#1stc group investor presentation Investor Relations Q2 2022 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 7. Financial Highlights 3 7 11 22 26 37 39 Investor Presentation 2022 | stc group stc#3Saudi Arabia's Macro-Economic Environment stc#4Domestic Macroeconomic Indicators Gross Domestic Product (GPD) Growth According to estimates by GASTAT, real GDP rose by 11.8% y/y in Q2 2022, achieving the highest growth rate since Q3 2011. This positive growth rate was mainly driven by the increase in oil activities by 23.1% y/y. whilst, non-oil activities grew by 5.4%, with government services activities growing by 2.2% y/y. Saudi Unemployment Rate (15+) GASTAT's latest labor market release for Q1, 2022 showed that Saudi unemployment rate fell to 10.1% from 11.0% in Q4 2021. Unemployment rate among male and female decreased to 5.1% and 20.2%, respectively, whereas unemployment among total working age population reached 6%, compared to 6.9% in Q4 2021. Investor Presentation 2022 | stc group 18.0% Bn (SAR) 2,700 7% 16.0% 2,600 4.1% 3.7% 2,633 2,642 5.4% 2.7% 2,588 2,569 2,500 2,545 14.0% 12.5% 12.3% 5% 12.0% 12.0% 11.8% 2,615 12.0% 31.7% 31.1% 30.8% 30.8% 31.4% 2,533 3% 10.0% 30.2% 15.4% 14.9% 12.6% 34% 11.7% 11.3% 11.3% 11.0% 10.1% 26% 42% 28.2% 3.3% 8.0% 2.5% 2,400 2,445 2,300 2,359 2,297 2,200 1% 1.7% 6.0% 24.4% 22.3% 21.9% 22.5% 18% 21.2% 20.2% 0.3% -1% 4.0% 8.1% 7.9% 6.6% 7.1% 7.2% 6.0% 5.8% -0.7% 4.9% 5.6% 6.1% 5.9% 10% 5.2% 5.1% 2.0% -4.1% -3% 0.0% 2% 26 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 2,100 -5% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: GASTAT Real GDP (SAR) Real GDP (% Change) Total Unemployment Rate Male Source: GASTAT Female Inflation Rate The annual inflation rate in Saudi Arabia increased to 2.3% in June 2022 from 2.2% in the previous month. It is the highest inflation rate since last June, mainly due to higher prices in food and beverages (+4.4%), followed by transport (+2.5%). 2.8% 2.1% 1.5% 0.2% 0.5 2.1% 2.2% -0.8% -0.8% -0.5% -1.1% -1.4% -2.1% 30-Jun-17 30-Sep-17 31-Dec-17 4 Source: SAMA 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 6.2% 5.7% 4.9% 5.3% 31-Mar-20 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 0.6% Government Outlook on Expenditures & Revenues Bn (SAR) 1200 50% 1045 990 1015 955 968 992 930 941 951 1000 40% 849 800 200 32.7% 2.0% 2.3% 600 29.2% 25.9% 26.9% 25.4% 20% 1.2% 400 10% 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 Source: MoF 0 2021 (budget) 2021 (estimates) 2022 (budget) 2023 (projection) Total Revenue Total Expenditure Debt (%GDP) 0% 30% 2024 (projection) stc#5Young and Robust Population 5 Investor Presentation 2022 | stc group Saudi Population → After the population numbers increased in KSA from 34.2 mn in 2019 to 35.0 mn in 2020 (midyear), 2021 (midyear) saw a decline in the overall population numbers to 34.1 mn. The main driver of the decline is related to non-Saudi population exiting the country during the Covid-19 pandemic. → Saudi population is the largest and youngest demographic in the GCC region. → 2020 GASTAT data showed that 62% of the population is between the age of 15 and 49. Population Census (Mn) 36 2.6% 2.5% 2.4% 2.4% 35.0 35 34 33 32.6 31.8 32 Distribution by Age Group (mid year 2021) 3% 4.0% 3.0% 2.0% 34.2 2.3% 34.1 32% 28% 1.0% 33.4 0.0% -1.0% -2.0% -3.0% -2.6% 36% -4.0% 30 -5.0% 2016 2017 2018 2019 Mid year 2020 Mid year 2021 0-19 20-39 40-64 65+ Growth Rate 31 Source: GASTAT Foreigners in the Saudi Labor Force → Latest General Organization for Social Insurance (GOSI) figures showed a significant increase in the rate of foreigners working in the labor force in Q1 2022 as compared to the previous quarter. → Approximately, there was an increase of 453 thousand expatriates by Q1 2022 when compared to the previous quarter. (Mn) 9.0 10% 7.4% 8% 8.0 7.71 7.40 6% 7.13 4.0% 3.6% 6.90 4% 6.71 6.58 6.65 6.52 6.67 6.61 6.44 6.41 6.27 6.25 6.16 2% 6.03 5.92 7.0 6.0 0% -0.4% -0.9% -1.3% 5.0 -2.0% -2.5% -2.7% -3.6% -3.3% -0.3% -2.1% -3.6% -2% -1.9% -4% -3.6% -4.1% 4.0 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 Q2-21 Q3-21 Q4-21 Q1-22 Male Female Growth Source: GOSI -6% stc#6Communication Sector Spending 6 Investor Presentation 2022 | 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#7KSA Telecom Market Overview stc#8Differentiated Through Quality 8 4G Mobile Download Speed (Mbps) 51.4 88.2 83.4 72.8 Ookla Q3-Q4 2020 ■Q1-Q2 2021 ■Q3-Q4 2019 ■Q1-Q2 2020 4G Mobile Upload Speed (Mbps) 20.0 22.0 21.5 (Mbps) (Mbps) 176.8 162.3 162.3 130.8 106.2 78.2 Meqyas Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 22.8 23.5 24.7 24.4 26.0 21.0 20.1 Ookla ■Q3-Q4 2019 Q1-Q2 2020 ■■Q3-Q4 2020 Q1-Q2 2021 Meqyas Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Investor Presentation 2022 | stc group stc#9KSA Internet & Mobile Usage 9 Source: Hootsuite Internet Use & Mobile Connectivity in KSA (as of January 2022): Total Number Of Active Internet Users: 34.84 million Internet Users As A Percentage Of Total Population: 97.9% Total Number of Social Media Users: 29.30 million Social