1. Towards Sustainability of the power sector نحو استدامة قطاع الطاقة الكهربائية

2. Critical Value of SEC to the Kingdom Power Sustainability to the Sacred Cites Contributing to the Real Image of Saudi Arabia

3. SEC Contribution to KSA Economical Growth KSA will maintain its vital role as global supplier of secure oil and G20 member

4. What is SEC to The Kingdom & The World In reality, SEC is the battery of global economy !! 1)Supports Kingdom Commerce & Industry including sustainable Export of Hydrocarbon and Petrochems to the world. 2)The largest utility in the MENA region and one of the largest globally 3)Direct economic driver to KSA, to maintain its position as one of the largest 20 global economies

5. WHAT SEC MEANS TO THE KINGDOM AND THE WORLD Kingdom Pride: SEC is the largest in the MENA Region and world Installed capacity 62 GW 56,000 km of Transmission (circle the globe) 500,000 km of distribution lines Citizens of the Kingdom 7.3 million Customers Upto 500,000 New Customers per year SEC has Electrified 99% of rural areas 13,000 Villages Growing at the fastest pace in the world, 8% growth 33,000 SEC direct Employees Strategic Savings towards 1.5 MBOE/D Introduce smart grid and smart meters Interconnection regionally & globally GCC INTERCONNECTION EGYPT INTERCONNECTION EUROPE INTERCONNECTION

6. THE ENERGY VALUE CHAIN FROM WELL HEAD TO CUSTOMER SEC is a major component in the energy value chain – producing the much needed electricity to move the economy forward and for the production of water

7. USAChina S Korea SingaporeSpainNorwayMalaysiaBrazilIranRussiaVenezuelaUKCanada Similar structure Similar objectives Selection criteria Large resources 1 Demand outpacing supply 2 Development level 3 Geography & culture 4 Geopolitical weight 5 Competitive NOC 6 Increase efficiency 7 Diversify fuel mix 8 Grow non oil & gas sectors 9 Build expertise 10 Impact on environment 11 Overall fit for benchmark Countries identified for benchmarking Examples of failed strategic attempts Pockets of excellence N Zealand Iran Germany Germany: Efficiency NZ: Renewable Japan: R&D structure France: Leadership UK: Integrated services Iran: Fuel Subsidies Korea: Localization Norway: Governance UK JapanFrance IndonesiaNigeriaMexico KoreaNorway 2 3 1 2 3 4 5 6 7 8 BrazilMalaysia NorwayChina Comprehensive Strategy Strong governance Success stories Challenges faced USA 1 Country deep dive Source Aramco

8. ANIMATE

9. What are we solving for ?? Meeting Demand Diversity of supply Security of supply Reducing hydrocarbon burning Environmental Compliance Maximize revenue Increasing the standard to living Optimizing the cost of energy Leadership in the Kingdom and the world SEC IS SOLVING FOR ALL FO THE ABOVE !!!!!!

10. Is this challenge? or yes No

11. STP regional roadshow - English.pptx 11 SEC RESPONSE TO ADDRESS THE OPPORTUNITY THROUGH THE STRATEGIC TRANSFORMATION PROGRAM (STP) ANIMaTE !!

12. STP regional roadshow - English.pptx 12 ANIMaTE !!

13. IMPACT OF STP / OUTCOME / Our response – linking it all together Generation (meet demand ) Transmission 600,000 efficiency Expansion to meet demand 4000 MW per year 300,000 renewable 54 KM Increase capacity from 105 GVA in year 2000 to 203 GVA in year 2013. Interconnection Local and international Distribution 146 km for overhead lines and 92 km for underground cables Increase capacity from 93GVA in year 2000 to 189 GVA in year 2013.

14. 2 MMBDOE increase by 2030 The cost of doing nothing: Future investments required over a period of 20 years $46 Billion 3X1 BSCFD Sales Gas 3X 0.5 MMBD Refineries $30 Billion $ 35 Billion 2 GW X10 Power Plants $6 Billion Distribution System $50 Billion 5X300 MBD Crude Oil Facilities $165B in capex $110B in operating cost $7B in carbon credits Total ~$300 B Saudi Aramco’s incremental costs:  CapEx of $131B  OpEx of $88B Utilities incremental costs:  CapEx of $34B  OpEx of $22B Source Aramco

15. STP regional roadshow - English.pptx 15 SEC Quick Facts 1.Availability of power to serve 7.3 m customers is 99.9% 2.SEC has one the lowest residential tariff globally 3.The installed capacity in Kingdome is 62GW while total GCC capacity is 61 GW 4.UAE Tariff subsidy serves only 20 % of total population(UAE citizen only ) while in Saudi 100 % 5.SEC Saudization is 87% 6.Sec is one of the largest 5 publicity trade companies in Kingdome stock market 7.Annual growth in demand reach 8% 8.Total Asset Value SAR 307 billion 9.Telecom Example 10.SEC customer base split by consumption: residential (50%), industrial (17.4%), commercial (16.3%), governmental (12.6%), and other (3.6%)

16. STP regional roadshow - English.pptx 16 SEC to the world and kingdom

17. STP regional roadshow - English.pptx 17 Citizens of the KingdomKingdom & World PrideStrategic 7.3 million Customers Upto 500,000 New Customers per year SEC has Electrified 99% of rural areas 13,000 Villages Growing at the fastest pace in the world, 8% growth SEC is the lowest provider and tariff structure Job Creation -Local Gas Turbine servicing and manufacturing (GE / Siemens) 33,000 SEC direct Employees Local contractor and manufacturers SEC is the largest in the MENA Region One of the largest utilities in the world Installed capacity 62 GW 56,000 km of Transmission (circle the globe) 500,000 km of distribution lines All international companies want to work with SEC Strategic agreements with EDF, TEPCO, KEPCO, EON SAR 50 Billion Expenditure per year SAR 10 billion local direct purchase SEC is the first KSA entity to launch 30 yr global Sukuk SEC Rating AA- Challenges converted to Opportunities Transformation on all activities while keeping the lights on. Daweyat fiber optic network (32,000 km) spanning the kingdom. Interconnection regionally Going global Inviting Global utilities to participate in the local market Strategic Transformation of utility business to best in class. Strengthen the Kingdom name globally. Increase supply efficiency to save 600,000 BPD Participate in Demand reduction equivalent to 900,000 BPD Diversifying the energy mix – renewables …. Saving 300,000 BPD Introduce smart grid and smart meters

18. STP regional roadshow - English.pptx 18 STAKEHOLDERS – WAY FORWARD WE STILL HAVE CHALLENGES WE WILL WORK WITH ALL OUR STAKEHOLDERS ….. 2.8 % of Fiscal Budget - 18

19. STP regional roadshow - English.pptx 19 END 19

20. TO create success the entire supply chain and SEC’s position within the entire value --- The supply chain Include Value Chain Pic / Supply / Demand

21. SEC is proud to Provide the Kingdom with the need Power to drive prosperity and development for the economy, the society and the Kingdom as a whole, for : 1)Export of hydro carbon to the world 2) Keeping the lights on, water flowing and economy growing, 3)Providing power for schools, universities, hospitals, commercial centers, critical facilities, government, military etc..