Arabian Internet and Communications Services Company · TADAWUL:7202
Arabian Internet and Communications Services — H1 2025 Earnings Presentation
48 slides from Arabian Internet and Communications Services's earnings presentation, August 2025
Slide 1: 1H 2025 Investor Presentation
1H 2025 Investor Presentation
Slide 2: Agenda
Agenda 1 Key Milestones in 1H 2025 2 Overview of solutions by stc 3 KSA’s Macroeconomic Environment 4 Investment Thesis 5 Strategy Highlights 6 PPP Projects 7 Financial Performance 8 Appendix
Slide 3: Key Milestones In 1H 2025
1 Key Milestones In 1H 2025
Slide 4: Key Milestones in 1Q 2025
This message/document has been classified as “Public” Key Milestones in 1Q 2025 solutions entered a number of high-potential partnerships and promising contracts, laying a solid foundation for growth 9 February 13 February 19 February 17 March upsource by solutions by stc signed a Giza Arabia soluti
Slide 5: Key Milestones in 2Q 2025
This message/document has been classified as “Public” Key Milestones in 2Q 2025 solutions secured multiple long-term partnerships establishing a strong foundation for future growth 22 April 20 May 22 June Signed a SAR 142m contract Launched Joint Venture, Signed a strategic with stc for 3 years to N
Slide 6: Overview of solutions by stc
2 Overview of solutions by stc
Slide 7: solutions by stc at a Glance
solutions by stc at a Glance The leading ICT services provider and enabler of the digital transformation across the Kingdom IT services provider IT Services Years of experience Key highlights #1 in Saudi Arabia 22.7% market share in KSA 25+ in IT sector FY 2024 Revenue growth YoY Net income growth f
Slide 8: Geographical presence
Geographical presence Strong local presence and global reach Qatar Cairo • Strong footprint in the local UAE market with offices in Qassim, Saudi Arabia Jubail, Khobar, Jeddah and the Uganda head office in Riyadh Nigeria Kenya • The acquisition of Giza, upsource by solutions (ex-ccc) Tanzania and th
Slide 9: solutions by stc evolution
This message/document has been classified as “Public” solutions by stc evolution Expanding from serving stc alone to serving governments and enterprises across KSA and MENA region 2002 2009 2017 2019 2022 2024 Naseej, Built Launched VSAT, Rebranded as solutions by stc Completion of AwalNet, capabili
Slide 10: Management Team
This message/document has been classified as “Public” Management Team solutions leadership team are set to achieve corporate progression and business goals. ~31 yrs. of experience, of ~ 21 yrs. of total ~ 31 yrs. of experience, of ~ 19 yrs. of experience in ~ 21 yrs. of experience, of which nearly +
Slide 11: Overview of Business Segments
This message/document has been classified as “Public” Overview of Business Segments solutions1operates across three main business segments Business line Services Share of Revenue, 1H 2025 Core ICT • System integration services 49% Services • Communication and Internet services • Managed services IT
Slide 12: Product Portfolio Spans the Whole Value Chain
This message/document has been classified as “Public” Product Portfolio Spans the Whole Value Chain solutions delivers value to its clients by addressing their IT and business challenges across the entire IT value chain DESIGN & BUILD RUN CONNECT ACCESS DIGITIZE SECURE System Business Outsourcing &
Slide 13: Product Portfolio: Core ICT Services Segment
This message/document has been classified as “Public” Product Portfolio: Core ICT Services Segment 1 DESIGN & BUILD RUN CONNECT ACCESS DIGITIZE SECURE Business line Description Services System integration services cover a Network Integration System variety of organizational needs Infrastructure Inte
Slide 14: Product Portfolio: IT Managed and Operational Services Segment
This message/document has been classified as “Public” Product Portfolio: IT Managed and Operational Services Segment 1 DESIGN & BUILD RUN CONNECT ACCESS DIGITIZE SECURE Business line Description Services Managed Networks Services Providing end-to-end Managed IT Infrastructure Managed services manage