Media Users As A Percentage Of Total Population: 82.3% Mobile Connections As a Percentage of Total Population 115.3% AA 臣 Share of cellular mobile connections that are broadband (3G, 4G, 5G) 94.8% Investor Presentation 2022 | stc group E#10Subscriptions Investor Presentation 2022 | stc group The Kingdom's population is one of the most connected in the region. A mobile penetration rate in excess of 100% continues to grow, with mobile telecom subscriptions posting an annualized increase of 5.5% in Q3 2021. Mobile telecom subscriptions (million) Source: CITC 10 47.72 million Mobile telecom subscriptions 48.11 47.72 47.16 46.35 45.24 44.89 44.11 Q1 2020 Q2 2020 Q3 2020 Q4 2020 136.3% Mobile telecom services penetration rate Mobile telecom subscriptions population penetration (%) 5.5% y/y increase in mobile telecom subscriptions Q1 2021 Q2 2021 Q3 2021 137.4% 136.3% 135.5% 134.7% 132.2% 131.2% 128.9% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 stc#11We are looking forward stc Profile 11 sic#12stc at Glance 12 #1 in KSA in Mobile & Fixed Broadband subscribers stc is Saudi Arabia's Speedtest Award Winner for mobile network coverage during Q1-Q2 2021 10 data centers across the Kingdom + 6 planned #1 in KSA in Post-paid & Pre-paid subscribers Length of deployed fiber optic cables at the end of 2021 231K KM A- Standard & Poor's A1 Moody's AAA Tasneef #1 in KSA in Fixed Telephony subscribers 220K KM Length of wholesale submarine cable Total stc KSA employees reached 12.9K in 2021 (2.9% turnover rate) More than 12 million Qitaf Subscribers Recognized as the most valuable brand in Middle East as of January 2022 Let's go forward Investor Presentation 2022 | stc group stc#13Our Journey 13 السعودية مركذا SAUDI TELECOM.CO الاتصالات السعودية SAUDI TELECOM 2005 G STC الاتصالات السعودية Investor Presentation 2022 | stc group stc 1998 Company Incorporation. stc IPO (December, 2002). " 10 million mobile subscriber mark. Launch of 3G " and 3.5G mobile technology. 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. 2011 Acquired 60% stake in Sale Communication. Share Increase in AXIS Indonesia and Integral. Launched IPTV services in Saudi Arabia. 2013 Acquisition of push-to-talk (PTT) mobile operator Public Telecom Company (Bravo). Establishment of Aqalat Company. 2015 stc became an ICT integrated player in the region. Establishment of stc's dividend policy. 2017 stc ranked as most valuable brand in Saudi Arabia. Establishment of STV with $500 million capital. 1998-2003 2005-2006 2007-2008 2009-2010 2011-2012 2013-2014 2015-2016 2017-2018 2019 $5 billion international Sukuk program offering. Establishment of Tawal Company. Launching 5G services. Launched stc's new brand. Uber acquisition of Careem (in which stc owns a direct stake of 8.8% and an indirect stake of 9.3%). 2019-2020 2021 Launch of "Advanced Technology ad Cybersecurity Company". stc pay obtained digital banking license. solutions by stc IPO. Announcement/renewal of the Dividend Policy. stc Group secondary public offering. 2021-2022 2003 2006 Introduction of DSL services. Increased capital from SAR 15 billion to SAR 20 billion. 2008 2010 2012 Stake acquisition in Oger. Launched Indonesian operation under the name AXIS. Launched Bundled services. Fiber Optic in Saudi. Reached more than 500 residents. 2014 SAR 5 billion Sukuk program offering (1st series was SAR 2 billion). 2016 Share increase in VIVA Kuwait up to 51.8% and Sale Co. to 100%. 2018 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). 2022 Establishment of a new company specializing in datacenter hosting, international and regional connectivity (MENA Hub). Signing a Joint Venture Agreement with PIF to establish a company specialized in the field of Internet of Things (IoT) in KSA. stc, eWTP Arabia, Alibaba Cloud, SCAI & SITE to establish a company specialized in cloud computing in KSA. Announcement of BoDs' recommendation to increase stc's capital by 150% via granting bonus shares, reaching to SAR 50 billion. sic#14Our Regional Footprint 14 Expanding our footprints across four countries has unlocked growth opportunities... 2007 Kuwait 2009 Bahrain Kingdom of Saudi Arabia 2008 Malaysia Investor Presentation 2022 | stc group stc#155G technology 1st Launched Commercial Network ■ stc group is the first telecom company launching the fifth generation technology in the region commercially (KSA, Kuwait and Bahrain). The fifth generation in the Kingdom was launched through broadband applications. 