Strategic Blueprint
1

Business Model

Integrated platform driving sustainable value creation

At Riyadh Cement, we create sustainable value for stakeholders by combining an advantaged central-region footprint with operational excellence, disciplined governance, and an integrated sustainability roadmap. Our capabilities in white and grey cement production, supported by modern production lines and reliable logistics, allow us to serve Vision 2030 giga-projects and regional export markets while upholding the highest standards of safety, quality, and environmental stewardship.

Financial strength and shareholder-focused return

Consistent profitability and cash generation supported by disciplined cost management, positive operating cash flow, and resilient margins driven by pricing, product mix, and prudent working-capital management.

Shareholder-focused capital returns through an established dividend policy allowing interim dividend; FY-2025 cash dividends totaled SAR 192.0 million declared/paid during the year.

Robust balance sheet and strong governance framework underpinned by effective internal controls, risk-based internal audit, and active Audit Committee oversight.

Operational scale, flexibility, and efficiency

Scaled, flexible capacity in the Kingdom's center (Al-Muzahimiyah, northwest of Riyadh) supported by reserves of high-purity limestone, ensuring a reliable supply for the Central Region and national projects.

Modern efficiency & reliability through continuous improvement, digital monitoring, and preventive maintenances supporting high kiln availability, energy optimization, and stable product quality.

Grey clinker and a dedicated white clinker line give product-mix flexibility, enabling the Company to respond to shifts in demand across infrastructure, commercial, and architectural applications.

Human capital development and safety culture

Saudization program "Himmah" Industrial Operations diploma building Saudi talent pipelines; structured learning pathways culminate in employment and career progression in operations and maintenance.

Safety-first culture anchored in ISO 45001, permit to work rigor, and contractor-safety standards; leadership safety walks and near miss reporting strengthen discipline.

Performance and inclusion through clear role accountability, competency frameworks, and equitable opportunities that support national localization goals.

Customer relationships and diversified demand base

Tier-one approvals and long standing partnerships with ready-mix majors, infrastructure contractors, government programs, and strategic distributors in the Central Region and beyond.

Customer-centric service model assured availability, on-spec quality, responsive technical support, and dependable delivery performance.

Diversified demand base across ready-mix, precast, blocks, mortars, GRC, finishing, and decorative applications; participation in Vision 2030 giga and mega projects.

Diversified product offering and technical capabilities

Grey Cement

  • Ordinary Portland Cement (Type I / CEM I grades)
  • Sulfate-Resistant Cement (Type V / SR)
  • CEM II grades (e.g., limestone-blended) for durability and workability

White Cement

CEM I 52.5N and CEM II/A-LL 42.5N for architectural concrete, terrazzo, tiles, artificial stone, grouts, and decorative & finishing works.

Value-added technical support for mix designs, troubleshooting, and application best practices. Certified quality (ISO 9001) with products conforming to SASO, ASTM, and BS EN standards.

Value created through financial and operational performance

Financial performance

  • 1.73 earnings per share
  • 207.8 million net profit
  • 216.2 million operating profit
  • 787.6 million Revenue

Cash to shareholders

  • 192 million dividends for the year
  • 96% payout ratio in line with policy

Operational excellence

  • 98% of rated capacity, kiln utilization reached
  • 93.9% (white) average kiln availability
  • 90% (grey) average kiln availability
  • 107 kWh/t-cement Specific electrical energy

Market footprint

  • 20.6% of sales white cement share
  • 0.3% of revenue (11,192 tons) exports
  • 99.7% of revenue Domestic sales

Customer service

  • 6.4% in core markets
  • Maintained disciplined pricing and strong regional market share and more than 50% of White Cement

People & safety

  • 3,626,304 safe man-hours achieved in 2025

Environmental progress

  • CO₂ intensity improved compared to the last year, reflecting continued efficiency gains
2

Alignment with Saudi Vision 2030

01

A Prosperous Society

To achieve the happiness and fulfillment of all citizens and residents through a high quality of life and an attractive living environment.

People development and Saudization

We invest in structured learning pathways internal/external courses, leadership programs, on the job training, and run a dedicated Skills Development Center at site. Our Himma cooperative diploma (the first of its kind in the Kingdom's cement industry) prepares Saudi youth for technical roles and ends with employment. We ensure an inclusive workplace and provide roles tailored for people with special needs.

Health, Safety & Well-being

We maintain certified systems SO 45001 for OHS and ISO 14001 for environmental management and operate to OSHA/NFPA standards, with permits in place for safe operations.

Community engagement

We host university trainings and site visits, collaborate with local authorities in Al-Muzahimiyah on vocational programs, and run health awareness and volunteer initiatives underpinned by a social-responsibility agenda that earned external recognition.

02

A Growing Economy

To build a diversified, sustainable economy that creates jobs for Saudis and attracts global talent.

Industrial backbone for Vision 2030 projects

Our Riyadh location provides advantage access to mega projects Qiddiya, Diriyah, Al Murabba, King Salman Park, Sports Boulevard, Riyadh Metro (Line 7), and major sports infrastructure ensuring demand visibility and logistics efficiency.

Efficient, flexible production

Three AI-enabled lines (dual white/grey capability) support high availability and quality at scale; product slate spans OPC, SRC, CEM II and premium white cement grades.

