#1stc group investor presentation Investor Relations Q1, 2021 stc#2Index 1 Saudi Arabia's Macro-Economic Environment 2 KSA Telecom Market Overview 3 stc Profile 4 Strategy Overview 5 Business Overview 6 Sustainability at stc 3 9 13 24 27 36 7 Financial Highlights Q1, 2021 38 Investor Presentation 2021 | stc group stc#3Saudi Arabia's Macro- Economic Environment stc#4Domestic Macroeconomic Indicators 4 Gross Domestic Product (GPD) Growth According to GASTAT data, real GDP showed that the economy decreased by 4.1% in 2020 compared to 2019. This negative growth resulted mainly from the contraction in oil sector by 6.7%, in addition to a negative growth rate of 2.3% recorded in the non-oil sector. The private sector shrunk by 3.1%, and the government sector also showed a negative growth rate of 0.5%. Bn (SAR) 3,500 Saudi Unemployment Rate (15+) GASTAT's latest labor market release for Q4, 2020 showd that Saudi unemployment rate decreased to 12.6%, down from 14.9% in Q3, 2020. Male unemployment decreased to 7.1%, down from 7.9%, whereas female unemployment decreased significantly to 24.4%, down from 30.2% in Q3 2020. 42% Investor Presentation 2021 | stc group 20.0% 2,949 2,974 25% 3,000 2,760 2,800 2,836 31.0% 30.9% 31.1% 30.9% 32.5% 31.7% 31.1% 30.8% 30.8% 31.4% 30.2% 34% 2,582 2,625 Source: MoF 28.2% 2,517 15.0% 2,454 2,419 15.4% 14.9% 24.4% 2,500 15% 26% 12.8% 12.9% 12.9% 12.8% 12.7% 12.5% 12.3% 12.6% 12.0% 12.0% 11.8% 2,000 10.0% 18% 5% 1,500 5.0% 1,000 7.5% 7.6% 7.6% 7.5% 6.6% 6.6% 6.0% 5.8% 4.9% 5.6% 8.1% 7.9% 7.1% 10% -5% 500 0.0% 2% 0 -15% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Unemployment Rate Male Female Nominal GDP (SAR) Nominal GDP % (Change) Real GDP (% Change) Source: GASTAT Source: GASTAT Inflation Rate The general consumer price index (CPI) registered in Q1, 2021 a Y-o-Y surge by 3.4% as it was projected that inflation will rise due to the continues impact of VAT increase from 5 percent to 15 percent that was effective starting from July 2020 onwards. Yet, a slight decline by 0.4% was witnessed in Q-o-Q. 2.5% 5.7% 4.90% 2.8% 2.2% 2.1% 5.30% 1.5% 1.0% 0.2% 0.5% -0.7% -0.8% 1.9% 2.1% 2.2% -0.8% -0.5% -1.1% 31-Mar-16 30-Sep-16 30-Jun-16 Source: SAMA 31-Dec-16 31-Mar-17 30-Jun-17 31-Mar-18 30-Sep-17 31-Dec-17 30-Jun-18 30-Sep-18 31-Dec-18 -2.1% 31-Mar-1970 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20 31-Dec-20 30-Sep-20 31-Mar-21 Bn (SAR) 1200 Government Outlook on Expenditures & Revenues 50% 1,020 990 955 1000 928 941 833 849 864 40% ༔ ༔ ༔ ༔ ° 400 200 32.7% 33.3% 600 26.0% 30% 20% 10% 0% 2020 (budget) 2021 (budget) Total Revenue 2022 (projection) Total Expenditure 2023 (projection) Debt (%GDP) stc#5Young and Robust Population 5 Saudi Population → Saudi population is the largest and youngest demographic in the GCC region. → 2019 GASTAT data showed that Population Census (Mn) 35 33.41 34.21 32.55 10% 31.79 30.77 31.02 13.10 12.65 30 12.14 11.71 10.07 10.24 25 62% of the population is between the age of 15 and 49. 5.39% 20 15 4% 2.49% 2.65% 2.41% 2.38% 0.80% Distribution by Age Group (2019) 7% 28% 1% 10 20.70 20.77 20.08 20.41 20.77 21.11 5 -2% 2014 2015 2016 2017 2018 2019 Saudi Non-Saudi Growth Rate Source: GASTAT Foreigners in the Saudi Labor Force → Latest General Organization for Social Insurance (GOSI) figures showed a decrease in the rate of expat exodus in Q1, 2021. → Despite the increase in number of workers during Q1, 2020, approximately 417 thousand of expats departure by Q1, 2021. 8.0 7.0 3% 38% Investor Presentation 2021 | stc group 31% 0-19 20-39 40-64 65+ (Mn) 9.0 6% 7.91 7.71 7.40 3.6% 7.13 4% 6.90 6.71 6.58 6.90 6.71 2% 6.58 6.65 6.52 6.67 6.41 6.44 6.27 6.25 -1% -0.3% 6.0 -0.8% -1.3% -1.5% 5.0 4.0 -0.4% -0.9% -1.3% -2.0% -2.5% -4.1% -2.7% -3.4% -3.3% -3.6% -3% 3.6% -2.1% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Source: GOSI Male Female Growth -5% stc#6Communication Sector Spending 6 Investor Presentation 2021 | stc group Average Historical Communication Consumer Spending (By Total Households) → Throughout the years, percentage of consumer spending on communication services slightly witnessed a decrease. → This is mainly due to a general reduction in the operational costs making telecom operators to offer competitive packages in the market. Segmentation of Average Consumer Spending in 2018 (By Total Households) Food And Beverages ■Tobacco 17.2% 20.0% Fabric, Apparel and Footwear Average of Consumer Average Household Spending on Year % Salaries Communication Housing, Water, Electricity, Gas, and other Fuels Furniture and Furnishings 5.1% Services Health 2.6% 2018 12,818 659 5.14 ■Transport 2.8% 2013 11,522 726 6.30 ■Communications 2007 10,280 665 6.47 Recreation and Culture 5.1% Source: GASTAT Education 11.9% Restaurants and Hotels Miscellaneous Personal Goods and Services 1.3% 6.2% 0.5% 3.8% 23.3% stc#7Aligning stc Strategy with 2020 NTP & 2030 Vision 7 Investor Presentation 2021 | stc group رؤية VISION 2030 المملكة العربية السعودية KINGDOM OF SAUDI ARABIA 2030 Vision Key Objectives → Raise our ranking on the E-Government Survey Index from our current position of 36 to be among the top five nations → Increase the private sector's contribution from 40% to 65% of GDP → Increase women's participation in the workforce from 22% to 30% → Move from our current position as the 19th largest economy in the world into the top 15 → Lower the rate of unemployment from 11.6% to 7% → Increase SME contribution to GDP from 20% to 35% → Increase our capacity to welcome Umrah visitors from 8 million to 30 million every year National Transformation Program NTP 2020 Key Objectives → Provide broadband services to all KSA regions by stimulating investment in infrastructure and regulatory frameworks → Support e-commerce → Bridge the digital gap in the skills of ICT users → Increase the IT industry's contribution in the non-oil GDP → Rehabilitation of specialized Saudi human capital and employment in CITC sector → Develop and activate smart government transactions based on a common infrastructure stc Strategy Elements 1 → Lead the market in digital services and creative solutions → Drive efficiencies through digital transformation → Digitalize processes, internal operations, delivery engine and commercial approach → Instill culture change → Grow B2G and B SME segments → Lead technological advancement and provide best in class connectivity platform stc#8KSA & Telecom Industry 8 Investor Presentation 2021 | stc group Macro Economy & Liquidity Regulatory Environment Government Initiatives → The point-of-sale (POS) transactions grew by 20% to SAR 31.05 billion in February 2021, from SAR 25.93 billion in the same period last year, data issued by the Saudi Central Bank (SAMA). → Assets held by the Saudi Central Bank (SAMA) saw a decline of SAR 17.1 billion month-on-month (MoM) to SAR 1.834 trillion in February 2021, according to data released by the central bank. → Saudi Arabia's non-oil exports grew by 16% year-on-year (YoY), or SAR 2.56 billion, to SAR 18.91 billion in January 2021, according to the General Authority for Statistics (GASTAT). → Saudi Arabia's oil exports grew by 1% month-on-month (MoM) to 6.58 million barrels per day (bpd) in January 2021, according to the Joint Organizations Data Initiative (JODI). → S&P Global Ratings affirmed Saudi Arabia's sovereign credit ratings at 'A-/A-2' with a stable outlook. The credit ratings agency said in a statement that the Saudi economy will likely return to the positive growth in 2021 after the contraction seen in 2020. → Companies operating in the telecommunications sector in Saudi Arabia invested over SAR 40 billion in digital infrastructure over the past three years, according to Communications and Information Technology Commission (CITC) governor Mohammed Altamimi. → The Saudi telecommunications industry is estimated at SAR 70 billion with the information technology market size at SAR 64 billion and Saudi postal services at SAR 6.4 billion. The market value of the Saudi telecom operators is estimated at SAR 246 billion, according to (CITC) governor Mohammed Altamimi. → The Communications and Information Technology Commission (CITC) launched the 'Game Mode' initiative, with the aim of enhancing Saudi Arabia's booming gaming sector. → Crown Prince Mohammed Bin Salman launched "Shareek" program to strengthen the partnership with the private sector. The program aims to enhance the resilience and capacities of major regional and foreign companies. It also seeks to enhance the Saudi government's position as a contributor for trade and strengthen the Kingdom's reputation as a global economic power. → Crown Prince Mohammed Bin Salman said that several initiatives that will be launched in the short term could boost expenditure over the next decade to SAR 27 trillion, which would exceed spending in the last 300 years. → Crown Prince unveils Green Saudi and Green Middle East Initiatives. The Initiatives will set the Kingdom's direction to protect earth and nature. → Saudi Arabia licensed 91 new factories worth SAR 857 million in February 2021 → Minister of Industry and Mineral Resources, Bandar Alkhorayef, launched "Made in Saudi", under the sponsorship of Crown Prince Mohammed bin Salman. The move aims to support national products and services at both local and global levels. stc#9KSA Telecom Market Overview 9:41 Instagram Fiber for half the price 50% For a limited time To learn mor stc 400 Fere the 50% limited time da Coulmate 3000 fr ejected it to be better stc#10Differentiated Through Quality 10 4G Mobile Download Speed (Mbps) (Mbps) 88.2 72.8 78.2 51.4 61.8 66.2 37.9 Ookla ■■Q1-Q2 2019 Q3-Q4 2019 Q1-Q2 2020 Q3-Q4 2020 4G Mobile Upload Speed (Mbps) (Mbps) ■ Q1 2020 106.2 Meqyas Q2 2020 ■Q3 2020 ■Q4 2020 20.0 21.5 22.0 17.0 20.8 20.2 21.0 22.8 Ookla ■Q1-Q2 2019 Q3-Q4 2019 Q1-Q2 2020 Q3-Q4 2020 Meqyas ■ Q1 2020 ■ Q2 2020 ■ Q3 2020 ■ Q4 2020 Investor Presentation 2021 | stc group sic#11Trending Technologies Telecom market has been going through a fixed-mobile convergence wave to become an ICT one-stop-shop for their business customers, providing mobile and fixed telecommunication services and IT and loT solutions, under one contract (and therefore one billing). Investor Presentation 2021 | stc group 11 AI & ML $28.5 Million → Al & Machine Learning will grow at a steady pace in 2021 to reach $ 28.5 Mn as enterprises will use cognitive systems to monitor and refine business processes. In 2023 spending expected to reach $ 38.5 Mn. → 18% of Saudi organizations have already implemented Al whilst more than 40% are looking to invest in Al workloads within 2021. By 2023, 40% of the data collected throughout the customer journey will be used to create a better product and a personalized experience. → Saudi Arabia's Al & Data Authority will empower public sector to adopt Al use cases. Source: IDC Report, Saudi ICT Market and Forecast IoT $2.2 Billion → More than 72% of organizations in Saudi Arabia expected to deploy an loT solution to gain competitive advantage by cost reductions and improved productivity driving the spending in the kingdom to surpass $2.2 Bn in 2021 and growing to $3.08 Bn in 2023. → loT spending will be driven by analytics, application platforms, and security. → 5G technology for loT is not yet fully standardized. The next two years will be crucial for loT related to 5G standardization. Cyber Security $425 Million → Security spending is predicted to reach more than $ 425 Mn. → In 2021, more 26% of Saudi organizations will invest heavily in cybersecurity solutions. 35% of security spending in META will move to public cloud by 2023, up from 19% in 2019. 40% of spending will be on managed security services. Cloud Computing $425 Million → By end of 2021 Cloud spending in the Kingdom will cross $541 Mn. By 2023 total spending on cloud will reach $ 789 Mn. → SaaS forms 75% of Cloud spending. Top cloud applications: → Enterprise Performance → Human Capital Management → Financial Applications → Procurement Applications → Marketing Campaign Management stc#12Internet Use Based on Device Perspective as of Jan 2021 # # # # Investor Presentation 2021 | stc group Total Number of Active Internet Users: 33.58 mn Internet Users as a Percentage of Total Population: 96% Mobile Subscriptions By Type as of Jan 2021 # Total Number of Active Mobile Internet Users: B 32.03mn Mobile Internet Users as a Percentage of Total Population: 95% KSA Internet Usage 12 AA (固 Total Number of Mobile Connections: 39.53 mn Mobile Connections as a Percentage of Total Population: 113% Percentage of Mobile Connections That are Pre-paid: 62% Percentage of Mobile Connections That are Post-paid: 38% Percentage of Mobile Connections That are Broadband: 94% AA Source: Hootsuite#13We are looking forward stc Profile stc is ranked as the 3rd most valuable brand in the Middle East with a total value of SAR 34.5 bn (USD 9.20 bn) as of January 2021 stc#14stc at Glance 14 #1 in KSA in Mobile & Fixed Broadband subscribers stc is Saudi Arabia's Speedtest Award Winner for mobile network coverage during Q3-Q4 2020 A- Standard & Poor's A1 Moody's AAA Tasneef #1 in KSA in Post-paid & Pre-paid subscribers Length of deployed fiber optic cables at the end of 2020 229K KM Total stc group employees 19K & Total stc KSA employees 13.6K (2.1% turnover rate) #1 in KSA in Fixed Telephony subscribers More than 12 data centers spread across the Kingdom SAR 34.5 bn 3rd Most valuable Brand (AAA-) As of January 2021 Let's go forward Investor Presentation 2021 | stc group#15Our Journey السعودية SAUDI TELECOM.CO 1998 Company Incorporation. stc IPO (December, 2002). ■ الاتصالات السعودية SAUDI TELECOM 2005 10 million mobile subscriber mark. Launch of 3G and 3.5G mobile technology. G 2007 Stack acquisition in MAXIS Communications and its operations in Indonesia & India. Won third mobile license in Viva Kuwait. 