Summarized Consolidated Balance Sheet

SUMMARIZED CONSOLIDATED BALANCE SHEET

Total assets were SAR 318.44 compared to SAR 295.47 as 2020, an increase of SAR 22.97 or 8%. This is reflecting the increase in trade receivables, inventory, and cash and bank balance as well as the increase in investment in associates and joint ventures mainly driven by the improved products margins and increase in average feedstock price that was partially offset by a decrease in property, plant, and equipment and intangible assets.

Our Financing Policy aims at ensuring sufficient liquidity levels at all times, while optimizing the returns to our shareholders. We use leverage prudently to fund our global growth ambitions. Our strong credit profile and corporate credit ratings (A+ / stable) on a standalone basis reflects the strength of our financing strategy and its execution. We evaluate the most optimal capital and financing structure to support our strategic plans and growth ambition.

Our primary sources of liquidity are the cash flows generated from our operations and borrowings under committed bank facilities. The primary use of this liquidity is to fund our ongoing operations and our capital expenditure requirements, including investments in joint ventures and other minority owned investee companies as well as dividend distribution to our shareholders.

Total Liabilities were SAR 106.61 compared to SAR 101.23 as 2020, an increase of SAR 5.37 or 5%. This was due to the increase in trade payables and accrued liabilities driven primarily by the increase in feedstock prices, increase of the income tax and zakat payables, and increase in the derivative financial liabilities for forward contracts related to certain joint venture agreements. This was decrease in debt and decrease in employee benefits obligations.

Equity attributable to equity holders of the parent was SAR 180.14 compared to SAR 167.63 in 2020, an increase of SAR 12.51 million or 7%. The increase is mainly due to the net income generated throughout the year partially offset by dividends declared in the amount of SAR 9.75.

Below is an overview of the total debt portfolio as of 31 December 2021*:

_{*This is mainly due to FX and Amortization effects.}

The total debt portfolio as of 31 December 2021 can be broken down by lending party as follows:

Below is a statement that shows the amount of the statutory levies both paid and outstanding covering zakat, taxes, fees or any other charges that have not been paid until the end of the annual financial period.

Reflecting the company’s commitment to its employees, below is a statement as to the value of any investments made or any reserves set up for the benefit of the employees of SABIC.