7,000 5G Towers ■ As the end of Q2 2022, the total number of 5G towers deployed across the Kingdom is 7,000 towers. ■ 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 technology industrial applications is a future plan, as the company operates in several areas, including oil and gas, service agencies and various industries. Investor Presentation 2022 | stc group 4th 5G Globally stc group is the 4th globally in 5G technology. #1 5G service provider in 65 governorates the Kingdom. across NAIPO D stc#16Submarine Cable Investment & Optimized Connectivity 16 # stc Submarine Cable System 1 Saudi vision cable (SVC) Length (km) 1,071 2 2Africa 45,000 3 2Africa Pearls 4 India Asia Europe Xpress (IAX-IEX) 16,000 5 EIG 15,000 6 FLAG Europe Asia 28,000 7 GBI 5,270 8 IMEWE 12,091 9 MENA ಕ ನ ಪ ಸ = ಕ 10 SAS1 9,000 300 11 SAS2 300 12 SEA-ME-WE 3 39,000 13 SEA-ME-WE 4 18,800 14 SEA-ME-WE 5 15 EASSY 20,000 10,500 MOROCCO ALGERIA HATLANTIC LIBYA SOUTH AFRICA SUDAN TURKEY KENYA MOZAMBIQU IRAQ IRAN SAUDI ARABIA SOMALIA BANGLADESH INDIA INDIAN OCEAN CHINA IND AUSTRALIA Investor Presentation 2022 | stc group → stc owns and operates the largest and most reliable submarine communications cables in the Middle East, with more than 100 global landing points via the fiber- optic cable system. → 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. → 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#17Key Credit Strengths 17 Experienced best-in-class management team → Management team has significant experience across telecom products & Largest telecom operator in the MENA region → Market cap of SAR 194.20 bn (USD 51.79 bn), and presence in 5 countries (as of 30 June 2022). Strong financial performance → Consistent growth in EBITDA. 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. Excluding Atheeb Telecom 5 Market leadership in Saudi Arabia (the largest market in the region) →73.5% market share by revenue * (as of 30-June-22). → Investor Presentation 2022 | stc group Strong Government links and strategic importance 64% 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#18Diverse Board of Directors Highly experienced executive management team and board of directors Group Executive Management Team Independent Eng. Olayan Mohammed Alwetaid Chief Executive Officer (CEO) Board of Directors Investor Presentation 2022 | stc group HRH. Prince Mohammed Khalid ALFaisal Chairman of the Board Ameen Alshiddi Chief Financial Officer Riyadh Muawad Chief Business Officer Motaz Alangari Chief Investment Officer Mr. Yazeed AlHumied Board Member Ms. Rania Nashar Board Member Faisal Alsaber Chief Commercial Officer Haithem Alfaraj Chief Technology Officer Moaeed Alsaloom Chief New Market Officer H.E. Dr. Khaled Biyari Board Vice Chairman Ms. Sara AlSuhaimi Board Member Jose Del Valle Head of Special Projects Abdullah Alkanhl Chief Strategy Officer Amir Ajibreen Chief Regulatory & Compliance Officer H.E. Mohammed Al- Nahhas Board Member Mr. Sanjay Kapoor Board Member Ahmad Alghamdi Chief Human Resources Officer Mohammed Alabbadi Chief Carrier & Wholesales Officer Ibrahim Alsuwail Chief of Staff Mr. Ahmed Al-Omran Board Member Mr. Waleed Shukri Board Member Mathad Alajmi Chief Legal & Risk Officer and General Counsel Abdullah Alanizi Chief Internal Audit Officer Emad Aloudah Chief Shared Services Officer Mr. Jameel AlMulhem Board Member Mr. Arndt Rautenberg Board Member stc#19Market Performance 19 Share Performance Vs. Telecom & TASI Index 15% 10% 5% 0% -5% -10% -15% -20% 3-Apr-22 11-Apr-22 19-Apr-22 27-Apr-22 5-May-22 13-May-22 TASI Telecom stc 21-May-22 29-May-22 6-Jun-22 14-Jun-22 22-Jun-22 30-Jun-22 30th June 2022 Investor Presentation 2022 | stc group Market Capitalization of Telecom Sector As of 0.41% 4.35% 11.61% 83.63% Istc ■Mobily ■Zain Atheeb stc's Key Metrics Closing price Issued Shares (Mn) Market Cap (Bn) Market Cap % Tadawul 97.10 30th June 2022 2,000 194.20 1.7% Price/ Earnings* 17.01x Price/Book* Dividend Yield 2.71x 4.12% *Last Twelve Months stc#20Market Performance 20 20 Ownership Structure As of 30th June 2022 36% ■PIF Free Float Shares Price Vs. Yield Fluctuation 140 120 100 80 60 40 20 0 03/04/2022 07/04/2022 11/04/2022 15/04/2022 19/04/2022 23/04/2022 27/04/2022 01/05/2022 05/05/2022 09/05/2022 13/05/2022 17/05/2022 64% 21/05/2022 25/05/2022 29/05/2022 02/06/2022 06/06/2022 10/06/2022 14/06/2022 18/06/2022 22/06/2022 26/06/2022 30/06/2022 Price Dividend Yield 4.80% Investor Presentation 2022 | stc group Market Capitalization As of 30th June 2022 Among Major Saudi Listed Companies (SAR Bn)* 304.8 295.1 SABIC *Excluding Saudi Aramco 206.3 194.2 100.8 96.3 83.6 61.3 52.4 SNB Al Rajhi Bank stc Saudi Riyad Bank SABB Electricity Maaden Almarai MSCI Tadawul 30 Index Company 4.00% 3.20% AL RAJHI BANKING & INV SAUDI NATIONAL BANK Sector Financials Index Wt. (%) 15.52 Financials 13.88 2.40% 1.60% SAUDI ARAMCO SAUDI BASIC IND CORP Energy 9.01 Materials 8.78 0.80% SAUDI TELECOM CO 0.00% As of 30th June 2022 Communication Services 5.59 stc#21Wining Awards 21 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 2016 Investor Presentation 2022 | stc group → 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. -> -> 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. → 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. → -> -> -> Best iPhone app. -> Best Mobile Service Provider in the fourth annual poll by Mobile Trend. -> Mid East Media Reach-Out Award by Datamatix International. → -> 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. Excellence Award in Corporate Governance at the 2nd Annual Corporate Governance Conference by Alfaisal University. 