2009 3rd mobile license in Viva Bahrain. 1998-2003 15 2003 Introduction of DSL services. 2005-2006 2007-2008 2009-2010 " STC الاتصالات السعودية Investor Presentation 2021 | stc group stc 2011 Acquired 60% stake in Sale Communication. Share Increase in AXIS Indonesia and Integral. Launched IPTV services in Saudi Arabia. 2011-2012 N 2013 Acquisition of push- to-talk (PTT) mobile operator Public Telecom Company (Bravo). Establishment of Aqalat Company. 2013-2014 2012 Fiber Optic in Saudi. Reached more than 500 residents. 2015 stc became an ICT integrated player in the region. 2014 2015-2016 SAR 5 billion Sukuk program offering (1st series was SAR 2 billion). 2017 stc ranked as most valuable brand in Saudi Arabia. Establishment of STV with $500 million capital. 2017-2018 2016 ☐ Share increase in VIVA Kuwait up to 51.8% and Sale Co. to 100%. ■ 1 " " 2019 $5 billion international Sukuk program offering. Establishment of Tawal Company. Launching 5G services. Launched the new brand of stc. Uber acquisition of Careem (in which stc owns a direct stake of 8.8% and an indirect stake of 9.3%). 2018 2019-2020 Comprehensive settlement agreement with the Government. Announcement of new Dividend Policy. Launch of stcPay. 2020 Received highest credit rating by SIMAH Rating Agency "Tassnief". Sale equity stake of 15% in stcPay to Western Union with a value of SAR 750 million (USD 200 million). stc 2006 Increased capital from SAR 15 billion to SAR 20 billion. 2008 Stake acquisition in Oger. Launched Indonesian operation under the name AXIS. 2010 Launched Bundled services.#16Our Regional Footprint 16 Expanding our footprints across four countries has unlocked growth opportunities... 2007 Kuwait 2009 Bahrain Kingdom of Saudi Arabia 2008 Malaysia Investor Presentation 2021 | stc group stc#1717 5G technology 1st Launched Commercial Network ■ stc group is the first telecom the fifth company launching generation technology in the region commercially (KSA, Kuwait and Bahrain). The fifth generation in the Kingdom was launched through broadband applications. 4,000 5G Towers ■ Total number of 5G towers as end of 2020 reached 4,000 deployed in more 47 cities across the Kingdom. ■ The next phase of the 5G expansion in Saudi Arabia, is to increase the network by 2,300 towers to reach over 71 new cities across the Kingdom. ■ stc deals with various international suppliers for providing 5G equipment. loT Technology ■ The company will benefit from Internet of Things (IoT) enabled by 5G technology. It will not only enhance operational efficiencies and user experiences but also provide new revenue opportunities. 5G in industrial technology applications is a future plan, as the company operates in several areas, including oil and gas, service agencies and various industries. Investor Presentation 2021 | stc group Award Wining stc group won 3 international awards at the 5G MENA Summit.#18Submarine Cable Investment & Optimized Connectivity 18 HATLANTIC # Cable System 1 SMW5 2 SMW4 3 IMEWE 4 EIG 5 SMW3 6 1-SAS 7 2-SAS 8 EASSY 9 MENA 10 FLAG 11 12 GBI JADI FRANCE ALGERIA LIBYA SOUTH AFRICA Investor Presentation 2021 | stc group TURKEY EGYPT Name of Cable South Asia Middle East #5 Western Europe South Asia Middle East #4 Western Europe India Middle East Western Europe Europe India Getaway South Asia Middle East #3 Western Europe 1- Saudi Arabia Sudan IRAQ IRAN SAUDI ARABIA SAS-2 SUDAN KENYA 2- Saudi Arabia Sudan Eastern Africa Submarine System Middle East North Africa Fiber link around Global Gulf Bridge International Jeddah Amman Damascus Istanbul YEMEN MEWE SOMALIA INDIA EMOZAMBIQUE INDIAN OCEAN BANGLADESH CHINA PINES AUSTRALIA → stc has given a strategic importance to establish its international network, as about 99% of the total communication and data transmission is carried out through Submarine Cables. → stc serves the Middle East and North Africa (MENA) region through its international network, which for more than 25 years is considered one of the leading networks in the region. → stc has signed with more than 400 operators all over the world in more than 100 countries. → stc runs more than 90% of the volume of the internet traffic and data in the Kingdom and increases the data traffic to more than 3,500 TB per day. The company passes the data flows through the largest internet gateway in the region with capacity of 4,000 GB per second. → stc is one of the initiators and founders of the fourth continental submarine cable, which extends for a distance of 20 thousand Km and connects 14 countries between Singapore and France. The company is also a founding member of IMEWE marine cable project linking India, Middle East and Western Europe. → The Company is a founding member of EIG Europe India Getaway project that extend from the UK through Alexandria with landing station in Tark mountain, Libya and Morocco, and from Egypt to India with landing station in Saudi Arabia, Oman, Djibouti and UAE. → The latest achievements was the completion of a project of an international alliance of more than 14 international communication companies. The project of establishing the SMW "South Asia Middle East West Europe" (Capacity of 24 TB per second, 20,000 km long and connects 17 countries). → stc is currently preparing to engage in a new project (Africal cable), which connects a number of African countries, with capacity of 36 TB per second and connect more than 12 countries in Africa and Europe through the Kingdom. stc#19Key Credit Strengths 19 Experienced best-in-class management team → Management team has significant -> Largest telecom operator in the MENA region Market cap of SAR 254 bn (USD 67.63 bn), and presence in 4 countries (as of 31-March- 2021). experience across telecom products & -> markets and has a proven track record of delivery. 