Sustainability as competitiveness

We are implementing waste heat recovery (ORC), energy efficiency upgrades, and circular economy initiatives (e.g., slag reuse), while launching a Sustainability Roadmap and materiality assessment.

03

An Empowered Nation

To build an effectively governed, transparent, accountable country that enables citizens and organizations to pursue opportunities and advance the collective good.

Corporate governance framework

Riyadh Cement affirms it applies all mandatory provisions of the CMA Corporate Governance Regulations; Board committees (Audit; Nomination & Remuneration) oversee risk, controls and remuneration.

Internal control & assurance

Risk-based Internal Audit, Audit Committee review and external audit together concluded no significant weaknesses and that controls are effective.

Fair returns & disclosure

By-laws allow interim dividends (annual/semi-annual/quarterly) in line with CMA guidance; investor communications include timely Tadawul disclosures and IR materials.

3

Strategy & KPIs

Riyadh Cement's strategy is built to convert the Kingdom's sustained construction momentum into profitable, resilient and responsible growth. For 2026, execution will center on five focus areas: product development, market-share expansion, operational efficiency, innovation & digital transformation, and ESG with carbon-footprint reduction.

1 Pillar 1 — Profitable Growth

STRATEGIC INTENT

Protect core share in the Central Region, deepen participation in giga/mega-projects, and sustain a balanced export book particularly in higher-value white cement while returning excess cash to shareholders.

WHERE WE ARE IN 2025

Revenue declined 0.2% YoY to SAR 787.6 million, reflecting softer pricing conditions. Net profit reached SAR 207.8 million. This was primarily attributable to a reduction in average selling prices, notwithstanding an increase in sales volumes, in addition to the recovery of SAR 25 million from the Zakat, Tax and Customs Authority during 2024. Riyadh Cement maintained a market share of approximately 6.4%, ranking 7th nationally, with an estimated 20.6% share in the Central Region and active participation in 7 major projects across Riyadh.

2 Pillar 2 — Operational Excellence

STRATEGIC INTENT

Lift throughput, quality and unit-cost competitiveness via reliability engineering, lean manufacturing and disciplined planning across our dual-product platform.

WHERE WE ARE IN 2025

Riyadh Cement increased grey-clinker production by ~34% and white-clinker by ~46% through 2025, strengthening fixed-cost absorption and supporting segment profitability. Our modern production lines have demonstrated the ability to operate at up to ~98% of rated capacity without compromising quality. Reliability programs, including predictive maintenance, have reduced downtime by ~10%, while stabilizing bag-filter performance to curb fugitive dust.

Customer impact: Segment reporting shows grey-cement revenue of SAR 625.4 million (-0.48% YoY) on higher volumes despite lower average selling prices, while white-cement revenue of SAR 162.2 million (+0.76% YoY).

3 Pillar 3 — Digital Transformation

STRATEGIC INTENT

Deploy Industry 4.0 tools, including artificial intelligence and advanced analytics technologies to reduce process variability, strengthen asset care, and shorten order-to-delivery cycles, while accelerating digital transformation across operational processes and supply chains to support data-driven decision-making and improve overall performance efficiency.

WHERE WE ARE IN 2025

Riyadh Cement was recognized among the Top-10 national companies (out of ~1,300) for Industrial Transformation. We began deploying an AI Quality Optimizer that predicts clinker-quality deviations and auto-adjusts operations, and we are rolling out Digital Plant Projects across all three plants: real-time production monitoring, predictive maintenance, quality-control systems and digital-twin optimization.

Information security & data integrity: Digitalization is matched with controls; we operate under ISO 27001 for information security and maintain ISO 9001 quality-management processes that anchor data governance and traceability.

4 Pillar 4 — Sustainability & Energy Transition

STRATEGIC INTENT

Reduce carbon and resource intensity, while securing long-term energy competitiveness and compliance with evolving standards.

WHERE WE ARE IN 2025

We delivered a 3% reduction in specific electrical energy consumption per ton of cement (107 kWh/t vs. 110.4 kWh/t in 2024). Our Waste-Heat Recovery (ORC) program—the first of its kind at a Saudi cement plant—is under construction with 12.7 MW (gross) cumulative capacity expected.

Specific energy: 3% vs. 2024 baseline; sustain reductions through ORC commissioning and process debottlenecking

WHR/ORC: 12.7 MW (gross) under construction; commission phases and integrate generation into plant energy dashboards

Afforestation: 10,000 cumulative seedlings produced; continue scaling toward the Million Tree target aligned with the Saudi Green Initiative

5 Pillar 5 — Human Capital & Culture

STRATEGIC INTENT

Build a safe, capable and engaged workforce; localize critical skills; and reinforce a culture of integrity, inclusion and performance.

WHERE WE ARE IN 2025

Saudization program "Himmah" Industrial Operations diploma continues to train and employ Saudi talent; more than 150 Saudis have been trained and hired through the program, supported by our Skills Development Center at site. We maintain ISO 45001 OHS certification and align policies with OSHA/NFPA standards. By FY2025 we recorded 3,626,304 safe man-hours with zero LTI, reflecting an entrenched safety culture.

Strategic link

Product development

add new products aligned to evolving market needs

Market-share growth

deepening presence across priority segments and channels

Operational efficiency

lift throughput, reliability and unit costs

Innovation & digital

accelerate automation, analytics, and process digitization

ESG & carbon

strengthen environmental, social and governance standards with a focused program to reduce our carbon footprint