In January 2018, stc established Telecommunications Towers Company (TAWAL) -a closed joint stock company- with a share capital of SAR 2,500 million wholly owned by stc. Its head office is located in the Kingdom and it fulfills its operational activity in the Kingdom. TAWAL is responsible for owning, constructing, operating, leasing and commercializing telecom towers in the Kingdom.

TAWAL started its commercial operation on April 2019 to provide ICT Infrastructure Services. Moreover, TAWAL is also licensed by Communications, Space & Technology Commission (CST) to provide Class A (Towers and Masts) and Class B (Indoor Solution – IBS) ICT Infrastructure Services.

TAWAL is considered the region’s largest telecommunication tower company with a portfolio of more than 16,000 telecom towers distributed across the Kingdom of Saudi Arabia. TAWAL also provides other adjacent ICT infrastructure services e.g. In-Building-Solutions, and Fiber-To-The-Tower re-selling.

During October 2022, stc received a non-binding offer from the Public Investment Fund (PIF) to acquire 51% of the shares of TAWAL, while stc will maintain 49% of the shares of TAWAL. TAWAL was valued at SAR 21,940 million (100% enterprise value on cash free and debt free basis). The offer does not represent any binding commitment on both parties and it remains subject to completing the due diligence and reaching final and binding agreement which will be conditional upon obtaining all regulatory approvals from relevant authorities including the approval from the General Authority for Competition, internal approvals of the respective parties, and any other conditions that may be agreed between the parties.

Company’s strategy:

TAWAL’s strategy focuses around strengthening its core proposition while commercializing adjacent products to become a one-stop-shop, expanding beyond the home market and becoming a regional infra services provider while enriching customer experience.

Operational/Business highlights:

In 2022, TAWAL built +120 new towers and also helped in the roll-out of 5G services. Furthermore, TAWAL enabled colocations of other licensed operators on +500 towers, and due to the increased number of colocations, TAWAL was able to further improve its tower tenancy ratio from 1.16 in 2021 to 1.19 in 2022. TAWAL was also successful in signing 28 site deals with its IBS clients.

TAWAL was able to maintain 99.9% services availability at all locations and to all operators in 2022. During the peak days of the 2022 hajj season, TAWAL maintained infrastructure services at PIN availability of 99.99% at all owned sites in Mecca which resulted in a positive impact at operators’ level.

Achievements highlights:

Since its inception, TAWAL has achieved several key milestones by leveraging its vast telecom tower network and realizing operational efficiencies.

Saudi Telecom Channels Company (Channels) was established in the Kingdom in January 2008 with the purpose of operating in the wholesale and retail trade of recharge card services, telecommunication equipment and devices, computer services, sale and re-sale of all fixed and mobile telecommunication services, and commercial centers’ maintenance and operation. Channels operates in Saudi Market, its head office is located in the Kingdom, and it fulfills its operational activity in the Kingdom, Bahrain, Oman, and Kuwait through its subsidiaries in Bahrain, Oman, and Kuwait who are working in the same field. stc owns 100% of Channels capital, amounting to SAR 100 million.

Channels was established as the sales and distribution arm of stc. Since then, Channels has evolved into a leading regional sales and distribution company covering telco retail, field sales and distribution, consumer electronics retail and distribution, and last mile delivery for e-commerce players. Recently, Channels has been focused on monetizing its capabilities beyond serving the Commercial unit in order to achieve an additional revenue stream. For instance, Channels has been active on

Company’s strategy:

Channels’s strategy spans over 5 key themes:

1. Enable stc’s Core Services Growth

Gear efforts across sales channels in KSA to capture growing telco segments and maintain broadband leadership.

2. Extract Maximum Value from Core Channels

Capitalize on core channels to enhance sales and profitability, and maximize asset utilization while delivering world-class customer experience across the value chain (e.g., repurpose large retail store to experience centers, improve digital channels monetization).

3. Capture Growth Opportunities

Achieve diversification and expand offerings by monetizing superior capabilities and capturing growth opportunities such as B2B telco sales and last mile delivery.