1 8 Extensive & developed telecommunications infrastructure → Largest fixed line network in Saudi Arabia. 7 stc 3 → Comprehensive cross-border network serving all operators in MENA. → Regional pioneer in 5G & FTTH deployment -> Sound business and growth strategy Given its strong financial position, stc is able to swiftly capitalize on growth opportunities via organic and inorganic growth. 5 Market leadership in Saudi Arabia (the largest market in the region) → 73% market share by revenue, as of 31-Dec- 20. → Strong financial performance Consistent growth in EBITDA Margin (14% since 2016). Investor Presentation 2021 | stc group Strong Government links and strategic importance → 70% government ownership; national flagship company; significant contributor to non-oil GDP and employment. Strong balance sheet and Healthy Cash Flow Well placed to gain access to efficient, substantial levels of debt to fund future investments if needed. stc#20Diverse Board of Directors 20 20 HRH. Prince Mohammed Khalid ALFaisal Chairman of the Board Ms. Rania Mahmoud Nashar Board Member H.E. Dr. Khaled Hussain Biyari Board Vice Chairman Mr. Arndt Rautenberg Board Member H.E. Mohammed Talal Al-Nahhas Board Member Ms. Sara Jammaz AlSuhaimi Board Member Mr. Ahmed Mohammed Al-Omran Board Member Mr. Sanjay Kapoor Board Member Mr. Jameel Abdullah AlMulhem Board Member Mr. Waleed Ibrahim Shukri Board Member Mr. Yazeed Abdulrahman AlHumied Board Member Eng. Olayan Mohammed Alwetaid Chief Executive Officer (CEO) Investor Presentation 2021 | stc group stc#21Market Performance 21 Share Performance Vs. Telecom & TASI Index → stc maintained its momentum and outperformed the telecom sector and TASI Index. 24% 20% 16% 12% 8% 4% 0% -4% 3-Jan-21 8-Jan-21 13-Jan-21 18-Jan-21 Key Metrics 126.8 31st March 2021 23-Jan-21 28-Jan-21 2-Feb-21 7-Feb-21 12-Feb-21 17-Feb-21 22-Feb-21 27-Feb-21 4-Mar-21 -TASI Telecom stc 9-Mar-21 14-Mar-21 19-Mar-21 24-Mar-21 29-Mar-21 19.6% YTD 15.3% YTD 15.0% YTD Investor Presentation 2021 | stc group Market Capitalization of Telecom Sector As of 31st March 2021 0.31% 4.64% 7.83% 87.23% stc ■Mobile ■ Zain Atheeb Closing price Issued Shares (Mn) Market Cap Market Cap % Tadawul 2,000 253.60 2.6% Price/ Earnings 21.42x Price/ Book Dividend Yield 3.90x 3.15% stc#22Investor Presentation 2021 | stc group Ownership Structure As of 31st March 2021 Foreign Ownership 5.59% 24.41% 70% ■Public Investment Fund (PIF) Free Float Shares Market Capitalization As of 31st March 2021 Among Major Saudi Listed Companies (SAR Bn) 352.2 253.6 247.0 237.8 Imm….... 97.9 67.3 66.6 54.1 52.0 SABIC STC Al Rajhi SNB Saudi Riyad Maaden SABB Al Marai Electric Bank Price Vs. Yield Fluctuation Market Performance 136 128 120 112 104 96 88 22 22 MSCI Tadawul 30 Index 4.00% Company Float Adj Mkt Cap (USD bn) Index Wt. (%) AL RAJHI BANKING & INV 32.27 14.76 SAUDI BASIC IND CORP 28.17 12.88 3.20% Saudi Aramco NATIONAL COMM BANK 21.12 9.66 20.81 9.52 2.40% Saudi Telecom Co As of 31st March 2021 20.29 9.28 29/03/2021 24/03/2021 19/03/2021 14/03/2021 09/03/2021 04/03/2021 12/02/2021 28/01/2021 02/02/2021 07/02/2021 17/02/2021 22/02/2021d 27/02/2021 23/01/2021 18/01/2021 13/01/2021 08/01/2021 03/01/2021 stc#23Wining Awards 23 23 Investor Presentation 2021 | stc group 2010 -> -> Advertiser Excellence in the Middle East and North Africa by Dubai Linux. Operational Excellence Award at the Global Forum for Communications TM Forum Management World. → Transparency Award for Saudi Stock Companies by BMG Financial Consultations Firm. 2011 Customer Care Excellence Award by Middle East Excellence Awards Institute. -> Cisco Most innovation Data Center Project awards by Cisco International. -> → Leadership Award for pioneer Role in Telecom Industry at TMT Conference Middle East. Best operator of mobile phone services at TMT Conference. -> -> International Award for Development, Experience Transfer, and Innovation at TMT Conference Middle East. 2012 Distinctive award for Employment Nationalization. Mobile Operator of the Year by TMT Finance. -> -> -> Best iPhone app. ->. Best Mobile Service Provider in the fourth annual poll by Mobile Trend. -> Mid East Media Reach-Out Award by Datamatix International. -> →> 2016 → Multiple creativity awards on outstanding work on the Rayi7 Rayi7, Dawri Plus, and Laywagif campaigns by Dubai Lynx. → Mega contact centers and "social media services" awards. -> Middle East Grand Prix at the Lorez Award Ceremony. → Gold medal for "contact center" award and the silver medal for "Best use of Social Media in the Contact Center" award during Contact Center World Summit. → Two awards for being the leader in the telecommunication industry by Effie Worldwide. 2017 → 7 awards (1 Grand Prix, 2 silver, 4 bronze) on creativity portrayed in advertising campaigns by Dubai Lynx International Festival of Creativity. → Makkah excellence award for its strategic partnership. -> Excellence Award in Corporate Governance at the 2nd Annual Corporate Governance Conference by Alfaisal University. SPEEDTEST award for the fastest mobile internet in the Kingdom. 2018 -> → Golden Award for Mystc Campaign for the Effective Integration of the Channels Partnerships by the WARC Media Awards. The Best Provider of Telecom Services to Airports in Emerging Markets by Arabian Reach. Distinction Award for Information Security Control and Operating Project for the entire region by Symantec. 2013 -> -> -> -> Customer Services Excellence Award by Global Telecom Business. MENA performance excellence and telecom service delivery Award by COMMSMEA magazine World-renowned ISO Certification for effectively handling customer complaints in call centers by Lloyd's Register Quality Assurance (LRQA). Procurement wins EIPM Award. 2014 →. 4 Mena Cristal awards for its print and outdoor Roaming campaigns by Mena Cristal event. 2015 -> -> Obtains OKAZ and EFFIE awards. Best wholesale operator for data and voice services in the MENA region by Telecoms World Middle East. -> Silver Award for the "Unveil Saudi" campaign for the Effective Use of Partnerships by the WARC Media Awards. → Pioneer Marketing Award as Best Advertising Campaign for Digital Day. 2019 -> 6 Awards at Dubai Lynx 2019 Festival. → King Salman honored stc for supporting the Founder's Equestrian Cup Festival. → stc Academy won the Silver award in Technology by the Global Council of Corporate Universities (GCCU). → -> 4 Awards by Effie Worldwide as a leader in the telecommunication industry. Won Makkah excellence award for its strategic partnership. -> -> → Won the Speedtest award for the fastest mobile internet in the Kingdom. Golden Award for "Mystc campaign" and with the Silver Award for "Unveil Saudi". Won the Excellence Award in Corporate Governance by Al Faisal University. -> Won the Speedtest award for the best mobile coverage. 