28Issue

December 2014

Contents

For further information please contactCorporate Communications Department

Fax: (+966 13) 810 8190 | Email: impact@zamilindustrial.comwww.zamilindustrial.com

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Chief Executive Officer AddressZamil Industrial Third Quarter 2014 Financial ResultsZamil Process Equipment Awarded New Contract in RiyadhZamil Steel Construction Co. Awarded New Contracts in Jeddah and DammamZamil Structural Steel Awarded New Contract in JazanBCOMS’ Rockwool Panels Receive Warrington Certification ApprovalZamil Higher Institute for Industrial Training Receives Accreditation from Edexcel-UKZamil Industrial Honored for Sponsorship of the National Campaign for Energy Consumption RationalizationInvestor Relations Department Arranges for Investors to Tour Zamil Industrial Facilities Zamil Industrial Gold Sponsor at Exhibition and Symposium of Projects With Distinction 2014Zamil Industrial Participates in The Big 5 Show 2014 in DubaiZamil Steel Participates in Construct India 2014Zamil Industrial Companies Participate in the Exhibition of SABIC Technical MeetingZamil Industrial Participates in Wadaef Job Fair 2014Zamil Industrial Holds Workshop on Interaction and Integration of Employees with Disabilities Zamil Industrial’s Internal Auditing Department Conducts Fraud Controls SeminarZamil Steel Vietnam Conducts Technical Seminar in CambodiaZamil Steel Platinum Sponsor at Structural Steel Construction Summit 2014Zamil Industrial LPD Achievements During the Third Quarter of 2014

MESSAGE

Dear Colleagues,

Greetings and welcome to the latest issue of Impact.

The third quarter of 2014 has been both busy and profitable for all Zamil Industrial sector businesses. The articles in this issue illustrate the many outstanding accomplishments, which have been recognized and acknowledged at the highest levels of industry and government.

In preparation for the future, all business units remain actively involved in both local and international exhibitions and industry events, gaining global exposure while connecting with other industry leaders and potential clients from around the world. At offices and manufacturing plants, efforts to expand our capabilities also move forward as we implement new technologies to increase efficiency and develop additional opportunities for vital workforce education and training.

These efforts and achievements help us to meet the needs of our growing clientele and will contribute to the expansion and diversification of the company as we move into the year ahead. As we expand, we will also remain deeply committed to the well being of our employees, the welfare of our communities and the many people who have worked with such dedication to ensure our success.

I invite you to enjoy this issue of our newsletter and hope that its content will inspire all readers to work toward the realization of our company’s full potential. We will employ the strength and vision needed to guide our evolution as a global business leader occupying a pivotal position in the rapidly changing future.

Kind Regards,

Abdulla M. Al ZamilChief Executive Officer

2 FINANCIAL RESULTS

Zamil Industrial Posts SAR 56.4 Million Net Profits in Third Quarter 2014

Comparison Charts of Q3 2012-2014 Financials (nine months)

Zamil Industrial Investment Company (Zamil Industrial) has announced its consolidated financial results for the period ending 30 September 2014.

Net profits for the third quarter of 2014 were SAR 56.4 million (USD 15.1 million), compared with SAR 48.9 million (USD 13.1 million) during the same period in 2013, an increase of 15.2 percent, and compared with SAR 73.1 million (USD 19.5 million) posted in the second quarter, a decrease of 22.8 percent.

Gross profits for the third quarter of 2014 were SAR 311.7 million (USD 83.1 million), compared with gross profits of SAR 316.8 million (USD 84.5 million) for the same period in 2013, a decrease of 1.6 percent.

Operating profits during the third quarter were SAR 89.7 million (USD 23.9 million), compared with SAR 87.9 million (USD 23.4 million) for the same period in 2013, an increase of 2 percent.

During the nine months ended 30 September 2014, net profits were SAR 195.4 million (USD 52.1 million), compared with SAR 175.2 million (USD 46.7 million), an increase of 11.5 percent over the same period in 2013.

Gross profits for the nine months were SAR 933.3 million (USD 248.9 million), compared with SAR 931.4 million (USD 248.4 million) for the same period in 2013, an increase of 0.2 percent.

Operating profits for the nine months were SAR 285.9 million (USD 76.2 million), compared with SAR 282.9 million (USD 75.4 million) for the same period in 2013, an increase of 1.1 percent.Earnings per share grew to SAR 3.26 (USD 0.87) from SAR 2.92 (USD 0.78) during the same period in 2013.