4. Enable Organizational and Operational Capabilities

Develop best in class organizational and operational capabilities to sustain channels’ ambitions (e.g., elevate business intelligence and analytics).

5. Lead in International Markets

Spur channels international subsidiaries’ growth by leveraging Group capabilities and learnings from KSA to become market leaders (e.g., setup new sales channels in subsidiaries).

In November 2017, Saudi Digital Payments Company (stc Bank) - a closed joint stock company- was established and its main activity is to provide digital payments services. During the year 2020, Saudi Central Bank licensed Saudi Digital Payments Company (stc Bank) as an electronic wallet company. Its head office is located in the Kingdom and it fulfills its operational activity in the Kingdom.

In November 2020, stc signed an agreement with Western Union (WU) to sell 15% of stc’s share in Saudi Digital Payments Company (stc Bank)

for a total amount of

SAR0 million

(equivalent to USD 200 million), and currently stc owns 85% of the capital of Saudi Digital Payments Company (stc Bank).

During the year 2021, the Council of Ministers approved granting Saudi Digital Payments Company (stc Bank) a digital banking services license to become a digital bank with a share capital of SAR 2.5 billion.

Company’s strategy:

stc is undergoing a transformation journey towards becoming the leading digital bank in KSA.

stc Bank's strategic aspiration is to become a pioneer in digital financial services and banking by offering unique tailored propositions to its customers through innovative digital channels & customer journeys.

Operational/Business highlights:

stc Bank has made much progress across its Transformation Program pillars with the core focus on the readiness of the bank’s go-live date. Many fundamental objectives of the transformation programs have been realized across systems, products, and functions. In addition, stc Bank has achieved the following YoY growth rates across some of the major operational metrics since the beginning of the year

0% Growth in App. Downloads.

0% Growth in Active 180 days.

0% Growth in Cash-In Volumes.

0% Growth in Total Transactions Processed.

0% Growth in # of Cards.

0% Growth in Peer-to-Peer Transactions.

0% Growth in International Remittance Transactions.

Achievements highlights:

Digital Centers for Data and Telecommunications Company (Center3) –a limited liability company- was established in February 2022 with a capital of SAR 100 million, wholly owned by stc, with the purpose of providing services related to big data, data analytics and cloud computing. Its main center is located in the Kingdom and it carries out its operational activities in the Kingdom.

Center3 is the result of stc Group’s vision, where stc believes the Kingdom of Saudi Arabia will be the heart of all international data connectivity crossing and connecting three continents (Europe, Asia and Africa) and a data center hub for the MENA region. Center3 provides a one-stop-shop to its customers for their hosting and connectivity requirements in the MENA region. By realizing internal efficiencies, driving economies of scale, and focusing on cost efficiency, center3 aims to become the regional data hub for all data center hosting and connectivity services.

Company’s strategy:

center3’s “PRIME” Strategy will focus on key strategic themes to pursue solid customer engagement models and commercial foundations, building long term partnerships, and re-imagine the data hub commercial proposition by developing a one-stop-shop services catalogue and providing a world class service. İn addition, center3 will invest in expanding asset portfolio in KSA and abroad.

Operational/Business highlights:

Center3’s will contribute in localizing content and services through investments provided by the Group to these multiple centers, which have a capacity and DC access of up to 125 MW to be raised to 300 MW according to the plan being developed by stc Group.

In November 2020, stc established Advanced Technology and Cyber Security Company (sirar) -a limited liability company- with share capital of SAR 250 million as of 31 December 2022 (2021: SAR 120 million) wholly owned by stc, to provide cybersecurity services and its head office is located in the Kingdom and it fulfills its operational activity in the Kingdom.

sirar is the ICT and digital services provider in the Kingdom. As an experts in business security and privacy, it offers a comprehensive range of solutions that help to operate online safely, securely, and efficiently. The tools sirar provides help customers detect and prevent cybersecurity attacks, safeguarding their digital future, and providing shield and secure.