2018 → ← SPEEDTEST award for the fastest mobile internet in the Kingdom. Golden Award for Mystc Campaign for the Effective Integration of the Channels Partnerships by the WARC Media Awards. → 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). Golden Award for "Mystc campaign" and with the Silver Award for "Unveil Saudi". -> -> 4 Awards by Effie Worldwide as a leader in the telecommunication industry. -> Won Makkah excellence award for its strategic partnership. → -> Won the Excellence Award in Corporate Governance by Al Faisal University. → 4 Mena Cristal awards for its print and outdoor Roaming campaigns by Mena Cristal event. -> Won the Speedtest award for the fastest mobile internet in the Kingdom. Won the Speedtest award for the best mobile coverage. 2015 Obtains OKAZ and EFFIE awards. 2020 2014 → -> Best wholesale operator for data and voice services in the MENA region by Telecoms World Middle East. -> 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. 2021 → won the SpeedTest award for the fastest mobile internet in the Kingdom for the sixth time. → ← stc sustainability platform wins the excellent award at "The World Summit on the Information Society (WSIS)" forum 2021. Won the "Corporate Treasury & Funding Team of the Year" Award by Global Financial Conference Media Group. 2nd place award for the best investor relations program during the Saudi Capital Awards. stc#22Strategy Overview stc#23Our vision & values 23 Investor Presentation 2022 | stc group drive › devotion ୬ } dynamism Proactive, Inquisitive and Inventive Caring, Committed and Trustworthy Agile, Collaborative and Fresh 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. 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. dare#24Our Strategy for Success: DARE 2.0 Our Strategy for Success 24 24 d digitize stc Instill digital mindset and unlock the potential of digital and analytics capabilities a r Accelerate performance Maximize shareholder returns by transforming costs and monetizing | assets reinvent experience 808 Excite customers with a seamless, personalized and secure experience e expand scale and scope 0000 Grow by expanding into selected growth pillars within digital | services and core Transform into an agile technology company and embrace new ways of working Be a role model for sustainability and corporate governance Be the trusted partner- of-choice for business in the region Connect our market through leading next- gen technology and digital offerings Investor Presentation 2022 | stc group stc#25Aligning stc Strategy with Vision 2030 Aligning stc Strategy with Saudi Arabia's Vision 2030 Elements of stc Strategy: ► Lead market in digital services and creative solutions رؤية VISION 24930 المملكة العربية السعودية KINGDOM OF SAUDI ARABIA ► To raise our ranking on the E-Government Survey Index from our current position of 36 to be among the top five nations; ▸ To increase the private sector's contribution from 40% to 65% of GDP; ▸ To increase women's participation in the workforce from 22% to 30%; ► To move from our current position as the 19th largest economy in the world into the top 15; To lower the rate of unemployment from 11.6% to 7%; ▸ To increase SME contribution to GDP from 20% to 35%; To increase our capacity to welcome Umrah visitors from 8 million to 30 million every year. ► Drive efficiencies through digital transformation Digitalise 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#26Business Overview sic#27Subsidiaries & Global Presence 27 Local Subsidiaries Channels by stc 100% Specialized by stc 100% Solutions by stc 79% 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. Associate Companies Arab Satellite Communications 36.6% Organization Investor Presentation 2022 | stc group Offers number of services: regional telephony, television broadcasting, regional radio broadcasting, restoration services...etc. Virgin Mobile KSA 10% A mobile virtual network operator. Oger Telecom Limited* 35% Tawal 100% Responsible for owning, constructing, operating, leasing and investing in stc KSA towers. Arab Submarine 50% A leading regional ICT player who provides a wide range of information and communications technology & services beyond the traditional telco offerings. Aqalat 100% Develop & manage the company's properties in all parts of the Kingdom by adopting the concept of smart developments. stc Bank 85% A digital secure wallet that empowers individuals to take full control of their finances at their fingertips anytime anywhere. Telecom Commercial 100% Operation and maintenance of telecommunications networks, business systems and computer and Internet networks. Investment Co Ltd Advanced Technology 100% and Cybersecurity Established in the fourth quarter of 2020, with a capital of SAR 120 million to provide cybersecurity services. Gulf Cable Systems 100% Company Saudi Cloud 55% Computing Company MENA Hub 100% Operates in the Kingdom of Bahrain with a capital of SAR 188.6 million. It's main activities include the sale and installation of telecommunications equipment and the construction of utilities projects. Established in the 2nd quarter of 2022 with its headquarter in the Kingdom. The company is specialized in cloud computing services. A wholly owned subsidiary established in Q1 2022, its major activities include providing services related to big data, data analytics and cloud computing International Subsidiaries Joint Ventures stc through one of its subsidiaries (stc Turkey Holding Ltd) acquired a stake in OTL. 