SEDCO Holding Annual Report 2012

Operational Highlights of 2012GrowthOver the last three years oftransformation, SEDCO’s portfolioof operating companies, realestate, and financial investmentshas recorded three-fold growth.PerformanceAuto World was ranked ‘BestPerforming Company’ withinthe SEDCO group, increasing netprofit by more than 28 percentin 2012. SEDCO Development’srevenue increased by 40 percentand the total value of projectsby 155 percent. Nahdi MedicalCompany continued to outperformthe market, recording compoundannual growth of 15.3 percent,compared to 8.6 percent for thepharmaceutical market.StrategyCorporate restructuring isbeginning to yield its full rangeof benefits. SEDCO’s role as anactive investor provides tangibleadvantages, and the integrationof management practices andcommon policies across thegroup has reinforced the cultureof disciplined innovation.DiversificationSEDCO’s main focus is now onexpanding and diversifying theoperating companies’ activities,while maintaining its strongposition in the real estate sector.Continued organic growth inexisting companies will becomplemented by the creationand acquisition of new ventures.InnovationThe launch of SEDCO CapitalGlobal Funds created the largestShariah-compliant specialinvestment fund (SIF) platform inLuxembourg, and SEDCO CapitalGlobal Market Sentiment Fund isthe first Shariah-compliant fundfollowing a rules-based assetallocation approach to direct thebalance between riskier assets(public equities) and safer assets.Human capitalMore than 75,000 training hoursin key competencies weredelivered, addressing individualleadership, communication, andteamwork. Employment of Saudinationals has reached silver level.Social responsibilityLaunch of the nationwide Riyalifinancial literacy program willaddress the crucial need forfinancial education among Saudiyouth, enabling them to bettermanage their monetary affairsand personal budgeting.RecognitionSEDCO Capital was named ‘BestFund Manager’ at the 2012 AsianFinancial Forum’s Global IslamicFinance Awards, while SheikhAbdelelah Bin Mahfouz, the firm’sChairman, was recognized for‘Most Outstanding IndividualContribution to Islamic Finance’.Elaf Group won two categories inthe Saudi Excellence in TourismAwards: Best Four-star Hotel(Elaf Taiba Al-Madinah) and BestTourism Sales Professional ofthe Year, and also received theMakkah Excellence Award. Tarfeehreceived the award for the highestannual sales growth amongApplebee’s global franchisees.2 Annual Review 2012 3