2020 → wins the best apply of Customer Experience Management program Award 2020. → First company headquartered in Saudi to be accredited by CREST for penetration testing services. → Won the best mobile coverage award by Speedtest. -> Won the fastest 5G and mobile network award by Speedtest. stc#24Strategy Overview stc#25Our vision & values 25 Our vision We are a world-class digital leader providing innovative services and platforms to our customers and enabling the digital transformation of the MENA region. Our purpose We create and bring greater dimension and richness to people's personal and professional lives. drive > devotion 3 dynamism Proactive, Inquisitive and Inventive Caring, Committed and Trustworthy Agile, Collaborative and Fresh Investor Presentation 2021 | stc group Our values form the basis of our culture. We foster trust, in a collaborative and constructive environment where innovation is encouraged, and people have the freedom and support to turn ideas into achievement. We build strong supportive relationships and knowledge transfer among employees and stakeholders. We recognize that a diverse and inclusive workplace sparks innovation and creativity, which makes our offerings to our customers more competitive and appealing. stc#26Our Strategy for Success 26 -> Our DARE strategy aims to strengthen our position as a leading telecom and ICT company. → The key focus areas and strategic ambitions to guide us in pursuing our purpose are: Investor Presentation 2021 | stc group d digitize stc - Instill digital mindset and unlock the potential of digital and analytics capabilities. -> Transform into an agile technology company and embrace new ways of working. a -> -> -> -> accelerate performance Maximize shareholder returns by transforming costs and monetizing assets. Connect our market through leading next-gen technology and digital offerings. Be a role model for sustainability and corporate governance. Lead company-wide culture change and be the employer of choice for top digital talent. -> -> r dare reinvent experience Excite customers with a seamless, personalized and secure experience. Be the trusted partner-of-choice for business in the region. e expand scale and scope → Grow by expanding into selected growth pillars. within digital services and core. stc#27Business Overview stc#28Subsidiaries & Global Presence 28 International Subsidiaries Local Subsidiaries Channels by stc 100% Specialized by stc 100% Tawal 100% Solutions by stc 100% Aqalat 100% stc pay 100% Telecom Commercial 100% Investment Co Ltd Advanced Technology and Cybersecurity 100% stc Bahrain 100% stc Kuwait 51.8% stc Asia 100% stc Gulf Investment 100% Sales & distribution arm of stc group and one of the largest telecom distribution companies in the Middle East, with operations in Saudi Arabia, Bahrain and Oman. Providing the business, governmental, industrial & commercial sectors with services and solutions addressing instant collective wireless communications. Responsible for owning, constructing, operating, leasing and investing in stc KSA towers. A leading regional ICT player who provides a wide range of information and communications technology & services beyond the traditional telco offerings. Develop & manage the company's properties in all parts of the Kingdom by adopting the concept of smart developments. A digital secure wallet that empowers individuals to take full control of their finances at their fingertips anytime anywhere. Operation and maintenance of telecommunications networks, business systems and computer and Internet networks. Established in the fourth quarter of 2020, with a capital of SAR 120 million to provide cybersecurity services. The company offers mobile, international telecommunications, broadband and other related services. Joint Ventures Associate Companies Arab Satellite Communications 36.6% Organization Investor Presentation 2021 | stc group Offers number of services: regional telephony, television broadcasting, regional radio broadcasting, restoration services...etc. Virgin Mobile 10% A mobile virtual network operator. KSA Oger Telecom Limited 35% stc through one of its subsidiaries (stc Turkey Holding Ltd) acquired a stake in OTL. Arab Submarine 50% Constructing, leasing, managing and operating a submarine cable connecting the Kingdom and the Republic of Sudan. Contact Center (CCC) 49% Provide call center services and answer directory queries with Aegis Company. Binariang GSM 25% Holding (BGSM) An investment holding group registered in Malaysia which owns 62% of Maxis Malaysian Holding Group ("Maxis"). The company offers mobile, international telecommunications, broadband and other related services. Invests in companies operating in Malaysia and owns investments in stc Malaysia Holding LTD in which it holds a 25% stake in the Binariang GSM Holding Group. A private company whose operations provide services and support to the Group's investment activities. The company headquarter is in Bahrain. stc#29KSA First Tower Co. Subsidiary Overview 29 29 Solutions Offered Investor Presentation 2021 | stc group Date of Incorporation Invested Capital Subsidiary Objective stc Ownership Subsidiary Operation Tower Portfolio Infrastructure Sharing → Founded in 2018 → SAR 2.5 billion → To be responsible for owning, constructing, operating, leasing and investing in the towers. → Establishing itself as the leading player in the Saudi telecommunications infrastructure market, aspiring to extend its services and coverage across the region. → 100% → In Q1 2019, stc Towers Co. obtained the necessary operational licenses (CITC). → TAWAL now owns a portfolio of more than 15,000 telecom towers spread across the Kingdom. → 70% of TAWAL's sites are ground-based towers, the rest are rooftops. → In Feb 2020, the CITC announced a new open access regulation allowing infrastructure sharing between operators. انش Built-to-Suit Selects an optimum spot and constructs wireless communication towers, tailor-made to match the business' needs. Colocation Engage in sharing passive infrastructure through colocating on our towers to densify the network. In-Building Solution Providing In-Building-Solution "IBS" to boost superior internal coverage with cutting-edge technologies. O&M as a Service Offering operations and maintenance services, including preventive