140,066 175,246 195,416

Net profit(SAR 000’s)

797,297 931,431 933,292

Gross Profit(SAR 000’s)

250,789 282,932 285,977

Operating Profits(SAR 000’s)

2.33 2.92 3.26

Earnings Per Share(SAR)

1,394,847 1,522,203 1,680,553

Stockholders’ Equity(SAR 000’s)

201420132012 201420132012 201420132012

201420132012 201420132012

3STRATEGIC GROWTH

According to the contract, Zamil Process Equipment Co. will supply 36 steam drums (high pressure, intermediate pressure and low pressure) that weigh approximately 1,800 metric tons in total for the PP 13 & 14 Combined Cycle Power Plants project owned by the Saudi Electricity Company and located near Riyadh. The shell thickness of each high-pressure drum is 120 mm and the material used for construction is SA 299 Grade B.

Each plant will have a capacity of between 1,600 and 1,950 megawatts and consists of

two blocks, with each block composed of three gas turbine generators, three heat recovery steam generators and one steam turbine generator. The gas turbines are capable of operating in a simple cycle mode through the use of a bypass stack and also in a combined cycle mode.

Zamil Process Equipment Company was established in 2003 and offers a large production capacity with expertise in the manufacturing and maintenance of various industrial products, providing life cycle solutions for critical heat

and mass transfer equipment for clients in Saudi Arabia and the Middle East.

The company’s fabrication area of over 100,000 square meters offers a production capacity of 15,000 metric tons per year, enabling the company to undertake major mechanical contracts that service a wide variety of heavy industries and process plants, including petrochemical plants and refineries, steel and aluminum mills, fertilizer plants, desalination plants, and power plants.

Zamil Process Equipment Awarded SAR 29 Million Contract in Riyadh

Zamil Process Equipment Co. Ltd., a subsidiary of Zamil Industrial, was recently awarded a contract worth approximately SAR 29.4 million (USD 7.85 million) by STF S.p.A. Italy to supply steam drums of various sizes and capacities for the Riyadh Power Plant 13 (PP 13) and Riyadh Power Plant 14 (PP 14) project in the central region of Saudi Arabia.

4 STRATEGIC GROWTH

The scope of the contract calls for the design, fabrication, supply and erection of more than 570 MT of pre-engineered steel buildings as well as the provision of all EPC works, including civil works, electrical works, mechanical works and finishing work, for the new Zamil Alpla plant located at the Third Industrial City in Jeddah, in

the western region of Saudi Arabia. “ZSCC specializes in handling turnkey projects that require the utmost attention to quality, service and detail due to their complexity. We offer extensive experience in coordinating our efforts to deliver the highest-quality customized solutions to our clients, who

are often leading regional and multinational companies,” said Mohammed Al Sahib, director of ZSCC. “We look forward to the completion of this state-of-the-art facility and are proud to be a part of the developmental impact it is expected to have on the region.”

The scope of the contract includes the design, fabrication, supply and erection of approximately 550 MT of pre-engineered steel buildings as well as the provision of all EPC works, including civil works, electrical works, mechanical works and finishing work, at the industrial facilities of Tamimi warehouse complex, located in the eastern region of Saudi Arabia.

The warehouse project is a fast-track undertaking that includes many components. It will require an extraordinary level of attention to detail, due to complex safety and security requirements, which must be satisfactorily completed within a challenging time frame.

“ZSCC is well-suited to this type of project, since we specialize in turnkey operations and maintain the level of staffing and supply connections needed to ensure the quickest completion time possible,” said Mohammed Al Sahib, director of ZSCC. “Our company has been built upon a reputation for promptness, accuracy and quality, and we look forward to applying our coordination skills and access to the highest quality materials to this new project.”

Zamil Steel Construction Company was established in 2007 to cater to clients that require a one-stop shop for

industrial and commercial steel buildings. The company provides engineering, procurement and construction to clients who are setting up new projects in different market sectors, as well as design, fabrication and supply of steel buildings; related civil and concrete works; erection of the steel buildings; firefighting and fire alarm systems; architectural materials; and mechanical, electrical and plumbing works on the basis of turnkey contracts through full site management teams.

Zamil Steel Construction Company (ZSCC), a subsidiary of Zamil Industrial, has recently been awarded a turnkey project contract valued at SAR 35 million (USD 9.33 million) with the Zamil Alpla Plastics Middle East Company in Dammam, Saudi Arabia.