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 Holding (BGSM) 25% An investment holding group registered in Malaysia which owns 62.4% of Maxis Malaysian Holding Group ("Maxis"). loT Information Technology Company 50% stc Bahrain 100% stc Kuwait 51.8% stc Asia 100% stc Gulf 100% Investment A shareholder agreement with PIF to establish a company specialized in the field of Internet of Things The company offers mobile, international telecommunications, broadband and other related services. 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 *Under liquidation#28Our ICT Arm 28 Subsidiary Overview Date of Incorporation Capital → Founded in 2002 → SAR 1.2 billion Services Offered System Integration Investor Presentation 2022 | stc group loT Digital Services Subsidiary Objective → 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. Connectivity Services. Business Outsourcing Managed Services CE Cloud Services Cybersecurity Integration + stc Ownership Business Highlights → 79% → During the Q1 2022, Solutions has signed a binding agreement for the acquisition of 89.5% ownership of Giza Systems Company, in addition to 34% of Giza Arabia, a subsidiary of Giza Systems Company. The acquisition value amounts to USD 158 million (equivalent to SR 592.5 million), which will be paid in cash. solutions stc by stc#29B2B IT Market Investor Presentation 2022 | stc group KSA B2B IT Services Market by Category Size (SAR Bn) The B2B ICT market in the Kingdom is expected to grow at a CAGR of 6.7% for the period from 2018G - 2025G to reach SAR 53.1 billion. The IT services sector is expected to be the main driver of market growth with an expected CAGR of 10.0%, while the B2B Voice and Data sector is expected to grow by 1.4% per annum over the same period. It is expected that IT services will represent an increasing portion of the total ICT services market in the Kingdom in the future. () Total 10% 37.7 35% Managed Networks Cyber Security Equipment Services Data Center & Cloud Application Services IoT & Digital System Integration 19.8 21% 7% 8% 6% 20% 9% 19% 4% 8% 49% 13.1 9.7 6.9 7.8 1.1 1.8 2.3 2.7 1.9 1.3 1.8 29 0.9 1.7 Hardware deployment & Support Hosted infrastructure • Data center managed services • Office network/endpoint service • Other managed services Managed Wi-Fi • Managed area network Managed router • Project based cybersecurity Managed security Managed disaster recovery • Managed endpoint services Source: Market data of the IDC from 2018G % 2018-2025 CAGR • Co-location • Private cloud • Public cloud 2018 3.1 2.3 1.7 • Custom application development • Software support & deployment 2025F Data Centers Al Big data & analytics ⚫ loT • IT training • IT consulting ⚫Network integration Application integration Infrastructure integration 18% 12% 9% 10% 7% 9% 6% 7% 5% 6% 2018 2025F stc#30Our Sales Arm 30 Subsidiary Overview Date of Incorporation → Founded in 2008 Capital → SAR 100 million 226 Stores Investor Presentation 2022 | stc group 24,000+ Merchants 137 Distribution Hubs 57,000 + POS 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. 8,000 + Agents 15 Mn+ Customers 6B + Devices Revenue Pald DQ 1,000,000 400 Self-Service Machines channels stc by stc#31KSA First Tower Co. Investor Presentation 2022 | stc group Subsidiary Overview 31 Date of Incorporation Capital Subsidiary Objective stc Ownership Business Highlights 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). → In Q1 2022, Tawal announced its potential acquisition of the Pakistani tower company "AWAL Telecom".* → Saudi Arabia has more than 35,000 telecom towers, of which Tawal's towers represent almost 45% → TAWAL owns around 15.5K 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. *The transaction is under process and expected to be completed soon Solutions Offered Hil 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 SIC#32Our Fintech Arm 32 Investor Presentation 2022 | stc group Subsidiary Overview Date of Incorporation Capital Subsidiary Objective stc Ownership Registered Users Partners Business Highlights → Founded in 2018 → SAR 2.5 billion → 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 1st digital bank in the Kingdom of Saudi Arabia licensed by Saudi Monetary Authority (SAMA). → 85% → Reached 7.49 Million (since inception). → In November 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). → During Q2 2021, the Council of Ministers approved granting stcpay a digital banking services license to become a digital bank. → During Q3 2021, the regulatory requirements were completed to conclude the agreement with WU. → 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. Offered Services 