#1علم Elm Investor Presentation First Quarter 2023 Cale Elm www.elm.sa#2Disclaimer This presentation has been prepared by Elm solely for informational purposes. The presentation may contain forward looking statements, which reflect Elm's beliefs or current expectations and assumptions regarding the future of the business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Forward looking statements are neither historical facts nor assurances of future performance and can generally be identified by terminology including "anticipate", "aspire", "believe", "project", "estimate", "expect", "forecast", "strategy", "target", "trend", "future", "likely", "may", "should", "will", "intend", "plan", "goal", "objective", "seek", "roadmap", and other words of similar meaning or similar expressions. By their nature, forward looking information and statements are subject to known and unknown uncertainties, risks and changes in circumstances that are difficult to predict and not in Elm's control. Our actual results of operations and financial conditions may differ materially from that or those indicated in the forward looking statements. You should not place undue reliance on any of these forward looking statements. Any forward looking statement made by Elm in the presentation is based only on information currently available to us and speaks only as to the date on which this presentation is made. Past performance is not a reliable indication of future performance. Elm makes no representations or warranties as to the accuracy, or completeness of the information and shall not have any liability for any representations, express or implied, regarding the information contained in, or for any omissions from, the information included in this presentation. Elm undertakes no obligation whatsoever to publicly update any forward looking statement whether as a result of new information, future developments or otherwise. Elm will be always compliant with the proper timely disclosure of any essential information to be broadcasted via the formal approved channels according to the applied rules, regulations and laws of the kingdom of Saudi Arabia. 2#31 About Elm All 2 Financial Performance 3 2023 Outlook علم Elm www.elm.sa#4Elm at Glance Major millstones over the years 1988 AL ELM 2002 2010 2022 m علم Elm علم Elm > Established in 1988 as a > research company specialized in technology localization > Providing eServices to individuals, business and government agencies > Transformation into a Saudi > Joint Stock Company fully owned by PIF To be the digital enabler for government and business sectors in KSA and the region Successfully diversified into Consulting Services, IT services, Government Process Outsourcing, Training solutions and eServices Major lunched products and projects over the years > Successful Initial Public Offering (IPO) with institutional offering reached to 69.5 times oversubscribed, drawing orders of nearly $ 56.9 billion and retail offering 1,311% oversubscription, generating up to $3.2 billion. تم Tamm مقيم Muqeem يقين Yakeen موجز Mojaz إفادة Efada มา Hayyak تأجير Tajeer توصيل Tawseel زاول Zawil نقل Naql A حساب المواطن وصل طاقات Wasl تنمية بشرية - سلامة Salamah صناعي Senai Shareholding Structure 100% تبادل TABADUL 30% Public علم Elm 67% صندوق الاستثمارات العامة 1971 Investment Fund 100% امداد Emdad ASE الأحوال المدنية فسح FASAH 100% Umrah Special Service Company 100% Elm Investment Company The remained 3% is owned by Elm for employee share schemes. 4#5Business Model WHAT We offer HOW We sell 1 Digital Business ㅁㅁ PRODUCTS › Transactional › Subscription TO WHO › Partnership B2C We sell 2 Business Process Outsourcing B2B Professional Services 3 PROJECTS (CUSTOMED SOLUTIONS) > Turnkey > Performance based › Public-private partnership B2G 5#61 About Elm All 2 Financial Performance 3 2023 Outlook علم Elm www.elm.sa#7P&L Highlights Revenue by Business Segment SAR Millions 1,092 +18% 1,288 657 969 387 48. 