Company’s strategy:

sirar’s strategy is STORM which stands for Shape, Transform, occupy, retain and model. STORM exists to develop world-class leading edge cyber solutions and capabilities with a purpose to economic and physical critical infrastructure and services of our customers in the kingdom and Middle East region.

Achievements highlights:

Internet of Things Information Technology Company (IoT squared) –a limited liability company- was established in May 2022 in partnership between stc and Public Investment Fund with 50% share for each party, and a capital of SAR 492 million, stc is accounting for this entity as a subsidiary as it has the right to appoint the majority of board of directors and key management personnel. The establishment of IoT squared is a step aimed at establishing the first entity of its kind specialized in IoT technologies. Its head office is located in the Kingdom and it fulfills its operational activity in the Kingdom.

IoT squared is positioned to be a regional hub for the Internet of Things in the Middle East and North Africa, bearing the objective to accelerate the adoption of IoT technologies. Internet of things has been identified in stc's "DARE 2.0" strategy among the strategic areas of investment, which aligns with Saudi Arabia’s digital transformation initiatives.

IoT squared will offer smart solutions different sectors including manufacturing, logistics, and smart cities as it aims to become a “one-stop-shop” for IoT solutions. IoT squared plans to support these sectors in achieving growth and operational excellence as well as stimulate research and development in the Kingdom of Saudi Arabia.

Local market studies indicate vast growth in the size of the IoT market in the Kingdom to potentially reach

SAR0.0 billion

by 2025 with an annual growth rate of 12.8% which promotes investment opportunities in the sector.

Company’s strategy:

IoT squared’s vision is to unlock the value of connected things”, with a mission to provide organizations with real-time insights for critical decision making and intelligent operations".

IoT squared’s strategy is to be a product, platform and services focused company acting as a one-stop-shop for end-to-end IoT use-cases, in the logistics, industrial and smart city verticals.

Achievements highlights:

The General Cloud Computing Company for Information Technology (SCCC) –a limited liability company- was established in May 2022 with a capital of SAR 894 million, in partnership with eWTP Arabia Technology Innovation Limited Company (eWTPA), Alibaba (Singapore) Private Limited (Alibaba Cloud), Saudi Company for Artificial Intelligence (SCAI), and Saudi Information Technology Company (SITE). stc owns 55% of the company's capital, and the main purpose of establishing the company is to provide cloud computing services and products, and its main center is located in the Kingdom and it fulfills its operational activity in the Kingdom . (For more details, see note 32-1 in the annual financial statements).

Company’s strategy:

Public Telecommunications Company (Specialized) was established in February 2002. stc acquired 100% of the SAR 252 million share capital in January 2014. Specialized operates in the electrical business and communication networks, wholesale and retail trade in fixed telecommunications equipment, electrical appliances, import, marketing, installation and maintenance of fixed and mobile telecommunications and information technology licensed devices. Its head office is located in the Kingdom and it fulfills its operational activity in the Kingdom.

Specialized is the leading provider of cutting edge technological solutions and services to all businesses for critical and mission critical communications users within Saudi Arabia. Specialized aims to contribute actively in achieving the goals of the Kingdom's Vision 2030. The company aims to do this by providing advanced, differentiated and specialized services particularly in health, transportation, education, security and defense sectors.

Company’s strategy:

Specialized’s vision is to be the trusted partner of critical communications, services and innovative solutions. The company’s strategy is to focus on the following 4 dimensions:

Operational/Business achievements:

Below are the main operational achievements during 2022:

Platform enhancement:

Hajj season:

Others:

Gulf Digital Media Model Company Ltd (GDMM-Intigral) -a limited liability company- was established in March 2002 with a capital of SAR 811 million with the purpose of providing broadcasting and media production services. Its head office is located in the Kingdom and it fulfills its operational activities in the Kingdom.