Zamil Steel Construction Company (ZSCC) was recently awarded a turnkey project contract valued at SAR 25 million (USD 6.7 million) by the Saudi Electric Supply Company (SESCO) for the Tamimi warehouse project in Dammam, Saudi Arabia.

Zamil Steel Construction Company Awarded SAR 35 Million Contract for the New Zamil Alpla Plant in Jeddah

… and Awarded SAR 25 Million Turnkey Contract for the Tamimi Warehouse Complex in Dammam

5STRATEGIC GROWTH

Zamil Structural Steel Company Ltd., a subsidiary of Zamil Industrial, was recently awarded a contract worth SAR 30.7 million (USD 8.2 million) by the Hyundai Arabia Co. Ltd. to supply various structural steel products for the Jazan Refinery and Terminal Project in the southern region of Saudi Arabia.

Zamil Structural Steel Awarded SAR 30 Million Contract for Jazan Refinery and Terminal Project

The contract calls for the fabrication and supply of over 4,800 metric tons of pipe racks, equipment support structures, platforms, shelters, and other steel products for Saudi Aramco’s Jazan refinery, which will be the mainstay of a new economic city fulfilling the objectives of the economic development in Jazan.

The Jazan Refinery and Terminal Project is intended to grow the economy of the southern part of Saudi Arabia by expanding the Kingdom’s existing industries to serve domestic needs and rejuvenate the Jazan region by providing employment opportunities. When completed in late 2016, the refinery will have the capacity to process 400,000 barrels per day (bpd) of oil, 75,000 bpd of gasoline, 250,000 bpd of low-sulfur diesel, and 80,000 bpd of vacuum-distillation material

to be used as fuel for power plants. Only three other refinery projects on the same scale as this one have been commissioned worldwide in the past 20 years, according to project officials.

Known worldwide as the Middle East’s leading structural steel fabricator, Zamil Structural Steel Co. was established in 1983 to provide expertise in the fabrication and installation of structural steel and plate works for a wide range of industrial and commercial applications. The company has gained the confidence of major international engineering, procurement and construction contractors and has built a solid reputation among its customers as a preferred partner for structural steel solutions.

6 EXPANDING CAPABILITIES

quality control practices. The Exova Warringtonfire Mideast certification scheme ensures that products tested and assessed are manufactured according to stringent quality control standards. The program also establishes a passive fire protection product tracing system that uses manufacturing records and coded labels and that links the product to the manufacturer from buildings and construction sites located anywhere in the world.

The Certificate of Approval, granted according to Warrington Certification’s assessment scheme, instills confidence in specifiers, enforcement authorities, and building owners and occupants in the Middle East that manufacturers will consistently provide products that match the specifications of those that have been assessed and approved at the laboratory.

“Independent, third-party certification such as that provided by Warrington is quickly becoming the accepted industry standard for passive fire protection building products,” said Nasri Majzoub, general manager of BCOMS. “This certificate of approval affirms not only the consistent quality of our rockwool sandwich panels, but of our manufacturing and quality control processes. It assures our customers that they are utilizing materials of exceptional quality in their construction projects,” he added.

The rockwool sandwich panels assessed are made up of double galvanized steel or aluminum skins with a noncombustible rockwool core. According to the certification, specific modifications, including increased core thickness and variable facing profiles, are permitted and will not affect compliance.

Beside the environmental benefits provided, using rockwool panels can save up to 20 percent energy on average, reduce energy costs for the buildings, and contribute significantly to a comfortable and healthy indoor environment. The insulation panels also restrict the fire from spreading from one zone to another and act as a protection for load bearing elements in steel structures, thus preventing the building from collapsing under fire conditions. Professional studies prove that the thermal insulation cost of a building will not exceed 3.5% of its budget. However, this amount will be paid back in 4 – 5 years as a result of savings on the electricity bill.

It is worth noting that Zamil Industrial serves as one of the corporate sponsors and supporters of the Saudi Energy Efficiency Center’s energy conservation campaign. The campaign focuses on central national energy conservation targets in order to achieve the Kingdom’s thrust of promoting energy efficiency as a key national priority. It also aims to raise public awareness of energy efficiency and conservation of air-conditioning units and insulation materials to shed light on the effects of energy conservation in the community.

The company is committed to offering the best available products under its brands to regional consumers, and will continue to strive toward introducing the most energy efficient, environmentally friendly and highest quality products into the marketplace.

Building Component Solutions Co. Ltd. (BCOMS), a subsidiary of Zamil Industrial, recently received the Certificate of Approval from Warrington Certification, through the Exova Warringtonfire Mideast laboratory in the UK, for its rockwool sandwich panels.

