Managing Director and Chief Executive Officer's Message

I am proud to share that 2022 represented an exceptional year of operational success for Qatar Steel, driven in the most part by our strategic decision to reactivate the DR-2 facility. This restart of operations resulted in a significant 31% increase in overall production and provided us with enhanced market flexibility in terms of product output.

In addition to these remarkable achievements, 2022 proved to be a pivotal year for our sustainability journey. Not only did we finalise our 2022-2026 Sustainability Roadmap, but we also took proactive steps to embed its principles throughout our organisation. We accomplished this by creating sustainability focused balanced scorecards, whilst also establishing accountability though an RASCI matrix; thus by actively involving our management team, we able to cascade clear objectives and identify key actions for meeting them.

The roadmap itself is built upon ten strategic macro-objectives, aligned to both national and international frameworks. It sets aspiring goals for product and process innovation, allowing us to solidify our position globally as a responsible steel manufacturer. To support these aspirations, we increased our production, leading to a nearly 10% year-onyear revenue growth and an extraordinary 28% increase in Economic Value Distributed(EVD). Furthermore, to bolster our value proposition we obtained new product and sustainability certifications and actively sought recognition and independent verification of our accomplishments.

Maintaining a safe and healthy work environment remains a top priority, evident in our outstanding results for Total Recordable Injury Frequency Rate (0.92) and Lost Time Injury Frequency Rate (0.37). Our environmental performance faced some challenges this year, primarily due to the energy-intensive nature of the DR-2 plant and delays in the implementation of the new wastewater treatment plan. Nevertheless, our performance remains among the best in the industry, and we are confident in our ability to further improve as we implement new initiatives currently under discussion.

Our commitment to the growth of our employees, particularly our nationals, is unwavering. By achieving a 100% rate of regular performance reviews and providing all necessary tools and training we continue empower our workforce, enabling them in their fulfilment of their career aspirations. With pride we can confirm that our Qatarisation rate continues to rise impressively, reaching 13.29% in 2022. As always, our efforts extend beyond our organisation. We actively support the communities in which we operate, aiming to be seen as an employer that fosters Qatar’s growth and provides compelling career opportunities for Qataris. Additionally, we are dedicated to making our supply
chain practices increasingly sustainable, emphasising support for local suppliers especially small and medium-sized enterprises (SMEs).

While ethical business practices are already ingrained in our organisation, we recognise the importance of continuous improvement. As a result, we are developing new policies to underscore our commitment and ensure every aspect of our business adheres to the highest standards. Our forthcoming Human Rights and Corporate Social Responsibility (CSR) policies will be published next year. We are committed to support the achievement of the ResponsibleSteel vision and mission by integrating its principles into our operations. We intend to achieve
ResposibleSteel certification in 2023.

I invite you to delve into our journey throughout 2022 and discover the efforts Qatar Steel has undertaken to build a sustainable future for our organisation and all our esteemed stakeholders.

2022 represented an exceptional year of operational success for Qatar Steel, driven in the most partby our strategic decision to reactivate the DR-2 facility.

our alignment with the principles outlined in the Responsible Steel methodology further supports our future expansion efforts within our current low Carbon intermediate product offering.

We actively engage with and empower the local community, recognising the significance of
fostering strong relationships and creating a positive social impact.

Best regards,
Abdulrahman Ali Al-Abdulla
Managing Director and Chief Executive Officer