Arabian Tile Company - ARTIC 3

Over the past few months we have been sharing our plans for growth throughout the Company.



We are making important choices. The Directions of future have been set and ARTIC teams will celebrate the success.

The business units are aligning their action plans with ARTIC Strategy. The Winning Spirit, the Open Minds, the Generous Hearts and the strong Arms will change the future of ARTIC forever.

The Leadership Team has full alignment with the Company Strategy and start seeing the fruits of our progress over the past year. I am very proud of what we have accomplished together.



We are beginning to see momentum:



1. Volume Growth of 140% for the past 6 months versus best results ever achieved by ARTIC.

2. Gross Margin is almost doubled versus a year ago with solid progress in manufacturing cost reduction and sales better values.

3 . Cash improvements by all indicators which help in looking for new investments.

4. ARTIC is a main contributor of the main projects throughout the country with high reputation of quality provider.

This is good progress, we are delivering on commitments. We can now move ahead with Confidence that we have reasonable goals for growth based on reasonable assumptions.



I believe we can be Confident that strategic choices we are making about where to play and win will accelerate growth. These include:



1. Refocusing on core categories and big businesses where ARTIC is one of the main players in the market to become Number one.

2. Developing faster growing, higher margin, more asset-efficient businesses with high leadership potential like New Cladding Business and New flooring solutions

3. Focusing on our top 10 customers, and the main areas, where huge projects are established.

4. Prioritizing our main businesses and making the right choices about what to do with non-core brands and under-performing business.

5. Building the organization Capacity by more injection of the qualified Saudis in every function of the company and give them every support to grow and lead.



This progress and these choices are important signs that we are restoring ARTIC ability to compete and grow, we still have a lot of work ahead of us to turn our early momentum into sustained result. But with the right organization, this work will be just another Success Story.

What l see is the spirit of resourcefulness and pride that so many of you- in every part of the Company - are bringing to the challenge that faces us.

Stay focused on the customer. Make tough and clear choices every day about the work you do and the value you create, renew your commitment to operational excellence in every part of your work.

With Spirit and Pride we will make, together, ARTIC as the Regional Leader of Concrete Materials Market.