BCOMS’ Rockwool Panels Receive Warrington Certification Approval

This certificate is the property of Warrington Certification Limited, Holmesfield Road, Warrington, Cheshire WA1 2DS, UK. Registered company No. 02250182.

CERTIFICATE OF APPROVALNo. ME 5057

BUILDING COMPONENT SOLUTIONS (LLC)

PO Box 14441, Site 4, Al Hassa Street, 2nd Industrial City,

Dammam 31424, Saudi Arabia

Tel: (966) 3-8124571-72-73 ext. 410 Fax: (966) 3-8124579

Have been assessed against the requirements of the test standard(s)

denoted below and are approved for use subject to the conditions

appended hereto:

______________________________________________________________________________

CERTIFIED PRODUCT TEST STANDARD

Rockwool Sandwich Panels

from Building Component

Solutions LLC

In general accordance with

BS EN 1363-1: 2012

Signed and sealed for and on behalf of Warrington Certification Ltd

Sir Ken Knight Issued: 30th September 2014

Chairman - Management Council Valid to: 29th September 2019

Page 1 of 2

The panels were approved for fire safety in compliance with BS EN 1363-1:2012, upon completion of an approval process that included a two-hour period of heat and pressure testing at specified levels.

Warrington Certification Limited, a world leader in providing independent certification of the fire safety and security of building materials, issued this important certification based on type testing of a product sample as well as surveillance and evaluation of BCOMS’ production and

7EXPANDING CAPABILITIES

Zamil Higher Institute for Industrial Training was recently accredited by Edexcel-UK, an international qualifications awarding organization responsible for the accreditation of training centers and institutes, to deliver a wide range of engineering training programs, including level two and three diplomas in electrical and electronic engineering, mechanical engineering, operations and maintenance, and manufacturing engineering.

Zamil Higher Institute for Industrial Training Receives Accreditation from Edexcel-UK

The accreditation came after a comprehensive assessment and evaluation of the Institute’s systems as well as the training services and programs currently offered. The evaluation process also included a workshop on trainee assessment methodology and the implementation of the internationally accredited training programs in general. The Edexcel standards verifier was very impressed with the quality of the trainers, training facilities and existing trainee assessment methodology that the Institute follows while delivering various training programs.

Dr. Mohamed A. Sharif, the director of the Institute, invites all owners, stakeholders and concerned parties at various private and public sector organizations to visit the Institute and learn more about

the internationally accredited training programs offered there. He added that since the skills of the Institute program graduates are benchmarked against international standards, the skills and knowledge gained during the accredited diploma training programs are of the same quality and standards as those gained by trainees who attend similar programs at UK colleges and institutes. Therefore, the graduates will be highly effective and competent at their work and can continue their studies at various British universities and colleges as well as at a number of American, Australian and New Zealand universities.

Dr. Sharif also emphasized the importance of enrolling Saudis in internationally accredited vocational training programs. Accreditation ensures that the

skills and knowledge gained meet international quality standards required by the local companies and enables workers to swiftly move up the career ladder and to reach much higher levels of specialization.

Zamil Higher Institute for Industrial Training provides training programs accredited by the Technical and Vocational Training Corporation in Saudi Arabia and by Edexcel-UK. The Institute is also accredited by a number of major national companies as a registered corporate training provider. It utilizes the newest innovations in industrial training equipment and employs highly qualified and experienced professionals to develop and deliver customized training programs in addition to those on the regular schedule.

8 RECOGNITIONS & AWARDS

HRH Prince Mansour bin Miteb bin Abdulaziz, Minister of Municipal and Rural Affairs, honored Zamil Industrial for the company’s sponsorship of the National Campaign for Energy Consumption Rationalization.

Zamil Industrial Honored for Sponsorship of the National Campaign for Energy Consumption Rationalization

The honorary shield was presented to Abdulla M. Al Zamil, Chief Executive Officer of Zamil Industrial, during the Thermal Insulation in Buildings Forum and Exhibition, which was organized by the Saudi Energy Efficiency Center in collaboration with a number of government and national organizations and held on 21 and 22 October 2014 at the Riyadh International Convention and Exhibition Center.

The forum was attended by a number of ministers; Prince Abdulaziz Bin Salman, Assistant Minister of Petroleum and Mineral Resources for Petroleum Affairs and Chairman of the Administrative Committee of Saudi Energy Efficiency Program; senior government officials; and representatives from major companies in the Kingdom as well as many professionals who work in the building and construction industry, representatives from engineering offices, real estate developers, contractors, and suppliers of thermal insulation materials for buildings.

