MIRA
INFORM REPORT
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Report Date : |
23.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZAMIL INDUSTRIAL
INVESTMENT COMPANY |
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Formerly Known As : |
ZAMIL STEEL BUILDINGS COMPANY LIMITED |
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Registered Office : |
First Dammam Industrial City, Dhahran Airport |
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Country : |
Saudi Arabia |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
1976 |
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Com. Reg. No.: |
2050004215 |
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Legal Form : |
Public Joint Stock Company (PJSC) |
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Line of Business : |
Holding company for a group of three divisions namely Zamil Steel
Building, Zamil Air Conditioners and Zamil Glass Industries |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
SUBJECT
ZAMIL INDUSTRIAL
INVESTMENT COMPANY
Trading As:
AL ZAMIL INDUSTRIAL INVESTMENT COMPANY
ZAMIL STEEL INDUSTRIES
ZAMIL STEEL BUILDINGS
ZAMIL AIR CONDITIONERS
ZAMIL GLASS INDUSTRIES
ZIIC
ZAC
ZSI
Formerly
ZAMIL STEEL BUILDINGS COMPANY LIMITED
ARABIAN REFRIGERATION INDUSTRIES (ARI)
ADDRESS
Location:
Area: First
Dammam Industrial City
Town: Dhahran
Airport
Country: Saudi
Arabia
Telephone: (+966)
(3) 857 1840
Fax: (+966)
(3) 857 1291 / 857 1768
EMail: pebmarketing@zamilsteel.com
Postal
Address:
P.O.Box: 270
Town: Dhahran
Airport 31932
Country: Saudi
Arabia
Branch
Address:
AL
ZAMIL INDUSTRIAL INVESTMENT COMPANY
Town: Dammam
Country: Saudi
Arabia
Telephone: (+966)
(3) 812 1120
Fax: (+966)
(3) 812 1281
Postal
Address:
P.O.Box: 877
Town: Dammam
31421
Country: Saudi
Arabia
AL ZAMIL
INDUSTRIAL INVESTMENT COMPANY
Town: Dammam
Country: Saudi
Arabia
Telephone: (+966)
(3) 847 3333
Fax: (+966)
(3) 847 1904
EMail: info@zamilac.com
Postal
Address:
P.O.Box: 14440
Town: Dammam
31424
Country: Saudi
Arabia
AL
ZAMIL INDUSTRIAL INVESTMENT COMPANY
Street: Farazdaq
Street
Town: Riyadh
Country: Saudi
Arabia
Telephone: (+966)
(1) 476 8177 / 476 4673
Fax: (+966)
(1) 476 6729
Postal
Address:
P.O.Box: 251
Town: Riyadh
11411
Country: Saudi
Arabia
AL
ZAMIL INDUSTRIAL INVESTMENT COMPANY
Town: Dammam
Country: Saudi
Arabia
Telephone: (+966)
(3) 857 5177
Fax: (+966)
(3) 857 5440 / 857 9246
Postal
Address:
P.O.Box: 1633
Town: Dammam
31441
Country: Saudi
Arabia
ZAMIL
INDUSTRIAL INVESTMENT COMPANY
Street: Palestine
Street & Medina Road
Town: Jeddah
Country: Saudi
Arabia
Telephone: (+966)
(2) 660 8472 / 660 0012
Fax: (+966)
(2) 660 9707
Postal
Address:
P.O.Box: 8076
Town: Jeddah
21482
Country: Saudi
Arabia
ZAMIL
INDUSTRIAL INVESTMENT COMPANY
Town: Dammam
Country: Saudi
Arabia
Telephone: (+966)
(3) 847 1840
Fax: (+966)
(3) 847 2574
Postal
Address:
P.O.Box: 14441
Town: Dammam
31424
Country: Saudi
Arabia
MANAGEMENT
Abdulrahman A. Al Zamil
Chairman
Alex Karakas
Senior Vice President
Abdullah Al Zamil
Senior Vice President, Zamil Air Conditioners
Khalid Sulaiman Al Olayan
Board Member
Sulaiman Al Abdulaziz Al Sulaim
Board Member
Sultan Bin Khalid Al Mahfouz
Board Member
Hisham Razouqi
Board Member
Hamad A. Al Zamil
Board Member
Ahmed A. Al Zamil
Board Member
Sulaiman A. Al Zamil
Board Member
Khalid A. Al Zamil
Board Member
Adib A. Al Zamil
Board Member & Managing Director
Muayyad Al Khudairi
Vice President, PEB Division
Saleh Al Zamil
Vice President, Towers & Galvanizing Division
Adnan Abdulrahman Al Mansour
Executive Vice President
Jumah Al Majed
Director
George Kobrossy
General Manager
Karim Itum
General Manager, SS Division
Fadi Mujahed
Marketing Manager
Achraf Kassem
Builder Development Manager
Khaled Ezzat
Products, Research and Development Manager
Dr Abdulrazzak B. Al Samdan
General Manager, Planning & Business Development
Mohammed Al Yousif
Engineering Manager
Ali Suradi
Estimating Manager
D Murugan
Customer Service Manager
Mazin Araim
Manufacturing Manager
Bob Myers
Construction Manager
Mohammed Afzal
Quality Control Manager
Hekmatt Semaan
Administration Manager
Mohammed Nabaq
Finance Manager
Ahmed Al Karawi
Purchasing Manager
Nawaf Al Zamil
Receiving and Transport Manager
R Mani
Information Technology Manager
Ayman Kanaan
Sales Manager, SS Division
Ghassan Ghaddar
Project Management Manager, SS Division
Bashar Al Hanbali
Estimating Manager, SS Division
Alan D Gair
Manufacturing Manager, SS Division
S V Akilan
Quality Control Manager, SS
Division
Italo Chiarotti
Operations Manager, T&G Division
Renato Siboni
Sales Manager, T&G Division
Hagop J. Chalekian
General Manager, Unitary & Applied Products
Moeen Hassan
General Manager, Consumer Products
Shaker Almoussa
General Manager, Cooling Products
Rob Link
General Manager, Zamil Coolcare
Khalid Assa
Business Development Manager
Anwar Khan
Marketing Services Supervisor
Egay Aquino
Personnel Supervisor
PROFILE
Legal
Form: Public
Joint Stock Company (PJSC)
Year
Started: 1976
Date
Registered: Date Reformed
/ Converted into a PJSC: 8th July 1998 (14.3.1419 Hijra)
C.Reg.No.: 2050004215 (Dammam Commercial
Register)
History
The subject was
originally established in 1976 as a Limited Liability Company, under the name
Zamil Steel Buildings Company Limited engaged in the production of steel
structures and products, and was converted into a Public Shareholding Company
on 8 July 1998 and adopted its current name with its founders floating some 40%
of its shares to Saudi & Gulf investors and listed it on the Saudi Stock
Exchange.
In August 1997, the subject announced plans
that it had chosen 6 October City in Egypt as the site for its first
pre-engineered buildings factory outside Saudi Arabia. Trial production started at the plant in
April 1999 and the plant has a capacity to produce 1.2 million tonnes per year
of pre engineered building steel. Total
investment was reported to be USD 16 million.
In January 1998, Dubai based Emirates Glass
signed an agreement with the subject's glass division, Zamil Glass Industries
for the distribution of its range of Emicool coated glass. The accord provides for Zamil to distribute
the glass, used in the construction industry, in Saudi Arabia, Bahrain and
Kuwait.
In early 1998 the subject opened a
representative office in Doha, Qatar and carried out a study of possible export
markets.
In April 1998, the subject invested SAR 20
million (USD 5.3 million) in new technology that would allow its' structural
steel division to double its capacity to 36,000 tonnes a year. The new
equipment included a computer controlled saw and drill line, a shot blasting
machine and a coping system connected to a computer controlled drafting system
In November 1998, the subject completed
construction of a steel fabrication factory in the Vietnamese capital Hanoi,
which has a capacity of 1.2 million tonnes per year of pre engineered steel
buildings.
In 1998 the subject through Zamil Air
Conditioners acquired Clima Tech Air Conditioners GmbH of Austria. The
acquisition followed successful business alliances between the two companies on
a number of projects since 1986. One of the most prestigious projects jointly
carried out by Zamil Air Conditioners and Clima Tech is the supply of air handling
units to the Prophet's Mosque in Medina - one of the largest air conditioning
projects in the world.
In November 2000, the subject purchased 70 %
of Geoklima an Italian company, which makes air-conditioners. Geoklima would provide support to the Zamil
Air Conditioner Factory ZAC in the fields of research and development and would
provide a solid base for the technology used in the products. The step was to contribute in upgrading the
level of growth and the expansion strategy for the Zamil Air Conditioners ZAC.
The division would develop to new heights becoming a leading company
specialized in offering a comprehensive selection of products in the world of
air-conditioning. With this deal the
division would be in a position to offer a complete selection of highly
developed air treatment units and chillers up to a capacity of 600 tons. In September 2002, the subject increased its
share in Geoklima by 15% and thus has raised its stake in the Italian company
to 85%.
In January 2001, the subject was awarded two
international awards one by the American Institute of Steel Construction and
one from the American Society of Mechanical Engineers.
On 9th February 2002, the subject was
officially listed on the Saudi Stock Exchange.
In August 2002, the subject through Zamil
Air Conditioners signed an agreement with Barada Metal Industries of Syria for
technical cooperation in production and marketing under which the subject will
supply primary material for products to be agreed upon or marketing and
assembling them. The subject will also
provide packaging and wrapping materials and experts to supervise the
promotional campaign. Under this
agreement, the subject was to offer its technical know how through training
Barada cadres and undertaking publicity and promotional campaigns in external
markets.
In August 2002, the subject through Zamil
Air Conditioners made a technology and brand name acquisition of Kessler Tech -
well-known name for air handlers and ventilation units in Germany. Kessler Tech
ventilation and air handling units (standard, thermal-break free or welded unit
series) are suitable for almost all applications in the industrial and comfort
areas and are available for indoor and outdoor installation as well as for use
in the hygiene sector. Major customer segments for Kessler Tech are
pharmaceutical, chemical, automotive industries and power plants. Consequent to the acquisition, Kessler
Clima Tech GmbH will be responsible for the sales activities in Germany, whereas
production of its AHUs will take place at Clima Tech factory in Austria.
In November 2002, the subject and Steel Plus
Ltd, an affiliate of Canadian Canam Manac Group, signed an agreement for a new
joint venture called Canam Asia Ltd.
This joint venture will couple the expertise of the subject with one of
the leading manufacturers of steel joists and structural steel components in
North America and Europe. The new
company will be the only company in the region that custom designs, fabricates
and supplies open web joists and will promote its wide range of joist products
to cover commercial, institutional, residential and industrial projects
throughout the construction industry.
Open web joists are ideal for floor and roof construction in all types of
buildings whether steel or concrete and offer substantial savings in weight and
cost.
In March 2003, Zamil CoolCare, a unit of
Zamil Air Conditioners, struck a strategic business alliance with U.S. Chiller
Services - a well known name for repair and service of large capacity chillers.
The alliance has already received its first joint maintenance contract.