Slide 15: Product Portfolio: Digital Services Segment
This message/document has been classified as “Public” Product Portfolio: Digital Services Segment 1 DESIGN & BUILD RUN CONNECT ACCESS DIGITIZE SECURE Business line Description Services Cloud Advisory & Assessment Cloud App. Modernization Cloud services Full spectrum of data center, Cloud Enablement
Slide 16: Market Positioning
This message/document has been classified as “Public” Market Positioning solutions currently has 22.7% market share in the Saudi Arabian IT market + + KSA Pure Play Public & Private Sector E2E solutions Majority of solutions revenue is 41% of revenue generated from solutions comprehensive generated
Slide 17: Competitive Landscape
This message/document has been classified as “Public” Competitive Landscape solutions is in an unrivalled position to maintain its leadership position in Saudi Arabia solutions competitive positioning High barriers to entry + solutions’ key strengths: + International Competition + +25 years track re
Slide 18: Partnerships
This message/document has been classified as “Public” Partnerships Well-balanced partner ecosystem to diversify our offerings… + + 171 + 2024 key partnerships 467 Partners including Mavenir CNTXT FastSystems Dataiku frog SenseTime Local Suppliers Cisco, Microsoft, Dell, Engaged VMWare, Huawei Cloud-
Slide 19: Human Capital Analysis
This message/document has been classified as “Public” Human Capital Analysis solutions work towards elevating skill level and achieving diversified employee base Employees Age Employees Profile +51 years 4% 18-30 Saudi , 64% 24% Female , 19% 1,464 Employees 1,464 Employees 31-50 72% As of FY 2024 19
Slide 20: KSA's Macro-Economic Environment
3 KSA’s Macro-Economic Environment
Slide 21: Macro-Economic Environment
This message/document has been classified as “Public” Macro-Economic Environment Robust economic outlook supportive for the ICT sector in the kingdom Real GDP Growth (%) Brent Oil Price / Barrel (USD) Government Expenditures % of GDP (%) 4.60% 4.00% 32.3% 32.9% 29.5% 30.0% 82 80 70 65 1.30% 0.03% 20
Slide 22: Investment Thesis
4 Investment Thesis
Slide 23: Investment Thesis Update
This message/document has been classified as “Public” Investment Thesis Update solutions offers an attractive mix of market leadership, growth potential and superior returns Market Leadership Sizeable and Superior Value Asset-Light Business Diversified Portfolio Creation Model • Undisputable market
Slide 24: Strategy Highlights
5 Strategy Highlights
Slide 25: a solution's Strategy
a solution’s Strategy
Slide 26: LEAP 2.0: a bold vision for a transformative era
This message/document has been classified as “Public” LEAP 2.0: a bold vision for a transformative era The new strategy aims at augmenting the core business by emerging tech, innovation and efficiency gains Growth Profitability + Drive growth through expansion and enhancements Sustain strong margins
Slide 27: Expansion into AI
This message/document has been classified as “Public” Expansion into AI Driving solutions ambition as a Next Gen Services provider and an AI First company. Booming Enablement of Existing capabilities Customer AI market National AI Play and deep client access demand evolving AI market is rapidly KSA
Slide 28: Aiming to become an AI First organization
This message/document has been classified as “Public” Aiming to become an AI First organization solutions enables and orchestrates an AI-powered ecosystem for customers to deliver unparalleled outcomes Provide integrated Build best-in-class Install AI in the Develop the AI ecosystem AI offering capa
Slide 29: Driving Forward: LEAP 2.0 Strategic Progress
This message/document has been classified as “Public” Driving Forward: LEAP 2.0 Strategic Progress Strategy to Showcasing tangible progress in developing and launching core strategic offerings Value Creation business resilience and strengthening market leadership. Strategic advancements on a pivotal