maintenance, fault management, energy management and other services. TAWAL SEC stc#30Our ICT Arm 30 Subsidiary Overview Services Offered Investor Presentation 2021 | stc group Date of Incorporation Invested Capital Subsidiary Objective stc Ownership Subsidiary IPO → Founded in 2002 → SAR 1.2 billion → One of the major names in the field of technical solutions, and biggest suppliers in the kingdom. → To enable digital transformation to support government and private sector goals; spreading the benefits of ICT services to bring down the cost of progress and speed up the journey into the future. → Through an extensive partner ecosystem, the subsidiary aim to deliver the most advanced end-to-end solutions, and managed services, for compute, storage and network, software and hardware. → 100% → In Oct. 2020, solutions by stc have officially announced its potential IPO. → The IPO is expected to take place either in Q2 or Q3 of 2021 as the Group will maintain the majority stake of the business. System Integration Connectivity Services Business Outsourcing Managed Services IoT Digital Services Cloud Services Cybersecurity Integration Collab ☺ solutions stc by stc#31Our Fintech Arm 31 Subsidiary Overview Offered Services Investor Presentation 2021 | stc group Date of Incorporation Invested Capital Subsidiary Objective stc Ownership Registered Users Partners Business Operations → Founded in 2018 → SAR 948 million → stcPay is a digital secure wallet that empowers individuals to take full control of their finances at their fingertips anytime anywhere. Enabling users to send, receive, spend, and manage money simply through their phone. → the first fintech arm that was authorized by the Saudi Monetary Authority (SAMA). → 100% → 4.9 million (as of Dec. 2020) → In Nov. 2020, stc have signed an agreement with Western Union to sell an equity stake of 15% with a value of SAR 750 million (USD 200 million). → The transaction is expected to be completed during 2021. → The company extended its operations to be present in Bahrain in which Bahrain Channels supporting stcpay in expanding their partners and point of sales, presence and coverage. 8 Transfer money Send and receive money with family & friends from your contacts! sic pay 18 α Musaned Local Transfer Transfer money to a local banks Now you can transfer the domestic workers' salaries through Musaned service. on stc pay in seconds! Cash withdrawal stc International transfer Transfer internationally to more than 525,000 Western Union agent stc services Pay your sto bills or recharge your sawa number Withdraw cash from your mobile through ANB Bank ATM or merchants Purchases Pay for your purchases from merchants anytime, anywhere stc pay stc VISA#32Our Sales Arm Subsidiary Overview Date of Incorporation → Founded in 2008 32 32 Invested Capital → SAR 100 million Investor Presentation 2021 | stc group 266 Stores 46,000+ Merchants Subsidiary Objective stc Ownership Optimization Plan → Considered as the sales and distribution arm of stc Group. → stc Channels is the leading and one of the largest telecom distribution companies in the Middle East with operations in Saudi Arabia, Bahrain and Oman. → The company is a wholesaler and retailer of smart card services, communication equipment and computer services, selling and reselling of all fixed and mobile telecommunications services and maintenance and operation of commercial complexes. → The company's head office is located in Saudi Arabia. →100% → Reduced number of branches and distribution centers by 38% in the last 3 years. → Increased the number of self-service machines which reflected a growth in the number of transactions by 380% in only two years. → Digitized inventory management by using a digital order management system. → Launched digital platforms to boost online sales: MyStore, Mystc, electronic recharging...etc. 122 + Distribution Hubs 57,000 + POS 3,200 + Agents 10 Mn+ Customers 0651XXXXXXX DQ Paid 1,000,000 channels stc by stc#33Specialized by stc 33 Subsidiary Overview Date of Incorporation Invested Capital Subsidiary Objective stc Ownership → Founded in 2002 → SAR 252 million → The only national licensed operator providing the business sector, and the governmental, industrial and commercial sectors with services and solutions addressing instant collective wireless communications. → 100% reliable communication for government, public and personal safety. Services Offered TETRA Services Mobile Telephony Location-Based Services Alert Service Messaging Services Inmarsat Control Room Solutions Investor Presentation 2021 | stc group specialized stc by stc#34AQALAT 34 Subsidiary Overview Date of Incorporation Invested Capital Subsidiary Objective stc Ownership Projects Under Management → Founded in 2013 → SAR 70 million → To develop and manage the company's properties in all parts of the Kingdom by benefiting from the capabilities of the Group and its applications by adopting the concept of smart development that is based on integrating technology in all projects and investments. → 100% Riyadh Project (Smart Square)* The project is located in the heart of Riyadh City in Al- Mursalat district, sitting on a 140,000 m2 land. In this project, AQALAT aspires to achieve its vision of future projects by enabling Smart Cities concepts. It is a mixed-use project that include residential, offices and commercial units. Dammam Project (Smart Boulevard) The project is located in the southern part of the communications complex in Al-Rayan district, in the heart of Dammam City situated on a land of 380,000 m2. The project is a mixed-use project with the commercial part being the project's main concept. AQALAT aim this project to achieve its vision by enabling Smart Cities applications. *During the fourth quarter of 2019, the Company established a special purpose vehicle (SPV) subsidiary (Smart Zone Real Estate Company) in the kingdom with a share capital of approximately SR 107 million and its main activity is the development, financing and management of real estate projects, the establishment of facilities, complexes, commercial, office and residential buildings. Riyadh Project Dammam Project julfil: stc AQALAT Investor Presentation 2021 | stc group#35Saudi Technology Ventures (VC Fund) 35 Investor Presentation 2021 | stc group STV is an independent VC fund with a total capital of USD 500 anchored by stc with access to its assets (e.g., network, channels, analytics, customer base...etc.) unifonic Your Communication Code Vezeeta.com -> -> Leading a SAR 78.75 million (USD $21 million) investment round in unifonic. 