Our local sources have reported in July,
2003 that subject through Zamil Steel, Structural Steel Business I Unit (SSBU)
was awarded the contract for Potline Buildings of the Alba Line 5 Expansion
Project in Bahrain for a value exceeding SAR 100 million. Zamil Steel's scope includes fabrication,
supply and erection of structural steel buildings due to commence through
phases from September 2003 to May 2004.
Zamil Steel also supplied the Potshells and
Superstructures for the Alba Line 4 project in 1991 for the Aluminum Smelting
Plant.
Zamil Steel Industries' Structural Steel
Business Unit (SSBU) was established in 1983, operating as manufacturers of
Structural Steel and Plate works for various industrial and commercial
applications. SSBU supplies structural
steel support products requirements for Power and Desalination plants,
Petrochemical, Gas and Oil and Fertilizer plants, High Rise multi storey buildings
as well as other industrial and commercial complexes. SSBU is also exporting
its products to the Middle East, Europe, Africa and Asia and at the time
undertook a major expansion of 100,000 M2 to its production facilities to
accommodate increasing market demand for structural steel and related support
products.
On August 2003, our local sources reported
that subject has been awarded a contract to design, fabricate and supply the
steel structure and air conditioning system for a major shopping mall project
in Riyadh. The execution of the Al Hokair Khurais Plaza project was being
undertaken through Zamil Steel Industries (ZSI) and Zamil Air Conditioners
(ZAC), two of ZIIC's three operating businesses.
ZSI was providing 7,000 metric tonnes of
manufactured steel to meet the construction requirements of the two-storey
77,000 square metre buildings, comprising a shopping mall and a hypermarket
connected by a steel bridge walkway.
On August 2003, our local informants
reported that subject has been awarded through Zamil Steel Industries (ZSI) a
SAR22 million (USD5.98 million) contract to design, fabricate, test and supply
7,500 metric tonnes of power transmission steel towers to Oman's Civil
Contracting and Construction Company.
On August 2003, our local sources have
reported that subject has added Iceland to its list of international export
markets following the recent completion of a 1.2 million Euro contract to
supply nine PreEngineered Steel Buildings (PEBs) to the north-western European
nation work in this project included structurally designing the steel buildings
to meet Iceland's environmental climate, local building codes and
specifications; detailing and manufacturing the buildings within only five
weeks from the date of signing the contract; and then shipping them to the
Icelandic port of Reydarf Jordur. This
project was secured by Zamil Steel Industries' sales office in Athens for one
of their clients in Italy to deliver the buildings to an end user in Iceland.
In order to accommodate the strict delivery schedule for this 725 metric ton
project, which is approximately 6,000 square metres in area, Zamil Steel
Industries' operations in Saudi Arabia, Egypt and India collaborated.
On December 2003 reportedly subject
announced that it will establish a new venture with Al Zamil Group and Aerated
Concrete Industries Company KSC (ACICO) of Kuwait. The new company will be
called "Saudi Aerated Concrete Industries Company Ltd.", ZIIC as well
as Al Zamil Group will hold 27.5% stake each and the remaining 45% will be held
by ACICO from the total paid up capital of SAR 48.8 million (USD 13
million). The Saudi Aerated Concrete
Industries Company Ltd. was expected to start production in Q3 2004.
In April 2004, Subject's Steel sector sales
recorded an increase of SAR 46.5 million (USD 12.4 million) despite the recent
international steel demand crisis. The air-conditioning sector, not yet in its
traditional peak summer season, also witnessed an increase in year-to-date
sales of SAR 36.8 million (USD 9.8 million) despite the increase in Euro
exchange prices. These successes compared to the same period last year -
further reassure our stakeholders and strengthen their confidence in our
products and their quality as well as in the ability of our sector businesses
to compete internationally
In May 2004, our local sources have reported
that Zamil Steel has been awarded a QAR 35.8 million (USD 9.6 million) contract
to supply and erect the steel building for Qatar's latest landmark Retail,
Sports and Entertainment Centre, 'Le Villaggio'. Work on the 100,000 square
meter development, which began in January 2004, is forecasted to be completed
by May 2005 and a soft opening is expected by October 2005. It was also reported that Amana Steel
Building Contracting Company, Zamil Steel's exclusive Certified Builder in
Qatar, has been awarded the erection of this prestigious project.
Also in May 2004, subject has been awarded
through Zamil Steel Industries a contract to supply structural steel works for
the Shoaiba Power Plant Project in the Kingdom of Saudi Arabia.
Subject is providing more than 12,300 metric
tons of structural steel through its Structural Steel Business Unit for the
first phase of the second stage of the project. The scope of work includes the
supply of pipe racks, turbine buildings, other support buildings and
miscellaneous steel products valued in excess of SAR 55 million.
In July 2004, our local sources reported
that subject through Zamil Air Conditioners (ZAC) has affirmed its commitment
to advance scientific knowledge through joint research programs at King Fahad
University of Petroleum and Minerals (KFUPM). The commitment is part of ZAC
strategy to associate itself with academic institutions, to improve air
conditioning performance efficiencies and to position itself as a product
innovator manufacturer.
In December 2004 our local sources reported
that the subject was considering acquisition of two industrial companies in the
UAE and the company is currently talking to a number of firms in Sharjah, and
the deal was expected to be finalized by the end of 2005.
In February 2006, reportedly subject
announced it would be establishing a new factory in Maharashtra State in
Western India, over an area of 90,000 square meters, for the design and
production of pre engineered steel buildings.
This initial investment by subject, through
Zamil Steel India, was estimated at USD 20 million. The completion of this
project is scheduled towards the mid of 2007, with an annual capacity of 3
million square meters of pre-engineered steel buildings. Pre-engineered buildings
have many applications. They are used as warehouses, factories, aircraft
hangars, commercial centres, offices, recreation centres and showrooms. The
most notable advantages of pre-engineered steel buildings are the low cost
initial investment, the fast construction time, the low maintenance cost, the
large clear span interiors, and the easy future expansions.
In April 2006, our local sources reported
that the subject has been awarded through Zamil Air Conditioners (ZAC) a SAR 5
million contract to supply climate control solutions for Bahrain Financial
Harbour. In addition, subject also has been awarded through Zarnil Glass
Industries (ZGI) a contract to supply specialized glass as part of a total
construction industry solutions approach. Under the scope of this agreement,
ZAC, which along with ZGI is a sector business of Zamil Industrial Investment
Company, will be supplying 84 Chilled Water Double-skin Air Handling Units and
more than 1,600 Chilled Water Fan Coil Units, which would provide a total cooling
capacity of 10,700 tons for the project as reported.
On July 2006, subject reportedly planed to
spend more than SAR 300 million (USD80 million) to expand its business in
prefabricated steel buildings in the UAE, Egypt and Asia.
With a value of the overall GCC market for
pre-fabricated steel buildings at USD1 billion or 500,000 tons of steel
buildings produced yearly. Subject's upcoming factory in Ras Al Khaimah will
start with a production capacity of 30,000 tons. The plant, which will erect
PEBs as well as electrical transmission towers, will cost the company SAR 90
million (USD24 million) as reported. Once the RAK facility is complete and
counting a recent expansion in Saudi Arabia, reportedly Zamil will have nearly
doubled production in the Gulf, from 80,000 tons to 140,000 tons per year.
All
figures are in local currency unless stated. SAR (Saudi Arabian Riyals)
Capital
450,000,000
(Authorised & Paid-up) (increased from 350,000,000 in 2006, increased from
300,000,000 in 2003, increased from the original 28,500,000 in July 1998.)
SHAREHOLDERS
Name Holding
% Value
Hamad Abdullah A. Al Zamil & Bros. Company 60.00 %
270,000,000
Saudi Arabia
Al Olayan Group of Companies 10.00
% 45,000,000
Saudi Arabia
Juma Al Majed Group of Companies 10.00
% 45,000,000
UAE
Gulf Investment Company 08.00
% 36,000,000
Kuwait
General members of
the public and investors 12.00
% 54,000,000
Including the Bin Mahfouz Group
Saudi Arabia
TOTAL 100.00
% 450,000,000
AFFILIATES
OLAYAN
DESCON ENGINEERING CO LTD
P.O.Box: 10108
Town: Jubail
Country: Saudi Arabia
Telephone: (+966) (3) 341 0671
Fax: (+966) (3) 341 0950 / 341 0950
EMail: odico@olayandescon.com
SAUDI
FORMALDEHYDE CHEMICAL COMPANY LTD
P.O.Box: 3139
Town: Dammam
Country: Saudi Arabia
Telephone: (+966) (3) 832 5555
Fax: (+966) (3) 834 2283
EMail: sfccl@saudiform.com
GROUP(S)
Subject
is a member of the local Al Zamil Group of companies, which currently employs
8,000 persons (as of 2006) and reportedly generates USD32 billions in annual
sales.
Background Data on the Al Zamil
Group:
---------------------------------------------------
Al Zamil Group is originally a
Saudi Arabian family founded and owned group of companies, whose trading
history date back to early 1930's and operates a number of industrial and
commercial companies in Saudi Arabia and the Gulf region. After the death of
the founder of the group Abdullah Al Zamil in 1961, the businesses were
inherited by his sons who set up holding companies and started diversifying the
groups' activities. The group currently has associates and branch offices
throughout the world including the UK and the USA. The Group is reported to
have an Annual Turnover in excess of SAR 3 billion a year.
In February 2002, our local
informants had reported that Al Zamil Group was entering into a new joint
venture under the name Saudi Indo Petrochemical Company (Sipco) for which plans
for a grassroots linear alkyl benzene (LAB) and n-paraffin complex in Yanbu
have had the approval by the Saudi Industrial Development Fund (SIDF) of USD115
million-worth of loan funding. The estimated USD250 million project was to be
implemented as a 60:40 joint venture between Bahrain-registered Gulf Petro
product Company and a group of local investors led by the AH Al-Zamil Group.
In October 2003, local press
reported that the group were planning to significantly expand their joint
business operations in the Middle East and had signed contracts with the DORMA
group of Germany.
The following financial data applies
to Al Zamil Group of Companies:
Annual Sales
2004 : USD 31,500,300,000
2005 : USD 32,000,000,000
Al Zamil Group of companies also
includes:
A. H. AL AL ZAMIL
P.O.Box: 1083
Town: Safat
Country: Kuwait
Telephone: (+965) 246 2244
Fax: (+965) 241 9944
A.H.