The forum included various panel discussions and workshops that highlighted the successful efforts of

construction industry professionals to implement the Royal Decree that made the use of thermal insulation mandatory in all new building construction.

Attendees also viewed project presentations illustrating the application of thermal insulation to buildings and reviewed several international examples of construction projects that have utilized thermal insulation. In addition, the participating firms presented several scientific papers alongside formal presentations on thermal insulation applications and examples of their own successful projects.

It is worth mentioning that Zamil Industrial also sponsored the first phase of the Energy Conservation Campaign, which took place May 4 through June 14, 2014, dedicated to raising public awareness of air-conditioning energy efficiency and conservation. The campaign aims to raise public awareness of the importance of energy efficiency and conservation and to shed light on the positive results of measures taken to conserve energy within the community.

9EVENTS

As part of its ongoing activities to promote business growth and strengthen relationships with clients, the Investor Relations Department at Zamil Industrial arranged for several regional and international investors to visit the company during the past few months to learn more about its operations and to meet with company executives.

Investor Relations Department Arranges for Investors to Tour Zamil Industrial Facilities

Besides the business discussions, the visits included field tours of the training facilities as well as the Zamil Industrial businesses’ manufacturing facilities in the industrial cities. The visiting delegates met with company

officials and were presented with descriptions of the scope and nature of the activities of Zamil Industrial’s various companies.

Additionally, the groups toured the production lines and

manufacturing facilities, where they were briefed on important recent accomplishments, to observe the production technologies, processes and work progress.

10 EVENTS

Zamil Industrial Participatesin The Big 5 Show 2014 in Dubai

Several Zamil Industrial sector businesses and Gulf Insulation Group companies participated in the Saudi Pavilion at “The Big 5 2014,” the annual International Building & Construction Show, which was held at the Dubai World Trade Center from November 17 to 20, 2014.

More than 2,700 manufacturers and distributors from 65 countries attended the four-day show, an increase of 25

percent when compared to the year 2013. This year’s exhibits showcased a huge breadth of new technologies and products from heavy machinery to fit-outs.

On behalf of the Minister of Trade and Industry, President of the Council of Saudi Chambers (CSC) and Chairman of the Riyadh Chamber of Commerce and Industry Dr. Abdulrahman Al Zamil opened Saudi Arabia’s pavilion at the exhibition, which was organized by the Saudi Export Development Authority, in the presence of H.E. Dr. Mohammed bin Abdulrahman Al-Beshir, the Ambassador of the Custodian of the Two Holy Mosques in the United Arab Emirates, and Mr. Abdulrahman Saif Al Ghurair, Chairman of the Dubai Chamber of Commerce and industry.

The Saudi Export Development Authority, through its participation in the exhibition along with approximately 100 manufacturers from the Saudi private sector, seeks to promote the Saudi building,

construction and infrastructure industries internationally. The organization’s efforts are supported by the consistent product quality and continued diversification of the industries; illustrating a key component of the Kingdom’s strategy to diversify its sources of revenue and boost the development of industries nationwide.

On-site representatives of the Zamil Industrial businesses reported brisk activity on each day of the event. Current customers came to the stands to check on new developments and renew connections, while many potential clients took the opportunity to become acquainted with Zamil Industrial’s total building solutions philosophy and the product offerings of the individual sector businesses. Attendees included contractors, consultants and construction professionals from the entire MENA region and from around the world.

11EVENTS

Zamil Steel India successfully participated in The Big 5 Construct India 2014, which took place September 11–13, 2014, at the Bombay Exhibition Center in Mumbai, India.

The second edition of the exhibition attracted top companies and professionals from all around the world. The visitors had the opportunity to learn about the latest cutting-edge materials and systems, presented by 200 exhibitors in a space of 15,000 sqm, and to take advantage of various seminars and workshops.

The “Construct India” event presented an excellent venue for Zamil Steel India to showcase its portfolio of pre-engineered buildings and structural steel products and solutions, while enhancing its access to the lucrative subcontinent markets.The company’s participation was successful, and the response was quite

Zamil Steel Participatesin Construct India 2014

encouraging. Zamil Steel representatives had the opportunity to meet many potential clients as well as specialists, engineers, contractors, and construction sector experts from both overseas and locations across India.

