Dear valued shareholders,

I am pleased to present to you, on behalf of the Board of Directors, solutions by stc’s Annual Report for 2022. During the past year, the Company strengthened its position as the Kingdom’s leading enabler of digital transformation, and took new and exciting strides for expansion and consolidation, in alignment with an ambitious growth strategy.

solutions by stc remains committed to the Kingdom’s Vision 2030 goal of developing the Information and Communication Technology (ICT) Sector to be a key contributor to the economy and national GDP. The Company continues to provide ICT and digital solutions to key customers in the government and private sectors; while taking active and forward-looking steps to diversify its customer base and strengthen capabilities in key growth areas and markets.

A landmark achievement

We are proud to announce that in October 2022, solutions by stc completed the acquisition of an 88.19% stake in Giza Systems, a leading systems integrator in the region. This acquisition enables a new phase of expansion and diversification in the Middle East and North Africa (MENA), and West, East, and Central Africa (WECA). Being the first acquisition of its kind, the deal was a strategic move to capitalize on a lucrative opportunity in the region at a time when there is exponential growth in the ICT sector.

Furthermore, this move enables us to expand our capabilities, penetrate new markets, and grow our customer base; while achieving the best value for our shareholders and positioning the Company on the global stage. Working together with the team at Giza Systems, we have enriched our service offering and continued to add value to our customers across the Kingdom and beyond.

We are also pleased to announce that solutions by stc signed a binding offer to acquire ccc by stc from stc group and ESM Holdings LLC, at an enterprise value of SAR 450 million. ccc by stc is a BPO powerhouse with local roots and international expertise. Through this acquisition, we look forward to exploring new synergies that empower both companies; allowing solutions by stc to expand into the BPO market and positioning ccc by stc for further growth in regional markets.

Building on our strengths

Following solutions by stc’s celebrated listing on the Saudi Stock Exchange in 2021, one of the most successful IPOs of the year, the Company’s market value appreciated in 2022. We upheld the trust of our investors and enjoyed positive growth during the year that enabled solutions by stc to reach a market capitalization of SAR+29 billion (USD 7.8 billion) by the end of 2022. This is a testament to the Company’s ambitious strategy, future-focused business proposition, industry competitiveness, and agile business model.

Building on the success of the IPO and confidence of our shareholders, solutions by stc was able to further its strategic goals of enhancing relationships with stakeholders, improving capabilities, and strengthening processes. As a Board, we have worked to increase transparency and provide stronger governance oversight that will be crucial in ensuring business sustainability on the Company’s growth trajectory.

In line with solutions by stc’s five-year LEAP strategy, the Company aims to continue to strengthen its existing portfolio while investing in new business lines, diversifying into new customer segments, and entering new markets in the region. Establishment of an Investment Committee at Board level will spearhead our efforts to leverage opportunities in our Mergers & Acquisition (M&A) strategy. In line with our growth strategy, we have updated and expanded our existing risk appetite statement to better capture the context of the Company, and ensure a more robust management of both internal and external risks.

Committed to Vision 2030

As solutions by stc continues to enable the digital transformation in the Kingdom, it remains committed to furthering the ambitious goals reflected in Vision 2030. Increasing demand for ICT services within the Kingdom, both in the government and private sectors, yielded significant growth opportunities for solutions by stc in 2022.

Core ICT services, IT managed and operational services, and digital services make up the three pillars of our offering. During the year, solutions by stc continued to deliver secure and cutting-edge digital infrastructure, and provide vital services that drove growth, scale, and transformation for our customers.

We have engaged in a number of new, robust partnerships during the year in order to expand our horizontal and vertical market presence, and are continually monitoring different trends in the ICT landscape in order to gear the Company to deliver cutting-edge solutions in growth sectors.

A journey of sustainability

Active steps were taken to improve the mainstreaming of Environmental, Social and Governance (ESG) factors in strategic decision-making, business operations, stakeholder engagement, and corporate disclosure. As part of this journey, solutions by stc has identified material ESG areas to focus on, and has begun instilling a culture of sustainability within the Company, which would lay the foundation for the Company’s plans and efforts to identify, measure, and mitigate ESG risks and challenges, while leveraging opportunities for business growth.

Looking to the future

Behind the achievements of solutions by stc is a talented workforce that must be credited for their values and dedication to success. In alignment with the Company’s mission, the leadership team continued efforts to improve and enhance corporate culture. A well-defined engagement transformation strategy focused on boosting employee morale, satisfaction, and performance was successfully implemented across the organization.

A dynamic leadership team

The experience, knowledge, and agility of our Board of Directors and senior leadership team have guided the Company to deliver yet another strong performance in 2022.

On behalf of the Board, I would like to extend my deep appreciation to the leadership team for a stellar performance, and thank the talented workforce who form the backbone of solutions by stc and without whom the success and growth of the Company would not be possible.

Finally, I would like to thank my colleagues on the Board for their visionary leadership and invaluable contribution. I am confident that with their continued guidance and support, we will be able to lead solutions by stc to achieve greater success in the future.

Our valued shareholders

On behalf of the Board, I would like to take this opportunity to thank our valued shareholders for their role in the success of solutions by stc. We are committed to continuous growth and strengthening our position as the market leader you have come to trust, and to build on our successes in the years to come.

Riyadh Muawad
Chairman of the Board