150+ Countries, 720+ Operators. -> Vezeeta has managed 3 million bookings in the region. -> Served 2.5 million consumers/patients. → تلفاز 11 Telfaz11 88 MRSOOL نون noon Academy أكادمي TRUKER ANY TRUCK ANY TIME ANY WHERE FIREFLY Connected more than 10,000 doctors in Egypt, Saudi Arabia and Jordan. -> Leading an investment round of SAR 33.75 million to accelerate the company's growth and scale-up plans. -> -> -> → A multimillion-dollar investment in Mrsool. The leading Saudi on-demand delivery service. USD $270 million in transactions in 2018. 4 million registered users. → A Co-leading SAR 32.2 million investment in noon Academy. → noon Academy is the leading EdTech platform in the Mena Region. → Brings innovation to trucking with On-Demand aggregation in Real-Time. →100% automated booking, real-time tracking of trucks, smart asset utilization, & cost efficiency. → Delivers full screen, engaging media and measurement on rideshare vehicles and taxis. → Creating a significant new ad format at scale. The scale of rideshare networks has created a large opportunity to provide digital out of home advertising with granular city-block and time targeting. STV Stc#36Sustainability at stc stc#37Sustainability at stc Investor Presentation 2021 | stc group Our approach to sustainability involves maximizing economic value, creating positive environmental impact and supporting progressive social development. By aligning our actions with the goals of the Saudi Vision 2030, we are helping to build a better future. We believe the steps we have taken to date are already catalyzing digital transformation in KSA. 01 Doing business with integrity ■ One of the first companies in KSA to implement corporate governance throughout the management structure as early as 2004 ■ 300+ employees attended anticorruption training and awareness sessions Partnered with the World Economic Forum - Partnering Against Corruption Initiative (PACI) forum to adopt global principles for countering corruption 04 Expanding access to technology and connectivity Recorded 62 mbps mobile download speed in KSA by December 2019 ■ We have the largest broadband network in KSA, complemented by significant fiber optic and 5G network ☐ 02 Enhancing economic impacts ■ 50% of procurement spending towards locally registered suppliers ■ SR 54,368 million in revenues (2019)- the highest annual revenue since 2013 ☐ Through Rawafed, provided support to SMEs to the value of SAR 4 billion in 2019, equal to one-third of total support given to local suppliers 05 Advancing innovative digital opportunities Through InspireU, incubated 28 startups that support ICT/ digital innovation First operator in KSA to launch 5G commercial services 06 Empowering people 2.1% turnover rate Hiring of female employees reached 528, starting from 0 in 2015 288,462 total hours of employee training 03 Enriching lives and experiences ■ 100% of employees have completed iGate training on issues regarding privacy, data protection and cybersecurity ■ One of the best complaints to subscriber ratio in the world - 0.17% by Dec 2019 ■ SAR 2.5 billion in community investments, through direct contributions 07 Caring for the environment ■ 18% decrease in direct energy consumption from buildings and fleet 50% reduction in paper consumption compared to 2018 ■ Joined the global movement of leading companies aligning their business with the Paris Agreement to reach net zero emissions by no later than 2050 *For further details, please refer to the sustainability report at stc website or click here 37#38Financial Highlights stc#39Quarterly Performance Revenue 12.6%) 15.22 14.92 14.88 13.93 Q1-20 3.1% 15.70 EBITDA 5.33 5.34 9.6% 3.7% 5.79 5.84 5.63 38.9% 38.2% 37.0% 37.2% 35.8% Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 EBITDA Margin Q4-20 Q1-21 Operating Profit 15.9% Net Profit 1.4% 13.9% 8.6% 2.91 3.46 3.48 2.95 3.21 3.00 3.06 20.9% 2.77 2.72 2.59 23.2% 22.2% 21.6% 21.1% 20.5% 18.8% 18.6% 18.3% 17.0% Q1-20 Q2-20 Q3-20 Operating Margin Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Net Profit Margin Numbers are in SAR Billions 39 Investor Presentation 2021 | stc group The Group achieved an outstanding performance during the first quarter of 2021. The company was able to grow its top line by 12.6% which was supported by: → Increase in Consumer Business Unit revenues due to the growth in the Broadband & Fixed Wireless Access subscriber base by 10.1%, FTTH by 26%, working lines by 3.1% and data revenue by 4.5%. → Enterprise Business Unit revenues grew by 33.4%, as a result of the increased demand for the company's services & products along with its ability to swiftly respond to customers' request and demand in a competitive manner. → Wholesale Business Unit managed to increase its revenues by 5.1%. → Revenues generated by stc's subsidiaries grew by 23.2%, which contributed positively to the group's overall results. ste#40Revenue Development 40 Revenue Segmentation Geographical Segmentation Investor Presentation 2021 | stc group 13.93 Revenue Q1, 2020 0.93 0.51 -0.31 0.63 A stc KSA A Channels by stc 12.6% A Other Operating Segments* A Eliminations / Adjustments 15.70 7% SAR 15.70 10 Revenue Q1, 2021 *Other operating segments include: stc Kuwait, stc Bahrain, Solutions by stc, Specialized by stc, stc Gulf, Aqalat, Tawal, stcpay and advanced technology and cybersecurity Company. 93% I Domestic Revenue ■International Revenue Numbers are in SAR Billions stc#415-Year Historical Performance Revenue +2.3% 52.67 51.96 50.66 54.37 58.95 2016 2017 2018 2019 2020 Operating Profit +5.1% 12.73 12.25 12.48 10.99 9.95 EBITDA +4.1% Investor Presentation 2021 | stc group 22.09 21.26 19.84 18.03 18.43 2016 2017 2018 2019 2020 Net Profit +4.3% 10.99 10.78 10.66 10.02 8.90 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Numbers are in SAR Billions stc 41#42Solid Balance Sheet 42 SAR billion Total cash Mar. 2021 Dec. 2020 6.84 9.00 Total assets 124.46 121.97 Total liabilities 58.20 56.71 Total equity 65.07 63.95 Total debt Net Debt Debt/Equity Debt/ Assets 8.84 8.96 1.99 -0.05 13.58% 14.01% 7.10% 7.34% Working capital 13.73 12.97 Investor Presentation 2021 | stc group → The newly established international sukuk program was approved at the General Assembly meeting on 24th April 2019. This program is denominated in US Dollars not exceeding the amount of USD 5,000 million. During the second quarter 2019, stc Sukuk Company Ltd. (SPV established for the purpose of issuing sukuk), completed the first sukuk issuance under the Sukuk Program for USD 1,250 million (equivalent to SR 4,688), at USD 200 thousand par value, annual yield of 3.89% and a maturity of ten years. → stc group is considered one of the lowest leveraged telecom companies in the world (Debt/ EBITDA 0.38x) creating a debt capacity for the company that might be utilized for financing new projects/ acquisitions.