The three-day exhibition, which was organized by the

Federation of Indian Chambers of Commerce and Industry (FICCI), Ministry of Urban Development, Government of India and Dmg Events, attracted over 6,000 industry professionals and 200 exhibitors representing 22 countries.

12 EVENTS

The four-day exhibition attracted over 180 exhibitors from 49 countries, representing industry leaders in various sectors, including electric and control systems, fertilizers, chemicals, construction, environment, health and safety. The meeting presented an opportunity for interested parties to enter one of the world’s largest and fastest growing energy markets.

Zamil Industrial Companies Participate in the Exhibition of SABIC Technical Meeting

Zamil Air Conditioners and Saudi Rockwool Factory Co. participated in the exhibition of the 11th SABIC Technical Meeting, which was held from November 2 to 5, 2014, in Jubail Industrial City.

The exhibition of SABIC Technical Meeting is staged every two years in conjunction with the Technical Meeting series. This year marked the 11th edition of STM in Jubail Industrial City, and the theme for the event was “Commitment to Reliability & Sustainability.” The exhibition included meetings and networking opportunities for exhibitors and visitors.

STM-11 is designed to enable SABIC’s experts to network and present their innovative efforts and solutions that will contribute to a global culture of innovation and development. During the three-day meeting, SABIC professionals exchanged knowledge through a technical program featuring keynote speakers from GCC and worldwide.

13EVENTS

The job fair aimed to support the efforts at Saudization of jobs, highlight the role of the business sector in creating job opportunities for Saudi citizens, provide for the business needs for Saudi employees, and act as a liaison among the business sector, employment and training providers.

The event, which offered about 10,000 job opportunities at more than 100 participating companies from across the Kingdom, presented an important opportunity for job seekers of both genders, especially those well-qualified, to meet with the various national and international companies to discuss their professional goals and review the

available career opportunities and job features.

The job fair also aimed to facilitate the exchange of experiences and best practices in the field of human resource management and employment, and create an atmosphere of awareness of the development of vocational skills through proper planning of job seekers’ future careers, especially in their choice of specialization and profession best suited to their qualifications and abilities. The fair also promoted the concept of developing a professional culture throughout society.

The corporate HR team invited Saudi students attending the event to examine the company’s

profile and currently available employment opportunities. In fact, the HR team was on hand and conducted several interviews and evaluated CVs of those interested in joining the company.

The Zamil Industrial recruitment strategy ensures that the company participates in all career- and job-related employment events, both within and outside Saudi Arabia. This strategy has proven very effective, specifically in achieving our Saudization targets and in spreading the word to all Saudi students that outstanding career opportunities are available at our company.

As part of the ongoing recruitment effort aimed at increasing the number of Saudis employed by the company, Zamil Industrial participated in the Wadaef Job Fair 2014, which was organized by the Asharqia Chamber at the Dhahran International Exhibition Center and held under the patronage of HRH Prince Saud bin Naif bin Abdulaziz, Governor of the Eastern Province, October 27–30, 2014.

Zamil Industrial Presents Employment Opportunities at Wadaef Job Fair 2014

14 EVENTS

This event was part of the continuous collaboration between Zamil Industrial and the Business Disability Network (Qaderoon) to improve the various facilities and work environments of corporate members of Qaderoon, making them more compatible with the special needs of people with disabilities.

The workshop was delivered by Dr. Faten A. Al Yafi, a certified trainer for the Mentor and Buddy System, Corporate Social Responsibility (CSR) Expert and Consultant, and Deputy Secretary General of Ibsar Society for Visual Impairment. The workshop aimed to effectively integrate people with disabilities into the workplace and to learn how to interact with them using the mentor and buddy methodology.

Zamil Industrial Corporate HR department organized the “Mentor and Buddy System” workshop, which was delivered on Monday, September 29, 2014, at the Zamil Air Conditioners auditorium in Dammam.

Zamil Industrial Holds Workshop on Interaction and Integration of Employees with Disabilities

The workshop included several communication tips, a checklist for employers when hiring employees with disability, and a general discussion about the advantages of employing people with disabilities.

It is worth noting that Zamil Industrial is a founding member of the Business Disability Network (Qaderoon), which was officially launched in March 2014 by the Ministry of Labor in collaboration with a number of private-sector companies. The

Business Disability Network aims to motivate employers to include people with disabilities as equal, effective members of the workforce and to provide employers with the guidance, advice, and best practices needed to facilitate the recruitment and retention of employees with disabilities. This is done, in part, by advocating for favorable government policy for disabled workers and creating a disability-friendly work environment.