AL ZAMIL & SONS (UK LTD)
Town: Herts WD6 3JW
Country: United Kingdom
Telephone: (+44) (181) 953 6826/ 207 5393
Fax: (+44) (181) 953 6826
ABDUL
RAHMAN AL ZAMIL TRADING EST
P.O.Box: 2833
Town: Dammam
Country: Saudi Arabia
Telephone: (+966) (3) 833 36577 / 832 9855
Cellular:
(+966) (50) 624 5814 (Abdulrahman A. Al Zamil)
Cellular:
(+966) (50) 242 0102 (Hafez Abdulrahman)
Fax: (+966) (3) 834 4443
ADVANCED
PET TECHNOLOGY LTD
P.O.Box: 4576
Town: Al Khobar
Country: Saudi Arabia
Telephone: (+966) (3) 857 9425
Fax: (+966) (3) 857 9417
EMail: davidapt@ksamail.com
AL
JANOUB FACTORY CO. FOR RED BRICKS
P.O.Box: 26156
Town: Riyadh
Country: Saudi Arabia
Telephone: (+966) (1) 493 7576
Fax: (+966) (1) 493 4215
AL
TAWFIQ COMPANY FOR PLASTIC & WOVEN SACKS INDUSTRIES LTD
P.O.Box: 32368
Town: Jeddah
Country: Saudi Arabia
Telephone: (+966) (2) 644 5121
Fax: (+966) (2) 638 0549
AL
YAMAMAH GRANITE & MARBLE FACTORY CO
P.O.Box: 26156
Town: Riyadh
Country: Saudi Arabia
Telephone: (+966) (1) 497 0470
Fax: (+966) (1) 493 4215
AL
ZAMIL BSCC
Town: Manama
Country: Bahrain
Telephone: (+973) 1753 5455
AL
ZAMIL COMPANY INC
Town: Texas 77057
Country: United States of America
Telephone: (+1) (713) 977 2689
Fax: (+1) (713) 977 5731
AL
ZAMIL FOOD INDUSTRIES LTD
P.O.Box: 240
Town: Jubail
Country: Saudi Arabia
Telephone: (+966) (3) 341 5235
Fax: (+966) (3) 341 8235
AL
ZAMIL REFRIGERATION INDUSTRIES
P.O.Box: 294
Town: Dhahran Airport
Country: Saudi Arabia
Telephone: (+966) (3) 857 1464 / 833 1499
Fax: (+966) (3) 857 7208
ARABIAN
GULF CONSTRUCTION CO LTD
P.O.Box: 1633
Town: Dammam
Country: Saudi Arabia
Telephone: (+966) (3) 832 5347 / 832 0985
Fax: (+966) (3) 826 9254
BISCHOF
& KLEIN MIDDLE EAST CO
P.O.Box: 1176
Town: Al Khobar
Country: Saudi Arabia
Telephone: (+966) (3) 812 4443 / 812 4454
Fax: (+966) (3) 812 3135 / 812 4443
CANAM
ASIA LTD
Country: Saudi Arabia
CLIMA
TECH AIRCONDITIONERS GMBH
Country: Austria
Telephone: (+ 43) (2637) 23750
Fax: (+ 43) (2637) 23758
COOLINE
EUROPE HOLDINGS GMBH
Country: Austria
GEOCLIMA
SRL
Town: 34074 Monfalcone (Go)
Country: Italy
Telephone: (+ 39) (481) 485130
Fax: (+ 39) (481) 485231
GUARDIAN
FENCING SECURITY SYSTEMS COMPANY LIMITED
P.O.Box: 6765 & 37
Town: Dammam
Country: Saudi Arabia
GULF
ADVANCED CHEMICAL INDUSTRIES COMPANY LTD
P.O.Box: 12021
Town: Jubail
Country: Saudi Arabia
Telephone: (+966) (3) 359 9755 / 359 9651
Fax: (+966) (3) 359 9797
GULF
PACKAGING INDUSTRIES LIMITED
P.O.Box: 8556
Town: Dammam
Country: Saudi Arabia
Telephone: (+966) (3) 857 0044
Fax: (+966) (3) 857 7345
GULF
REYROLLE LIMITED
P.O.Box: 9
Town: Al Khobar
Country: Saudi Arabia
Fax: (+966) (3) 858 8155
GULF
STABILIZERS INDUSTRIES LTD
P.O.Box: 35625
Town: Jubail Industrial City
Country: Saudi Arabia
Telephone: (+966) (3) 341 7727
Fax: (+966) (3) 341 6033
EMail: sales@gsi.com.sa
HAMED
A AL ZAMIL BROTHERS CO
P.O.Box: 9
Town: Al Khobar
Country: Saudi Arabia
Telephone: (+966) (3) 882 4888 / 859 3232 / 882
2003
Fax: (+966) (3) 882 2509 / 887 1663 / 859 3131
EMail: osamas@zamilcd.com.sa
JUBAIL
CHEMICAL INDUSTRIES COMPANY
P.O.Box: 10661
Town: Jubail 31961
Country: Saudi Arabia
Telephone: (+966) (3) 358 5002
Cellular:
(+966) (50) 396 5490
Fax: (+966)
(3) 358 0089 / 398 3192
EMail: info@jana-ksa.net
KESSLER
CLIMA TECH GMBH
Country: Germany
MIDDLE
EAST AIR CONDITIONERS COMPANY LIMITED
P.O.Box: 294
Town: Dhahran Airport
Country: Saudi Arabia
Fax: (+966) (3) 859 5537
MIDDLE
EAST BATTERY COMPANY
P.O.Box: 360
Town: Dhahran International Airport
Country: Saudi Arabia
MOHAMED
ABDULLAH HAMAD AL ZAMIL
P.O.Box: 285
Town: Manama
Country: Bahrain
Telephone: (+973) 1772 5448
Fax: (+973) 1772 5298
RUBBER
PRODUCTS FACTORY
P.O.Box: 7480
Town: Dammam
Country: Saudi Arabia
Fax: (+966) (3) 857 1485
SAUDI
AERATED CONCRETE INDUSTRIES COMPANY
Country: Saudi Arabia
SAUDI
FORMALDEHYDE CHEMICAL COMPANY LTD
P.O.Box: 3139
Town: Dammam
Country: Saudi Arabia
Telephone: (+966) (3) 832 5555
Fax: (+966) (3) 834 2283
EMail: sfccl@saudiform.com
SAUDI
GERMAN CO. FOR NONWOVEN PRODUCTS
P.O.Box: 3319
Town: Al Khobar
Country: Saudi Arabia
Telephone: (+966) (3) 812 2111
Fax: (+966) (3) 812 1333
EMail: info@sgn.com.sa
SAUDI
LAMINO CO LTD
P.O.Box: 41784
Town: Riyadh
Country: Saudi Arabia
Fax: (+966) (1) 498 5007
SAUDI
PLASTIC WARE FACTORY
P.O.Box: 1748
Town: Al Khobar
Country: Saudi Arabia
SIGMA
PAINTS SAUDI ARABIA COMPANY LIMITED
P.O.Box: 7509
Town: Dammam
Country: Saudi Arabia
Telephone: (+966) (3) 847 3100 / 847 1738 (changed
from 857 3800 / 857 3436 / 857 3996)
Fax: (+966) (3) 847 1734
EMail: info@sigmapaints.com
SKYLIGHT
INDUSTRIES
P.O.Box: 285
Town: Manama
Country: Bahrain
Telephone: (+973) 1771 5570
Fax: (+973) 1771 6557
SULAIMAN
ABDULLAH AL ZAMIL TRADING ESTABLISHMENT
P.O.Box: 51327
Town: Dubai
Country: United Arab Emirates
Fax: (+971) (4) 825313
UNITED
CARTON INDUSTRIES COMPANY
P.O.Box: 2745
Town: Dammam
Country: Saudi Arabia
Telephone: (+966) (3) 832 5319
Fax: (+966) (3) 832 4531
UNIVERSAL
BUILDING SYSTEMS LIMITED
Town: Jersey, Channel Islands
Country: United Kingdom
UNIVERSAL
METAL COATING COMPANY LIMITED
P.O.Box: 11606
Town: Jubail
Country: Saudi Arabia
Fax: (+966) (3) 358 8480 / 358 8969
YAMAMA
FACTORIES FOR RED BRICKS & CLAY PRODUCTS CO LTD
P.O.Box: 26156
Town: Riyadh
Country: Saudi Arabia
Telephone: (+966) (1) 523 1323 / 523 0694 (Factory)
Fax: (+966) (1) 523 0997 (Factory)
(+966)
(1) 493 4215 (Office)
ZAMIL
ALUMINUM INDUSTRIES
P.O.Box: 1633
Town: Dammam
Country: Saudi Arabia
ZAMIL
ARCHITECTURAL INDUSTRIES
P.O.Box: 1633
Town: Dammam
Country: Saudi Arabia
ZAMIL ART
GLASS & ARCHITECTURAL METAL WORKS
P.O.Box: 1633
Town: Dammam
Country: Saudi Arabia
ZAMIL
AUTOMATIC DOORS
P.O.Box: 1633
Town: Dammam
Country: Saudi Arabia
Telephone: (+966) (3) 857 0985
Fax: (+966) (3) 857 2193
ZAMIL
BIRLA TECHNICAL SERVICES
P.O.Box: 9
Town: Al Khobar
Country: Saudi Arabia
Telephone: (+966) (3) 895 1240
Fax: (+966) (3) 895 1719
ZAMIL
COATINGS
P.O.Box: 285
Town: Manama
Country: Bahrain
Telephone: (+973) 1770 0555 / 1770 0335 / 1770 0336
/ 1770 0337
Fax: (+973) 1770 0336
ZAMIL
COMPANY FOR HEAVY STEEL INDUSTRIES LTD
P.O.Box: 13169
Town: Jeddah
Country: Saudi Arabia
Telephone: (+966) (2) 669 2411
Fax: (+966) (2) 669 2420
ZAMIL
CORE LAB
P.O.Box: 9
Town: Al Khobar
Country: Saudi Arabia
Telephone: (+966) (3) 864 2567 / 864 2784
Fax: (+966) (3) 894 9336
ZAMIL
INDUSTRIAL INVESTMENT COMPANY
P.O.Box: 270
Town: Dhahran Airport
Country: Saudi Arabia
Telephone: (+966) (3) 857 1840
Fax: (+966) (3) 857 1291 / 857 1768
EMail: pebmarketing@zamilsteel.com
ZAMIL
LADDERS
P.O.Box: 3408
Town: Dammam
Country: Saudi Arabia
Telephone: (+966) (3) 857 5177
Fax: (+966) (3) 859 4930 / 897 4486
ZAMIL
MARBLE FACTORY
P.O.Box: 285
Town: Manama
Country: Bahrain
Telephone: (+973) 1772 7046 / 1772 9516
Fax: (+973) 1772 7298
ZAMIL
MARINE AND SHIP REPAIRS
P.O.Box: 1922
Town: Al Khobar
Country: Saudi Arabia
Telephone: (+966) (3) 894 4582 / 864 4102
ZAMIL
OPERATIONS & MAINTENANCE CO LTD
P.O.Box: 28057
Town: Dammam
Country: Saudi Arabia
Telephone: (+966) (3) 882 2494 / 882 2495 / 882
4604
Fax: (+966) (3) 882 2032
EMail: Zomco@Zamil-om.com
ZAMIL PARTITIONS INDUSTRIES
P.O.Box: 1633
Town: Dammam
Country: Saudi Arabia
Telephone: (+966) (3) 857 0985
Fax: (+966) (3) 857 2180
ZAMIL
PLASTIC INDUSTRIES LIMITED
P.O.Box: 1748
Town: Al Khobar
Country: Saudi Arabia
Telephone: (+966) (3) 812 1114
Fax: (+966) (3) 812 1477
ZAMIL
POWDER COATING FACTORY
P.O.Box: 285
Town: Dammam
Country: Saudi Arabia
ZAMIL STEEL BUILDINGS - VIETNAM
COMPANY LIMITED
Country: Vietnam
ZAMIL
STEEL BUILDINGS COMPANY
Town: Giza
Country: Egypt
Telephone: (+20) (2) 834 1250
Fax: (+20) (2) 834 1247
ZAMIL
STEEL ENGINEERING INDIA PRIVATE LIMITED
Country: India
ZAMIL
TRAVEL
P.O.Box: 9
Town: Al Khobar
Country: Saudi Arabia
Telephone: (+966) (3) 898 5744 / 898 5736
Fax: (+966) (3) 898 3354
OPERATION
Activities
Holding company for a group of three
divisions namely Zamil Steel Building, Zamil Air Conditioners and Zamil Glass
Industries, engaged in the following activities:
ZAMIL STEEL BUILDINGS
------------------------------------
Operates under three sub-divisions: Structural Steel Division,
Pre-engineered Buildings Division and Towers & Galvanising Division
Manufacturers, designers, suppliers and erectors of pre engineered steel
building and space frames for commercial, industrial, recreational and
institutional uses, also fabricators of structural steel for heavy commercial
and industrial projects, power, radio and telecommunications towers
This division was established originally in 1977 manufacturing
pre-engineered buildings in joint venture with Soule of the United States of
America. In 1983, Zamil Steel became a 100 percent Saudi company after A. H.