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#33Sirar by stc 33 Subsidiary Overview Date of Incorporation → Founded in 2020 Offered Services [09 Capital → SAR 120 million Subsidiary Objective → stc Group established Advanced Technology and Cyber Security Company "sirar by stc". → World-class leading edge cyber capabilities to enable and protect economic and physical critical infrastructure and government services. MANAGED SOC Investing in cyber security is vital to business continuity VULNERABILITY MANAGEMENT, DETECTION AND RESPONSE (VMDR) Identify your company's IT vulnerabilities before it's late MANAGED SECURITY DEVICES Managing security devices is a challenge for many, especially in complex networks. DDOS PROTECTION WEB SECURITY EMAIL SECURITY Tackle web security challenges that threaten your business Protect your business against email attacks DP PENETRATION TESTING INCIDENT RESPONSE Act now to stay in control of your business Assessing your defenses against cyber attacks. When the untold story is revealed stc Ownership - 100% DP 凸 COMPROMISE ASSESSMENT Unveil any past or present indicators of compromise CYBERSECURITY GOVERNANCE ADVISORY Aligning Cybersecurity with business CYBERSECURITY RISK ADVISORY Cybersecurity Risk Assessment & Management CYBERSECURITY COMPLIANCE ADVISORY Cybersecurity Audit & Assurance Investor Presentation 2022 | stc group CYBERSECURITY RESILIENCE ADVISORY Building Cybersecurity Resiliency & Robustness CYBERSECURITY AWARENESS & EDUCATION Security Culture & Awareness Programs O sirar stc by sic#34AQALAT 34 Subsidiary Overview Date of Incorporation 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. 吉 Riyadh Project Investor Presentation 2022 | stc group *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. julfil: stc AQALAT#35Specialized by stc 35 Subsidiary Overview Services Offered Forun Date of Incorporation 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% TETRA Services Mobile Telephony Location-Based Services reliable communication for government, public and personal safety. Alert Service Messaging Services Inmarsat Control Room Solutions Investor Presentation 2022 | stc group specialized stc by stc#36Saudi Technology Ventures (VC Fund) STV is an independent VC fund with a total capital of USD 500 million anchored by stc with access to its assets (e.g., network, channels, analytics, customer base...etc.) unifonic Your Communication Code Leading a SAR 78.75 million (USD $21 million) investment round in unifonic. 150+ Countries, 720+ Operators. → -> Vezeeta.com Vezeeta has managed 3 million bookings in the region. Served 2.5 million consumers/patients. Connected more than 10,000 doctors in Egypt, Saudi Arabia and Jordan. تلفاز 11 88 MRSOOL investment in Mrsool. نون noon أشادمي Investor Presentation 2022 | stc group TRUKER ANY TRUCK ANY TIME ANYWHERE Brings innovation to trucking Telfaz11 Academy -> A multimillion-dollar → -> Leading an investment A Co-leading SAR 32.2 -> round of SAR 33.75 -> The leading Saudi on-demand million investment in noon Academy. with On-Demand aggregation in Real-Time. million to accelerate delivery service. -> the company's growth noon Academy is the -> 100% automated booking, real- → USD $270 million in and scale-up plans. leading EdTech platform transactions in 2018. in the Mena Region. -> 4 million registered users. time tracking of trucks, smart asset utilization, & cost efficiency. -> FIREFLY 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. - جاذران gathern An online platform licensed and approved by the Ministry of Tourism where people list and rent vacation rentals -> Opontia Opontia acquires and grows outstanding e-commerce brands in Central & Eastern Europe, The Middle East, and 36 Africa. *Early stage -> سلة Saudi-based e-commerce platform that allows users -> to set up their e-commerce store and sell their products and services to customers. FLOWARD فلاورد nana An online shopping and delivery to houses service in KSA. صبار sǝbbar all -> A Saudi tech-startup which → -> Founded in 2017, Floward is an online flowers and gifting company. launched in 2019 to create technology solutions to boost the recruitment process in the retail, hospitality, and entertainment industry. proof * -> proof personalizes your website for every visitor. >spiderSilk; * → spiderSilk is re-imagining threat detection from a multi-solution, resource intensive proposition today, to an automated, intelligent, cost-effective & easy to deploy one. -> tabby Enables customers to split their purchases into 4 interest-free payments or pay after their purchase within 14 days. -> FOODICS Foodics POS solution is a cloud-based software compatible with all platforms in multiple languages (Arabic, English, and French). * intelmatix A deep-tech Al company with a wide range of capabilities that address sector challenges by providing tailored solutions and unique products. Tweeq* -> -> -> Sary Sary is a B2B marketplace that connects small businesses with wholesalers and brands in one place to procure supply efficiently. Careem