15EVENTS

As Zamil Industrial continues the ongoing implementation of plans to strengthen the internal and anti-fraud controls and build a culture dedicated to protecting the integrity of business operations, the company also continues to allocate the resources necessary to provide management with the training and education necessary to recognize and control company resources.

Zamil Industrial’s Internal Auditing Department Conducts Management and Fraud Controls Seminar for Management

The Corporate Internal Auditing Department recently delivered a powerful seminar targeted to match the management control and specific fraud-control functions and responsibilities of maintenance, repair and operation (MRO) GMs and managers.

The seminar focused on facilitating an increased understanding of internal controls and the application of corporate policies and procedures, as well as the use of internal processes and external methods to control fraud. The material presented is expected to aid management in achieving Zamil Industrial’s financial and operating goals.

A total of sixty-five GMs and managers attended the event, which included the following topics.

Auditing practices and procedures:

●Management control and responsibilities●Internal auditing●Roles of internal and external auditors●Distinctions between internal and external auditors●Fraud awareness●Key indicators of fraud●Performance and accountability

Management-specific topics:

●System of management control●Importance of management in fraud protection●Financial records●Fraud-detection methods

Approval and verification controls:

●Verification of operating statements●Invoice verification control●Contract administration ●Payroll procedures●Computer environment control

The seminar also included a review of Zamil Industrial’s anti-fraud policies and measures, including those that govern contracting, the company’s overall anti-fraud policy concerning petty cash, and the ERP process.

The GMs and managers left the seminar prepared to employ specific controls as they identify weaknesses, avoid risk and malpractice, and provide systematic and strategic solutions to concerns that might arise during the course of everyday operations.

16 EVENTS

A total of 108 participants, comprising scholars, engineers, architects, erectors, builders, investors and government officers, gathered at the Zamil Steel Vietnam (ZSV) first technical seminar, which was held on September 8, 2014, at the Sofitel Phnom Penh Phokeethra Hotel in Cambodia.

The seminar welcomed the presence of H.E. Huy Nara, General Director of the General Department of Construction, and H.E. Phuoeng Sophean, Secretary of State, Ministry of Land Management, Urban Planning and Construction, together with other honorable representatives from the Cambodian government, the Cambodian Chamber of Commerce, the Cambodia Development Council, and various construction and investment-related bodies in Cambodia.

ZSV’s technical seminar sought to provide information about steel building products and their various applications in the construction industry. With the theme “Think Steel Buildings, Think Zamil,” the seminar introduced varieties of Zamil Steel building products, including pre-engineered buildings, structural steel and the MaxSEAM roof system.

To meet the rapid growth of the Cambodian construction industry, Zamil Steel buildings

experts aim to familiarize the market with the company’s products by emphasizing the advantages of steel buildings, while also expressing their intentions to consult with local builders, erectors and investors about modern construction technologies.

Zamil Steel Vietnam Conducts Technical Seminar in Cambodia

17EVENTS

Zamil Steel India participated as the platinum sponsor in the Structural Steel Construction Summit 2014, which was held on September 24, 2014, at the Courtyard Marriott Hotel in Mumbai, and organized by the Steel Structures & Metal Buildings magazine.

than 250 delegates paid heed to these renowned stalwarts, chosen from the structural steel industry, as they deliberated their experience, shared their precise knowledge, and provided direction for others who wish to follow suit.

Khaled Ezzat, general manager of Technical Services at Zamil Steel Holding Co., was one of the prominent speakers who focused on the future of steel buildings, and also shared his experience with structural steel usage in the GCC region.

Key topics covered at the summit included: best practices in steel design across the globe, a case study of the RCP Office Park highlighting the optimization of steel cost through design, new steel structure trends at the global level, and the various uses of structural steel in a tall building design.

To sum up the event, the conference was successful not only in the presentation of knowledge and information, but also as a forum dedicated to finding solutions to practical issues currently facing the industry.

With the revolutionary theme: “A New Era in Steel Construction,” this summit highlighted the various advantages and out-of-the-box applications of steel in modern day construction. The main objective of this gathering was to showcase the design, engineering and fabrication capabilities of steel construction through presentations, success stories and in-depth panel discussions. Additional discussions focused on solving key issues that the construction industry is facing today, with regard to the adoption of structural steel as a preferred material in India.

