Investor Presentation 2020

9 KSA & Telecom Industry (Q2 2020) Macro Economy & Liquidity Regulatory Environment Saudi Aramco posts strong results in Q1 despite challenges, expects COVID-19 to weigh on revenue. Saudi Aramco completes acquisition of 70% stake in SABIC. Investor Presentation 2020 | stc group • Saudi Arabia: Hajj 2020 to be held with limited number of pilgrims. The decision was taken due to the ongoing threat from the coronavirus pandemic and to preserve "global public health," the Saudi Ministry of Hajj and Umrah said. Saudi Arabia VAT tax triples to 15 pct. The announcement came in mid-May following a wave of enormous cost-cutting programs to help counter the unprecedented economic fallout caused by the ongoing coronavirus pandemic. The unemployment rate among Saudis dropped to 11.8% in Q1 2020, compared to end of 2019, according to data from the Saudi General Authority for Statistics. CITC has announced it will lower the cap on termination rates for local mobile and fixed calls. Local mobile termination rates (MTR) will be reduced by 60% to SAR 0.022, from SAR 0.055 in 2017. Fixed termination rates (FTR) will be also cut by 48% to SAR 0.011, from SAR 0.021 in 2017. CITC plans to enhance the regulatory environment for cell-on-wheels (COW) or what is known as mobile cellular sites and towers. The step aims to cut operating expenses (OPEX) and capital expenditure (CAPEX), maximize efficiency, as well as cutting maintenance costs. CITC Open Access agreement came into effect during Q2 2020. Government Initiatives • • As part of its role in activating monetary policy tools and preserving financial stability, the Saudi Arabian Monetary Authority (SAMA) has decided to inject SAR 50 billion into the banking sector to enhance banking liquidity and enable banks to continue providing credit facilities for the private sector. Saudi Arabia has extended the validity of all tourist visas which had expired during the period of suspension of international flights. Saudi Arabia's Government launches measures to support industrial & mining sectors in response to COVID-19 pandemic. Saudi King Salman issued a royal decree on extending some government initiatives to mitigate the fallout of the coronavirus pandemic on economic activities and the private sector. These initiatives focus on supporting Saudi employees, suspending penalties, deferring collection of fees, exemptions and tax returns. stc

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