Instilling a digital mindset, unlocking the potential of digital and analytics capabilities, transforming into an agile technology company and embrace new ways of working, maximizing shareholder returns by creating value and monetizing assets. In addition, we will be focusing on connecting our markets through leading next generation technology and digital offerings, becoming a role model for sustainability and corporate governance, leading company-wide culture change, be the employer of choice for top digital talent, stimulating customers with a seamless, personalized, and secure experience, become the trusted partner-of-choice for business in the region, and growing by expanding into selected growth pillars within digital services and core digitization of stc.

In 2022, stc Group made considerable progress in realizing this strategy through new initiatives launched and cementing the foundations for continued growth.

stc Group 2022 financial results reflect our commanding leading position across telecom and technology business lines, and the significant value we create for shareholders. Our revenues increased by

stc Group increased its share capital by SAR 30 billion from SAR 20 billion to

SAR50 million

through a bonus share issuance

The capital increase has further strengthen stc’s financial position which allowed it to be well positioned to capture growth opportunities and maximize its shareholders’ return.

Part of our Group strategy is focused on maximizing returns on assets and capital recycling to enable stc to unlock value in new and innovative areas. A prime example is the non-binding offer from the Public Investment Fund (PIF) in October to acquire 51% of Telecom Towers Company (TAWAL), a wholly-owned subsidiary of stc, for a total enterprise value of SAR 21.94 billion (USD 5.85 billion).

As part of our new technology investments in the local market, stc Group allocated an additional USD 300 million investment to STV this year, the largest independent technology investment company in the Middle East and North Africa region. This investment further cements our role in driving digital transformation, funding innovative technology projects and unlock the potential of the next generation of entrepreneurs in the region. In 2022, stc Group made significant strides in becoming a leading TechCo through direct investments in new technologies.

Early in the year, we announced our plan to invest more than

to accelerate digital transformation and provide global connectivity, using Saudi Arabia’s strategic geography to position the Kingdom as a digital hub for the Middle East and North Africa. At the heart of this process is Digital Centers for Data and Telecommunications Company “center3”, the owner of our digital infrastructure assets.

Through center3, we have achieved notable success as we have launched a data cable project to link East and West in partnership with Greek telecommunications company TSSA and landed the “Saudi Vision” submarine cable (SVC), the first high-capacity submarine cable in the Red Sea. Both are testaments to our commitment in securing uninterrupted digital data capacity.

Through our attempts to push the partnership and innovation envelop further, we formed General Cloud Computing Company for Information Technology “Alibaba Cloud”, a JV with Alibaba, eWTP Arabia Capital, Saudi Company for Artificial Intelligence (SCAI), and the Saudi Information Technology Company (SITE), to establish the region’s first hyper-scale cloud via SCCC, and formed a JV with the Public Investment Fund to establish Internet of Things Information Technology Company “iot squared”, an internet of things leading Technology Company. The outlook of our partnership strategy will materialize with further notable achievements, which will cement our leading TechCo positioning.

In conclusion, I would like express our sincerer appreciation to KSA’s Government, which is driving one of the most ambitious transformations the world has ever witnessed, elevating the Kingdom of Saudi Arabia to assume a leading role regionally and globally. stc Group’s bold growth strategy reflects our nation’s ambitions as we play our part in making the Kingdom of Saudi Arabia the world’s most connected and digitized nation by 2030.

I would like to extend my gratitude and thanks to our eminent shareholders for their trust and continued support of the Board. Finally, I would also like to express my gratitude to our partners, our management team, our valued employees across the Group, and most of all our customers for playing central role in stc Group’s success.

Thank You

Mohammed K. A. Al Faisal

Chairman of the Board of Directors