Intigral is stc’s digital media arm and manages the two brands of stc’s digital media streaming platform: stc tv and Jawwy TV.

stc tv is the brand pushed in markets with stc telco presence (i.e., KSA, Bahrain and Kuwait) while Jawwy TV is pushed in other MENA markets (e.g., Oman, UAE, Egypt, Tunis, etc.) Until recently, Jawwy TV was stc’s sole digital media brand and it focused on content production and content aggregation directly from producers.

In parallel to the launch of stc tv brand, Intigral’s strategy was refreshed to focus on becoming a one-stop-shop for all consumers’ content needs by aggregating other leading aggregators’ content through a single sign-on and single-bill platform in order to leverages cross-platform analytics for recommendations.

Moving forward, Intigral aims to house MENA’s preferred one-stop-shop digital media streaming platform, creating value for stc’s shareholders through.

Company’s strategy:

Intigral’s strategy revolves around pushing on the experience play and regional expansion of its one-stop-shop digital media streaming platform:

Double Down on Content Aggregation

Refocus on content aggregation and platform offering and experience, to become the aggregator of aggregators.

Establish Foothold in KSA

Leverage stc’s reach and consumer relations to further establish a solid position in KSA and stc’s work regions.

Expand Distribution and Regional Focus

Expand distribution channels in KSA and the region through partnerships with stc’s subsidiaries and other channels to become the preferred aggregator in MENA.

Enhance Operational Efficiency

Improve operational efficiency, optimizing cost and product performance, by leveraging advanced data analytics, informed decision making and adopting new ways of working.

Aqalat Limited Company (Aqalat) was established in March 2013 with a total share capital of SAR 70 million, wholly owned by stc, for the purpose of establishing, owning, investing, managing of real estate and contracting, and providing consulting services, and importing and exporting services to the benefit of stc, and achieving dare strategic goals to make optimal utilization of assets. It is headquartered in the Kingdom and carries out its operational activities in the Kingdom.

Company’s strategy:

Aqalat’s strategy is based on maximizing stc Group's returns by developing real estate projects based on stc's assets, leasing and selling non-core real estate assets, after converting land uses from service facilities to mixed-use investment lands.

Operational/Business highlights:

Aqalat accelerated the construction work on stc Square project, resulting in a completion rate that exceeded the project's planned timeline. Additionally, Aqalat signed a memorandum of understanding (MOU) with DUR to build a unique hotel in stc Square project that would use cutting-edge technology in construction. It is worth mentioning that Aqalat has begun the pre-leasing process for offices in stc Square project and initiated advanced discussions with potential partners for the operation of the entertainment portion of stc Square project. Further, Investment studies have been conducted and potential lands for investment for the upcoming period were prepared through conversion of land use in preparation for the implementation during the next year.

Achievements highlights:

Aqalat has achieved several key achievements during 2022. Aqalat has achieved the highest Local Content Score across all stc’s subsidiaries in 2021, which approved by the Local Content and Government Procurement Authority (LCGPA). This led to strengthening stc’s profile as one of the leading national companies contributing to 2030 Vision. Aqalat has also been qualified as a real estate developer by the Ministry of Housing.

Telecom Commercial Investment Company Limited (TCIC) was established in October 2007 with a capital of SAR 1 million wholly owned by stc with the purpose of operating and maintaining telecommunication networks, organizing computer systems’ networks and internet networks, maintenance, operation and installation of telecommunication and information technology systems and programs in the Saudi market. Its head office is located in the Kingdom and it fulfills its operational activity in the Kingdom.

In September 2019, stc has established Smart Zone Real Estate Company –a limited liability company- with a share capital of approximately SAR 312 million as of 31 December 2022 (2021: SAR 107 million) wholly owned by stc, with the purpose of development, financing and management of real estate projects, the establishment of facilities, complexes, commercial, office and residential buildings. Its head office is located in the Kingdom and it fulfills its operational activity in the Kingdom.

In August 2021, stc has established the Innovation Fund Investment Company -a limited liability company- with a total capital of SAR 56.2 million, with the purpose of providing administrative services and IT and telecommunication support. Its head office is located in the Kingdom and it fulfills its operational activity in the Kingdom.