Slide 30: Digital Product Factory – Deliver Digital Products with Agility
This message/document has been classified as “Public” Digital Product Factory – Deliver Digital Products with Agility The Digital Factory is a disciplined way to deliver software products, established on agility, and automated development & secure deployment processes (DevSecOps); a joint value prop
Slide 31: b M&A Summary
b M&A Summary
Slide 32: Value-added M&A drive growth, expand offering and bring synergies
This message/document has been classified as “Public” Value-added M&A drive growth, expand offering and bring synergies The recent acquisitions reinforced the group’s market leadership and made a notable financial contribution* Ownership share: 88.2% Ownership share: 100% Ownership share: 40% Strate
Slide 33: Giza snapshot
This message/document has been classified as “Public” Giza snapshot Giza brings strong presence in Egypt and enhances solutions’ one-stop-shop offering Background Portfolio Established in 1974 as first national IT Company in Egypt. Became #1 provider for OSS & BSS in Egypt in 2004. System, applicati
Slide 34: upsource by solutions (ex-ccc) snapshot
This message/document has been classified as “Public” upsource by solutions (ex-ccc)* snapshot Upsource by solutions (ex-ccc) reinforces solutions’ ICT market leadership and expands its BPO offering Background Services Portfolio Founded in 2011 as a JV between stc Group and the US-based global compa
Slide 35: Devoteam snapshot
This message/document has been classified as “Public” Devoteam snapshot Devoteam brings synergies with solutions’ core business and adds digital consulting and business transformation expertise Background Services Portfolio A leading consulting firm focused on digital strategy and tech platforms, wi
Slide 36: PPP Projects
6 PPP Projects
Slide 37: Leading innovation and urban transformation through strategic PPPs
This message/document has been classified as “Public” Leading innovation and urban transformation through strategic PPPs The PPP model creates recurring revenue streams, enhances financial performance and contributes to sustainability Building the right set-up Testing the Engine Capture the opportun
Slide 38: Financial Performance
7 Financial Performance
Slide 39: solutions 1H 2025 Financial Dashboard
solutions 1H 2025 Financial Dashboard Revenue growth accelerated accompanied by EBITDA and EBIT margin gains 1H 25 Revenue 1H 25 GP Margin 1H 25 Capex 1H 25 Capex / Revenue SAR mn 5,725 +3% YoY 22.2% -135bps YoY SAR mn 86 +57% YoY 1.5% +52bps YoY 1H 25 EBITDA 1H 25 EBITDA Margin 1H 25 Net Cash From
Slide 40: Appendix
8 Appendix
Slide 41: Outlook and Guidance for 2025
a Outlook and Guidance for 2025
Slide 42: Outlook and Guidance
This message/document has been classified as “Public” Outlook and Guidance solutions maintains its 2025 guidance 1H 2025 Results FY 2025 Guidance Revenue Growth 3% 8% - 10% EBITDA Margin 16.9% 14% - 16% Capex Intensity 1.5% 2% - 3% 42 / 48
Slide 43: b Awards
© solutions by ste
Slide 44: Awards
This message/document has been classified as “Public” Awards Awards, recognition, and certifications People Corporate Social Top-5 Inspiring Workplaces Best Culture & Purpose Best Inclusion across Africa Best Experience across Responsibility Award across Africa and the across Africa and the and the
Slide 45: IR Contact
C IR Contact © solutions by ste
Slide 46: IR Contact Details
IR Contact Details Contact solutions by stc investor relations team Abdullah Al-Dayel GM of Corporate Finance & Investor Relations +966 11 525 2985 [email protected] Wafi Alfawzan Investor Relations Director +966 11 525 1174 [email protected] Ghadah Alsuhaim Investor Relations Manag
Slide 47: Thank You!
Thank You! by ste
Slide 48: Disclaimer
This message/document has been classified as “Public” Disclaimer This document has been prepared by solutions by stc (the “Company”) solely for presentation purposes. The information contained in this document has not been independently verified and no representation or warranty, expressed or implie