#43Capital Expenditure Trend 43 Total Capital Expenditure (Capex) CFO/Capex Ratio Investor Presentation 2021 | stc group 12 25% 30 10 20% 25 2.01 1.96 20.91% 8 20 18.78% 18.39% 15% 3.00 2.61 2.40 1.80 6 15.67% 15 10% 0.87 1.20 4 10 5% 0.60 2 5 7.94 9.76 11.37 10.84 15.92 19.13 9.92 28.32 0 0% 0 0.00 2017 2018 2019 2020 2017 2018 2019 2020 ICFO CFO/Capex Ratio Capex Capex/ Revenue Free Cash-Flow (EBITDA-Capex) 10.49 10.08 9.90 Capex/ Depreciation & Amortization Ratio 11.25 1.29 1.29 1.16 1.07 III 2017 2018 2019 2020 2017 2018 2019 2020 → In Q4, 2018 stc had a financial dispute with the Regulator entailing the reversion of provisions on quarterly basis for 3 years (ending in 2020) subject to meeting certain KPIs of Capex requirement. → The investment is mainly focused on the infrastructure of the country for example increasing the speed of 4G, 5G rollout, Wi-Fi spots, spreading the fiber and increasing its speed...etc. → The government provisions came to an end. Therefore, Capex levels will experience a decline going forward. stc#44Financial Highlight 44 Performance Ratios 18.15% 17.27% 17.19% 16.45% 15.93% 9.86% 9.23% 9.49% 9.01% 9.01% 2017 2018 2019 2020 Mar-21 ROA ROE Leverage Level 9.31 80% 8.96 8.84 9 70% 43.79% 60% 40.54% 6 37.81% 50% 4.65 4.29 40% 25.25% 15.08% 13.99% 30% 13.58% 3 21.61% 20% 7.40% 6.54% 10% 7.87% 7.31% 7.10% 4.29% 3.92% 0 0% 2017 2018 2019 2020 Mar.2021 Long-Term Debt Short-Term Debt Debt/ Assets Debt/Equity Debt/ EBITDA Free Cash Flow Trend 10.77 10.73 9.34 2016 2017 0.49 2018 2019 Investor Presentation 2021 | stc group 19.17 2020 → Highest FCF achieved in 5 years and on a challenging year. → The sharp decline in FCF in 2019 is mainly due to the sudden increase in both receivables and payables. → stc aims to generate higher cash flow in the coming years. stc#45Financial Highlight 45 P/E Multiple for Q1 P/E At 126.8 (Max)* P/E At 106 (Min)** P/E at closing price of Q1 (126.8) *As of 31/3/2021 ** As of 3/1/2021 Quarterly EPS and Payouts Investor Presentation 2021 | stc group 21.42 17.91 21.42 32109876543270 79.84% 74.21%* 90% 75.05% 72.20% 67.57% 11 10.78 10.99 10.66 10.02 60% 30% 2.95 5.83% 6.54% 3.93% 3.77% 3.15% 0% 2017 2018 2019 2020 Net Income Dividend Yeild Mar.2021 Payout Ratio *Payout ratio taking into account the special dividend paid in 2018: 111.32% Payout ratio taking into account the special dividend paid in 2020: 92.25% ** 1.46 1.38 1.36 1.30 1.48 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 stc#46Sukuk Programs Issued by stc 46 Investor Presentation 2021 | stc group Item Issuing Type Currency Program Amount Issuing Objective Minimum Settlement Price at Maturity Trading Market Issuing Date 1st Tranche Amount Number of Sukuk Issued Subscription Coverage Tenor Coupon Rate Payment Frequency Arrangers Rating International Sukuk Program International Sukuk (senior, unsecured sukuk) USD denominated Domestic Sukuk Program Domestic Sukuk SAR denominated USD 5 Bn → To support the execution of the company's strategy, future plans and diversify the sources of funding; → To benefit from the features of international debt capital market in terms of liquidity, competitive pricing and diversification of investors' base. USD 200,000 At Par Irish Stock Exchange plc trading as "Euronext Dublin" 13th May 2019 USD 1.250 bn 6,250 sak 3.5x 10 years (13th May 2029) 3.89% (Valued at Mid Swap of 2.54%+135 bps) Simi annual (first payment on 13th Nov 2019) HSBC, JPMorgan, Standard Chartered, Samba Capital, First Abu Dhabi Bank, and KFH Capital Moody's (A1), S&P (A-) SAR 5 Bn → To support the execution of the company's strategy, future plans and diversify the sources of funding. SAR 1,000,000 At Par private placement 9th June 2014 SAR 2 bn 2,000 sak 2x 10 years (9th June 2024) 3M SAIBOR + 70 bps Quarterly J.P. Morgan Saudi Arabia Limited, NCB Capital Company and Standard Chartered Capital Saudi Arabia N/A SLC#47Stable Dividends Distribution Dividends distribution policy → In Q4 2018, the company announced that it has approved its dividend policy for the next three years starting from the 4th quarter 2018 (as approved by the board of directors); → The objective of the dividend policy is to maintain a minimum level of dividend per share on quarterly basis. stc commits to pay a fixed minimum dividend of a SAR 1 per share per quarter; → The company may consider paying additional dividends subject to the Board approval after assessment and determination of the Company's financial situation, outlook and capital expenditure requirements; → Additional dividends are likely to vary on quarterly basis depending on the company's performance; → Based on the policy the last dividend to be paid is in Q3, 2021. Stability of dividends distributions → Over the last six years, stc distributed a total of SAR 54 billion to investors through a stable dividend distribution in each quarter (SAR 1/share) which indicates a healthy cash flow supported by a strong and stable performance. 4 4 12 8 + 27 22 5 18 4 22 16 18 12 8 2015 2016 2017 2018 2019 2020 ■Incremental Numbers are in SAR/ share 47 ■Dividends/share Investor Presentation 2021 | stc group#48Let`s create the future together Disclaimer This presentation has been prepared as an informative guide that might assist interested parties in gaining an insight into the history and background of telecommunications within Saudi Arabia, as they relate to the Saudi Telecom Company (stc). Furthermore, it does not constitute an invitation or inducement to purchase or dispose of any securities, either in stc, or any companies in which stc has a financial interest. In addition, there may also be 'forward looking' statements included within the meaning of current securities laws and regulations. In this context, any opinions expressed within this document, regarding the company's potential future performance, should be viewed as being accurate at the time of preparation. However, cognizance should be taken of the fact that uncertainty may dictate that actual performance differs substantially from any views articulated herein. Investor Relations E-mail: [email protected] Investors Website: https://www.stc.com.sa/wps/wcm/connect/english/investor/overview IR App QR Code: stc