A pioneer of the region's ride- hailing economy. Careem is expanding services across its platform to include mass transportation, delivery and payments. CALO Calo is a healthy meal plan app based in Riyadh that helps to calculate daily calories based on fitness goals WAJEEZ * -> Wajeez focuses on providing -> A smart account to manage your money, savings and everyday purchases. - the highest quality main insights in the form of a summary for the world's best selling books. zenda... A fintech app thar enables families to pay school bills with pay-now and pay-later options, unlocking rewards when ever they pay. STV stc#37Sustainability at stc stc#38Sustainability at stc Investor Presentation 2022 | 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 Nearly 95% of total employees completed the integrity training. 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 In 2021, CITC ranked stc as number 1 digital service provider for excellent 5G coverage across KSA ■ In 2021, stc recorded 151.97 mbps mobile network download speeds, and reached 93.85 mbps in Q4 which exceeded the committed target in 2020 of 80 mbps. ☐ 02 Enhancing economic impacts SAR 63,417 million in revenues (2021)- the highest annual revenues since inception. Through Rawafed, the local content requirements were embedded in the mega projects awarded during 2021, to a value of approximately SAR 6 bn ■ Total procurement spending remained relatively consistent in 2021, with nearly 85% of approximately SAR 22 bn in total accounted for by local suppliers. 05 Advancing innovative digital opportunities ■ Since inception InspireU provided +600K jobs through supporting start-ups. InspireU program incubated 10 start-ups ideas during 2021. First operator in KSA to launch 5G commercial services *For further details, please refer to the sustainability report at stc website or click here 06 Empowering people ■ 2.9% turnover rate in 2021. ■ In 2021, stc women employment rate reached 37%, with 215 new women employees in the workforce Hiring of female employees reached 830, starting from 0 in 2015 449,160 total hours of employee training ☐ 03 Enriching lives and experiences In 2021, data privacy awareness campaign reached +19K internal stakeholders & +4.6M external stakeholders. ■ 21% decrease in total number of customer complaints from 2020 to 2021, with 100% complaint resolution rate. In 2021, stc achieved an overall customer satisfaction rate of 82%, based on >3.7M customer response from SCAT survey. 07 Caring for the environment ■ In 2021, we have cut water consumption by 2% compared to 2020, and by over 40% compared to 2019, and recorded 82% reduction in paper consumption. ■ Joined the global movement of leading companies aligning their business with the Paris Agreement to reach net zero emissions by no later than 2050 sic 38#39Financial Highlights tretto 113 vtipsgo-gota gien 0001"-dtbiw "X002-"- u291 "6lqA902-na Sobota-noitsiveObja 9000 ASO.0 0 0 0 0 2suler stc#406-Month Performance Revenue 31.59 7.4% 33.93 EBITDA 36.3% 11.47 9.0% 6M 2021 6M 2022 6M 2021 6M 2022 Operating Profit 12.1%) 21.3% 6.73 22.2% 7.54 Net Profit 1.7% Investor Presentation 2022 | stc group 36.9% 12.50 stc achieved an impressive performance for the 6 month period of 2022 as it was able to grow its topline by 7.4%, due to the increase in stc KSA revenues by 9.1%. The outstanding performance was mainly driven by: → The exceptional performance from the Enterprise business unit, as revenues grew by 15.9% for the period, due to the continued strong demand for the company's services, as a result of the significant growth witnessed in the digital economy sector in KSA and the region. → The Consumer business unit registered a topline growth of 6.1% for the period, attributed to the increase in mobility revenues by 6.7%, supported by an increase in working lines by 5.9%, whereas the residential segment registered a topline growth of 3.0% aided by the increase in FTTH and FWA subscriber base by 3.4% and 13.5%, respectively. → The Wholesale business unit also contributed positively to the company's performance, as it registered 6.1% revenue growth for the period, supported by a growth in the local and international revenues. → In addition to the revenues from stc group's subsidiaries increased by 3.3% which positively impacted the group's financial results for the period. stc 18.27% 5.87 17.31% 5.77 6M 2021 6M 2022 6M 2021 6M 2022 Numbers are in SAR Billions 40#41Quarterly Performance Revenue 6.5% -0.3% 16.99 16.94 16.09 15.90 15.74 EBITDA 10.3%) -1.5% 6.30 6.20 5.77 5.63 5.61 37.1% 36.6% 35.9% 35.6% 35.4% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Operating Profit 14.4%) 3.25 3.19 3.20 20.4% 20.3% 19.9% -2.7% Net Profit 18.6% 3.82 3.72 2.92 22.5% 22.0% 2.82 17.7% 0.6% 2.61 16.2% 3.04 -6.5% 2.84 17.9% 16.8% Investor Presentation 2022 | stc group Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 stc Numbers are in SAR Billions 41#425-Year Historical Performance Revenue 4.6%* 63.4 59.0 54.4 50.7 52.0 EBITDA 4.4%* 39.1% 38.2% 22.8 22.1 21.3 19.8 18.4 36.4% 