Al-Zamil & Brothers purchased all of it's' shares. In 1984, the Structural
Steel Division was established and in 1985 it established the Towers &
Galvanising division.
Annual Production Capacity
Pre-engineered metal buildings -
150,000 metric tonnes per annum
Steel towers & galvanising - 75,000 metric tonnes per annum
Structural Steel - 75,000 metric tonnes per annum
ZAMIL AIR CONDITIONERS
-------------------------------------
Manufacturers of power boilers, pressure vessels, heat exchangers and
piping, residential,
Commercial and industrial air conditioning systems and spare parts as
well as maintenance and service of air conditioners
This division was originally established under the name Arabian
Refrigeration Industries (ARI) in 1974. In 1997 it set up a joint venture
production facility with General Electric Appliance Europe (GEAE) and started
producing the brand Hotpoint and others for General Electric of the USA
ZAMIL GLASS INDUSTRIES
-------------------------------------
Manufacturers of various glass products for decoration, architecture and
security
Current Contracts
----------------------
Date :
January 2003
Contract : Supply
and erect one of the largest single factory buildings in Europe. The
Contract includes the design, fabrication,
shipment and erection with all its
Accessories of the 65,000 square metre
building, the building will be more
Than 600 metres long and reaches, at its
widest area up to 150 metres wide,
The height varies between 9.5 and 11.5
metres.
Client :
Guardian Glass Industries (UK) Ltd
Date : March
2003
Contract : The
three year contract involves maintaining a number of US made
Centrifugal chillers that provide a total cooling of nearly 7,600
Tons, the
Scope of work also includes performing Eddy
Current testing for optimizing
The equipment performance
Client : King
Fahd Military Medical Complex (KFMMC), Dhahran, Saudi Arabia.
Some Completed Contracts
----------------------------------
Date : July
1998
Contract : Supply
and fabrication of structural steel for the construction of an olefin
Plant
Client :
Arabian Petrochemical Company (Petrokemya)
Date :
October 1999
Contract : A SAR
25 million (USD 6.7 million) contract for the supply of heating,
Ventilation and air conditioning (HVAC)
equipment to the 2,400 MW
Ghazlan power project, the order called for
the supply of 76 air handling
And ventilation units and a similar number
of condensing units as well as
Associated equipment including inertia
filters, bleed air fans and exhaust fans.
Total cooling capacity for the equipment was
estimated at 4,600 tonnes of
Refrigeration
Client : Saudi
Consolidated Electric Company in the Eastern Province (Sceco East)
Date :
September 2000
Contract : Supply
5,000 square metres of specialist glass for the 15 storey El Seef
Tower in Bahrain the new headquarters for
Bahrain Housing Bank
Client :
Mannai Engineering Company
Value : USD
1,200,000
Date :
September 2000
Contract : Supply
3,000 square metres of heat mirror glass for the Bahrain Airport
Hotel in Bahrain
Client :
Bahrain Airport Hotel
Value : USD
1,000,000
Date :
September 2000
Contract : Supply
3,000 square metres of heat mirror glass for the Al Hasa Holiday Inn
in Saudi Arabia
Client : Al
Hasa Holiday Inn Hotel
Value : USD
1,000,000
Date : June
2001
Contract : Design,
supply and install 400 special shower doors, with specially designed
handrails
Client : Ritz
Carlton Hotel, Doha, Qatar
Value : SAR
2,000,000
Date : June
2001
Contract : Supply
7,000 square metres of double glazed glass
Client :
Hilton Hotel, Kuwait
Value : SAR
2,000,000
Date :
January 2002
Contract : Supply
and installation of 2,500 square metres of frameless glazing for the
Shop fronts interiors, 1,000 square metres
of flat frameless double glazed
Units with spider system for shopping centre
facades, 1,200 square metres of
Double glazed azuarlite insulated units with
Zamil Crystal system for office
Buildings, 500 square metres for complete
shopping centre handrails and
1,550 square meters curved frameless double
glazed unit for external facades.
Client :
Middle East Commercial Centre, Jeddah
Value : SAR
6,500,000
Date : May
2002
Contract : Joint
contract with Rama Aluminium Factory Company Ltd, Saudi Arabia
For the renovation works in the Hotel
Sheraton Tower in Dammam, the
Contract included aluminium and glass work
on the outside of the hotel
Building and tower
Client : Hotel
Sheraton
Value : SAR
3,500,000
Clients Include :
-------------------------
Arabian Petrochemical Co., Saudi Arabia
Consolidated Contractors Co., Greece
Dailem Engineering & Contracting, Korea.
JGC Corporation, Japan.
Mitsubishi Heavy Industries Ltd Japan
Parsons International, USA.
Saudi Archirodon Construction, Saudi Arabia
Saudi Electricity Company, Saudi Arabia
Technip Italy, Italy.
Imports machinery and equipment for its' own usage
UKSIC Code: 27.52
UKSIC Name: Steel founders
(manufacture)
Imports From
Europe and South
Africa
Agents For
Suppliers include:
British Steel, UK;
Stemocor, UK.
Brands Sold
Classic,
Cooline,
Clima Tech,
Kessler Clima Tech,
Hotpoint,
Exports To
Worldwide
No. of Employees
2005 : 4,500 (including 1,769 at Zamil Steel and
2,100 Zamil Air Conditioners, of which 700 are of Saudi Arabian nationality) /
10,000 (A.H. Al Zamil Group)
2006 : 5,000 (including worldwide in 50 countries)
2007 : 5,000 (including worldwide in 50 countries)
Certification
ISO 9001, awarded on 2 May 1995
by ABS Quality Evaluations, USA for the Steel Division
ISO 9001 awarded in 2000
upgraded from
ISO 9002 awarded in 1996 for
its' Air Conditioners Division
All figures are in local
currency unless stated. SAR (Saudi Arabian Riyals)
Annual Sales
The following financial figure applies to
subject and its three manufacturing divisions:
2000 : 1,252,000,000
2001 : 1,247,400,000
2002 : 1,406,064,000
2003 :
1,561,238,000
2004 :
1,966,674,000
2005 :
2,369,493,000
2006 :
1,335,135,000*
* Figure applies to six months of operation
ending June 2006
The following
financial figure applies to the subject's three manufacturing divisions:
Zamil Steel
Industries:
Annual Sales
2003 : 696,900,000
2004 : 1,070,000,000
2005 : 1,464,849,000
2006 : Not Finalised
Zamil
Air Conditioners:
Annual Sales
2003 : 810,900,000
2004 : 843,300,000
2005 : 859,116,000
2006 : Not Finalised
Zamil Glass Industries:
Annual Sales
2004 :
48,805,000
2005 :
45,528,000
2006 :
Not Finalised
Annual
Profit
The following financial figure applies to
subject and its three manufacturing divisions:
2000 : 27,128,000
2001 : 14,095,000
2002 : 45,383,000
2003 : 50,210,000
2004 : 70,155,000
2005 :
106,362,000
2006 : 96,940,000*
* Figures apply to six months of operation
ending 30th June 2006
The following financials are extracted from the
subject latest available consolidated reviewed financial statements for six
months of operations ended 30 June 2006 in SAR'000:
Balance Sheet
as
at
30.06.2006
Current Assets
Inventories 897,751
Commercial debtors
& other accounts receivable 931,212
Amounts due from
related parties & affiliates 19,043
Bank balances and
cash 113,137
Total Current
Assets 1,961,143
Current
Liabilities
Debtors &
bills payable & charges payables 1,343,487
Amounts due to
related parties & affiliates 5,606
Advances from
customers 139,706
Current portion
from long term loan 23,716
Bank loans &
Overdrafts 91,961
Total Current
Liabilities 1,604,476
Net Current assets 356,667
Non current assets
Net ownerships and
equipment after depreciation 414,034
Investment 48,382
Commercial
Goodwill 28,492
Deferred expanses 9,607
Total non current assets 500,515
Net current & non current assets 857,182
Non-Current
liabilities & shareholder's equity & Minority Interest
Non-Current
liabilities
Remunerations end
of service 83,625
Loans of cash
Saudi Industrial Development 41,802
Banks long term
loans 11,556
Total Non-Current
liabilities 136,983
Shareholder's
equity
Paid-up Capital
(45 million shares for SAR 10 each. 450,000
Statutory Reserve 72,273
Translation of
money / (Loss) -9,063
Retained Earnings 136,060
Unrealized Gain on
Investments for sales 8,533
Total
Shareholder's Equity 657,803
Minority Interest 62,396
Total Liabilities
& Shareholder's Equity 857,182
CONSOLIDATED
STATEMENT OF INCOME
as
at
30.09.2006
Net sales 1,335,135
Cost of sales 1,051,650
Gross Profit 283,485
Less expense
Selling and
distribution expenses 89,485
General and
administration expenses 85,662
Income from Main
Operations 108,338
Other income 37,234
Financial charges -32,817
Taxes and minority
interests -10,015
Net profits of the
period before Zakat 102,740
Zakat provisions 5,800
Net profits after
Zakat 96,940
Earning per share
for the period (Saudi Riyals) 2,15
Cash Flow
Statement period
ended
30.06.2006
Cash Flow from
Operations
Net profit after
Zakat 96,940
Depreciation 28,474
Zakat Provision 5,800
Gain on Sale of
Ownerships and equipment -44
Profits from sales
of investments -22,274
Minority Interest,
net 9,774
Amortisation of
Goodwill 762
Amortisation of
Deferred expanses 1,223
Inventories 75,018
Commercial debtors
& other accounts receivable -261,865
Creditors &
Charges payables 127,353
Provisions end of
Service, net 11,305
Zakat Paid -8,424
Net Cash Flow from
Operations 64,042
Cash Flow from
Investing Activities
Purchase of
Property, Plant and equipment -98,874
Proceeds from sale
of prop., plant and equipment 81
Proceeds from sale
investments 32,205
Investments -16,280
Commercial
Goodwill -24,500
Deferred Charges
incurred
Net cash used in
investing activities -107,368
Cash Flow from
Financing Activities
Short term loans -4,526
Long term loans 4,853
Changes in Bank
overdrafts -2,265
Dividend Paid
Minority Interest 28,387
Net Cash from /
(used in) financing activities 26,449
Increase
(Decrease) in bank balances and cash -16,877
Bank balances and
cash at the beginning of the Year 131,387
Movement in
translation, net -1,373
Bank balances and
cash at the End of the Year 113,137
The
following are extracts from subject's latest available consolidated financial
statements ending 31st December 2005 in Thousands SAR:
CONSOLIDATED
BALANCE SHEET
31.