277 42 Q1 2022 Q1 2023 Gross Profit by Business Segment SAR Millions 440 +21% 533 448 309 111 82 19. Q1 2022 Q1 2023 +40.3% GP Margin +41.4% Digital Business Business Process Outsourcing Proffessional Services Key Highlights > Strong Revenue growth in digital business, resulted in Growth in gross profit. > Growth in Gross profit margin due to the increase in Digital Business Segment contribution to total revenue 75% (2022: 60%). > Growth in Private sector revenue to reach 66% (2022: 50%). 7#8P&L Highlights EBIT SAR Millions 270 +19% 94 (21) (3) (12) (7) 320 Q1 2022 Gross G&A S&M D&A ECL Q1 2023 Profit Key Highlights Increase in EBIT and Net profit due to strong revenue growth. > > Increase in G&A and S&M driven by expansion in employees, and S&M activities. Net Profit SAR Millions 250 +29% 51 (8) 30 30 322 Q1 2022 EBIT Zakat Others Q1 2023 > Increase in Depreciation and Amortization (D&A) as a result of Capital Additions occurred in the second-half of year 2022. > Increase in Others due to increase in Interest Income. 8#9P&L Highlights Revenue Trend SAR Millions 4% 1,308 1,288 1,167 1,092 1,039 Gross Profit Trend SAR Millions +5% 548 533 486 440 413 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 +40.3% +39.7% +41.6% +41.9% +41.4% GP Margin % 9#10Digital Business Revenue SAR Millions +47% 969 657 Gross Profit SAR Millions 309 Q1 2022 Q1 2023 Q1 2022 Key Highlights > Strong revenue growth across current products. +45% 448 Products Revenue SAR Millions +53% +26% 895 586 588 +105% 436 307 Q1 2023 150 Q1 2022 Q1 2023 +47.1% GP Margin % +46.2% > Increase in Gross Profit led by products revenue growth and projects margin improvement. > As a result of growth in the products revenue mix, the top 5 products contribution decreased to 66% (2022: 74%) > Top 5 products witnessed continuous growth due to several factors, including the introduction of new services, increase in customer base. > Others also witnessed impressive growth, driven by the strong performance from Hajj and Umrah Related products. Top 5 Products Others 10#11Business process Outsourcing Revenue SAR Millions -28% 387 277 Gross Profit SAR Millions 111 -26% 82 Breakdown of BPO Revenue SAR Millions 177 11 +27% 266 210 Q1 2023 Q1 2022 Q1 2023 COVID Projects Others Q1 2022 Q1 2023 Q1 2022 +28.8% GP Margin % +29.7% Key Highlights > The decrease in revenue was due to the wind down of COVID-related projects. > A slight Increase in gross profit margin as a result of the projects margin improvement. > BPO achieved 27% revenue growth, excluding one time COVID-related projects. 11#12Professional Services Revenue SAR Millions Key Highlights 48 -13% 42 Q1 2022 Q1 2023 > Decrease in Revenue is mainly due to a slight decrease in the number of Projects. > Decrease in Gross Profit and Gross Profit Margin is a result of the end of higher profitability projects. Gross Profit SAR Millions -84% 19 Q1 2022 3 Q1 2023 39.4% GP Margin % 7.8% 12#13Balance Sheet Highlights. Cash Balance Movement SAR Millions 589 276 347 1,206 (5) Receivable Number of Days 166 149 135 2021 2022 Q1 2023 Beg Cash bal. 2023 CF from Operating CF from Investing CF from Financing End cash Bal. 2023 Payable Number of Days Key Highlights > Positive Cash-Flow from Operating activities that represents 86% of Net profit. > Cash, Cash equivalent and short-term investment position of SAR2.9bn (Dec-22: 2.7Bn). > Continuous decrease in Receivable days, as a result of increase in collection from Government customers and increase in Revenue generated from Private Sector. 58 49 42 22 2021 2022 Q1 2023 13#141 Key Highlights 2 Financial Performance 3 علم Elm 2023 Outlook www.elm.sa#152023 Guidance SR Q1 2023 Actual YE 2023 Guidance Revenue Growth 18% 14%-16% Oooo 25% 19%-21% EBIT Margin SR CFO as % of Net Income 86% 80%-90% 15#16Elm Contact Investor Relations Department Ibrahim Almuhanna Head of Investor Relations Tel: +(966) 11 461 8500 Email: [email protected] Visit our Website (click here) علم Thank you,, Elm www.elm.sa