company” Announces Board's Recommendation to reduce the Company's Capital by SAR 8,339,806,840, equivalent to approximately 73.54% of the Company's share capital.
Date of Board Meeting	2024-09-26 Corresponding to 1446-03-23
Capital before decrease	11,339,806,840
Capital after decrease	3,000,000,000
Percentage of Capital decrease	73.54 %
Number of Shares before Decrease	1133980684
Number of Shares after Decrease	300000000
Reasons for the Capital Decrease	The reduction of share capital is due to it being in excess of the Company’s needs and to facilitate the distribution-in-kind of Savola’s entire stake in Almarai Company to the eligible Savola’s shareholders and optimize the Company’s capital structure.

This adjustment will involve cancelling shares followed by compensation to eligible Shareholders with a number of Almarai shares having fair value equivalent to the par value of the Company’s canceled shares after adjusting for fractional shares, if any. After the reduction, the remaining capital will be sufficient to meet the Company’s operational requirements. Method of Capital Decrease Through cancelling (833,980,684) shares, which is approximately 73.54% of Savola’s share capital against the distribution of a number of Almarai shares (the Company's assets), to the eligible shareholders, having fair value equivalent to the par value of the Company’s canceled shares after adjusting for fractional shares, if any. The number of Almarai shares is contingent on the market value of Almarai’s shares on Tadawul on the actual date of eligibility for distribution. Impact of the Capital Decrease on the Company's Obligations, Operations or Operational, Financial or Organizational Performance of the Company The capital reduction will not have any effect on the Company's cash accounts, in addition, this reduction will not have an impact on the Company's third-party liabilities.

The capital reduction will result in distribution of Almarai shares to eligible shareholders of the Company, which would reduce the Company's share of Almarai's operational results and dividend proceeds, in the future, as these will be transferred to the eligible shareholders.

There is no impact of the Capital Reduction on the Company's commitments, or organizational performance. Date of reduction The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which capital reduction will be approved. Approvals The Capital Reduction is conditional on obtaining the necessary approvals from the regulatory authorities and the Company's Extraordinary General Shareholders Assembly. Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA Riyad Capital has been appointed as a financial advisor to manage the Company's Capital Reduction process and all related procedures.

An announcement will be made when the Capital Reduction application file is submitted to the Capital Market Authority for approval. Additional Information The Capital Reduction is subject to compliance with the Creditors’ Objection Period in accordance with the regulations. For further details on the Creditors’ Objection Period, please refer to the announcement issued by the Company on 26/9/2024G in this regard.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.