Climate Change Data

Environmental Metrics

Social Achievements

• Achieved Saudization percentage of 34.9% as of 30 September 2022G.

Climate Goals & Targets

Environmental Challenges

• Risks related to the Company’s inability to implement its growth strategy in the future.
• Risks related to revenue concentration.
• Risks related to losing major clients of vehicle lease and car rental services.
• Risks related to the residual value of existing contracts.
• Risks related to opening branches for car rental in new cities.
• Risks related to leasing real estate properties.
• Risks related to airport branch leases.
• Risks related to the closure of some of the Company’s branches.
• Risks related to infectious diseases or other public health threats.
• Risks related to seasonal factors.
• Risks related to the Company’s reputation, trademark and services.
• Risks related to marketing activities.
• Risks related to inaccurate estimates of costs and service pricing.
• Risks related to inaccurate estimates of future car rental demand levels.
• Risks related to vehicle purchases.
• Risks related to the Company’s selling of vehicles upon retirement.
• Risks related to related party transactions and agreements.
• Risks related to the engagement of directors and senior executives in businesses competing with the Company’s business.
• Risks related to the growing importance of e-channels for car rentals.
• Risks related to the inability to adequately maintain the confidentiality and integrity of customer and employee data.
• Risks related to credit card, Mada card and Hyperpay payments.
• Credit risks related to collecting receivables from the Company’s customers.
• Risks related to theft or misuse of cars by the Company’s customers.
• Risks related to fines received by the Company’s customers.
• Risks related to outsourcing certain services to Seera Group Holding.
• Risks imposed by financing and the ability to obtain financing.
• Risks related to corporate guarantees provided by Seera Group Holding.
• Risks related to adverse changes in interest rates and other financial risks.
• Risks related to reliance on executive management and key personnel.
• Risks related to the failure to attract and retain qualified employees.
• Risks related to employee misconduct and errors.
• Risks related to reliance on information technology infrastructure.
• Risks related to employing and sponsoring non-Saudi employees.
• Risks related to the failure to secure adequate insurance coverage.
• Risks related to litigation.
• Risks related to the protection of intellectual property rights.
• Risks related to potential Zakat liability.
• Risks related to the use of accounting assumptions, estimates and judgments, and the corresponding errors.
• Risks related to newly implemented corporate governance rules.
• Risks related to the failure by the audit committee and the nomination and remuneration committee to perform their duties as required.
• Risks related to changes in the composition of the board of directors after the issuance of the CMA’s approval of the offering.
• Risks related to the recent appointment of new directors.
• Risks related to the lack of experience in managing a publicly listed joint stock company.
• Risks related to the Company’s non-distribution of dividends in the financial years ended 31 December 2019G, 2020G and 2021G, and the nine-month period ended 30 September 2022G.
• Risks related to changes in the useful life, residual value and methods of calculating depreciation of vehicles.
• Risks related to structural changes in the transport sector.
• Risks related to consumer spending due to weak economic conditions.
• Risks related to political instability and security concerns in the Middle East region.
• Risks related to force majeure and natural disasters.
• Risks related to competition and the Company’s market share.
• Risks related to changes in the regulatory environment.
• Risks related to unanticipated costs related to compliance with health and safety and environmental laws and regulations.
• Risks related to Zakat and income tax calculation mechanism change.
• Risks related to non-compliance with VAT regulations.
• Risks related to changes in energy prices.
• Risks related to exchange rates.
• Risks related to licences and approvals.
• Risks related to the increase in government fees applicable to non-Saudi employees.
• Risks related to non-compliance with Saudization requirements.
• Risks related to compliance with the new companies law.
• Risks related to expected launch of a number of initiatives related to public transport in the Kingdom.
• Risks related to the selling shareholder’s post–offering effective control.
• Risks related to the absence of a prior market for the shares.
• Risks related to selling a large number of shares on the exchange.
• Risks related to the issuance of new shares.
• Risks related to fluctuations in the market price of the shares.
• Risks related to the distribution of dividends.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO

Awards & Recognition

• Leading Car Rental Company in the Middle East and Saudi Arabia (World Travel Awards)

Environmental Metrics

Social Achievements

• Launched Lumi Academy to drive career growth and strengthen human capital, promoting high standards of customer service.

Governance Achievements

• Established three permanent sub-committees: Executive Committee, Audit Committee, and Nomination and Remuneration Committee.
• Implemented a comprehensive Corporate Governance framework aligned with CMA regulations.
• Achieved 100% implementation of Audit Committee recommendations and 80% implementation of internal audit report recommendations.

Climate Goals & Targets

Environmental Challenges

• Risks of Innovation and Digital Transformation
• Cyber Attack and Cloud Computing Security Risks
• Data Governance Risks
• Risks of Service Provider Procedures
• Risks of selling vehicles at the end of their service life
• Risks of Government Fees
• Risks of Structural Changes in the Transportation Sector
• Credit Risks
• Risks of Fair Value and Cash Flows of Commission Rates
• Liquidity Risks
• Currency Risks
• Risks of Credit Card and Mada Card Payments
• Credit Risks associated with collecting debts owed by the Company’s clients
• Risks of Potential Tax and Zakat Liabilities
• Risks of Compliance with Government Legislation and Regulations

Mitigation Strategies

• Integrated digital plan with phased implementation considering technical, organizational, and economic variables.
• Strengthened Cybersecurity Unit, developed internal systems and policies, and enhanced security procedures.
• Implemented integrated data governance policies aligned with data privacy, adopting unified specifications and standards.
• Developed a network of approved suppliers to avoid reliance on a single provider.
• Regularly updates and estimates the market value of vehicles.
• Continuous review of all obligations and requirements and provides the necessary measures to the concerned authorities.
• Cash and cash equivalents deposited with high credit-rated banks.
• Commercial receivables shown at assessed recoverable value.
• Regular monitoring of changes in commission rates.
• Regular monitoring of liquidity ratios and debt financing plans.
• Transactions mainly conducted in Saudi Riyals and US Dollars; other foreign currency transactions are not substantial.
• Regular monitoring of liquidity ratios and debt financing plans.
• Regular monitoring of outstanding receivables.

Supply Chain Management

Responsible Procurement

• Network of approved suppliers to avoid reliance on a single provider.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS Accounting Standards endorsed in KSA, SOCPA pronouncements

Third-party Assurance: KPMG

Awards & Recognition

• Saudi Arabia’s Leading Car Rental Company (four consecutive years)
• Middle East’s Leading Car Rental Company