#1stc ee financial results presentation Investor Relations Q1 2023#2stc strategy overview Investor Relations Q1 2023 71984#3stc DARE Strategy 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 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 stc Grow by expanding into selected growth pillars. within digital services and core. 3 Investor Relations Q1 2023#4stc company overview Investor Relations Q1 2023#5stc signed sale and purchase agreement with solutions to sale it's entire 49% stake at CCC. stc announced a sale of land in Al-Khobar for SAR1,368 million. stc launched a corporate investment fund (CIF) aims to invest in early stages startups. stc announced the issuance of non-objection by the "GAC" of the binding offer with solutions. stc & solutions January Al-khobar land stc brand value increased to $12.3B stc is the most valuable telecom brand in the region with a value of $12.3 billion, according to Brand Finance. stc Venture capita lfund February stc & solutions March stc Investor Relations Q1 2023#6Business Highlights stc ✓ stc Group, the leading digital enabler in the region, has succeeded in maintaining the first rank as the most valuable brand in the Middle East in the telecommunication sector for the third year in a row, according to Brand Finance's Global 500 2023 report. Thanks to the group's success, continuous expansion, and growth since the "dare" strategy launch in 2017. Over the last five years, the brand's value has increased by almost 100%, from $6.2 billion in 2017 to $12.3 billion in 2022. This achievement results from the brand's outstanding performance in maintaining its leadership position and enhancing its commercial strength in KSA and the region. ✓ stc Group had the most significant portion of the conference "LEAP 23", as it concluded its participation in conference by signing more than 40 agreements and showcasing several innovative services and technologies that contribute accelerating to the digital transformation of the public and private sectors. During the event, the group presented advanced and secure technology solutions contributing to the digital empowerment of various business sectors. Moreover, announced its cooperation with major global and local companies, including Huawei, Ericsson, Samsung, Telefónica, Motorola, Airbus, Sky Five for Air to ground internet services, and Oracle to update database technologies and accelerate the cloud transfer operation. stc ✓ stc Group announced a partnership with Lucid Group to provide direct-to-consumer connectivity services for Lucid customers in KSA. Through this collaboration, the companies will deliver exceptional connectivity that enables in- car infotainment and over-the-air functionality to enhance the driving experience for customers. As a leading digital enabler in the region, stc is committed to providing innovative solutions. Lucid ✓ stc Group announced the launch of its corporate investment fund (CIF). The Fund aims to invest in early stages startups in various domains including fintech, cybersecurity, artificial intelligence, digital games, Internet of Things, blockchain, and other promising areas. The CIF will make strategic investments to accelerate growth, enhance innovation and support the KSA Vision 2030 in terms of economic diversification through tapping into new sectors and supporting stc's strategy-related entrepreneurs and startups at the local, regional and international levels. The fund will also explore new technologies and business models in digital sectors. ✓ stc Group announced its commitment to planting one million trees by 2030. Through this commitment, stc aspires to help support the natural growth of plants and promote local wildlife within the framework of many initiatives that the Group will launch across Saudi Arabia to enhance initiative environmental conservation. This will plant 200,000 trees around telecommunication towers in Taif Governorate, representing 20% of the commitment. ✓ center3 and stc Bahrain have officially completed the marine survey for 2Africa Pearls in Bahrain, marking a significant milestone in the development of the overall 2Africa subsea cable project. The 2Africa Pearls subsea cable is a unique transcontinental communication system that connects 33 countries through 46 landing locations, spanning across three continents, and positioning the Middle East at the center of operations. Once completed, 2Africa Pearls will break records as the longest subsea cable ever deployed. Spanning over 45,000 km in length, the cable system will provide reliable connectivity and