PRESS RELEASE Riyadh | 2 March 2020

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1 ALHOKAIR: PRESS RELEASE

PRESS RELEASE

Riyadh | 2 March 2020

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Fawaz Abdulaziz Alhokair Co. successfully completes a Murabaha of USD 800 million including a new revolving facility of USD 150 million

(Riyadh, 2 March 2020) Fawaz Abdulaziz Alhokair Co. (Alhokair Fashion Retail, the “Group” or “Alhokair,”

4240 on the Tadawul), the largest franchise retailer in Saudi Arabia, the Middle East and North Africa, Central Asia and the Caucasus, is pleased to announce the signing of a new Murabaha facility for USD 800 million. The new facility is composed of two tranches, including i) a USD 650 million Murabaha to be fully utilized in refinancing existing debt, and ii) a USD 150 million revolving standby credit facility to finance the business’ operational and expansion needs.

The transaction consolidates all of the Group’s previous borrowings under the rubric of one Murabaha facility, while extending Alhokair’s debt maturity profile and offering enhanced terms and conditions under an improved pricing regime. Management estimates that the consolidation of the Group’s debt under the transaction will allow the Group to make significant savings on financial charges.

“Our success in securing this new debt package is a vote of confidence in our Group by regional lending institutions, signifying its strong relationship with the Group’s strategic Saudi banking partners, while further diversifying our funding mix with the addition and retention of leading GCC Banks,” said Marwan Moukarzel, Chief Executive Officer of Fawaz Abdulaziz Alhokair Co. “The transaction allows us to consolidate all our existing debt into one Murabaha facility with more favourable terms and significantly reduces our cost of debt in a manner conducive to our long-term and ambitious growth strategy,” added Marwan.

Alhokair’s successful conclusion of the Murabaha agreement marks a key milestone in the Group’s turnaround story, with the new debt profile providing the Group with a more optimized capital structure as it works to efficiently implement its growth strategy and continue its evolvution towards a lifestyle company model.

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PRESS RELEASE

“We believe that the surest way to enhance our customers’ shopping experience, deliver long-term sustainable growth and create value for our shareholders is to deepen and broaden the Company’s ability to invest in its successful business model,” said Marwan. “To this end, an optimal capital structure will place the Company in a prime position to benefit from Saudi Arabia’s favourable long-term macro fundamentals and its new drive to enhance and develop its retail, leisure, entertainment, and cultural offerings. With the integration of the food and beverage business, our increasing online penetration, and further enhancement and expansion of our existing portfolio, we are confident in the Group’s ability to capture upside and generate superior returns,” Marwan concluded.

Details of the transaction include:

i) Term Murabaha:

- Amount: USD 650 million or SAR equivalent 2,435.5 million - Tenure: 7 years

- Grace Period: 1 year - Repayment: semi-annual

- Security: customary security package associated with Term Murabaha agreements ii) Revolving Credit Facility:

- Amount: USD 150 million or SAR equivalent 562.5 million - Tenure: 3 years

- Repayment: annual

- Security: same as the Term Murabaha iii) Participating Banks:

- Al Rajhi Banking & Investment Corporation - The National Commercial Bank

- Samba Financial Group SJSC - The Arab National Bank - Mashreqbank PSC

- Abu Dhabi Islamic Bank PJSC iv) Legal Advisors:

- White & Case LLP

- Abuhimed Asheikh Alhagbani Law Firm (AS&H) in cooperation with Clifford Chance acted for the Banks v) Financial Advisors:

- Houlihan Lokey (MEA Financial Advisory) Ltd. and Swicorp –Ends–

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PRESS RELEASE

Fawaz Abdulaziz Alhokair

Fawaz A. Alhokair & Co (known as “Alhokair Fashion Retail”) was formed in 1990 by Fawaz, Salman and Abdulmajeed Alhokair. The company has since become the largest franchise retailer in the KSA, MENA, Central Asia and Caucasus regions, and the only listed business of its type in the Middle East. Quality, innovation, service and trust are the guiding principles for all Alhokair Fashion Retail operations. These values are coupled with an ability to move quickly, to seize new opportunities and to enter emerging markets. Since the opening of its first store in 1991, Alhokair Fashion Retail has grown considerably and now trades in more than 1,600 stores across 100 shopping malls in 13 countries, with a retail platform operating on a total GLA of over 480,000m2. All of this is managed by a workforce numbering more than 11,000.

Alhokair Fashion Retail currently represents over 80 brands, spanning from womenswear, menswear, kids and baby, department stores, shoes and accessories, cosmetics and coffee shops. For more information, please visit www.fawazalhokairfashion.com

IR Contact

Haroon Al Motairi

Email: [email protected] Tel: +966-11-435-0000

Forward-Looking Statements

This communication contains certain forward-looking statements. A forward-looking statement is any statement that does not relate to historical facts and events, and can be identified by the use of such words and phrases as “according to estimates”, “anticipates”, “assumes”, “believes”, “could”, “estimates”,

“expects”, “intends”, “is of the opinion”, “may”, “plans”, “potential”, “predicts”, “projects”, “should”, “to the knowledge of”, “will”, “would” or, in each case their negatives or other similar expressions, which are intended to identify a statement as forward-looking. This applies, in particular, to statements containing information on future financial results, plans, or expectations regarding our business and management, our future growth or profitability and general economic and regulatory conditions and other matters affecting us.

Forward-looking statements reflect our management’s (“Management”) current views of future events, are based on Management’s assumptions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. The occurrence or non-occurrence of an assumption could cause our actual financial condition and results of operations to differ materially from, or fail to meet expectations expressed or implied by, such forward- looking statements. Our business is subject to a number of risks and uncertainties that could also cause a forward-looking statement, estimate or prediction to become inaccurate. These risks include fluctuations prices, costs, ability to retain the services of certain key employees, ability to compete successfully, changes in political, social, legal or economic conditions in Saudi Arabia, worldwide economic trends, the impact of war and terrorist activity, inflation, interest rate and exchange rate fluctuations and Management’s ability to timely and accurately identify future risks to our business and manage the risks mentioned above.