Participants in the event witnessed renowned international professionals, apart from an elite group of experts from India, as they shared their rich knowledge and illustrated the best path forward for the industry. More

Zamil Steel Platinum Sponsor at Structural Steel Construction Summit 2014

18 EVENTS

During the third quarter of 2014, Zamil Industrial Loss Prevention Department (ZI LPD) has been involved in the resolution of a number of safety issues across the company. The department worked to find solutions to problems and assist business units in developing and implementing various workplace safety programs. These are the most significant achievements of the period:

Zamil Industrial LPD Lists Achievements for the Third Quarter of 2014

Health, Safety and EnvironmentZamil Central Air Conditioners (ZCA) factory, winner of the Best Safety Performance Award for two consecutive years, reached yet another milestone as it became the second Zamil Industrial business unit to be certified for OHSAS 18001 and ISO 14001. ZCA management began the certification process by organizing a Health, Safety and Environment (HSE) committee consisting of members of the existing ZCA HSE Operations Committee, QA Department and Corporate Loss Prevention Department.

The team members, supported by management, worked to establish HSE Policy and Procedures, while reviewing, enhancing and implementing the existing ZCA HSE Management Program. First and second stage external audits conducted by the TÜV SÜD Management Service certification body found no major non-compliance issues. The external

auditors were also satisfied with the HSE Management Program implemented at ZCA and thus certified ZCA for OHSAS18001 and ISO14001.

In keeping with Zamil Structural Steel Company’s (ZSSC) favorable safety performance, management has designated three in-house safety officers to support the implementation of the Corporate LPD program to reduce work-related injuries and incidents. Each of the officers has successfully completed safety courses conducted by the Corporate LPD Training Awareness & Support Team.

Development and Technical Support

Zamil Industrial business units and JV factories conduct second EAP fire drills of 2014.

The Zamil Industrial Corporate LPD Development & Technical

Support team has continued the planning and implementation of the second group of Emergency Action Plan (EAP) Fire Drills of 2014 across all Zamil Industrial business units and joint venture factories. During the third quarter, implementation of the EAP was completed at Zamil Industrial joint venture factories – AFICO-1, AFICO-2 and AZMEC – located in Dammam, and Ranco Zamil, Saudi Rockwool Factory (SRWF) and Saudi Pre-Insulated Pipes Industries (SPPI) in Riyadh – achieving high rates between 93–96 percent.

The preparations for fourth quarter EAP fire drills at Zamil Industrial business units have begun and plans for the drills have been confirmed by management at all participating business units. In recent years, EAP program implementations have improved significantly. Key factory personnel and employees became more familiar with their roles during emergency situations, while realizing that the main objective of the program is to protect lives and property at any Zamil Industrial business unit or work site. The unceasing support of each Zamil Industrial business unit or joint venture factory and Administration is critical to the plan’s success, which has been achieved consistently since the program began.

19HEALTH & SAFETY

20 HEALTH & SAFETY

Hazards can be found anywhere, no matter how small or large your company is, the dangers may not be as obvious to those not working on the shop floor. Working in an office may seem harmless, but poor ergonomics and psychological stress can also cause health problems that hamper productivity. Zamil Industrial understands that hazards are present in all types of industries, and it is essential that the company provides health and safety training for all workers and updates their knowledge on a regular basis.

Zamil Industrial, through the Corporate Loss Prevention Department, believes that educating workers on the basics of occupational health and safety can help reduce workplace accidents and injuries and save the company from the direct and indirect costs of these events. Apart from the obvious legal and financial benefits that come from providing health and safety instruction to employees, businesses also enjoy enhanced productivity and employee satisfaction by keeping the workplace safe. Employees at work in a safe environment are better able to focus on their tasks, simply because they do not have to worry as much about their personal safety. This enhanced focus will eventually lead to higher output and quality, ultimately increasing productivity and consequently, the company’s long-term profits.

As of September, the Corporate LPD Training and Awareness section has conducted a total of 667 training sessions in English and Arabic for all Zamil Industrial business units, with a total of 5,594 participants, totaling 2.94 training hours per employee. Aside from training, Corporate LPD Safety, Health & Environment awareness activities have distributed 3,207 HSE training materials and 16 e-message alerts to all Zamil Industrial companies and the Field and Awareness section provided a total of 2,094 field awareness sessions.

The Corporate LPD Support Services section, which is handling government relations with regard to fire prevention and safety, has provided assistance and follow-up with government agencies to obtain or renew Civil Defense and the Presidency of Meteorology and Environment (PME) certificates for the various Zamil Industrial companies and joint venture businesses, which are mandated by government regulations and required for companies engaging in export activities in 2014.

HSE & Fire Training and Support Services Department Achievements