Addendum Announcement from the National Agricultural Development Company (NADEC) in regards to financial impact of the resolution to remove subsidies on feed inputs, with the exception of green fodder.

Element List	Explanation
Introduction	Further to NADEC announcement on 31st December 2019 regarding subsidy on feed input, NADEC announces to its shareholders that the abolition of non-green fodder subsidy will impact on dairy segment as following:
Date of Posting the Previous Announcement of Development on Tadawul's Website	2019-12-31 Corresponding to 1441-05-05
URL of the Previous Announcement	Click Here
Change on the Development	The removal of the subsidy for the dairy segment is expected to have a additional cost in the range of SAR 50M to SAR 60M during 2020 and for the following years, in a range of SAR 70M to SAR 90M per annum. The range being driven by the consumption patterns, feeding mix etc.

During 2020, NADEC has focused on driving business efficiency and cost transformation to help mitigate the impact of this change in subsidy on the financial statements.

The Company is also launching long term strategic business transformation initiatives which will help to counter the effect of this change in the future years. Financial Impact on the change A range of SAR 50M to 60M during 2020 and for the following years, in a range of SAR 70M to 90M per annum

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