internet services across a number of vital landing locations in KSA, Bahrain, Kuwait, Oman, UAE, Qatar, Iraq, Pakistan, and India. ✓ stc has won the "Private Networks Perfection of the Year" at the 2022 Glotel Awards, as it demonstrates its commitment and innovation in edge computing domain to revolutionize digital transformation for its B2B customers, supporting the build of non-public private networks for low latency edge computing use cases. The Glotel Awards by Telecoms.com, which was held in London this year, recognizes innovation and excellence within the telecoms sector, honoring key players who are shaping the future of the industry. ✓ solutions by stc, the leading enabler of digital transformation in the region, has announced the successful completion of the acquisition of 100% of the Contact Center Company (ccc), the business process outsourcing (BPO) market leader in Saudi Arabia, with an enterprise value of SAR 450 million. Investor Relations Q1 2023#7Financial & Operational Performance 5G stc has deployed 7,423 5G towers as of Q1 2023. Fixed Subscribers (stc KSA) The Carrier & Wholesale Unit The Carrier & Wholesale unit was able to achieve positive results, as its revenue grew by 0.4%, supported by the increase in its national revenues by 19.9% Mobile Subscribers (stc KSA) The Commercial Unit The Commercial unit revenues increased by 1.8%, attributed to the growth in mobility segment revenue by 2.4%. 7 -2.13% 5.64 5.52 0.30 0.38 1.42 1.31 3.92 3.83 Q1 2022 Fixed telephone lines in operation Fixed-wireless broadband subscriptions Q1 2023 Fixed-wired broadband subscriptions 22.78 0.80 5.19 16.79 Q1 2022 Prepaid 7.02% 24.38 0.88 5.43 Postpaid 18.07 Q1 2023 M2M *Fixed-wireless broadband subscribers includes 4G and 5G subscribers. *Prepaid subscribers includes mobile voice, standard mobile broadband, and dedicated data mobile broadband subscriptions. *Postpaid subscribers includes mobile voice, standard mobile broadband, and dedicated data mobile broadband subscriptions. Numbers are in Millions for the subscribers.#8financial highlight S Q1 2023 stc Investor Relations Q1 2023#9stc Group - Revenue 9 19.0 18.0 7.45% 16.92 16.94 17.0 16.47 16.0 15.0 Q1-22 All figures are in SAR Billions Q2-22 Q3-22 17.03 Q4-22 6.72% stc recorded the highest quarterly revenue in its history 18.18 Q1-23 stc Investor Relations Q1 2023#10stc Group - Gross Profit 10.2 10.0 2.24% 10.04 60.96% stc 3.61% 62.0% 60.0% 9.8 9.6 9.4 58.0% 9.36 56.0% 9.15 9.17 9.03 9.2 9.0 54.08% 54.16% 8.8 54.0% 51.46% 53.01% 52.0% 8.6 8.4 Q1-22 Q2-22 Q3-22 Q4-22 50.0% Q1-23 Gross Margin Continuous improvement in gross profit, while maintaining healthy margins Investor Relations All figures are in SAR Billions Q1 2023 10#11stc Group - EBITDA 0.68% 15.29% stc 8.0 7.07 7.0 6.30 6.20 50.0% 6.34 40.0% 42.93% 6.0 5.50 37.24% 36.63% 5.0 34.89% 30.0% 32.30% 4.0 20.0% 3.0 2.0 10.0% 1.0 0.0 Q1-22 Q2-22 Q3-22 EBITDA Margin Q4-22 0.0% Q1-23 Robust growth in EBITDA for Q1 2023 compared to the previous quarter, backed with improving margins All figures are in SAR Billions Investor Relations Q1 2023#12stc Group - Net Profit 2.44% 12.77% stc 4.0 3.54 3.04 3.0 2.84 21.49% 25.0% 3.11 20.0% 2.76 17.94% 16.75% 17.10% 15.0% 16.19% 2.0 10 1.0 0.0 Q1-22 Q2-22 Q3-22 Q4-22 Net Profit Margin 10.0% 5.0% 0.0% Q1-23 Noteworthy growth in net profit for Q1 2023 compared to the previous quarter, coupled with healthy margins Investor Relations Q1 2023 All figures are in SAR Billions#1336 35 34 33 32 31 FLO325 41 40 39 38 37 Price Vs. Yield Fluctuation 1/1/2023 1/9/2023 1/17/2023 1/25/2023 2/2/2023 2/10/2023 2/18/2023 2/26/2023 Div Yield 3/6/2023 3/14/2023 3/22/2023 3/30/2023 4.80% 4.60% " stc commits to pay a fixed minimum dividend of a SAR 0.4 per share per quarter effective from Q4 2021 for three years. Furthermore, 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 The dividends policy will remain subject to: 4.40% 4.20% 4.00% 1. 3.80% 2. 3.60% Any material changes in the strategy and business of the company (including the business environment it operates in); Laws and regulations that are applicable on the company; 3. Any banking, other funding or credit rating covenants that the company may be bound to follow from time to time. Payout Ratio/Dividend Yield 5.0% 100.0% 4.37% 0.62 4.12% 4.07% 4.00% 4.0% 3.71% 80.0% 0.61 0.57 Earnings Per Share (EPS) 0.71 0.55 lilii 3.0% 2.0% 65.57% 1.0% 72.73% 70.42% 60.0% 64.52% 56.34% 40.0% 20.0% 0.0% 0.0% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-22 Q2-22 Q3-22 Div Yeild* Q4-22 Payout Ratio Q1-23 *Annualized Dividend#14thank you