Dec.2005 31.Dec.2004
Assets
Employed
Property,
Plant and Equipment 342,958 322,905
Investments 68,025 33,544
Goodwill
on Acquisition 4,754 5,054
Deferred
Charges 10,830 7,267
Current
Assets
Inventories 972,769 833,920
Accounts
receivable and prepayments 678,270 618,710
Amounts
due from related parties 10,120 10,345
Cash
and cash equivalents 131,387 78,938
1,792,546 1,541,913
Current
Liabilities
Notes
and accounts payable and accruals 1,288,504 1,083,251
Amounts
due to related parties 5,830 6,527
Advances
from customers 71,418 59,564
Bank
overdrafts 3,850 3,687
Short
term loans 94,902 116,658
Current
portion of term loans 19,883 19,275
1,484,387 1,288,962
Net
Current Assets 308,159 252,951
734,726 621,721
Funds
Employed
Shareholders'
Equity
Share
capital 350,000 350,000
Statutory
reserve 62,579 51,943
Retained
earnings 148,814 55,088
Proposed
cash dividends - 42,000
Unrealised
gains on investments 34,525 7,975
Translation
loss on consolidation -8,403 -12,057
587,515 494,949
Minority
Interests 24,235 18,361
611,750 513,310
Non
Current Liabilities
Term
loans 48,940 45,575
Long
term payables 1,716 103
Employees'
terminal benefits 72,320 62,733
122,976 108,411
734,726 621,721
CONSOLIDATED
STATEMENT OF INCOME
31.
Dec.2005 31.Dec.2004
Net
sales 2,369,493 1,966,671
Cost
of sales 1,866,710 1,561,751
Gross
Profit 502,783 404,920
Expenses
Selling
and distribution 186,432 179,982
General
and administration 159,285 120,853
Amortisation
of goodwill on acquisition 300 300
Amortisation
of deferred charges 2,899 14,328
348,916 315,463
Income
from Main Operations 153,867 89,457
Other
income 21,658 21,820
Financial
charges -50,586 -26,108
Income
before Zakat, Taxes and Minority Interests 124,939 85,169
Foreign
taxes -505 -428
Net
minority interests in results of subsidiaries -6,038 -7,883
Income
before Zakat 118,396 76,858
Zakat 12,034 6,703
Net
Income for the Year 106,362 70,155
Earning
per share (Saudi Riyals) 15.19 10.02
CONSOLIDATED
STATEMENT OF CASH FLOWS
31.
Dec.2005 31.Dec.2004
Operating
Activities
Consolidated
income before zakat, taxes and minority interests 124,939 85,169
Adjustments
for:
Depreciation
51,192 46,776
Gain
on sale of property, plant and equipment -275 -255
Amortisation
of deferred charges 2,899 14,328
Amortisation
of goodwill on acquisition 300 300
179,055 146,318
Changes
in operating assets and liabilities:
Inventories -138,849 -314,379
Receivables -59,335 -120,455
Payables 212,782 375,283
Cash
from operations 193,653 86,767
Employees'
terminal benefits, net 9,587 6,140
Zakat
and foreign taxes paid -9,298 -7,109
Net
cash from operating activities 193,942 85,798
Investing
Activities
Purchase
of property, plant and equipment -71,990 -60,606
Proceeds
from sale of property, plant and equipment 520 465
Deferred
charges -6,462 -237
Investments
acquired -7,931 -25,569
Net
cash used in investing activities -85,863 -85,947
Financing
Activities
Bank
overdrafts 163 -542
Dividends
paid -42,000 -18,000
Term
loans obtained 24,404 6,204
Repayment
of term loans -20,431 -22,216
Change
in short term loans -21,756 51,817
Minority
interests, net -164 356
Net
cash (used in) from financing activities -59,784 17,619
Increase
in Cash and Cash Equivalents 48,295 17,470
Cash
and cash equivalents, at the beginning of the year 78,938 60,581
Movement
in translation difference - net 4,154 887
Cash
and Cash Equivalents, At the End of the Year 131,387 78,938
The following financial data are extracts from the
subjects' Consolidated financial statements as of 31 December 2004 and are in
Saudi Riyals thousands (` 000 SAR):
CONSOLIDATED
BALANCE SHEET
As At 31 December 2004
2004 2003
SR
000 SR 000
Assets employed
Property, plant and equipment 322,905 312,323
Investments 33,544
Goodwill on acquisition 5,054 5,354
Deferred charges 7,267 20,537
Current assets
Inventories 833,920 519,541
Accounts receivable and prepayments 618,710 501,653
Amounts due from related parties 10,345 6,947
Cash and cash equivalents 78,938 60,947
1,541,913 1,088,722
Current
Liabilities
Accounts
payable and accruals 1,083,251 724,283
Amounts
due to related parties 6,527 5,073
Advances
from customers 59,564 42,303
Bank
overdrafts 3,687 4,229
Short
term loans 116,658 64,841
Current
portion of term loans 19,275 18,516
1.288.962 859,245
Net Current Assets 252,951 229,477
Funds
Employed
Shareholders'
Equity
Share
capital 350,000 300,000
Statutory
reserve 51,943 44,927
Retained
earnings 55,088 35,049
Proposed
cash dividends 42,000 18,00
Proposed
stock dividends - 50,000
Unrealised
gains on investments 7,975 -
Translation
loss on consolidation -12,057 (l0,727)
494,949 437,249
Minority Interests 18,361 10,122
513,310 447,371
Non Current Liabilities
Term loans 45,575 62,346
Long term payables 103 1,381
Employees' terminal benefits 62,733 56,593
108,411 120,320
CONSOLIDATED
STATEMENT OF INCOME
2004 SR 000
SR
000 2003
Net sales 1,966,671 1,561,238
Cost of sales 1,561,751 1,233,397
Gross Profit 404,920 327,841
Expenses
Selling and distribution 179,982 149,347
General and administration 120,853 103,105
Amortisation of goodwill on acquisition 300 300
Amortisation of deferred charges 14,328 14,097
315,463 266,849
Income from Main Operations 89,457 60,992
Other income 21,820 20,487
Financial charges -26,108 -21,087
Income before Zakat, taxes and minority
interests 85,169 60,392
Foreign taxes -428 -790
Net minority interests in results of
subsidiaries -7,883 -3,372
Income Before Zakat 76,858 56,230
Zakat 6,703 6,020
Net Income for the Year 70,155 50,210
Earning per share (Saudi Riyals) 10,02 7,17
HISTORICAL FINANCIAL DATA
---------------------------------------
The following financial data are extracts from the subjects'
Consolidated Balance Sheet and Profit & Loss Accounts as of 31 December
2003 and are in Saudi Riyals thousands (` 000 SAR):
CONSOLIDATED BALANCE SHEET 2003 2002
ASSETS EMPLOYED
Property, plant and equipment 312,323 264,576
Investment 0 1,950
Goodwill on acquisition 5,354 5,654
Deferred charges 20,537 32,392
------------- -------------
338,214 304,572
------------- -------------
CURRENT ASSETS
Inventories 519,541 427,472
Accounts receivable and prepayments 501,653 448,911
Amounts due from related parties 6,947 5,248
Bank balances and cash 60,581 76,027
------------- -------------
1,088,722 957,658
------------- -------------
CURRENT LIABILITIES
Accounts payable and accruals 724,283 592,837
Amounts due to related parties 5,073 4,205
Advances from customers 42,303 29,969
Bank overdrafts 4,229 3,565
Short term loans 64,841 83,199
Current portion of term loans 18,516 14,339
------------- -------------
859,245 728,114
------------- -------------
NET CURRENT ASSETS 229,477 229,544
------------- -------------
567,691 534,116
------------- -------------
FUNDS EMPLOYED
SHAREHOLDERS' EQUITY
Share capital 300,000 300,000
Statutory reserve 44,927 39,906
Retained earnings 35,049 58,860
Proposed cash dividends 18,000 36,000
Proposed stock dividends 50,000 0
Translation loss on consolidation -10,727 -10,070
------------- -------------
437,249 424,696
MINORITY INTERESTS 10,122 9,309
------------- -------------
447,371 434,005
------------- -------------
NON CURRENT LIABILITIES
Term loans 62,346 51,513
Long term payables 1,381 1,211
Employees' terminal benefits 56,593 47,387
------------- -------------
120,320 100,111
------------- -------------
567,691 534,116
------------- -------------
CONSOLIDATED STATEMENT OF INCOME 2003 2002
Net sales 1,561,238 1,406,064
Cost of sales 1,233,397 1,108,070
------------- -------------
GROSS PROFIT 327,841 297,994
------------- -------------
EXPENSES
Selling and distribution 149,347 136,937
General and administration 103,105 90,313
Amortization of goodwill on acquisition 300 288
Amortization of deferred charges 14,097 10,401
------------- -------------
266,849 237,939
------------- -------------
INCOME FROM MAIN OPERATIONS 60,992 60,055
Other income 20,487 13,373
Provision no longer required 0 3,501
Financial charges -21,087 -22,058
INCOME BEFORE ZAKAT, TAXES
AND MINORITY
INTERESTS 60,392 54,871
Foreign taxes -790 -231
Net minority interests in results of
Subsidiaries -3,372 -3,851
------------- -------------
INCOME BEFORE ZAKAT 56,230 50,789
Zakat 6,020 5,406
------------- -------------
NET INCOME FOR THE YEAR 50,210 45,383
------------- -------------
CONSOLIDATED STATEMENT OF CASH FLOWS 2003 2002
OPERATING ACTIVITIES
Consolidated income before zakat,
Taxes and minority interests 60,392 54,871
Adjustments for:
Depreciation 42,111 43,666
Profit on sale of property,
plant
And equipment -35 -25
Amortization of deferred
charges 14,097 10,401
Amortization of goodwill on
acquisition 300 288
------------- -------------
116,865 109,201
Changes in operating assets and
Liabilities:
Inventories -92,069 -29,759
Receivables -54,441 -79,987
Payables 144,194 117,333
------------- -------------
Cash from operations 114,549 116,788
Employees' terminal benefits, net 9,206 6,314
Zakat and foreign taxes paid -7,186 -6,192
------------- -------------
Net cash from operating activities 116,569 116,910
------------- -------------
INVESTING ACTIVITIES
Purchase of property, plant and
Equipment -90,574 -41,577
Proceeds from sale of property,
Plant and equipment 751 1,251
Deferred charges -2,242 -13,873
Investment in a subsidiary 1,950 -1,950
Goodwill incurred during the year 0 -732
------------- -------------
Net cash used in investing activities -90,115 -56,881
------------- -------------
FINANCING ACTIVITIES
Bank overdrafts 664 1,085
Dividends paid -36,000 -30,000
Term loans obtained 29,349 29,534
Repayment of term loans -14,339 -26,620
Change in short term loans -18,358 -3,391
Minority interests, net -2,559 -1,371
------------- -------------
Net cash used in financing activities -41,243 -30,763
------------- -------------
(DECREASE)/INCREASE IN CASH -14,789 29,266
Cash at the beginning of the year 76,027 44,153
Movement in translation different - net -657 2,608
------------- -------------
CASH AT THE END OF THE YEAR 60,581 76,027
------------- -------------
The following historical financial data are extracts from the subjects'
Balance Sheet and Profit & Loss Accounts as of 31 December 2002 and are in
Saudi Riyals thousands (` 000 SAR):
BALANCE SHEET 2002 2001 2000
Current Assets 530,186 418,325 430,369
Inventory 427,472 397,713 387,283
Investments 1,950 0 0
Fixed Assets 264,576 275,068 273,913
Other Assets 38,046 34,130 29,201
Total Assets 1,262,230 1,125,236 1,120,766
Current Liabilities 728,114 636,070 611,217
Non-Current Liabilities 100,111 95,704 90,890
Other Liabilities 9,309 0 0
Shareholder's Equity 424,696 393,462 418,659
Total Liabilities & Shareholder Equity 1,262,230 1,125,236 1,120,766
PROFIT & LOSS ACCOUNTS 2002 2001 2000
Sales 1,406,064 1,247,489 1,252,521
Sales Cost 1,108,070 971,129 958,952
Total Income 297,994 276,360 293,569
Other Revenues 16,874 6,357 5,112
Total Revenues 314,868 282,717 298,681
Admin and Marketing Expenses 237,939 225,075 223,891
Other Expenses 26,140 37,487 43,881
Total Expenses 264,079 262,562 267,772
Net Income Before Zakat 50,789 20,155 30,909
Zakat 5,406 6,060 3,781
Net Income 45,383 14,095 27,128
Balance First Period 55,015 74,080 82,488
Reserves 4,538 1,409 3,438
Cash Dividends 36,000 30,000 24,000
Other Distributions 1,000 0 8,098
Balance End Period 58,860 56,766 74,080
Basis of consolidation
Entities controlled by the company are
classified as subsidiaries and consolidated regardless of the country of their
registration. Significant inter-company accounts and transactions are
eliminated upon consolidation.