37.5% 36.0% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 EBITDA Margin Operating Profit 3.6%* 23.6% 23.0% 13.1 12.7 21.7% 12.5 12.2 11.0 2017 2018 2019 * 5 Years CAGR Numbers are in SAR Billions Operating Margin 42 Net Profit 2.5%* 20.7% 19.6% 11.3 11.0 19.8% 10.8 10.7 18.7% 17.8% 21.6% 20.7% 10 10.0 2020 2021 Investor Presentation 2022 | stc group 2017 2018 2019 2020 2021 stc Net Margin#43Revenue Development Revenue Segmentation 15.90 Revenue Q2 2021 1.00 -2.56 -0.32 -0.32 ↑6.5% A stc KSA A Channels by stc A Solutions by stc 1.97 16.94 A Eliminations / Adjustments A Other Operating Segments* Revenue Q2 2022 Other operating segments include: Telecommunications Towers Company "TAWAL", stc Bank, stc Kuwait, stc Bahrain, Public Telecommunications Company "specialized by stc", Advanced Technology and Cybersecurity Company "sirar by stc", Aqalat, RSS, Gulf Digital Media Model Company, stc Gulf Investment Holding, stc GCC Cable Systems W.L.L., Innovation Fund Investment Company and Digital Centers for Data and Telecommunications. Numbers are in SAR Billions 43 Investor Presentation 2022 | stc group Geographical Segmentation 7.4% SAR 16.94 92.6% I Domestic Revenue ■International Revenue stc#44Solid Balance Sheet 44 SAR billion Total cash* June 2022 December 2021 12.59 16.23 Total assets 131.53 127.78 Total liabilities 57.75 56.39 Total equity 71.79 69.27 Total debt Net Debt 10.18 9.30 -2.42 -6.92 Debt/Equity Debt/ Assets 14.17% 13.43% 7.74% 7.28% Investor Presentation 2022 | stc group → stc group is considered one of the lowest leveraged telecom companies in the world (Debt/ EBITDA 0.43x) creating a debt capacity for the company that might be utilized for financing new projects/ acquisitions. *Total Cash is the total cash and cash equivalents & short-term murabahas stc#45Capital Expenditure Trend 45 Total Capital Expenditure (Capex)* 11.37 10.84 9.76 8.21 20.9% 18.8% 18.4% Performance Ratios Investor Presentation 2022 | stc group ** 17.27% 17.19% 16.45% 16.33% 15.90% 9.86% ** 10.5% 9.01% 9.01% 8.85% 8.68% 12.9% 3.55 2018 2019 2020 2021 6M 2022 2018 2019 2020 Capex Capex/ Revenue Free Cash-Flow (EBITDA-Capex) 11.25 10.49 10.08 9.90 14.63 8.96 2017 2018 2019 2020 2021 6M 2022 Capex is the total of additions to property and equipment & additions to intangible assets ** Last Twelve Months Leverage Level ROA ROE 2021 6M 2022 10.18 80% 9.31 9.30 8.96 9 70% 43.79% 60% 42.61% 40.54% 40.73% 50% a 40% 4.29 15.08% 13.99% 13.43% 14.17% 30% 3 13 21.61% 20% 6.54% 10% 7.87% 7.31% 7.28% 7.74% 3.92% 0 90 0% 2018 2019 2020 2021 6M 2022 Long-Term Debt Short-Term Debt Debt/ Assets Debt/Equity Debt/ EBITDA stc#46Financial Highlight 46 Payout Ratio Investor Presentation 2022 | stc group Q2 2022 P/E Multiple* 12 74.21% 90% 75.05% 72.73% 70.67% 70.05% 12 P/E at 119.2 (Max)** 20.9 11.41 11 11.31 10.99 60% 11 10.78 10.66 P/E at 96.1 (Min)*** 16.8 10 10 30% 9 P/E at 97.1 (Closing) 17.0 6.54% 9 3.93% 3.77% 3.56% 4.12% 8 0% Last Twelve Months 2018 2019 2020 2021 LTM Q2, 2022 ** As of 09/05/2022 *** As of 22/06/2022 I Net Income Dividend Yeild Payout Ratio *Does not include special dividends (2 SAR/share); payout including special dividends: 111.32% ** Does not include special dividends (1 SAR/share); payout including special dividends: 90.91% Quarterly EPS 1.52 1.46 1.41 1.42 1.31 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 stc#47Sukuk Programs Issued by stc 47 Investor Presentation 2022 | 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 stc#48Dividends distribution policy → stc announced that based on the BoDs' recommendation to increase stc's capital by 150% via granting bonus shares. Therefore, stc's BoD recommended to the General Assembly to amend the dividends policy to reflect the new proposed increase in stc's capital. → The amended dividends policy should therefore be based on committing a minimum dividend in an amount of SAR 0.40 per share per quarter, effective from Q4-2021, for 3 years. → The company will consider and pay additional dividend, subject to stc BoD's approval after assessment and determination of the Company's financial situation, future outlook and capital expenditure requirements. → Additional dividends are likely to vary on quarterly basis depending on the company's performance. Stability of dividends distributions → Over the last six years, stc distributed a total of SAR 48 billion to investors through a stable dividend distribution in each quarter (SAR 1/share), in addition to SAR 6 billion distributed as special dividends, bringing the total to SAR 54 billion, indicating a healthy cash flow supported by a strong and stable financial performance. Stable Dividends Distribution 7 Years Incremental Dividends 222 22 31 27 4 5 222 22 18 4 12 6 8 4 18 4 4 12 8 4 4 2015 2016 2017 2018 2019 ■Incremental ■Dividends/ share Numbers are in SAR/ share 48 27 27 2020 2021 Investor Presentation 2022 | stc group stc#49Disclaimer 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/content/stcgroupwebsite/sa/en/investors.html IR App QR Code: Let's create the future together stc