ELEMENT LIST

CURRENT QUARTER

SIMILAR QUARTER FOR PREVIOUS YEAR

%CHANGE

PREVIOUS QUARTER

% CHANGE

Sales/Revenue

1,886.6

1,599.4

17.956

2,136.9

-11.713

Total Profit (Loss)

302.1

242.7

24.474

320.1

-5.623

Profit (Loss) Operational

253.9

220.7

15.043

298.6

-14.969

Net Profit (Loss) after Zakat and Tax

233.7

219.1

6.663

290.3

-19.497

Total Comprehensive Income

233.7

219.1

6.663

293.2

-20.293

All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT LIST

CURRENT PERIOD

SIMILAR PERIOD FOR PREVIOUS YEAR

%CHANGE

Total Share Holders Equity (after deducting minority equity)

1,584.7

1,615.6

-1.912

Profit (Loss) per Share

1.95

1.83

&ndbsp;

All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT LIST

EXPLANATION

Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year

Reason for increase to Increase in sales of most of sections particularly electronics section driven by smart phones sales, and computers section. Increased number of showrooms from 52 to 56 partly contributed to increased retail sales. Despite sales increase of 18%, net income increase was limited to 6.7% due to increased selling & marketing expenses (which were less than the normal levels in the same quarter of the previous year), and increased general & administrative expenses and non-operating expenses and decreased other income.

Reason for increase (decrease) in net profit for current quarter compared to the previous quarter

Reason for decrease to:

- Decrease in sales of most of sections, particularly electronics sales as compared to the previous quarter in which sales were positively impacted by the sales of the new models of smartphones.

- Decrease in wholesales as compared to the previous quarter in which sales were positively impacted by the second term back to school season.

- Decrease in other income.

Type of the external auditor's opinion

Unmodified opinion

Reclassifications in quarter financial result

Certain comparative figures of the prior period have been reclassified to conform with the presentation of the current period.

Additional Information

The company applied IFRS 16 with a date of initial application of 1 January 2019. The initial application resulted in recognition of an additional SR 706 million of right-of-use assets, additional SR 740 million of lease liabilities, and SR 66 million of debit adjustments to retained earnings. The application of IFRS 16 had a significant impact on the classification of leases of the Company and its subsidiaries (as lessees) in the statement of income, as the rent expenses are replaced with depreciation of right of use and finance cost. This resulted in a significant increase in both depreciation expense and finance cost and a significant decrease of rent expense as compared to the prior periods. The increase of finance cost is attributed to the use of present value concept in the application of IFRS 16. When comparing this quarter with prior periods, it should be noted that a significant portion of the currently presented as finance cost was included in the determination of gross profit and income from operations in the prior periods presented. For more information, please refer to footnote on the application of IFRS 16 in the interim financial statements of the first quarter of 2019.

For all periods presented, earnings per share information is calculated based on the new number of shares post the capital increase through bonus shares on 28 October 2018, the date on which the Extraordinary General Assembly approved the capital increase.

A new showroom was opened during the period on 24/3/2019.