Minority interests principally represent the
interest in Zamil Steel Buildings -Vietnam Company Limited, Middle East Air
conditioners Company Limited, Canam Asia Limited and Geoclima S.r.l., not held
by the company.
The following financials are extracted from the
subject latest available consolidated reviewed financial statements for six
months of operations ended 30 June 2006 in SAR'000:
BALANCE SHEET 30.06.2006
Current Assets
Inventories 897,751
Commercial debtors
& other accounts receivable 931,212
Amounts due from
related parties & affiliates 19,043
Bank balances and
cash 113,137
Total Current
Assets 1,961,143
Current
Liabilities
Debtors &
bills payable & charges payables 1,343,487
Amounts due to
related parties & affiliates 5,606
Advances from
customers 139,706
Current portion
from long term loan 23,716
Bank loans &
Overdrafts 91,961
Total Current
Liabilities 1,604,476
Net Current assets 356,667
Non current assets
Net ownerships and
equipment after depreciation 414,034
Investment 48,382
Commercial
Goodwill 28,492
Deferred expanses 9,607
Total non current assets 500,515
Net current & non current assets 857,182
Non-Current
liabilities & shareholder's equity & Minority Interest
Non-Current
liabilities
Remunerations end
of service 83,625
Loans of cash
Saudi Industrial Development 41,802
Banks long term
loans 11,556
Total Non-Current
liabilities 136,983
Shareholder's
equity
Paid-up Capital
(45 million shares for SAR 10 each. 450,000
Statutory Reserve 72,273
Translation of
money / (Loss) -9,063
Retained Earnings 136,060
Unrealized Gain on
Investments for sales 8,533
Total
Shareholder's Equity 657,803
Minority Interest 62,396
Total Liabilities
& Shareholder's Equity 857,182
CONSOLIDATED
STATEMENT OF INCOME
30.06.2006
Net sales 1,335,135
Cost of sales 1,051,650
Gross Profit 283,485
Less expense
Selling and
distribution expenses 89,485
General and
administration expenses 85,662
Income from Main
Operations 108,338
Other income 37,234
Financial charges -32,817
Taxes and minority
interests -10,015
Net profits of the
period before Zakat 102,740
Zakat provisions 5,800
Net profits after
Zakat 96,940
Earning per share
for the period (Saudi Riyals) 2,15
CASH FLOW
STATEMENT 30.06.2006
Cash Flow from
Operations
Net profit after
Zakat 96,940
Depreciation 28,474
Zakat Provision 5,800
Gain on Sale of
Ownerships and equipment -44
Profits from sales
of investments -22,274
Minority Interest,
net 9,774
Amortisation of
Goodwill 762
Amortisation of
Deferred expanses 1,223
Inventories 75,018
Commercial debtors
& other accounts receivable -261,865
Creditors &
Charges payables 127,353
Provisions end of
Service, net 11,305
Zakat Paid -8,424
Net Cash Flow from
Operations 64,042
Cash Flow from
Investing Activities
Purchase of Property,
Plant and equipment -98,874
Proceeds from sale
of prop., plant and equipment 81
Proceeds from sale
investments 32,205
Investments -16,280
Commercial
Goodwill -24,500
Deferred Charges
incurred
Net cash used in
investing activities -107,368
Cash Flow from
Financing Activities
Short term loans -4,526
Long term loans 4,853
Changes in Bank
overdrafts -2,265
Dividend Paid
Minority Interest 28,387
Net Cash from /
(used in) financing activities 26,449
Increase
(Decrease) in bank balances and cash -16,877
Bank balances and
cash at the beginning of the Year 131,387
Movement in
translation, net -1,373
Bank balances and
cash at the End of the Year 113,137
The
following are extracts from subject's latest available consolidated financial
statements ending 31st December 2005 in Thousands SAR:
Basis of
consolidation
Entities controlled by the company are
classified as subsidiaries and consolidated regardless of the country of their
registration. Significant inter-company accounts and transactions are eliminated
upon consolidation.
Minority interests principally represent the
interest in Zamil Steel Buildings -Vietnam Company Limited, Middle East Air
conditioners Company Limited, Canam Asia Limited and Geoclima S.r.l., not held
by the company.
Subsidiaries have been consolidated based on
their financial statements for the year ended 31st December, with the exception
of Middle East Air conditioners Company Limited, whose financial year ends on
30 September.
Subsidiaries: Ownership
Percentage
Universal Building Systems Limited - Jersey 100
%
Zamil Steel Buildings Company - Egypt 100 %
Zamil Steel Building (Shanghai) Company
Limited 100 %
Cooline Europe Holdings GmbH- Austria
(Formerly,
Universal Airconditioning Technology) 100 %
Clima Tech Airconditioners GmbH - Austria 100
%
Zamil Steel, Polska - Poland 100
%
Zamil Steel Engineering India Private
Limited 100
%
Zamil Steel Buildings - Vietnam Company
Limited 90 %
Geoclima S.r.l. - Italy 85 %
Canam Asia Limited
65 %
Middle East Air conditioners Company Limited
- Saudi Arabia 51 %
CONSOLIDATED
BALANCE SHEET
31.
Dec.2005 31.Dec.2004
Assets
Employed
Property,
Plant and Equipment 342,958 322,905
Investments 68,025 33,544
Goodwill
on Acquisition 4,754 5,054
Deferred
Charges 10,830 7,267
Current
Assets
Inventories 972,769 833,920
Accounts
receivable and prepayments 678,270 618,710
Amounts
due from related parties 10,120 10,345
Cash
and cash equivalents 131,387 78,938
1,792,546 1,541,913
Current
Liabilities
Notes
and accounts payable and accruals 1,288,504 1,083,251
Amounts
due to related parties 5,830 6,527
Advances
from customers 71,418 59,564
Bank
overdrafts 3,850 3,687
Short
term loans 94,902 116,658
Current
portion of term loans 19,883 19,275
1,484,387 1,288,962
Net
Current Assets 308,159 252,951
734,726 621,721
Funds
Employed
Shareholders'
Equity
Share
capital 350,000 350,000
Statutory
reserve 62,579 51,943
Retained
earnings 148,814 55,088
Proposed
cash dividends - 42,000
Unrealised
gains on investments 34,525 7,975
Translation
loss on consolidation -8,403 -12,057
587,515 494,949
Minority
Interests 24,235 18,361
611,750 513,310
Non
Current Liabilities
Term
loans 48,940 45,575
Long
term payables 1,716 103
Employees'
terminal benefits 72,320 62,733
122,976 108,411
734,726 621,721
CONSOLIDATED
STATEMENT OF INCOME 2005 2004
Net
sales 2,369,493 1,966,671
Cost
of sales 1,866,710 1,561,751
Gross
Profit 502,783 404,920
Expenses
Selling
and distribution 186,432 179,982
General
and administration 159,285 120,853
Amortisation
of goodwill on acquisition 300 300
Amortisation
of deferred charges 2,899 14,328
348,916 315,463
Income
from Main Operations 153,867 89,457
Other
income 21,658 21,820
Financial
charges -50,586 -26,108
Income
before Zakat, Taxes and Minority Interests 124,939 85,169
Foreign
taxes -505 -428
Net
minority interests in results of subsidiaries -6,038 -7,883
Income
before Zakat 118,396 76,858
Zakat 12,034 6,703
Net
Income for the Year 106,362 70,155
Earning
per share (Saudi Riyals) 15.19 10.02
CONSOLIDATED
STATEMENT OF CASH FLOWS 2005 2004
Operating
Activities
Consolidated
income before zakat, taxes and minority interests 124,939 85,169
Adjustments
for:
Depreciation
51,192 46,776
Gain
on sale of property, plant and equipment -275 -255
Amortisation
of deferred charges 2,899 14,328
Amortisation
of goodwill on acquisition 300 300
179,055 146,318
Changes
in operating assets and liabilities:
Inventories -138,849 -314,379
Receivables -59,335 -120,455
Payables 212,782 375,283
Cash
from operations 193,653 86,767
Employees'
terminal benefits, net 9,587 6,140
Zakat
and foreign taxes paid -9,298 -7,109
Net
cash from operating activities 193,942 85,798
Investing
Activities
Purchase
of property, plant and equipment -71,990 -60,606
Proceeds
from sale of property, plant and equipment 520 465
Deferred
charges -6,462 -237
Investments
acquired -7,931 -25,569
Net
cash used in investing activities -85,863 -85,947
Financing
Activities
Bank
overdrafts 163 -542
Dividends
paid -42,000 -18,000
Term
loans obtained 24,404 6,204
Repayment
of term loans -20,431 -22,216
Change
in short term loans -21,756 51,817
Minority
interests, net -164 356
Net
cash (used in) from financing activities -59,784 17,619
Increase
in Cash and Cash Equivalents 48,295 17,470
Cash
and cash equivalents, at the beginning of the year 78,938 60,581
Movement
in translation difference - net 4,154 887
Cash
and Cash Equivalents, At the End of the Year 131,387 78,938
Ratio
analysis - Corporate
ZIIC
- Saudi
2005 2004
Liquidity
ratios:
Current
ratio 1.21 1.20
Acid
test ratio 0.55 0.55
Turnover
ratios:
Inventory
turnover 1.92 1.87
Collection
Period or DSO (in days) 103.05 113.26
Payables
period (in days) 130.81 142.62
Current
Asset turnover 1.32 1.28
Fixed
asset turnover 6.91 6.09
Turnover
of Working Capital 7.69 7.77
Debt
Management Ratios - Financial Leverage:
Liabilities
to Assets 72.43% 73.13%
Short-Term
Liabilities to Assets 66.89% 67.46%
Total
equity to Assets 26.48% 25.90%
Times
Interest Earned 3.47 4.26
Profitability
Ratios
Return
on Equity 18.10% 14.17%
Return
on Assets 4.79% 3.67%
Gross
Margin 21.22% 20.59%
Net
Profit margin 4.49% 3.57%
N.B.
Abbreviations:
DSO =
Days Sales Outstanding
N/A = Non Applicable
HISTORICAL FINANCIALS
The following financial data are extracts from the subjects'
Consolidated financial statements as of 31 December 2004 and are in Saudi
Riyals thousands (` 000 SAR):
CONSOLIDATED
BALANCE SHEET
As At 31 December 2004
2004 2003
SR
000 SR 000
Assets employed
Property, plant and equipment 322,905 312,323
Investments 33,544
Goodwill on acquisition 5,054 5,354
Deferred charges 7,267 20,537
Current assets
Inventories 833,920 519,541
Accounts receivable and prepayments 618,710 501,653
Amounts due from related parties 10,345 6,947
Cash and cash equivalents 78,938 60,947
1,541,913 1,088,722
Current
Liabilities
Accounts
payable and accruals 1,083,251 724,283
Amounts
due to related parties 6,527 5,073
Advances
from customers 59,564 42,303
Bank
overdrafts 3,687 4,229
Short
term loans 116,658 64,841
Current
portion of term loans 19,275 18,516
1.288.962 859,245
Net Current Assets 252,951 229,477
Funds
Employed
Shareholders'
Equity
Share
capital 350,000 300,000
Statutory
reserve 51,943 44,927
Retained
earnings 55,088 35,049
Proposed
cash dividends 42,000 18,00
Proposed
stock dividends - 50,000
Unrealised
gains on investments 7,975 -
Translation
loss on consolidation -12,057 (l0,727)
494,949 437,249
Minority Interests 18,361 10,122
513,310 447,371
Non Current Liabilities
Term loans 45,575 62,346
Long term payables 103 1,381
Employees' terminal benefits 62,733 56,593
108,411 120,320
CONSOLIDATED
STATEMENT OF INCOME
2004 2003
Net sales 1,966,671 1,561,238
Cost of sales 1,561,751 1,233,397
Gross Profit 404,920 327,841
Expenses
Selling and distribution 179,982 149,347
General and administration 120,853 103,105
Amortisation of goodwill on acquisition 300 300
Amortisation of deferred charges 14,328 14,097
315,463 266,849
Income from Main Operations 89,457 60,992
Other income 21,820 20,487
Financial charges -26,108 -21,087
Income before Zakat, taxes and minority
interests 85,169 60,392
Foreign taxes -428 -790
Net minority interests in results of
subsidiaries -7,883 -3,372
Income Before Zakat 76,858 56,230
Zakat 6,703 6,020
Net Income for the Year 70,155 50,210
Earning per share (Saudi Riyals) 10,02 7,17
The following financial data are extracts from the subjects'
Consolidated Balance Sheet and Profit & Loss Accounts as of 31 December
2003 and are in Saudi Riyals thousands (` 000 SAR):
CONSOLIDATED BALANCE SHEET 2003 2002
ASSETS EMPLOYED
Property, plant and equipment 312,323 264,576
Investment 0 1,950
Goodwill on acquisition 5,354 5,654
Deferred charges 20,537 32,392
------------- -------------
338,214 304,572
------------- -------------
CURRENT ASSETS
Inventories 519,541 427,472
Accounts receivable and prepayments 501,653 448,911
Amounts due from related parties 6,947 5,248
Bank balances and cash 60,581 76,027
------------- -------------
1,088,722 957,658
------------- -------------
CURRENT LIABILITIES
Accounts payable and accruals 724,283 592,837
Amounts due to related parties 5,073 4,205
Advances from customers 42,303 29,969
Bank overdrafts 4,229 3,565
Short term loans 64,841 83,199
Current portion of term loans 18,516 14,339
------------- -------------
859,245 728,114
------------- -------------
NET CURRENT ASSETS 229,477 229,544
------------- -------------
567,691 534,116
------------- -------------
FUNDS EMPLOYED
SHAREHOLDERS' EQUITY
Share capital 300,000 300,000
Statutory reserve 44,927 39,906
Retained earnings 35,049 58,860
Proposed cash dividends 18,000 36,000
Proposed stock dividends 50,000 0
Translation loss on consolidation -10,727 -10,070
------------- -------------
437,249 424,696
MINORITY INTERESTS 10,122 9,309
------------- -------------
447,371 434,005
------------- -------------
NON CURRENT LIABILITIES
Term loans 62,346 51,513
Long term payables 1,381 1,211
Employees' terminal benefits 56,593 47,387
------------- -------------
120,320 100,111
------------- -------------
567,691 534,116
------------- -------------
CONSOLIDATED STATEMENT OF INCOME 2003 2002
Net sales 1,561,238 1,406,064
Cost of sales 1,233,397 1,108,070
------------- -------------
GROSS PROFIT 327,841 297,994
------------- -------------
EXPENSES
Selling and distribution 149,347 136,937
General and administration 103,105 90,313
Amortization of goodwill on acquisition 300 288
Amortization of deferred charges 14,097 10,401
------------- -------------
266,849 237,939
------------- -------------
INCOME FROM MAIN OPERATIONS 60,992 60,055
Other income 20,487 13,373
Provision no longer required 0 3,501
Financial charges -21,087 -22,058
INCOME BEFORE ZAKAT, TAXES
AND MINORITY INTERESTS 60,392 54,871
Foreign taxes -790 -231
Net minority interests in results of
Subsidiaries -3,372 -3,851
------------- -------------
INCOME BEFORE ZAKAT 56,230 50,789
Zakat 6,020 5,406
------------- -------------
NET INCOME FOR THE YEAR 50,210 45,383
------------- -------------
CONSOLIDATED STATEMENT OF CASH FLOWS 2003 2002
OPERATING ACTIVITIES
Consolidated income before zakat,
Taxes and minority interests 60,392 54,871
Adjustments for:
Depreciation 42,111 43,666
Profit on sale of property,
plant
And equipment -35 -25
Amortization of deferred
charges 14,097 10,401
Amortization of goodwill on
acquisition 300 288
------------- -------------
116,865 109,201
Changes in operating assets and
Liabilities:
Inventories -92,069 -29,759
Receivables -54,441 -79,987
Payables 144,194 117,333
------------- -------------
Cash from operations 114,549 116,788
Employees' terminal benefits, net 9,206 6,314
Zakat and foreign taxes paid -7,186 -6,192
------------- -------------
Net cash from operating activities 116,569 116,910
------------- -------------
INVESTING ACTIVITIES
Purchase of property, plant and
Equipment -90,574 -41,577
Proceeds from sale of property,
Plant and equipment 751 1,251
Deferred charges -2,242 -13,873
Investment in a subsidiary 1,950 -1,950
Goodwill incurred during the year 0 -732
------------- -------------
Net cash used in investing activities -90,115 -56,881
------------- -------------
FINANCING ACTIVITIES
Bank overdrafts 664 1,085
Dividends paid -36,000 -30,000
Term loans obtained 29,349 29,534
Repayment of term loans -14,339 -26,620
Change in short term loans -18,358 -3,391
Minority interests, net -2,559 -1,371
------------- -------------
Net cash used in financing activities -41,243 -30,763
------------- -------------
(DECREASE)/INCREASE IN CASH -14,789 29,266
Cash at the beginning of the year 76,027 44,153
Movement in translation different - net -657 2,608
------------- -------------
CASH AT THE END OF THE YEAR 60,581 76,027
------------- -------------
The following historical financial data are extracts from the subjects'
Balance Sheet and Profit & Loss Accounts as of 31 December 2002 and are in
Saudi Riyals thousands (` 000 SAR):
BALANCE SHEET 2002 2001 2000
Current Assets 530,186 418,325 430,369
Inventory 427,472 397,713 387,283
Investments 1,950 0 0
Fixed Assets 264,576 275,068 273,913
Other Assets 38,046 34,130 29,201
Total Assets 1,262,230 1,125,236 1,120,766
Current Liabilities
Subject is a company operating
in a country where annual accounts and financial results are not required to be
filed or to be made available to the public.
PREMISES
Subject has its head offices located at the
above address and has over 35,000 square metres of manufacturing facilities
producing a total capacity of 3 million tonnes per year of steel located in
Dammam. One Air Conditioners
manufacturing unit also located in Dammam covering a total floor space of
115,000 square metres (1 million square feet).
The subject has branches located in Dammam, Riyadh and Jeddah and has
two overseas manufacturing plants located in Egypt and Hanoi, Vietnam and
overseas branches located in Cairo, Alexandria, Port Said, Kuwait, Manama,
Doha, Dubai, Abu Dhabi, Muscat, Sanaa, Amman, Beirut, Assuit, Chennai, Lahore,
Colombo, Dhaka, Khartoum, Addis Ababa, Accra, Bangkok, Yangon, HoChilMinh,
Shanghai, Manila, Seoul, Johannesburg, Prague, Bucharest, Athens, Paris and
Warsaw.
REFERENCES
Bank(s)
Al Bank Al Saudi Al Fransi
P.O. Box 2792
Dammam 31932
Saudi Arabia
Tel : (+966) (3) 827 1533
National Commercial Bank
Main Branch
King Faisal Street
P.O. Box 13
Dammam 31411
Saudi Arabia
Tel : (+966) (3) 833 0311
Fax : (+966) (3) 833 2419
Saudi British Bank
Dammam Main Branch
P.O Box 1618
Dammam 31441
Saudi Arabia
Tel : (+966) (3) 865 6000 / 832 1411 / 832 1666
Auditors(s)
Deloitte & Touche Bakr
Abulkhair
Olaya Street
P.O. Box: 213
Riyadh 11411
Saudi Arabia
Tel: (+966) (1) 463 0018
Tel: (+966) (1) 463 0865
Ernst & Young
Certified Public Accountants
9th Floor, Floor Arabia Building
Al Khobar 31952
Saudi Arabia
Tel : (+966) (3) 857 1055
Fax : (+966) (3) 857 9831
Trade Suppliers
British Steel PLC
9, Albert Embankment
London SE1 7SN
United Kingdom
Tel : (+44) (207) 735 7654
Fax : (+44) (207) 587 1142
Tlx : 916061 G
COMMENT
Subject is a LARGE company, which was
founded in 1976 as a Limited Company wholly owned by the local Al Zamil group
engaged in steel fabrication. In 1998, it was converted into a Public Joint
Stock Company with a share capital of SAR300 million becoming a Holding company
to three industrial divisions and former companies of the Al Zamil group with
prominent Gulf investors becoming shareholders, including Al Olayan Group of
Saudi Arabia (10 %), Juma Al Majed Group of the UAE (10 %), Gulf Investment
Company of Kuwait (08 %) and the local Bin Mahfouz Group alongside several
others holding the remaining (12 %).
On February 8th, 2002, the subject was reported to have listed on the
Saudi Stock Exchange.
Zamil Industrial Investment Co - ZIIC's
factories and industrial facilities are located throughout the Kingdom. These
factories produce three major products, namely: Pre-Engineered Buildings, Air
Conditioners and Glass. Overall, ZIIC activities can be summarized as
manufacturing, selling, supplying and maintaining - pre engineered steel
buildings, air-conditioning and architectural glass.
ZIIC expanded its operations globally exporting
its products to more than 40 countries around the world through a network of 29
representative offices. This expansion strategy also resulted in the
inauguration of two Steel factories both in Vietnam and Egypt, in addition to
the acquisition of Air Handling Units factory in Austria.
Zamil Air Conditioners (ZAC), one of the
unit companies of Zamil Industrial Investment Company (ZIIC), is the largest
supplier of air conditioners in the Middle East. It manufactures and markets a
whole range of air conditioners - from room air conditioners to package units
to large commercial and industrial range air conditioners, including chillers.
ZAC was the first air-conditioning manufacturing facility in the Kingdom set up
in 1974.
Subsequently, in 1978, Zamil Steel Industries was formed. Ever since its
inception, it has supplied over 30,000 buildings to more than 70 countries
across the world becoming the largest steel manufacturer in the Middle East and
Asia. It has over 35,000 square metres
of manufacturing facilities under one roof and a production capacity of 95,000
metric tonnes per year.
Zamil Glass was also founded in 1978, and is
a leading processor of architectural glass in the GCC region. Operating from
the most sophisticated glass-processing factory in the Middle East, the company
produces a wide range of high quality processed glass for applications in
residential and commercial construction. All three companies under the Zamil
Industrial Investment Company umbrella are leaders in their respective fields
in the Middle East.
Zamil Steel Industries has three separate
factories in the Kingdom to produce pre-engineered steel buildings, structural
steel works and galvanized lattice towers.
In 1999, Zamil Steel commissioned two factories for the production of
pre-engineered steel buildings; one in Egypt and one in Vietnam. With over 51 offices and an annual
production capacity exceeding 6 million square meters of buildings, Zamil Steel
is considered the largest pre-engineered building manufacturer in Asia and
Africa.
The subject was reported to have ranked 23rd amongst Saudi
Arabia's Top 100 companies in 2003 in terms of Sales and Assets, and 23rd
in 2004 and 20th in 2005 in terms of Sales.
ZIIC is headquartered in Dammam, and employs
around 4,500 people in 50 countries exporting to more than 70 markets.
In our opinion based on the latest available
annual financial statements for the period ended 31 December 2005, subject has
a steady but relatively low liquidity with below levels in Acid test with high
inventory position. Subject has a favourable positive gap in cash management
with 27 days between collection and payables but in our opinion 130 days is
slightly risky on suppliers. Subject capital structure indicates that subject
relies more on short terms with small margin for borrowings of 3.47 times. In
the end subject's profitability remained always positive but low due to high
cost of good sold and financial expenses.
Steel & Iron
industry in Saudi Arabia
The construction boom resulted in the
increase of domestic demand for the steel and iron industry in Saudi Arabia.
Value of ordinary metals and their products been exported by the Kingdom during
the second quarter of 2003 were SAR 510 million against SAR 753 million at the
same period of 2002, with a decrease of SAR 243 million, a 32%. The quantity
exported in the second quarter of 2003 was 269 thousand tonnes compared to 340
thousand tonnes at the same period of 2002, with a drop of 71 thousand tonnes,
a 21%. Exported metals were mainly steel and iron (SAR 389 million), aluminium
(SAR 70 million) and copper (SAR 21 million)
Saudi Arabia has the largest steel
manufacturing company in the Middle East and one of the largest fully
integrated complexes of its kind in the world, namely Saudi Iron and Steel Co.
(HADEED), a 100% subsidiary of Saudi Basic Industries Corporation (SABIC),
which produces long steel products and flat steel products with a production
capacity for in 2005 of 2,706,000 metric tonnes of long steel products and
1,059,000 metric tonnes of flat steel products and 3,080,817 metric tonnes of
steel billets all this represent supply of 60% for long and 59% of flat
products of Saudi Arabia's requirements and products which are also exported to
GCC countries, the USA, Europe, Korea and India.
Air Conditioning
Industry in Saudi Arabia
Saudi Arabia's air conditioning is a USD 550
million industry. It is one of the most lucrative and competitive air
conditioning markets in the Middle East. The market structure consists of
yearly sales of around 700,000 units divided into window air conditioners
valued at USD 213 million and split air conditioners valued at USD 147 million.
The split system is dominated by both Japanese and Korean manufacturers while
central air conditioning is dominated by USA firms. The Kingdom is home of the
first and largest manufacturer of air conditioners, namely Zamil Air
Conditioners (ZAC). The latter is a local company which was established in
1974. International brands including General Electric, Hotpoint and RCA, have
already established a solid foothold in the Saudi market.
Company Size: LARGE
Business Trend: GROWING
Payments: NO COMPLAINTS
Maximum Credit: USD 1,000,000
Credit Requested: USD 255,000
Our Opinion: In our opinion the subject
should be good for this amount.
Saudi
Arabia (Kingdom of Saudi Arabia, KSA) - Country Risk Analysis:
Kingdom of Saudi Arabia (KSA) is
a "Gulf Cooperation Council" (GCC) country, with a population of
24.57 million (UN, 2004 revised). KSA is considered the largest economy in the
MENA area (Middle East and North Africa) with a GDP of USD 214.74 billion in
2003, ranking 23rd worldwide.
In 2004, estimated GDP recorded
USD 248.14 billion where 46.78% was attributed to the oil sector. This marks an
increase of 5.31% compared with 2003 where the oil sector accounted for 41.47%.
The critical role of adding the reliance on the oil sector was attributed to
the increase in world oil prices with prices on New York Mercantile Exchange
surpassing the psychological barrier of $50 per barrel, and to the high
pressure from the international community to raise production.
In fact, Saudi Arabia has the
largest crude oil deposits in the world. It's also the biggest producer with
9.47 million barrels a day in May 2005, representing 31.62% of total OPEC
(Organization of Petroleum Exporting Countries) production and 11.18% of World
production. Though KSA has benefited greatly from rising oil prices, the
Kingdom is making extensive efforts to lessen its reliance on oil and
petrochemical revenues. There are several plans and structural changes being
made. For example, new codes were introduced to stimulate local and foreign
investments in the solid minerals industry in what is anticipated to be the
third largest industry after oil and petrochemicals. KSA has the largest
phosphate deposits in the world and is rich with gold, silver, lead, zinc,
uranium, iron ore, copper, bauxite, coal, and tungsten.
The insurance sector is also
witnessing structural changes. In 2005, out of 48 insurance companies operating
in the country, 22 were licensed. Among the requirements for licensing are a
feasibility study and a bank guarantee equal to the company's capital, to be
presented to SAMA (Saudi Arabia Monetary Agency). It is reported that the
Banking industry will soon be open for foreign investments.
In first quarter 2005, the
country's economic performance seems to be repeating the 2004 scenario of
slowdown in economic growth as shown in the Banking indicators. Total bank
deposits went up by 6.1% during 1st Quarter 2005 compared to an
increase of 6.7% during the preceding quarter. Total commercial banks' claims
on the private and government sectors (bank credit and investments) rose during
the 1st quarter of 2005 by 5.7 percent compared to an increase of
4.3 percent in the preceding quarter. The ratio of Total Claims of commercial
banks on the private and public sectors to Total Bank Deposits amounted to 39.6
percent at the end of the first quarter of 2005 compared to 49.7 percent at the
end of the same period of the preceding year.
The United States of America is
KSA's largest trade partner and foreign investor. In 2004, bilateral agreements
between the two countries reached USD 26 Billion. Following complex
negotiations which started back in 1995, KSA finally joined the WTO (World
Trade Organization) in November 2005. KSA have also signed bilateral agreements
with the European Union.
In the end of 2002, the IPO
(Initial Public Offering) of state-owned Saudi Telecom became the official
start of the privatization process. Over the next ten years, some 20 economical
sectors (eg; electricity and railway) are expected to change from state to
private sector. Many companies are now preparing for privatization such as
Saudi Arabian Airlines and Saline Water Conversion Corporation.
The country's Real GDP Growth in
2004 was 5.3% which is the average for the MENA region (Rank 8). However, this
represents a slowdown in growth from 2003 Real GDP growth of 7.5% which could
be attributed to the increased political and security risks.
For the past three years, there
was an overall rise in political and security risks. The US diplomatic missions
were closed down several times due to security threats and several terrorist
incidents against civilians occurred.
KSA has been criticised with
regards to human rights issues, particularly concerning women. Whipping remains a routine corporal
punishment imposed by courts as a main or additional sentence. Court
proceedings fall far short of international standards for fair trial, and take
place behind closed doors. Defendants do not have the right to formal
representation by a lawyer, and in many cases are not informed of the progress
of legal proceedings against them. Defendants may also be convicted solely on
the basis of confessions obtained under duress, torture or deception.
However, improvements and
reforms have occurred such as the creation in March 2004 of the "National
Human Rights Association (NHRA)" that included 10 women. There were
municipal elections in 2005. Economic and social rights of foreign labourers
also witnessed improvements.
The country ranks 9th
in the MENA region and 80th worldwide in terms of corruption control
(World Bank, 2005).
In August 2005, Saudi Arabia's
King Fahd died and there was a smooth transition of power following the ancient
tradition of "Mubayaah", a tradition that may change during the
current king's rule. Those in line of succession are at an advanced age, which
has lead to calls for a change in the succession method.
Regardless of
current and past economic, political, and security situations in the Middle
East and North African countries (MENA); there is an overall rise in the
country risk for each of these countries. This rise is caused by factors
outside the control of their respective countries. The ongoing war on terror,
the aftermath of the war on Iraq, the disputes with Iran and Syria, and other
factors are increasing the likelihood of political and security instability,
and the likelihood of military actions or economic sanctions. In view of these
events, and in our opinion, exporters to the MENA region should exercise an
appropriate degree of caution.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)